RACINE, TAX HAVEN, SHOULD PAY FAIR SHARE OF KRM

By Michael Horne


On Tuesday, February 7th, the Common Council of the City of Milwaukee handed Mayor Barrett his legislative head on a plate. (A platter would have been too fancy.) By a veto-proof 11-4 vote, the council rejected Barrett's endorsement of a $13 tax increase on rental cars to fund the proposed Kenosha Racine Milwaukee commuter rail line. Eleven of the voters were concerned that Milwaukee County Transit System funding would suffer at the expense of the commuter rail under the proposed package. The other 4 (Alds. Dudzik, Puente, Bohl and Zielinski) are just plain against rail. Viewed in this light, Barrett didn't get a single vote. Characteristically, he said he is considering vetoing the legislation.
This prompted a polite reply from council president Willie Hines, who told Sean Ryan in The Daily Reporter, "There are 11 votes -- as far as I'm concerned, I think it is a futile act." The mayor said he will unveil his own transportation plans one of these days. There was not much about the story in the Journal Sentinel since reporter Larry Sandler didn't show up until nearly the end of the meeting. Nowhere have I seen an analysis of what I find to be a key issue. (See below.)

RACINE: TAX HAVEN

Isn't it time the "Queen City of the Inland Seas" pays its fair share?
Unlike Kenosha County and Milwaukee County, (and 58 others) Racine County never adopted a .5% county Sales and Use tax. The way I look at it, that's 50 cents per $100 that Racine has left on the table to devote toward the rail line which, despite its name, is all about Racine, and very little about Milwaukee or Kenosha. The latter two cities, for example, already have rail connections to Chicago. Racine does not.
Prior to the rental vehicle tax increase proposal, a suggestion was made that an increase in the sales tax might be a good way to fund the proposed Kenosha Racine Milwaukee [KRM] rail line. This was way back in December, and the plan died very quickly, as plans do all the time around here, except for when they die very slowly.
The commuter rail will benefit S. C. Johnson & Son, Inc., according to a 2004 speech by Jane Hutterly, Senior Vice President of Worldwide Corporate Affairs. She admitted that "quality of life is a basic requirement to attracting and keeping talented people in the new economy. It's a new aspect of connectedness. It's also something companies study when looking to expand or relocate."
S. C. Johnson, being located in Nowhere, finds it hard to draw the necessary talent to grow, unlike its competitors which are either in metropolitan areas, or near rail lines.
In her money quote she said, "My company believes Southeastern Wisconsin needs a commuter rail that goes not just from Chicago to Kenosha but on to Racine and Milwaukee."
Perhaps her company and her county could pitch in to provide this economic benefit, rather than shifting the burden to Milwaukee. This is especially so since Milwaukee's general sales tax is 5.6% (5% state, .5% county, .1% stadium)*; Kenosha's is 5.5% (5% state, .5% county); yet Racine's tax is only 5.1% (5% state, .1% stadium.).
[*Some purchases in Milwaukee County are subject to an additional .25% exposition center tax.]
Any equitable proposal for a KRM funding mechanism should include consideration of a sales and use tax for Racine County, which wants all of the benefits of a rail system without the expense. For this we were about to sacrifice our Milwaukee County Bus system? Good call, aldermen.
--Michael Horne

PUBLIC INFORMATION MEETING SET FOR TONIGHT
There will be a public information meeting about the proposed KRM line tonight, Thursday, February 8th, 2007 at the Harbor Lights Room of the Downtown Transit Center, 900 E. Michigan St. from 5:30 to 8 p.m. There will be presentations at 6 p.m. and at 7 p.m. with time for public comment. It will be interesting to see if the issue of the Racine County Sales and Use Tax will be raised. -- Horne