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Where Do We Go

From Here?

Wisconsin Transportation
at the Crossroads

2005 Legislative Briefing Book • 1000 Friends of Wisconsin


Place matters.

So does how you get there.

2005 Legislative Briefing Book • 1000 Friends of Wisconsin


W here we choose to live, work, and
play is one of the most important
choices we make. Increasing numbers of
people are considering a broader range of
places to move to, especially those who
make up the future workforce and the next
generation of leaders. Competition between
Transportation choices . . .
cities, regions, and states for human capital
is the name of the game and will be for practical purposes, a fully built-out system of state highway facil-
decades to come. ities. On the downside, consider the following:

• Local governments have been forced to


A city’s, region’s or state’s transportation system is funda- spend a disproportionate amount of revenue
mental to success in this competition. People expect to live in a to simply maintain existing roads—meaning
vibrant community that is convenient and affordable to get that attempts to improve local transportation
around. Commute times are important but so are lively down- systems, where most trips are made, have
towns, bus routes, inter-city rail connections, commuter rail lines, required property tax increases.
urban systems such as streetcars or guided buses, and neighbor-
hoods within walking or biking distance of workplaces, natural • Even as demand increases, transit systems
areas, and social life. have been forced to cut service and raise
fares, instead of expanding service and
Every resident, every business, every government official reducing fares to meet expanding demand—
has a stake in the future of Wisconsin’s transportation system. demand that generates substantial eco-
Without a balanced transportation system that anticipates and nomic, social and environmental returns for
meets the needs of our children’s and grandchildren’s genera- the state.
tions, Wisconsin’s future will not meet our expectations or its
potential. • High return investments such as the devel-
opment of local, commuter, and high speed
Wisconsin has been caught for too long in an undertow of rail have been nearly impossible to move
prioritizing state highways, particularly the expansion of them, forward due to lack of funding or political
above other needs. On the upside, Wisconsin now has, for all commitment.

• Wisconsin’s debt service payments for


highway expansion are skyrocketing—
meaning less funding will be available for
future investments.

The grounds for a major shift in transportation priorities


include not only these mounting problems but also inno-
vative bright spots of opportunity that can be capital-
ized on. In the face of overwhelming political odds over
the last two decades, meaningful steps forward have been
made toward a balanced transportation system that truly
meets the needs of all Wisconsin’s citizens.

. . . in small towns

2
• State residents rank “well-main-
tained roads, highways, and
bridges” and “safe sidewalks and
pedestrian crossings” as top
transportation priorities, while
“reducing commute times” and
“reducing travel times” ranked
lowest. These findings from a
2004 WisDOT survey show sup-
port for a change in transporta-
tion priorities.

. . . and big cities • Growing commitments in the


business, health, environmental
and political communities will
• The state Legislature finally exerted common ensure that our transportation system meets
sense fiscal discipline in its 2003-2004 ses- the mobility needs of Wisconsin’s citizens
sion by passing the 2004 Act 217, banning and businesses by enhancing, rather than
the oft-used practice of enumerating Major degrading, the health of our economy, resi-
Highway Projects, the largest expansion proj- dents, landscapes and communities.
ects, when there is no money to fund them.
Decisions about transportation funding made by the Legis-
• Planning, environmental and/or engineering lature, Governor and officials at the Wisconsin Department of
studies have been completed or are Transportation over the next five years will have profound eco-
underway for high speed rail service from nomic, fiscal, social, and environmental implications for the next
Milwaukee to Madison; commuter rail service half century, if not longer. If leaders do not ensure a decisive break
from Kenosha to Milwaukee; a downtown from the priorities set over the last two decades, Wisconsin will
connector in Milwaukee; and a regional trans- lose an essential competitive advantage.
portation system in Dane County.

The challenge laid out for us is clear:


we must ‘Fix-it-First’ and preserve our
existing investments, as well as diver-
sify our transportation portfolio by
building a “Balanced Transportation
System.” Now is the time for decisive
leadership and action.

3
Fix-it-First
Fix-it-First is a concept with wide applicability. Simply put,
Fix-it-First means making reinvestment in what already exists the
top priority. Expansion, growth, and new purchases come only
after existing infrastructure has been taken care of properly.

Think of the average household and its home. There are


often many improvements the family would like to make: put in a
Jacuzzi, build a rec-room in the basement, redo the kitchen and
so on. However, appliances have to be maintained, plumbing
leaks have to be fixed and shingles need to be replaced. Tough
decisions are constantly made.

