Iranians and how we are separating ourselves from
IRGC. >> 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
going to be nearly $90 million projected for 2027.
So without that money, that that $50 million shortfall
is even larger. But at the same time, that deal also
imposed new costs on the county to, you know, shift
to the state pension system, which is a good long term
fix but is challenging in the short term. And then
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%
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 than other parts of government. So that's a
challenge. It has a county courthouse that it needs to
replace. That's nearly a half $1 billion project.
And then you talk about its parks, something like that
amount in deferred maintenance to its parks
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 20
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 going to have to look
across their, their system to try and find some
savings. And then at the same time, they're probably
going to have to find revenues, whether that's
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 of. 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 you'll 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 in some of these capital challenges have
built up over a period of time. That goes back to the
2000, 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
will ask for, you know, elected officials to ask
for 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 to
a doctor's appointment, to get to the grocery store.
And so the impact is magnified, I think, over