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Feb. 14, 2007

This issue of Tidbits is devoted primarily to the first round of the 2007-09 biennial budget discussion and debate. 

The primary in the very critical 2007 Wisconsin Supreme Court race is next Tuesday, February 20. Please check the bios of the two major candidates and please vote!

Policy Developments

Governor Advances Biennial Budget Bill
Governor Doyle delivered his State Budget Address to the Legislature on Tuesday night and outlined his 2007-09 biennial budget priorities. In total, the Governor is proposing to spend $57.7 billion (all funds) over the two-year budget; an increase of roughly $4 billion over the FY07 base year doubled.

General purpose revenue (GPR) funding is proposed at $27.2 billion, for a two-year increase of $580 million. The budget assumes revenue growth of roughly $1.25 billion in existing taxes, and contains a host of new taxes and fees to fund spending increases, fund tax reductions enacted in previous biennia, and to help backfill one-time revenues used to balance the prior budget.

For a complete summary of the Governor’s proposed budget, see the following documents:

Budget in Brief [114 page PDF doc.]

Budget in Very Brief [27 page PDF doc.]

Budget Bill [Note: 1,757 page PDF doc.]

Dept. of Administration Budget Page

A partial list of major spending and revenue initiatives in selected areas is listed below:

Health

• Expand BadgerCare to cover all children and childless adults up to 200% of the federal poverty level.

• Expand the Family Care program as part of statewide implementation.

• Provide $30 million in grants and tax credits to promote the implementation of electronic medical record keeping.

• Require mandatory insurance coverage for autistic children and increase minimum coverage levels for mental health and substance abuse services.

• Increase reimbursement rates for noninstitutional providers in the MA program by 1% each year and increase nursing home provider rates by 2% each year.

• Fund MA cost increases through a variety of new sources including all or a portion of $1.25 per pack increase in cigarette taxes ($546 million); a 1% gross revenues tax on hospitals ($418 million to leverage $575 million in federal matching funds); $175 million transfer from the Patient’s Compensation Fund, and: refinancing of the tobacco settlement funds.

Education

• Provide $450 million increase in K-12 equalization aid, school levy tax credit and categorical aids and maintain two-thirds funding of school costs.

• Provide a $53 million increase in special education aid.

• Provide 100% state funding to cover the costs of additional students in the Milwaukee private school choice program.

• Repeal the qualified economic offer (QEO) relating to teacher salary and benefit bargaining.

• Establish the Wisconsin Covenant to assist qualified students to attend higher education in Wisconsin.

• Increase UW funding by $225 million.

Transportation

• Provide a $13.5 million increase in the major highway program (1.5 percent each year) plus an additional $384 million in transportation revenue bonding authority.

• Provide an increase of $61 million in the highway rehabilitation program (2.6 percent first year/4 percent second year).

• Provide an increase of $66 million for the highway maintenance program.

• Increase funding for general transportation aid, local road improvement and transit aid programs by $26 million over the biennium (2 percent each year).

• Provide $115 million SEG over the biennium and $90 million in SEG supported bonding for reconstruction of the I-94 North-South corridor and Zoo Interchange projects.

• Increase transportation fund revenues by roughly $170 million through a $20 increase in automobile and light truck registration fees.

• Impose a 2.5 percent gross receipts tax on oil companies to increase transportation fund revenues by roughly $270 million over the biennium.

• Shifts $160 million in GPR costs onto the transportation fund ($56 million in pupil transportation aids, $34 million in environmental costs and $70 million in debt service on GO bonds issued for transportation projects in previous biennia).

• Increase the driver’s license fee by $10.00 to fund costs to comply with the Federal REAL ID Act.

Committee Activity
On Tuesday, Feb. 13, the Senate's Committee on Labor, Elections and Urban Affairs held a hearing on SB-6, a proposal to allow 17-year-olds to vote in non-federal primary elections if they will turn 18 by the general election. Because the bill extends the right to vote to a new group, the measure would have to be approved by voters in a statewide referendum.

