Political Tidbits

Wisconsin political news for clients and colleagues.

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Mar. 4, 2005

While we focus much of our attention on legislative activity and administrative rulemaking related thereto, there are occasional court cases that directly impact on legislative enactments or constraints on the Legislature’s power and authority. The District IV Court of Appeals on Thursday, Mar. 3, certified a case to the Wisconsin Supreme Court which could have far reaching implications for Wisconsin and could influence federal Commerce Clause law development on a national level. (See below.) While the Court’s “decision” merely “certifies” the case for determination by the Supreme Court, the Appellate Court action alerts us to the potential impact an ultimate decision could have on Wisconsin’s ability to compete with other states in attracting business and industry.

In other matters, people around Wisconsin will have opportunities to express opinions on the proposed state budget and the voter Photo ID bill as the Joint Committee on Finance and the Senate Committee on Election Process Reform independently hold hearings around the state to obtain citizen input.

Policy Developments

Joint Finance to Hold Budget Hearings Around the State
The Legislature's Joint Finance Committee has scheduled five public hearings in March for Wisconsin residents to comment on the budget plan.

The hearings are:

March 9, from 1 to 7 p.m., at the Health and Wellness Center in Watertown;
March 11, noon to 5 p.m., Lakeshore Technical College, Cleveland;
March 14, 3 to 8 p.m., University of Wisconsin-Stout, Menomonie;
March 15, noon to 5 p.m., Prairie River Middle School, Merrill;
March 15, 10 a.m. to 5 p.m., state Capitol.

Assembly Sets March Schedule for Floor Action
Assembly Majority Leader Mike Huebsch announced the following March session days for the State Assembly, which will accommodate the above listed Joint Finance statewide budget hearing schedule.

Tuesday, March 8
Thursday, March 10
Wednesday, March 16

New Borrowing in State Budget Proposal
In a report released Feb. 24 by the Legislative Reference Bureau, Gov. Jim Doyle's state budget proposal includes more than $1 billion in new borrowing. The plan for the two-year period that ends June 30, 2007, calls for issuing $1.06 billion in new bonds, including $670 million for major highway projects and rehabilitation and $130 million for the state's Medicaid program. [For details on the Transportation Budget, go to The Hamilton Consulting Group’s Update, prepared by Amy Boyer.]

Appeals Court Certifies Tax Exemption Case to Supreme Court
The Northwest Airlines challenge of a property tax exemption for Midwest Airlines and Air Wisconsin has state and federal constitutional issues according the District IV Court of Appeals. Those issues could affect Wisconsin’s ability to compete with other states in attracting businesses, including biotechnology enterprises, to locate in the state. The Court said that the case presents issues, of statewide and national importance, involving the ability of the state to provide tax incentives for businesses to “locate, upgrade or remain in the state.”

Tax Freeze
Governor Doyle has been traveling throughout the state to campaign against the GOP tax freeze plan and to promote his own alternative embodied in the Governor’s 2005-07 State Budget proposal. He has, however, left the door open for discussion and possible compromise with the Republican legislative leadership.

On February 22, the Senate concurred in Assembly Bill 58 by a 20-13 vote. Instead of sending the bill to the Governor, Republican leaders, Speaker John Gard and Senate Majority Leader Dale Schultz announced they were taking a "time out on behalf of the taxpayers" to "give the Governor a chance to reconsider his opposition to the property tax freeze and reflect on the impact his veto would have on Wisconsin families." Assembly Bill 58 had previously passed the Assembly 58-37-2 pairs.

The enrolled bill still awaits action by Governor Doyle who has promised a veto. A Legislative Fiscal Bureau memo compares the fiscal controls proposed in Assembly Bill 58 with those proposed in the governor's budget.

Medical Assistance
On February 17, the Assembly voted 93-1 to pass 2005 Assembly Bill 102, as amended, to modify the funding of medical assistance and senior programs for the state fiscal year 2004-05 that ends June 30, 2005.

On February 22, the Senate voted 19-14 to concur in the bill. 2005 Assembly Bill 102 was approved by Governor Doyle on February 25 and became 2005 Wisconsin Act 2. The act will:

decrease the BadgerCare appropriation by $9.5 million;
increase the SeniorCare appropriation by $12.2 million;
increase the Medical Assistance appropriation by $69.8 million; and
transfer $50 million from the general fund to the medical assistance trust fund.

In addition, all Indian gaming receipts received from the Ho-Chunk Nation in state fiscal year 2004-05 are to be deposited in the general fund and transferred to the medical assistance trust fund.

Photo ID Bill
While Democrats largely opposed the bill, the Assembly, on a bi-partisan vote, approved the “photo ID" bill on a 64-33 vote. The ID bill now heads to the Senate. Further action is not expected to occur until April after the Senate Committee on Election Process Reform has held public hearings in five locations around the state. If the Senate passes the bill, it goes to Gov. Doyle who has indicated his intention to veto it.

Support among legislators for the measure has grown somewhat since the last time the law was presented to Doyle. In 2003, a version of the bill cleared the Assembly 60-34, and an attempt to override Doyle's veto failed on a 61-37 vote, five votes shy of the 2/3 required for an override.

DOR Reports Continued Revenue Growth
The Wisconsin economy continues to show strong signs of growth based on a report issued by the Wisconsin Department of Revenue issued Wednesday, March 2^nd. The report cites continued growth over the last half of 2004 and presents a positive outlook for 2005.

Wisconsin Politics

Doyle Discussing Medicaid Reform on D.C. Trip
Gov. Jim Doyle was in Washington, D.C. for the National Governors Association Winter Meeting held Feb. 26 through March 1 to discuss a strategy to work with the federal government to implement meaningful Medicaid reform.

Jerry Kleczka Appointed to Three-Member Tax Appeals Commission
After serving 21 years in the U.S. House of Representatives, Congressman Jerry Kleczka chose not to seek re-election last fall. His 21 years in Congress followed a distinguished 16-year career in the Wisconsin State Legislature. Kleczka’s House tenure included 12 years on the Ways & Means Committee. He served nine years on the Wisconsin Legislature’s Joint Finance Committee, five of those years as committee co-chair.

Earlier this week, Governor Doyle appointed the former Congressman to serve as one of Wisconsin’s Tax Appeals Commissioners for a term running until March 1, 2011.

Political News

Ellis bill takes step toward fruition: Appleton Post-Crescent, Mar. 3, 2005.

Panel advances campaign bill: Milwaukee Journal Sentinel, Mar. 3, 2005.

State called lax with OIC: Milwaukee Journal Sentinel, Mar. 3, 2005.

A slice of the federal pie: Milwaukee Journal Sentinel, Mar. 3, 2005.

Officials debate Taxpayer Bill of Rights’ potential ripples at forum: Green Bay Press-Gazette, Mar. 3, 2005.

Don't mandate ethanol (opinion): Milwaukee Journal Sentinel, Mar. 3, 2005.

Minimum tax could snare Wisconsin taxpayers (opinion): Racine Journal Times, Mar. 3, 2005.

Assembly panel rejects rules on waterways, citing vagueness: Milwaukee Journal Sentinel, Mar. 3, 2005.

Doyle's budget would help schools pay for transportation: Stevens Point Journal, Mar. 3, 2005.

Panel tables vote on minimum wage increase: La Crosse Tribune, Mar. 2, 2005.

State tax collections up for first seven months of fiscal year: Milwaukee Journal Sentinel, Mar. 2, 2005.