Milwaukee Biz Blog

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.