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May 15, 2008
Yesterday, May 14, the Wisconsin Legislature gave final approval to the
Budget Repair Bill as well as the Great Lakes Compact. Governor Doyle has
not identified specific vetoes, but has noted that he feels he has ample
authority to address his concerns regarding the budget bill.
Policy Developments
Legislature Holding Special
Sessions
The Legislature is currently meeting in three special
sessions: the December 2007 Special Session on campaign finance
reform, the March 2008 Special Session on the budget deficit,
and the April 2008 Special Session on the Great Lakes Water
Compact. Both houses of the legislature have been meeting in
skeleton session in order to continue all three special
sessions.
Budget Repair Bill - The bill contains pieces from both of the budget
repair bills that passed the Senate and the Assembly earlier this year and
parts of the governor’s proposal. The Senate narrowly approved the budget
repair bill Tuesday (17-16),
and the Assembly voted (51-46)
for passage on Wednesday, May 14.
While the Governor’s brinksmanship in threatening to cancel May and June bid
lettings for highway projects helped leverage action in passing a budget
repair bill, the measure adopted by the Legislature was not agreed to by the
Governor nor is he supportive of some of the key provisions.
Governor Doyle made his position on the legislative deal very clear at an
afternoon press conference on May 12. Key points included: (1) education is
his top priority and he does not approve of moving $125 million in school
aid payments into the next fiscal year; (2) the $209 million in revenue the
Legislature derived through additional tobacco securitization is too much
and well beyond the $30 million in refinancing he proposed in his original
bill, and; (3) the transportation package in the main budget was adequate
and he did not understand why the Legislature would increase transportation
funding in the budget repair bill.
The
Governor did not identify or directly threaten specific vetoes. He
indicated he needed to review the language of the bill the Legislature put
on his desk and consider his options, but did note that he felt he had ample
veto authority to address his concerns.
The
budget compromise includes the following:
-
DOA secretary authority to lapse or transfer
funds to the General Fund. Require $69 million during each year of the
2007-09 and 2009-11 fiscal biennia. This is in addition to the $200
million included in Act 20.
-
Limitation on lapse from DOT. Limit transfer
from DOT to $50 million; require any lapse be from SEG appropriation for
state highway rehabilitation. Authorize $50 million General
Fund-supported GO bonds for state highway rehabilitation program.
-
Transfer of Real ID implementation funds.
Prohibit JFC from providing an appropriation to supplement to DOT to
supplement cost of implementing Real ID. Increase estimated
transportation fund appropriation lapses by $9.5 million in 07-08, $12.2
million in 08-09 to General Fund.
-
DOT highway fund program funding
adjustments. Provide increases of $20 million in 07-08 for major highway
development program and $56,967,500 in 07-08 for state highway
rehabilitation program (FED).
-
County transportation aid payment delay to
fund state highway maintenance. Permanently delay the April quarterly
county general transportation aid payment until July and provide
additional funding for state highway maintenance in 08-09.
-
Transportation Fund deficit. Reduce funding
by $28 million SEG in 08-09 for major highway development program and
provide a corresponding increase from SEG-S (currently authorized
transportation revenue bonds) in 08-09.
-
Equalization Aid payment delay. Delay
general school aid equalization aid payment by $125 million to the first
Monday in July.
-
Budget stabilization fund transfer. Transfer
$57 million to the general fund.
-
Statutory Balance. Reduce required statutory
balance to $25 million for 07-09.
-
Tobacco Securitization. Increase transfer
from permanent endowment fund to MA trust fund by $209 million in the
biennium (from $50 million annually under Act 20 to $309 million in
08-09).
-
Tobacco use control grants. Increase funding
for the grants by $250,000 in 08-09. (Current base is $15 million
annually).
-
MA benefits funding reduction. Reduce
funding for MA benefits by $24.4 million ($10m CPR & 14m matching Fed.)
to reflect savings DHFS (renamed Dept of Health Services, effective
7/1/08), is expected to generate in the program.
LFB memo on the repair bill:
http://www.legis.state.wi.us/lfb/2007-09Bills/2008_05_12CC.pdf
Great Lakes Compact Adopted - The Great Lakes-St. Lawrence River Basin
Water Resources Compact was adopted by the Wisconsin Legislature [April
2008 SS SB1], passing the Senate on Wednesday (32-1), with Sen. Lazich
voting against. The Assembly voted 96-1 for passage, with Rep. Albers the
lone dissenter.
