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May 13, 2005

The Joint Committee on Finance, in what can best be described as a “deliberate” pace, continues to work on crafting the 2005-07 state budget. The Committee has a lot of work to be done in the next couple of weeks to meet its target of presenting a finished product to the full Legislature by the end of the month. Majority Republicans are obviously having difficulty reaching consensus on a number of key issues. Committee members, Legislative Fiscal Bureau and Administration budget staff and the lobbying corps could be in for a lot of long days and nights between now and May 31.

The minimum wage dispute seems to have been resolved as Governor Doyle and Republican leaders reached an accommodation satisfactory to both and to the business community.

In addition to the Finance executive sessions, numerous key bills are scheduled for public hearing and possible committee action next week.

Policy Developments

Governor Doyle and Legislature Reach Agreement on Minimum Wage
It appears that the standoff between the Governor and Republican leaders in the Legislature over the minimum wage has ended. The two-pronged resolution involves an increase in the state minimum wage and final enactment of legislation that preempts local governments from enacting a local minimum wage higher than that adopted by the state.

Governor Doyle on Wednesday, May 11, released an emergency rule that will raise the minimum wage to $5.70 an hour effective June 1st of this year with another increase to $6.50 an hour on June 1, 2006. The State Senate on Thursday concurred in AB-49 on a 20-14 vote. The bill, which earlier passed the Assembly, prohibits local governments from having a local minimum wage ordinance. Governor Doyle is expected to sign AB 49 into law if the statewide increase goes into place.

The so-called standoff has been going on for over one year. The administration ordered a two-step wage increase in March 2004, raising the rate to $5.70 an hour last October and $6.50 in October 2005. Lawmakers, however, stalled the increase, potentially until the end of the legislative session in December 2006, and the Governor vetoed a preemption bill passed last session because the state increase was not allowed to be implemented.

Madison, Milwaukee and La Crosse have adopted resolutions raising local wages. A lawsuit challenging Madison’s authority to adopt a separate local minimum wage failed. These ordinances will, however be voided under AB 49.

The compromise has received strong support from organizations representing small and large businesses.

“Smart growth Law” Would be Repealed Under Joint Finance Action
In a surprise move, the Legislature’s Joint Committee on Finance (JFC) voted to repeal the “Smart Growth Law” as part of its state budget writing decisions. The Smart Growth program, adopted in 1999, requires counties and other local governments to adopt comprehensive long range land use and development plans by 2010. Proponents of the repeal argued that local communities should not be mandated to follow a particular course and should be free to decide what their futures should look like. Opponents said that local officials need to work together and that about 40 percent of communities have already gone through the Smart Growth process.

JFC Back in Executive Session on Tuesday, May 17
Joint Finance was in session on Wednesday and Thursday of this week and is scheduled to be back at the table at 1:00 pm next Tuesday. (See 5/17/05 Agenda.)

A Busy Week for Public Hearings
Please see Assembly & Senate Schedule of Committee Activities for the week of May 16, 2005 for a complete list of bills that will have public hearings in the State Capitol next week. Among the proposals to be heard are

• SB 184 relating to refundable tax credits for the zone programs.

• AB 233 & SB 136 relating to creating airport development zones.

• AB 203 relating to expert opinion evidence.

• AB 208 (2^nd House) relating to rural Enterprise Development Zones.

• AB 241 (2^nd House) & SB 129 which would transfer the Business Employees’ Skills Training (BEST) grant program to the Technical College System Board.

• SB 69 relating to tax credit for training apprentices.

Voter ID Issue Revisited
After having two previous bills vetoed, Republican lawmakers gave preliminary approval Thursday to another bill that would require voters to show photo identification at the polls. The Senate approved SB-42, 21-12, but Democrats blocked a final vote, meaning that it will be taken up again the next time the Senate meets, now scheduled for May 31. Both houses of the Legislature earlier had passed a similar bill. It was vetoed by Gov. Jim Doyle. The Senate Democrats have, in drafting, an alternative proposal that allows additional forms of identification and would not require a photo ID. The Governor has indicated tentative approval, pending review of the actual draft language.

Meth Bill Advances
The Legislature passed a bill Tuesday that would limit the sale of over-the-counter cold medicines that include a principal ingredient for making methamphetamine.

SB 78 seeks to limit the amount of over-the-counter cold medicine products containing pseudoephedrine consumers may purchase in one buy, as well as limiting the number of products merchants may sell. The bill requires any product containing pseudoephedrine to be sold behind the counter by pharmacists or a pharmacist's assistant.

The buyer would be limited to 7.5 grams for 30 days, and would have to show a photo identification card and sign a log book at the time of purchase.

Supporters of the legislation admit the restrictions would be an inconvenience for Wisconsinites looking for a remedy for their colds, but they insist it's a small price to pay for giving law enforcement a key tool in battling the highly addictive drug.

