Job creation and economic growth are focus of

Historic RTA Bill

Update Feb. 8:  Companion Assembly and Senate bills have been introduced: AB-723 and SB-511

Timeline for legisative action: February-April 22

See 1-page summary

January 19, 2010

Business, labor, and elected leaders rally support

Regional Transit and Jobs Fact Sheet

Legislative Reference Bureau summary

On Tuesday a coalition of visionary SE Wisconsin legislators took a giant step closer to gaining a major job creation and economic development tool when they introduced the Regional Transit and Jobs Investment Act. Public support followed immediately as Governor Doyle announced the bill surrounded by area elected and labor leaders, and by many of the state's top CEOs who clearly stated the neccessity and urgency of passing the bill in early 2010. See more.

The proposal, developed by the legislators with Governor Jim Doyle, allows local governments to choose to make mass transit service improvements and creates a pathway to additional regional transit cooperation and connectivity.  The bill provides the funding and regional framework to integrate buses and KRM Commuter Rail, preserve and enhance bus systems, and keep the KRM project moving ahead. It also calls for local decision-making and property tax relief.

“I am extremely happy that we have been able to work together to create legislation that will save our bus system in Milwaukee and create jobs and improve our business climate in Southeastern Wisconsin,” Senator Lena Taylor commented.  “In addition, our commitment to direct property tax relief continues in this bill by removing transit from the tax levy.”   

Senator John Lehman commented, “This bill provides a pathway to more economic development and new job creation with better bus and rail transit service, while also safeguarding the ability of our communities to decide for themselves how they want to support mass transit service. For example citizen approval by referendum is required before a sales tax could be used.” 

A study on the economic impact of the KRM project indicates its construction would generate nearly 4,000 jobs and have a $560 million impact on the local economy.  And leaders of many of the largest employers in Southeastern Wisconsin, including Northwestern Mutual Life, SC Johnson, Roundy’s, Bucyrus, AT&T and Johnson Controls, have cited improved mass transit service as critical to their successful operation and new job creation efforts.   

    Among the highlights of the bill are provisions:

  • Authorizing creation of an Interim Regional Transit Authority (IRTA) in Milwaukee County funded by a 0.5% sales tax approved by county voters in November 2008; 
  • Allowing local governments in Racine, Kenosha, Waukesha, Washington and Ozaukee to vote to form their own IRTAs; 
  • Allowing a non-Milwaukee County IRTA, with the agreement of all the creating municipal governments, to fund transit using a vehicle registration fee, the property tax or hotel tax revenue.  A local sales tax could be used only if it is voted on and approved by the governing bodies of each community forming an IRTA, the newly created IRTA board approves its use and the voters within the IRTA approve the use of the sales tax for transit in a referendum;
  • Requiring 100% of local transit costs to be removed from the property tax if a sales tax is used as the funding mechanism;
  • Providing a mechanism for local IRTAs to receive additional state incentive funding for mass transit;
  • Regionalizing mass transit service when three IRTAs meet expanded service and increased funding targets by placing their services under the umbrella of a regional Southeast Wisconsin Regional Transit Authority (SERTA);
  • Integrating the proposed KRM commuter rail line with local bus service through SERTA.    

Representative Tamara Grigsby said, “Southeast Wisconsin needs a viable transit solution.  Milwaukee County is in dire need of transit revitalization and the KRM line is essential to the future economic development of the entire region. By establishing a regional transit system, this legislation will create and maintain jobs, help fight poverty, and provide much needed property tax relief for the residents of Milwaukee County."     

In addition, the bill gives a boost to the application for federal aid for construction of the KRM commuter rail line.  Feedback from federal officials indicates that the chances of receiving significant federal assistance for the project through the competitive “New Starts” grant program are greatly improved with a stronger Milwaukee County bus system and additional regional cooperation and connectivity between transit modes.

Representative Bob Turner of Racine commented, “Reaching a compromise on how to build a more efficient, regional transit was not easy.  But we’re offering a solution to help us create jobs, have more transit choices and let communities decide when and how to move ahead.”

"There is a broad-based coalition in support of our efforts, from captains of industry to environmentalists to labor leaders, who all feel our future growth and well-being as a community will benefit from an integrated transportation system," concluded bill author Representative Peter Barca.