Chris Abele Milwaukee County Executive 2015 Budget Listening Sessions August 13 amp 14 Agenda County Overview County Budget Overview Fiscal Challenges 2015 Budget Strategy 2015 Budget Calendar ID: 730595
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2015 Budget Listening Sessions
Chris AbeleMilwaukee CountyExecutive
2015 BudgetListeningSessionsAugust 13 & 14Slide2
Agenda
County Overview
County Budget OverviewFiscal Challenges2015 Budget Strategy2015 Budget Calendar
2015 Budget
Listening
Sessions
August 13 & 14Slide3
Service Matrix
2015 Budget
ListeningSessionsAugust 13 & 14County Overview
Mandated Services*
Behavioral Health
Law
Enforcement
Veterans’ Services
Circuit Courts
Child
Support EnforcementCriminal ProsecutionJuvenile JusticeHighway Safety CommissionDevelopmental Disabilities ServicesCriminal DetentionSection Eight Housing & HOME ProgramsJuvenile Placement
* Examples of Major Programs Listed, Not All-InclusiveSlide4
Service Matrix
2015 Budget
ListeningSessionsAugust 13 & 14County Overview
Discretionary Services*
Parks & Park Security
Transit
Cultural
Institutions
UW-Extension
Senior Centers
ZooAlcohol & Drug TreatmentCounty Trunk HighwaysEconomic DevelopmentSupportive HousingInterim Disability Assistance ProgramRehab Centers
* Examples of Major Programs Listed, Not All-InclusiveSlide5
2014 Revenues by Source
2015 Budget
ListeningSessionsAugust 13 & 14County Budget OverviewSlide6
2014 Tax Levy by Major Function
2015 Budget
ListeningSessionsAugust 13 & 14County Budget OverviewSlide7
Benefit Cost Growth
2015 Budget
ListeningSessionsAugust 13 & 14Fiscal Challenges
Total Active & Retiree Fringe Benefit Costs per Budgeted FTE, 2004-2014Slide8
Forecasted Debt Service
2015 Budget
ListeningSessionsAugust 13 & 14FiscalChallenges
“Critical to Work This Downward Trend”Slide9
Why Difficult Decisions Need to be Made
2015 Budget
ListeningSessionsAugust 13 & 14FiscalChallenges
Projected Structural Deficit – 2012, 2013 & 2014 Adopted County Budgets
(
in millions
)Source: 2014 Milwaukee County 5-Year Fiscal Projection (Municast); Office of the ComptrollerSlide10
What About Those
Surpluses?
2015 BudgetListeningSessionsAugust 13 & 14FiscalChallenges
State Law prohibits unrestricted fund balance
Implications:
No rainy day fund: any deficit carries over into next year
No ability to save for one-time investmentsRating agencies like reserves; impact on borrowing costs
2012 surplus of $24 million = 2 % of operating
costs
Debt Service Reserve balance:
$21 million or less than 2% of operating costsWaukesha County 16% unrestricted fund balanceDane County 12% unrestricted fund balanceWould equate to $147-$200 million for Milwaukee CountySlide11
Why Difficult Decisions Need to be Made
2015 Budget
ListeningSessionsAugust 13 & 14FiscalChallenges
Infrastructure
Issues
County Owns ~1,000 buildings across the county
14 million square feet to maintainSome space ill-suited for needs
75% are 30+ years of age
Largest amount of square footage is 75+ years of age
$300+ million in deferred maintenance
Borrow to fix = debt service costs Do we really need all this stuff?Can we AFFORD all this stuff?Slide12
Issue More Debt?
2015 Budget
ListeningSessionsAugust 13 & 14FiscalChallenges
Issuing More
D
ebt = Less Services or Higher TaxesSlide13
Guiding Principles
2015 Budget
ListeningSessionsAugust 13 & 142015 Budget Strategy
Long-term Fiscal Sustainability is a MUST
Tough Decisions Need to be Made
Service Debt
Data-based Decision-making is a Driver Is it Mandated, a Priority or Nice-to-Have?
Why Should Property Tax Payers Fund This?
Do Others Provide this Service More Efficiently?
Are there Best Practices We Can Adopt?Slide14
Key Focus Areas
2015 Budget
ListeningSessionsAugust 13 & 142015 Budget Strategy
Programs for Those Most in Need
Efficiency & Productivity
Long-Term Cost Reduction & Cost Avoidance
Sustainable Budget and Pay Off Debt
Opportunities for Shared Services
Challenge the Status Quo Slide15
Key Dates
2015 Budget
ListeningSessionsAugust 13 & 142015 Budget Calendar
Late September:
Recommended Budget Presentation
October 6 – October 31:
County Board Finance & Audit Committee Budget HearingsLate October: County Board Public HearingEarly November: County Board Budget Adoption Day