Local electeds weren't able to throw together a design for a Regional Transit Authority to run area transit systems in time to jam it through the state budget.
An RTA might be the way to go to deal with transit's funding woes, (although why some of the bloat in the Wisconsin Department of Transportation could not be redirected into something useful, like funding transit, is beyond me). Trying to cram RTA legislation -- which could very well contain new taxes or at least the mechanism to create them -- into an already super-contentious budget that is already bogged down in conference committee would be disastrous and pointless. The entire budget process (whatever part of it is still functioning) likely would come to a halt. It's not like an RTA will be up and running the day after it is approved. It will take time to establish, coordinate and staff. It's very possible that it wouldn't be in existence in time to stave off 2008 rate increases, anyway.
Worse, though, is that transit riders would be shut out of the creation of the RTA.
Better to do this slowly and well than rush and have an ill-conceived, poorly-functioning agency that does not have public support.