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Feb. 14, 2003
Gov.
Jim Doyle will unveil his 2003-05 Biennial Budget Bill next
Tuesday evening before a joint session of the Legislature. Doyle
and his Administration have played it pretty close to the vest in
crafting the budget, so we have few details at this time on how
the Governor will propose to fill the $3.2 billion budget hole.
Yet, Doyle ran his campaign on a no-tax pledge and has given every
indication that he intends to keep his promise. So we generally
expect large cuts to programs and state agency budgets. Stay tuned
for a Special Edition Political
Tidbits on Wednesday outlining the key provisions in the
Budget Bill.
Legislative action on the state
employee contracts and the special session budget was certainly a
harbinger of difficult times to come. Citing fiscal constraints,
the Legislature on Thursday rejected the previously negotiated
state employee contracts, raising the specter of job actions by
the unions. Also
on Thursday, the Joint Finance Committee kicked out Special
Session SB 1, altering Gov. Doyle’s proposal with a $9
million in additional reductions, leaving this year’s budget
shortfall at $283 million.
Wisconsin
Politics
Legislature Sends State Employee Contracts Back for
Renegotiation
After six hours of often tense testimony, the Joint Committee
on Employment Relations (JCOER) voted along party lines (5-2)
to send the 15 pending state employee contracts back for
renegotiation. Some union officials say they will not return to
the bargaining table for contracts that were previously negotiated
with the Department of Employment Relations and ratified by the
unions. Some expect job actions as a result of Thursday’s vote.
Due to the current fiscal crisis, some policymakers and
legislative leaders believe the contracts need to be renegotiated
to reflect the current fiscal challenges that face the state.
Union representatives see this as a breach of the agreement and a
distortion of the negotiating process. Governor Doyle has
indicated he has built enough money into his upcoming budget
proposal for the two-year period beginning July 1 to cover the
contracts.
According to a recent Legislative
Fiscal Bureau Memo, the contract extensions would cost an
additional $66 million for the two-year period ending June 30,
2003 and $124.7 million during each fiscal year of the upcoming
two-year budget.
Policy Developments
Joint Finance Action on Governor’s Deficit Repair Bill
The Joint Finance Committee acted on Governor Doyle’s Special
Session Senate Bill 1 (SS
SB 1) on Thursday and passed the bill, as amended, out of
committee on a party-line 12-4 vote.
The bill could be taken up by the full Legislature on
February 20th.
The special session bill was introduced to help address the
projected revenue shortfall in the current fiscal year
(2002-2003), which is estimated at $373 million. Under the
Governor’s proposal, a net total of $81 million in GPR cuts,
Program Revenue lapses to the General Fund and Segregated Revenue
transfers to the general fund would reduce the year-end imbalance
to $292 million.
In summary, the Republican controlled Joint Finance Committee
amended the bill as follows:
- Incorporating
an additional one percent cut in GPR-supported agency budgets
(roughly $8 million) (Motion
# 45);
- Increasing
Program Revenue lapses to the general fund by roughly $12
million (Motion
# 48), and;
- Increasing
Segregated Revenue transfers to the general fund by roughly
$10.5 million. (Motion
#49).
The primary debate focused on the Governor’s proposal to
transfer $22 million from the segregated transportation fund to
the general fund. On a party-line vote of 12-4, Motion
# 46 was adopted to keep the $22 million in the
transportation fund. That debate will likely continue as the bill
heads to the floor of the Senate for expected action next week.
Rep. McCormick Circulates Government Health Insurance Reform
Draft
Rep. Terry McCormick announced
that she is circulating a draft
bill for sponsorship. The bill is a compilation of the reform
provisions reached through the work of the Task Force on Local
Government Health Partnerships, which she spearheaded.
The legislation specifically addresses health plans offered
by local government employers. The bill proposes the following:
Collective Bargaining
- Local
government employers, except school district employers with
respect to their
professional employees, are prohibited from collectively
bargaining over health benefit plans if it enrolls in a plan
offered by the state group insurance board or offers a plan
that is “substantially similar” to the group insurance
plan offered by the board.
OCI will develop rules to determine “substantially
similar” plans.
- Local
units of government are allowed to change health care benefit
plan providers unilaterally, without consent of bargaining
unit, as long as benefits are substantially similar to the
current benefit plan. Any
savings created must be used to increase wages of employees
affected by the change.
Group Insurance Board
- Requires
arbitrators to consider wages, hours, and conditions of
employment as a whole rather than as individual element in
contract and benefit negotiations.
- The
Group Insurance Board is required to issue a report on the
feasibility of offering plans with three different cost levels
and a low cost health insurance plan that provides
catastrophic coverage.
- The
Department of Employee Trust Fund (DETF) is required to make
reimbursement accounts available to local government employers
and employees.
- DTEF
is required to offer long term care coverage to employees of
local units of government and their employees.
Prescription Drug
- Requires
the Department of Administration to establish an interagency
task force to conduct a feasibility study on the formation of
a state pool for the bulk purchasing of prescription drugs.
Claims Experience
- Requires
the Commissioner of Insurance (OCI) to promulgate an
administrative rule developing a uniform form that an insurer
must use in disclosing aggregate health care claims.
- Requires
insurers that provides aggregate experience claims data to
local governmental units, also must provide information to the
department of electronic government (DEG).
DEG is required to make information available to the
public.
