"Cheaper to keep them:" Gov. Walker, state, local leaders announce funding plan for Bucks arena

MADISON -- Governor Scott Walker joined state and local leaders, including Speaker Robin Vos, Majority Leader Fitzgerald, Milwaukee County Executive Chris Abele, and Milwaukee Mayor Tom Barrett in announcing a plan to protect state taxpayers from a loss of approximately $419 million, if the NBA relocates the Milwaukee Bucks.  The total state contribution will be capped at $80 million, according to a news release from the Governor's Office.

“We’ve considered the financial impacts on the state should the Bucks stay or go, and quite simply, we found it’s cheaper to keep them,” Governor Walker said.  “Our plan is the result of a state and local, public and private alliance, and it is developed with the goal of ensuring a good return to our state taxpayers.  Under this plan, for every dollar the state invests, state taxpayers will get a $3 return on that investment.”

A news release from the Governor's Office indicates in April 2014, new owners bought the Milwaukee Bucks from Herb Kohl in a deal approved by the NBA and contingent upon the construction of a new arena by 2017.  If a new arena is not constructed by 2017, the NBA will buy the Bucks back from the current owners and move the team to another state.

If the team is relocated, there will be a loss to state taxpayers of at least $419 million over the next 20 years due to the loss of current revenue, future growth, and the ongoing costs to maintain the Bradley Center, according to the Governor's Office.

Current and former team ownership committed to fund $250 million toward funding the $500 million arena project.  Under this plan, state and local governments will also fund $250 million, or half of the total project costs, toward building the new arena without tax increases or state bonding.  Any cost overruns would be paid by the Bucks.

Working together with local leaders, Governor Walker, Speaker Vos, and Majority Leader Fitzgerald developed a plan that will cap the total state investment in the project at $80 million over 20 years.  Over a 20-year period, this plan protects $299 million in income tax revenue, including the base and projected growth, according to the Governor's Office.

Local governments will fund the remainder of the investment through infrastructure investment, direct funding, and financing through the Wisconsin Center District.

How it works, according to the Governor's Office:

Benefits of the plan, according to the Governor's Office:

The sports and entertainment complex that will be part of the arena project is $500 million -- but that will be paid for via the private sector.

The Republican governor has argued for months that it will cost the state more in lost income-tax revenue if the NBA pulls the Bucks from Milwaukee than it will to pay for a new downtown arena.

"It`s an important part of the state overall, but also something that I can say to lawmakers -- whether they`re in Rice Lake, Rhinelander, or Marinette, or Sheboygan or anywhere else across the state, this is a good deal for lawmakers anywhere in the state," Walker said.

"Forget the Bucks for a second. Put this decision inside a box where we just look at the numbers part of this. Option A, we lose an enormous amount of revenue and there`s a hole in the budget and it`s gonna hit all of us and nobody wants to see that. Option B, we have a lot more revenue going forward. The potential upside is larger than we have had for downtown in terms of economic development -- ever," Abele said.

"What we have here is something I can take to my taxpayers and say `look, we have to make sure this gets done and we have to make sure this gets done in a way that`s fair to you,'" Barrett said.

"I think the more people get to see this, the more they get to chew on the facts, the better this is going to taste," Tim Sheehy,  president of the Metropolitan Milwaukee Association of Commerce (MMAC) said.

So will lawmakers vote in favor of this plan? Some lawmakers have said they'd like to see the arena funding plan as a stand-alone measure, separate from the state budget.

"At this point, I would still -- I would feel more comfortable with the arena taken out of the budget process and have it stand alone -- have a good debate," Senator Van Wanggaard (R-Racine) said.

The Milwaukee Bucks have issued this statement:

Milwaukee Bucks President Peter Feigin issued this statement:

Milwaukee County Executive Chris Abele issued this statement:

Sen. Van Wanggaard (R-Racine) has issued this statement:

Milwaukee Common Council President Michael Murphy has issued this statement:

Senate Minority Leader Peter Barca (D-Kenosha) has issued this statement:

Senator Lena Taylor (D-Milwaukee) issued this statement:

Marquette University President Michael Lovell issued this statement: