Milwaukee County Executive Scott Walker today unveiled his proposed 2009 county budget, which calls for expenditures to explore the privatization of General Mitchell International Airport and to apply for federal funding for a Bus Rapid Transit service.

For the seventh consecutive year, Walker's recommended county budget features no increase in county property taxes.

Walker is proposing a 2009 budget of $1.4 billion, which is up 6.17 percent from the 2008 adopted county budget. However, his 2009 budget projects revenues of nearly $1.2 billion, which is up from 7.58 percent from $1.2 billion 2008.

Walker's proposed tax levy of $249.9 million remains unchanged from the 2008 levy.

"Since 2002, our debt is down 10 percent and our workforce has decreased 23 percent. These changes, along with reforms throughout our government, led the national ratings firms to improve the status of our bond rating. And in 2007, together, we finished the year with a $7.9 million surplus," Walker stated in his prepared budget address.

Walker is again asking the county board to join him in exploring the privatization of the airport.

"I propose that we put in place a process to prepare for a bid to lease the operations of our airport. Mitchell International is very well run. In fact, we just announced another record-breaking month - the 16th consecutive month of record-breaking growth at the airport. The positive news at Mitchell is exactly what will make it attractive to potential bidders in the future," Walker said. "If successful, contracting out operations would provide a steady revenue stream to the county. These funds should then be used to support and improve transit in our county - and throughout our region - for years to come. And we can do it without raising another tax. Chicago is doing something similar even as we speak. The city got more than $1.3 billion several years ago for the Skyway Toll Bridge. Bids for Midway Airport are now being received this week. We should move forward with a plan to see if it can work in Milwaukee too."

Walker also is asking the county board to authorize funding needed to submit an application for federal dollars to create a bus Rapid Transit line.

"Looking to the future, we move forward with a Bus Rapid Transit plan that will improve and upgrade our current bus system. Our budget includes the resources we need to submit an application to the federal government for funding to start a Bus Rapid Transit line from the northwest side, along Fond du Lac Avenue to downtown Milwaukee and back along National Avenue to the southwest side," Walker said. "This new line can move forward regardless of the lack of positive action by the Mayor over the $91.5 million for transit improvements. On this issue, you - the county board - and I are united, as we believe that these funds should be spent to improve and upgrade the existing bus system - not to create a new city system that will drain dollars away from the county transit system."

However, Walker is proposing another increase in bus fares. The adult cash fare would rise in his budget to $2.25 from $2.00. 

After some incidents involving prisoners at the House of Corrections in Franklin, Walker is proposing to consolidate all of the corrections functions under the authority of Sheriff David Clarke.

"Specifically, we propose that all of the corrections functions in the county be consolidated under the authority of the sheriff.  I want to personally thank Sheriff David Clarke for his leadership on this important reform. The jail, House of Correction and Huber facility will all be under the supervision of our chief law enforcement official in the county. This will improve public safety," Walker said.

Walker also is calling for construction of a new mental health facility.

"Today, I ask you to allow us to negotiate for a state-of-the-art mental health facility on the site of the former St. Michael Hospital, and to sell the land on the county grounds so we have a funding source to sustain mental health services for years to come. We asked the developer to sharpen his pencil on this project and he did. This greatly reduced the cost to Milwaukee County. It is clear that building our own structure will cost considerably more, result in more delays and shift significant financial risks to the County," Walker said. "Mental health advocates understand that the time to act is now. Prolonged debate and delay comes at the expense of the clients we serve and the dedicated staff that work hard day in and day out providing quality care in a facility that has outlived its useful purpose. Let's get this job done!"

In his budget, Walker is calling for contracting out $9.8 million worth of programs and services. He is proposing cutting the number of county employees by 235 full-time equivalents, reducing the number of employees to 5,456.

"I said many times during the last election that county government could either be an employment service or a provider of key services to people in the community. I pick the latter," Walker said. "In total, the government reforms I propose in the budget will save this county over $27 million next year and every year thereafter. If we are to sustain our core functions and ensure quality services, we must be bold."

Meanwhile, the Wisconsin Policy Research Institute, a conservative think tank, issued a report this week that says local governments are facing a "ticking time bomb" of pledged obligations to employee retiree benefits.

According to local government annual finance reports, 27 local governments in Wisconsin are saddled with a combined $6 billion unfunded liability to pay for "Other Postemployment Benefits" (OPEB), the WPRI reported.

"Often times, as part of their employment packages, local governments offer to pay health benefits for retired employees. Until now, local governments paid what they owed on a year-to-year basis. But new accounting rules require local governments to divulge the level of their long-term benefit liability. And in some cases, the local government OPEB liabilities are stunning - in some cases, dwarfing the government's total annual budget," the agency said.

For the full report, click here.