In a significant shift for public sector employment in Wisconsin, Milwaukee County will no longer enroll new hires in its own Employee Retirement System, shifting them instead to the Wisconsin Retirement System starting January 1, 2025. The move comes as County Executive David Crowley celebrates a collaboration between the Milwaukee County Board of Supervisors and the State Legislature, aimed at overcoming the financial burdens that have long plagued Milwaukee County's budgets. The change was enabled by Wisconsin Act 12, signed into law by Governor Tony Evers last year, which also introduces a new funding source to cover existing pension obligations.
For over eight decades, Milwaukee County managed its own pension system, which came under strain due to controversial changes in the early 2000s. These changes, coupled with significant market events, resulted in sustained financial struggle. Following the legislation, Crowley said in a statement obtained by Milwaukee County, "When I became County Executive, my number one priority was solving the County’s fiscal issues, including the legacy pension challenges that have impacted County budgets for many years." He regarded the new legislation as a solution to the county's fiscal challenges.
Wisconsin Act 12 is not just addressing the pension system issues but is also anticipated to increase Milwaukee County’s revenue flexibility by over $2 billion across the lifespan of the enacted 0.4% sales tax. This is expected to free up funds allowing the county to better invest in local services and priorities that residents rely on. County Executive Crowley expressed a sense of relief and accomplishment regarding the fiscal breakthrough, telling Milwaukee County, "This was the largest fiscal weight around our neck that we had to address and resolve."
