MILWAUKEE COUNTY BUDGET OVERVIEW. Department of Administrative Services Office of Performance, Strategy & Budget. Table of Contents. About DAS-PSB Budget Process Budget Terminology 2014 Budget Facts Significant Budget Issues Questions?. About DAS-PSB. Performance, Strategy & Budget
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MILWAUKEE COUNTY BUDGET OVERVIEW Department of Administrative Services Office of Performance, Strategy & Budget
Table of Contents • About DAS-PSB • Budget Process • Budget Terminology • 2014 Budget Facts • Significant Budget Issues • Questions?
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 • Visit our blog: www.milwaukeecountypsb.com • Follow us on Twitter: @milcopsb
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
Budget Process Detailed Calendar* * = Estimated dates; specific dates can be subject to change
Budget Process Detailed Calendar Continued* * = Estimated dates; specific dates can be subject to change
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.
Budget Terminology More definitions are available in the 2014 Adopted Budget narrative document, at: http://county.milwaukee.gov/ImageLibrary/User/bpariseau/2014-Adopted-Operating/Revised2014AdoptedOperatingBud.pdf
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
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
Significant Budget Issues • Financial pressures • Structural Deficit • Revenue Limitations • Fringe Benefits • State Mandates • Infrastructure Issues • Other Major Budget Issues
Significant Budget Issues Structural Deficit Comparison of Forecast Structural Deficit, 2012-2014 Budgets
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
Significant Budget Issues • 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 Milwaukee County has Limited Discretionary Resources
Significant Budget Issues Fringe Benefits
Significant Budget Issues Gross Fringe Benefit Expenditures by Category (In Millions)
Significant Budget Issues Forecasted Fringe Benefits as Share of Total County Expenditures
Significant Budget Issues Fringe Benefits– Comparison with Similar Counties
Significant Budget Issues Forecasted Legacy (Retiree) Fringe Benefits as Share of Total County Expenditures
Significant Budget Issues Benefit Liability Costs
Significant Budget Issues Benefit Liability Costs
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
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?
Significant Budget Issues Infrastructure Issues • How much capital funding is really available?
Significant Budget Issues Infrastructure Issues • Issue more debt?
Significant Budget Issues Infrastructure Issues • Could we afford to maintain the infrastructure we improve?
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?
Questions? THANK YOU!