City officials in Milwaukee are weighing significant budgetary decisions that could impact both public transportation and local vehicle fees. On October 8, 2023, Alderman Scott Spiker proposed eliminating the city’s streetcar system as a cost-saving alternative to a planned increase in the wheel tax, sparking debate within the Milwaukee Finance and Personnel Committee and prompting the scheduling of public input sessions.

The city’s budget discussions come amid efforts to close funding gaps without placing additional financial strain on residents. The wheel tax—an annual fee levied on vehicle registrations—has steadily increased over the years, from $20 in 2008 to $30 by 2021. A further hike to $40 has been proposed for 2026, projected to generate approximately $2.75 million in revenue. However, Spiker has suggested that cutting the streetcar program could save the city nearly $7 million annually, more than double the expected revenue from the wheel tax increase.

The streetcar, known as The Hop, has been a point of contention in recent years. Its operating budget is projected to reach $6.94 million in 2026, up from $5.72 million in 2025. Despite a projected revenue of $1.7 million in 2026 and a higher $4.5 million in 2024, the system operates at a significant deficit, raising concerns among some city leaders about its sustainability.

During the committee meeting, members opted to delay a decision on the wheel tax increase to allow the budget process to unfold in its usual course. This move gives time for further analysis and public feedback before any final decisions are made. Mayor Cavalier Johnson and the Department of Public Works are also involved in the ongoing deliberations.

To ensure community voices are heard, public sessions have been scheduled to gather resident input on the proposed changes. These meetings will offer an opportunity for citizens to discuss the potential elimination of the streetcar, the proposed wheel tax increase, and other budget priorities.

As of now, no final decisions have been made. The Finance and Personnel Committee, along with other city officials, will continue to evaluate the options in the coming weeks, with public feedback playing a crucial role in shaping Milwaukee’s fiscal path forward.