When it comes to roads and highways, Fix-it-First means


making sure that maintenance and repair are adequately funded
Maintaining investments before funding expansion. Regular maintenance such as filling pot-
holes, applying protective coatings, and snowplowing all ensure
a longer life span for roads. Similarly, regular repair, more intensive

H
resurfacing, reconditioning, or reconstruction of a roadway ensure
that little problems that can be handled in a cost-effective manner
ighways function best for moving are not neglected and allowed to become expensive major proj-
ects. According to the Transportation Development Association
people between communities. and the Surface Transportation Policy Project, for every $1 invested
Since the interstate system was built in the in maintenance, $4 to $5 of expensive repairs later can be
avoided.
1950’s, however, sprawling development pat-
terns have changed the common usage of Each year, the State of Wisconsin invests more than $1 bil-
lion in our state highways alone—it makes sense to take care of
highways. those investments. Over the last 20 years, Wisconsin has budgeted
for transportation akin to a family that hires a plumber to fix a
Instead of principally serving to move people and com- leaking toilet and asks him to go ahead and put in a Jacuzzi as long
merce between communities in different regions or states, they are as he is in there, never mind the leaking roof.
increasingly used as super-sized local roads—to simply get
around on trips of just a few miles. Yet building highways through The time has come to reprioritize for the long-term viability
neighborhoods and commercial areas to facilitate sprawling of the system and Wisconsin’s fiscal future. The time has come for
development makes about as much sense as using sewer pipes to Fix-it-First budgeting.
drain kitchen sinks. The scale is all wrong. It is unsightly, unhealthy
and, in the end, makes the space unproductive and unlivable.
The following section outlines the historic funding

Unfortunately, as is seen in plans such as the Southeastern of state highways, the debt crisis on the horizon, and
Wisconsin Regional Planning Commission’s (SEWRPC) Regional one of the key factors in both of these problems, pork-
Freeway Plan that calls for 127 miles of freeway expansion in barrel politics.
southeastern Wisconsin, highways are still promoted as solutions
for problems they do not solve. Instead they exacerbate sprawl, Issue 1. Out of Control Spending—The last two
congestion and air pollution. Nonetheless, one positive product decades of highway funding
of the historically overwhelming focus on highway construction is
that for all intents and purposes Wisconsin’s highway system is Issue 2. Pork-Barrel Politics and Fiscal Imprudence—
fully built out. And, many miles of Wisconsin’s highways do Money, the political process, and
exactly what they were originally conceived and designed to highway spending
do—move people between communities. Those valuable invest-
ments must be preserved. The best way to do that is Fix-it-First. Issue 3. Looming Crisis—Mounting highway debt

4
Issue Out-of-Control State Highway Spending
1
Wisconsin’s spending on state highways
is sky-rocketing. Every dollar spent to over-
build highways is a dollar not spent on
growing the economy by building a balanced
transportation system.
Historically, Wisconsin has not employed balanced and
prudent budgeting for state highways and expansion projects
Endless construction
have not had to share the pain in tough fiscal times.

• Funding for repair and maintenance work billion deficit that it had to correct, Mainte-
has not kept pace with funding for expan- nance funding decreased 12.2% from the
sion work—not even close. Between 1990 2001-2003 budget to the 2003-2005 budget
and 2005, spending on Major Highway Pro- and Rehabilitation funding decreased 7.5%.
jects rose 57% above inflation. Incredibly, Major Highway Project funding was only
debt service on revenue bonds to pay for reduced 2.3%.
Major Highway Projects increased 180%.
Meanwhile, spending on Rehabilitation • These spending patterns have led to one of the
projects increased 31%, and spending on highest gas taxes in the country—more than 32
Maintenance decreased 6%. cents a gallon and increasing every year—and
a series of registration fee increases of over
• The most recent state budget slashed main- 200% over the last 25 years.
tenance and repair funding but only cut
expansion project funding slightly. As a result Future state highway plans do not exhibit more prudence or
of the 2003-2005 state budget and the $3.2 better balance.

• In its State Highway Plan 2020,


Increase in State Highway Funding 1990-2005 WisDOT predicts a $5.1 billion
funding shortfall between 2000
Debt Service and 2020 out of the total $20.4
200%
180% billion in planned spending. Of
the $20.4 billion in planned
spending, more than $7 billion
will go to Major Highway Projects.

100%
Major Highway
Projects

Rehabilitation 57%

31%
Maintenance

-6%

5
2003-2005 Budget Change to Major Program

Rehabilitation Major Highway Maintenance


Projects
-0% • In 2003, SEWRPC amended the Regional
Transportation Plan 2020 to include a
-2.3%
-10% $6.25 billion highway plan with 127 miles
-7.5% of freeway expansion. Due to the fact that it
ignores fiscal reality, this plan pits all of the
-15% -12.2% much needed parts of the previous Regional
Transportation Plan against each other
for funding.

• In 1988, 16% of State Highway Program Percent of State Highway Spending on Expansion
spending went to Major Highway Projects. By
2000, that percentage had grown to 23%.
The State Highway Plan 2020 calls for the 35%
percentage to increase to 35%.
30%
23%
• In 1997, SEWRPC published its Regional
Transportation Plan 2020, which included a 20% 16%
balance of local road improvements, com-
muter rail lines, a downtown connector in 10%
Milwaukee, and limited capacity expansion.

1988 2000 2020

✓ Solution:

Wisconsin must adopt a Fix-it-


First policy requiring the state
to fully fund repair and mainte-
nance needs before funding
expansion projects and then
implement that policy in its
budgeting.

