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Feb. 18, 2005
The past couple
of weeks have been highlighted by the unveiling of the Governor’s
2005-07 Budget Bill and the dueling property tax freeze proposals.
This past week, the State Assembly passed the legislative version
of the “freeze” and sent it on to the Senate, which is expected to
concur in that proposal next week. In the meantime, the Governor
and Democrats are touting the Governor’s proposal and launching
public criticism at the Republican proposal. No doubt this debate
is far from over.
For an overview of the
Governor’s budget proposal, please review The Hamilton Consulting Group’s
Update:
Governor’s 2005-07 Budget Bill, a concise
summary prepared by
Pat Osborne. Pat’s summary is one of several budget-related updates that
will be prepared by our government relations team, posted on our website,
and referenced in future issues of
Tidbits.
The Legislature has also
been busy on other fronts, addressing issues relating to shortfall in
Medical Assistance and SeniorCare, voter identification, HSA accounts and
will hear testimony on civil justice initiatives.
Policy Developments
Assembly Passes
“Tax Freeze”
On
Thursday, February 17, the State Assembly passed a bill which
would create local levy limits that apply to political
subdivisions (cities, villages, towns, counties) and technical
college districts. The measure prohibits a political subdivision
from increasing its levy by a percentage that exceeds the
percentage change in the political subdivision’s equalized value
due to new construction, less improvements removed. (For the past
eight years, this percentage increase has averaged 2.6 percent
annually.) The calculation of a city’s village’s or town’s levy
does not include any tax increment that is generated by a tax
increment district. The property tax levy of each technical
college district may not increase more than 2.6 percent over the
district’s prior year’s levy.
The property tax levy limits can be exceeded by an amount
approved both by a governing body resolution and elector approved
referendum. The proposal also has a three-year sunset from the effective
date of the law, if approved.
The statutory language is embodied in
Assembly Substitute Amendment 1 to Assembly Bill 58 as amended by
Assembly Amendment 1 and
Assembly Amendment 3 to the Substitute.
The bill passed the Assembly 58 to 37 with one Republican
voting “no” and one Republican paired “for” with all Democrats present
voting against, one paired against and two absent.
The bill is expected to be taken up by the Senate next
Tuesday, February 22.
Medical Assistance/Senior
Care Fix Advances
On Thursday, the
assembly also passed a bill reducing the Medical Assistance (MA) and Senior
Care shortfalls from approximately $195 million to $73 million. As passed,
the bill would also require that any monies the state may receive from the
Ho-Chunk Nation from gaming compacts be appropriated to the MA Trust fund to
further reduce the shortfall.
The bill,
AB-102, which passed the Assembly 93-1, will be taken up in the Senate
next Tuesday.
Joint Finance Recommends
Voter ID Bills/On Assembly Calendar
Joint Finance
has recommended passage (12-4) of legislation requiring voter identification
and added an emergency clause so that the bills may be acted upon before
passage of the state budget. (SB-42
and
AB-63)
The photo ID measure (AB 63) had previously cleared the
Assembly's Committee on Campaigns and Elections on a 4-2 vote and will be
taken up by the full Assembly on February 22.
The bill would require voters to present a valid ID card
issued by the military or the state or a valid
Wisconsin driver's license
before casting a ballot or registering on Election Day. Those voting
absentee also would have to include a photo copy of their ID card with their
ballot for it to count.
The legislation also would eliminate the state's "vouching"
system, which allows someone to have another person at the polls guarantee
his or her identity and address.
DOT Supports Child
Passenger Protection Bills
The Wisconsin
Department of Transportation
recently announced its support for
Assembly Bill 70 and
Senate Bill 32, which improve safety restraint requirements for
transporting children under the age of eight in motor vehicles.
If the legislation is passed, warnings rather than citations
will be issued during the first six months of the law to provide a phase-in
period. Moreover, revenue generated by a new $25 surcharge on child safety
restraint citations would be used to distribute child safety seats to
low-income families.
Health Savings Account
Legislation Passes Assembly
The state
Assembly on Tuesday, Feb. 15, gave final approval to legislation to create
an individual tax exemption for health savings accounts.
Assembly Bill 4 would adopt federal law allowing contributions to health
savings accounts by individuals or their employers and earnings on the HSA
to be exempt from income in determining state income tax. The legislation
now advances to the Senate, where it is expected to see action in the coming
weeks.
Stray Voltage Award Upheld
The 3rd District
Court of Appeals recently ruled
that a dairy farmer is entitled to a
$1.75 million award by a jury in a case against Wisconsin Public Service
Corp. Russell Allen alleged WPS negligently permitted stray voltage to harm
his cows and that its distribution system was a nuisance.
The jury awarded Allen $750,000 in economic damages and one
million dollars in nuisance damages. The court concluded that the nuisance
award was not excessive in light of Allen’s experience ultimately leading to
finding the source of his herd’s problems.
Business Day/Civil Justice
Reform/Senate Hearings
2005 Business Day in Madison, Wednesday, February 23, will include a
general session on civil justice reform featuring Steven Hantler, Assistant
Corporate Counsel, Daimler Chrysler, and Tiger Joyce, President of the
American Tort Reform Association, who will share their perspectives on the
importance of legal reform.