The Assembly Committee on Jobs and the Economy and the Senate Committee on Economic Development, Job Creation, Family Prosperity and Housing held a joint hearing on SB-24 and AB-56,, identical versions of a bill to move up the effective date of a package of tax incentives for film productions that was signed into law last year.

Two Assembly committees one for Criminal Justice and one for Judiciary and Ethics will hold a joint hearing at 10:30 a.m. Feb. 15 on problems at the State Crime Laboratory. Attorney General J.B. Van Hollen has said the lab needs 31 additional DNA analysts to eliminate the backlog in testing evidence that is approaching 1,900 cases. Interested persons are invited to testify regarding the testing backlog and its impact on the criminal justice system.

Wisconsin Politics

Supreme Court Primary
A Feb. 20 primary will narrow the field for supreme court candidates for this very important race. Vying for the position are Circuit Court Judge Annette Zeigler, Madison attorney Linda Clifford, and Oregon attorney Joseph Sommers. The April 3 general election will determine who will replace retiring Justice Jon Wilcox.

For biographies of Judge Ziegler and Linda Clifford, see Hamilton Consulting Group's Update.

Doyle Names Kelli Trumble as Secretary of Tourism
Gov. Jim Doyle has announced that he is appointing Kelli Trumble as tourism secretary effective Monday, Feb. 19. Trumble, of Wisconsin Dells, replaces Jim Holperin, who stepped down last month.

Hamiltonians in the News

Capitol Report Magazine Features Hamilton Group
The Winter 2007 issues of Capitol Report profiles the Hamilton Consulting Group as one of Wisconsin’s largest and most respected lobbying firms.

The article highlights the rim’s continued growth, as evidenced by a recent joint venture with GSP Consulting, a Pittsburgh-based firm specializing in the procurement of state and federal finding for bioscience firms and high-tech manufacturing.

Hamilton Consulting continues to work with tradition manufacturing clients in product development, refinement, research and development and continuing education.

“It’s a continuation of Hamilton’s uniquely successful business model: Growing to attract new clients while maintaining core values to retain existing ones.”

In Business Magazine Features Sanders
Henry Sanders, who recently joined Hamilton Consulting, is featured in the January 2007 issue of In Business magazine.

In addition to outlining Henry's previous experiences, the article describes his role as a consultant for Hamilton's current clients, as well as his work in helping to develop partnerships for the firm's new venture, hamilton.gsp. Henry's focus with hamilton.gsp is to provide a range of services including advocating for technology-related public policy and developing groundbreaking economic development efforts.

For more on Henry, go to his bio.

Political News

Doyle seeks tax, fee boosts: Milwaukee Journal Sentinel, Feb. 14, 2007.

Tax and fee increases in Doyle budget draw GOP ire: Janesville Gazette, Feb. 13, 2007.

Three running for Wilcox seat on Wisconsin Supreme Court: Milwaukee Journal Sentinel, Feb. 12, 2007.

Protection wanted for state's malpractice fund: Wisconsin State Journal, Feb. 13, 2007.

Doyle will propose taxing big oil: Janesville Gazette, Feb. 12, 2007.

GOP moderate reaching across House aisle: Milwaukee Journal Sentinel, Feb. 11, 2007.

Property tax levies could rise under Doyle plan: Milwaukee Journal Sentinel, Feb. 11, 2007.

Doyle to seek benefits for domestic partners of all state employees: La Crosse Tribune, Feb. 11, 2007.

Property tax levies could rise under Doyle plan: Milwaukee Journal Sentinel, Feb. 10, 2007.

31 new crime analysts sought: Milwaukee Journal Sentinel, Feb. 9, 2007.

State agencies seek ways to cut spending: Eau Claire Leader-Telegram, Feb. 9, 2007.

Upcoming Fundraisers

Feb. 19

• US Rep. Tammy Baldwin (D), Madison

For details, go to Hamilton Consulting Fundraiser Calendar.