6
Issue Pork-Barrel Politics & Fiscal Imprudence
2
Highway expansion projects equal big portation Projects Commission (TPC) recom-
mended for approval every project that has
profits and big campaign contributions—so come to it for consideration except those in
big in fact that perspective has been lost on 1988, 1998 and 2002, when there was insuf-
ficient funding for the projects. In each of
fiscal responsibility and the needs of the those years, however, the Legislature and
people and communities that our transporta- Governor approved the projects anyway. In
the 2003–2005 budget alone, they included
tion system serves. four projects with a projected cost
of $500 million.
Over the last 20 years there has been little to no political
willpower to exert fiscal restraint in highway expansion funding. • The road-building industry has secured a
pipeline of projects to last more than another
• An immense amount of raw political power is decade. Between 1989 and 2003, 32 Major
controlled by the road-building industry. Highway Projects were enumerated, with a
Between 1993 and 2003, the road-building total cost of at least $3.2 billion. Of those 32
industry contributed $1.7 million dollars to projects, ten projects, with an estimated cost
statewide political candidates—40% of the con- of $1.25 billion, were not recommended by
tributions went to the last three Governors. WisDOT, eight of which were not recom-
Additionally, in 2003 alone, the road-builders mended by the TPC either. At least 14 of the
spent over $200,000 on their lobbying efforts. projects are not even under construction at
this point, and the average expected comple-
• The process designed to introduce fiscal tion time for the 18 projects already under
responsibility has resulted in the opposite construction or completed is 13 years from
effect. Since its formation in 1983, the Trans- the time of enumeration.

ELPC

The biggest project: Marquette Interchange

7
• The lack of fiscal restraint has led to hun-
dreds of millions of dollars of wasteful cost
overruns. A 2003 Legislative Audit Bureau Since 1983, the Major Highway Projects
analysis of the Major Highway Projects pro- approval process has included project
gram identified cost overruns of $381 million
on just 7 of those 18 projects already
development by WisDOT, a review and
underway or completed—mostly enumerated recommendation for or against approval
in the early 1990’s. by the Transportation Projects Commis-
Significant movements away from political back-
sion (TPC), and then approval by the Leg-
scratching towards fiscal responsibility have been made that islature and Governor.
can be built upon.

• The Legislative Audit Bureau findings of


wasteful cost overruns resulted in the passage
of the most significant transportation that included increased reporting on Major
reform legislation in recent memory. Joint Highway Projects and removed the Legisla-
Audit Committee co-chairs, Senator Roessler ture’s power to enumerate projects without
and Representative Jeskewitz, introduced leg- TPC approval. Governor Doyle signed Act 217
islation stemming from the audit findings in April 2004.

• More fiscally responsible budgeting is on


“Highway projects blow out budgets” the horizon. As the 2005-2007 budget
—11-26-2003, Milwaukee Journal-Sentinel approaches, WisDOT has indicated that there
are 8 potential Major Highway Projects on the
“Audit raises flags on highway projects” docket. However, at an August 2004 hearing
—11-26-2003, The Daily Reporter of the Joint Legislative Audit Committee fol-
lowing up on Act 217, Secretary Frank
“Legislators, WisDOT must share blame” Busalacchi unequivocally indicated that there
—12-2-2003, Eau Claire Leader Telegram is “no way” the state can afford any of those
projects in the 2005-2007 budget.
“Who’s Minding the Store?”
—11-29-2003 Editorial, Milwaukee Journal-Sentinel

News Coverage of 2003 Audit Report

✓ Solution:

Wisconsin must put fiscal man-


agement before political expedi-
ency and abide by Act 217 by
not enumerating overdesigned
and unaffordable projects.

8
Issue Looming Crisis
3
Wisconsin’s bonding to pay for trans-
portation, particularly highway expansion
projects, has skyrocketed over the last 20
years, leading to a perilous situation in which
the state’s debt service payments are spi-
raling out of control.

Bonding levels for state highways have fluctuated over the A long road ahead
last two decades, but debt service payments have skyrocketed.

• State debt owed by Wisconsin grew from $7.3 of which pays off past Major Highway Pro-
billion in 1992 to $14.9 billion in 2002—12th jects, increased from $44 million to $184 mil-
highest in the nation. Annual interest owed by lion. This increase is more than 180% above
the State of Wisconsin on its debt grew 48% the rate of inflation between 1990 and 2005.
from $499 million to $736.9 million between
1992 and 2002. A large portion of this debt is • Increases to registration fees have been nec-
Department of Transportation debt, mostly essary to pay off state debt. Since 1980, reg-
owed on state highway projects. istration fees, which are used to pay off most
transportation bonding debt service, have
• The amount of money needed each year to increased from $18 to $55 to meet the rising
pay off transportation debt has more than debt costs; further increases are being consid-
tripled in the last 15 years. Between 1990 ered in the 2005-2007 budget as well.
and 2005, the amount of transportation
bonding debt service, the overwhelming bulk • Wisconsin is driving itself into debt to pay for
basic repair needs. In the 2003-2005 budget
bonding was used to pay for repair
projects for the first time—to the
Registration Fees 1980-2005 tune of $483 million over the bien-
$60 nium for Rehabilitation.

