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Feb. 1, 2007
Governor Jim Doyle delivered his State
of the State Address to a Joint Session of the Wisconsin
Legislature on Tuesday night and highlighted health care and
education as the cornerstones of the Administration’s agenda
heading into the 2007-08 Legislative Session. The Governor’s
address provides a significant preview of what can be expected
when he presents his budget to the Legislature next month.
In
the meantime, the Legislative Fiscal Bureau released its revenue estimates
that have the good news/bad news: there is money in the bank but — there are
significant current year appropriations shortfalls; revenue estimates are
higher than the Administration’s estimates for the first year of the
biennium — but — lower over the two year period; and, the recent Court of
Appeals decision on the tax exempt status of customized computer software,
if upheld, will cost the state in future sales tax revenues and in potential
sales tax refunds.
Despite some glitches along the way, the State Legislature passed an “ethics
reform” proposal to create the Government Accountability Board. The measure
passed both houses on a strong bipartisan vote with only tow “no” votes from
among the 132 legislators. Legislative leaders and the Governor had
announced an agreement to create the new Board — one with strong
investigative and enforcement authority and without partisan appointments —
early in the New Year.
As
specifics were unveiled, numerous issues were raised and all were addressed
on a bipartisan basis. The most significant and contentious provision
related to the non-severability clause, meaning that if any provision of the
act were determined to be unconstitutional, the entire act would be
unconstitutional on the theory that this was a “package” that depended upon
all of the pieces being in place. That provision was ultimately removed and
the bill received near unanimous support.
Policy Developments
Health Care and Education Focus of
Doyle’s State of the State Address
Gov. Jim Doyle's annual State of the State address Tuesday
night included plans for several new initiatives, including:
-
BadgerCare Plus: Expand the BadgerCare Program to provide health
coverage for all children and adults without children who earn less than
$20,000 a year.
-
Reinsurance Pool: Establish a purchasing pool to help business pay
for catastrophic health coverage.
-
Anti-Smoking Initiative: A statewide anti-smoking initiative to ban
smoking in all public buildings and workplaces, increase the tax on
cigarettes by $1.25 per pack (from .77 cents to $2.02.), and expand
smoking cessation programs to improve public health for people in
Wisconsin.
-
New Effort for Wisconsin Children and Families: Proposal merges child
welfare, child support, child care services and the W-2 program into a
single agency – the Wisconsin Department of Children and Family Services.
-
Initiative to Reduce Medical Errors, Health Care Costs: $30 million to
increase the use of electronic medical record systems, reducing medical
errors, improving safety, and decreasing health care costs.
-
Partnership with University of Wisconsin System: Provide $225 million
to generate new nurses, teachers, and engineers.
-
Education Initiatives: Provide funding for the Office of the
Wisconsin Covenant to help high school students attend college in
Wisconsin; triple the state’s support for school breakfast; increase job
training funding for Wisconsin’s technical colleges, and; double the
funding for the Youth Apprenticeship Program.
-
Governor’s Task Force on Global Warming: Create a new council
comprised of businesses, industry, environmental organizations, local
governments, and private citizens to develop a state plan of action for
state and local solutions to global warming.
-
Major Investments to Achieve Energy Independence: $40 million in his
budget proposal will be dedicated for renewable energy; proposed steps for
Wisconsin to be the first state in the nation to produce ethanol from
cellulose, or woody forest and timber materials.
-
Environmental Protection: the Governor called on the Legislature to
reauthorize the Stewardship Program to extend the state’s long standing
land acquisition program, and to ratify the Great Lakes Water Resources
Compact to protect the Great Lakes.
-
Milwaukee Initiatives: A comprehensive investment in Milwaukee to be
announced next week.
Government Accountability Board Bill Passes
After legislative leaders agreed to removal of the non-severability
clause and to other tweaking of the “ethics reform bill,” the legislation
that merges the Ethics and Elections Board passed both houses on the same
day and in advance of the Governor’s State of the State address. The
Governor is scheduled to sign the bill on Friday, February 2nd.
The
non-severability provision, which had caused disagreements among
legislators, would have invalidated the entire bill if even one part of it
was found unconstitutional.
