RTA Vote 110208

The SE Wisconsin Regional Transit Authority (RTA) steps up to make historic vote
in favor of dedicated funding for buses and KRM Commuter Rail

After two years of discussion and study, the Southeastern Wisconsin Regional Transit Authority voted 6-1 to support jobs and economic growth by recommending up to a 0.5% sales tax to provide an adequate, stable funding source for local transit systems, and regional transit connections such including KRM Commuter Rail, and removing existing transit costs from the property tax, providing much needed property tax relief.

Key Transit Points
A permanent regional transit authority with a dedicated funding source will improve and enhance our
current transit systems and create a dynamic, multimodal network in southeast Wisconsin that will support:

Connecting People to Jobs

Transit cuts are harming accessibility to jobs. Between 2001 and 2007 in Milwaukee and Waukesha counties alone, 40,500 jobs became inaccessible transit due to service cuts. The total is projected to exceed 100,000 by 2010 unless a dedicated funding source is found.
An adequately funded regional transit system can efficiently and reliably link workers to jobs, helping to reduce poverty and unemployment and their significant costs to society.
KRM commuter rail would connect workers to nearly 1 million jobs within 1 mile of stations and employers to over 325,000 in workforce.

Economic Growth

We’re falling behind. Other regions in the U.S. have invested in transit and are reaping the rewards while we are falling further behind. Transit is a vital infrastructure component that builds the local and regional economy, returning many times the original investment. Our transit systems must be brought into the 21st century.
Transit is a top attractor for businesses and the talent that they require to be successful. We need to help assure a talented workforce and reverse our brain drain by investing in transit to build a globally competitive regional economy.
Transit enhancements will strengthen physical bi-state linkages between the metro Milwaukee and metro Chicago economies. The Kenosha-Racine-Milwaukee Commuter Rail (KRM) line would link a diverse high density economic corridor from Milwaukee to Chicago. It is projected to support the creation of up to 71,000 transit accessible jobs and increased tax base of $7.8 billion in property value through development around stations.
For every dollar invested in transit, over $4.50 is gained in returns to the community.

Sustainability & Efficiency

Dedicated funding will support investments such as KRM Commuter Rail that fill major transportation system gaps using existing right-of-way by linking and enhancing densely populated lakeshore corridor and urban transit systems that currently have few connections.
Transit investments can catalyze sustainability and a green economy, while saving money for and families by reducing travel costs. People need alternatives to the high cost of commuting: 18% - 42% of household income is for transportation. Transit can reduce household commuting costs by up to 65%, allowing saving for wealth building investments such as home purchase or education that stabilize families and neighborhoods.

Action Needed: Dedicated Funding

We need a stable, dedicated funding source to provide enhanced local and regional transit service, stabilize existing bus systems, and to receive needed federal infrastructure dollars. A sensible funding source has been recommended; it now needs approval from the state Legislature.

URGENT: Legislative Action Required

If no legislative action is taken, the SE Wisconsin RTA will dissolve in 2009 and with it the best opportunity to gain dedicated transit funding and regional coordination.
Without a dedicated funding source, existing transit systems will face severe service reductions in 2010 and KRM Commuter Rail and all their economic benefits will not become a reality.

Main points of the RTA plan

Provides the needed dedicated funding to maintain and expand local transit systems and Kenosha-Racine-Milwaukee Commuter Rail (KRM), with up to 0.5% sales tax. Racine and Kenosha would need less than the 0.5%.
Transit costs would come off the municipal property tax, saving the average homeowner $66 a year.
Maintains local control over service plan and budget: Local elected officials would appoint a group to develop a transit service plan and budget. The local elected officials would approve the proposal, indicating the amount of local investment required. The RTA would also approve the plan. The RTA would then provide the funding to implement the plan, and would contract with the transit providers for the transit service.
All funds raised in each urbanized area or county would stay in the area.
Intended to pay for maintainance and expansion of current transit systems, and service needed between transit systems, including KRM.
The RTA board would not be empowered to raise additional revenue beyond that in the enabling legislation. They must make wise use of the funds.
Racine geographic area would include the urbanized area east of I-94.

Why property tax relief and invest in transit with a sale tax?

It provides a critically needed dedicated funding source that is stable and adequate.
It grows with the economy and inflation.
Shares costs with visitors that benefit from the urban infrastructure. 25-33% of revenues generated from a sales tax in SE Wisconsin come from visitors to the area. With the current funding source for transit systems, the property tax, urban families and businesses bear all of the costs.
It aligns our taxes better: property taxes are high in WI and our sales taxes are low. By removing transit from property tax and instituting a sales tax, we can begin to reach a better balance that allows us to be more competitive. Our neighboring states have higher sales taxes than we do by far.
Richard Longworth author of Caught in the Middle: America’s Heartland in the Age of Globalism. and senior fellow at the Chicago Council on Global Affairs, states that Investments in infrastructure are far more important than a low sales tax in attracting jobs and businesses. An integrated, regional, multi-modal transportation system is a deciding factor for businesses because it helps access and expand a key business asset, their workforce.

SE Wisconsin Regional Transit Authority

The Wisconsin state legislature and the governor formed the Southeast Wisconsin Regional Transit Authority (RTA) in 2005 to serve Kenosha, Racine, and Milwaukee counties in recommending a funding source for KRM and local transit systems, and a framework for regional transit operations. SE Wisconsin Regional Transit Authority