WED AM News: State transportation funding system unsustainable, former secretary says; Brewers negotiate proposed new lease with district board

December 18, 2024

— Wisconsin’s current transportation funding system is unsustainable, according to a former state transportation secretary.

Speaking during a recent Wisconsin Policy Forum panel, former Department of Transportation Secretary Mark Gottlieb argued any state transportation funding structure should be adequate, sustainable and equitable “across different user types” and socioeconomic groups.

“The system that we have right now probably is failing in all three of those areas,” he said.

He referenced findings from a recent WPF report that found transportation funding in Wisconsin hasn’t kept up with inflation for road construction costs over the last three years. While road construction costs rose 56.8% nationally from 2020 to 2023 and state costs increased 26.6%, state transportation spending increased 5.3%.

Gottlieb, who served under former Gov. Scott Walker, said the state’s transportation funding formula isn’t structured to grow to meet changing needs. The discussion highlighted the effects of inflation as well as how hybrid and electric vehicles are affecting gas tax revenues.

“I think a lot of people feel the gas tax is dead, and I would say that reports of its death are greatly exaggerated,” Gottlieb said.

Meanwhile, Wisconsin Transportation Builders Association Executive Director Steve Baas said the state’s transportation funding system can support “a good system of local roads, or a good system of backbone highways” but not both.

“Being the last hostage shot is not much of a strategy. But that’s the strategy we are forcing WisDOT to take on right now,” Baas said. “It doesn’t have enough funding to do both … It can’t be an either-or. This is about the vision we have for Wisconsin’s future economy.”

He said the state agency is now in an “almost untenable position” where it has to adopt an asset management plan that’s “not the most cost-effective in the long-run,” calling it a fatal flaw in the funding system.

Tracy Johnson, president and CEO of the Commercial Association of Realtors Wisconsin, raised the issue of expensive debt service on transportation projects, noting “the longer we wait, the more expensive it gets.”

“We are seeing this play out right now with the delay in the I-94 east-west corridor,” she said. “This project started out at probably half of what it was in the early days, so the cost to that is becoming very counterproductive.”

The discussion also touched on how to limit growth in project costs. While the WPF report notes Wisconsin’s road construction costs haven’t risen as much as the national level, Gottlieb said the state “has not been a leader” in innovating project delivery. That covers contracting for projects, managing risks between contractors and owners, and other factors.

“They’ve made some positive steps, but it’s been very slow,” he said. “And I would say, frankly, I mean we’re probably 10 or 20 years behind some of the more innovative states, in terms of how they deliver projects.”

While he acknowledged lowering costs isn’t a “silver bullet,” he said making changes in this area would help accelerate projects and better manage costs and risks.

Baas offered several ideas for generating additional revenue “right now,” including adding an inflationary component to the state gas tax and increasing registration fees. He also pointed to ideas for incorporating “vehicle miles traveled” or weight-based categories for registration.

“Those would have some administrative hurdles to cross, and probably don’t generate you that much immediately, but are worth looking at in the longer term,” he said. “That also would accommodate … how you capture revenue from alternative-fuel vehicles more effectively and fairly.”

Further out, he called the possibility of generating revenue through tolling an “intriguing thought,” but added “that’s not something that we’re going to be able to turn the switch on anytime soon, if at all.”

— The Brewers negotiated a proposed new lease with the district board that would keep them in Milwaukee through at least 2050 after the state a year ago approved a new $500 million package of taxpayer funds to cover maintenance at the stadium.

The Wisconsin Professional Baseball Park District meets today to take up the proposal and could take action on it then.

Many of the provisions in the proposed lease were already spelled out in the legislation, including the length of the extension, calls for $25 million to winterize the stadium, future studies on capital needs and the team’s investment of $50 million for work at American Family Field.

The proposed lease includes a new provision in case the team fails to pay rent because it is unable to play one or more games due to a labor stoppage, either due to a strike, a lockout or other event.

While such an event would qualify as a default, the provision would allow the team the right to fix that under terms that would include allowing all unpaid rent and team deposits to be made — without penalty or interest — within four years of the labor event concluding or when the lease ends, whichever is earlier.

— The Wisconsin Farmers Union has re-elected Westby dairy farmer Darin Von Ruden as its president during its 94th annual convention.

He leads the WFU Foundation Board of Directors and is the secretary for the National Farmers Union Board of Directors. His son, Brett, recently took over the 50-cow dairy farm, representing the fourth generation of family ownership.

Von Ruden addressed more than 200 attendees over the weekend at the convention in Wisconsin Dells.

“Our work isn’t just about agriculture — it’s about building a future where communities thrive, where family farmers are supported, and where everyone has access to fresh, nutritious food,” he said in a statement. “This vision depends on all of us working together.”

Delegates also voted in favor of prioritizing five “special orders of business” for 2025. These include: concentration in agriculture; quality health care in the state; continued and expanded funding for a local food purchasing program; fighting climate change in farming; and a resolution to create “fair maps” from a nonpartisan procedure for preparing legislative and congressional redistricting plans.

See more in the release.

— The enrollment deadline for HealthCare.gov coverage that starts Jan. 1 has been extended to today as sign-ups in Wisconsin are lagging last year’s open enrollment period.

The Centers for Medicare & Medicaid Services pushed back the deadline from Dec. 15 to Dec. 18 to obtain marketplace coverage starting Jan. 1 on HealthCare.gov. The move comes with several weeks left in this year’s open enrollment period for 2025 health insurance plans, which ends Jan. 15.

As of Dec. 4, the latest date covered in the most recent CMS update, Wisconsin has had a total of 88,189 plan selections so far in this year’s open enrollment, including both new consumers and actively returning consumers. Around this point last year, Wisconsin had 99,950 sign-ups, according to a Dec. 6, 2023 snapshot from the agency.

This trend is reflected in the national figures as well, as CMS reports just under 5.4 million plan selections for 2025 coverage so far in this year’s open enrollment period. At this point in 2023, that figure was about 7.3 million. In both cases, the majority of plan selections have been returning customers.

Wisconsin is among the 31 states that use the HealthCare.gov marketplace, while others use state-based marketplaces.

See the latest CMS snapshot and get more info on open enrollment.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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