MADISON, Wis. -- Gov. Jim Doyle's administration has asked contractors to suspend work on the high-speed rail line from Madison to Milwaukee while officials study the potential impact of stopping the project.

State Department of Transportation Secretary Frank Busalacchi said the suspension would last while the agency studies "the real world consequences, including the immediate impacts to people and their livelihoods, if this project were to be stopped."

Busalacchi said the suspension would last for "a few days."

Although Busalacchi said the stoppage is only temporary, a source told WISC-TV that at least 300 people working on the project were let go Thursday.

The source, who asked to remain anonymous, said that some 300 designers, engineers and consultants working on the project in Milwaukee were told to pack up their things and go home, that work on the project was done, and the building is now empty.

Busalacchi's statement comes two days after Republican Scott Walker was elected governor to replace Doyle, a Democrat.

Walker has vowed to follow through on his campaign promise to kill the $810 million project, which will be funded by federal stimulus dollars.

He called the development a victory for his campaign and a step in the right direction.

"The whole reason we made a plan of raising our concerns about this is I don't want the taxpayers of this state stuck with a bill of anywhere from $7.5 to $10 million or more a year for a rail line when we have roads and bridges that need to be fixed today. Certainly we are going to continue to put our focus on our crumbling roads and bridges," Walker said.

Walker said he is pursuing options to stop the train between now and when he is sworn in.

"Certainly we've been pursuing legal options that would give us the right between now and Jan. 3rd to try and slow down, if not stop the train," Walker said.

Doyle didn't make a public comment on the rail news Thursday. Walker said he'd plan to talk to the governor and others about their actions next week.

Doyle has tried to lock the project in place before leaving office.

Edward Kraemer & Sons Inc., a construction company hired to work on the line, said in a statement late Thursday that it is looking forward to working out details of the project with the current and new administration.

The suspension comes after years of work to secure the project. It has been in the works since about 1993, when then-Gov. Tommy Thompson committed $50 million to build a passenger rail between Milwaukee and Madison.

In October 2009, the state DOT submitted an application for stimulus money to build a high-speed rail line.

In January 2010, the $810 million in stimulus money was approved. In July, Doyle announced that the Madison train station will be located near the Monona Terrace Convention Center.

This week, state leaders signed a deal with the federal government committing the state to spend all $810 million on the project.

Madison Mayor Dave Cieslewicz, a supporter of the rail project as well as the rail station in Madison, said Thursday he doesn't believe the project is dead yet, and he hopes that even with Walker in the governor's office that high-speed rail can be a reality.

Cieslewicz said he met with Doyle earlier on Thursday and discussed the governor's decision, which the mayor said he respects. He added that it's not a bad idea for Doyle and Walker to slow down, take a breath and examine how to move forward.

The mayor said he hopes those elected can put partisan politics aside and continue the project because of the jobs it will bring to Madison.

"Look, the governor's the governor for the next two months. That gives us plenty of time to discuss this and to make our case, rally the business community, which has been strongly supportive of this because it creates jobs, and I'm appreciative of the fact that we've got the time to do that," Cieslewicz said.

The mayor said he doesn't see Doyle stopping the project. Cieslewicz said he has reached out to Walker to discuss the matter, saying Walker ran his campaign on creating jobs and turning the federal funds away would turn jobs away as well.

"Gov.-elect Walker has talked about jobs and economic development as his primary focus. I applaud that. That's absolutely right and he should be saying that. This is an opportunity to create jobs right away and it will benefit the whole state," Cieslewicz said.

He said the rail would not only create jobs but also help fuel downtown redevelopment.

"What I wanted to do is just take a moment, consider this and what it could mean to the state if we move forward, (and) understand what it'll mean if we turn the money back, and give us an opportunity to make our case," Cieslewicz said.

Businesses in downtown Madison that are set to benefit from the rail are also reacting to the project's suspension.

At the Great Dane Pub & Brewery, general manager Kristin Jorgenson said the downtown location stands to gain a lot with the high-speed rail line from Milwaukee making a stop just steps from the restaurant's door.

"We were upset (by the news) because we were truly embracing the idea of having a train come, especially to downtown Madison," Jorgenson said. "We've been generally doing a steady $5 million in sales a year downtown, so to have more foot traffic day and night would definitely increase our sales. We're still very hopeful it will happen."

The downtown Great Dane is also keeping an eye on the proposed public market square, which would be located next door to the restaurant.

A representative for the Monona Terrace Convention Center said it would also benefit, especially with the line's future Madison hub set to be located nearby at 1 W. Wilson St.

"While we've had no confirmation of the status of the project, we would be disheartened to see the project not happen," said Fran Puleo, manager of community and public relations for the Monona Terrace Convention Center.

Puleo said that while a study to determine the economic impact has not yet been done, what is known is the incoming traffic would be great.

"Just for the great attribute that it would bring to the downtown area -- more visitors (and) potentially more convention and meeting business for us," Puleo said. "We just hope the project goes through as originally intended, and Monona Terrace will do whatever we can to support it."

Meanwhile, Milwaukee Mayor Tom Barrett said the decision to suspend work on a Wisconsin high-speed train line could end up costing jobs in Milwaukee.

The trains were to be built by Spanish-based Talgo Inc. The company built its Wisconsin headquarters in Milwaukee, where it planned to create 125 jobs.

Barrett said Thursday those jobs may be in jeopardy. He said Talgo will have 40 hires by Nov. 30, and the company has enough work to keep it in Milwaukee through the spring of 2012, but future prospects are now uncertain.

Barrett also said if the project is killed he doesn't want to see the stimulus funds behind it to go to another state. Barrett lost to Walker in the Wisconsin governor's race Tuesday.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.