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Jan. 14, 2005

The setting of the stage for the 2005-06 legislative session  began to move forward as Governor Doyle delivered his State of the State this past Wednesday and previewed some of his priorities. Republican reaction was complimentary but cautious and emphasized some key areas of differences, at least in priorities.

The Legislature passed and expanded upon the Governor’s proposed debt restructuring, which should save the state substantial monies in interest payment reductions. While Republicans had considered immediate action to utilize those savings for either Medicaid deficit reduction or Tax credits for Health Savings Accounts (HSA’s), no action was taken this week. The Joint Finance Committee is, however, scheduled to act on the HSA issue next week and the full Assembly is expected to vote on the measure during the first full floorperiod week, beginning on Tuesday, January 25.

Policy Developments

Legislature Approves Bond Refinancing
A plan to refinance the state’s debt was unanimously approved  (30-0 in the Senate and 96-0 in the Assembly with 3 absent in each House) by the State Legislature on Jan. 12. The Legislature adopted two amendments and was able to increase the savings to $15.6 million in General Purpose Revenue over the next biennium, an increase over the savings projected under the plan initiated by the governor. Governor Doyle signed the measure as 2005 Act 1.

Underheim on Superintendent Ballot
On Thursday, January 13, the State Elections Board put State Rep. Gregg Underheim on the ballot for the nonpartisan Spring Election when it determined that he had obtained 14 more signatures than required by law. The Board did, however, refer signature collection issues to the district attorney for investigation based on new claims by the Democratic Party of Wisconsin. Officially, Underheim is on the ballot and any further challenge and resolution will be up to the courts.

PSC to Reopen Case on Power Plant Sale
The Wisconsin Public Service Commission recently announced its unanimous decision to hear new arguments on the sale of the Kewaunee Nuclear Power Plant. The reopened proceeding will allow all parties in the case, including those opposing the sale, to weigh in on the new conditions offered by Dominion Resources.

The Wisconsin utilities that jointly own the plant now - Wisconsin Power and Light Co. and Wisconsin Public Service Corp. - negotiated a power-purchase agreement with Dominion Resources of Virginia that they said would result in savings for their customers during the next nine years. In rejecting the proposal last month, the PSC expressed serious concerns about the loss of state oversight of the plant if the sale went through.

Child Passenger Safety Legislation Introduced
Two legislators this week introduced companion bills that will strengthen Wisconsin’s child passenger safety laws and better protect children on state roads. Rep. Jerry Petrowski (Marathon) and Sen. Carol Roessler (Oshkosh) recently held a press conference at the University of Wisconsin-Children’s Hospital in Madison to describe this new piece of legislation.

Business Day in Madison
Mark your calendars for Wednesday, February 23, for the day-long Business Day in Madison at Monona Terrace Convention Center.

Tony Snow will take the stage as the luncheon keynote speaker. He is the host of the "Tony Snow Show" on FOX News Radio and "Weekend Live with Tony Snow" on the FOX News Channel. Rich Galen, a Washington insider, will kick off the program during the opening session with "One-Party Control - What Does it Mean to the States?"

Two general sessions will be held, one on civil justice reform and the other a panel of the legislative leadership discussing the 2005-7 state budget. Governor Doyle and the secretaries of state departments will also have the mike, and there will be time to visit state legislators at the Capitol and meet them at a closing reception.

Governor’s Conference on Economic Development (Feb. 2 to 4)
Explore innovative financial, workforce, education and health care projects, programs and policies at the 2005 Wisconsin Economic Development Association's 10th annual Governor's Conference.

On Thursday, February 3, Keynote Speaker Governor Doyle will give a snapshot of the state's economic development successes and challenges followed by informational sessions that will address financial solutions and workforce development. Friday’s focus will be on health care with a diverse panel again in a solution mode.

Attendees are urged to attend the Kick-Off Legislative Reception at 5:30 on Wednesday, February 2^nd—and to invite their respective legislators to attend!

For more information or to register for the conference, go to Wisconsin Economic Development Association’s website.

Wisconsin Politics

State of the State Address: Wisconsin “On the Move”
Gov. Jim Doyle delivered his "state of the state" address to Wisconsin lawmakers Wednesday evening. He vowed to fix the state budget deficit without raising taxes, proposed to expand the BadgerRx program, and promised to "fully fund" state aid to local governments.

