Several state representatives proposed an amendment Wednesday to change funding sources for a bill that would establish a regional transit authority between Milwaukee, Kenosha and Racine. The amendment would also establish that only Milwaukee would have a local transit authority.

Gov. Jim Doyle, along with the state Legislature, created the Southeastern Regional Transit Authority last July to oversee the development of a commuter rail service between the three cities.

The bill also calls for the establishment of local transit authorities in each of the three counties and allows for local jurisdictions to join together to create joint transit authorities. Funding for these transit authorities could come through a .5 percent sales tax increase in Milwaukee County, rental car fees, room taxes for hotels and imposing a local motor vehicle registration in the other jurisdictions.

The amendment to the bill keeps the option of a sales tax increase for Milwaukee, however the plans for separate Racine and Kenosha transit authorities funded through rental cars, room taxes and vehicle registration would be dropped. The Racine and Kenosha transit systems would be merged with SERTA while Milwaukee would create its own Milwaukee Transit Authority that would also eventually merge with SERTA.

All transit revenues raised in each county would remain in that county under the amendment.

Kevin Benish, spokesperson for Rep. Tamara Grigsby, D-Milwaukee, said the substitute amendment would strengthen the overall bill, as well as the federal application for funding.

“It streamlines the process so that revenue raised in a county will stay in that county,” Benish said. “It’s a guarantee that taxpayers will receive direct benefits from their tax dollars.”

The amendment would also allow SERTA to give “incentive funds” to the cities of Kenosha and Racine if they commit revenues to support their own local transit services. Legislators hope the improved transit services in these communities will strengthen the state’s federal application for the KRM commuter rail line.

Trisha Pugal, president of the Wisconsin Innkeepers Association, said the organization is pleased with the amendment changes, especially the removal of the room tax, which was cause for concern in the initial bill.

“[The room tax] would greatly impact our competitive opportunities with other states to attract tourists,” Pugal said. “We are very much in support of the change in eliminating the room tax.”

Pugal said it is too soon to tell if her group will decide to endorse the RTA legislation, however she believes the creation of a transit authority “could be a very nice enhancement to the area.”

Milwaukee County Board Chairman Lee Holloway and Milwaukee County Board Supervisor Michael Mayo released a joint statement Wednesday in which they expressed their approval of the amendment.

“The [RTA] legislation currently being considered by the Assembly and the Senate creates opportunities to increase transit service, lower bus fares, connect more people to jobs and provide property tax relief,” the statement said. “We are pleased to see the State Assembly taking concrete steps to advance the RTA proposal through the legislative process.”