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National Expert, Leaders Urge Regional Transit Action

September 21, 2009

Community Development Summit draws dire warnings and picture of
regional transit as crucial tool for employment and business growth,
lowering foreclosure risk, and securing federal funds.

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Listen to WUWM interview with Scott Bernstein on Lake Effect

See news:

Potential driver behind declining property values
Brian Moon, Wisconsin Radio Network
September 18, 2009

Local leaders urged to invest in transit
Paul Sloth, Journal Times
September 18, 2009

Rallying support for rail service
Summit cites need for system
Joe Potente, Kenosha News
September 18, 2009

Southeastern Wisconsin must get its regional mass transit act together now or risk losing out in the competitive scramble for federal infrastructure dollars while continuing to slide farther behind other regions ranked by economic development indicators for attracting jobs, talent, and outside investment.

That was the sobering message delivered at the 8th Annual Community Development Summit in Milwaukee recently by a national expert, guest panelists and other speakers including Milwaukee Mayor Tom Barrett and Michael Morgan, Governor Jim Doyle’s secretary of administration.

“Four hundred regions are vying for money. It’s time to start acting like a region because you can’t afford not to,” said Scott Bernstein, president of the Chicago-based Center for Neighborhood Technology (CNT), the event’s keynote speaker. In all, a crowd of 200 elected officials, business executives, and others attended the summit at the Italian American Community Center in Milwaukee last week.

Bernstein said a viable regional transit network is of utmost importance for growing jobs, reducing cost of living and foreclosure risk, and promoting a thriving regional economy. A series of maps linking housing and transportation expenses illustrates shrinking housing affordability. Click here for maps.

CNT research shows that between 1999 and 2007 in SE Wisconsin income gains were wiped out by the increases in fuel and transportation costs. The lack of affordable transportation choices has added to foreclosure pressures, and created a “leaky economy,” bleeding billions of dollars from the economy.

Greater Milwaukee Committee President Julia Taylor said improving the regional transportation network is a need “we can’t afford to ignore” any longer. She urged “a call to action” to improve the region’s standing. Bernstein reemphasized the reality that an integrated Regional Transit Authority is needed to coordinate systems across municipal boundaries. Areas that are successful in gaining federal investments are well organized regionally and are viewed as a much more solid investment not only in the federal review process but to investors as well.

Barrett and Morgan both voiced similar views along with strong support for improved transit and a Regional Transit Authority. They said a regional approach is essential to creating and executing a broader transportation network with sufficient service and funding. Morgan stated, “A strong SE Wisconsin strengthens the whole state. Transit is high on the Governor’s list to get done.”

Bernstein further cited a range of research data that identified poor and declining regional transit service as a key contributor to the region’s low status when compared to other places to live and do business. He said Moody's Investors Service ranks the region 336th on a list of 392 areas. Businesses and individuals consider good public transportation and access to quality of life amenities in the top determining factors when deciding where they will locate.

Bernstein emphasized it’s not too late to take action. He then joined a seven-member reaction panel, which, despite differing views on transportation and economic development issues, unanimously agreed that the region must move quickly and decisively to:

 

Panelists share stories, urge action

“We can argue [our options], but you can’t argue the need to increase public Transit,” said Edward Zore, chairman and CEO of Northwestern Mutual. The company is one of the largest employers in the area with 5000 workers at its downtown Milwaukee office complex and Franklin campus. Zore said eleven percent of his workers rely on public transit and complained that the company must run its own employee shuttle service between its two sites because Milwaukee County Transit System service is inadequate. Bridging the transportation gap with company money adds to the cost of doing business in the area, a detriment to attracting new businesses.

Another panelist with business locations just outside Milwaukee County said he could add and train unskilled workers who can’t afford a car, but the options simply don’t exist for them to get to the jobs. “Unless you have a car, you can’t get there from here,” said Eric Isbister, CEO of General MetalWorks Corp, a 65-employee metal fabrication company with plants in Slinger and Mequon.

Jeff Van Koningsveld, president of the IBEW Local 430 in Racine, added that “for Racine job growth has become a critically urgent need. Transit investments create jobs.” He added that the startup of KRM Commuter Rail would create 4000 jobs, and the development along the corridor would create 17,500 jobs. “Everyone will benefit through tourism and sales as businesses and cultural destinations open up to nearly 2 million people that live near transit stations in the Milwaukee-Chicago corridor.”

Deborah Blanks, CEO of the Milwaukee-based Social Development Commission, responded to a question about the fiscal reality of government budgets saying, “If you want thousands of people in the inner city to work and contribute to the economy they need better transit. People are desperate for better transportation. The fiscal reality is all of the dollars that we are losing. We can’t attract businesses and grow jobs, people can’t get to the jobs and keep the jobs and contribute to our community.”

Other panelists were Wallace White, president of the African American Chamber of Commerce; and Karl Ostby, chairman of the temporary Southeastern Wisconsin Regional Transit Authority.

Current efforts to shore up transit and commuter options include gaining a dedicated funding source for existing bus systems, and moving forward with the Kenosha-Racine-Milwaukee commuter rail. The need for dedicated funding for transit is important throughout the region, and especially in Milwaukee County where increased fares and route reductions have hit the community hard. Additional service cuts are anticipated in 2010 with more cuts expected in subsequent years under current funding trends.

Taylor emphasized the immediate need to establish dedicated transit funding and a regional authority. “We are one of only two areas where transit is funded by the property tax. The other is Indianapolis.” Taylor noted that  property tax does not grow to meet increasing costs, resulting in inadequate and unstable funding for transit programs.  “By fixing this fundametal flaw this year we can address our challenges and build prosperity in our communities.”

The event was moderated by Steve Jagler, executive editor of BizTimes Milwaukee. Sponsors included the Urban Economic Development Corporation of Wisconsin, the Greater Milwaukee Committee, and the City of Milwaukee.

About Scott Bernstein

Scott Bernstein is President of the Center for Neighborhood Technology (CNT), an urban sustainability innovations laboratory which develops resources and systems to promote healthy, sustainable communities by helping local leaders understand and use their hidden assets; and publisher Creating and Capturing Value in Mass Transit: a Best PracticesWorkshop. He studied at Northwestern University, and taught at UCLA. He co-founded the Surface Transportation Policy Partnership, a national coalition which shifted federal policy toward greater local control and currently serves as Chairman. He co-founded the Center for Transit Oriented Development. Click here for more about CNT.