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April 11, 2005
Later this week
the Legislature’s Joint Finance Committee (JFC) will begin the
task of shaping it’s version of the proposed state budget for
submission later this Spring to the full Legislature for adoption
and ultimate submission back to Governor Doyle. The Committee will
begin holding “executive sessions” where the members begin voting
on which fiscal items will be included in the ultimate package. No
public testimony is permitted during executive sessions, but
members of the Legislative Fiscal Bureau and the Administration’s
Budget Office are present to provide information requested by the
committee and to respond to questions from members. The public
hearing process and the agency briefings have concluded and the
real work now begins.
JFC will first decide which
areas of the budget will be treated as current law (2003-05 base) and which
areas will be treated as proposed by the Governor in AB 100.
Throughout the JFC process,
there will be frequent debate about not including “policy” items in the
state budget. Obviously, there is no greater policy enactment than the
biennial budget. The effort, however, is to keep policy items that have no
direct fiscal impact and can be addressed in separate legislation out of the
state budget. Historically this was the “Christmas Tree” approach that was
used to obtain additional votes when needed, but the system could be used to
advance nonfiscal policy. Recent Legislatures have done a much better job of
keeping pure policy items out of the budget document.
The budget debate, as it
should be, is contentious and frequently painful; but it is also the most
important action in any two year session. We will highlight the
budget-related activity as we all point toward a July 1 (or sooner)
resolution.
Policy Developments
“Jobs Act II”
Bill on Tuesday’s Assembly Floor Calendar
AB 278 which is being touted as
“Jobs Creation Act II” is scheduled for floor debate and vote on
Tuesday, April 12. AB 278 addresses litigation reform by
heightening the standard for expert opinion evidence, bringing
Wisconsin in line with the federal system and 33 other states;
limiting shareholder liability for wages to encourage venture
capital; and prohibiting nuisance lawsuits where businesses are in
compliance with existing law. The Assembly will also take up
AB 277, a trailer bill to Jobs Creation Act I relating to air
pollution control permits.
Other items on the Tuesday
Assembly calendar include:
AB 208 relating to rural enterprise
development zones;
AB 241 relating to the business
employee’s skills training grant program; and
AB 206 providing income/franchise tax
credit for certain R & D conducted in the state by state corporations.
TIF Bill Back on Senate
Calendar
On April 5th, the Assembly unanimously concurred in
SB 83 relating to clarifying changes to
last session’s landmark TIF legislation. The Assembly added a technical
amendment which will require concurrence by the Senate (on Tuesday, April
12) before being sent to the Governor for his signature. The TIF trailer
bill will allow additional communities to benefit from the legislation
passed last session. (Please see
March 11 Tidbits for a
summary of the bill’s provisions.)
Other items before the
Senate tomorrow include:
SB 129 which transfers the BEST grant
program to the Technical College System Board; and,
SB 147 which establishes a state
preemption for the minimum wage, prohibiting local ordinances from exceeding
the state minimum wage.
Joint Finance to Begin
Voting on Budget This Week
After some additional public discussions with DOA Secretary Mark Marotta on
Tuesday of this week, the Legislature’s Joint Committee on Finance (JFC) is
scheduled to begin voting in executive session this Thursday on items to be
included in its version of the 2005-07 state budget. Majority Party members
of JFC from both Houses have been given specific issue area assignments to
work with and gain input from non-JFC colleagues as the voting process
proceeds.
JFC Co-Chairs,
Representative Dean Kaufert and Senator Scott Fitzgerald, have also created
a list of “fiscal policy” v. “political” items in the Governor’s proposed
budget for the Committee’s consideration in moving forward. The Committee is
also expected to meet in executive session next week on the 19th,
20th and 21st.
Assembly Passes Health
Insurance Tax Credit Bill
The State
Assembly unanimously passed
AB 6 aimed at making health insurance
more
affordable for Wisconsin
families and retirees. The proposal would provide a 100 percent tax
deduction for individuals whose employers do not contribute to their health
insurance. Current law provides only a 50 percent deduction. In addition,
the bill phases in over the next few years a deduction for non-employed
individuals including retirees. The legislation now moves to the Senate
where it is expected to receive bipartisan support.
Voter ID Bill Sent to Full
Senate
The Senate Labor and Election Reform Process Committee recommended passage,
by a bipartisan 4-1 vote, of photo ID legislation (SB
42) that would require
Wisconsin’s voters to present a valid photo ID before voting. This
action comes on the heels of a series of statewide hearings held by the
committee across
Wisconsin.
Legislation to allow funding for the ID cards to be provided without charge
by the Department of Transportation (SB
119) was also recommended by the Committee on an identical 4 to 1 vote.
Supreme Court Holding
Session in Fond du Lac
The
Wisconsin Supreme Court will move its proceedings to Fond du Lac to hear
three cases on April 12. This trip is part of the Court’s Justice on Wheels
program, begun in 1993 to make the Court’s work more accessible to the
people of the state. The Fond du Lac visit marks the Wisconsin Supreme
Court’s 15th Justice on Wheels trip and the first time to the Fox Valley
city.
