Milwaukee County Executive David Crowley's budget turns the page from cuts into investments
Moving past a time that marked major financial cuts and alarm bells over fiscal cliffs, Milwaukee County's 2024 budget season is all about investments.
In a turn of events following the approval of the 0.4% sales tax increase, Milwaukee County Executive David Crowley announced his $1.36 billion recommended budget on Thursday that would see a roughly $24 million decrease in the property tax levy to almost $289 million. The levy — the total amount collected in property taxes — would decrease about 8% below the 2023 level.
Per the county's July five-year fiscal forecast, the revised surplus projection at the time the 0.4% sales tax was approved was $31.6 million for 2024. For 2025, the surplus would drop to $2.68 million, and then between 2026 and 2028 switch to a structural deficit, reaching $36.2 million in 2028.
"Milwaukee County finds itself in a vastly improved budgetary environment than in the past years," Crowley told the Milwaukee County Board of Supervisors. "With this surplus in mind, rather than determining what potential cuts would have been the least harmful, Milwaukee County now has the opportunity to deploy the most beneficial investments for our residents."
"While this budget is historic, it does not mean that we can now ignore our fiscal reality. I am not naive. I know we must remain cautiously optimistic," he said.
Now, with more fiscal breathing room, Crowley's goal is to tackle the county's capital improvement backlog, as well as investing in criminal justice initiatives, affordable housing, and maintaining transit services.
Last year, the county adopted a $1.37 billion budget for the 2023 budget cycle. Milwaukee County Board of Supervisor discussions and public hearings warned of major budget cuts to parks and transit, including its paratransit taxi service. Despite approval to extend funding for the taxi contract, the service was not included in the 2024 budget and ended on Sept. 28.
For Rob Henken, president of the nonpartisan Wisconsin Policy Forum, who has been analyzing the county budget since 1998, the turn of events is good news.
"It is just a remarkable and almost unfathomable turn of events to see Milwaukee County with a large budget surplus, to be able to strategically invest in 2024," Henken said. "I started analyzing county budgets back in 1998 and I can assure you this is the first time that there has been an opportunity for sizable new investment."
Property tax reduction
The property tax has been reduced by $24 million. This was due to the use of sales tax instead of property tax to pay for the county's pension obligation bond and the use of reserves to pay off existing debt.
The median homeowner with a $172,000 home in the county would see a $101 reduction in their property tax bill for the county.
"At a time when inflation is top-of-mind for residents and families, this reduction is a much-needed step in the right direction and will provide relief to folks throughout the community," Crowley said.
Investments in countywide services
The transit tax levy would see an increase of $16 million. The tax levy would sustain current MCTS routes and prevent the department from hitting a fiscal cliff in 2025, as well as defer the use of the final lump of $13 million of federal relief funds until 2026, instead of 2024. Following major concerns about the safety of riders and bus operators, the proposed budget has a $1.3 million increase to enhance security on transit.
The County Executive has proposed an additional allocation of $4 million in tax levy to support more affordable housing project options. About $12 million in American Rescue Plan Act (ARPA) dollars will be fully allocated toward affordable housing, including 274 units across seven housing developments.
In an effort to invest in resources for Milwaukee County's unsheltered populations, Crowley proposed investing in the county's homeless outreach team and Housing First model with an additional $1.5 million.
The budget has also allocated $200,000 for housing vouchers for individuals released from the Community Reintegration Center — formerly known as the House of Correction.
This year's budget also proposed the removal of phone charge commission revenue of $1.9 million from the Community Reintegration Center and the Milwaukee County Jail budget. Families have raised alarm bells about paying $5.1 million per year for calls with loved ones in the Milwaukee County Jail. This budgetary shift will provide 360 free minutes per month for phone calls — an increase from the currently allotted 120 minutes — and 60 free video visitation minutes per month.
The parks department operating budget will increase by $2.6 million. This budget year will aim to add 18 full-time employees to the department, as well as funding for seasonal staff.
The proposed budget will increase pre-trial mental health services by $1.6 million. There will be service expansions to the Mental Health Treatment Court, the Veteran's Treatment Court and the GPS service.
A proposed $170,000 would be allocated for aging populations, including caregiver services, transportation and senior center programming.
The fiscal impact of 0.4% sales tax approval
The monumental decision to pass the sales tax legislation is estimated to generate roughly $84 million in new sales tax revenue in 2024. The same state legislation that enabled Milwaukee County to increase its sales tax also produced an increase in shared revenue from the state, amounting to a $7.6 million bump in 2024.
This revenue can only be used for the Milwaukee County Employee Retirement System's unfunded pension liability and Pension Obligation Bonds and ultimately freed up property tax levy dollars to be used toward other countywide purposes, such as housing, parks and transportation.
Crowley, however, delivered a sobering conclusion: "This is not a cure-all for our financial challenges. We must continue to find fiscally responsible, thoughtful, and innovative solutions to maintain this trajectory and work toward our shared vision for Milwaukee County."
Addressing the capital budget backlog
The cCapital budget now includes $124 million total funding – $47 million of that is bonding, $31 million is cash financing and $46 million from state, federal and other sources.
While this is likely to be a one-time or limited-term increase, in addition to the surplus, the county is now able to address such backlogged capital needs as a bus replacement program, the Milwaukee County Zoo’s Adventure Africa rhino exhibit, the South Shore breakwater, the new County Criminal Courthouse, the modernization of the Oak Leaf Trail and the McKinley Park Flushing Channel.
Will the Brewers factor into the budget?
The short answer: to be determined.
To date, no final decision has been made about the future funding of the Milwaukee Brewers stadium, American Family Field.
Rep. Rob Brooks, an Ozaukee County Republican who co-authored the Republicans' $700 million stadium funding bill, told WISN's UpFront he met with Milwaukee officials and expects that the city and county buy-in would drop from $7.5 million annually to $5 million.
Will vehicle registration fees increase?
No, they will remain at the annual flat fee of $30 for vehicles registered in Milwaukee County.
What's the status of the county's federal dollars?
Crowley's proposed budget does not include ARPA funding recommendations.
ARPA funds have been fully allocated as of the September budget cycle, but there is still the option to reallocate federal funds in 2023 and 2024 prior to a deadline for their use.
What's next?
The County Board of Supervisor's finance committee will begin discussions about the recommended budget on Oct. 10.
The Committee on Finance will host a public hearing at 4 p.m. Oct. 16 at which residents can provide comments regarding the 2024 budget.
The County Board will also hold its annual public hearing, which will take place at 6 p.m. Oct. 30. The location has yet to be determined.
Contact Vanessa Swales at 414-308-5881 or vswales@gannett.com. Follow her on Twitter @Vanessa_Swales.
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This article originally appeared on Milwaukee Journal Sentinel: County Exec Crowley's budget turns the page from cuts into investments
