Milwaukee County seeks approval to allocate $19.9M federal funds to debt service reserve

Milwaukee County's Committee on Transportation and Transit convened on September 3, 2025, to address significant financial matters impacting the county's transit system. A key discussion centered around the authorization to recognize nearly $20 million in federal transportation revenues that were delayed in 2024 but finally received in 2025. This funding, totaling $19,882,876, is intended to be deposited into the debt service reserve, reflecting a technical adjustment rather than a new influx of funds.

Director Joe Lamers explained that the delay in reimbursement from the federal government was due to administrative turnover and typical processing delays, which ultimately affected Milwaukee County's budget surplus for 2024. The county had to cover the transit deficit from its overall budget, which reduced the surplus and consequently the funds available for the debt service reserve. While the revenue has now been received, it cannot be retroactively applied to the previous fiscal year.

The committee also discussed the ongoing financial challenges facing the Milwaukee County Transit System (MCTS). Interim Director Sandy Kellner and new CEO Steve Fuentes reported a projected deficit of $9.2 million for 2025, down from an earlier estimate of $10.9 million. This improvement is attributed to cost-saving measures, including reductions in professional services and operational efficiencies. However, rising costs in salaries and healthcare, along with lower-than-expected fare revenues, continue to strain the budget.

The committee's discussions highlighted the importance of these financial adjustments and the ongoing efforts to stabilize transit funding, which directly affects the community's access to reliable transportation. As Milwaukee County navigates these fiscal challenges, the focus remains on ensuring that transit services can continue to meet the needs of residents while managing budget constraints effectively.