Consumer Price Index (CPI-U) Certification

September 24, 2025

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 2.7% for the 12 months ending August 31, 2025. Note: This percentage was rounded to the nearest 0.1%.

Expenditure Restraint Incentive Program (ERIP)

Under state law, DOR uses this 2.7% CPI-U (inflation factor) for ERIP to determine the allowable general fund budget percentage increase for qualifying municipalities from 2025 to 2026 (sec. 79.05(1)(am), Wis. Stats.).

To qualify for a 2027 ERIP payment, your:
  • 2025 municipal TID Out property tax rate must exceed five mills
  • Net general fund budget increase from 2025 to 2026 must be less than the sum of the 2.7% CPI-U increase, plus 60.0% of your net new construction percentage during 2024 (up to a maximum 2.0%)

Note: By October 1, 2025, DOR will send ERIP budget limit letters providing allowable budget percent increases to municipalities with a 2024 mill rate that exceeds five mills.

Levy Limits

Under state law, the 2.7% 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 apply:
  • Your municipality is a member of a joint fire department or joint EMS district as defined in secs. 66.0602(1)(ak), 66.0602(1)(am), Wis. Stats.
  • Increase in assessed charges would result in your municipality exceeding its levy limit
  • Joint fire department or joint EMS district's total charges assessed (imposed on all members) for the current year (2026 budget year) compared to the prior year (2025 budget year), increased less than or equal to the CPI-U increase of 2.7% plus 2.0% (total of 4.7%)
  • Each municipality that is part of the joint fire department or joint EMS district must adopt a resolution supporting the increase

Example: The joint fire department's 2025 total assessed charges were $50,000 and the joint fire department's 2026 total assessed charges are $60,000, which is an increase of $10,000 or 20.0%. In this example, no municipality qualifies for the levy limit adjustment since the increase cannot be more than CPI plus 2% (for 2025 levies the maximum increase is 4.7%).

Questions?

Contact us at lgs@wisconsin.gov.