Milwaukee Biz Blog

Editor's note: President-elect Barack Obama has asked state and local governments to make requests for key infrastructure projects that could receive federal funding as part of his economic stimulus plan. Wisconsin Gov. Jim Doyle and Milwaukee Mayor Tom Barrett, both Democrats have provided their "wish lists" to the Obama administration. Milwaukee County Executive Scott Walker said he will not seek funding for projects in Milwaukee County. County Supervisor Lee Holloway, chairman of the county board, wrote the following letter about the subject to Walker Wednesday.

Subject: Federal stimulus request necessary for Milwaukee County
Scott,
You are out there all alone on this issue. Many other Republicans and Democrats across Wisconsin are submitting requests for the upcoming federal stimulus package. Do you actually want 71 other counties in Wisconsin and 49 other states to enjoy stimulus funds that are going to be spent whether you are included or not? Based on your comments that I have observed from multiple media outlets, you apparently believe the following:

• We have an unemployment rate that is among the highest in the Nation, but we don't need any stimulus money.
• For nearly seven years, your strategy involves shrinking Milwaukee County government to the point where it nearly kills almost every public service from Transit to Parks, from Justice to Public Safety, and from Economic Support to Human Service, but we don't need any stimulus money. 
• You presented seven consecutive budgets that defer maintenance in excess of a half billion dollars for the preservation of taxpayer assets, but we don't need any stimulus money. 
• Stimulus money benefits the economy by putting people to work and purchasing goods and services, but we don't need any stimulus money. 
• You have managed to run two countywide deficits as well as multiple deficits in nearly every major department over the last six years, but we don't need any stimulus money. 
• Highly educated and experienced economists seem to agree that the President-Elect's plan is necessary to stimulate the economy, but we don't need any stimulus money. 
• The plan that comes out of Washington will be a set dollar amount whether Milwaukee County is involved or not, so whatever we don’t get will go to other communities, but we don't need any stimulus money. 
• The parks that were built during the last major depression are some of our most beloved assets and are in need of repair, but we don't need any stimulus money. 
• Our mental health facility is in serious need of replacement to better serve some of our most vulnerable citizens, but we don't need any stimulus money.
• Thousands of our citizens are in need of health care, but we don't need any stimulus money. 
• In your mind, the 2010 election season is upon us, and, because Governor Jim Doyle is working to secure federal stimulus funds, you oppose seeking stimulus money.

An effective Milwaukee County executive should actively seek outside funding to reduce the burden on local property tax payers. Shouldn't the dollars we send to Washington be returned to our county? A competent Milwaukee County executive should recognize the importance of creating jobs and bringing lasting value to County residents.

On Sept. 4, the Milwaukee County Board of Supervisors voted to override the county executive's veto of an advisory referendum on whether to provide $67 million in property tax relief for Milwaukee County residents by shifting funding for mass transit; parks, recreation and culture; and paramedics from the property tax levy to a small increase in the sales tax. 

The property tax is the most hated tax in Wisconsin and Milwaukee County. Any attempts to reduce the heavy property tax burden should be considered. This advisory referendum will let the public weigh in on whether the property tax levy should be reduced to the lowest point since 1997.

Under this scenario, all funding for mass transit, parks, recreation, culture and emergency medical services (EMS) would be removed from the property tax levy. For the owner of a $150,000 home in Milwaukee, this would be an approximate $165 property tax reduction.  Owners of property worth higher amounts would save even more.

Don't be fooled when County Executive Scott Walker claims property taxes won't be reduced. The advisory referendum question clearly states property tax relief of at least $67 million, to establish a new tax levy base of approximately $183 million, down from the 2008 level of $250 million. In the future, due to strict limits set by the state, the levy could only increase by 2 percent of that new, lower base (or by the percentage increase in the county's equalized assessed value).

Why is this a good deal for county residents? It would reduce the property tax burden, thanks in part to increased revenue generated by visitors. Sales taxes are partly paid by visitors who enjoy Milwaukee County's amenities but pay no property taxes. It's only fair that visitors pay a small share for the attractions they enjoy.

