Milwaukee County budget deficit projected; $168 million by 2031

Milwaukee County budget deficit projected

Milwaukee County could face a $168 million budget deficit, according to the county comptroller's new five-year forecast. The comptroller's new five-year forecast estimates a budget deficit averaging $33 million a year. The latest report says that could accumulate to a $168 million deficit by 2031.

MILWAUKEE - Milwaukee County could face a $168 million budget deficit, according to the county comptroller's new five-year forecast. 

Budget deficit forecasted for Milwaukee County

What they're saying:

The comptroller's new five-year forecast estimates a budget deficit averaging $33 million a year. The latest report says that could accumulate to a $168 million deficit by 2031. 

"It can be hard to look at, right? When you know what kind of services and functions the county provides in the area and for the state. But, it’s not all that surprising because I feel like these kind of numbers have been predicted for years," said Liz Sumner, Milwaukee County Comptroller. "We could hope that our predictions will be off in some areas. Is it possible that our fringe benefit costs could come in lower than what we are predicting? Potentially. Or could sales tax numbers come in higher than what they are now? That’s also a possibility."

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What has changed?

What we know:

The reason for the warning – federal pandemic funds have dried up, overtime is up, and Milwaukee County wages have jumped 34% in recent years, the report says. 

"We’re needing to increase raises in order to stay competitive with the private sector.  In addition, industry across the board are seeing increases in healthcare. I mean costs are just skyrocketing," Sumner told FOX6 News.

Liz Sumner, Milwaukee County Comptroller

Wisconsin allowed Milwaukee County to charge more than other counties in sales tax. The new 0.4% hike started in 2024, and the money is slated to repair the pension fund. The normal 0.5% sales tax can go to other needs. 

"Are we talking about major staffing cuts potentially here?" asked FOX6's Jason Calvi.

"I mean it could be, at least something like a hiring freeze, right? So, not bringing any new people on and when people leave, not replacing them," Sumner answered. 

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Budget plan introduced in September

What's next:

Milwaukee County Executive David Crowley said every year he has been the executive, the county ended the year with a surplus. He will introduce the budget for 2027 in September.