1. MILWAUKEE COUNTY BUDGET OVERVIEW
Department of Administrative Services
Office of Performance, Strategy & Budget

2. Table of Contents About DAS-PSB Budget Process Budget Terminology
2014 Budget Facts
Significant Budget Issues
Questions?

3. Performance, Strategy & Budget
About DAS-PSB
Performance, Strategy & Budget
Budget Office – Perform duties delegated to DAS Director by §59.60
Analyze policy proposals & changes throughout year
Provide planning services for Executive Branch
Provide technical assistance for any department/office
Tackle short-term and long-term process and policy issues
Budget Analysts generally responsible for functional areas
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4. Budget Process Main Budget Steps:
April – June: Departments develop & submit requests
June-September: County Executive & DAS-PSB analyze requests, develop recommended budget
October: County Board Committee on Finance, Personnel & Audit budget hearings
November: County Board adoption; vetoes
January 1: Budget implementation

5. Budget Process Detailed Calendar* DATE ITEM April 1
Departments access BRASS budget software
April 25
Departments receive tax levy targets
Late April-May
Comptroller provides updated five-year forecast
May 17
Capital project requests due to DAS-A&E, DAS-IMSD
May 30
Internal Service Fund Charges due to DAS-PSB
June 30
Elected Offices’ Budgets due to County Executive, DAS-PSB
Capital budget requests due to County Executive, DAS-PSB
July 15
Cabinet Dept budget requests due to County Executive, DAS-PSB
Late July
County Executive Requested Budget Hearing (§59.60(6)(a))
August 15
Requested Budget Summary published (§59.60(5))
* = Estimated dates; specific dates can be subject to change

6. Detailed Calendar Continued*
Budget Process
Detailed Calendar Continued*
DATE
ITEM
July 1 – Sept 8
DAS-PSB, County Executive analysis of budget
Sept 8-12
Final decisions made
September 19
Budget narratives sent to printer
September 25
County Executive issues recommended budget
Early October
County Board Committee on Finance, Personnel & Audit Hearings
End Oct/Nov
County Board public budget hearing
November 11
County Board adoption of budget
Mid-November
County Executive issues vetoes
County Board votes on vetoes
January 1
Budget implemented
* = Estimated dates; specific dates can be subject to change

7. Amendments – General Process
Budget Process
Amendments – General Process
County Board shares with Comptroller Research Staff, DAS-PSB, or both, or neither.
DAS-PSB can & will assist with operational & fiscal impacts, language, etc.

8. Budget Terminology ITEM DEFINITION Abatement
Negative expenditure, usually offsets an internal crosscharge
Appropriation Unit
Group of similar accounts for revenues and expenditures. For instance: salary and fringe benefits are in “Personal Services”
Fringe Benefits
Benefits provided to active employees and retirees. Includes pension, health, dental, life insurance, bus pass, wellness, etc.
FTE
Full-time equivalent. Share of 2,080 hours that a position is expected to be employed by the County.
Internal Crosscharge
Charge by one county department to another for services. For instance: fleet charges out cost of debt & maintenance of vehicles.
Legacy Fringe
Fringe benefits, mainly health insurance, pension, and Medicare premium reimbursements for retired employees
Non-Departmental
Budget unit for items that don’t belong to a department. For instance: sales tax, contingency fund, internal service allocation

9. Budget Terminology ITEM DEFINITION Performance Measure
Measure of how well a program area does at providing service to customers and taxpayers.
Strategic Outcome
Plank of the County’s Mission Statement that Strategic Program Areas (see below) seek to achieve.
Strategic Program Area
Individual service provided by County Departments
Structural Deficit
The estimated amount by which expenditures are forecasted to rise more quickly than revenues annually.
Tax Levy
Property tax levy, the County’s largest single source of discretionary revenue
More definitions are available in the 2014 Adopted Budget narrative document, at:

