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Feb. 22, 2008
The Wisconsin Legislature is winding down the 2007-08 Legislative Session,
which is scheduled to end on March 13. There is expected to be a heavy
emphasis on economic development initiatives, many of which have bi-partisan
support.
The Legislative Fiscal Bureau recently projected a $652 million dollar
deficit which will also need to be addressed, although that will likely come
in a Special Session called by the Governor who is expected to offer the
first round of proposals to address the deficit.
In light of the deficit, spending measures before the Legislature are not
likely to gain any momentum unless there is a clear link to a significant
boost to the Wisconsin economy.
While much attention was given to the Presidential Primary in Wisconsin—with
its two clear winners, there will be much more election focus as the year
progresses. There is an important statewide Supreme Court race on April 1,
as well as many critical local races, followed in the fall by primaries and
the general election of all of the State Assembly and 16 (of 33) State
Senators.
Policy Developments
Senate Action
The Senate was on the floor this week considering several
high-profile issues, including a bill to publicly fund Supreme
Court races and a compromise on virtual schools.
The Senate passed
SB-171, which would expand public financing for state Supreme Court
campaigns. The bill would give qualified Supreme Court candidates
$100,000 in state grants for primary races and $300,000 for general
elections. Four Republicans voted with the Democrats on the bill: Sens.
Alberta Darling of River Hills, Mike Ellis of Neenah, Sheila Harsdorf of
River Falls and Luther Olsen of Ripon. The bill passed 22-10. It goes next
to the state Assembly.
Gov. Doyle requested some changes to a bill (SB-396)
allowing students to remain enrolled in online charter schools. The
Senate voted (18-15) to accept those changes, which would cap the number of
students who can enroll in virtual charter schools and require a study of
how those students are being served.
In other floor action this week, the Senate voted unanimously to approve a
measure requiring state licensure of electricians and electrical
contractors. In order to be licensed as an electrician under
SB-167, a person must either complete an apprenticeship program or have
a minimum amount of experience in installing, repairing, and maintaining
electrical wiring, and pass an examination administered by the Department of
Commerce.
In addition, other bills recently passed by the Senate include:
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SB-99: Adds cells phones to state “do not call” list (33-0).
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SB-273: Regulates liquefied petroleum gas suppliers (33-0).
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SB-346: Regulates the sale of products containing mercury (30-3).
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AB-100: Requires motor vehicles to be equipped with safety glass.
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AB 409: Expands the area in which a tax incremental district's
project costs may be expended (33-0).
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AB-500: Modifies interest restrictions on members of local units and
issuance of retail liquor licenses.
Committee Action
Several health-related bills received committee action recently.
Bills that require training to use automated external defibrillators were
recommended for passage by the Senate committee on Health, Human Services,
Insurance, and Job Creation.
SB-142 was unanimously passed out of the Senate Health committee as
amended, and its companion bill,
AB-262, which had passed the Assembly in January, was concurred in by
the committee. Both bills are available for scheduling.
The Assembly Small Business committee recommended passage of
AB-729 as
amended. AB-729 requires health care providers to provide consumers with
certain charge or payment rate information, upon request by and at no cost
to the consumers.
Senate Democrats’ “Wisconsin Invests” Includes Combined Reporting
Senate Bill 510, the Senate Democrats’ economic development package
which they have entitled “Wisconsin Invests” was introduced on February 19.
The proposal includes: supplemental funding for renewable energy grant and
loan program; WHEG grants for technical college students; income eligibility
for child care subsidies; grants to tech colleges for training in advanced
manufacturing skills; airport development zone an technology zone tax
credits; DOT funding; RTA and commuter rail transit system. It also
establishes the combined reporting method for determining the tax liability
of multi-state corporations doing business in Wisconsin.
The combined reporting proposal is certain to be controversial. On February
14 a
Coalition Against Combined Reporting memo was sent to a Senate committee
in response to informational hearings that had recently been held by the
committee. Additionally, the Wisconsin Economic Development Association is
expected to release a new research paper on the subject early next week.
Senate Bill 510 was originally referred to the Joint Committee on Finance,
but has been rereferred to the Senate committee on Economic Development,
which is holding a public hearing on the bill on Wednesday, February 27.
Minimum Markup Law Challenged….Again
Wisconsin’s minimum markup law is being challenged once again after a
federal judge recently ruled it unconstitutional in the way it was being
applied.
The new lawsuit, filed Jan. 29, alleges that while the state did not appeal
the earlier ruling, it is still enforcing the law despite it being found
unconstitutional. By doing so, the state's fuel pricing market "chills open
competition," challenges the authority of federal courts to enforce the law
and undermines the Constitution.
In the response filed by the Department of Justice, the state contends that
the minimum markup law is not pre-empted by the Sherman Act, that the
federal court lacks subject matter jurisdiction and that Flying J has failed
to allege the state has pursued an enforcement action against it.
In related action, lawmakers have recently introduced
AB-820, which repeals the Unfair Sales Act and creates prohibitions
against certain pricing practices by wholesale and retail sellers of goods.
