Milwaukee clears 2-cent sales tax hike in bid to avoid bankruptcy

Milwaukee's Common Council voted Tuesday in favor of a two-cent sales tax increase, part of a bipartisan effort to spare the city from potential bankruptcy.

"The wolf is at the door," Milwaukee Alderman Robert Bauman argued in support of the sales tax. "You can’t chase the wolf away anymore, and we are dealing with some serious challenges that have to be addressed."

Milwaukee is struggling with an underfunded pension system and not enough money to maintain essential police, fire and emergency services. Milwaukee has increasingly become reliant on federal pandemic aid to fund its essential services, which city leaders have said cost $150 million more per year to maintain.