Milwaukee County warns fuel costs could create $1 million budget gap
MILWAUKEE (CBS 58) - Milwaukee County officials are warning that rising fuel prices could leave county departments facing a budget shortfall of nearly $1 million by the end of the year.
According to county leaders, departments could end 2026 approximately $1 million over budget if fuel prices increase another 50 cents per gallon.
The county budgeted $3.12 per gallon for diesel fuel this year. However, its most recent fuel delivery in May cost $4.87 per gallon, an increase of $1.75 above the budgeted amount.
Unleaded fuel has also climbed significantly. The county budgeted $2.52 per gallon but recently paid $4.12 per gallon, about $1.60 more than expected.
John Blonien, director of Milwaukee County Department of Transportation Fleet Management, said fuel prices surged following the start of the conflict in the Middle East.
"As the start of the conflict in the Middle East those prices rose sharply," he said. "You'll see in February and March pretty large differences from our budgeted amount to our actuals."
The county's largest fuel consumers include the Sheriff's Office, Parks Department, Highway Maintenance and Milwaukee Mitchell International Airport.
Fleet Management estimates county departments will finish the year about $718,500 over budget if fuel prices remain at current levels. Officials say that figure could grow to roughly $1 million if prices increase by another 50 cents per gallon.
Blonien said departments may need to make cuts elsewhere to offset the higher fuel costs.
"Those are going to require cuts elsewhere," he said. "For example, leaving positions vacant longer or underspending in other commodities."
Some have suggested electric vehicles could help reduce fuel expenses, but Blonien said many of the county's highest fuel-consuming vehicles and equipment do not have practical electric alternatives.
"So far it is practical for certain areas of our fleet," he said, "but the vast majority of our fuel usage we are reporting on today is in vehicles where there are not any practical electrified options."
County officials said they will continue monitoring fuel prices as they work to manage rising costs and avoid a larger budget shortfall.