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Jan. 10, 2003

While we assume that everyone enjoyed our Tidbits holiday hiatus, there is somewhat of a news backlog requiring a longer than usual report for this week. The Doyle inauguration was eventful if for no other reason than Wisconsin citizens have turned over the reins to a new Governor after a 16-year Thompson-McCallum reign. Somewhat underplayed to date, however, is the significance of the Senate flip to the Republicans, giving that party control in both houses.

There remains a bipartisan tone between Governor Doyle and the Legislature in the preliminary discussions on how to balance the budget. However, Doyle’s withdrawal of 127 Thompson/McCallum appointments created some partisan tension last week. While most of these appointments were stalled in the Democrat-controlled Senate, it should be noted that Doyle did not withdraw over 70 pending Republican appointments. Furthermore, hold-over appointments (Republican reappointments previously confirmed) remain seated until replaced with Senate confirmed appointments. (See more, below)

Wisconsin Politics

“New Day” Theme for Doyle Inauguration
Former Attorney General Jim Doyle was sworn in as Wisconsin’s 44^th Governor on Monday, Jan. 6. Doyle, a Democrat, defeated incumbent Gov. Scott McCallum in November. The theme for Doyle’s inaugural events was “A New Day for Wisconsin.” In his inaugural speech, Doyle indicated how he was struck by the awesome responsibilities, challenges and opportunities that face the new Administration. He also highlighted the budget challenges and the need to work in a bipartisan fashion to get the state’s finances back on track. Doyle also laid out his top priorities for his term, which include:

• Making sure kids go to even better schools and universities.
• Helping create good, high paying jobs.
• Not raising taxes.
• Helping usher in new high tech and information-age businesses.
• Keeping citizens safe on the streets and in neighborhoods.
• Protecting Wisconsin’s environment.
• Listening carefully for the quiet voices – seniors, those in desperate need of health care, and fellow citizens held back by poverty.

During the inauguration, Doyle’s son Gabe read a poem that was one of the more memorable moments.

See the Governor’s new website for further information on the new administration.

Doyle Cabinet Almost Complete
Governor Jim Doyle spent the last couple weeks of 2002 and the first week of 2003 solidifying his administration team. Doyle has appointed cabinet secretaries for all agencies with the exception of the Dept. of Financial Institutions, the Office of the Commissioner of Insurance, and the Dept. of Regulation and Licensing, which should be announced in the near future (Doyle has indicated a desire to eliminate the Dept. of Electronic Government).

• Frank Busalacchi, Secretary, Dept. of Transportation. Secretary Busalacchi most recently served as the Secretary–Treasurer of Teamsters Local 200. He is also a member of the Southeast Wisconsin Regional Planning Committee, Greater Milwaukee Committee, and served as the Construction Committee Chairman for the Miller Park Baseball stadium project (appointed by former Gov. Tommy Thompson). Click here for more on Secretary Busalacchi
• Scott Hassett, Secretary, Dept. of Natural Resources. Secretary Hassett was a law partner at Lawton and Cates, S.C. His experience includes civil, criminal and employment litigation cases and environmental litigation cases on issues ranging from toxic torts to groundwater pollution. Click here for more on Secretary Hassett.
• Cory Nettles, Secretary, Dept. of Commerce. Secretary Nettles, an attorney with Quarles & Brady in Milwaukee, specializing in product liability and commercial litigation. Nettles also developed significant expertise on the Wisconsin Lemon Law representing several auto manufacturers. Click here for more on Secretary Nettles.
• Burnie Bridge, Chairwoman, Public Service Commission. Commissioner Bridge most recently served as the Deputy Attorney General at the Wisconsin Dept. of Justice. Prior to her 17 years in the Dept. of Justice, she was an attorney in the private sector.
• Rod Nilsestuen, Secretary, Dept. of Agriculture, Trade and Consumer Protection. Secretary Nilsestuen served as the President and CEO of the Wisconsin Federation of Cooperatives. He also headed the Minnesota Association of Cooperatives, which has worked in an alliance with the Wisconsin association. Click here for more on Secretary Nilsestuen.
• Roberta Gassman, Secretary, Dept. of Workforce Development. Secretary Gassman has been the President of Gassman Communications & Public Affairs, providing strategic and external relations for several Madison area businesses.
• Antonio Riley, Executive Director, Wisconsin Housing and Economic Development Authority. Antonio Riley has served in the Wisconsin Legislature representing the 18th Assembly District since 1993. As a legislator, Riley served on the Joint Finance, Energy and Utilities, Education, and Transportation committees.

