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.
