Finance director warns La Crosse faces rising debt-service needs, urges restraint in 2026 budget

Director of Finance Chad Hawkins told the La Crosse Common Council planning-session meeting that the city is facing sustained budget pressure from rising operating costs, increased borrowing and limits set by the state’s expenditure restraint program.

Hawkins summarized the city’s budget cadence and constraints and urged council members to treat municipal finances conservatively. “I look at the city budget like I do any other budget, my own personal budget, I treat this very similar,” Hawkins said, describing a nine-month capital improvement planning (CIP) process that overlaps a five- to six-month operating-budget process.

Why it matters: Hawkins said the city has begun to rely more on the debt-service portion of the property tax levy to cover borrowing, a trend that began in recent years and has increased the adjustment amount the city is allowed to levy for debt. He warned that continued expense growth could erode the city’s ability to receive state shared revenue tied to the Expenditure Restraint Program (ERP).

Hawkins told council members the ERP uses a state-set…