Provisions of the reform package include:
-
The
current state Elections and Ethics Board will be dissolved and replaced
with a non-partisan Government Accountability Board (GAB).
-
The
new independent board will be comprised of six retired or reserve judges
intended to ensure the agency is insulated from partisan influence.
-
The
GAB will hire staff to coordinate day-to-day operations and have the power
to retain investigators as needed.
-
The
GAB will have the necessary financial resources to execute investigations
of public misconduct.
-
Investigations revealing evidence of criminal activity will be referred to
district attorneys and/or the state Attorney General.
-
If
any one part of this package is later called into question by the courts,
the GAB and the reforms created by this legislation remain intact.
-
Language in the legislation has been clarified to ensure that provisions
protecting against leaks of sensitive information obtained during
investigations don’t impede or impair the actual investigation.
Governor Doyle Announces Clean Air Status for Eastern Wisconsin
Governor Jim Doyle
has announced that eight counties in Eastern Wisconsin have reached a
new clean air status - and as a result has directed the Department of
Natural Resources (DNR) to request an ozone attainment redesignation for the
region.
Kenosha, Racine, Milwaukee, Waukesha, Washington, Ozaukee, Manitowoc and
Kewaunee counties will be included in the request. Previously, DNR Air
Bureau staff told business representatives that the Department would not
seek timely redesignation.
Acknowledging the importance of his commitment to seek regulatory relief for
those counties, nearly thirty business and labor groups sent a
letter to the Governor noting their appreciation. The letter, however,
outlines the importance of timely action and other hurdles that if not
cleared would impede or kill the redesignation effort. (See
WMC’s Ozone Update for additional background.).
DNR Air Rules Dominate Natural Resources Board’s Agenda
The Natural Resources Board was presented an alphabet soup of pending
air regulation at its Jan. 24th meeting. The Board acted upon or
was briefed on DNR’s efforts to implement four EPA Clean Air Act rules known
as CAIR, RACT, BART and CAMR.
The
Board adopted the
final version of DNR’s Clean Air Interstate Rule (CAIR), and sent draft
Reasonably Available Control Technology (RACT) and
Best Available Retrofit Technology (BART) rules to public hearing. The
Board was also briefed on the status of
DNR’s implementation of EPA’s Clean Air Mercury Rule (CAMR), and a
related
petition by environmental groups to ratchet down on utility mercury
emissions beyond that required by EPA.
Both
the Wisconsin Utility Association (WUA) and Wisconsin Manufacturers &
Commerce (WMC) addressed the Board with concerns over the process and
deviations to the federal CAIR rule.
Given
pending compliance with the federal particulate and ozone standards – the
target pollutants behind CAIR – industry representatives question the need
to exceed the federal requirements that by themselves will add a significant
margin of safety to the already compliant air quality. Similar policy
objections will be raised as RACT, BACT, and CAMR wind their way through the
rulemaking process.
Contact Hamilton Consulting’s
Bob Fassbender if you have any questions on these rules or the pending
ozone redesignation request.
Legislative Fiscal Bureau Releases New Revenue Estimates
On January 30, the State’s Legislative Fiscal Bureau (LFB) released its
revenue estimates [pdf
doc, 22 pgs] which show some increases in revenue in 2006-07, but
significant shortfalls in four agencies (Badger Care, Public Defender,
Corrections and W2).
The
report warns of potential decrease in sales tax ($28.3 million annually) and
possible refund payments ($227.6 million exposure) based on a recent Court
of Appeals decision relating to tax exempt status of customized computer
software.
Rental Car Tax Proposed to Finance Commuter Rail
A new commuter train to link Milwaukee to Racine and Kenosha would cost
about $200 million to build and operate, causing members of the Southeastern
Wisconsin Regional Transit Authority to struggle in reaching a consensus on
how to pay for it.
Authority members this week settled on a $13-a-car increase in the car
rental tax, after running into political and practical obstacles to sales
taxes, as reported in the Milwaukee Journal Sentinel. This amount
would be added to the current $2-a-car tax in Milwaukee, Racine and Kenosha
counties, and is opposed by the Wisconsin Car Rental Alliance.
