A new report from the Wisconsin Policy Forum highlights the financial strain on local governments due to rising recycling costs and stagnant state aid.
Between 2013 and 2021, operational costs for municipal recycling services increased by about 0.6% annually, while state funding remained flat, with state recycling grants stuck at roughly $19-20 million per year since 2011.
This reduction in aid, which once covered a third of local recycling costs, now only covers about 15.7%, forcing local governments to rely more on local fees and property taxes.
The report also notes a decline in the tonnage of recyclable materials collected, down 2% from 2013 to 2022, due to a combination of reduced recycling volumes and market volatility.
In particular, prices for recyclable materials fell sharply, especially between 2017 and 2019, when global policy shifts, such as China’s ban on importing certain recyclables, contributed to the drop.
Despite challenges, some areas have seen growth in recycling materials like cardboard, spurred by the rise in online shopping during the pandemic. However, materials like aluminum containers and office paper saw declines.
The report suggests that if the state wants to keep recycling rates high and reduce landfill waste, it needs to increase state funding for recycling programs.