2015 Budget Listening Sessions Chris Abele Milwaukee County Executive 2015 Budget Listening Sessions August 13 & 14

Agenda County Overview County Budget Overview Fiscal Challenges 2015 Budget Strategy 2015 Budget Calendar 2015 Budget Listening Sessions August 13 & 14

Service Matrix 2015 Budget Listening Sessions August 13 & 14 County Overview Mandated Services* Behavioral HealthLaw Enforcement Veterans’ ServicesCircuit Courts Child Support EnforcementCriminal Prosecution Juvenile Justice Highway Safety Commission Developmental Disabilities Services Criminal Detention Section Eight Housing & HOME Programs Juvenile Placement * Examples of Major Programs Listed, Not All-Inclusive

Service Matrix 2015 Budget Listening Sessions August 13 & 14 County Overview Discretionary Services* Parks & Park SecurityTransit Cultural InstitutionsUW-Extension Senior CentersZoo Alcohol & Drug TreatmentCounty Trunk Highways Economic DevelopmentSupportive Housing Interim Disability Assistance Program Rehab Centers * Examples of Major Programs Listed, Not All-Inclusive

2014 Revenues by Source 2015 Budget Listening Sessions August 13 & 14 County Budget Overview

2014 Tax Levy by Major Function 2015 Budget Listening Sessions August 13 & 14 County Budget Overview

Benefit Cost Growth 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges Total Active & Retiree Fringe Benefit Costs per Budgeted FTE,

Forecasted Debt Service 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges “Critical to Work This Downward Trend”

Why Difficult Decisions Need to be Made 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges Projected Structural Deficit – 2012, 2013 & 2014 Adopted County Budgets (in millions) Source: 2014 Milwaukee County 5-Year Fiscal Projection (Municast); Office of the Comptroller

What About Those Surpluses? 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges 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 investments Rating 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 costs Waukesha County 16% unrestricted fund balance Dane County 12% unrestricted fund balance Would equate to $147-$200 million for Milwaukee County

Why Difficult Decisions Need to be Made 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges Infrastructure Issues County Owns ~1,000 buildings across the county 14 million square feet to maintain Some 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?

Issue More Debt? 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges Issuing More Debt = Less Services or Higher Taxes

Guiding Principles 2015 Budget Listening Sessions August 13 & 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?

Key Focus Areas 2015 Budget Listening Sessions August 13 & 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

Key Dates 2015 Budget Listening Sessions August 13 & Budget Calendar Late September: Recommended Budget Presentation October 6 – October 31: County Board Finance & Audit Committee Budget Hearings Late October: County Board Public Hearing Early November: County Board Budget Adoption Day