County budget may tap reserves again Dane County budget plan would reduce health insurance costs, cut jobs

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Dane County hasn't fully solved its budget concerns, with the county executive recommending a plan for next year that would again dip into the county's coffers to balance the budget.

County Executive Melissa Agard, in her second year leading the county, introduced her budget plan at an Oct. 1 press conference surrounded by local leaders at the downtown City-County Building. The plan would use more than $23 million in rainy day funds to make ends meet.

"(It's) no secret. This continues to be a challenging time for local governments to be able to budget, but this budget shows real progress. It is a movement forward from where we were last year," Agard said.

Voters elected Agard two years ago to finish out the term of former County Executive Joe Parisi, who retired with a few months left in his term. The 2025 budget had already been signed prior to her election, and that budget relied on reserves for funding more than the county had in over a decade.

"We need to get that in alignment with how our everyday spending is being managed," Agard said. "Less reliance on surplus is really a measure of where we are at in terms of addressing our structural deficit."

When Agard took office, she inherited a projected $32 million deficit for 2026. To balance this year's budget, Agard cut 31 vacant positions and reduced spending on wages and purchase of service contracts by 1%. Still, the county tapped more than $27 million in reserves.

For years, county leaders have authorized budgets where spending outpaced anticipated revenues, looking to reserves, or rainy day funds, to balance the books. The county's chief financial officer estimated last spring the county would yet again face a more than $30 million deficit for 2027.

A better-than-expected 2025 budget decreased that projected gap in half to about $15 million, and Agard issued budget guidelines for county agencies in May including no additional positions and for departments to find long-term budget efficiencies. She said her administration took a "much more strategic approach" to reductions in next year's budget, factoring in different departmental roles and sizes rather than requiring an across-the-board reduction.

The county's nearly $1 billion annual budget funds the Sheriff's Office, county prosecutors and courts, housing and economic support programs, parks and conservation, the Henry Vilas Zoo, and many other community services among its more than 30 departments. Agard's combined operating and capital budget proposal for next year is larger than what county leaders approved last year, by about $30 million, though the plan relies less on surplus.

Agard's proposal for next year would cut $10 million in spending while removing the 1% reduction in wages for county employees. Agard didn't specify Oct. 1 exactly how the plan would cut the $10 million. The budget would keep filled county positions but cut 34 vacant roles, mostly from public safety departments.

Salaries and benefits are a key driver of the county's spending with more than 2,800 employees. Healthcare costs have skyrocketed in recent years as the county has maintained premium free options for employee healthcare.

Agard asked the county's employee insurance committee to identify $5 million in health insurance savings to help shore up the projected $15 million gap. The group proposed plan changes that are projected to save $1.3 million and an additional $3.7 million in savings by moving to a more restrictive network of preferred providers and paying employees to voluntarily leave the county's plan.

Agard proposed decreasing the net property tax rate for the county by five cents to $2.43 per $1,000 of equalized property value. Despite the rate drop, the county would increase property taxes under Agard's plan by about 2%, or roughly $21 on the average Madison home.

Other measures in the budget would provide:

$3 million for body-worn cameras in the Dane County Sheriff's Office$17 million for road and bridge construction projects$20 million for the Affordable Housing Development Fund$2.1 million for the Salvation Army's women and family shelter

The introduction of Agard's budget proposal launches a weeks-long process of budget hearings and debate at the County Board. The board may amend Agard's plan before approval later this fall. Agard may then sign or veto the budget.

Danielle DuClos is the investigative reporter for the Cap Times. Danielle focuses on holding government and private-sector officials accountable to the public, with a focus on officials in the Madison region. Email story ideas and tips to dduclos@captimes.com or call (608) 886-9166. Please consider supporting Danielle's work by becoming a Cap Times member or sponsor. Sustaining local journalism in Madison depends on readers like you.

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