$40

$20

1980 1985 1990 1995 2000 2005

9
?
Bonding Debt Service 1990-2005
$200 million

$150 million

$100 million

$50 million

1990 1992 1994 1996 1998 2000 2002 2004


• Continuing the bonding 1991 1993 1995 1997 1999 2001 2003 2005

trends of the past decades sets


the state up for fiscal crisis. If the
rate of increase in debt service pay-
ments experienced over the last 15
years continues over the next fifteen
years, Wisconsin will pay more than $300
million annually (in 2003 dollars) in transporta-
tion debt service, nearly triple 2003 levels.

✓ Solution:

Wisconsin must not increase


bonding levels to pay for Major
Highway Projects until debt
service payments are brought
under control and the state has
adopted a Fix-it-First policy.

10
Balanced Transportation System
original state. Wisconsin must meet the needs of local and regional
EyeWire

mobility without harming or destroying its communities to do so.


Key initiatives, such as comprehensive planning, are ensuring that
Wisconsin communities will be less sprawling and more vibrant
and sustainable. However, these planning efforts must be comple-
mented by the development of a truly balanced transportation
system with a wide range of automobile, bus, rail, bicycling and
pedestrian transportation options to meet the needs of all Wis-
consin’s citizens.

Drive

O ver the last few years, Wisconsin


officials have begun to move
away from the out-of-control spending pat-
terns of the past. As the state continues to
take greater steps towards Fix-it-First budg-
Bike
eting and increased transparency, it is time
to take a step back and ask this question: Just as the state’s historic spending on highways can be
are we building a transportation system as compared to home investments, the state’s overall transportation
spending can be compared to household financial management.
an end unto itself, or a transportation system Financial planners emphasize diversification—don’t put all your
that serves as a means to help communities eggs in one basket. Neglecting to diversify a portfolio exposes a
household to unnecessary risk.
meet the economic, social and environ-
mental needs of Wisconsin’s citizens? In terms of transportation spending, Wisconsin has invested
deeply in our highway system, largely at the expense of other
While many of the nation’s communities, large and small, modes. While that investment has meant that Wisconsin has an
have lost their character to the march of sprawling development extensive network of 12,000 miles of state highways, it has also
across the landscape, many Wisconsin communities have main- exposed the state to a number of risks that are increasingly coming
tained much of their unique charm and sense of community. Along to fruition:
with our people and natural resources, our communities are what
makes Wisconsin a great place to live, work and play. • Significant portions of the state’s population
have few, if any, mobility options—reducing
Yet, many of these communities are in danger as pressure their access to jobs, health care, education,
builds to succumb to sprawling development patterns built and other necessities.
around the goal of moving cars, not people. This danger must be
understood in its rightful terms. Just as a forest or farm that is • The proportion of the state’s population
turned into new subdivisions rarely goes back to its earlier use, in need of transportation options beyond
neighborhoods, main streets and downtowns that are widened to driving is increasing dramatically as the elder
accommodate ever-increasing through-traffic rarely return to their population explodes and, as more and more

11
Transit Now

because of the lack of integrated, efficient


transit service—particularly across municipal
or county lines.

These challenges are formidable. However, attainable and


affordable solutions exist. Wisconsin can diversify its transporta-
tion portfolio by increasing investment in public transportation, rail
projects, local transportation aids, and bicycle and pedestrian
projects.

This section details the components of a balanced


transportation system that exist, and those still needed, to
complement the state’s system of highways and roads.

Rail Issue 4. A Valuable Cornerstone—Public transporta-


tion in Wisconsin

young people expect a modern, efficient and Issue 5. Under-funded Potential—The last two
affordable, public transportation system in decades of state funding of public
any community they consider moving to. transportation

• Automobile and truck emissions are degrading Issue 6. Economic Engine Revving Up—The eco-
air quality, particularly along the shores of nomic benefits of public transportation
Lake Michigan, where ten counties do not investment
meet federal healthy air quality standards.
Issue 7. 21st Century Transportation Investments—
• Development patterns across the state Projects to move Wisconsin forward
exhibit less and less density, meaning that
valuable natural areas and farmland are lost Issue 8. Moving People, Not Just Cars and Trucks—
to sprawl and more and more time and Local transportation options
money must be spent on driving.

• Employers face shortages of workers while


the unemployed cannot get to available jobs

Walk

12
Issue A Valuable Cornerstone
4

Madison Metro
Public transportation systems in
Wisconsin provide efficient, cost-effective
service to communities statewide with
numerous economic, social and environ-
mental benefits.
Wisconsin’s public transportation systems—where they
exist—provide indispensable economic, social, and environ-
mental benefits to Wisconsin communities.

• Wisconsin has 68 public transportation sys- Transportation for all citizens


tems providing indispensable service to more
than 100 communities statewide. There are
26 bus systems and 42 shared-ride taxis. Yet, • An increasing number of Wisconsin’s resi-
more than 500,000 Wisconsin residents live in dents demand and use public transportation
counties with no public transit service. Thou- out of a desire to reduce the negative impacts
sands more residents live in communities with of driving on the environment, their neigh-
no service, or limited service. borhoods and their communities. This group
includes people of all ages, professions and
backgrounds. Between 1997 and 2001,
national public transportation usage grew
Madison Metro

21%—nearly twice the increase in driving


over the same period.