Because a sales tax is spread more evenly to everyone, including those who don't live here, it's unlikely the additional sales tax would outweigh your property tax savings. You would save $165 in property taxes for a home valued at $150,000. You would have to spend $16,500 a year on taxable goods and services - groceries and other tax-exempt purchases don't count - to equal those savings. If your home is worth twice that, and you spend less than $33,000 per year on taxable items, your overall tax burden would also be less than it is today. In this way, the sales tax can be a solution, not a problem.

We've seen examples of this in other cities as well. Chicago and Minneapolis both have higher sales tax rates, but their property taxes are lower. Those cities recognize that sales taxes provide a way to provide more funding without increasing the burden on local residents.

The County Board approved the referendum by a veto-proof majority after lack of dedicated funding for transit was identified as an urgent concern in a report issued by the Wisconsin Public Policy Forum last month, primarily due to escalating fares, route cuts and declining ridership. Similarly, parks are also suffering, with deferred maintenance costs in excess of $300 million. The Milwaukee County Parks Advisory Commission voted unanimously to recommend a referendum on preserving parks funding while also providing property tax relief. It is also a priority to include emergency medical services and paramedics funding, which are major quality of life services important to county residents.

The yes-or-no referendum question set to appear on the Nov. 4 ballot reads, "Shall the State of Wisconsin grant Milwaukee County the authority to provide property tax relief of at least sixty-seven million dollars ($67 million) by levying a one percent county use and sales tax to be used to remove the following three items from the property tax levy: parks, recreation and culture, transit and emergency medical services (EMS)?"

Do voters want to pay one cent more in sales tax to significantly lower their property taxes and save parks and transit from extinction? You decide.

Lee Holloway is chairman of the Milwaukee County Board of Supervisors.

This week's report from the Public Policy Forum confirms what I and other Milwaukee County Board members have known for some time: route cutbacks and fare increases are causing major damage to mass transit in Milwaukee County.

I am glad that Public Policy Forum president Rob Henken is leading a team of professionals in providing detailed and thorough reports on issues of importance to the community, continuing the exemplary work he performed as research director for the Milwaukee County Board of Supervisors.

Preserving an extensive mass transit system is one of my top priorities as chairman of the board. Transit is not just a human services issue. It is also a main ingredient in building our economic infrastructure. Because of limited federal and state support for mass transit, I am going to arrange to meet with key members of the business community to assist the county in developing progressive ways to overcome these funding challenges.

There is no question that we must alter the path our transit system is on. Using property tax dollars to fund the local portion of mass transit funding is archaic. The time for change is now. All options are on the table as we consider ways to modernize transit funding and improve the service provided to people from all walks of life.

A resolution passed by the county board last year affirms Milwaukee County's top transit priority is identifying a non-property tax dedicated funding alternative for the ongoing operation of the existing rubber tire bus service.

A dedicated source of funding means reducing the burden on property taxpayers permanently. The stabilization of the mass transit system in Milwaukee County is dependent upon it being removed from the property tax.

The Milwaukee County Transit System provides an extensive route network that is easily accessible to nearly all county residents. It is imperative that we fulfill the needs of low-income and minority residents in our community. We must not leave the riders and employers who depend on this service behind.

Lee Holloway is chairman of the Milwaukee County Board of Supervisors. To view the Milwaukee Public Policy Forum's new analysis, "Milwaukee County's Transit Crisis: How Did We Get Here And What Do We Do Now?" click here.

Editor's note: Milwaukee County Board Chairman Lee Holloway, along with Supervisors John Weishan Jr. and Gerry Broderick, wrote the following joint statement in response to the County Executive Scott Walker's decision to veto an advisory referendum on whether to enact a 1-percent sales tax dedicated to support property tax relief; Milwaukee County parks, recreation and culture programs and services; transit services; and public safety. The Milwaukee County Board of Supervisors will consider an override of Walker's veto at its next meeting, Thursday, Sept. 27, at 9:30 a.m. in room 200 of the Milwaukee County Courthouse.

A large majority of the County Board approved putting this issue on the Feb. 19, 2008, ballot. We are extremely disappointed that County Executive Scott Walker has once again prevented the public from expressing their opinion on this important issue.