- OCI
must develop a uniform form that a local government must use
to solicit bids. Insurers
are required to use form to submit bids and must share all
bids with the Department of Electronic Government where all
bids will be posted on the internet.
Bid Solicitation
- Requires
OCI to develop a uniform form for local government health
coverage solicitation; requires insurers to use forms to
submit bids and requires DEG to make the information available
to the public.
Federal Developments
Lawmakers
Propose Association Health Plan Bill
A bipartisan group of lawmakers introduced the "Small
Business Health Fairness Act” that will help small businesses
provide healthcare coverage under Association Health Plans. The
bill is sponsored by Sen. Jim Talent, R-Mo. and House Education
and the Workforce Chairman Boehner. The Small Business Health
Fairness Act would give small businesses more power to create
group insurance plans. NFIB launched a new lobbying campaign
today, starting with an informational website: www.APHsNow.com
ABA Backs Class Action
and Asbestos Litigation Reform
The American Bar Association is on
record supporting expansion of federal court jurisdiction over
class action litigation. The group is backing a proposal by
Finance Chairman Senator Grassley (R-IA) and Sen. Herb Kohl (D-W).
The ABA also voted to approve a resolution requiring asbestos
litigants to meet certain medical criteria in order to file suit
for compensation. The ABA's formal
endorsement of the reforms provides important momentum to reform
efforts.
The Senate Judiciary Committee is planning a March 5 hearing
on asbestos litigation reform legislation.
Business
Roundtable Proposes Climate Control Initiative
The Business Roundtable proposed
its Climate RESOLVE project, which is designed to encourage
businesses to voluntarily reduce greenhouse gas emissions.
H2-Grow
Act Introduced
Sen. Ron Wyden, D-Ore., and Rep. Christopher Cox, R-Calif.,
introduced legislation to pave the way for making hydrogen-powered
cars a plausible means for reducing U.S. reliance on oil-based
fuels. The "H2-Grow Act" provides for a series of tax
incentives to ease consumer and industry concerns about the
change. Related press releases: Wyden
Release; Cox
Release.
Political News
State
workers' contracts rejected: Milwaukee Journal Sentinel,
Feb. 14, 2003. Lawmakers tell Doyle to renegotiate deals for
31,000 jobs.
Federal
budget passage affects Fox Valley: Appleton Post-Crescent,
Feb. 14, 2003. Dental clinic, FVTC will get contributions.
Panel
rejects state labor contracts: Appleton Post-Crescent,
Feb. 14, 2003. State cannot afford pay raises; job action
threatened.
State
labor pacts rejected: Wisconsin State Journal, Feb. 13,
2003. 5-2 vote party-line vote by the Joint Committee on
Employment Relations.
Panel
trims just $9 million more from state budget: Wisconsin
State Journal, Feb. 13, 2003. Legislature's Joint Finance
Committee voted to increase the across-the-board cuts to 6
percent.
Doyle
won't cut tax credits: Milwaukee Journal Sentinel, Feb.
13, 2003. State officials say some fees are likely to rise.
Campaign
finance reform opposed: Milwaukee Journal Sentinel,
Feb. 13, 2003. Ed Thompson, ACLU, manufacturers all find fault
with measure.
Ellis
campaign reform plan gets hearing: Appleton Post-Crescent,
Feb. 13, 2003. Taking steps to level the playing field in
elections.
Supreme
Court candidates speak out: Madison Capital Times, Feb.
13, 2003. They touch on issues, deride rivals.
Doyle
vows to protect citizens: Manitowoc Herald Times, Feb.
13, 2003. Governor: Despite cutbacks, state will provide
assistance.
Budget
grappling previews big fight: Milwaukee Journal Sentinel,
Feb. 12, 2003. Lawmakers wrestle with plan to fill this year's
$454 million deficit.
Legislators
would set good example by refunding raises (opinion): Oshkosh
Northwestern, Feb. 12, 2003. State Rep. Mike Powers of Green
County has our admiration.
Rep.
Powers tries to run legislative office with no staff: Wisconsin
State Journal, Feb. 11, 2003. More than 20 state legislators
have forsworn pay raises.
Municipalities
bracing for likely reduction in shared revenue: Milwaukee
Journal Sentinel, Feb. 11, 2003. State budget cuts could force
drop in services, more property taxes
Legislators
face old problem of budget crunch: Sheboygan-Press,
Feb. 11, 2003. Budget crunches discussed at the monthly meeting
among county officials and this area’s lawmakers.
Federal
act means statewide voter lists: Daily Reporter,
Feb. 11, 2003. Creating list could cost Wisconsin millions.
Budget
pain could soon hit home: Milwaukee Journal Sentinel,
Feb. 11, 2003. Reduced services, higher property taxes, user fees
may result from deficit.
Supreme
Court candidate touts appellate experience: Eau Claire
Leader-Telegram, Feb. 11, 2003. Roggensack wants to improve
the Supreme Court’s efficiency and relevance to people.
Upcoming Fundraisers
Tuesday, Feb. 18
·
US Rep. Ron Kind (D), Madison, 5:00 p.m.
Thursday, Feb. 20
·
Joel Brennan (Dem. candidate for 7th S.D.),
Milwaukee, 5:00 p.m.
Friday, Feb. 21
·
Republican Party of Dane County, Madison, 5:00 p.m. | 
