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April 22, 2005
As previously
reported and promised, Joint Finance did start the difficult task
of crating its version of the 2005-07 biennial budget. The process
always gets off to a slow start and builds as the pressure builds.
It is unfair to categorize items on an “importance” scale since
all budgetary items are important to some constituency. There are
issues that attain a higher profile than others and we’ve reported
on a couple of those below. Meanwhile, the work will continue and
intensify over the next two months.
Policy Developments
Joint Finance
Committee Votes to Return Stewardship Funding Oversight to
Legislature
In one of its first orders of business on Tuesday, the Joint
Finance Committee voted to reinstate a provision vetoed by
Governor Doyle in the last budget.
The Committee’s action
restores the authority of the Joint Committee on Finance to review large
projects and development plans under the state’s stewardship program. The
Joint Committee’s authority would apply to projects over $300,000 through a
14-day passive review process. The version passed restores committee
oversight of large stewardship projects which had been in place since 1995
(for projects over $250,000) until the Governor’s action last session. The
$300,000 threshold would result in Joint Finance oversight on about 10
percent of the projects. Budget
Paper 506
JFC Removes Revenue Bonds from Budget
The Joint Finance Committee voted on Wednesday to remove a proposal from
Governor Jim Doyle’s 2005-07 state budget plans that called for issuing $130
million in revenue obligation bonds (backed by alcohol and tobacco excise
taxes) to pay for medical assistance programs.
The Legislative Fiscal Bureau estimated that this
proposal would have cost approximately $230 million to retire these bonds,
including more than $100 million in interest alone. JFC’s action came on a
12-4, party-line, vote. The action creates a $130 million gap in the MA
budget, which co-chair Kaufert and others indicated would be filled by the
committee in future action. The majority sentiment on the committee was in
opposition to one-time borrowing for ongoing base MA costs.
Assembly May Schedule to
Accommodate Joint Finance
Assembly Majority Leader Mike Huebsch announced this week that the Assembly
will be in session on Tuesday, May 3 and Tuesday, May 10 and will not meet
on any other days during those weeks in order to allow the Joint Committee
on Finance more time to work on the state budget. There are no other session
days scheduled in May until the 31st. While the Senate has not
formally announced its plans, the Senate’s schedule is likely to mirror that
of the Assembly.
Assembly Committee Action
On Tuesday, the Assembly Committee on Small Business, following a public
hearing, took action on several economic development related bills:
-
AB-116. Changes definition of industrial development project; limits
scope of certain projects. Passage recommended 7-0.
-
AB-174. Increases to 84, now 79, the number of enterprise development
zones allowed without Joint Finance approval. Passage recommended 7-0.
-
SB-55. Increases to 84, now 79, the number of enterprise development
zones allowed without Joint Finance approval. Concurrence recommended 7-0.
(On March 16, SB 55 passed the Senate on a vote of 30-3.)
PSC Approves Sale of Kewaunee Power Plant
On Tuesday, April 19, the Public Service Commission issued its final order
approving the
transfer of ownership and operational control of the Kewaunee Nuclear Power
Plant to Dominion Energy Kewaunee, Inc. The
Commission formally reopened the approval process on Jan. 21, 2005, in order
to receive further briefs on issues dealing with the potential transfer of
the plant to a subsequent, third-party owner.
Appellate Court Rules on
UIM Definition
The Third District Court of Appeals has
released its opinion on the issue of whether an insurance policy
definition of “underinsured motor vehicle” may validly preclude all
underinsured motorist (UIM) coverage for the UIM insured.
The decision reverses a
Chippewa
County circuit court order. In its decision, the court holds that "tying the
availability of UIM coverage to the amount of the tortfeasor's liability
limits, even when a portion of those funds are paid to another claimant, is
not consistent with any theory of UIM coverage that has been recognized by
Wisconsin courts or approved by the legislature."
Wisconsin Innovation
Network Sponsors State Budget economic Development Forum
“Smart choices in lean times: High-growth economic strategies in the state
budget” is the theme for an
event sponsored by the Wisconsin Innovation Network to be held in
Madison on April 26.
