MCTS outlines cost reduction strategies amid budget challenges and revenue shortfalls

During a recent hybrid meeting of the Milwaukee County Committee on Transportation and Transit, officials discussed pressing challenges facing the Milwaukee County Transit System (MCTS) as they prepare for the 2025 budget. A key focus was the need for a sustainable funding structure to ensure the continued operation and optimization of transit services.

MCTS representatives highlighted that passenger revenue is currently trending about 5% lower than expected. This decline is attributed to fare innovations and caps that have provided riders with more value, allowing them to enjoy free rides once they reach their fare limit. While this initiative has benefited the community, it has also impacted overall revenue.

In response to rising costs, including a 6% increase in vehicle parts and supplies, MCTS is implementing several cost-reduction strategies. These include renegotiating contracts with vendors, delaying certain projects, and adopting a lean operating system to enhance efficiency. A new financial system has also been introduced to improve real-time reporting and decision-making.

Despite these efforts, MCTS officials acknowledged a structural funding problem that persists, even with COVID relief funds expected to help balance the budget for 2025. They emphasized the importance of collaboration with the Milwaukee County Department of Transportation and the County Board to develop a sustainable funding model for the transit system.

As the meeting concluded, officials expressed optimism about forging stronger partnerships to address these challenges and ensure reliable transit services for the community. The discussions underscored the critical need for ongoing support and innovative solutions to maintain and improve public transportation in Milwaukee County.