Supreme Court Changes Rules
Regarding Frivolous Lawsuit
The
Wisconsin Supreme Court approved a petition to adopt Rule 11 of the
Federal Rules of Civil Procedure, and repeal the current state statutes
governing frivolous actions, ss. 802.05 and 814.025.
The petition had received
broad support in the legal community including organizations that don’t
often see eye to eye on public policy issues. This broad based support was
based on concerns that language in an earlier Court decision could expand
the interpretation of the statute to encompass activity not intended by the
statute. The petition was brought by four organizations: American Board of
Trial Advocates (ABOTA); Civil Trial Counsel of Wisconsin (CTCW); Wisconsin
Academy of Trial Lawyers (WATL): and the Litigation Section of the State Bar
of Wisconsin.
The petition resulted in
two significant changes:
1) Trial judges would
have discretion in the awarding of costs and attorneys fees when the court
determines an action is frivolous.
2) Parties would have a
21-day “safe harbor” within which they could withdraw a frivolous pleading
and avoid sanctions.
The Court was not, however,
unanimous in its action as evidenced by the 4-3 vote. Justice Roggensack
said the court did not have the authority, either statutorily or
constitutionally, to repeal s. 814.025 "because it is a substantive law that
was duly created by acts of the legislature." She said the court has the
power to revise s. 802.05 "in certain instances because it began as a
Supreme Court rule..." But, she said, the revisions made by the majority
"are contrary to the interests of the public."
Local Governments Receive
Share of Fuel Tax, Registration Fees
Governor Jim Doyle has announced that quarterly checks totaling $96.8
million for General Transportation Aids, Connecting Highway Aids, and
Expressway Policing Aids have been mailed or electronically transferred to
Wisconsin units of local government.
The Governor said that the
April payments from the Wisconsin Department of Transportation (WisDOT)
included $93.3 million in General Transportation Aids to 1,923 units of
government; $3.2 million to 123 municipalities for Connecting Highway Aids;
and $260,200 to Milwaukee County for Expressway Policing Aids.
Study Finds Annexation
Creates Jobs
Every acre of land annexed into a
Wisconsin city or village creates, on average, 11 jobs, according to a
study by the Wisconsin Economic Development Institute (WEDI). Although
the state doesn't keep figures on all annexations, the institute estimated
that 10,300 jobs per year are created in annexed areas. That's a third of
all the jobs created in the state last year. During development of the
annexed land, there are nearly 29,000 people at work creating the
infrastructure necessary to accommodate the development or supporting the
infrastructure creation off-site, the study estimated.
Annexations are the most
common form of boundary changes between minor civil divisions. The report
contends that for such an often-controversial process, relatively little is
known about its economic development impacts. This purpose of the report is
to provide a summary of such impacts in Wisconsin.
Motor Fuel Tax Increased
On April 1, the tax on motor fuel was automatically adjusted and increased
one cent to 29.9 cents. The automatic adjustment of the motor fuel tax was
established by the 1983 Wisconsin Legislature when a formula based on the
rate of inflation was created. On April 1, Senator Tim Carpenter introduced
2005
Senate Bill 156 which would repeal the automatic adjustment of the motor
fuel tax rate.
Wisconsin Joins Federal
Lawsuit for Mercury Emissions
Governor Jim Doyle
announced today that
Wisconsin
will join with nine other states in a lawsuit in the U.S. Court of Appeals
for the District of Columbia Circuit challenging EPA’s recently finalized
mercury rules. The lawsuit, filed in federal court in
Washington,
D.C.,
said the reductions announced earlier this month by the Environmental
Protection Agency, do not go far enough to satisfy Clear Air Act
requirements. The reductions aim to cut mercury emissions from coal-burning
power plants by nearly half within 15 years.
On Mar.15, 2005, EPA issued the
Clean Air Mercury Rule.
The rule is the first ever federally-mandated that coal-fired electric
utilities reduce their emissions of mercury. Its promulgation triggers a
requirement in Wisconsin’s mercury rule that DNR revise its rule to assure
consistency with the federal program. The key issue in the upcoming
development of the state version of the rule is how closely it will track
the federal program. (For more on the state mercury program, see Hamilton
Consulting’s
Mercury Rule Update).
State Audit Accounts for
Federal Funds
On Friday, April 8, the Legislative Audit Bureau (LAB) released its annual
Single Audit report (Report
Summary, pdf doc, 4 pgs;
Full Report, pdf doc, 235 pgs.), which details the expenditure of funds
allocated to the State by the federal government. The audit includes 23
recommendations to improve state agency administration of federal grant
programs.
The audit found that the
State administered more than $9.3 billion in federal financial assistance in
fiscal year 2003-04. Approximately 93 percent of the federal cash and
non-cash assistance received by the State was administered by five state
agencies, including the Department of Health and Family Services, the
Department of Workforce Development, the University of Wisconsin System, the
Department of Transportation, and the Department of Public Instruction.
