Milwaukee County Transit System faces $10M deficit amidst leadership changes

In a recent hybrid meeting of the Milwaukee County Committee on Transportation and Transit, significant concerns were raised regarding a staggering $10 million budget deficit facing the Milwaukee County Transit System (MCTS). The meeting, held on July 9, 2025, highlighted the urgent need for transparency and accountability in the wake of leadership changes within the transit authority.

The discussion began with committee members expressing frustration over the sudden emergence of the deficit, which was reportedly not disclosed until it became a public issue. Questions were directed at the new leadership regarding the circumstances surrounding the previous management's departure and whether their exit was linked to the financial oversight failures. While the new officials refrained from speculating on the reasons for the leadership changes, they acknowledged the importance of addressing the deficit and restoring public trust.

Key factors contributing to the deficit were identified, including increased overtime costs, rising healthcare expenses, and a decline in farebox revenues. The committee emphasized that while overtime is a significant driver of the budget shortfall, other operational costs are also trending negatively. The new leadership committed to working closely with the county's budget office to analyze these issues and develop strategies to mitigate the deficit.

Another critical point of discussion was the oversight mechanisms in place to prevent such financial mismanagement. Committee members pressed for clarity on how often the MCTS board meets and what measures are being implemented to enhance accountability. The new leadership assured the committee of their commitment to transparency and cooperation, particularly regarding an upcoming audit by the county comptroller's office.

As the meeting concluded, the urgency of addressing the budget deficit was clear. The new leadership at MCTS faces the dual challenge of rectifying the current financial situation while ensuring that the transit system continues to meet the community's needs. With federal funds available to cover some of the deficit, the focus now shifts to long-term solutions that will prevent similar issues in the future and restore confidence in Milwaukee County's public transit system.