Withdrawal of Unconfirmed Appointments Draws Republican Ire
On Monday, Jan. 6, Gov. Doyle withdrew 127 appointees from the McCallum and Thompson administrations, drawing the ire of Senate Republicans. Appointments that were withdrawn include those to the UW Board of Regents, Natural Resources Board, Prison Industries Board, Banking Review Board, and the Wisconsin Technical College System Board, among others. Doyle let stand over 70 pending Republican appointments.

The appointments, made under the Thompson and McCallum Administrations, were never confirmed by the State Senate. Senate Majority Leader Mary Panzer, with Senate President Alan Lasee and Assistant Majority Leader Dave Zien, immediately sent a letter to Gov. Doyle asking him to allow the Republican appointees to remain. Panzer blames former Senate Majority Leader Chuck Chvala for failing to confirm the Republican appointees, saying he abused the confirmation process so the nominations never came up for a vote. Doyle gave no indication that he would change his position on the appointments.

Doyle and Panzer Share Power on Key Appointments
Many reports on the Doyle withdrawal of Thompson/McCallum appointees failed to sufficiently acknowledge the intricate appointment process that many in many respects mitigate the short-term impacts of Doyle’s actions. For example, despite being withdrawn, hold-over appointments (reappointments previously confirmed) remain seated until replaced with Senate confirmed appointments.

In general, the gubernatorial authority to appoint members of boards and commissions is conditioned by certain checks and balances written into the statutes. The statutes often prescribe, for example, that members be appointed for staggered fixed terms under the basic policy that citizen boards have a level of political and operational continuity from one administration to the next and are not subject to wholesale replacement in any given four-year gubernatorial term. Under normal circumstances, an incoming governor has the opportunity to appoint the majority of a board membership by the third year of the first term. However, given the number of Thompson/McCallum appointees who were not confirmed by the Senate, these are not normal circumstances and Governor Doyle may be able to make more initial appointments in his first year than the normal cycle would suggest.

The statutes also prescribe which board appointments require Senate confirmation.  The Senate confirmation process constitutes the primary check and balance in the appointment process and how it is used has significant bearing on when a gubernatorial appointee may take office, if at all.

The general rules of thumb relating to gubernatorial board appointments requiring Senate confirmation are as follows:

• If a vacancy exists, the Governor can nominate an individual to the board subject to Senate confirmation. That individual is considered a “provisional appointee” and does not need Senate confirmation before beginning to serve but can be withdrawn by the Governor prior to Senate confirmation or rejected by the Senate. Withdrawal by the Governor or rejection by the Senate causes a vacancy in the office.
• Expiration of a fixed term does not necessarily create a vacancy in the office.  A Senate confirmed board member may continue to serve beyond the expiration of a fixed term until the successor nominated by the Governor is confirmed by the Senate. 
• “Hold-over” appointees (previously confirmed members who have been re-nominated for a successive term but not yet confirmed for that successive term) may be withdrawn by the Governor but withdrawal does not create a vacancy in the office. The hold-over appointee may continue to serve on the board until the Senate confirms his or her successor. 

The Natural Resources Board is a good example how each of these rules work. Board member and Thompson nominee for re-appointment Cathy Stepp resigned following her election to the Senate. McCallum replaced her with David Ladd in late 2002. Doyle withdrew Ladd’s appointment, and since he was never confirmed, created a vacancy for his “provisional appointee,” who will immediately sit on the Board at the time of Doyle’s appointment. On the other hand, sitting Board members and Thompson nominees for re-appointment Herbert Behnke and Dan Poulson were previously confirmed. Thus, despite being withdrawn by Doyle, these hold-over appointees continue to serve on the Board until the Senate confirms their successor. Finally, previously confirmed and current Board members Jim Tiefenthaler and Steve Willett will continue to serve past their May 1, 2003 term expiration until the successor nominated by the Governor is confirmed by the Senate.

