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April 5, 2004

After a “spring break,” Tidbits returns with a somewhat abbreviated edition as we await a very busy month of gubernatorial action on 180 bills that have passed the Legislature and require approval or veto by the state’s chief executive. Gov. Doyle returned to Wisconsin last week after leading a trade mission to China and now faces the task of wrapping up what most observers believe to have been one of the most successful economic development sessions in the state’s history. Despite differences on some high profile issues, the Legislature and governor have accomplished much since January 2003.

In addition to the bills pending before the governor, there have already been 163 bills signed into law and another 26 have been vetoed, with no overrides to date. The governor has until April 22 to complete his action on the bills pending before him. Under Wisconsin law, if the governor fails to act on any bill in a timely fashion, it automatically becomes law. This contrasts with federal law where inaction by the President results in a “pocket veto.” 

As has been previously reported, the 2003-04 Legislature passed and Gov. Doyle has signed landmark TIF legislation (Acts 126 & 127). In addition, the governor is expected to sign SB 428, a TIF trailer bill which clarifies and corrects certain items from Act 126, particularly related to the lifespan and extensions available to TIDs created before and after the effective date of Act 126. Please see The Hamilton Consulting Group’s Update for an analysis of the provisions of the adopted bills.

Policy Developments

Rep. Stone Urges Extraordinary Session on Wisconsin Airlines Incentive Package
Rep. Jeff Stone (R-Greenfield) is calling for an extraordinary session to deal with incentive legislation for hub airlines. Earlier this session, Rep. Stone introduced Assembly Bill 933, which would provide a grant payment to airlines that qualify as a hub facility in Wisconsin. The legislation is designed as an alternative to an existing ad valorem property tax exemption for hub airlines that was recently struck down as unconstitutional in Dane County Circuit Court. That ruling is currently being appealed by the State.  

Representative Stone’s call for extraordinary session is in response to concerns raised by Midwest Airlines and Air Wisconsin (the two airlines that currently qualify as Wisconsin hub airlines) that, pending the outcome of the appeal, a secure alternative incentive needs to be in place to keep Wisconsin expansion plans on track. Since the tax exemption was enacted in 2001, the two companies have made capital investments of over $800 million in new planes and maintenance facilities in Wisconsin.  

Supreme Court Divided on Indian Gaming Compacts
On March 30, the Wisconsin Supreme Court split 3-3 (with Justice Wilcox not participating) on Dairyland Greyhound Park’s challenge of the governor’s authority to extend Indian gaming compacts in Wisconsin and remanded the case to the Court of Appeals, District IV for a decision. 

The Supreme Court still has pending a case brought by Speaker Gard and Senator Panzer that challenges the governor’s authority to negotiate compacts. The Court accepted this case under its original jurisdiction authority and, therefore, it is not on appeal from either a trial court or appellate court decision or action.

Wisconsin Politics

Elections 2004
Now that the 2003-04 Legislative Session is essentially over, legislators and candidates are shifting into election mode in anticipation of the fall 2004 elections. All 99 Assembly seats and 16 even-numbered Senate seats are up for re-election. Below is a general overview of the elections as they sit today.

The State Senate is currently controlled by Republicans by an 18-15 margin. The Assembly is controlled by Republicans by a 59-40 margin. To date, there are 10 confirmed open seats (three in the Senate and seven in the Assembly). This is not unusual as some legislators either have a desire to obtain a higher office or simply decided it’s time to move on. Here’s a breakdown by house on seats being vacated by incumbent legislators:

Senate:

• 4th District – Sen. Gwen Moore (D-Milwaukee). Running for 4th Congressional District nomination.

• 14th District – Sen. Bob Welch (R-Redgranite). Running for US Senate nomination.

• 32nd District – Sen. Mark Meyer (D-La Crosse). Not seeking re-election. 

There is speculation that Sen. Chuck Chvala (D-Madison) will not seek re-election to the 16th Senate District. He has not, however, made a formal announcement. 