The Governor announced a series of new initiatives that, he said, will build on the progress of “Grow Wisconsin,” including:

• A worker training bill to give workers the skills they need to raise their income, and give businesses the trained workers they need to compete;

• Adequate and environmentally sustainable energy supply aided by a major new initiative on biofuels;

• A higher, statewide minimum wage of $6.50 an hour

Other initiatives the Governor has announced include a new $1.3 million investment in the state’s manufacturing extension partnership, creating a Wisconsin Entrepreneurs’ Network to help innovative new companies succeed, and launching a new effort to recruit more angel investment to help emerging businesses.

On property taxes, the governor re-affirmed that he is against TABOR and a property tax freeze, but says he'll propose putting a billion dollars into the homestead credit and school levy credit. He also wants bonuses for cities and towns that keep property taxes in check.

Wisconsin faces a projected $1.6 billion shortfall for the two-year period through June 30, 2007, because expected revenues do not cover requested spending by state agencies. Fixing that shortfall will require spending cuts, tax increases or both.

Reaction from Sen. Schulz/Speaker Gard
Senate Majority Leader Dale Schultz (R-Richland Center) complimented Gov. Jim Doyle on his theme to move Wisconsin forward, but he said he has serious questions about how the Governor plans to pay for his ideas.

Schultz said Senate Republicans are willing to work with Doyle on the areas of healthcare, education, and jobs. Their top priorities, however, are getting rid of the state’s deficit and lowering the tax burden for property taxpayers.

Assembly Speaker John Gard credited the Governor with his involvement with private sector job growth but cited property taxes as the “big Achilles heel” for the Governor. The Speaker added, however, that he and the Governor have been talking more about key issues than they have in the past.

Republicans also characterized the proposed increase in the minimum wage as too high.

Political News

State of the state is suspense until February (opinion): Appleton Post-Crescent, Jan. 14, 2004.

Green’s governor talk stirs political pot for would-be successors: Green Bay Press-Gazette, Jan. 14, 2005.

Only ‘we’ can make progress (opinion): Green Bay Press-Gazette, Jan. 14, 2005.

If it isn’t for the publicity, why is AG prosecuting case? (opinion): Green Bay Press-Gazette, Jan. 14, 2005.

Refinance plan to save state $19M: Appleton Post-Crescent, Jan. 14, 2004.

State board keeps Underheim on ballot for superintendent: Milwaukee Journal Sentinel, Jan. 14, 2005

Doyle wants to hold line on school aid: Milwaukee Journal Sentinel, Jan. 13, 2005.

A Wisconsin to-do list (opinion): Milwaukee Journal Sentinel, Jan. 13, 2005.

Green tests water early for 2006 Republican gubernatorial bid: Appleton Post-Crescent, Jan. 13, 2004.

Doyle’s plans draw mixed reactions: Manitowoc Herald Times, Jan. 13, 2005.

State will reconsider Kewaunee plant sale: Milwaukee Journal Sentinel, Jan. 14, 2005.

Lawyers to fund legal help for poor: Milwaukee Journal Sentinel, Jan. 13, 2005.

Tribal casino at Hudson nixed by Supreme Court: Sawyer County Record, Jan. 12, 2005.

State’s first black Supreme Court justice offers civil rights history: Appleton Post-Crescent, Jan. 11, 2005.

High court declines to hear casino appeal: Appleton Post-Crescent, Jan. 11, 2005.

Wisconsin jobs hit hard by imports, report says: Milwaukee Journal Sentinel, Jan. 11, 2005.

Job loss locally is tough, but there is hope on the horizon (opinion): Fond du Lac Reporter, Jan. 11, 2005.

Gard drops demand to use savings for health care accounts: Janesville Gazette, Jan. 11, 2005.

Jauch, Sherman set legislative priorities: Ashland Daily Press, Jan. 10, 2005.

Doyle gets OK marks, but residents expect more: Green Bay Press-Gazette, Jan. 10, 2005.

Wisconsin Angel Network is part of state’s focus on entrepreneurship: Wisconsin Technology Network, Jan. 10, 2005.

Upcoming Fundraisers

Tuesday, Jan. 18

• State Senate Democratic Committee, Milwaukee

• Sen. Tom Reynolds (R-West Allis), West Allis