County executive presents $46 million shortfall in 2026 recommended budget; seeks mix of revenue, cuts and targeted investments

County Executive Crowley presented Milwaukee County’s recommended 2026 budget on Sept. 30, saying the plan addresses a projected $46,000,000 shortfall with “a mix of new revenues, cost savings, and careful spending choices.”

Crowley told the Milwaukee County Board of Supervisors that long-running structural deficits, declining revenues and deferred maintenance drove the county’s fiscal problems when he took office in 2020, and he credited state reforms for improving the county’s outlook. “Thanks to those reforms, Milwaukee County is expected to generate a total of approximately $192,000,000 in sales tax revenue in 2026,” he said.

The budget document identifies a roughly $46 million gap for 2026, the county executive said, and proposes measures including approximately a $12,000,000 increase in the property tax levy offset in part by state aid and prior tax cuts. Crowley said shared-revenue changes under Wisconsin Act 12 reduced what the county’s levy would otherwise have been by about $25,000,000.

Why it matters: the recommended budget would start debt-service payments for several recent capital projects, including the forensic science and protective medicine facility in Wauwatosa and the under-construction Nature and Culture Museum of Wisconsin, increasing near-term levy pressure. Crowley urged the Board to authorize capital investment now to avoid greater costs later.

Key spending priorities and savings cited in the presentation include: - Public safety and courthouse investment: Crowley described a nearly $16,000,000 investment for redevelopment of county courthouse complex facilities and urged timely action to avoid escalating costs. He said the current public safety building “is crumbling” and represents a large share of the county’s deferred maintenance. - Housing and human services: The recommended budget increases funding for the Department of Health and Human Services, adds positions for child support, youth residential care and housing intervention, and increases support for the Housing Choice Voucher Program, which Crowley said provides rent support to more than 1,800 tenants annually. He proposed $500,000 for flexible rental assistance. - Transit: Crowley proposed directing $9,000,000 in transit-specific ARPA funds to the Milwaukee County Transit System (MCTS) for 2026, noting MCTS is projected to use about $20,000,000 of ARPA funds by year-end and that those funds will run out in 2027. He said MCTS will pursue “rightsizing” that could include route changes and fare adjustments. - Emergency management and parks: The Office of Emergency Management would be fully funded, Crowley said, citing the system’s recent role in rescuing three plane crash survivors via text-to-911. He also proposed more than $13,000,000 for 11 parks capital projects and cited the county’s ongoing Mitchell Park Domes funding and restoration commitments.

Crowley also warned of reduced federal funding in 2026, saying the county previously received about $160,000,000 annually in federal reimbursements and grants and that reductions will hit behavioral health, housing and Medicaid-accepting services. He said a change in state budgeting will save Milwaukee County more than $6,000,000 annually beginning in 2026 for youth corrections administration.

Process notes and next steps: Chairwoman Marcilia Nicholson said the Board would receive the recommended budget and refer it to the Finance Committee for review. Finance Chair Supervisor Willie Johnson Jr. outlined a timeline beginning Oct. 9 with presentations from the research division and comptroller and concluding Oct. 31 with committee recommendations to the full board. The Board will hold a public hearing on the county budget on Monday, Oct. 27 at the Mitchell Park Domes; doors open at 5 p.m., and supervisors convene at 6 p.m. to hear testimony.

What the county did not decide: Crowley’s presentation was an executive recommendation; the Board did not vote to adopt the 2026 budget at the Sept. 30 meeting. The Board will consider amendments and formal action after Finance Committee review and public hearings.

Quotes: Crowley summarized the fiscal challenge and set the administration’s priorities: “My 2026 recommended budget strives to foster a stronger Milwaukee County through fiscal sustainability.” He reiterated the shortfall: “The comptroller’s office reported that we are staring down a $46,000,000 budget deficit for 2026.” Finance Chair Willie Johnson Jr. provided timing for committee review: “This kicks off on October 9 … and it concludes on October 31 with the committee making their recommendations to this body.”

Background: Crowley cited Wisconsin Act 12 as a key change that improved county revenue sharing. He described a combination of higher debt service, declining federal funds, and rising costs for state-mandated services as principal drivers of the 2026 deficit.

Looking ahead: The county executive asked the Board to work collaboratively to approve investment in courthouse facilities, maintain core services and pursue funding partnerships with state and federal officials. The Board’s Finance Committee will review the recommended budget through October, followed by a full-board hearing and subsequent meetings to consider adoption.