• Large segments of Wisconsin’s population


cannot drive, or only feel comfortable driving
under certain conditions. Public transporta-
tion provides vital access to health care,
shopping, and social opportunities to sen-
iors, people with disabilities, children, and
low-income populations.

• Each year, Wisconsin’s public transportation


systems provide more than 99 million rides
essential to residents across Wisconsin.

48 million trips (48.4%) are work-related—


meaning more working resident and eco-
nomic growth.

23 million trips (22.9%) are for educational


purposes—meaning better trained workers.

Madison’s Mayor is on the bus

13
Purpose of Public Transportation Trips
Madison Metro

Recreation,
Health Shopping,
11% Tourism
18%
Education Work
23% 48%

Family-friendly transportation

10 million trips (10.5%) are to reach medical • One of the largest problems facing both
care—meaning healthier children and adults. employers and employees is access—job
centers are distant from residential areas with
18 million trips (18.2%) are to meet shopping, potential workers, often termed “spatial mis-
tourism and recreation needs—meaning more match.” This problem is most prevalent in
access to goods for residents and more eco- metropolitan areas with urban low-income
nomic activity for businesses. populations and suburban job centers. Public
transportation plays a key role linking low-
• In addition to the 68 public transportation income residents with jobs, but there is
systems, every county provides trans- seldom public transit between the suburbs
portation services targeted specifically for and central city neighborhoods. A lack of
the elderly and people with disabilities, transit service severely limits employer to
also known as paratransit. However, because potential employee linkages.
of underfunding, service is limited.

• Public transportation plays a key role in


reducing congestion. Ironically, the benefits of
congestion reduction do not accrue to those
who ride the bus, but to those who continue to
drive their own vehicles.

• 84.9 million less Vehicle Miles Traveled


(VMT) in the Milwaukee region
✓ Solution:

Public transportation systems


• 20.2 million less VMT in Madison and the benefits they provide
• $22 billion in congestion savings must be better publicized and
nationally promoted.

14
Issue Under-funded Potential
5

Madison Metro
While public transportation plays a vital
role in maintaining healthy communities, over
the last two decades state funding of public
transportation has been insufficient, particu-
larly in comparison to the funding of state
highways and state highways debt service.
More short-sighted cuts?
Funding for public transportation has increased over the
last two decades; however, on a dollar basis, those gains have
been paltry compared to highway funding, especially for Elderly 12 routes, cut service on 10 more, and raise
and Disabled Transportation. fares 17% due to insufficient funding.

• State funding is an important component • Wisconsin’s spending on elderly and dis-


of public transportation funding. It covers abled transportation increased 1/100th as
40%, or $99 million out of $250 million, much as spending on state highways. Yet
spent statewide on public transportation Elderly and Disabled Transportation aids
operating costs. increased just $6 million between 1990 and
2005 while State Highway spending
• Investment in public transportation has increased $536 million. There are more than
increased, but it has not kept up with 700,000 people in Wisconsin over 65, which
highway subsidies. From 1990 to 2005, state is 13% of the state population. By 2030 that
spending on transit aids increased $76 mil- number will climb to 1.3 million, and be
lion. The $76 million increase is less than more than 21% of Wisconsin’s population.
14% of the $536 million increase to State
Highways subsidies over the same period and
45% less than the increase in debt service of
$139.31 million. State Funding 1990-2005
21,000
• Overall spending on public transportation $20,000
and elderly and disabled transportation pales in millions
in comparison to state highway spending. of dollars

Between 1990 and 2005, Wisconsin spent $15,000


$21 billion on state highways, $1.5 billion on
public transportation—just 7% of state high- State Highways
ways spending—and $140 million on elderly $10,000

and disabled transportation—less than 1% of


state highway spending.
$5,000
Transit
Elderly/Disabled
• Insufficient funding has led to extreme cuts 1,500 140
to valuable service. Since 2002, Milwaukee
County Transit has been forced to eliminate

15
Wisconsin has unduly limited its commitment to public • The Wisconsin Department of Transportation
transportation. has produced the following: State Highways
Plan 2020, Airport System Plan 2020, Bicycle
• Historically, the state budget has passed Transportation Plan 2020, and the Wisconsin
through to municipalities transit capital funds Pedestrian Policy Plan 2020. In regard to inter-
from the federal government but made few city and intra-city public transportation there is
investments of state funds in transit capital no “Public Transportation Plan 2020”—just a
projects. Only in the 2003-2005 Budget Act Wisconsin Rail Issues and Opportunities
33 did funding for commuter rail projects Report. Double standards clearly exist.
become available, and then in the form of a
one-time $400,000 appropriation.

Planning

State Highways Plan 2020 Completed

Airport System Plan 2020 Completed

Bicycle Transportation Plan 2020 Completed

Pedestrian Policy Plan 2020 Completed

Public Transportation Plan 2020 ???

