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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!