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City shifts MADCAP assistance from utility rates to general fund after PSC ruling
Summary
Following a Public Service Commission decision, the Finance Committee approved a budget amendment March 2 to appropriate $70,000 from the general fund for MADCAP utility assistance for the remainder of 2026 and staff proposed program simplifications aimed at increasing enrollment; staff said about 450 households currently receive MADCAP benefits.
The City of Madison Finance Committee voted unanimously March 2 to amend the 2026 budget and appropriate $70,000 from the general fund contingent reserve to cover the water, stormwater and sewer portions of the municipal customer assistance program known as MADCAP after a Public Service Commission decision that staff said prevents continuing those costs on utility sources.
Deputy Mayor BL told the committee the PSC decision means the city can no longer fund those portions of MADCAP with utility funds and a funding change is required to keep the program operating. "A recent decision from the public service commission has essentially said we can no longer fund those with utility funds," Deputy Mayor BL said.
Staff described MADCAP as a municipal customer assistance program that provides up to $30 a month in rebates on utility bills for low‑income customers; Krishna Kamar said there are about "around 450 households on the program at the moment." Deputy Mayor BL and staff estimated the city will need roughly $70,000 to cover the remainder of 2026 and approximately $188,000 in new general‑fund support annually going forward, while noting some of last year's budgeted funds were not fully spent.
To simplify enrollment and administration, staff proposed several rule changes: adopt one standard rebate level rather than two tiers, remove a requirement that applicants sign up for certain conservation programs before enrollment, and accept program‑eligibility proxies such as participation in WIC, Section 8 or food assistance as proof of income. Staff said those changes could increase enrollment and reduce staff time spent verifying eligibility.
The committee recorded a unanimous vote to approve the budget amendment and directed staff to proceed with communications and outreach for the revised program rules.
