$6 million in federal funds for KRM withdrawn

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http://www.jsonline.com/news/milwaukee/6-million-in-federal-funds-for-krm-withdrawn-130954193.html

Money can't be used for Milwaukee streetcar


By Larry Sandler of the Journal Sentinel

Some $6 million in federal transit aid is likely heading for a project outside Wisconsin, after a federal decision that the money can't be used for Milwaukee or Kenosha streetcar lines instead of a defunct commuter rail plan.

At the same time, controversy over utility costs could increase pressure to shift the route of Milwaukee's planned downtown streetcar line, city officials say.

Congress earmarked the $6 million for the KRM Commuter Link, a commuter train line that would have connected Milwaukee to Kenosha, Racine and the southern suburbs.

But the Legislature effectively killed the KRM by dismantling its parent agency, the Southeastern Regional Transit Authority.

At its last meeting, the RTA asked the federal government if the money could be used for the bus systems within its three-county area. But the Federal Transit Administration turned down that request, saying the money was earmarked to plan construction of a new public transit project, not to help operate existing buses.

The Southeastern Wisconsin Regional Planning Commission then asked if the money could be redirected to streetcar lines. Milwaukee is planning a $64.6 million modern streetcar line downtown.

Kenosha last year won $4.2 million in federal funding for a $5.25 million expansion of its vintage streetcar line, although that plan has been sidelined as Kenosha Transit grapples with state and federal aid cuts.

But federal officials said recently that neither streetcar line would qualify for the funding, because neither went through the federal "new starts" process, said Ken Yunker, planning commission executive director.