Milwaukee County forges solution to $19M budget gap without service cuts, tax increase
In a sharp turnaround from a projected $19 million financial hole, Milwaukee County officials say they have landed on a budget solution that avoids cuts to services or tax increases.
Last month, County Board supervisors warned of the difficult decisions ahead of the 2025 budget cycle and the need to tighten their belts under a potential multimillion-dollar deficit fueled by the disappointingly low sales tax collections and the Milwaukee County Sheriff’s projected overall deficit of $7.06M and overtime deficit of $7.6 million.
Since then, the county's Office of Strategy, Budget and Performance and County Executive David Crowley worked with departments to identify funding sources and departmental surpluses to reallocate funds. The county would also use federal American Rescue Plan Act pandemic relief dollars and, if necessary, debt service reserves to plug the gap.
“I remain committed to deploying fiscally responsible solutions to balance our budget and work toward our shared vision,” County Executive David Crowley said in a statement. “But we have more work to do to prevent future fiscal cliffs, increase recruitment and retention to avoid overtime costs, and obtain additional financial support for required state-mandated services.”
The proposal included $300,000 to support a study of the Sheriff's Office operations by an external consultant to evaluate staffing and overtime needs.
The county's finance committee voted Thursday to recommend Crowley’s proposal to close the 2024 budget deficit without any extra cost to taxpayers and little impact on county-run services. The projected deficits had come despite approval from state lawmakers last year to more than double the county's sales tax rate to 0.9% and increased shared revenue back to the county from state coffers.
"What a turnaround — a $20 million turnaround," said Supervisor Shawn Rolland. "We were facing a huge deficit, and if passed, we will be having a $7 to $8 million surplus projection. That's amazing news."
The sudden improvement comes less than a month after the Milwaukee County Transit System recommended pausing a new bus rapid transit line, CONNECT 2, over concerns about the county's looming budget crunch. The $148 million project has been shelved, freeing up funds that will help the agency sustain operations until 2028.
“MCTS is very familiar with fiscal cliffs," MCTS managing director Denise Wandke told supervisors earlier this month. "We are trying to do what we believe is fiscally responsible — to make sure that the system stays on a whole as it is currently."
Earlier this week, the county also said it received money from the Biden-Harris administration to bolster some of the transit agency's needs. The $29 million in federal funding was allocated to road improvements and purchasing 13 new buses.
The full County Board will vote on the budget proposal later this month.
Contact Vanessa Swales at 414-308-5881 or at vswales@gannett.com. Follow her on X @Vanessa_Swales.
This article originally appeared on Milwaukee Journal Sentinel: Milwaukee County forges solution to $19 million budget gap
