Wisconsin political news for
clients and colleagues.
Previous issues of
Political Tidbits can be found at Tidbits Archive.
Click here to begin your free subscription.
May 20, 2005
The State
Legislature’s budget-writing Joint Committee on Finance began to
pick up the pace this past week and is expected to be even busier
over the next two weeks. The Committee continued its rejection of
Governor Doyle’s recommended “transfers” from existing funds to
help balance the budget and respond to the state’s deficit. The
Committee will have to determine other means to fill the fiscal
gaps that were being funded by the transfers.
In other action, the Joint
Committee on Finance adopted a compromise, supported by the administration,
relating to minor source air operation permits. Please see Pat Osborne’s
Update on the Hamilton Consulting Group web site for further information
on this compromise.
There was good news on the
revenue front as the Legislative Fiscal Bureau’s new estimates have the
state’s revenues coming in higher than estimated in January. The Governor
used the news to renew his commitment to fully fund 2/3 of school costs,
while Republican leaders said the money is needed to reduce the deficit, not
fund new programs.
Wisconsin received another visit from President Bush who was in
Milwaukee to
tout his Social security reforms. His pitch was aimed heavily at younger
workers and the younger generation in general.
Policy Developments
Bill Introduced Requiring
Conveyance of Property for Transmission Lines
Representative Phil Montgomery (R-Ashwaubenon), Chair of the
Assembly Committee on Energy and Utilities, and numerous
colleagues from both parties (the chief Senate author is Jeff
Plale a Democrat from South Milwaukee) and both Houses have
introduced legislation to require conveyance of property for the
construction of electric transmission lines.
The bill,
AB 437, provides that if the Public Service Commission (PSC)
grants a Certificate of Public Convenience and Necessity for a
high voltage transmission line on public property, the public
owner shall grant an easement to a public utility at fair market
value.
The bill was introduced in response to
Douglas County’s refusal to negotiate on the Arrowhead-Weston
transmission line. Under the proposal, public and private property
would now be treated the same. Currently, private property can be
condemned, but public property cannot. The bill is intended to
reduce delay and avoid re-routing of a line which, in addition to
delay, can be very costly.
Assembly Bill 437 is scheduled for public hearing in the Assembly Committee
on Energy and Utilities next Tuesday. Legislative leaders from both Houses
are listed as co-sponsors, indicating that expedited action can be
anticipated.
Transitional Compromise Reached on Minor Source Air Permit Fees
On May 18, 2005, the Joint Finance Committee adopted, on a 16-0 vote, a
compromise version of the Governor’s proposal relating to minor source air
operation permits. The motion was supported by the Administration and
industry groups that negotiated modifications to the original bill with the
Department of Natural Resources.
In
general, the Governor’s proposal was advanced to address issues raised by
the U.S. EPA with regard to deficiencies in Wisconsin’s Air Program. The
compromise adopted by JFC similarly addresses those same EPA issues. Issues
addressed in the compromise include:
For a
detailed analysis, including a comparison of current law, the Governor’s
proposal, and the compromise adopted by the Joint Finance Committee, please
see the
Update prepared by Pat Osborne of The Hamilton Consulting Group.
JFC Rejects Transfer from Malpractice Fund
By a vote of 14-2, the Joint Finance Committee refused to allow a
transfer of $179 million out of the Patients Compensation Fund to help cover
a gap in the state’s Medicaid program.
The
fund was set up thirty years ago to provide health care providers with
excess medical malpractice coverage over and above what they are required to
carry. The fund ensures that injured patients and their families receive
adequate compensation for economic damage awards. In addition, the fund aids
in keeping malpractice costs in line, which, along with the medical
malpractice caps on noneconomic damages, helps to attract health care
professionals to practice in Wisconsin.
Joint Finance Backs DFI Budget to Implement Loan Originator Program
The Joint Finance Committee (JFC) this week supported the Governor’s
recommendation to provide $888,800 in each year to administer the mortgage
loan originator program that was created under 2003 Wisconsin Act 260.
