Milwaukee County transit officials outline $9.2 million 2025 shortfall; public, unions press for fixes on contractor performance, paratransit and fare evasion

Milwaukee County Transit System (MCTS) officials told the Committee on Transportation and Transit that the agency now projects a $9.2 million deficit for 2025 after a set of corrective actions, down from an earlier $10.9 million estimate, and described steps they are taking to reduce costs and raise fare compliance.

Sandy Kellner, chief administrative officer for MCTS, said the updated projection (through June 30, 2025) reflects continuing cost pressures: a $5.9 million overrun in salary and fringe costs largely driven by higher health-care costs, a $3.3 million projected overage in paratransit services, and a $1.6 million shortfall in fare revenue. Kellner said measures that lowered the gap included $2.6 million in cuts from reduced professional services, diesel savings, and other operating economies; reduced overtime except in emergencies; process improvements; and negotiation efforts with vendors.

New MCTS President and CEO Steve Fuentes, who began in the role in late June, said the agency will use federal pandemic funds to cover all deficits in 2025 and intends to request a fund transfer at year-end when numbers are finalized. Fuentes emphasized safety and said he will not…