MILWAUKEE (WITI) -- Milwaukee Alderman Bob Bauman has come out with a plan to help fund a new Milwaukee Bucks arena in downtown Milwaukee -- and it involves a sales tax.
"Sales tax is the solution," Alderman Bauman said.
Alderman Bauman has suggested Milwaukee County create a one percent sales tax.
Bauman says the money would cover the public funding for the project, as well as other public needs, such as parks, cultural institutions and transit, things currently covered by property taxes. The one percent sales tax would put the sales tax in Milwaukee County at 6.6%, and Bauman believes Milwaukee County's property tax levy would drop significantly.
"A penny sales tax generates about $125 million a year in Milwaukee County alone," Alderman Bauman said.
"The arena is going to bring so much more money to the area in the long run. It`s worth it," Bucks fan Kyle Malke said.
A new Marquette University Law School poll released Thursday shows 67% of southeastern Wisconsin residents are opposed to helping fund a new arena.
Alderman Bauman acknowledges not all will be on board with his plan.
"If that`s the sentiment then the Bucks leave. It`s just that simple. People have to realize that," Alderman Bauman said.
Americans for Prosperity is one group opposed to Bauman's plan, issuing this statement to FOX6 News:
It is possible Bauman's plan could go to a referendum. That would require a special election in order to meet the NBA's timeline. An arena plan must be in place by 2017 -- or the Bucks are gone.
It is expected the city and county will be on the hook for about $100 million to help pay for the new arena.
Governor Scott Walker's funding plan calls for the state contributing $220 million in bonds -- with some funds coming from players' income taxes and $50 million coming from other sources, such as the city and the county.
Some lawmakers are calling Walker's plan "dead on arrival" due to its price-tag.
Senator Scott Fitzgerald (R-Juneau)'s plan calls for the state contributing $150 million via a loan through the state's "Public Lands Board."
Former owner Herb Kohl has pledged $100 million, and the new Bucks owners have pledged $150 million towards this project.
The state's contribution ($150 million to $220 million), the city/county contribution ($50 million), and the pledges from Kohl and the new Bucks owners ($250 million) combined could come up short of the $500 million needed for the arena. If the state contributes $150 million, the total would be $450 million -- $50 million short.
Exactly how much the state will contribute to this project will likely be ironed out in the coming weeks. The state budget is due in June.
Alderman Bauman's statement on Bucks arena funding reads as follows:
Last week, the Milwaukee Bucks unveiled plans for a $500 million arena, and a $500 million sports and entertainment complex for downtown Milwaukee.