The bottom-line: Doyle is in a position to appoint five of the seven Natural Resources Board members by as early as May 1, but Republican Senate Majority Leader Mary Panzer will have a significant say as to when or if four of the five will find a seat on the Board.

Doyle Authorizes Suit to Block Caucus Legal Fees
Gov. Jim Doyle has officially authorized Attorney General Peg Lautenschlager to take legal action to stop the payments of any legal fees and expenses for state employees relating to the ongoing caucus investigation. Doyle also authorized the recovery of any such fees that have already been paid by the State, which total nearly $700,000. Doyle attempted to do this in his role as Attorney General; however, former Gov. Scott McCallum denied that request.

Wisconsin Legislature Will Have its Own “New Day”
New Leadership in both houses also took their places in history on Monday, Jan. 6. Rep. John Gard (R-Peshtigo) was elected Speaker of the Assembly for the 2003-04 Legislative Session and Senate Majority Leader Mary Panzer (R-West Bend) took over the helm of the Senate for the first time on Monday. Senate Republicans are in the majority in both house for the first time since 1996.

Senate Vacancies Give Republicans Temporary 18-13 Majority
There will be several Special Elections taking place this spring with the legislative vacancies created by cabinet appointments, as well as Sen. Rick Grobschmidt’s (D-South Milwaukee) decision to leave the Senate to become an Assistant Superintendent in the Dept. of Public Instruction. Upon the call of the Governor, special elections will take place in the following legislative districts:

• Senate District 7 – Vacancy created by Sen. Grobschmidt. District covers South Milwaukee. Rep. Jeff Plale (D-South Milwaukee) has announced he will run for election to that seat, which will create a vacancy in the 21st Assembly District if he is elected.
• Senate District 24 – Vacancy created by Kevin Shibilski, now Secretary of the Dept. of Tourism. Possible candidates include Rep. Julie Lassa (D-Plover) and Portage County Democrat Alex Paul. This district includes portions of Adams, Waushara, Portage and Wood counties.
• Assembly District 18 – Vacancy created by Antonio Riley, now Executive Director of the Wisconsin Housing and Economic Development Authority. This district encompasses a portion of the City of Milwaukee.

Policy Developments

Doyle Returns Agency Budget Requests
Governor Jim Doyle this week directed his cabinet secretaries to resubmit their agency budget requests at significantly lower figures. Doyle also asked his cabinet to look for duplication in state programs and opportunities for consolidation. Initial agency requests in the first year of the 2003-05 biennium were higher than the first year of the 2001-03 biennial budget. While state fiscal analysts have predicted the 2003-05 deficit to be $2.6 billion, Doyle believes it could be closer to $4.3 billion. In Doyle’s press release, he states that his budget will "spend less money – in actual GPR dollars – than last year’s budget."

Doyle is expected to deliver his budget message to the Legislature on Tuesday, Feb. 18. Under current law, the budget message should be presented on or before the last Tuesday in January. However, Doyle has formally made a request to the Legislature for the delay, which as a matter of courtesy, will be granted.

On a related budget note, Gov. Doyle met with legislative leaders on Thursday, Jan. 9 to discuss the budget. The consensus coming out of that meeting is that there will be no non-fiscal policy initiatives contained in the upcoming biennial budget bill. They did not, however, determine the parameters of non-fiscal policy items and Doyle admitted that would be a “gray area.”

Legislative Committee Assignments
Sens. Panzer and Erpenbach have completed the Senate Committee assignments. They are as follows:

