MILWAUKEE COUNTY BUDGET OVERVIEWDepartment of Administrative ServicesOffice of Performance, Strategy & Budget

Table of Contents0About DAS-PSB 0Budget Process

0 Budget Terminology 0 2014 Budget Facts

0 Significant Budget Issues

0 Questions?

About DAS-PSBPerformance, Strategy & Budget

0Budget Office – Perform duties delegated to DAS Director by §59.60

0Analyze policy proposals & changes throughout year

0 Provide planning services for Executive Branch

0 Provide technical assistance for any department/office

0 Tackle short-term and long-term process and policy issues

0 Budget Analysts generally responsible for functional areas

0Visit our blog: www.milwaukeecountypsb.com

0Follow us on Twitter: @milcopsb

Budget ProcessMain Budget Steps:

0 April – June: Departments develop & submit requests

0 June-September: County Executive & DAS-PSB analyze requests, develop recommended budget

0 October: County Board Committee on Finance, Personnel & Audit budget hearings

0 November: County Board adoption; vetoes

0 January 1: Budget implementation

Budget ProcessDetailed 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

June 30 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

Budget ProcessDetailed 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

Mid-November County Board votes on vetoes

January 1 Budget implemented

* = Estimated dates; specific dates can be subject to change

Budget ProcessAmendments – General Process

0 County Board shares with Comptroller Research Staff, DAS-PSB, or both, or neither.

0 DAS-PSB can & will assist with operational & fiscal impacts, language, etc.

Budget TerminologyITEM 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

Budget TerminologyITEM 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:http://county.milwaukee.gov/ImageLibrary/User/bpariseau/2014-Adopted-Operating/Revised2014AdoptedOperatingBud.pdf

2014 Budget Facts0$1,306,950,613: Total budgeted expenditures

0$1,027,629,418: Non-property tax Levy revenues

0$80,034,220: Capital Budget Expenditures

0$1,226,916,393: Operating budget expenditures

0$279,321,196: County property tax levy

04,601.6: Budgeted FTE positions

03,080: FTE positions managed by Executive Branch

2014 Budget Facts0$284,211,854: Largest expenditure department

(Family Care)

0$66,660,702: Largest tax levy department (Sheriff)

081: Budget units (Departments, Divisions, Etc.)

0149: Strategic Program Areas

09: Offices managed by elected officials

04: Revenue Appropriation Units

05: Budget Narrative Expenditure Appropriation Units

2014 Budget Facts

Legis/Exec General Govt Admin Courts & Jud Pub Safety Human Svcs Parks, Rec & Culture

Transp

FTEs 49 115 360 440 1383 1174 617.4 464

100

300

500

700

900

1,100

1,300

1,500

2014 Budgeted FTEs by Functional Area

2014 Budget Facts Cont.

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

FTEs

5457 5336 4853 4637 4602

YOY Change

-0.033988316

5161976

-0.022173355

3234378

-0.090517241

3793104

-0.044508551

411498

-0.007547983

61009273

5001,5002,5003,5004,5005,500

-14%-12%-10%-8%-6%-4%-2%0%2%4%

5-Year Comparison, Budgeted FTE Positions

Num

ber o

f Em

ploy

ees

YOY

Chan

ge

2014 Budget Facts

Legis/ Exec General Govt Admin Courts & Judi-ciary

Public Safety Human Services Parks, Rec & Culture

Transp

Tax Levy by Function Area ($mlns)

6.2 4.4 11.6 35.1 140.4 86.6 37.7 18.6

Non-Tax Revenue by Function Area ($mlns)

0 10.8 62.3 29.4 25.2 486.2 39 209.7

Expenditures by Function Area ($mlns)

6.2 15.2 73.9 64.5 165.5 572.8 76.7 228.3

$50.0

$150.0

$250.0

$350.0

$450.0

$550.0

$650.0

2014 Adopted Budget – Functional Area Comparison

$ in

Mill

ions

2014 Budget Facts

Significant Budget Issues

0Financial pressures

0 Structural Deficit

0Revenue Limitations

0Fringe Benefits

0State Mandates

0Infrastructure Issues

0Other Major Budget Issues

Significant Budget IssuesStructural Deficit

Comparison of Forecast Structural Deficit, 2012-2014 Budgets

Significant Budget Issues

0 State Law prohibits unrestricted fund balance0 Implications:

0No rainy day fund: any deficit carries over into next year0No ability to save for one-time investments0Rating agencies like reserves; impact on borrowing costs

0 2012 surplus of $24 million = 2 % of operating costs0 Debt Service Reserve balance: $7 million or less than

1% of operating costs0 Waukesha County 16% unrestricted fund balance0 Dane County 12% unrestricted fund balance0 Would equate to $147-$200 million for Milwaukee County

What about those big surpluses?

Significant Budget IssuesMilwaukee 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

Overall Levy 279$ Other Generated Revenue 127$ Total 406$

Less Other Elected FunctionsGeneral Government 4$ Legis/Exec 6$ Courts 34$ Public Safety 79$ Total 123$ Subtotal 283$

Less Debt & Legacy FringeLegacy Fringe 57$ Debt Service 42$ Subtotal 184$

Significant Budget IssuesFringe 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

36%

17%

47%

Composition of Health Insurance Subscribers

Active Pre-65 Retiree Post-65 Retiree

Significant Budget IssuesGross Fringe Benefit Expenditures by Category

(In Millions)

$59

$33 $32

$31

$34

Active Employee Health Pre-65 Retiree Health Age 65+ Retiree HealthActive Employee Pension Retiree Pension

Significant Budget IssuesForecasted Fringe Benefits as Share of Total County Expenditures

Significant Budget IssuesFringe Benefits – Comparison with Similar Counties

Significant Budget IssuesForecasted Legacy (Retiree) Fringe Benefits as Share of Total County

Expenditures

Significant Budget IssuesBenefit Liability Costs

Significant Budget IssuesBenefit Liability Costs

Significant Budget Issues

0 Public Safety

0 Jail, Juvenile Detention Center

0 Courts

0 Expressway Patrol

0 Process Service

0 District Attorney

0 Medical Examiner

0 Human Services

0 Behavioral Health

0 Child Support

0 Disabilities Services

0 Adult Crisis Services

0 Aging

0 Veterans’ Services

0 Home Energy Assistance

0 General Government

0 Treasurer

0 Register of Deeds

0 Clerk

0 Civil Service Commission

0 Corporation Counsel

0 Comptroller

0 DBE Compliance

0 Transportation & Public Works

0 Paratransit

0 Environmental Laws

State & Federal Mandates

Significant Budget IssuesInfrastructure Issues

0 County Owns ~1,000 buildings across the county

0 14 million square feet to maintain

0 Some space ill-suited for needs

0 75% are 30+ years of age

0 Largest amount of square footage is 75+ years of age

0 $300+ million in deferred maintenance

0 Borrow to fix = debt service costs

0 Do we really need all this stuff?

0 Can we AFFORD all this stuff?

Significant Budget IssuesInfrastructure Issues

0 How much capital funding is really available?

Significant Budget IssuesInfrastructure Issues

0 Issue more debt?

Significant Budget IssuesInfrastructure Issues

0 Could we afford to maintain the infrastructure we improve?

Significant Budget IssuesOther Major Issues

0 Implementation of Mental Health Board

0 Transit Service Model

0 Public Safety

0 Information Technology Upgrades

0 Compensation Structure

0 Implementation of Performance Measurement & Management

0 Others?

Questions?

THANK YOU!