This referendum is similar in spirit to the taxpayers bill of rights, championed by Republicans in the State Legislature, which would have included a referendum on any tax increase at the State level.

The voters should decide whether they want to decrease their overall tax burden in Milwaukee County. This sales tax referendum would let Milwaukee County voters decide whether to collect more revenue from non-county residents who visit Milwaukee County’s attractions, but don’t pay property taxes. We question whether the county executive is really representing the interests of people who actually live in Milwaukee County.

Perhaps that’s why he chose to have (Tuesday's) news conference at a Home Depot store located on the Milwaukee-Waukesha County border.

With this veto, the county executive is overriding the voice of the people. Whether they want to vote in favor of this proposal or against it, the county executive is barring them the opportunity to do so.

We would prefer that the people decide, rather than one arbitrary person.

I'd like to begin by thanking Small Business Times for the opportunity to share with their readers my passion for transit services in Milwaukee County. Whether it's getting to work, school, church or shopping, we provide an extensive route network that is easily accessible to county residents from all walks of life.
But mass transit is facing challenges. Due to higher fuel prices and other increased costs, we've been forced to raise fares and cut routes. This trend underscores the need for a dedicated source of funding to stabilize the financial support for this vital service.
I'm particularly disappointed the Regional Transit Authority (RTA) is ignoring our needs. Last month, the RTA chose to place mass transit on the back burner, while simultaneously approving a tax increase to fund commuter rail.
Milwaukee Mayor Tom Barrett and County Executive Scott Walker directed their representatives on the RTA to vote for a $13 fee increase - amounting to a 650-percent tax increase - on car rentals to pay for the proposed Kenosha-Racine-Milwaukee (KRM) commuter rail line.
Barrett and Walker are placing a higher priority on the KRM line, while ignoring Milwaukee County's existing mass transit system.
The entire tax increase on car rentals would fund KRM. It's frustrating that not a cent would go to Milwaukee County Transit, despite Milwaukee County generating the vast majority of collections from the rental car tax.
We need to encourage both Mayor Barrett and County Executive Walker to realize the importance of identifying a dedicated funding source for the bus system.
The ultimate goal here is to reduce the burden on Milwaukee County property taxpayers by finding a dedicated source of transit funding. Taking transit funding off the backs of Milwaukee County property taxpayers will lead to tax relief for both city and suburban residents in Milwaukee County. By creating a dedicated funding source for transit, the owner of a $150,000 home in the City of Milwaukee would pay approximately $100 less per year in property taxes.
If we look at a dedicated funding source for transit, the effects on the property taxpayer are huge. One method of accomplishing this is through a sales tax increase. With anywhere from 20 to 40 percent of sales tax collections being paid by visitors to Milwaukee County, a substantial portion of our taxes can be shifted to people who use our infrastructure, but don't pay Milwaukee County property taxes. That's true relief for property taxpayers in Milwaukee County.
County Executive Walker claims the majority of county residents do not want a sales tax increase to pay for vital services like transit, parks, arts and culture. I'm personally not so sure. If the public indeed does not want an increase in the sales tax, why not have a referendum to definitively prove it? The fact that Walker continues to resist a referendum on this matter while supporting referenda for other funding policies (such as large, new capital projects) tells me he is not interested in hearing the true desires of the constituents he serves.
It may be that he's concerned that voters actually DO support a modest increase in the sales tax to pay for services they value deeply and to reduce their property taxes.
As you can clearly see, a sales tax is one viable option. But, I certainly encourage all elected officials in Milwaukee County to bring forward other potential dedicated funding sources that would provide a truly stable means of mass transit funding.
Several of my colleagues on the Milwaukee County Board and the Milwaukee Common Council are working as a team to stress the importance of identifying this dedicated funding source, be it a sales tax or other alternative, to preserve our existing transportation network in Milwaukee County. 

Sincerely,

Lee Holloway, chairman of the Milwaukee County Board of Supervisors

Editor's note: The Milwaukee Biz Blog is featuring a variety of viewpoints on the future of southeastern Wisconsin's transit infrastructure this week.