That afternoon the State Senate Judiciary Committee will hold
a public hearing on two
Wisconsin civil justice proposals—SB-58
relating to Products Liability, and
SB-70 relating to standards for expert opinion evidence. The hearing
will take place in Room 411 South, State Capitol, at
1:00 pm.
Wisconsin
Politics
Burmaster/Underheim
in DPI Race
Incumbent Elizabeth Burmaster and state Rep. Gregg Underheim have
advanced to the general election for State Superintendent of
Public Instruction. The two were the top vote getters in the
February 15 primary and will face off in the Spring election on
April 5.
Federal Developments
Class Action
Legislation Passed/Signed by President
The
“Class Action Fairness Act” passed the U.S. Senate last week,
the House of Representatives yesterday, and was signed into law by
the President this morning. The measure, S-5, passed with strong
bi-partisan support although a majority of Democrats still voted
against the proposal. The main thrust of the new law is to prevent
“forum shopping” where plaintiff lawyers have been permitted to
bring actions in localities favorable to class action suits and
high awards.
Vote Postponed on Clear
Skies Act
A Senate panel
decided Wednesday to delay a key vote on a proposal that would impose
emissions limits on the utility sector and rework federal Clean Air Act
regulations.
The bill reduces emissions of sulfur dioxide, nitrogen
oxides, and -- for the first time -- mercury from power plants by 70 percent
by 2018 through expanding the existing Acid Rain Trading Program.
Under the Program, which employs a cap and trade design, the
Clear Skies Act would adhere to the current caps through 2009 and reduce
the cap to 4.5 million tons per year in 2010. The cap would then be reduced
to 3 million tons in 2019.
With respect to NOx, the Clear Skies Act would create a new
NOx emissions cap in 2008 of 1.562 million tons per year for most of the
Midwest and Eastern
region of the United States. The cap would be reduced to 1.162 million tons
per year in 2019. A new western NOx trading region would also be created,
with a cap of 538,000 tons per year, commencing in 2019.
For the first time, a mercury cap and trade program would be
employed. The mercury cap would begin in 2010 at a limit of 34 tons per year
and drop to 15 tons commencing in 2019.
Political News
Assembly
advances GOP tax limits: Milwaukee Journal Sentinel, Feb. 18, 2005.
Critics
question savings in privatization plan: Milwaukee Journal Sentinel,
Feb. 18, 2005.
Court: Mother can sue for distress in stillborn death: Appleton
Post-Crescent, Feb. 18, 2005.
New limits
placed on class-action suits: Milwaukee Journal Sentinel, Feb. 18, 2005.
Lemon law formula
still applies despite trade-in, court says: Janesville Gazette, Feb. 17,
2005.
GOP unveils ‘better’ tax plan: Appleton Post-Crescent, Feb. 17,
2005.
Legislative panel OKs voter ID bill: Appleton Post-Crescent, Feb. 17,
2005.
Democrats will support Doyle's tax proposal in state visits:
Janesville Gazette, Feb. 17, 2005.
Governor
backs away from police merger plan: Janesville Gazette, Feb. 17,
2005.
Marathon County might get involved in power line lawsuit: Wausau
Daily Herald, Feb. 17, 2005.
Opponents say utility needs a shorter straw: Racine Journal Times,
Feb. 17, 2005.
Ethanol bill
has hurdles: Eau Claire Leader-Telegram, Feb. 17, 2005.
Assembly OKs bills on health savings accounts, cooperatives: Madison
Capital Times, Feb. 16, 2005.
$1.75M stray voltage award upheld: Green Bay Press-Gazette, Feb. 16,
2005.
Doyle’s property tax plan more frugal: Appleton Post-Crescent, Feb.
16, 2005.
Burmaster,
Underheim advance easily to finals: Milwaukee Journal Sentinel, Feb.
16, 2005.
Process to get driver’s license eyed: Appleton Post-Crescent, Feb. 15,
2005.
Tourism jingle to get a new tune: Appleton Post-Crescent, Feb. 15,
2005.
Bill would allow attractions to be part of blue freeway signs:
Racine Journal Times, Feb. 15, 2005.
Biofuel mandate
raises questions: Janesville Gazette, Feb. 14, 2005.
PSC orders company to provide alternate power line routes: La Crosse
Tribune, Feb. 14, 2005.
Raising cigarette tax has benefits (opinion): Sheboygan Press-Gazette,
Feb. 13, 2005.
Budget doesn’t cut spending (opinion): Green Bay Press-Gazette, Feb.
13, 2005.
Doyle revenue budget in need of backup plan (opinion): Appleton
Post-Crescent, Feb. 13, 2005.
Doyle's budget miscast by both sides (opinion): Wisconsin Rapids
Daily Tribune, Feb. 12, 2005.
See more news articles in The Hamilton
Consulting Group's News Clips.
Upcoming Fundraisers
Wednesday, Feb. 23
Monday, Feb. 28
For details, go to The Hamilton
Consulting Group's
Fundraising Calendar.
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