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MCTS bus. Photo courtesy of Jeramy Janen.
The Milwaukee County Transit System (MCTS) plans to raise fares in 2025.
The system launched a new fare collection system in 2023, introducing fare caps that cap the amount riders must spend on daily, weekly or monthly transportation costs. Fare caps replace transit passes, allowing passengers to ride for free after reaching the cap without having to pre-purchase a special pass.
MCTS plans to increase daily, weekly, and monthly limits in 2025. The daily limit increases from $4 to $5 (25%), the weekly limit increases from $19.50 to $20 (2.5%), and the monthly limit increases from $72 to $75 (4.2%). . Each fare still costs $2, so you’ll need to take half-price extra trips to reach your daily limit.
The transit system has a structural budget deficit, largely covered by federal pandemic relief funds, which are projected to run out by 2028. Raising the fare cap is “very important” to maintain revenue for the transit system, said MCTS’ Tim Hosch. The chief financial officer told the county commission’s finance committee earlier this month.
“But more importantly, fares have not increased since 2019, so any small adjustments are overdue,” Hosch said.
In 2019, the transit system narrowly avoided major service cuts because the county used health savings to backfill the system’s structural budget. A year later, COVID-19 arrived in Milwaukee, and the federal government was distributing stimulus funds to local governments and transit systems across the country. MCTS has received approximately $191 million in stimulus funds, plugging holes in the system’s annual budget since 2021.
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The proposed MCTS budget calls for an additional $660,000 in fare revenue in 2025. This amount covers 18% of MCTS’ fixed route transportation budget of $131 million.
Transportation officials recently made a controversial decision to halt development of a second bus rapid transit line to prevent an impending large budget deficit. The new service would run 29 miles north-south across the county and cost an estimated $148 million to develop. But the estimated $6 million annual operating cost raised concerns, given that the system would soon struggle to pay for the bus service it already provides.
Shelving the project allowed MCTS to transfer $15 million in federal funds from the BRT project to the general budget, allowing it to maintain the system through 2028. MCTS plans to use $10.5 million in federal funds in 2025 alone to protect the system from budget deficits.
MCTS expects the new fare caps will help increase revenue for the system, even if ridership expectations decline. The transit system lowered its ridership goal by about 1.8 million trips to 19.7 million, but that amount is still higher than the actual total of 17.1 million trips in 2023.
Even before the coronavirus pandemic, passenger numbers were declining. However, once this trend occurred, it accelerated further, decreasing from approximately 28.9 million people in 2019 to 14.3 million people in 2021. Passenger numbers have gradually returned, but are still well below pre-pandemic levels.
The proposal requires approval from the Milwaukee County Board of Supervisors.
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2025 Milwaukee County Budget Details
Transportation: MCTS plans fare hikes in 2025 – Graham Kilmer – October 28, 2024 Protect Our Parks, Demand Fair Funding for Public Parks – Protect Our Parks – October 28, 2024 Milwaukee County Deserves a Budget That Prioritizes People’s Needs – Milwaukee Alliance Against Racists and Political Repression – October 28, 2024 Milwaukee County Finance Commission, Right to Counsel Authorizes $250,000 for Program – Sen. Jack Ekblad – October 24, 2024 Budget Amendment to Expedite Expansion of Atkinson Park Improvements – Supplemental Priscilla E. Coggs-Jones – October 24, 2024 MKE County :Supervisor Adds Domes Project to 2025 Budget – Graham Kilmer – October 24, 2024 Supervisor Taylor Amendment Funding Critical County Services Advancement – Grant Steve F. Taylor – October 24, 2024 Logsdon Supervisors to host budget town hall on October 23 – Sen. Patty Logsdon – October 22, 2024 Milwaukee DSA opposes county move to undermine successful right-to-attorney program – Democratic Socialists of America Milwaukee – October 22, 2024 Supervisor Kathleen Vincent will host 3rd Budget Town Hall on October 24 – Sen. Kathleen Vincent – October 21, 2024
Learn more about the 2025 Milwaukee County Budget.
