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April 8, 2009

Wisconsin Developments

Legislative Fiscal Bureau Identifies Non-Fiscal Policy Items in the Budget Bill:  JFC Co-Chairs Trim the List

Traditionally, the first budget vote taken by the Joint Finance Committee is to remove those items in the Governor’s bill that have been identified by the Legislative Fiscal Bureau (LFB) as non-fiscal policy items. The provisions that are removed from the budget bill are then introduced as separate legislation for consideration by the appropriate standing committees through the normal bill process.

On Tuesday, a memo to Rep. Robin Vos was released that identified 80 separate items identified by the LFB as non-fiscal policy items applying the same criteria used in previous years. Later the same day, another LFB memo was released  this one addressed to JFC Co-Chairs Sen. Miller and Rep. Pocan, which identified 11 of the 80 items that would not be on the standard list using modified criteria the co-chairs had asked the LFB to apply.

Amidst this flurry of lists, the co-chairs distributed a memo to the members of the Joint Finance Committee outlining the budget process they intended to use for committee review of AB 75.  That memo, the one that counts, contained a significantly modified list of 45 policy items that the co-chairs announced would be removed from the bill as policy.

The unilateral action of the co-chairs left numerous and major non-fiscal policy items in a budget bill that requires nine JFC votes to modify what the Governor originally submitted. Complex policy issues that would ordinarily be more thoroughly vetted as separate bills will now be whisked through the budget process intended to deal with the state’s two-year tax and spending plan.

Major non-fiscal policy items that were not removed based on the co-chairs action include: repeal of the QEO, joint and several liability changes, establishment of domestic partners rights and benefits, health insurance and motor vehicle insurance coverage, choice and charter school provisions, and major expansion of prevailing wage on public works and private development projects.

This expeditious but short-sighted move on the part of the co-chairs is unfortunate. JFC members and the LFB staff have a big enough job trying to balance the largest state budget bill ever introduced without taking on major policy issues that are better addressed as separate legislation by the standing committees with subject matter expertise in those policy areas.

Ultimately, it could mean that two members of the State Legislature from Madison have effectively precluded the other 130 state legislators from having any meaningful role in shaping policy that will materially affect their constituents. It also means that the public will be short-changed from participating in shaping that policy, or even understanding what is buried in the midst of a 1,743 page budget bill.

Chief Justice Easily Wins Reelection; Evers Elected State Superintendent

Cementing her legacy on the Wisconsin Supreme Court, Chief Justice Shirley Abrahamson this week easily defeated her challenger, Jefferson County Circuit Court Judge Randy Koschnick.

Abrahamson cruised to victory with 59 percent of the vote. Abrahamson outraised her opponent, having brought in roughly $1.3 million, compared to Judge Koschnick’s $123,910. Early on, many thought this could be another controversial judicial race with outside money spent on the race, but many business groups opted not to get involved in the race.

Koshnick throughout the race identified himself as a “judicial conservative” and tried labeling Abrahamson as being a “judicial activist” for decisions she authored or joined, while Abrahamson touted her experience and independence on the Court. 

Chief Justice Abrahamson, who has served 33 years on the high court, and 13 years as Chief Justice, has secured another 10-year term. With her victory, Abrahamson will be the longest serving Justice in state history, surpassing Orasmus Cole’s 37 years on the bench. In addition, if Abrahamson is able to carry out her entire term she will become the longest serving Chief Justice, eclipsing Marvin Rosenberry’s 23 years in that position.

In the other statewide race, Tony Evers defeated Rose Fernandez for State Superintendent of Public Instruction. Evers takes over for outgoing Superintendent Elizabeth Burmaster, who did not seek reelection. Prior to running for State Superintendent, Evers was a teacher, principal, and Deputy State Superintendent.

Assembly Committee on Labor Hears Employment Discrimination Bill

The Assembly Committee on Labor this week heard testimony on Assembly Bill 31, sponsored by Rep. Christine Sinicki (D-Milwaukee), which would add punitive and compensatory damages in cases where an employer engages in employment discrimination. The bill also requires the employer to pay a 10 percent surcharge on top of the punitive damages that goes to the Department of Workforce Development to administer the fair employment law.

Opponents of the bill argued that, unlike federal law, there is no requirement that the employee who brings a claim prove that the employer acted with malice, recklessness, or deceit. Opponents also objected to the fact that the bill allows unlimited punitive damages and will be harmful to Wisconsin’s business climate at time when the state can ill-afford it.

Proponents argued that the bill is necessary to provide greater protection to employees and that punitive damages will deter such conduct.

AB-31 is a companion bill to Senate Bill 20, sponsored by Sen. Dave Hansen (D-Green Bay). SB-20 was heard received a public hearing last month. The bill brought out was controversial, with numerous groups weighing for and against the bill.

Proposals See Committee Action

Several Assembly committees held hearings and recommended passage of bills. The committee on Insurance recommended for passage (6-4) AB-16, with two amendments. The bill would require health insurance coverage of hearing aids and cochlear implants for children.  

The committee on Health and Healthcare Reform unanimously recommended passage of AB-103, which would authorize temporary permits to practice dentistry or dental hygiene without compensation. The committee recently held public hearings for AB-100 and AB-108, both making changes to health benefit plans, and AB-152, which prohibits mandatory overtime hours and on-call time worked by health care workers.

In the Senate, the committee on Education held a public hearing on SB-109, which repeals the current prohibition on starting school year before Labor Day. Those in favor of the bill want each individual school district to decide when school should begin. Opponents cite the additional tax revenues, economic development opportunities, additional family vacation time, and the overall hospitality reputation of the state as reasons to maintain a consistent school start date.