• Agriculture, Financial Institutions and Insurance: Schultz (chair), Brown, Kedzie, Robson, Hansen.
• Economic Development, Job Creation and Housing: Stepp (chair), Roessler, Brown, Moore, Meyer.
• Education, Ethics and Elections: Ellis (chair), Fitzgerald, Reynolds, Stepp, Jauch, Robson, Hansen.
• Energy and Utilities: Cowles (chair), Lazich, Leibham, Wirch, Meyer.
• Environment and Natural Resources: Kedzie (chair), Stepp, Zien, Risser, Wirch.
• Health, Children, Families, Aging and Long-Term Care: Roessler, Kanavas, Brown, Welch, Schultz, Robson, Chvala, Jauch, Carpenter.
• Higher Education and Tourism: Harsdorf (chair), Schultz, Cowles, Breske, Chvala.
• Homeland Security, Veterans and Military Affairs and Government Reform: Brown (chair), Zien, Fitzgerald, Wirch, Breske.
• Judiciary, Corrections and Privacy: Zien (chair), Fitzgerald, Stepp, George, Carpenter.
• Labor, Small Business Development and Consumer Affairs: Reynolds (chair), Kedzie, Zien, Decker, Hansen.
• Transportation and Information Infrastructure: Leibham (chair), Kanavas, Kedzie, Breske, Meyer.
• Joint Administrative Rules: Leibham (co-chair), Welch, Lazich, Robson, Carpenter.
• Joint Audit: Roessler (co-chair), Cowles, Darling, George, Hansen.
• Joint Finance: Darling (co-chair), Welch, Fitzgerald, Harsdorf, Kanavas, Lazich, Decker, Moore.
• Joint Legislative Council: Lasee, Panzer, Darling, Welch, Harsdorf, Ellis, Lazich, Risser, George.
• Joint Retirement Systems: Schultz (co-chair), Reynolds, Wirch.
• Joint Tax Exemptions: Ellis (co-chair), Harsdorf, Decker.

Assembly Speaker John Gard also announced Republican Committee members, which can be viewed here. Assembly Minority Leader Jim Kreuser has yet to name Democratic members to the Committees.

Session Schedule Released
The proposed 2003-04 Legislative Session schedule was approved by the Legislature on Monday. Floor-periods are scheduled for Jan. 28-30, Feb. 18-20 and Mar. 11-20. Click here to view Senate Joint Resolution 1.

Controversial DNR Rules Being Finalized
The importance of the Natural Resources Board’s near-term makeup (discussed above) is accentuated by the likelihood that several controversial DNR initiatives will be before the Board in early 2003. For example, DNR’s contentious mercury (NR 446) and air toxics (NR 445) proposals may be presented to the Natural Resources Board for final adoption by spring of 2003. The mercury draft rule would require significant mercury emission reductions from major utilities and a cap on emissions at industrial facilities. The air toxics draft rule, among many other changes to the existing rule, would add diesel exhaust and coal dust to the State’s air toxic program. See Bob Fassbender's NR 445 update on our Web site.

Fox River Cleanup Plan Released
On January 7, DNR and the U.S. EPA released the Record of Decision on the plan for cleaning up polychlorinated biphenyl contaminated sediment from a 26-mile portion of the Lower Fox River. The controversial, costly, and long-awaited plan was immediately criticized by various groups.

Federal Developments

Asbestos Litigation Reform Tops Congressional Agenda
Senate Judiciary Chairman Hatch emphasized his desire to pass asbestos litigation-management legislation within a year. Sen. Christopher Dodd, D-Conn., who cosponsored asbestos bills in the 105th and 106th Congresses, confirmed that he, too, would play a role in trying to broker this year's deal. Along with senators Joseph Lieberman of Connecticut and Charles Schumer of New York, Dodd was among the few Democrats to cosponsor those earlier bills. Industry proponents of the latest version of asbestos reform are touting what they say is growing bipartisan support for a "docket management" measure limiting the right to bring legal actions to individuals who can demonstrate specific medical ailments. (See a recent Madison State Journal editorial on the need for reform)

Bush Unveils Stimulus Plan
President Bush is asking Congress to eliminate taxes on dividends, make all of the rate reductions in the 2001 tax cut effective this year, and increase the child tax credit from $600 to $1,000. Bush's stimulus plan also would reduce the "marriage penalty" this year instead of waiting until 2009, while immediately implementing the new 10 percent bracket called for under the 2001 law. The proposal contains little assistance for the business sector beyond a call to increase annual expense limits for small businesses from $25,000 to $75,000 and tie the cap to inflation. The package adds up to $98 billion in tax relief over the next 16 months and $670 billion over the next decade, according to the White House.

Environmental Initiatives Proposed
Incoming Senate Minority Leader Daschle, and incoming Environment and Public Works ranking member James Jeffords, I- Vt., introduced climate change legislation that would require companies to report greenhouse gas emissions and disclose to stockholders potential liabilities associated with climate change. The bill also would mandate that the federal government reduce its greenhouse gas emissions to 1990 levels by 2013 and would push the Bush administration to craft a binding international climate treaty. In addition, New York Republican Reps. John Sweeney and John McHugh introduced legislation Tuesday to reduce power plants emissions by 2012, in order to diminish the negative effects of acid rain on the environment and public health.

