By Michael Burke

RACINE COUNTY - Jody Karls, who sits on the Southeastern Wisconsin Regional Transit Authority, hailed it as the breakthrough that will bring commuter rail to the region.

The RTA unanimously recommended Tuesday morning that the commuter rail extension from Kenosha to Milwaukee should be paid for by raising the $2 rental-car fee to $15. The RTA imposed a $2 fee last summer to fund its operations.

The $15 fee would generate an estimated $4.9 million annually from Racine, Kenosha and Milwaukee counties combined. That's projected to be enough to cover both capital costs - borrowed and paid back over 20 years - and the local portion of operating costs.

"We're getting commuter rail," Karls, the city of Racine's RTA representative, exclaimed after the meeting.

"It's a huge milestone for Southeastern Wisconsin," he said. "There have been folks working on commuter for decades. This is really the biggest step that's ever been made; it's huge."

Karls was also confident the decision will be politically palatable to Gov. Jim Doyle and the Wisconsin Legislature, both of which must approve a funding method for commuter rail. Doyle's representative on the RTA voted for the funding method.

Trains would run 14 round trips every weekday to stations stretching from downtown Milwaukee, through Caledonia and Racine, to Kenosha. Passengers would connect with Chicago's Metra commuter rail by changing trains at Kenosha or Waukegan, Ill.

Least resistance

"It was the path of least resistance," said Karls, who put forth the motion that passed. He said RTA members favored the rental tax because it's politically acceptable and also would provide a stable funding source.

"Now there's no referendum needed," Karls said, "and no new tax. It's a fee … and 90 percent comes from out of our area."

The Wisconsin Car Rental Alliance objects to the $15 fee and will likely lobby the Legislature against it. But consultants to the RTA said existing rental taxes and fees are now moderate, compared with others around the country.

And Dave Blank, Racine County Convention and Visitors Bureau executive director, said he doesn't worry about it hurting visitor numbers here.

"My experience is we have a very, very low car rental tax right now," he said. "I don't think it's going to be anything out of whack.

"I've rented cars that were supposed to be $29.95 per day and ended up being $50 per day," Blank continued. People on expense accounts expect to see those hidden add-ons, he said.

"I think it's a wonderful way of doing it," Blank concluded.

The city of Milwaukee had wanted a funding source that would help cure its funding problems for city buses and still represents a potential pitfall. However, its RTA representative also voted for the funding mechanism.

Moreover, the second part of Karls' successful motion was for the RTA to continue to work toward solving some of those other transportation issues.

He said the issue still contains "political land mines" but added, "The heavy lifting was done (Tuesday) morning. … Of all the hurdles we face, we jumped the highest hurdle this morning."

Racine Mayor Gary Becker had initially floated the idea of a 1 cent per gallon gasoline tax. Later he suggested a 0.0025 percent sales tax, and said Tuesday he still believed in it.

However, he said, "I'm willing to get it done. If this is what it takes, so be it."

Becker said an added $13 rental car fee would not dissuade visitors, most of whom would be on business trips.

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Public hearing on commuter rail on Monday

RACINE - A public hearing is scheduled for Monday on the proposed KRM commuter rail plan. The hearing will be from 5:30-8 p.m. at the Racine Building of Gateway Technical College here, 901 Pershing Drive. Presentations will be held at 6 and 7 p.m.

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Commuter Rail by the Numbers

These are the latest estimates of linking to the Metra commuter rail train with a line to run to Milwaukee, through Racine County.

► $198 million - cost to build;

► $10.9 million - total annual operating cost, before fare box revenues;

► $4.6 million - estimated fare box revenues;

► $900,000 to $1 million - estimated local support needed after fares and state and federal operating subsidies.

► $15 - proposed fee, for each time someone rents a car, to fund commuter rail, both capital and operating costs.