New Bills Introduced

• AB-195: Expands the definition of volunteer health care providers for indemnification under the Volunteer Health Care Provider Program.

• AB-179: Notification to the state and certain public agencies of a medical malpractice claim; limits on liability.

• AB-180: Changes and extends Environmental Results Program; extends Environmental Improvement Program and length of a compliance schedule under that program; reporting requirements for certain environmental programs.

• AB-181: Penalties for driving without a license or after suspension or revocation.

• AB-184: Increases expense deductions for income/franchise tax purposes.

• AB-185: Prohibits use of information in credit reports for issuing or setting premiums for motor vehicle or property insurance.

• SB-138: Income/franchise tax credit for vehicles which use gasoline and ethanol mixtures and for fuel efficient hybrid vehicles.

• SB-141: Requires certain vehicles that transport children to and from a child care provider to have child safety alarms installed.

Federal Developments

Congress Introduces Climate Change Legislation

Reps. Henry Waxman (D-California) and Edward Markey (D-Massachusetts) this month introduced a draft climate change bill encompassing 684 pages. Known as the “Clean Energy and Security Act,” the bill includes sweeping policy proposals, including a cap-and-trade program. 

The bill calls for cutting greenhouse gas emissions 20 percent below 2005 levels by 2020 and mandates tougher efficiency standards for building appliances. The bill also requires that the U.S. derive 25 percent of its electricity from renewable sources by 2025.

However, the bill fails to specify how the costs of the emitting carbon will be allocated. For example, the bill calls for a cap-and-trade system that would place a limit on how much greenhouse gas emissions businesses and companies are allowed to emit, and then forces companies to seek permits to emit beyond that amount. However, the bill fails to specify how many of those permits would be given away for free, versus being sold.

The bill also contains numerous pages addressing coal-fired power plants, which the Midwest relies on for abundant and affordable energy. The legislation provides funding for utilities working to develop commercial-scale power plants that are able to capture and store emissions. The bill also calls for studies on the viability of underground storage of carbon dioxide.

Cap-and-Trade Legislation Must Receive 60 Votes to Pass

In a little-reported vote, the U.S. Senate this month passed a measure requiring that any legislation seeking to impose a cap-and-trade program must receive 60 votes in order for it to pass the Senate. Both Wisconsin Senators (Russ Feingold and Herb Kohl) voted for the measure, which passed 67-31.

The vote is notable because it will make passing any cap-and-trade legislation this year extremely difficult. While Democrats hold a majority in the Senate, they do not currently have the 60 votes necessary to reach the 60-vote threshold. Moreover, a number of centrist Democrats from the Midwest have joined Republicans in voicing their concerns that enacting climate change legislation would be costly and could harm the region’s economy.

Related News

Thinking long term (opinion): Milwaukee Journal Sentinel, Apr. 6, 2009. Trying to tax Big Oil won't work. A better bet to provide needed funding for roads is a small hike in the gas tax - for now - and then rethinking road financing entirely.

Rising cigarette taxes could push more smokers to quit: Milwaukee Journal Sentinel, Apr. 6, 2009. Another state increase proposed as federal tax jumps.

New dental school sought: Milwaukee Journal Sentinel, Apr. 5, 2009. Marshfield Clinic aims to train dentists to aid rural, poor areas.

Concordia raises $5 million for state's second pharmacy school: Milwaukee Journal Sentinel, Apr. 5, 2009. On track to open Wisconsin's second pharmacy school in September 2010 with a class of 65 students.

Bill targets drug presentations: Milwaukee Journal Sentinel, Apr. 4, 2009. Doctors would get neutral information.

Audit faults Wisconsin over federal funds: Madison Capital Times, Apr. 2, 2009. Identified several instances of federal guidelines not being followed.

Proposal would save farmland from sprawl: Green Bay Press-Gazette, Apr. 1, 2009. Doyle pitches buying development rights.

In Eau Claire, Wisconsin and Minnesota governors tout cooperation: Eau Claire Leader-Telegram, Mar. 31, 2009. Met to promote financial collaboration between two cash-strapped states.

Rock County may lose funds in state budget: Beloit Daily News, Mar. 31, 2009. Legislators to hold public hearings, look at governor's proposal

Area firms feel auto fallout: Milwaukee Journal Sentinel, Mar. 30, 2009. GM, Chrysler risk bankruptcy as Obama rejects recovery plans.

Harley fumes over article: Milwaukee Journal Sentinel, Mar. 30, 2009. Ad came a week after freelancer wrote an article saying that Harley's core customers have gotten older and are buying new bikes less often.

Higher beer taxes hit wrong target (opinion): Milwaukee Journal Sentinel, Mar. 29, 2009. Increases in excise taxes hurt our industry - brewers, distributors and retailers - our workers, our communities and the millions of people who consume our products responsibly.

Gust of business: Milwaukee Journal Sentinel, Mar. 29, 2009. Transporter says wind-power shipments 'took off' in March.

Rural bridges targeted: Milwaukee Journal Sentinel, Mar. 29, 2009. Little-used structures to be replaced, fixed.

Recession dries up traffic in Port of Milwaukee: Milwaukee Journal Sentinel, Mar. 28, 2009.

Go strong on ballast regulations (opinion): Milwaukee Journal Sentinel, Mar. 28, 2009.

State welcome center merges with visitors bureau: Superior Telegram, Mar. 26, 2009. To manage some of those costs, the department is making plans to closed the eight Wisconsin visitor centers throughout the state, including one in Superior.