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April 29, 2005

Neither house of the Wisconsin Legislature met in formal session this past week and the Joint Committee on Finance held only one meeting to vote on inclusion of various items in the State Budget. Even though Republicans dominate membership on the Committee and have a majority in both houses, consensus on key budget items is not coming easily. There is clearly a lot of work left to be done during the crafting of this most critical piece of legislation. The Committee has not officially scheduled next week’s activities, even though the floor periods of both houses have been limited to one day to allow Joint Finance more time work on the State Budget. 

While things were relatively quiet in the Capitol City this past week, the race for Governor has started to heat up with the anticipated announcement this Sunday of Congressman Mark Green’s entry into the race. Green’s opponent for the Republican nomination, Scott Walker, released a poll indicating that the incumbent Governor is “one of the most vulnerable incumbents in the country”. Governor Doyle immediately dismissed the poll as partisan and, thereby, not reliable. It appears that we can expect a lot of gubernatorial politics from now until the election in November of 2006.

Policy Developments

JFC Schedule
The Joint Committee on Finance has not formally scheduled its next meeting on the State Budget and will not get back together until next Wednesday at the earliest. The Committee Chairs continue to be optimistic about completing the Committee’s work on the State Budget by late May, realizing that the bulk of the work is still ahead and that Finance members from the respective Houses need to reach consensus on a number of major issues.

Voter ID Sent to Governor
Governor Jim Doyle has said he plans to veto AB 63 (engrossed version), the voter photo ID bill that has passed both Houses with some bi-partisan support.

Doyle, who vetoed similar legislation two years ago, has said he will not sign the bill despite several changes supporters said address the governor's concerns. Senate Majority Leader Dale Schultz said he’ll join Assembly Speaker John Gard in scheduling a floor vote to attempt an override if Governor Doyle vetoes the measure. Legislative leaders also feel boosted by a recent statewide poll in which over 80 percent (over 60 percent “strongly”) of respondents supported requiring some type of official identification for voters.

Senate to Vote on Product Liability Bill
The State Senate next Tuesday is scheduled to take action on SB 58, which makes changes to product liability law in Wisconsin. Product liability imposes strict liability (no need to prove negligence), and Wisconsin is among a small minority of states that uses what is called the “consumer expectation test” verses requiring proof of “a reasonable alternative design.” This bill would change that and make other modifications relating to manufacturers, sellers and distributors, various defenses and joint and several liability.

The bill has strong support among the business community and defense lawyers and is opposed primarily by the plaintiff’s bar.

Calendar – Wisconsin State Senate

Minimum Wage Bill on Assembly Calendar
Assembly Bill 49, which pre-empts local governments from adopting a minimum wage higher than that set by the state, is one of the bills on the calendar when the Assembly meets next Tuesday.

The bill will essentially be the same one Governor Doyle vetoed last session, when Republicans in the Legislature refused to go along with the Dept of Workforce Development administrative rule increasing the state's minimum wage.

Republican legislative leaders are expected not to block implementation of a new DWD minimum wage rule that would be forwarded to them almost immediately, and the Governor is expected to sign the bill when presented to him. The new rule will adjust the effective dates for the increases from the current $5.15 per hour to $5.70 and ultimately to$6.50.

Advocates say the pre-emption will provide desired uniformity. Opponents have argued the pre-emption will undermine the authority of local governments in places like Madison and Milwaukee, where the cost of living is significantly higher than surrounding areas. Madison has already adopted a local ordinance increasing the minimum wage under current law, and its authority to do so has been upheld in a recent Circuit Court decision.

Calendar – Wisconsin State Assembly

Assembly Medicaid Reform Committee Makes Budget Recommendations
On Tuesday April 26, the Assembly Committee on Medicaid Reform met to discuss MA budget recommendations to be advanced to the Joint Finance Committee. The MA Committee action included the following recommendations.

• Oppose the Governor’s proposed nursing home bed tax increase, HMO Tax, and transfer of $180 million from the Patients Compensation Fund. In total, these three recommendations equate to a $237 million GPR shortfall in the base MA budget, which would presumably have to be made up with other fund sources or MA eligibility/benefit cuts, or some combination of the two.