10. 2014 Budget Facts $1,306,950,613: Total budgeted expenditures
$1,027,629,418: Non-property tax Levy revenues
$80,034,220: Capital Budget Expenditures
$1,226,916,393: Operating budget expenditures
$279,321,196: County property tax levy
4,601.6: Budgeted FTE positions
3,080: FTE positions managed by Executive Branch

11. 2014 Budget Facts
$284,211,854: Largest expenditure department (Family Care)
$66,660,702: Largest tax levy department (Sheriff)
81: Budget units (Departments, Divisions, Etc.)
149: Strategic Program Areas
9: Offices managed by elected officials
4: Revenue Appropriation Units
5: Budget Narrative Expenditure Appropriation Units

12. 2014 Budget Facts

13. 2014 Budget Facts Cont.

14. 2014 Budget Facts

15. 2014 Budget Facts

16. Significant Budget Issues
Financial pressures
Structural Deficit
Revenue Limitations
Fringe Benefits
State Mandates
Infrastructure Issues
Other Major Budget Issues

17. Significant Budget Issues
Structural Deficit
Comparison of Forecast Structural Deficit, Budgets

18. Significant Budget Issues
What about those big surpluses?
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: $7 million or less than 1% of operating costs
Waukesha County 16% unrestricted fund balance
Dane County 12% unrestricted fund balance
Would equate to $147-$200 million for Milwaukee County

19. Significant Budget Issues
Milwaukee County has Limited Discretionary Resources
Overall Tax Levy is $279 million
Other General Revenue is ≈ $127 million
TOTAL = $406 million
30% goes to support elected offices:
General Government is $4 million
Courts are $34 million
Sheriff & DA are $79 million
Legislative & Executive are $6 million
Debt Service is $42 million
Legacy (Retiree) Fringe Benefits are ≈$57 million
Remaining $184 million or 45 percent to support all other County functions

20. Significant Budget Issues
Fringe Benefits
ITEM
2014 $
Gross Employee & Retiree Fringe Benefits, 2014 Adopted Budget
$189,029,570 -
Less, Direct Revenues in Agency 1950
($18,346,142 =
Amount Allocated to Departments
$170,683,428
Estimated Revenue Offset at 17%
($29,016,183)
Approximate Tax Levy Cost, Employee & Retiree Fringe Benefits:
$141,667,245

21. Significant Budget Issues
Gross Fringe Benefit Expenditures by Category
(In Millions)

22. Significant Budget Issues
Forecasted Fringe Benefits as Share of Total County Expenditures

23. Significant Budget Issues
Fringe Benefits – Comparison with Similar Counties

24. Significant Budget Issues
Forecasted Legacy (Retiree) Fringe Benefits as Share of Total County Expenditures

25. Significant Budget Issues
Benefit Liability Costs

26. Significant Budget Issues
Benefit Liability Costs

27. Significant Budget Issues
State & Federal Mandates
Public Safety
Jail, Juvenile Detention Center
Courts
Expressway Patrol
Process Service
District Attorney
Medical Examiner
Human Services
Behavioral Health
Child Support
Disabilities Services
Adult Crisis Services
Aging
Veterans’ Services
Home Energy Assistance
General Government
Treasurer
Register of Deeds
Clerk
Civil Service Commission
Corporation Counsel
Comptroller
DBE Compliance
Transportation & Public Works
Paratransit
Environmental Laws

28. Significant Budget Issues
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?

29. Significant Budget Issues
Infrastructure Issues
How much capital funding is really available?

30. Significant Budget Issues
Infrastructure Issues
Issue more debt?

31. Significant Budget Issues
Infrastructure Issues
Could we afford to maintain the infrastructure we improve?

32. Significant Budget Issues
Other Major Issues
Implementation of Mental Health Board
Transit Service Model
Public Safety
Information Technology Upgrades
Compensation Structure
Implementation of Performance Measurement & Management
Others?

33. Questions?
THANK YOU!