Rail Issues and Opportunities Completed

✓ Solution:
Wisconsin must increase public
transportation aids to local
communities, increase funding
for elderly and disabled trans-
portation, develop well-defined
plans for expansion of public
transportation service, and
make a large commitment to
capital investments in public
transportation.
Waiting for the bus?

16
Issue Economic Engine Revving Up
6
Highway Expansion
43,200

Public transportation investment brings Highway Repairs &


Maintenance
dramatic economic benefits. Wisconsin is
47,000
missing the opportunity to maximize its trans-
portation investments. Currently, all public
Transit
transportation service is provided by buses,
51,300
with the exception of Kenosha’s streetcar line.
Public transportation investment produces competitive
economic benefits and superior job creation. Jobs Created per $1.25 Billion Invested
• Wisconsin receives more than $730 million
in economic benefits statewide from public
transportation from four sectors of the Wis- • Public Transportation in Wisconsin sup-
consin economy: Health, Employment, Edu- ports more than 8,000 jobs.
cation and Service. Other benefits beyond the
four sectors increase the returns beyond • Investments in public transportation result
$730 million. in 9% more jobs per dollar than invest-
ments in highway and bridge repair; 51,300
• Economic benefits from public transporta- jobs versus 47,000 per $1.25 billion invested.
tion are at least comparable, and more
likely, superior to those from State High- • Investments in public transportation result
ways subsidies—economic returns on in 19% more jobs per dollar than invest-
public transportation investment range ments in highway and bridge repair; 51,300
from $3 to $6 for every $1 invested, as jobs versus 43,200 per $1.25 billion invested.
compared to $3 returned for every $1
invested in State Highways. • On average nationally, a $10 million invest-
ment in transit capital produces $30 mil-
lion in economic benefits, as well as 300
jobs. A $10 million investment in transit
operations produces $30 million in economic
benefits, as well as 600 jobs. And, every $10
million invested saves $15 million.

Transportation for the next generation

17
MCTS

• While Milwaukee County Transit provides


essential access to jobs for workers within the
county, a recent analysis of how well public
transit service in Milwaukee, Ozaukee,
Waukesha and Washington counties provides
job access to low income and minority
workers across the four counties indicates
that considerable expansion of transit service
is necessary.
Economic engine: Milwaukee County Transit

• The successes of the Southeastern Wisconsin


Case Study: Milwaukee County Transit, the state’s Regional Planning Commission’s hotly
largest public transportation system, is vital to southeastern debated $6.25 billion freeway plan are based
Wisconsin’s regional economic health. upon a 70% increase to transit service in the
region, of which Milwaukee County Transit is
• Over $650 million in economic benefits a vital component. However, the SEWRPC
are attributable to Milwaukee County freeway plan does not identify how transit
Transit annually and for every one dollar service funding will be balanced with freeway
invested in Milwaukee County Transit, $4.72 construction funding.
is returned to the economy.

• Milwaukee County Transit directly employs


more than 1,300 people and generates an
additional 700 full-time jobs.

✓ Solution:

Increase funding for operating


assistance for public transit
systems and create a transit
capital program comparable to
the Major Highway Projects
program that funds the expan-
sion of existing transit systems
and creation of new transit
systems.

18
Issue Now or Never
7

City of Madison
If Wisconsin wants economic growth
and vibrant communities in the 21st cen-
tury, our transportation system must move
beyond automobile-only networks of roads
and highways. Other states are rushing
ahead to meet growing demand for 21st
century transportation systems; will
Wisconsin keep up? Streetcars under consideration in Madison

Promising inter-city and intra-city rail and fixed-guideway around Chicago as a hub, one of the seven
projects are moving forward across Wisconsin. main high speed rail spurs will go from
Chicago to Milwaukee with lines continuing to
• Wisconsin has a great success story right Madison and Minneapolis and the Fox Valley
here at home. Amtrak’s Hiawatha service and Green Bay. High Speed Rail is expected
between Milwaukee and Chicago ranks tops to promote nearly $10 billion in economic
in the nation of rail lines for on-time service benefits across the entire Midwest, while also
and each month ridership regularly outpaces generating enough revenue in Wisconsin to
the corresponding month from the previous fund operating costs in the state. Capital costs
year. Promising investments are being made for the Midwest High Speed Rail Initiative in
to extend service to General Mitchell Airport Wisconsin are estimated at $1.1 billion. Envi-
($6.5 million) and the downtown Milwaukee ronmental work has already been completed
station is being remodeled into a multi-modal for the Madison to Milwaukee segment and
transportation hub ($5.4 million). once funding is secured, construction
can begin.
• Wisconsin will benefit greatly from High
Speed Rail, which promotes economic devel- • Southeastern Wisconsin will benefit from
opment and provides an efficient, affordable commuter rail service as access to jobs and
alternative to flying and driving. Based personal and business travel increase
between Milwaukee, Racine, Kenosha,
Chicago and points in between. The proposed
$152 million extension of METRA commuter
rail from Kenosha to Racine to Milwaukee
11 regions with, or pursuing, (KRM) is expected to spur economic develop-
high speed rail corridors: ment and provide much needed linkages to
local transit service. It is also projected to
California, Pacific Northwest, reduce traffic by as much as 4 to 12%
South Central, Gulf Coast, along I-94. KRM is on the verge of entering
Chicago Hub, Southeast, Florida, Keystone, preliminary engineering, due in part to
$400,000 in state funding in the 2003-2005
Northeast, Empire, Northern New England state budget.