• Oppose the Governor’s proposal to reduce pharmacy reimbursement for prescription drugs by going from average wholesale price (AWP) minus 13 percent to AWP minus 16%.  Also recommended opposing a reduction in the dispensing fee from $4.38 to $3.88 and opposed elimination of the 5% enhancement for SeniorCare. Together these three recommendations would cost $17.4 million GPR to offset the associated GPR savings estimated in the Governor’s bill. In other prescription drug related action, the Committee generally supported enhanced use of generic drugs but made provision for use of brand name over generic if the cost of the brand drug after manufacturers rebate is less than the cost of the generic equivalent.

• With respect to Long Term Care, the Committee generally recommended that JFC consider the Governor’s Community Relocation proposal and held off action on other items to the Committee’s next meeting on May 4.

• Managed Care recommendations included support for revising the requirement that a mandatory managed care county must have two or more HMO’s offering MA coverage, and identifying alternatives for the state to contract directly with dental service providers as opposed to using contracts with medical HMO’s to secure dental services.

The Committee also considered a number of draft recommendations relating to the state SeniorCare program in relation to the new federal Medicare Part D drug program. However, the SeniorCare recommendations were put on hold to be taken up by the Committee at its follow-up meeting on May 4.

The full set of MA Committee recommendations is expected to be forwarded to the Joint Finance Committee after the MA Committee meets and takes action on a number of items pending for next week.

Natural Resources Board Approves Jobs Act Rule
On April 27 in Prairie du Chien, the Natural Resources Board approved rules creating new registration and general air permit programs. This rule package is the first product of an ongoing effort to streamline DNR’s air permitting program required by the Jobs Creation Act (2003 Wis. Act 118). See Hamilton Consulting Group’s summary of the Jobs Act.

The rule was developed over the past year to create streamlined air permits called registration and general permits. A key aspect of these air permits is the Jobs Act directive that they be issued within 15 days of the application (compared to six months or more under the current scheme). The registration permit process is particularly simply, but only smaller sources can use them under the approved version of the rule. Industry’s request to expand their availability to larger sources was rejected by the Board, but ongoing efforts to help larger sources will be an important component of the next phase in DNR’s air permit streamlining efforts.

DNR Hunting License Fee Increases Scaled Back
The Legislature's Joint Committee on Finance on Wednesday voted to roll back hunting license fee increases proposed by Governor Jim Doyle in his budget. While lower than he had proposed, Governor, Doyle indicated that he was pleased that the Committee supported an increase.

School Choice Bill to Governor
Speaker John Gard recently announced that AB-3 , a bill eliminating the 15 percent cap for the 2005-06 school year for the Milwaukee Parental Choice Program, will be sent to Governor Doyle.  The bill passed both houses of the Legislature, 58-35 in the Assembly and 18-14 in the Senate.

Governor to Sign TIF Trailer Bill
Governor Doyle is expected to sign SB 83, which makes some technical changes and corrections to the landmark TIF legislation enacted last session. The changes clarify legislative intent and allow more communities to benefit from the revised law.

Inc. Magazine Finds Wisconsin Cities Thriving
For the past two years, Inc. Magazine has studied 274 population centers, looking for job creation and other signs that businesses are thriving.

According to the report, Wisconsin has achieved a premier entrepreneurial economy due to the quality of education, avoidance of over concentration in one industry, as well as highly specialized firms in areas such as machine tools, measurement controls, and machinery for making paper products.

In addition to Green Bay, the No. 1 midsize city on last year's list (Down to No. 3 for 2005), the state's standouts include La Crosse (No. 15) and Madison (No. 38—down from #3). Milwaukee has placed at a respectable No. 66, moving up substantially.

Entrepreneurship to be Focus at WEDA Conference (Mar 4 – 6)
Growing Wisconsin Through Entrepreneurship is the focus at the Wisconsin Economic Development Association’s Spring Conference to be held May 4 – 6.

For more information or to register for the conference, go to Wisconsin Economic Development Association’s website.

Governor's Conference to Focus on Exporting
The Wisconsin Department of Commerce is taking registrations for the “Governor’s Conference on Exporting” to be held on Tuesday, May 17, 2005 at the Italian Community Center in Milwaukee.

The conference will address topics such as International Law, International Programs, and the Do's and Taboos of International Trade.

