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The economic engine of the state

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is looking at a whopping county

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government budget shortfall.

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Milwaukee county leaders project a

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$50 million deficit next

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year and a nearly $170

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million shortfall in five

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years. That's if measures

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to cut costs aren't taken.

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What is happening?

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We turn to Jason Stein, President

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of the Wisconsin Policy Forum.

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And thanks for being here. My

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pleasure. Thank you.

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So what is happening?

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I thought that the shared rev deal

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and New County sales tax was

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supposed to make things okay.

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Right, so you're referring to a 2023

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law that provided both

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new sales tax authority to

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the county, as well as additional

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state aid.

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And those were helpful.

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I mean, the sales tax revenue is

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gonna be nearly $90 million

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projected for 2027.

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So without that money, that

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$50 million shortfall is even

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larger. But at the same time,

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that deal also imposed new

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costs on the county to

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shift to the state pension system,

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which is a good long-term.

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Fixed but is challenging in

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the short term and then

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you know additional law enforcement

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costs and other costs.

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So it was very

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helpful but it didn't

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change the fact that the county has

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a structural imbalance between

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how fast its revenues are growing

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and how fast its expenses

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are growing.

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And you see that showing up in this

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this budget shortfall.

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So I understand that 75 percent

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of the county's budget is mandated

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state services, some of which you

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just spoke to, including

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court operation and highway patrols.

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So what goes, the

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quality of life things like parks

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and pools?

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Absolutely.

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And, you know, there are a number of

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also discretionary

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challenges that the county has.

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The county also has its transit

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program, which is facing a

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big challenge in 2027 because

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it's finally exhausted

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the federal pandemic aid,

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which stuck around a little bit

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longer for transit operations in

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other parts of government.

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So that's a challenge.

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It has a county courthouse

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that it needs to replace, that's.

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Nearly a half a billion

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dollar project and then you

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talk about its parks something like

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that amount in deferred maintenance

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to its park system so it has a lot

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of generational challenges that

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are still pressing it pretty

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strongly.

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So how does the county stave

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off these deficits?

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I mean I think when you have a

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challenge of this size you're going

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to have to look on the cost side and

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the revenue side.

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So, I mean, the challenge on the

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cost side is that the county has

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really had twenty years now

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of making, you know,

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cuts and trims and other things,

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but you know they're going to have

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to look in transit, they're gonna

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have to look across their system

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to try and find some savings, and

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then at the same time they're

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probably gonna have find revenues,

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whether that's from the state,

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whether it's from increasing their

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vehicle registration fee, whatever

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it happens to be that they can do,

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because there aren't a lot of levers

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they can pull. Should or could

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the state do more?

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I mean, the state in the current

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budget, it should be said, did a

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lot for the county in that

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the state put forward

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funds for patrolling the

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highways in Milwaukee County.

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So that was a big financial help.

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Governor Evers, with one of his

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partial vetoes, also

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lowered the cost

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to counties of

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housing juvenile offenders

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in a state prison for youth,

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Which that helped Milwaukee

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County more than any other county.

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So there was assistance there,

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but you'll certainly hear

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elected officials from the county

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going to the state again over

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the next year.

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How vexing is this perennial

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problem, especially for the county

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executive now running for

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governor?

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I mean, it's, every county

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executive faces this.

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I mean another county executive who

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became governor, Scott Walker, you

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know, faced the same shortfalls

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and some of these capital challenges

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have built up over a period

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of time that goes back to the 2000s

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when Walker was Milwaukee County

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executive.

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So it's certainly a challenge.

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I think one of the things that I'm

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sure the county executive will

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ask for, you know,

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elected officials will ask or is.

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Freedom from the state limits

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on county property taxes.

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So more flexibility to

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raise local revenues to

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deal with these problems.

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But of course, the state has been

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reluctant to give that flexibility.

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So I trust that Milwaukee County is

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not the only county that is facing

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these kinds of budget crunches.

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No, that's certainly the case.

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I think it is worth noting though

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that Milwaukee County, particularly

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in the city of Milwaukee, has some

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of the poorest residents.

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So any county or any

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city that has a transit system, for

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example, is facing

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that same problem with the loss of

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federal revenue, ridership

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and ridership revenue being down

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and the cost being up.

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But in Milwaukee County it has a

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particular pinch and resonance

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because you really have people that

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are relying.

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On that transit system, low-income

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people, to get to a job, to

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get a doctor's appointment, to get

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the grocery store.

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And so the impact

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is magnified, I think, over many

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places in Wisconsin.

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All right, Jason Stein, thank you

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very much.

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My pleasure, thank you.