19
Opportunity Costs: What Major Highway Cost Overruns Could Purchase
400
$381M
Millions
of
Dollars $331M
$311M $300M
300
Major Highway
$285M
Project $243M Milwaukee
Overruns $227M Connector
Milwaukee- Transport 2020
200
Green Bay Rail Full System
Milwaukee-
Illinois High $152M
Speed Rail
Madison-
100
Milwaukee- La Crosse KRM Metra
Madison High High Speed Rail Extension
Speed Rail

• Dane County stands poised to bring streetcars, Total costs are estimated at $331 million,
commuter rail, or both to the Greater-Madison with rail start-up system components avail-
area in the next few years—spurring redevel- able for an estimated $50 million.
opment and less sprawling land use pat-
terns, as well as serving transit dependent • Milwaukee also stands poised to bring fixed
populations and improving air quality. Mul- guideway technology—guided buses—to spur
tiple planning efforts have culminated in redevelopment, improve air quality and serve
Transport 2020, a set of regional transporta- transit dependent populations. The Milwaukee
tion alternatives, with the full-system vision Connector study process will submit a locally
including regional bus service, commuter rail preferred alternative as part of its Draft Envi-
lines, and park and ride lots; a streetcar ronmental Statement in early 2005 so that the
system is also receiving consideration and project can move into preliminary engineering.
strong support. Beginning in late 2003, an Much of the $300 million start-up cost is identi-
Implementation Task Force began work on fied or secured already.
putting the Transport 2020 plans into action.

✓ Solution:

Wisconsin must develop a


funding program comparable to
Major Highway Projects for cap-
ital investment in buses, com-
muter rail, light rail, fixed
guideway systems and high
speed rail.

20
Issue Community Transportation
8
If Wisconsin wants to have healthy
communities, healthy people and a healthy
environment, the state must increase
funding for local roads, bicycling facilities
and pedestrian facilities.

Local governments, at the city, village, town and county


levels, have not received their ‘fair share’ of funding over the last Bike racks at WisDOT headquarters
two decades. The lack of funding for local transportation networks
means that those costs get passed on to local taxpayers, primarily
through the property tax. Transportation Aids, which are spent prima-
rily on local roads, increased just 19.4%, from
• Spending on Local Transportation Aids $211 million to $373 million.
has not kept pace with increases to State
Highways. State spending on Local Trans-
portation Aids increased 27% from 1990 to
2005 while state highway funding increased
49% over the same period. There are roughly Property Tax Shared Revenues
47% 28%
12,000 miles of state highways and 98,000
miles of local roads and highways.

State Transportation Aids


25%

Local Transportation Funding Source

• Demands for property tax relief have


increased in Wisconsin lately. Yet, when it
comes to transportation funding, the state is
not assisting local governments as much as it
could. Local transportation aids from the
state cover just 1/4 of local transportation
Safe streets for children costs. Local transportation costs are funded
47% by the property tax, 28% from shared
revenues, and just 25% by state transporta-
• State funding of local transportation projects tion aids.
favors local highways over local roads. State
spending on Local Roads and Bridges, which
are spent on local highways, increased 70.6%
from $68 million to $172 million between
1990 and 2005, while spending on General

21
City of Madison

• Historically, Wisconsin has funded pedes-


trian and bicycling projects at 1/175th the
level that it has funded state highways. In
the 1990’s Wisconsin ranked 50th in the
country for its use of Federal Transportation
Enhancement dollars, which can be used to
make bicycling and walking safer. Instead,
between 1992 and 2001, Wisconsin took
advantage of allowances in Federal law to
shift more than 50% of its Transportation
Enhancements funding to other programs,
including highways.

• Recent budgeting has cut funding for trans-


portation modes that can improve health,
Friendly faces—not road rage
such as biking and walking even further. In
the 2003-2005 Budget, spending on bicycling
Wisconsin’s transportation system has been built largely for and pedestrian projects, which totals less
transportation’s sake, not moving people. than $25 million per year out of a $2.3 bil-
lion transportation budget, was reduced by
• Every person who drives is a pedestrian at 35% over the biennium. Meanwhile, the
some point in their trip. Walking and biking Major Highway Projects Program was reduced
to school, work or shopping results in by just 2.5%.
healthier people, more vibrant communities,
less demand for parking, and less conges-
tion. Yet most of Wisconsin’s neighborhoods,
business districts and downtowns are planned
with pedestrians and bicyclists as an after-
thought resulting in many people who might
want to travel on foot or bike not doing so
because they are made to feel unsafe by cars
and trucks. Recently, the Wisconsin Depart-
✓ Solution:
ment of Transportation has developed long- Local transportation aids and
range Pedestrian and Bicycling plans for the
state, and has begun to implement Community bicycling and pedestrian funding
Sensitive Design, which works to ensure that must be increased to ensure that
highways fit the scale of the communities Wisconsin residents have a wide
through which they pass.
range of mobility options within
their communities. WisDOT must
work with communities to utilize
the Comprehensive Planning
process to ensure that local
transportation needs are bal-
anced with statewide plans.