Annual Economic Study Documents Importance of Tourism
The Wisconsin Department of Tourism recently released a summary of last year’s traveler spending in Wisconsin. Travelers spent about $11.8 billion in Wisconsin in 2004 with more than half of that amount going toward shopping and food purchases.

The 2004 economic impact of traveler spending included the creation of 309,000 full-time job equivalents and more than $6.65 billion in income for Wisconsin residents through the jobs, salaries and other travel-related commerce. Of the total spent in 2004, about $1.36 billion is counted as state revenue and $556,000 went directly to local governments as revenue.

Federal Developments

President Bush Expected to Discuss Social Security in Milwaukee Next Week
Wisconsin continues to be a draw for high-profile politicians and leaders. Republicans expect President Bush to visit Milwaukee next week to discuss Social Security. John Edwards was in the state last month, as well as U.S. Sen. Hillary Clinton, who spoke at the Wisconsin Women in Government scholarship dinner.

Wisconsin Military Bases Affected by Recommended Closures/Realignments
The Pentagon today released its recommendations on military base and center closing which would put numerous Wisconsin civilian jobs at risk.

Baldwin Sponsors Mercury Bill
Democratic Rep. Tammy Baldwin is sponsoring legislation to reduce emissions from electric power plants. While limiting pollution containing mercury from power plants and industrial sources, Baldwin’s bill will also target products containing mercury such as motor vehicle parts and thermostats.

Baldwin wants federal matching funds for automakers to remove the parts of their vehicles that contain mercury. Autos, she said, are a major source of mercury pollution. Her bill, similar to one she introduced last year that did not make it out of the House Energy and Commerce subcommittee, also would establish a grants program to encourage the safe disposal and recycling of mercury products. It also would ban mercury thermometers. Three of Wisconsin's neighbors - Illinois, Michigan and Minnesota - already have done so.

Political News

Joint Finance Committee proposes DNR purchase state-owned land: Appleton Post-Crescent, May 13, 2005.

Committee votes to end Smart Growth: Marshfield News Herald, May 13, 2005.

Doyle might back voter ID: Milwaukee Journal Sentinel, May 13, 2004.

Governor, lawmakers close in on minimum wage deal: Stevens Point Journal, May 13, 2005.

Energy rates may climb: Wisconsin Rapids Daily Tribune, May 13, 2005.

Bill takes first step toward workplace smoking ban (opinion): Sheboygan Press, May 13, 2005.

Drug repository bill waiting for Doyle’s approval: Oshkosh Northwestern, May 13, 2005.

Insuring the uninsured (opinion): Milwaukee Journal Sentinel, May 13, 2004.

Fund Medicaid With Cigarette Tax (opinion): Wisconsin State Journal, May 12, 2005.

Doyle, GOP agree on wage increase: Milwaukee Journal Sentinel, May 12, 2004.

Senators return Doyle pick: Milwaukee Journal Sentinel, May 12, 2004.

Doyle asked to replace DNR board member: Appleton Post-Crescent, May 12, 2005.

Budget panel votes to kill 'Smart Growth': Milwaukee Journal Sentinel, May 12, 2004.

Arrests sought in election fraud: Milwaukee Journal Sentinel, May 12, 2004.

Madison, state have bigger needs than altering drinking age laws (opinion): Fond du Lac Reporter, May 12, 2005.

Bill would rein in access to cold medicines: Appleton Post-Crescent, May 12, 2005.

Lawmakers Crack Down On Meth Production: Wisconsin State Journal, May 11, 2005.

Doyle losing more ground on ballot fraud problems (opinion): Oshkosh Northwestern, May 11, 2005.

Doyle pushes budget as fix for economy: Milwaukee Journal Sentinel, May 10, 2005.

Tax gripers aside, state biz climate lauded: Madison Capital Times, May 10, 2005.

Baldwin brings back bill curbing mercury: Madison Capital Times, May 10, 2005.

Medicaid helping schools trim funding shortages: Milwaukee Journal Sentinel, May 9, 2005.

Hundertmark throws her hat in the ring: Madison Capital Times, May 9, 2005.

Doyle, GOP rushing toward another crash: La Crosse Tribune, May 9, 2005.

Republicans get early start revving up 2006 campaigns: Milwaukee Journal Sentinel, May 8, 2005.

Congress, more than Gov. Doyle, owes explanation on prescription drugs (opinion): Tomah Journal, May 8, 2005.

Job Growth Better Than Expected: Wisconsin State Journal, May 8, 2005.

Upcoming Fundraisers

Monday, May 16

• State Senate Democratic Committee, Green Bay

• Sen. Jeff Plale (D-South Milwaukee), Milwaukee

• Rep. Leah Vukmir (R-Wauwatosa), Wauwatosa

Thursday, May 19

• Sen. Dale Schultz (R-Richland Center), Lake Mills

• Rep. Pettis (R-Hertel), Osceola

• Rep. Jim Kreuser (D-Kenosha), Kenosha