1/10/2007
New Transit Tax coming your way
Milwaukee and the Fox Valley in a transit mess together? Well, Milwaukee is struggling with how to pay for an expanded transit system – a new train line bringing folks from Kenosha and points north, to downtown Milwaukee. The most prominent proposal to fund this behemoth project is to ask for an increase in the county sales tax in Racine, Kenosha and Milwaukee counties.
The argument is that tourists (Chicagoans and other Illinoisans included) can help pay for a new Regional Transit Authority (RTA). The opposition (including Milw. Co. Exec. Scott Walker and Republican lawmakers from SE Wisconsin) says it’s a new tax and they won’t support it. I think a Milwaukee-Kenosha commuter line would be great – but how many millions of dollars great? We often ride the Metra from Kenosha south to “the big city” for a day of shopping or parade-going or museum snooping. The Kenosha-to-Chicago train is usually quite full (including lots of our sailors from Great Lakes Naval Station), but the economics of it aren’t good. Like all public transit these days, it surely doesn’t support itself. (See news of the just-released study on economic impact.)
Be that as it may, we’ve got our own fish to fry right here in the Fox Valley. In some way, shape or form, a Transit Tax is coming.
Ok, this is pretty dry stuff. Grab a frappuccino or other such mind stimulant and I’ll try to make it short, though not so sweet. Valley Transit is heavily subsidized with government funds. (Yes Virginia, it’s really true…..) Fares cover less than 15% of the system’s expenses. Local, state and federal funds make up the rest. Imagine that. Every possible tax pocket you contribute out of, they’re getting some of it.
Now, Valley Transit is owned by the City of Appleton, which charges participating municipalities for essentially their share of route usage. That ownership model is a-changin’ for a couple of reasons.
Many believe a regional ownership structure would be more “fair”, allowing meaningful input and ownership by all municipalities. In addition – and this is serious – sometime after 2010, the Fox Cities Urbanized Area will reach a population (200,000) that somehow says to the federal government “you’re big enough now; fund your own dang system. No more money from us, so you out there in the hinterlands, go raise your own big bucks.”
So as we speak (so to speak…), a study committee is actively looking at a Regional Transit Authority as a way to solve the funding – and ownership - challenge. The complexities surrounding RTA creation are many and huge. Suffice it to say it could work well as a funding mechanism for what runs pretty nearly as a social service (as opposed to reducing congestion, saving on parking costs, saving on driving costs….)
And here’s the rub. Creating a whole new taxing authority is one more big new way for taxes to be collected and spent. I suppose there’s a minute possibility creation of a RTA could be revenue-neutral, maybe even decrease the taxes per capita used to fund it. The truth is however, it may be hard to hold back a taxing entity with broad, new, regional taxing powers. Got to keep our eye on this over the next couple of years.
If you’re interested in learning more, this time grab a triple frappuccino, then go to this East Central WI Regional Planning Commission web page and scroll down to “Fox Cities Area Regional Transit Authority Study Committee.” You’ll see meeting notices and summary of proceedings listed there. If you have questions about meeting times or locations – or anything else about RTA planning, talk to transportation maven Jason Kakatsch at East Central, (920) 751-4770.
COMMENTS
By Rich Eggleston Think replacement taxes, not new taxes. Think outside the bus.
Regional transportation isn't just about bus systems. It's about finding a way to move people where they need to go and, yes, how to pay for it. If you don't think we're subsidizing highway systems with our income, sales and property tax dollars, you're deluding yourself. Sure, the need is more intense for people who don't drive. But regional transportation authorities can assist in highway development too.
"An increasing number of local or regional transportation authorities are being created as yet another source of funding for local government road and street projects," says the Federal Highway Administration. "Several examples of these local and regional transportation authorities include the Transportation Corridor Authority of Orange County in California, the Toll Roads Partnership II (for the Dulles Toll Road Extension or "Greenway" ) in Virginia, and the Regional Street and Road Commission in Nevada."
Some areas use regional transportation authorities to finance both road improvements and transit. El Paso County and the Cities of Colorado Springs, Manitou Springs and the town of Green Mountain Falls jointly operate a regional bus service and perform highway maintenance in the Pikes Peak region in Colorado to improve the quality of life and the economy of their region.
Wisconsin is the only Midwestern state that lacks statewide enabling authority for local governments to create regional transportation authorities.
Regional transportation is wildly successful and expanding by leaps and bounds in other states. South Florida RTA’s Tri-Rail carries more than 250,745 passengers a month. Metra, Pace and the CTA are rolling out a $57 billion, 30-year list of suburb-to-suburb and Chicago transit projects. There’s a demand from businesses throughout the state: southeastern Wisconsin, the Fox Valley, central Wisconsin, Dane County, Eau Claire and Chippewa counties and elsewhere. The demand is for a regional approach to transportation needs that connects people to jobs, shoppers to shopping opportunities, and visitors to cultural events and tourist attractions. There’s demand from senior citizens for transportation to health care. There’s demand from everyone who doesn’t drive, and from many who do.
It's shortsighted to think we can just let our existing transportation structure do the job for us into the 21st century, especially in an era of high petroleum costs and road construction costs that increase far more than the rate of inflation. Transportation also needs cross municipal and county lines today as it never has before.
Wisconsin communities can either board this train or be left at the station. Flexible enabling legislation will ensure that Wisconsin can make the most use of 21st century transportation alternatives. That's why the Wisconsin Alliance of Cities supports legislation to encourage and enable creation of regional transportation authorities wherever the need arises across Wisconsin, with built-in flexibility in structure, governance and financing to allow for the diversity in regional transportation needs across Wisconsin.
Rich Eggleston is communications and community outreach coordinator for the Wisconsin Alliance of Cities. The Alliance, the League of Wisconsin Municipalities and other groups are working to pass enabling legislation at the state level to allow local governments across the state, not just in southeastern Wisconsin, to meet their regional transportation needs.
Rich Eggleston (Wed Jan 10 09:57:14 2007)
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