Called the
KRM Commuter Link, the rail service is backed by business leaders as a
way to spur development and connect workers to jobs.
The
RTA was created by the Wisconsin State Legislature and Governor in July 2005
and is responsible for recommending to the State Legislature a permanent,
dedicated funding source for the local share of capital and operating costs
for commuter rail.
Related news articles:
Rail stations touted as lures: Milwaukee Journal Sentinel, Jan. 24,
2007.
Transit authority shelves regional sales tax plan: Milwaukee Journal
Sentinel, Jan. 9, 2007.
Transit backers try a new tack: Milwaukee Journal Sentinel, Jan. 7,
2007.
Rail link could reinforce cities' ties: Milwaukee Journal Sentinel,
Jan. 6, 2007.
Special Committee on Nuclear Power Recommends Ending Moratorium
The committee, created last session under the Republican-controlled
Legislature, voted 10-6 to approve a
bill draft by the Legislative Council to end Wisconsin’s nuclear plant
siting moratorium.
The
vote split along party lines and between representatives of utilities and
environmental organizations. It won with the unanimous approval by public
members representing the utility industry.
Upcoming Committee Hearings
Assembly Homeland Security and State Preparedness
Hearing scheduled for Feb. 6 on:
CR-06-128. Proof of identity.
AB-36. Grants for catastrophic damage caused to urban forests.
Senate Economic Development, Job Creation, Family Prosperity & Housing
Hearing schedule for Feb. 14 on:
SB-7. Revisions in terminology affecting mobile homes, manufactured
homes, modular homes, manufactured buildings, recreational vehicles, and
mobile and manufactured home communities and changes applying to monthly
fees collected by local governmental units.
SB-11. Authorizes a “right to occupy” time-shares license.
Wisconsin Makes Economic Honor Roll
The
Development Report Card for the States, released last week by the
nonprofit Corporation for Enterprise Development (CFED), highlights the
state’s economy and economic development efforts.
According to the report, Wisconsin
scored well in the health and diversity of its business, the competitiveness
of existing businesses, the minimal number of business closures, its
infrastructure, the number of loans made to small business, the quality of
jobs available, its small number of uninsured low income children and its
quality of life.
However, several weaknesses were
also identified by the study, including a disappointing entrepreneurial
dynamism, a low number of new companies created, long-term employment
growth, businesses created through university Research & Development (R&D)
and its limited financial resources.
Wisconsin
Politics
Hayden, Dilweg and Ebert Confirmed
Then senate on Tuesday confirmed 39 gubernatorial appointments
including Kevin Hayden as secretary of the Department of Health &
Family Service, Sean Dilweg, Commissioner of Insurance and Dan
Ebert (re-appointment) as Chair of the Public Service Commission
Doyle Appoints Burnie Bridge as Dist. IV Court of Appeals Judge
Gov. Doyle has appointed Burnie Bridge to the District IV Court of
Appeals. Bridge will fill the vacancy created by the retirement of Judge
David Deininger on Jan. 31, 2007. Bridge will begin serving Feb.12, 2007
for a term to end July 31, 2008.
Bridge served as an Assistant Attorney General from 1985-1993 and the Deputy
Attorney General under Attorney General Doyle from 1993-2003. Following her
service at the Department of Justice, she was appointed Chair of the
Wisconsin Public Service Commission.
Bridge retired from state service in September, leaving her most recent
position as the Administrator for the Division of Children and Family
Services at the Department of Health and Family Services.
Federal Developments
Bill Proposes More Ethanol Mandates
Four U.S. Senators, Lugar of Indiana, Harkin of Iowa, Obama of
Illinois and Dorgan of North Dakota, have introduced a new
Biofuels Security Act, providing additional mandates and
incentives for biofuels.
Specifically the act calls for automakers to increase the production of
flex-fuel vehicles (FFVs) so that all vehicles sold in the U.S. would be
FFVs within 10 years. And the bill would increase the number of filling
stations that offer biofuels.
While
President Bush called for a Renewable Fuels Standard of 35 billion gallons
by 2017, the Biofuels Security Act would increase the RFS to 60 billion
gallons of ethanol and biodiesel by 2030.
