Who Will Lead MCTS?

MCTS bus. Photo by Jeramey Jannene.

The Milwaukee County Transit System (MCTS) is facing multiple crises right now, and at the helm is a group of new, transitional leaders.

But MCTS will not say how the search for a new leader is going, or if it’s going at all. The system has not had a permanent leader since October 2024 when the former managing director Denise Wandke took a leave of absence and retired roughly three months later. After Wandke left, Deputy Director Julie Esch stepped into her role as interim managing director.

Esch resigned from MCTS on July 8 in the wake of an unexpected $10.9 million projected budget deficit and the political blowback that followed. Transit leaders did not inform county elected officials of the deficit and have so far refused to say, with any specificity, how the system managed to miss a massive gap in their operating budget until June. MCTS is currently being led by Sandra Kellner, the chief administrative officer and a longtime MCTS employee.

MCTS has not answered questions about whether a search is ongoing, whether there are candidates being interviewed, who is responsible for conducting the search, or whether Esch was up for the job before she abruptly resigned in the wake of the budget scandal. In recent weeks, MCTS has declined to answer basic questions about the system, including how many drivers they currently employ.

Wandke came into the top job at MCTS after first serving on an interim basis. In June 2023, former managing director Dan Boehm took a leave of absence before retiring at the end of the year. During that time, Wandke moved up from deputy director to interim managing director. She would lead the system on an interim basis for 11 months before being awarded the job on a permanent basis.

The leader of MCTS is no longer called the managing director. The new title is president and CEO. That title has been used since April 11, a spokesperson for MCTS recently told Urban Milwaukee. That was the same day a listing for the job was posted online. The listing has not been active since May 24. MCTS also does not include the position in a list of job openings on their website.

A spokesperson for Milwaukee County Executive David Crowley confirmed there are a pool of candidates for the job, but could not confirm whether or not Esch was among them, only that a decision is expected soon and that there is urgency in selecting a new president and CEO given the many challenges facing the transit system.

On June 16, MCTS released a public statement announcing the $10.9 million projected shortfall and corresponding cuts to bus service. Elected officials had not been briefed and were shocked to learn about the system’s dire financial position in news reports.

Supervisors and the county executive’s office responded by asking Comptroller Liz Sumner to audit the transit system. The comptroller’s office will conduct a short-term financial analysis and a longer-term audit of MCTS.

In the fallout, as elected officials began asking MCTS how the deficit occurred, some details began to emerge. The system is now pointing to overtime, an over-budget contractor, declining passenger revenue and increasing cost for parts and commodities.

The system also told supervisors fare evasion is costing MCTS approximately $4 million annually. Supervisors responded with a resolution telling MCTS to develop a plan addressing it.

In the background, ongoing negotiations between MCTS and the Amalgamated Transit Union Local 998 (ATU) have been deteriorating. In May, union leaders told Urban Milwaukee negotiations seemed to be going nowhere. Then MCTS announced the budget deficit, informing  ATU negotiators of the deficit in the middle of a bargaining session. The union wondered if the deficit, and the timing of the announcement, was being wielded against them as a negotiation tactic.

On July 10, union members voted overwhelmingly to invest their leadership board with strike authority. Now, as negotiations progress, ATU President Bruce Freeman has the ability to call a strike at any time.