After spending months trying to rectify the state’s transportation budget, the Joint Finance Committee advanced the proposal late Tuesday, but not before restricting what the city of Milwaukee can spend on the downtown streetcar project.
The committee voted 12-4 along party lines to pass a GOP omnibus Transportation Motion to adopt Governor Scott Walker’s recommendations for increasing funding to the General Transportation Aids program.
The vote included a recommendation to restrict Milwaukee’s use of state transit money to operate or build the streetcar line. The city also cannot use any tax incremental financing district funds to operate the streetcar when it is complete.
The city is currently reviewing the proposal.
“Despite the fact that the state is not funding the Milwaukee Streetcar, there are members of the Legislature who don’t like the project,” said a statement released by Milwaukee Mayor Tom Barrett’s office. “We’ve asked the city attorney to review the motion that the Joint Committee on Finance passed last night and once we have that information we will be in a better position to plan and move forward.”
State Senator Alberta Darling, R-River Hills, who co-chairs the Joint Finance Committee, could not be reached for comment Wednesday.
The Common Council approved the $128 million downtown streetcar project in February 2015. Construction on the main line of the downtown Milwaukee streetcar began in April with the main downtown line expected to be operational in 2018. About $69 million of the cost will be paid for with federal funds and $59 million with city funds from tax increment financing districts.
But the city has not indicated any plans to use TIF funds for operations.
According to The Milwaukee Streetcar website, a federal Congestion Mitigation and Air Quality (CMAQ) grant has been secured which will pay for approximately 65 percent of the first 18 months of operating costs with the possibility of an extension for an additional 18 months. The introductory fare of $1 per ride plus sponsorships/advertising during the first three years will cover the operational costs not covered by the grant, according to the site.
The city expects the phase one route will generate approximately 1,850 rides per day and over 595,000 rides per year in the first full year of operations in 2019.
Operations for year four and beyond will be funded through a combination of fare box revenue, advertising, corporate sponsorships, federal funding opportunities, operating agreements with partners and the City of Milwaukee’s parking fund, if needed, according to the site.
