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Milwaukee County transit officials flag rising parts, overtime and paratransit costs; MCTS may cut service
Summary
CJ Paul, financial services director for the county comptroller, presented the fiscal report and MCTS leadership told supervisors rising commodity prices, mechanics’ overtime and increasing paratransit costs could combine to create a multi‑million-dollar shortfall that may require service reductions.
Milwaukee County officials told the Finance Committee on June 18 that Milwaukee County Transit System (MCTS) is facing cost pressures that could lead to service reductions unless the county and transit leadership can mitigate rising expenses.
Lede: CJ Paul, financial services director for the Office of the Comptroller, presented the county’s fiscal report through April 2025 and said the county overall remains close to break even; MCTS leadership then briefed supervisors on three operational cost drivers that could produce a multi‑million-dollar deficit for 2025.
Why it matters: MCTS provides daily public transportation for thousands of residents; sustained service reductions or route cuts would affect riders who depend on transit for work, medical appointments and other daily needs.
Details from MCTS leadership: MCTS Director Brown Martin told the committee the transit system is seeing three main cost pressures: (1) sharply rising prices for parts and commodities — which staff linked in part to tariffs and supply-cost fluctuations over the past several months; (2) higher overtime costs for mechanics and other staff, which Martin said are tied in part to contract bargaining and the seasonal timing of negotiating and staffing decisions; and (3) increasing costs for contracted paratransit service (Transdev), where MCTS leaders said performance problems have driven higher payments and additional legal and contract-management expenses. County staff cautioned that the total exposure was still being quantified and said the committee would receive a fuller report in the July cycle with sales tax data and investment-earnings projections.
Numbers discussed: At the meeting supervisors and staff referenced an estimate in recent public materials of roughly $10.9 million in potential MCTS deficit exposure; Martin and county staff said that figure remained unverified in committee and that a precise number would be in the next report.
Supervisors’ response: Several supervisors said they were disappointed that the board and relevant committees had not been told earlier, citing a county ordinance that requires notification for deficits above $100,000. Supervisors requested a timeline showing when different cost pressures were discovered, and reiterated requests for MCTS and county administration to brief the Transportation and Finance committees before public announcements of service changes.
County comptroller comment: CJ Paul told the committee the county’s overall fiscal position had “as of now, we continue to hover around to break even for the county as a whole,” and staff said additional sales tax and investment-earnings data will be included in the July fiscal report.
Next steps: County and MCTS staff said they will provide a detailed July report that breaks out commodity, overtime and paratransit impacts, and that the Transportation and Finance committees will receive that data prior to any final decisions on service reductions.
Ending: Committee members asked for transparent timelines and numbers before any public service reductions; MCTS leadership acknowledged the urgency but said more precise figures and recommendations will be delivered to the board during the July reporting cycle.
