La Crosse officials say $1M–$1.2M in cuts likely needed to preserve expenditure restraint payment

Director Hawkins, the city finance director, told the City of La Crosse Budget and Parameter Committee on June 24 that preliminary 2026 figures show roughly $3,200,000 in increased expenses and warned that keeping the city eligible for the state Expenditure Restraint Program (ERP) payment for 2027 will likely require about $1,000,000 to $1,200,000 in reductions this year. "If we are looking to keep our expenditure restraint payment in 2027, we would need to look at roughly $1,000,000 to $1,200,000 of reductions off of this this year," Hawkins said.

Why it matters: the ERP payment has been a recurring revenue source for La Crosse; losing it would add immediate pressure to the operating budget and require either deeper service or staffing cuts or identification of new revenue. Hawkins said one-time federal pandemic-era funds are gone and shared revenue increases are minimal, limiting near-term offsets.

Hawkins presented a set of preliminary estimates and asked the committee to give parameters for staff, the mayor and…