Already endorsed by Minnesota, Illinois, Indiana and New York, the compact
must pass each of the Great Lakes states before ratification by the U.S.
Congress. Established two years ago by the region’s governors -- along with
companion legislation in the Canadian provinces of Ontario and Quebec -- the
compact provides a model for a standardized, consensus-based approach to
decisions about Great Lakes water use.
The
compact will establish the legal framework for: (1) prohibiting or, in a few
cases, authorizing and regulating new or increased diversions of water to
places outside of the Great Lakes basin; and (2) for regulating large
withdrawals and consumptive uses of water within the basin.
While the Compact was adopted with only two dissenting votes, the final
product was the result of months of negotiations to ensure that Wisconsin
was not placed at an economic disadvantage with its neighboring states.
Kreitlow and Suder to Lead Study Committee on Renewable Fuels
The Joint Legislative Council has announced the creation of a study
committee to look into the economic and environmental impact of the
development and use of renewable fuels in Wisconsin. Sen. Pat Kreitlow
(D-Chippewa Falls) and Rep. Scott Suder (R-Abbotsford) were named co-chairs
of the non-partisan study group, which will be made up of legislators,
citizens and industry experts.
Kreitlow and Suder requested the creation of the study committee to examine
the often controversial issues surrounding bio-fuel. The group will seek
voices from all perspectives to help determine the best course of action for
the state legislature in terms of bio-fuels research, development and use by
consumers.
Organ Donation Campaign Spearheaded by WPS
WPS Health Insurance Corporation, one of Wisconsin’s largest health
insurers, recently announced
ORGANize to Save Lives, a statewide organ/tissue donation campaign, with
the goal of recruiting one million new donors by 2010.
There are currently some 100,000 people on organ donor waiting lists
nationwide. WPS is partnering with UW Health, Wisconsin Manufacturers and
Commerce and the Wisconsin Medical Society for the new effort.
Wisconsin
Politics
Lawmakers Announce Decisions not to Run for Reelection
Rep. Sheryl Albers (R-Reedsburg) announced May 9 that she would
not be running for reelection to the 50th Assembly District
seat. Albers, first elected in a 1991 special election, cited
knee problems as one reason for her decision not to run.
On May 8, Rep. Suzanne Jeskewitz ( R- Menomonee
Falls) announced that she would not be seeking another term in the state
assembly. Rep. Jeskewitz was first elected in 1996 for the 24th Assembly
District.
Albers and Jeskewitz join Sen. Carol Roessler
(R-Oshkosh) and Democrat Reps. Frank Boyle, Barbara Gronemus, David Travis,
as well as Republicans Steve Wieckert, Eugene Hahn, Carol Owens, all who
have previously announced that they will not run for reelection in the fall.
Federal Developments
Farm Bill Passes U.S. House
The U.S. House of Representatives passed the 2008 farm bill
(Conference Report on
H.R. 2419, the Farm, Nutrition, and Bioenergy Act of 2007)
on Wednesday, May 14 by a vote of 318 to 106. The bill is
expected to pass the U.S. Senate, and will go to President Bush,
who has stated his intent to veto it.
Democrat Ron Kind and Republican Paul Ryan lead the opposition to the bill.
In addition, Republicans Tom Petri and James Sensenbrenner as well as
Democrat Gwen Moore voted against the measure. Voting in favor were
Democrats Tammy Baldwin of Madison, Steve Kagen of Appleton and David voted
for the bill.
In the News
House OKs farm bill, but Wisconsin delegation divided:
Appleton Post-Crescent, May 15, 2008. House passed a new farm
policy bill Wednesday with enough votes to override a threatened
presidential veto.
Memorial Day travel expected to decline: Madison Capital Times, May 15,
2008. With gasoline and airfare prices going up, the number of Americans
traveling Memorial Day weekend is expected to go down for the first time in
10 years.
Great Lakes compact passes: Milwaukee Journal Sentinel, May 14, 2008.
Measure awaits Doyle's signature; Assembly narrowly OKs budget-repair bill.
Budget fix heads to governor: Appleton Post-Crescent, May 14, 2008.
Doyle prepares veto pen for repair bill.
End the mandate (opinion): Milwaukee Journal Sentinel, May 14, 2008.
Ethanol has played only a minor role in the rise in global food prices, but
government doesn't know and shouldn't dictate which alternative fuel
technology would be best.
Upcoming Fundraisers
May 17
May 20
May 21
May 28
May 29
For
details, go to
Hamilton Consulting Fundraiser Calendar.
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