Arena funding needs to take back seat, Walker says

School financing, UW System cuts take priority

Gov. Scott Walker said Wednesday that legislative consideration of a financing plan for a new arena in downtown Milwaukee will have to wait until other big-ticket issues such as K-12 school funding and cuts to the University of Wisconsin System are dealt with first.

Walker’s comments came after a new Legislative Fiscal Bureau report showed there won’t be any additional money from tax collections to ease anticipated budget cuts during the next two years.

“It will take us some time. Right now, as you might imagine, until we resolve some of these other issues, dealing with the schools and any other big adjustments in the budget, I think the Legislature will be reluc-

tant to sign off on any final plan until we know where we’re at in terms of covering public education,” he said.

Speaking to reporters after a memorial ceremony honoring fallen law enforcement officers at the Milwaukee Theatre, the governor said he remains hopeful an arena financing plan will be agreed to over the next few weeks, but not until other decisions are made on the budget.

The two-year budget requires approval of both legislative houses and Walker’s signature before it can take effect July 1.

Walker conceded the revenue numbers complicated efforts to get an arena financing plan. “No doubt about that,” he said. He said the “clear sentiment” after talking to legislative leaders is “we want to resolve those big issues first.”

Representatives of the Milwaukee Bucks, the city, the county, legislative leaders and members of Walker’s staff have been meeting all week, and met on Wednesday in Madison. Walker provided no update on whether any progress was being made.

There was no immediate comment from the Bucks, or city and county officials.

The bucks hope to build a $500 million arena, one that would be a 50-50 public-private partnership. From the Bucks side, co-owners Wes Edens and Marc Lasry have pledged $150 million, while former Sen. Herb Kohl, who sold the team to the New York investors for $550 million, has committed $100 million.

The public side is more problematic. Walker initially suggested the use of $220 million in appropriation bonds as the state portion of the financing plan. But Republican leaders balked, suggesting the number needed to come down.

Senate Majority Leader Scott Fitzgerald (R-juneau) has suggested getting a $150 million loan from the Board of Commissioners of Public Lands, though that number has not been agreed upon.

Mayor Tom Barrett has pledged assistance of just over $25 million in the form of a city-owned parking lot at the corner of N. 4th St. and W. Highland Ave., a city-owned parcel in the Park East corridor and $17 million in infrastructure near the arena site just north of the existing BMO Harris Bradley Center.

County Executive Chris Abele has not discussed in detail what kind of assistance the county can provide.

Don Walker is on a fellowship established through Marquette University Law School’s Sheldon B. Lubar Fund for Public Policy Research. The fellowship is aimed at providing support for journalism projects on issues of civic importance. All the work is done under the direction of Journal Sentinel editors.