It also was reported that House Energy and Commerce Chairman Tauzin and the White House are close to a deal to quickly move the administration's controversial Clean Air Act reform bill through the House. The measure would create a new set of standards for controlling power plant emissions of nitrogen oxide, mercury and sulfur dioxide pollution. The so-called "Clear Skies" proposal enjoys general support from industry, but environmentalists and congressional Democrats have vowed fierce opposition.

Political News

Doyle OKs suit on legal bills: Madison Capital Times, Jan. 10, 2003. AG to try to recover $689,000.

No pet projects allowed in budget: Milwaukee Journal Sentinel, Jan. 10, 2003. Doyle, lawmakers vow to keep policy matters out of spending plan.

Ryan won't take on Feingold in run for Senate: Janesville Gazette, Jan. 9, 2003. He has no political ambitions beyond the House of Representatives--at this time.

GOP criticizes confidentiality agreement Doyle had transition workers sign: Janesville Gazette, Jan. 9, 2003. Signed by transition staff/volunteers but does not apply to administration officials.

State budget - First moves (opinion): Milwaukee Journal Sentinel, Jan. 9, 2003. The omens are good.

Doyle tells agencies to cut budget requests: Wisconsin State Journal, Jan. 8, 2003. Each department must re-submit budgets amounting to about $1 billion less in the first year.

Doyle criticized for overturning old appointments: Wisconsin State Journal, Jan. 8, 2003. Panzer: Rewards the obstructionist tactics of former Democratic majority leader Chuck Chvala.

Bush pitches tax plan: Milwaukee Journal Sentinel, Jan. 8, 2003. Democrats say proposal will benefit rich, blow budget.

3 to run for open seat on high court: Milwaukee Journal Sentinel, Jan. 8, 2003. Barron Co. Circuit Judge Edward Brunner, Dane Co. Circuit Judge Paul Higginbotham and state Court of Appeals Judge Pat Roggensack.

Budget crisis might be trump card in tribe's gaming compact negotiations: La Crosse Tribune, Jan. 8, 2003. Hoping new administration will offer longer gaming compacts and more options

PSC chief draws praise: Marshfield News Herald, Jan. 7, 2003. Both opponents and proponents of Arrowhead-Weston power line are applauding Gov. Doyle's appointment of Burnie Bridge.

DNR releases Fox cleanup plan: Appleton Post-Crescent, Jan. 7, 2003. Will allow the cleanup to begin this summer.

GOP says Doyle's off to a good start: Madison Capital Times, Jan. 7, 2003. Gard said that if Doyle holds to his campaign promises, they'll get along fine.

Doyle takes oath of office today: Wisconsin State Journal, Jan. 6, 2003. The first Democratic governor in 16 years will be sworn in during a ceremony in the Capitol rotunda beginning at noon.

Doyle builds Cabinet on legal foundation: Appleton Post-Crescent, Jan. 5, 2003. He expects to round out his team within a week.

Doyle setup same as it was in 1963: Wisconsin State Journal, Jan. 5, 2003. A Democrat as top executive and a Republican-controlled legislature.

Lawton ready for her role: Green Bay Press-Gazette, Jan. 5, 2003. Will take over Monday as the state’s second-highest officeholder.

Hot-button issues may test new leaders: Milwaukee Journal Sentinel, Jan. 5, 2003. New leaders in both parties promise to work together.

Doyle picks local activist for Cabinet: Madison Capital Times, Jan. 4, 2003. Administration hopes to promote economic development while helping individual people.

Doyle picks co-op vet as ag secretary: Madison Capital Times, Jan. 2, 2003. Nilsestuen aims to help farmers.

No Call List, agricultural tax credits in effect today: Green Bay Press-Gazette, Jan. 1, 2003. Businesses also may not intentionally block the Caller ID feature on telephones.

Hassett brings lawyer's acumen, enthusiasm for outdoors to DNR: Milwaukee Journal Sentinel, Dec. 29, 2002. First secretary from private sector faces many tough issues, from deer disease to cash crunch.