Consumer Price Index (CPI-U) Certification

September 24, 2024

To: Municipal Clerks and Treasurers
County Clerks and Treasurers

The Wisconsin Department of Revenue (DOR), State and Local Finance Division would like to inform you that the Consumer Price Index for all urban consumers (CPI-U) was certified at 3.2% for the 12 months ending August 31, 2024. Note: This percentage was rounded to the nearest 0.1%.

Expenditure Restraint Incentive Program (ERIP)

Under state law, DOR uses this 3.2% CPI-U (inflation factor) in ERIP to determine the allowable general fund budget percentage increase for qualifying municipalities from 2024 to 2025 (sec. 79.05(1)(am), Wis. Stats.).

To qualify for a 2026 ERIP payment, your:
  • 2024 municipal TID Out property tax rate must exceed five mills
  • Net general fund budget increase from 2024 to 2025 must be less than the sum of the 3.2% CPI-U increase, plus 60.0% of your net new construction percentage during 2023 (up to a maximum 2.0%)
Note: By October 1, 2024, DOR will send ERIP budget limit letters providing allowable budget percent increases to municipalities with a 2024 mill rate that exceed five mills

Levy Limits

Under state law, the 3.2% inflation factor is also used for the levy limit increase available for an increase in charges assessed by a joint fire department or joint emergency medical service (EMS) district (sec. 66.0602(3)(h), Wis. Stats.).

Enter an adjustment in Sec. D, Line I of the Levy Limit Worksheet if all the following applies:
  • Your municipality is a member of a joint fire department or joint EMS district as defined in sec. 66.0602(1), Wis. Stats.
  • The increase in assessed charges would result in your municipality exceeding its levy limit
  • The joint fire department or joint EMS district's total charges assessed (imposed on all members) for the current year (2025 budget year) compared to the prior year (2024 budget year), increased less than or equal to the CPI-U increase of 3.2% plus 2.0% (total of 5.2%)
  • Your municipality is covered by the joint fire department or joint EMS district and adopted a resolution supporting the increase
Example: Your municipality's 2024 total assessed charges were $50,000 and the joint fire department's 2025 total assessed charges are $60,000, which is an increase of $10,000 or 20.0%. In this example, the municipality does not qualify for the levy limit adjustment since the increase cannot be more than 5.2%.

Questions?

Contact us at lgs@wisconsin.gov.​