The economic engine of the state
is looking at a whopping county
government budget shortfall.
Milwaukee county leaders project a
$50 million deficit next
year and a nearly $170
million shortfall in five
years. That's if measures
to cut costs aren't taken.
What is happening?
We turn to Jason Stein, President
of the Wisconsin Policy Forum.
And thanks for being here. My
pleasure. Thank you.
So what is happening?
I thought that the shared rev deal
and New County sales tax was
supposed to make things okay.
Right, so you're referring to a 2023
law that provided both
new sales tax authority to
the county, as well as additional
state aid.
And those were helpful.
I mean, the sales tax revenue is
gonna be nearly $90 million
projected for 2027.
So without that money, that
$50 million shortfall is even
larger. But at the same time,
that deal also imposed new
costs on the county to
shift to the state pension system,
which is a good long-term.
Fixed but is challenging in
the short term and then
you know additional law enforcement
costs and other costs.
So it was very
helpful but it didn't
change the fact that the county has
a structural imbalance between
how fast its revenues are growing
and how fast its expenses
are growing.
And you see that showing up in this
this budget shortfall.
So I understand that 75 percent
of the county's budget is mandated
state services, some of which you
just spoke to, including
court operation and highway patrols.
So what goes, the
quality of life things like parks
and pools?
Absolutely.
And, you know, there are a number of
also discretionary
challenges that the county has.
The county also has its transit
program, which is facing a
big challenge in 2027 because
it's finally exhausted
the federal pandemic aid,
which stuck around a little bit
longer for transit operations in
other parts of government.
So that's a challenge.
It has a county courthouse
that it needs to replace, that's.
Nearly a half a billion
dollar project and then you
talk about its parks something like
that amount in deferred maintenance
to its park system so it has a lot
of generational challenges that
are still pressing it pretty
strongly.
So how does the county stave
off these deficits?
I mean I think when you have a
challenge of this size you're going
to have to look on the cost side and
the revenue side.
So, I mean, the challenge on the
cost side is that the county has
really had twenty years now
of making, you know,
cuts and trims and other things,
but you know they're going to have
to look in transit, they're gonna
have to look across their system
to try and find some savings, and
then at the same time they're
probably gonna have find revenues,
whether that's from the state,
whether it's from increasing their
vehicle registration fee, whatever
it happens to be that they can do,
because there aren't a lot of levers
they can pull. Should or could
the state do more?
I mean, the state in the current
budget, it should be said, did a
lot for the county in that
the state put forward
funds for patrolling the
highways in Milwaukee County.
So that was a big financial help.
Governor Evers, with one of his
partial vetoes, also
lowered the cost
to counties of
housing juvenile offenders
in a state prison for youth,
Which that helped Milwaukee
County more than any other county.
So there was assistance there,
but you'll certainly hear
elected officials from the county
going to the state again over
the next year.
How vexing is this perennial
problem, especially for the county
executive now running for
governor?
I mean, it's, every county
executive faces this.
I mean another county executive who
became governor, Scott Walker, you
know, faced the same shortfalls
and some of these capital challenges
have built up over a period
of time that goes back to the 2000s
when Walker was Milwaukee County
executive.
So it's certainly a challenge.
I think one of the things that I'm
sure the county executive will
ask for, you know,
elected officials will ask or is.
Freedom from the state limits
on county property taxes.
So more flexibility to
raise local revenues to
deal with these problems.
But of course, the state has been
reluctant to give that flexibility.
So I trust that Milwaukee County is
not the only county that is facing
these kinds of budget crunches.
No, that's certainly the case.
I think it is worth noting though
that Milwaukee County, particularly
in the city of Milwaukee, has some
of the poorest residents.
So any county or any
city that has a transit system, for
example, is facing
that same problem with the loss of
federal revenue, ridership
and ridership revenue being down
and the cost being up.
But in Milwaukee County it has a
particular pinch and resonance
because you really have people that
are relying.
On that transit system, low-income
people, to get to a job, to
get a doctor's appointment, to get
the grocery store.
And so the impact
is magnified, I think, over many
places in Wisconsin.
All right, Jason Stein, thank you
very much.
My pleasure, thank you.