A $16 rental car fee proposed to fund the proposed Kenosha-Racine-Milwaukee commuter rail line would grow by an additional $2, under a state budget tweak that Assembly Democrats made Thursday.

The additional money would go toward supporting bus service in Kenosha and Racine, with each city’s transit operation receiving $1 per rental car transaction.

Rep. Peter Barca, D-Kenosha, said the change was a response to the Federal Transportation Authority’s desire to see revenue streams dedicated specifically to transit.

Kenosha and Racine could not receive the funds, however, unless they provide a local match.

As such, Kenosha Area Transit Director Len Brandrup had a mixed reaction to the change.

Brandrup has favored a sales tax model, which proponents say is a more stable source of transit funding.

“We’re very proud that the Assembly recognizes the needs for (regional transit authority) legislation, and that this is an issue that is at the forefront of their thinking,” Brandrup said. “I’m disappointed that the mechanisms provided for Kenosha and Racine will not allow us to grow the systems and make them truly regional in perspective.”

If ultimately adopted, the increase would raise the fee on rental car transactions in Kenosha, Racine and Milwaukee counties to $18.

Gov. Jim Doyle originally proposed to allow the three counties to set up a regional transit authority that would be able to collect up to a 0.5 percent sales tax to fund all transit operations.

But the Joint Finance Committee voted last month to instead create a Milwaukee County-only transit authority that could levy a 1 percent sales tax to pay for buses and other expenditures, such as parks and emergency services. Meanwhile, the committee urged the $16 rental car fee to pay for KRM.

As part of Thursday’s changes, Assembly Democrats reduced the 1 percent Milwaukee tax to 0.65 cents, with half going to buses and the rest to municipalities for police and fire services.