June 26, 2009 

NEWS FROM THE MAYOR

Dear Friends,

Ensuring the financial well-being of the City has always been a top priority. Throughout the year, I receive numerous briefings from the budget staff keeping me informed of the City’s financial status.

It should come as no surprise that the City’s fiscal situation has become more and more serious as the economic environment of the country has continued to worsen.

Over the last 14 years, the City has withstood a freeze in State Shared Revenue. In addition, as a result of the precipitous decline in the stock market, the City’s pension fund contribution for the 2010 budget will most likely increase by between $49-$92 million compared to the 2009 budget.

It would be unreasonable to think the City would be immune from the effects of the economic downturn, and prudent planning has helped us maintain essential services and stave off massive layoffs.

As you can imagine, I’ve paid close attention to the State Budget process and continue to monitor its effects on Milwaukee. I’m pleased both houses affirmed the need for the .15% dedicated funding source for local communities for public safety. While I’m committed to Regional Transit Authorities, my main priority has been public safety.

This provision in the state budget will generate approximately $11.5 million on an annual basis to the City. This projected fiscal impact is significant. The addition of $11-$12 million to the city’s baseline revenue would allow for two important improvements to the City Budget over the next three years.

It will enable the City to stabilize the impact of increasing pension fund contributions. In addition to the anticipated increase for 2010, we are projecting additional contribution increases of an additional $12-$13 million for both 2011 and 2012.

Most importantly, it will help the City preserve at least 100 additional police positions in the next three budgets, relative to what would occur in the absence of this additional revenue. We’ve made significant progress in making Milwaukee a safer city and preserving police strength is a budget priority.

Sincerely,

Mayor, City of Milwaukee  

Visit my website at: http://www.city.milwaukee.gov/mayor