Task Force Submits Interim Report on Global Warming
On Tuesday, February 19, the Governor’s Task Force on Global Warming met
to continue their series of meetings to examine the effects of and solutions
to global warming in Wisconsin.
Presentations focused on the Work Groups’ progress since the last meeting
and a discussion of the Task Force’s
draft interim report. The report, which was unanimously approved, asks
the state Public Service Commission to change the way it regulates electric
utilities to promote conservation and reduce greenhouse gas emissions.
Task Force recommendations include:
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Reducing the state’s electric load by 2
percent and natural gas load by 1 percent by 2015.
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Implementing greenhouse gas reduction
strategies across all state agencies and universities.
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Requiring rental properties to install
energy efficient lighting in common areas and wall mounted fixtures.
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Creation of the Wisconsin Greenhouse Gas
Reduction Initiative, a voluntary program to motivate and enable
individuals, communities, farms and other businesses to reduce their
greenhouse gas emissions.
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A study to explore geological sequestration
for carbon dioxide produced by Wisconsin’s electric generation fleet.
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Legislation to create uniform standards for
siting wind systems.
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A study to look at the technical and
economic potential for developing wind energy on Lakes Michigan and
Superior.
Committee Holds Public Hearing on Great Lakes Compact
The state Senate Committee on Environment and Natural Resources held a
public hearing on a bill that would govern who may take water from the Great
Lakes and under what circumstances.
The compact, signed by the governors of the eight Great Lakes states in
2005, would prohibit most diversions of water from the region's drainage
basin and require each state to regulate water use. Great Lakes water could
be diverted for use outside the basin in a county that straddles the basin
boundary. But any one of the eight states could veto such a plan.
The issue has raised concerns for the city of Waukesha, which wants to tap
into Lake Michigan for drinking water because its wells are contaminated.
According to the state’s largest business group, Wisconsin Manufacturers and
Commerce, the Senate bill proposes new permitting and statewide conservation
requirements that exceed what is necessary to implement the Compact. Many of
these new permitting requirements would apply to Wisconsin businesses,
despite the fact that industry accounts for only five percent of Great Lakes
water withdrawals.
Three states - Minnesota, Illinois and Indiana - have enacted compact
legislation. After all the states do that, Congress must ratify the
agreement to make it valid.
Great Lakes Commission Website
Repair Bill to Address Budget Shortfall
The Legislative Fiscal Bureau released
projections last week which indicate that Wisconsin faces a $652 million
shortfall for the current biennial budget period (July 1, 2007-June 30,
2009).
The Governor is expected to introduce a budget repair bill which may include
possible fixes such as closing the so-called "Las Vegas loophole" on
business taxes and reviving a hospital tax that was removed from the state
budget. Action on a budget repair bill is likely to take place during a
Special Session with only three weeks left in the regular session.
Wisconsin
Politics
Looking Ahead - Elections
Overview – Fall 2008
Who’s up?
All 99 Assembly members. Members of the Assembly are elected to two-year
terms. All members are up for re-election in the even-numbered years.
Republicans hold a majority (52-47). The stakes are high as there are
several competitive seats in the Assembly, and there are several open seats
due to retirements.
16 members of the Senate. Those up for re-election hold the even-numbered
seats. Senators are elected to four-year terms, but the elections are
staggered – meaning approximately half of the 33 Senate seats up for
election each cycle. Democrats currently hold the majority (18-15).
All eight members of the Wisconsin Congressional delegation are up for
re-election, with the 8th District rematch between Rep. Kagen and
former Speaker John Gard being the only competitive seat. No U.S. Senate
seats are up.
Related News
State Senate takes on key issues today: Hudson
Star-Observer, Feb. 19, 2008. Votes are scheduled on several
high-profile issues.
Bill would make health costs more transparent (opinion): Appleton
Post-Crescent, Feb. 19, 2008. Insurance companies would have to provide
information about how much of the cost of a service it would cover.
Lack of job skills hurting work force in Wisconsin: Green Bay
Press-Gazette, Feb. 18, 2008. Workforce Development board tackles issues
facing employees across state, nation.
Interim report focuses on cutting energy use: Milwaukee Journal
Sentinel, Feb. 18, 2008. State task force makes proposals to confront global
warming.
Don't leap at biofuel plant plans (opinion): Wausau Daily Herald, Feb.
18, 2008. It would be unfortunate if taxpayer money was wasted and a company
vital to the region's economic health was harmed by a hasty decision.
Save the compromise (opinion): Milwaukee Journal Sentinel, Feb. 18,
2008. Students in these schools thrive. So it makes no sense that the state
should cap enrollment. The state Senate should reject such efforts.
Job Creation key when economy gets rough (opinion): Eau Claire
Leader-Telegram, Feb. 17, 2008. I believe that if we can lower the tax
burden, encourage investment and technology, and redouble our efforts in the
fight against wasteful government spending, we can weather the storm, and be
stronger for it. Moulton, R-Chippewa Falls.
Health care not easy to fix: Wausau Daily Herald, Feb. 17, 2008. Varying
approaches offer range of effectiveness, local health officials say.
Upcoming Fundraisers
March 10
March 14
March 19
For
details, go to
Hamilton Consulting Fundraiser Calendar.
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