Wisconsin Department of
Administration Secretary Marc Marotta, Senator Ted Kanavas, Representative
Terri McCormick, and Phyllis Wilhelm of Madison Gas & Electric will discuss
economic development initiatives in the 2005-2007 state budget.
Wisconsin
Politics
Speaker Gard
Explores Congressional Run/Green Expected To Announce For Governor
Assembly Speaker John Gard on Wednesday announced that he has set
up an
exploratory committee for a possible bid for the 8th
Congressional District. Gard had said earlier that the time was
not right for a run for Governor, but is excited at the prospect
of running for Congress to represent northeastern Wisconsin.
The 8th
Congressional District seat is expected to be open because U. S.
Representative Mark Green will be running for Governor in 2006. Green is
expected to make his official announcement next week, in advance of the
State Republican Convention which will take place the first weekend in May.
Gard, of Peshtigo, was
elected to the Assembly in a 1987 special election and was picked by his
fellow Republicans to the chamber’s top spot in 2003.
Other Republican state
representatives expected to seek Green's 8th Congressional District seat
include Frank Lasee, Bellevue, and Terri McCormick and Steve Wieckert, both
of Appleton. Former Green Bay Mayor and current Chamber Exec Paul Jadin are
also thought to be interested. Green Bay business consultant Jamie Wall and
former Department of Commerce employee is the only Democrat who has
announced his intention to seek the office.
Federal Developments
Ryan Reintroduces
Social Security Legislation
Congressman Paul Ryan (R-WI) and co-author Sen. John Sununu (R-N.H.),
have
introduced legislation that gives workers the option of
investing in personal accounts.
Ryan’s legislation would
allow workers under the age of 55 to choose whether they wish to stay with
traditional Social Security or invest a part of their payroll taxes in a
tax-free personal account within specific parameters and with continued
oversight by the Social Security Administration. Personal account options
would resemble the federal Thrift Saving Plan (TSP) that Members of Congress
and federal employees have used for years to help them save for their
retirement.
Political News
Doyle's
Medicaid bond plan rejected: Milwaukee Journal Sentinel, Apr. 21,
2005.
Ryan offers
restructuring: Milwaukee Journal Sentinel, Apr. 21, 2005.
Concealed
carry law criticized at rally: Milwaukee Journal Sentinel, Apr. 21,
2005.
Voter
ID the wrong course (opinion): Milwaukee Journal Sentinel, Apr. 21,
2005.
Gard to explore run for Congress: La Crosse Tribune, Apr. 21, 2005.
Child care ratings would help parents choose (opinion): Sheboygan
Press, Apr. 21, 2005.
GOP pols vote to eliminate gov's 'credit card budgeting': Madison
Capital Times, Apr. 20, 2005.
Panel wants control restored: Appleton Post-Crescent, Apr. 20, 2005.
Doyle
warns lawmakers of health care shortfall: Milwaukee Journal
Sentinel, Apr. 19, 2005.
Doyle bashes Social Security plan: Appleton Post-Crescent, Apr. 19, 2005.
State workers are zeroing in on budget talks: Madison Capital Times,
Apr. 18, 2005.
Ryan battles on against boutique gas (opinion): Racine Journal
Times, Apr. 18, 2005.
Wind farms put on hold in Manitowoc: Green Bay Press-Gazette, Apr.
18, 2005.
Passport rule overdue border security measure (opinion): Appleton
Post-Crescent, Apr. 18, 2005.
Pet cloners hope
new lab, lower costs helps spur demand: Janesville Gazette, Apr. 18, 2005.
Revised
tax limit amendment draws legislative leaders' support: Milwaukee
Journal Sentinel, Apr. 17, 2005.
High Fuel Prices Squeeze Profits: Wisconsin State Journal, Apr. 16,
2005.
Minimum Wage Boost Approved: Wisconsin State Journal, Apr. 16, 2005.
WMC partners for driver safety: Madison Capital Times, Apr. 16,
2005.
Upcoming Fundraisers
Monday, April 25
-
U. S. Rep. Ron Kind (D), La Crosse
-
U.S. Rep. Mark Green (R), Milwaukee
Thursday, April 28
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