This browser does not support the Video element.
Hop streetcar deficit could mean Milwaukee parking ticket push
The City of Milwaukee plans a big push to write more parking tickets next year. And the fees for violations are going up nearly 50%.
Milwaukee - Drivers beware! The City of Milwaukee plans a big push to write more parking tickets next year. And the fees for violations are going up nearly 50%. The controversial plan to shore up the city's transportation budget comes as the Hop streetcar is projected to run a $4 million deficit in 2025 – its largest yet.
On Thursday, Oct. 10, the Milwaukee Department of Public Works (DPW) pitched its proposed 2025 budget to the city's Finance and Personnel Committee. At the hearing, DPW Commissioner Jerrel Krushke unveiled a plan to issue more than 500,000 parking tickets in 2025 – an increase of more than 45,000 from 2024. The proposal also calls for violation fees to go up nearly 50%.
"Really put a focus on, you know, away from cars," said Jerrel Kruschke, Public Works Commissioner.
Under the proposal, the following would happen:
- Night parking on the wrong side of the street would climb from $20 to $30.
- Parking meter violations would increase from $22 to $35.
- Parking too close to a driveway or crosswalk would go from $30 to $40.
- View the proposed increases for eight common violations.
"Are all citations going up?" asked Milwaukee Alderman Peter Burgelis.
"Across the board, yes," Kruschke answered.
Since 2019, the Hop has run an average of a $2.2-million operating deficit. With federal Covid-19 relief funds going away, projections for 2025 show the streetcar system with a deficit of more than $4.0-million.
Thirteenth District Alderman Scott Spiker wants to know why.
"I think that’s a fair question to ask, because there is a $4 million deficit," Spiker said.
SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News
We asked Kruschke what was behind the push for more parking citations.
"Well, a lot of that comes to reckless driving," Kruschke said.
That's right. Kruschke said he wants to crack down on parking to combat reckless driving.
"A lot of people park really close to intersections, which is causing a lot of reckless driving concerns," Kruschke explained.
Spiker suggests another possible motive.
"Is it being used to subsidize the streetcar?" Spiker said. "Because that was never the intent."
October 10, 2024 - Public Works Commissioner Jerrel Kruschke unveils plan to increase parking citations and fees by $2-million
Since its opening in 2018, the "Hop" streetcar has always cost more to operate than it brings in, putting a strain on the city's transportation budget. In the past three years, the streetcar's portion of the budget has been propped up with federal COVID-19 relief funds from the American Rescue Plan Act (ARPA).
Next year, ARPA funds in the Hop's budget will drop from $2.4 million to $0, leaving the system with its largest operating deficit yet.
"It’s about $4 million this year," said Nik Kovac, the city's budget director.
"So there’s a $4 million shortfall," Spiker confirmed.
"We are hoping to turn that," Kovac said.
To offset the loss, DPW is planning to raise an extra $2 million from parking tickets and an extra $400,000 through expanded hours when parking meters are enforced.
Still, Kruschke insists the two things are not related.
"Doesn't have anything to do with the $4 million deficit the streetcar is running?" asked FOX6 Investigator Bryan Polcyn.
"No," Kruschke said. "It has nothing to do with the streetcar."
The commissioner said the real value of the streetcar is in real estate development along the route.
FREE DOWNLOAD: Get breaking news alerts in the FOX6 News app for iOS or Android
Meanwhile, supporters say the system is only gaining momentum. While ridership still lags prepandemic numbers, it is up 8% from 2023 (1,516 daily riders in 2024 compared to 1,386 daily riders in 2023), thanks to the new L-Line, which extends the original two-mile loop another quarter of a mile to the lakefront.
"We took it to Summerfest. We also did the 4th of July," said Bobbi Kleemann, who lives and works downtown and rides the Hop for free.
"I'm very, very lucky," Kleemann said. "If I didn't live down here, it would be kind of hard to take it."
District 13 Alderman Scott Spiker asks the city to conduct an "equity" study to determine who pays parking tickets. He's concerned drivers who are poor may be subsidizing streetcar riders that are more affluent.
In fact, everyone rides the Hop for free, because the system does not charge riders a fare.
"If they’re folks that can afford to pay, then they should pay for the service they use," Spiker said.
Spiker is worried about equity. So he asked the city to study who is paying most of the parking tickets and who is riding the streetcar. Without such a review, he said the city is open to criticism.
"You’re charging mostly poor people to pay all these tickets to run a fund that then pays a streetcar which is mostly ridden by rich people," Spiker said.
The commissioner says they're targeting violators.
"These are people that are actually breaking the law," Kruschke said.
"The mom with one minute who ran into the grocery store," said District 14 Council member Marina Dimitrijevic. "That violator?"
The Hop streetcar
"That could possibly be," Kruschke said.
Kruschke hopes it will lead to fewer cars downtown.
"No, that’s not an option," said Tammie Washington, who has no plans to leave her keys at home. "I want to drive my car. And I don’t want to pay an arm and a leg to do it."
The plan to increase parking citations and fees is still a proposal. Council members vote on a final city budget Friday, Nov. 8.