A new study released today by Los Angeles-based Reason Foundation, a Libertarian think tank, says the projected economic benefits of the proposed Kenosha-Racine-Milwaukee (KRM) rail line are "not credible."

The group says other transit options should be considered instead of the KRM commuter trains, including express buses, bus rapid transit, carpool and vanpools.

The Reason Foundation says analysis by the University of Wisconsin-Milwaukee on the local economic benefits of the KRM "wrongly assumes all expenditures, and jobs created, would be local, even though there is no local capacity to produce many of the components, such as the $48 million rail cars. And the $2.1 billion increase in property values the rail project alleges would mean that each of the 3,696 projected 2035 round-trip riders would be worth $568,000, a claim that cannot be taken seriously."

The UWM study looked at development that commuter rail services have attracted in other urban areas, said Ken Yunker, deputy director for the South Eastern Wisconsin Regional Planning Commission (SEWRPC).

"The experience around the country is (development along the rail line) is what (communities) see as a key benefit," he said. Rail lines attract development of greater density, which is more efficient and cost-effective for local communities to serve, Yunker said.

The Southeastern Wisconsin Regional Transit Authority (RTA) Board has recommended that a sales tax of up to 0.5 percent be created in Milwaukee County, Kenosha County and eastern Racine County to pay for the $200 million KRM commuter rail service and local bus services. The state legislature would have to approve a sales tax increase for the RTA.

The Reason Foundation says every new passenger boarding the commuter rail system would cost $28. Passengers would pay just $2.92 for a ticket, meaning taxpayers would subsidize over $25 for every new one-way rail passenger.

"Amidst a recession and tough economic times, it is more important than ever to make decisions based on cost-effectiveness and benefits to citizens" said Tom Rubin, author of the Reason Foundation analysis and a transit consultant.

However, Yunker says passenger fares would pay for $4.6 million of the KRM's $10.9 million annual operating costs.

Yunker conceded that KRM will cost more than buses, but he said commuter rail provides longer trips and attracts more riders and more development, at a higher density.

"(The Reason Foundation has) got an ax to grind," Yunker said. "I don't think they've ever seen a rail project that they like."

The full Reason Foundation study, "The Kenosha-Racine-Milwaukee (KRM) Corridor Transit Service Options: An Investigation and Analysis," is online at http://reason.org/ps372.