Milwaukee County transit officials outline $10.9 million 2025 shortfall, propose frequency cuts and other measures

Milwaukee — Milwaukee County Transit System (MCTS) officials on Tuesday told the County Board Transportation and Transit Committee they are projecting roughly a $10.9 million operating shortfall for 2025 and described a mix of near-term steps and longer-term reforms to limit the damage.

The shortfall is driven primarily by higher-than-expected people costs — especially overtime and benefits — along with weaker passenger revenue and higher vehicle parts and contract costs, MCTS interim president and chief administrative officer Sandy Kellner and CFO Alexander Corona told the committee.

Kellner opened the presentation with an apology for how service-change information was communicated to the public and board. “It is our goal to share information as soon as possible. And in this instance, we did not meet our own standards,” she said.

Why it matters: the deficit has immediate operational consequences. Transit leaders said they will use a portion of remaining federal COVID-relief funds to cover part of the 2025 overrun while also trimming weekday midday and some weekend frequencies on high‑frequency routes and pursuing cost reductions. Several supervisors expressed frustration that the board and public learned of the shortfall via press reports before receiving complete internal notice.

What officials told the committee - Magnitude and drivers: Corona said MCTS is trending about 6% over budget for 2025. He identified two principal categories: people costs (wages, overtime and benefits) and paratransit/contractor costs. He said…