22
Where do we go from here?

W isconsin runs the risk of getting left


behind in the 21st century compe-
tition for human capital and economic growth.

Wisconsin’s leaders regularly emphasize the importance of


public investments in a top-quality education system and an
attractive business climate in this competition. They should not
lose sight of the importance of investments in our community infra-
structure as well.

Over the last few decades, however, Wisconsin’s trans-


portation policy makers have adopted misplaced priorities at the
expense of Wisconsin’s residents and communities, thereby public transportation and 21st Century rail and fixed-guideway
reducing Wisconsin’s competitiveness. Specifically, they have pri- systems will ensure that Wisconsin’s communities are vibrant
oritized out-of-control spending on wasteful highway expansion places to live, work and play.
over full funding of a balanced array of transportation options.
In the end, transportation is not about roads, rails or
Fortunately, Wisconsin has tremendous opportunities to runways. It’s not even about cars, trucks, trains, bikes or
capitalize on our existing assets and minimize the competitive walking shoes. It’s about people and communities.
ground it has already lost. First, exerting fiscal responsibility on
road and highway funding by Fixing-it-First can help stabilize out- Place matters. So does how we get there.
of-control spending patterns. Second, aggressive investments in

23
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Economy: The Economic Benefits of Transportation Investments, February 2003. 2003 e-newsletter.

HLB Decision Economics, Inc. Economic Assessment of the Transit System in Wisconsin Democracy Campaign. The Graft Tax, January 2003.
Milwaukee, March 5, 2004.
Wisconsin Department of Administration. Wisconsin Population 2030: A
Report on Projected State, County and Municipal Populations and Households for
HLB Decision Economics, Inc. The Socio-Economic Benefits of Transit in Wis-
the Period 2000 to 2030, March 2004.
consin, December 2003.
Wisconsin Department of Transportation. 2003-05 Biennial Budget Summary:
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Wisconsin Department of Transportation. Press Release: Public Transit system


Milwaukee Downtown Transit Connector Study. Milwaukee Connector continue score well following annual performance analysis, August 23, 2004.
Newsletter, Issue 1, Volume 5: September 2004.
Wisconsin Department of Transportation. State Highway Plan 2020, February
2000.
Rast, Joel. Transportation Equity and Access to Jobs in Metropolitan Milwaukee, at
http://www.uwm.edu/Dept/CED/publications/transp804.html. Wisconsin Department of Transportation, Office of Policy and Budget.
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Transportation Budget Trends, August 2002.

Sandler, Larry. Cuts to Transit Plus Proposed, in Milwaukee Journal Sentinel on Wisconsin Department of Transportation. Milwaukee to Madison High Speed
August 4, 2004. Rail, at http://www.dot.wisconsin.gov/projects/d1/hsrail/index.htm.

Wisconsin Ethics Board. Organizations employing lobbyists in 2003-2004, at


Sandler, Larry. Projected cost of high-speed trains doubles, in Milwaukee Journal-
http://ethics.state.wi.us/scripts/2003Session/OELMenu.asp?start=T.
Sentinel, December 27, 2004.
Wisconsin Legislative Audit Bureau. An Evaluation: Major Highway Program—
Southeastern Wisconsin Regional Planning Commission. Wiseride: Kenosha- Wisconsin Department of Transportation, November 2003.
Racine-Milwaukee Corridor Transit Study, at http://www.sewrpc.org/wiseride/
Wisconsin State Journal. Restrict Borrowing to Restore Stability, August 11, 2004.

Surface Transportation Policy Project. Changing Direction, March 2000.

Written by: Ward Lyles, Transportation Policy Director,


Surface Transportation Policy Project. New Report Finds Fix-it-First‚ and Public
1000 Friends of Wisconsin
Transportation are Key to Job Creation, January 2004.
Designed by: Flying Fish Graphics
Transport 2020. Transportation Alternatives Analysis for the Dane © 2005 1000 Friends of Wisconsin
County/Greater Madison area, at http://www.transport2020.net.

Transportation Development Association. Fast Facts:


Synopsis of Proposed Midwest High Speed Rail Network.

24
1000 Friends of Wisconsin & the Land Use Institute educate
citizens and policy makers about the benefits of responsible
land use. We advocate for healthy urban and rural communi-
ties and the protection of our economic, cultural and natural
resources statewide.

This publication was made possible by the generous support


of the Joyce Foundation.

1000 Friends of Wisconsin & The Land Use Institute


16 North Carroll Street, Suite 810
Madison, WI 53703
608 / 259-1000
www.1kfriends.org

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