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In 2022, the City of Milwaukee faced a dire financial crisis, with an annual deficit projected to reach $200 million and the threat of bankruptcy looming. This situation was exacerbated by declining state-shared revenue, state-mandated limits on local tax levies, and rising pension obligations. The city was at risk of significant layoffs in essential , including police and fire departments, which could lead to increased crime and a deterioration of public . To address this unprecedented challenge, the Greater Milwaukee Committee (GMC) collaborated with the mayor's office and city council, engaging EY-Parthenon for an external assessment and to explore potential solutions. The EY-Parthenon team conducted a comprehensive review of Milwaukee's financial situation, revealing that the budget deficit could not be resolved solely through efficiency measures, as the city had already implemented significant cuts. The analysis highlighted the need for state assistance, which led to the Wisconsin Assembly authorizing additional fiscal measures that could generate approximately $180 million annually. However, the city still required an additional $50 million to achieve long-term fiscal stability. To tackle the budget gap, the EY-Parthenon team employed a diagnostic approach, analyzing the city's highest-cost and identifying potential savings and revenue opportunities. They benchmarked Milwaukee against 12 peer cities, demonstrating that the city's financial issues were primarily revenue-related rather than due to excessive spending. The team identified 41 streamlining measures that could yield an estimated $140 million in savings over ten years, with $88 million classified as quick wins that could be implemented within six months. Additionally, the project uncovered financial planning recommendations that could generate over $450 million in savings and new revenues over the same period. These included leveraging city assets for revenue, reforming pension and health programs, and consolidating with Milwaukee County. The report also suggested innovative ways to monetize city assets, such as selling advertising space on public infrastructure and consolidating government office spaces to create rental income. The engagement not only provided actionable recommendations but also aimed to enhance the city's innovation infrastructure. EY-Parthenon facilitated workshops to empower city employees with new skills and foster a culture of continuous improvement. This led to the establishment of a new role, the innovation director, tasked with prioritizing and implementing the recommendations from the GMC report. Overall, the collaboration between the City of Milwaukee and EY-Parthenon resulted in a strategic framework for addressing the city's financial challenges, equipping officials with the tools and insights necessary to pursue sustainable fiscal health and improve service delivery for residents.

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