The Hop budget deficit, Milwaukee leaders debate streetcar's future

MILWAUKEE - If Mayor Cavalier Johnson gets his way, you will pay more to register your car in Milwaukee next year. Now, one city alderman wants to kill The Hop streetcar instead.

Budget vs. boost

What they're saying:

Another year, another $4 million operating deficit is projected for The Hop. 

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"At some point, we have to cut bait," said Ald. Scott Spiker. "That’s $4 million we don’t put toward libraries. That’s $4 million we don’t put toward streets, $4 million we don't put toward new fire trucks."

As the streetcar continues to bleed red ink, the city's parking division plans to boost revenue by writing a record number of parking tickets next year. Johnson wants to boost the so-called wheel tax $10 per vehicle.

FOX6 Investigators asked Spiker if Milwaukee drivers are subsidizing the streetcar. He said: "Absolutely."

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"It’s not a subsidy. It’s a strategy that pays off for the entire city," said Ald. Peter Burgelis.

Burgelis said some of his constituents complain about the cost of keeping the streetcar running, "but that misses the bigger picture. Growth in downtown property values expand our tax base."

Ald. Marina Dimitrijevic, who chairs the Common Council's finance committee, said an expanded system is worth waiting for.

"It’s about vision. It’s also about hope, and being hopeful on a city we want to see that’s different," she said.

"Hope will not keep the libraries open," said Spiker.

Grant refund?

Dig deeper:

The city is in a difficult spot. State law now prohibits the city from using local taxes to expand the system, but stopping the existing system could lead the federal government to demand a $48 million grant refund.

Spiker believes the current administration in Washington might be willing to forgive that loan if it means pulling the plug on an electric train with little hope of expansion.

"The world’s changed a lot in the last year," he said. "It’s certainly worth a shot. It’s certainly worth asking. It’s certainly irresponsible of us not to ask if we can have some relief from what is surely an albatross around their neck."

The Hop operates within the city's transportation fund, which as of this year has less than $100,000 left in its reserve. 

The city's commissioner of public works said they hope to boost revenue next year by hiring a new marking director to sell streetcar sponsorship – and by writing a record $550,000 worth of parking tickets, a 13% increase of this year's projected total.