Assembly:

• 12th District – Rep. Shirley Krug (D-Milwaukee). Running for 4th Congressional District nomination.

• 38th District – Rep. Mickey Foti (R-Oconomowoc). Not seeking re-election.

• 41st District – Rep. Luther Olsen (R-Berlin). Running for 14th Senate District.

• 44th District – Rep. Wayne Wood (D-Janesville). Not seeking re-election.

• 48th District – Rep. Mark Miller (D-Monona). Running for 16th Senate District.

• 68th District – Rep. Larry Balow (D-Eau Claire). Not seeking re-election.

• 96th District – Rep. DuWayne Johnsrud (R-Eastman). Not seeking re-election. 

There is speculation that Rep. Tom Hebl (D-Sun Prairie) will not seek re-election to the 46th Assembly District as he may run for the 16th Senate District seat. A formal announcement has not yet been made. 

Sen. Dale Schultz (R-Richland Center) is running for the 3rd Congressional District, currently being held by U.S. Rep. Ron Kind (D). Sen. Schultz, however, is not up for re-election this year and will not have to give up his seat.  

The same goes for Sen. Tim Carpenter (D-Milwaukee), who is running for the Democratic nomination for the 4th Congressional District, being vacated by U.S. Rep. Gerald Kleczka. 

Next week, we’ll take a look at candidates seeking to fill the vacated seats or challenge incumbents.  

Appeals Court Refuses to Dismiss Jensen, Foti, Schultz Charges
On April 1, the Wisconsin Court of Appeals District IV rejected the appeal brought by representatives Jensen, Foti, and Sherry Schultz to dismiss the charges pending against them, all of which relate to allegations of political activity on state time. The Appeals Court remanded the case to the Dane County Circuit for trial. The court cited its decision in the Sen. Chvala case on nearly identical issues.

Federal Developments

Transportation Reauthorization
On Friday, April 2, the House joined the U.S. Senate in adopting a massive transportation package that authorizes dollars and projects for expenditure among the 50 states. The House and Senate versions differ in many respects and a Conference Committee composed of yet unnamed members from both Houses will soon begin to hammer out differences. The result will be a conference committee bill that will require a positive vote by both Houses and will be unamendable.

Political News

Darrow puts another $550,000 into campaign: Milwaukee Journal Sentinel, Apr. 2, 2004.

Jensen, Foti charges not thrown out: Madison Capital Times, Apr. 1, 2004.

Linton considers run for her former Assembly seat: Ashland Daily Press, Mar. 31, 2004.

Pukema declares candidacy for Wisconsin Assembly seat: Superior Daily Telegram, Mar. 31, 2004.

China struggles with brutal past: Milwaukee Journal Sentinel, Mar. 30, 2004.

The contest for next mayor (opinion): Milwaukee Journal Sentinel, Mar. 30, 2004.

Manufacturing rises in March: Wisconsin State Journal, Apr. 2, 2004.

Wisconsin eager to supply as China demands more medical goods: Milwaukee Journal Sentinel, Apr. 2, 2004.

President seeks economic action: Appleton Post-Crescent, Mar. 31, 2004.

Besieged, frustrated legislator packed it in: Wisconsin State Journal, Mar. 29, 2004.

Fluno talk: 'Focus on what we do best': Madison Capital Times, Mar. 29, 2004.

Growing economy creates hope: Oshkosh Northwestern, Mar. 28, 2004.

Lawmaker Wants Tax Break For 2 Airlines: Wisconsin State Journal, Mar. 27, 2004.

 Lightweight resolutions fly through Legislature: Green Bay Press-Gazette, Mar. 27, 2004.

'Air wars' battle raging in state:  Milwaukee Journal Sentinel, Mar. 26, 2004.

Upcoming Fundraisers

Tuesday, April 6:

• State Senate Democratic Committee: The Cavalier, 114 5th Avenue N., La Crosse

Wednesday, April 7:

• Sen. Julie Lassa (R-Plover) : Spiedini's Inaliano Ristorante, 1010 Post Road, Plover, 5:30 p.m.