1. 2015 Budget Listening Sessions Chris Abele Milwaukee County Executive 2015 Budget Listening Sessions August 13 & 14

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

3. 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

4. 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

5. 2014 Revenues by Source 2015 Budget Listening Sessions August 13 & 14 County Budget Overview

6. 2014 Tax Levy by Major Function 2015 Budget Listening Sessions August 13 & 14 County Budget Overview

7. Benefit Cost Growth 2015 Budget Listening Sessions August 13 & 14 Fiscal Challenges Total Active & Retiree Fringe Benefit Costs per Budgeted FTE, 2004-2014

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

9. 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

10. 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

11. 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?

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

13. Guiding Principles 2015 Budget Listening Sessions August 13 & 14 2015 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?

14. Key Focus Areas 2015 Budget Listening Sessions August 13 & 14 2015 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

15. Key Dates 2015 Budget Listening Sessions August 13 & 14 2015 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