A year after a surprise $10.9 million budget hole, the Milwaukee County Transit System is on the mend. So says the county, at least.
At a press conference on June 4, County Executive David Crowley and MCTS President and CEO Steve Fuentes announced that the state of the system is strong. The agency says it is on track to run what Crowley called a “modest surplus” of about $400,000 this year after an influx of federal funding and successful efforts to reduce fare evasion.
This statement of confidence comes as Milwaukee County itself faces a ballooning deficit, with a nearly $50.8 million hole anticipated in 2027 and more than $168 million by 2031.
“It was just one year ago [when] the future of the Milwaukee County Transit System was facing some uncertainty,” Crowley said. “Although we still have a long road ahead of us, I want the public to know that we have made significant organizational and fiscal progress over the past year.”
Last June, MCTS Executive Director Donna Brown-Martin and Interim President and CEO Julie Esch abruptly resigned as it became clear that the quasi-governmental agency was facing a $10.9 million budget deficit, despite reports that it was expecting a balanced budget.
Internal emails obtained by the Journal Sentinel revealed that MCTS officials were slow to disclose the agency’s fiscal problems to county officials. The budget deficit led to significant service cuts and fare increases.
At the time, county Comptroller Liz Sumner called for an audit of the agency’s finances and governance structure. The Milwaukee County Board of Supervisors Audit Committee will discuss the conclusions of the audit at its meeting on June 8.
For now, though, Crowley said that the county has not made any changes to the governance and organizational structure of MCTS, which operates as a semi-independent agency within the Milwaukee County Department of Transportation.
“I know that there were some recommendations, but I don’t believe we’ve made any changes at this moment,” Crowley said. “We are looking at the recommendations.”
Federal funds secured 39 new clean diesel buses
Nearly $30 million in federal funding secured by the state’s congressional delegation helped pay for 39 new clean diesel buses, one of which was on display for the press conference at Vel R. Phillips Plaza in downtown Milwaukee. Fare enforcement efforts also led to a reduction in fare evasion from 33% to 24% on average from January to April 2026, Crowley said.
MCTS has also significantly reduced overtime spending since last year, Fuentes said. A new contract amendment with the county’s van service provider also aims to reduce rising spending on accessible transit, a significant contributor to last year’s deficit.
A $4.85 million infusion from the County Board also helped offset the deficit this year and contain service changes to reductions in service hours rather than route elimination.
Midday services for some routes that had been reduced last year will be restored next week, Crowley said. The county has also made new investments in rider and operator safety, he said.
MCTS’ fiscal future remains in doubt, though. The system lacks a structural funding source, which leaves the system dependent on one-time infusions of cash from state and federal sources, according to Crowley. MCTS expects to contend with another deficit next year.
“We are continually building a coalition of state and federal partners to make sure that we can secure the necessary dedicated funding that we cannot provide alone,” Crowley said.
According to Crowley, the state’s funding for public transportation has not increased since 2011, despite the rising cost of fuel, infrastructure maintenance, and operator wages. An increase in line with inflation would have brought MCTS an additional $34 million this year, Crowley said.
Fuentes, who began in August 2025 at the head of a new leadership team, praised the “great work of our existing management and staff.”
“Residents should take comfort knowing that we every day come to work, and we’re working hard to save every dollar,” Fuentes said.
Fuentes said the system was considering the recommendations of the comptroller’s report, but improvements have already been made.
“We’re already more transparent, more collaborative than I believe we’ve ever been, and we’re making progress because of that,” Fuentes said.
Supervisor Steven Shea, chair of the county’s Committee on Transportation and Transit, stood behind Crowley for the announcement. Shea said that communication between MCTS and the Board of Supervisors has improved under new leadership, even without structural change.
“We are kept regularly notified. As far as I know, no relevant information has been held back,” Shea said. “The actual structure of the governance really hasn’t changed that much other than just the changes in personalities.”
Michael Brown, vice-president of ATU Local 998, which recently negotiated a new contract with MCTS, said that his union’s concerns about overwork have improved under the new contract, but he expressed frustration that MCTS leadership was asking union operators to make sacrifices beyond their contract, such as less time off over the summer.
“I feel like they don’t understand the union perspective. We have a contract. We have to follow the contract,” Brown said. “They just come up with their own rules.”
Consulting firm is leading a redesign of routes
MCTS has hired consulting firm Jarrett Walker + Associates to lead a redesign of Milwaukee County bus routes. MCTS plans to present details on the redesign process to the public in July.
Brown said the union was not happy with the firm’s plans for the redesign. He is particularly concerned that the new map will concentrate on white-collar jobs in downtown and near UWM, at the expense of blue-collar commuters to industrial areas in places like Menomonee Falls and New Berlin.
Fuentes expressed confidence in Jarrett Walker’s methods and their attention to equity concerns. Groups affected by the redesign will help direct the process in the coming months, Fuentes said.
This article originally appeared on Milwaukee Journal Sentinel: MCTS announces ‘modest surplus’ under new leadership
Reporting by Zachary Suri, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
USA TODAY Network via Reuters Connect
By Zachary Suri, Milwaukee Journal Sentinel | USA TODAY Network
