Gov. Doyle's administration and the two counties have reached a financing proposal that involves a $4 million grant.
The grant would serve as collateral to help the airline get access to credit from conventional lenders.
Overall, the proposal has Midwest providing nearly $18 million in cash and property as collateral and Milwaukee County taking on a $14.3 million letter of credit.
The letter of credit would support bonds financing some Midwest airport hangars, should the airline default on its bond payments.
Midwest CEO Timothy Hoeksema says the proposal minimizes the risks to taxpayers. The airline says there's more than enough collateral to guarantee payments on the debt.
Both the Racine and Milwaukee county boards must still approve the proposal.