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Jan. 24, 2003

Wisconsin Politics

Doyle Calls Special Session to Address Growing Budget Deficit
Gov. Jim Doyle announced this week that he will call a Special Session to address the current fiscal year deficit, which now totals $452 million ($373 million deficit, $64 million in shortfalls in MA and BadgerCare, and a $15 million shortfall in Corrections). Doyle, in his press release, stated that the emergency budget bill, which will be introduced next week, will identify $161.5 million in immediate savings.

Revised Legislative Fiscal Bureau revenue estimates, which were released on Thursday, prompted Gov. Doyle to announce the Special Session. The Fiscal Bureau predicts that the state’s general fund will have $656 million less in the 02-03 fiscal year and 03-05 biennium than what was projected last November. The Fiscal Bureau also projects that the state will see a deficit of $3.2 billion over the next two years.

Elements of Doyle’s emergency budget bill include:

·         5 percent reduction from current funding levels in state agency operations, legislative operations and UW administrative spending.

·         5 percent reduction in program revenue (PR) and segregated revenue (SEG) state operations appropriations and transfer of the savings to the general fund, including $7 million from the Dept. of Transportation operations.

·         Reduction of discretionary grants, including:

o        $7 million from the Wisconsin Development Fund;

o        $5 million from the Brownfields program;

o        $2 million in tobacco control grants;

o        $1 million in tourism marketing

·         Transfers from other funds and accounts, including:

o        $15 million from the transportation fund

o        $5 million from the Office of the Commissioner of Insurance

o        $4.7 million from the public benefits program

o        $4 million from the forestry account funding for Stewardship debt service

o        $3 million from the Universal Service Fund

o        $3 million from the recycling fund

·         Provide $64 million to fully fund MA and BadgerCare.

Doyle has not set a date for the Special Session and indicated he is working with legislative leadership to do so.

Doyle Inaugural Proceeds Benefit Boys & Girls Club
Gov. Jim Doyle announced this week that the Boys & Girls Club of Wisconsin would receive $233,000 as a result of fundraising efforts coordinated with his inauguration. The money will be used to enhance the Character and Leadership Development Programs of Wisconsin Clubs. Doyle is the first Wisconsin governor to use his inaugural to raise money for a non-profit organization.

Policy Developments

Assembly and Senate Set to Convene
Both the Assembly and Senate will be on the floor, Tuesday, Jan. 28, 2003.

The Assembly, which will meet at 11:00 a.m., will take up Rep. Mark Gundrum’s "pay to play" bill - AB-1, and AB-2, the financial modernization bill.

The Senate, which is set to meet at 10:00 a.m., has several appointments on the calendar including Kevin Shibilski, Secretary, Dept. of Tourism. Bills on the agenda include SB-1, relating to the service as a commissioner on uniform state laws, as well as SJR-7, the right to fish, hunt, trap and take game.

Business Day in Madison
The 2003 Business Day in Madison will take place on Wednesday, January 29, at the Monona Terrace Convention Center. Business leaders from all segments of the Wisconsin economy will have an opportunity to review key industry issues and meet with elected officials to discuss policies that will affect the economic future of the state.

The event, which is co-hosted by several statewide associations as well as chambers of commerce, will feature an address by Gov. Jim Doyle, a panel discussion on taxes and budget, as well as keynote speaker Barry Asmus, a Senior Economist with the National Center for Policy Analysis. For more information on the event go to www.wmc.org.

Federal Developments

Economic Impacts of Asbestos Lawsuits – $2 Billion
There will be as much as $2 billion in additional costs nationwide due to indirect and induced impacts of company closings resulting from asbestos lawsuits, according to a U.S. Chamber of Commerce Study released this week. Prepared by NERA Economic Consulting, the study - "The Secondary Impacts of Asbestos Liabilities" - claims asbestos lawsuits not only hurt companies being sued but also cause secondary harm to other businesses, governments, communities and individuals. (See Scott Tyre Commentary on asbestos reform.)

Counties Association Protests 'First Responders' Funding Shortfall
The National Association of Counties criticized Congress’ lack of action on the $3.5 billion recommended by the Bush Administration to fund first responders. The funding is for local police, firefighters and other first responders. Counties argue they need the funding to pay for the additional training, equipment and personnel that has already been deployed in the campaign against terrorism.

Coalition Opposes Guaranteed Issue Requirements for Private Insurance
About 30 insurers, companies and business groups will oppose guaranteed issue requirements in the private health insurance market. Guaranteed issue laws generally require insurers to guarantee they will issue a policy to any consumer who can afford the premium regardless of the person's health status or the health of the group of people seeking coverage. The Coalition Against Guaranteed Issue argues that states that have enacted guaranteed issue requirements as a means for making health care universally affordable have "accomplished the complete opposite." The CAGI Group points to states that have enacted such laws, where costs are rising and fewer people are covered.

NCSL Releases State Health Care Priorities
Since 1997, the National Conference of State Legislatures (NCSL) has conducted its annual survey of state health priorities to anticipate the health issues that may be addressed in the coming legislative sessions. The 2003 State Health Care Priorities Survey Report is now available on NCSL’s Web site.

Political News

Doyle starts cutting budget: Milwaukee Journal Sentinel, Jan. 24, 2003. Lawmakers asked to OK 'emergency' $161 million in trims.

Doyle to call for budget session: Wisconsin State Journal, Jan. 24, 2003. Said he would introduce an emergency budget bill cutting $161.5 million.

Budget woes worse than thought: Appleton Post-Crescent, Jan. 24, 2003. State short $452 million for this year.

3 businesses seek state award: Marshfield News Herald, Jan.23, 2003. Three local (Marshfield) companies are competing against 45 prominent manufacturers from across the state.

Lawmakers propose requiring two-thirds vote to raise taxes: Janesville Gazette, Jan. 23, 2003. Was approved by Assembly 66-28 last year without coming to a vote in the Senate.

Donors give $455,000 to Doyle inauguration: Appleton Post-Crescent, Jan. 22, 2003. Boys & Girls Clubs in the Fox Valley share in benefits.

Familiar faces among inauguration donors: Milwaukee Journal Sentinel, Jan. 22, 2003. Casino advocate one of nine who contributed $25,000 each to gala.

Doyle reaffirms vow not to raise taxes: Milwaukee Journal Sentinel, Jan. 21, 2003. Governor says he won't follow other states' lead.

Doyle's budget warnings garner silence: Milwaukee Journal Sentinel, Jan. 19, 2003. Top special interest groups have yet to denounce plans to slash state spending.

Report: Tax hike would cost jobs: Wisconsin State Journal, Jan. 21, 2003. The Wisconsin Policy Research Institute report assumes a $1.6 billion deficit in the first year of the 2003-05 budget.

Upcoming Fundraisers

Monday, Jan. 27:

·         State Senate Democratic Committee, Madison, 5:00 p.m.

Tuesday, Jan. 28:

·         Republican Party of Wisconsin, Milwaukee, 6:45 p.m.