Graham Kilmer
Transportation

Canceled BRT Project Saves MCTS Budget Until 2028

Shelving project reduces operational costs, helps MCTS stay solvent.

By - Sep 4th, 2024 07:35 pm

MCTS Connect 1 at Wisconsin Avenue Stop. Photo by Graham Kilmer.

Scrapping plans to build a $148 million bus rapid transit project will keep the Milwaukee County Transit System (MCTS) solvent until 2028, officials said Wednesday.

In August, the transit system announced it could no longer afford to continue developing the Connect 2, which would run perpendicular to the Connect 1 along the 27th Street corridor. The 18-mile bus route would have spanned the county and provided faster, more frequent bus service in one of the busiest transit corridors in the county.

Transit officials were pursuing a federal grant to cover approximately 80% of the project costs. But it wasn’t the other 20% of development costs that worried transit officials, it was the annual cost to operate the line.

“If we were to continue with the north south BRT, we would be adding $6 million to our operational budget,” said Denise Wandke, MCTS managing director.

MCTS has a structural deficit — with more money going out than coming in — that has been kept at bay since 2020 largely due to the infusion of federal COVID-19 stimulus funding. The system was on schedule to run out of funding in 2025. In the 2024 budget, County Executive David Crowley and the county board allocated an unprecedented $17.8 million in tax levy funding to help the transit system stretch out its federal funding, keeping the system in the black until 2026.

$15 million from the federal American Rescue Plan Act (ARPA) was allocated to the Connect 2 project. MCTS now plans to move that funding into its operational budget, buying itself another year and sustaining operations until 2028. In 2029, MCTS is facing a budget deficit projected at approximately $17 million, according to projections by the Office of the Comptroller. MCTS cannot add $6 million in operating costs to its budget without cutting $6 million elsewhere in the system.

MCTS is very familiar with fiscal cliffs, so we are trying to do what we believe is fiscally responsible, to make sure that the system stays on a whole as it is currently,” Wandke said.

The work and funding already sunk into the Connect 2 is not lost. MCTS officials say it is only on the “shelf” right now, but it will remain there for an indeterminate amount of time.

Supervisors on the county board’s Committee on Transportation and Transit expressed disappointment at the loss of the Connect 2 project. Sup. Juan Miguel Martinez, whose district includes a large chunk of S. 27th Street, said the news was “a huge blow to my district.” Sup. Justin Bielinski commended MCTS for making a tough decision, adding that it’s “not one I’m happy with, but the realities are the realities.” Sup. Priscilla E. Coggs-Jones also said she wasn’t happy with the decision, “but if this gives us a cushion to keep us moving, I say, let’s do it.”

Losing the Connect 2 is the “canary in the coal mine” for the direction in which the system is headed, said David Locher, MCTS enhanced transit manager. The transit system is trying to hang onto the service it currently has, and will need to make cuts in 2029 unless new sources of revenue are secured.

I’m Mr. BRT.” Locher said. “I love BRT, and I wish we could implement this project, but the truth is, to do cool things, it costs a little more annually to operate those cool things.”

If you think stories like this are important, become a member of Urban Milwaukee and help support real, independent journalism. Plus you get some cool added benefits.

Comments

  1. Counselor of Peace Joel Paplham says:

    A new source of revenue is needed to save MCTS ? LMAO As a frequent disabled rider ( primary due to being car jack while riding in Uber and discrimination by many drivers of same race ) the old source of revenue should be implemented and strongly enforced. Make the marginalized frequent riders pay for rides. I notice numerous people walk causal on busses and never pay as if they are entitled to ” rides for reparations.”

  2. 45 years in the City says:

    Too bad. I think CN2 has the potential to outperform CN1. Is this the proverbial “burning the furniture to heat the house” situation?

    Our community and our leaders still have the mindset that transit is only for marginalized populations. We need leaders (political, corporate, etc.) who stand up and say that MCTS is personally important to them, not just a “good for other folks” thing. Without that, we’re stuck in crisis mode perpetually.

    Years ago, The Onion had a satirical headline to the effect: “90% of Americans support Public Transit – For Others to Use”

  3. jmpehoski says:

    I attended several meetings regarding the Connect 1. My opposition was that that Gold Line, the former Route 10, not be discontinued,even if the Connect 1 took the same route. Of course, nobody listened. The result, several folks along Wisconsin who once had a 2-3 block walk to the bus stop, now have a minimum 4-6 block walk to our only option, the Connect 1. I have lost all respect for MCTS management. But hey, I’m an older , honest taxpaying citizen dependent on public transit because of a disability. I also load my card and ALWAYS pay my fare, unlike the younger riders who I feel think they are entitled to ride for free, for whatever reason. And the bus operators don’t even try to stop them. Used to be they would be kicked off the bus. MCTS probably doesn’t do that anymore because it wants the public to see folks on the buses, even if they are riding for free. The Milwaukee transit system is a pathetic shadow of its former self, in my opinion. I rode it for a couple years in the 1970s, and consistently since 1983.
    A former neighbor approached me a few months ago. He also attended those meetings, and his concern was the same as mine. He has a cognitively impaired family member who no longer feels comfortable taking the Connect 1. His world has become much smaller, thanks to MCTS. He told me he has heard MCTS is in dire straits financially. Serves them right. Don’t listen to those who are dependent on public transit and support it. And I applaud Waukesha for not choosing MCTS to manage its area transit system. The management is not what it once was and things are only getting worse. MCTS will probably be dissolved before Connect 2 is off the ground, thanks to its poor management and inability/unwillingness to listen to riders.

  4. Counselor of Peace Joel Paplham says:

    Mayor Cavalier Johnsons voters continue to ride free on MCTS.

Leave a Reply

You must be an Urban Milwaukee member to leave a comment. Membership, which includes a host of perks, including an ad-free website, tickets to marquee events like Summerfest, the Wisconsin State Fair and the Florentine Opera, a better photo browser and access to members-only, behind-the-scenes tours, starts at $9/month. Learn more.

Join now and cancel anytime.

If you are an existing member, sign-in to leave a comment.

Have questions? Need to report an error? Contact Us