The
Administration has suggested that U.S. tariffs on ethanol imports will
probably need to be lifted to meet the goal of increasing the use of
renewable fuels. President Bush has noted that domestic ethanol production
would be constrained by the availability of corn. However, he did not
suggest increasing imports as a solution, instead saying the constraints on
ethanol production are the reason for government support for research to
manufacture ethanol from "cellulosic" materials such as woodchips and "other
agricultural wastes."
Committee Assignments for the 110th Congress – Wisconsin Delegation
Sen. Herb Kohl
-
Senate Committee on Appropriations
-
Senate Committee on the Judiciary
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Special Committee on Aging
Sen. Russ Feingold
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Senate Committee on the Budget
-
Senate Committee on Foreign Relations
-
Senate Select Committee on Intelligence
-
Senate Committee on the Judiciary
-
Special Committee on Aging
Rep. Paul Ryan
Rep. Tammy Baldwin
Rep. Ron Kind
Rep. Gwen Moore
Rep. James Sensenbrenner
Rep. Tom Petri
Rep. David Obey
-
House Committee on Appropriations - Chair
-
House Select Intelligence Oversight Panel
-
Subcommittee-Labor Health and Human Services Education and Related - Chair
Rep. Steve Kagen
Political News
Disclosure rules should apply to all campaign ads (opinion):
Sheboygan Press, Feb. 1, 2007.
State budget approval next step for commuter rail: Racine Journal
Times, Feb. 1, 2007.
Governor
on-board for $13 rental tax: Milwaukee Journal Sentinel, Jan. 31,
2007.
Group research on car-deer collisions good use of tax dollars:
Manitowoc Herald Times, Jan. 31, 2007.
Ethics
board gets overwhelming OK: Madison Capital Times, Jan. 31, 2007.
A job still
unfinished (opinion): Milwaukee Journal Sentinel, Jan. 31, 2007.
Republicans call Doyle hypocritical for proposing campaign reform:
Milwaukee Journal Sentinel, Jan. 31, 2007.
Doyle set a
spending record in election: Milwaukee Journal Sentinel, Jan. 31,
2007.
More cash
sought for circuit courts: Milwaukee Journal Sentinel, Jan. 31,
2007.
High court campaign cash: Wisconsin State Journal, Jan. 31, 2007.
Gov's education plans praised: Madison Capital Times, Jan. 31, 2007.
$13 rental
car tax sought: Milwaukee Journal Sentinel, Jan. 30, 2007.
Let green light shine for ethanol (opinion): Wisconsin State
Journal, Jan. 29, 2007.
Thompson
sizes up Iowa, post-game and casual: Milwaukee Journal Sentinel,
Jan. 28, 2007.
Doyle proposes global warming task force: Milwaukee Journal
Sentinel, Jan. 28, 2007.
Ethanol drives up
grain price: Baraboo News Republic, Jan. 28, 2007.
Put Doyle's smoking proposal to voters (opinion): Manitowoc Herald
Times, Jan. 28, 2007.
Market, not government, should shape our habits (opinion): Green Bay
Press-Gazette, Jan. 28, 2007.
Special interests eye high court race: Wisconsin State Journal, Jan.
28, 2007.
Time is right for state smoking ban (opinion): Wisconsin Rapids
Daily Tribune, Jan. 28, 2007.
Clinton
promises dialogue with Iowa: Milwaukee Journal Sentinel, Jan. 27,
2007.
Doyle's
budget would help UW meet its goals: Milwaukee Journal Sentinel,
Jan. 27, 2007.
Doyle seeks
more biofuels, less emissions: Milwaukee Journal Sentinel, Jan. 27,
2007.
Biodiesel talk lauded; where's $$? Madison Capital Times, Jan. 26,
2007.
GOP agenda shuns hot social issues: Madison Capital Times, Jan. 26,
2007
Ethanol plants powered by manure, trash catch on: Wausau Daily
Herald, Jan. 23, 2007.
Upcoming Fundraisers
Feb. 2
Feb. 19
For
details, go to
Hamilton Consulting Fundraiser Calendar.
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