Walker’s Idea to save Transit is not Very Realistic

Milwaukee County Executive Scott Walker wants to privatize Mitchell International Airport by leasing the airport to a firm that would operate the facility. The Revenue collected from the long term lease agreement then would be used to fund Transit and buy buses. On the surface this may sound appealing, but if look into it with some detail it’s a bad Idea.

First, let’s do some simple math. The latest sales tax proposal of .5% dedicated for Milwaukee County Transit will raise approximately $65 Million annually. A Sales Tax that’s even being lobbied by the business community. Now, according Walker, an estimated $500 million to $1.5 billion would be taken in over the term of a 50-99 year lease. So, let’s say the sales tax does bring in $65 million annually. If you calculate that over 50 years that’s over $3.2 billion; and that’s not considering the adjustment for inflation. So that number would obviously be much higher. A funding source that is tied to inflation makes much more sense. So if Walker got his way here, would that lease agreement even be enough to fund transit?

Second, Privatization would have to go through to many hoops. It would need the approval of the County Board, the governor, the State legislators, and of course the airlines at Mitchell. Chairman Lee Holloway has already come out and opposed Walker’s Idea.

Privatization could lead to "reduced flight schedules, increased parking costs and higher fares," Holloway said.

Mitchell's success in luring record numbers of passengers is owed largely too affordable fares and parking fees, Holloway said in a statement.

Airlines couldn't bear additional costs in the current environment of high fuel prices, Holloway said. He also said he was concerned that county taxpayers could be at risk if a privatization plan failed.

Here Chairman Holloway makes many valid points that should be taken seriously.

Third, Considering that one-third of Milwaukee County transit services are in serious jeopardy of being cut within the next couple years , with bus fares that are amongst the highest in the country and with skyrocketing fuel prices, does Scott Walker really think we have five years to wait for plan that will probably not bring in enough revenue over time and one that doesn’t appear even likely?

Come on Walker, really, think about it.