Transit Budget Meeting Highlights Causes of Rising Operational Costs

The Milwaukee County Committee on Transportation and Transit convened on July 9, 2025, to discuss critical budgetary concerns impacting the county's transit system. The meeting highlighted two primary drivers of rising costs: personnel expenses and the performance of contracted transit services.

The discussion began with an overview of the 2025 budget, emphasizing the significant role of personnel costs, which account for approximately 80% of total expenses in the fixed route transportation division. A notable concern raised was the alarming increase in overtime hours, which have surged from 17% to 25% compared to the previous year. This means that for every 100 hours paid at the regular rate, an additional 25 hours are paid as overtime. The committee acknowledged that while overtime is sometimes necessary, the current levels exceed industry standards and require better management.

Further scrutiny was directed at the existing labor contract, which incentivizes overtime under certain conditions, such as when employees work on their days off or exceed eight hours in a single day. This has led to instances where employees accumulate excessive overtime while still working a standard 40-hour week. The committee expressed a commitment to reassess these practices to ensure they align with the intended goals of maintaining adequate staffing without overburdening employees.

In addition to personnel costs, the committee addressed issues related to the county's contracted transit service provider, Transdev. The contract stipulates a minimum productivity level of 1.7 passengers per hour; however, current performance is only at 1.4 passengers per hour. This shortfall results in higher costs for the county, as more hours are required to transport the same number of passengers. The committee is actively working with Transdev's leadership to resolve these productivity issues, involving both legal teams to facilitate discussions.

In conclusion, the meeting underscored the urgent need for Milwaukee County to address rising transit costs through improved management of overtime and enhanced productivity from contracted services. The committee's ongoing efforts aim to balance operational efficiency with the well-being of transit employees, ensuring a reliable service for the community.