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Hamilton Consulting Group Political Tidbits
Wisconsin political news for clients and colleagues.

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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:

  • SB-99:  Adds cells phones to state “do not call” list (33-0).

  • SB-273: Regulates liquefied petroleum gas suppliers (33-0).

  • SB-346: Regulates the sale of products containing mercury (30-3).

  • AB-100: Requires motor vehicles to be equipped with safety glass.

  • AB 409: Expands the area in which a tax incremental district's project costs may be expended (33-0).

  • 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:

  • Reducing the state’s electric load by 2 percent and natural gas load by 1 percent by 2015.

  • Implementing greenhouse gas reduction strategies across all state agencies and universities.

  • Requiring rental properties to install energy efficient lighting in common areas and wall mounted fixtures.

  • 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.

  • A study to explore geological sequestration for carbon dioxide produced by Wisconsin’s electric generation fleet.

  • Legislation to create uniform standards for siting wind systems.

  • 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

  • Sen. Scott Fitzgerald (R-Juneau, Madison

March 14

  • Sen. Scott Fitzgerald (R-Juneau, Watertown

March 19

  • Sen. Alberta Darling (R-River Hills), Madison

For details, go to Hamilton Consulting Fundraiser Calendar.

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