Wisconsin Politics

Green to Announce for Governor
U. S. Representative Mark Green will make it official on Sunday when he will formally announce his candidacy for Governor from his home base in Green Bay. Congressman Green will make several additional stops around the state, including Madison on Monday morning where he will hold a press conference in the Assembly Chamber. Green served several sessions in the State Assembly before being elected to the House of Representatives.

Milwaukee County Executive Scott Walker had earlier announced his candidacy for Governor. The two Republicans will ultimately face off in a primary to determine who will be the party’s candidate against incumbent Gov. Jim Doyle who is expected to seek reelection. The Republican Party has its 2005 State Convention next week where Walker and Green will be very evident. While the Convention will not be formally indicating a preference, there will be much discussion among delegates and a straw poll or two.

Political News

Campaign stump not on Doyle’s agenda: Appleton Post-Crescent, Apr. 29, 2005.

Higher gas prices don't mean more money for state: Rhinelander Daily News, Apr. 28, 2005.

Walker says poll shows Doyle is weak: Milwaukee Journal Sentinel, Apr. 28, 2005.

Economy could be sputtering: Milwaukee Journal Sentinel, Apr. 28, 2005.

Bait-and-switch budgeting (opinion): Milwaukee Journal Sentinel, Apr. 28, 2005.

Economic Growth Slowest In Two Years: Madison Capital Times, Apr. 28, 2005.

Plan to streamline air pollution permits OK'd: Milwaukee Journal Sentinel, Apr. 28, 2005.

County air gets an ‘F’: Manitowoc Herald Times, Apr. 28, 2005.

Asbestos Fund Can Solve Lawsuit Crisis: Wisconsin State Journal, Apr. 28, 2005.

Drug Co-op Saves Millions: Wisconsin State Journal, Apr. 28, 2005.

State high court weighs award limits: Milwaukee Journal Sentinel, Apr. 27, 2005.

Smaller rise in hunting fee backed: Milwaukee Journal Sentinel, Apr. 27, 2005.

Photo ID bill goes to Doyle: Milwaukee Journal Sentinel, Apr. 27, 2005.

Budget uneven despite quick fixes, expert says: Marshfield News Herald, Apr. 27, 2005.

Lawmakers debate changes to SeniorCare program: Janesville Gazette, Apr. 27, 2005.

Doyle asks GOP for help: La Crosse Tribune, Apr. 27, 2005.

General Motors Corp. might close more factories: Marshfield News Herald, Apr. 27, 2005.

Lasee: TABOR remains our best course (opinion): Wausau Daily Herald, Apr. 27, 2005.

Lawsuit challenges DNR's permit for plants' cooling system: Janesville Gazette, Apr. 27, 2005.

Attorney stands firm on Milton ethanol plant petitions: Janesville Gazette, Apr. 27, 2005.

A sound bill on older drivers (opinion): Milwaukee Journal Sentinel, Apr. 27, 2005.

Highway 23 project caught up in politics: Sheboygan Press, Apr. 26, 2005.

$1.43 Fuel! No Kidding: Madison Capital Times, Apr. 26, 2005.

Minimum Wage Bill Gets Rolling In Assembly: Wisconsin State Journal, Apr. 26, 2005.

Panel says wage floors shouldn't top state's: Milwaukee Journal Sentinel, Apr. 26, 2005.

Enact statewide smoking ban (opinion): Milwaukee Journal Sentinel, Apr. 26, 2005.

Bill would limit utility jobs for ex-PSC members: Milwaukee Journal Sentinel, Apr. 25, 2005.

Nuclear plant sale approved: Green Bay Press-Gazette, Apr. 24, 2005.

Save jobs by repealing estate tax (opinion): Janesville Gazette, Apr. 24, 2005.

Wisconsin tourism industry not concerned about high gas prices: Janesville Gazette, Apr. 24, 2005.

Lawsuit unfortunate, but necessary to fight mercury (opinion): Appleton Post-Crescent, Apr. 24, 2005.

Senators' Bill Backs Stem Cell Research: Madison Capital Times, Apr. 23, 2005.

State Senator Hansen Won't Run For Congress: Madison Capital Times, Apr. 23, 2005.

Upcoming Fundraisers

There are no fundraisers scheduled for the week of May 1.