MADISON (WITI) -- No new revenue. A state report shows tax collections aren't growing at the rate originally projected -- and Governor Scott Walker says this issue will have an impact on a funding plan for a new Milwaukee Bucks arena.
GOP lawmakers had previously said they were hoping for a larger than expected revenue increase -- but now, Assembly Republicans say their main focus is making sure there are no cuts to K-12 education.
Democrats say they've found a way to do that -- but either freezing or reducing the manufacturing and agriculture tax credit.
Republicans say that's a non-starter.
While this gets hammered out, Governor Walker says any announcement regarding a funding plan for a new downtown Milwaukee Bucks arena is likely on hold.
“We’re still having discussions. Our folks are meeting, staff has been meeting the last few days since I met with everybody last week. It’ll take us some time. I think right now though, as you might imagine, until we resolve some of these other issues dealing with the schools and any other big adjustments in the budget, I think the Legislature is going to be reluctant to sign off on any final plan until we know where we’re at in terms of covering public education first," Walker said.
"We’ve had a discussion about it in caucus. We’re still waiting for many of the details that are being negotiated between all the parties that are meeting on a regular basis but I think it’s fair to say Assembly Republicans have always stood up to say we want to minimize the opportunity for state taxpayers and increase the opportunity for local people who are getting the benefit to help pay for the arena. (The Bucks owners pitching in more) has already been part of the discussion. We’ve talked about that as we’ve gone forward. We have to remember, however, that the private sector is contributing half already, so I think that’s something we should applaud and say ‘thank you.’ It’s important to make sure we look at what’s happening in other places. Most arenas rely much more heavily on public investment than the one we’re looking at in Milwaukee," Assembly Majority Leader Robin Vos (R-Rochester) said.
The Milwaukee Bucks have unveiled plans for a $500 million arena and a $500 million sports and entertainment complex.
The sports and entertainment district would be paid for mostly by private enterprises — but the arena requires public funding.
Governor 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 of Milwaukee and Milwaukee County. So far, the city of Milwaukee has offered $25 million. Milwaukee County hasn't offered a specific amount, but County Executive Chris Abele says he's willing to match the $25 million and possibly more.
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.”
Milwaukee Alderman Bob 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.
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.