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Transit gets a Green Light from the Legislature

RTAs, Support for Buses, and KRM Commuter Rail Clear a Pivotal Hurdle

The Legislature has given the green light to far-reaching transit policies that are urgently needed to save and enhance our transit systems, and implement KRM Commuter Rail so we can grow jobs, and spark economic growth in SE Wisconsin.

Legislators worked hard to keep a solution moving forward that will give local communities the means to save their financially troubled transit systems and build a vibrant regional transit network including RTAs and KRM Commuter Rail. Although the plan is not perfect it gives us a foundation to build on as we carry the torch and look to the next immediate critical milestones in this historic journey. To add to our good news, other communities in Wisconsin will also be able to create RTAs and invest in transit, thereby initiating a statewide web of transit accessibility. See below for details of the legislature's proposed transit policies.

There is just one more step to go in the budget process before this needed legislative action is final.

The Governor is expected to make his line item vetoes and then sign the budget by Wednesday, June 30th. As the details of the plan and upcoming critical milestones are clarified we will learn more about the next steps. The focus will turn to the local communities where local governing bodies must vote to enact what the Legislature and Governor have enabled.

Thanks to the remarkable abundance and diversuty transit champions and advocates!

Reaching this accomplishment has taken an extraordinary amount of effort, energy, and sheer will by the most diverse and broad coalition that this region has seen in decades. Please remember to thank the many legislative, business, and community champions who have worked so hard to make transit a top priority and keep these initiatives moving forward thoroughout this process and an incredibly tough budget.

Stay tuned for next steps!

The Transit Package Approved by the Legislature

SNAPSHOT
Creation of South-Eastern Regional Transit Authority (SERTA)

• Manage KRM Commuter Rail and provide the local share of funding
• Transit systems in Racine and Kenosha could vote by governing body to contract with SERTA to provide transit service.
• SERTA would be fully vested in a 9 member body. A quorum and any action taken would require a majority of members.
• Funded by an $18 car rental fee, $14 for KRM Commuter Rail, $2 for administration of SERTA, $1 for Racine’s bus system and $1 for Kenosha Area Transit. City of Racine and City of Kenosha must provide a local match to receive these funds.
• Other

Creation of Milwaukee Transit Authority (MTA)

• Seven member body
• Funded by 0.65% sales tax  
  • 0.5% is for transit in Milwaukee County
  • 0.15% for Milwaukee municipalities to pay for police, fire, and emergency medical services
• Milwaukee County Board would vote to become a member of MTA and would then be authorized to impose a sales tax after passing an ordinance.
• The MTA could contract with the Milwaukee County Board to provide transit service through a vote of the County Board.
   

MORE DETAILS
MILWAUKEE TRANSIT AUTHORITY (MTA)

• Milwaukee County would not be a member of hte MTA unless te Milwaukee County Board adopts a resolution authoritzing their membership.
• The County Board would have the authority to adopt a resolution imposing a 0.5% sales tax for transit in Milwaukee County if:
  • The County Board votes to become a member of the MTA .
  • The County Board contracts with MTA to provide transit service in Milwaukee County.
  • If it imposes the sales tax, require the County Board must provide the MTA with revenuees from those taxes.
• If the taxes are imposed, the County would not be allowed to levy property taxes for transit purposes. The amount of the property tax reduction must be shown on each property tax bill.
• As even member Board would be appointed for 2-year terms: three appointed by County board chair, two appointed by the Mayor, and two appointed by the Governor. The city and county appointees must be elected officials representing the city and county respectively. A majority of the Board constitutes a quorum.
• If the County board votes to impose a sales tax for transit, they would also be authorized to impose 0.15% sales tax that would be dispersed among Milwaukee County municipalities following a prorated formula based on the number of police and fire employees within each municipality.
• Prevailing wage requirements would apply to public works contracts.

SOUTH-EASTERN REGIONAL TRANSIT AUTHORITY (SERTA)

• Specified as the only entity in Milwaukee, Racine and Kenosha that can apply for funding from the FTA for KRM Commuter Rail.
• Governance structure is as follows: Two appointees of the Milwaukee County Board; Two appointees of the Milwaukee Mayor; One appointee of the Kenosha County Board; One appointee of the Kenosha Mayor; One appointee of the Racine County Board; One appointee of the Racine Mayor; and One appointees of the Governor.
• SERTA would be funded by an $18 rental car fee dispersed in the following manner:
• Up to $2 will fund SERTA operations
• $1 will go to the City of Racine for the BUS and $1 will go to the City of Kenosha for Kenosha Area Transit; both the City of Racine and the City of Kenosha would be required to generate new funds to match revenues generated by the $1 car rental tax, to support local transit;
• Remainder to fund KRM commuter rail
• In order for municipalities in Racine and Kenosha Counties, outside of the cities of Racine and Kenosha to receive transit stops, they must provide a sustainable mechanism to generate new funding to contribute to their respective transit system.  
• Any transit system in Racine or Kenosha Counties could with SERTA to provide transit services after a affirmative by vote of the municipal governing body.
• Transit systems would be required to share their annual and long-range plans with SERTA.
• A KRM stop must be located in the City of Milwaukee at the intersection of Lincoln Avenue and Bay Street.  
• As proposed by the Governor, the SERTA would provide $100 million in bonding authority.
• Prevailing wage requirements would apply to public works contracts.