Wisconsin
Politics
Four Year Terms
for County Officials/Burmaster Reelected
On Tuesday, April 5, Wisconsin voters approved a constitutional
amendment by a 3-to-1 margin to change the terms of county clerks,
treasurers, district attorneys, coroners, clerks of courts and
registers of deeds. County sheriffs already serve 4-year terms.
Clerks of Circuit Court and
coroners will be elected to 4-year offices concurrent with the first
gubernatorial election, 2006, the same as sheriffs. District attorneys,
surveyors, registers of deeds, treasurers and county clerks will be elect to
4-year terms beginning in 2008, concurrent with Presidential elections.
Proponents of the
lengthened terms contended that longer terms would enable officeholders to
concentrate on performing their duties rather than on running for office;
reduce campaign costs; and, give newly elected officials more time to become
familiar with the duties of the office.
In the race for State
Superintendent, incumbent Elizabeth Burmaster was reelected with a
comfortable margin over challenger, State Rep. Gregg Underheim.
The voters, on a county by
county basis, also approved two advisory referenda supporting state payment
of state “mandated” programs relating to the court system and social
services. While this will boost the counties’ efforts to transfer costs to
the state, there is not likely to be much immediate impact on legislative
deliberations.
Celia Jackson Named DORL
Secretary
Governor Doyle last week named Celia Jackson of Milwaukee as the new
Secretary of the Department of Regulation and Licensing (DORL), replacing
Donsia Strong-Hill who resigned last October. Ms. Jackson most recently has
served as Senior Policy Advisor for Pax Christi USA; served in several
positions for the Archdiocese of Milwaukee; had a private law practice; was
an Assistant Dean at Marquette Law School; and is a former Assistant DA. She
begins her new duties on April 25.
Political News
Counties
will put pressure on state: Milwaukee Journal Sentinel, Apr. 11,
2005.
Statewide referendum issues ignore complexity: La Crosse Tribune,
Apr. 11, 2005.
Views on local economy perk up: Green Bay Press-Gazette, Apr. 11,
2005.
Mortgage fraud
takes heavy toll: Milwaukee Journal Sentinel, Apr. 11, 2005.
Election tough on school projects: Appleton Post-Crescent, Apr. 11,
2005.
Safety vs.
independence: Milwaukee Journal Sentinel, Apr. 11, 2005.
1986 'right to
know' law helps neighbors keep track of chemicals: Milwaukee Journal
Sentinel, Apr. 11, 2005.
Analog region in
a digital economic age: Milwaukee Journal Sentinel, Apr. 10, 2005.
W-2 should be showing better results for clients (opinion): Appleton
Post-Crescent, Apr. 10, 2005.
Lawmaker sets session to hear budget concerns: Appleton
Post-Crescent, Apr. 10, 2005.
Doyle
names new head of regulation, licensing: Milwaukee Journal Sentinel,
Apr. 10, 2005.
Cigarette tax hike is wise (opinion): Milwaukee Journal Sentinel,
Apr. 10, 2005.
State joins mercury emissions suit: Appleton Post-Crescent, Apr. 9,
2005.
Doyle Opposes $1 Hike In State's Cigarette Tax: Madison Capital
Times, Apr. 9, 2005.
Rushing regulatory reform (opinion): Milwaukee Journal Sentinel,
Apr. 9, 2005.
Doyle
lauds his budget plan: Milwaukee Journal Sentinel, Apr. 8,
2005.
Lawmaker dips into microchip fears: La Crosse Tribune, Apr. 8, 2005.
DMV charts new road for renewals: Green Bay Press-Gazette, Apr. 8,
2005.
State bill would pre-empt local minimum wages: La Crosse Tribune,
Apr. 8, 2005.
Burmaster
victorious in schools race: Milwaukee Journal Sentinel, Apr. 6,
2005.
Senate
panel endorses voter ID bill: Milwaukee Journal Sentinel, Apr. 6,
2005.
4-year
terms for county posts approved: Milwaukee Journal Sentinel, Apr. 6,
2005.
State voters favor longer terms for county officials: Appleton
Post-Crescent, Apr. 6, 2005.
Still
no to concealed-carry (opinion): Milwaukee Journal Sentinel, Apr. 6,
2005.
Thumbs-down to unfunded mandates: Portage Daily Register, Apr. 6,
2005.
Election reform starts with better information (opinion): Sheboygan
Press, Apr. 5, 2005.
Photo IDs should fit in election reforms (opinion): Wisconsin Rapids
Daily Tribune, Apr. 5, 2005.
Beer tax
bill goes flat at Capitol: Milwaukee Journal Sentinel, Apr. 5, 2005.
Factors threaten long-time ethanol boom: Marshfield News Herald,
Apr. 4, 2004. South Dakota is, in many ways, the birthplace of ethanol.
Midwest energy market powers up: Appleton Post-Crescent, Apr. 3,
2005.
Upcoming Fundraisers
No fundraisers are scheduled for this
week.
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