Act
260 requires, with exceptions, that individuals seeking to be registered as
mortgage loan originators or solicitors must pass a competency examination
in order to be licensed. These exams are required to be in place by July 2,
2005. Also, an individual seeking to renew a license is required to complete
16 hours of continuing education or to pass an examination, effective with
renewals on July 1, 2007.
The
amount approved by JFC would be used for supplies and services to pay for
test development, test management, administration of a continuing education
approval and tracking program, and licensee management. Funding would come
from new examination fees to be established by administrative rule.
Joint Finance – May 23 and 24 in Session
Joint Finance has scheduled agenda for May 23 and 24, but is expected to
meet several more days next week. For details on the agenda, see the
schedule of committee activities.
LFB Study: Tax Revenues Higher than Previously Expected
Based on more reacent tax collections data and the new national economic
forecast by Global Insight, Inc., revenues are expected to be higher than
estimated in January, according to a new
report by the Legislative Reference Bureau. The new estimates show
revenues exceeding the previous estimates by $129 million in 2004-05, by
$137.6 million in '05-06, and $82.4 million in '06-07.
The
reason for the increase according to the LFB, was strong growth in
individual income tax collections. The LFB also revised upward its forecast
for personal income growth.
Governor Doyle used the good news to plead his case for the state to fund
two-thirds of the costs of public education, which he promised in his
budget. Speaker Gard’s reaction was positive, but added that it should be
kept in perspective, noting that any new revenue growth should be viewed as
a way to help fix the budget deficit and not as a way to create new programs
the taxpayers can’t afford.
Change to Driver License Application Advances
Those applying for a Wisconsin driver’s license would have to prove they
are in the country legally under legislation an Assembly committee approved
Wednesday. Unless Wisconsin changes its law, Wisconsin Drivers’ licenses
would not be recognized to allow Wisconsin residents to board airplanes or
enter federal buildings when the new federal law goes into effect in 2008.
The federal law is intended to shore up defenses against terrorism.
The bill,
AB 69, approved 8-3 by the Assembly Committee on Criminal Justice and
Homeland Security, seeks to bring the state in to compliance with the new
federal law. Wisconsin is among the few states that do not currently require
proof of residency and expiration date of legal alien status.
The bill now goes to the full Assembly. It needs approval from both chambers
of the Legislature and the Governor’s signature to become law.
Wisconsin Exports Continue to Increase
Governor Jim Doyle announced that Wisconsin exports continued to show
strong gains though the first quarter of 2005. The quarterly total of $3.4
billion represents an increase of 16.7 percent over the same period in 2004.
For the period, US exports grew by 8.8 percent, well below Wisconsin’s
pace.
Wisconsin’s largest international exporting market, Canada, grew by 12.0
percent to $1.3 billion. Exports to Mexico, Wisconsin’s second largest
export market, were up 42.0 percent to $301.8 million. China ranked third in
purchases from Wisconsin with a 19.4-percent increase to $164.1 million.
Permits Issued for Oak Creek Plants
In a recent press release, WE Energies announced that the U.S. Army
Corps of Engineers issued the federal permit necessary for construction of
the new coal-fueled generating units in Oak Creek. All the major permits
necessary to commence construction of the new units have now been
issued. Several of the permits previously issued are, however, the subject
of judicial or administrative challenges.
In
addition, a decision is pending from the Supreme Court of Wisconsin
regarding the validity of the Certificate of Public Convenience and
Necessity granted for this project. The decision, which is critical to the
project, is anticipated before the end of the Supreme Court's session, which
is expected to be no later than June 30, 2005.
Wisconsin
Politics
President Bush Visited Milwaukee on
Thursday
President George W. Bush yesterday spoke to a crowd of about
500 people at the Calatrava addition to the Milwaukee Art Museum.
The President used the occasion to promote changes to the current
Social Security System.
The
President attempted to dispel “common misconceptions” about his plan and
targeted much of his remarks at younger workers and the younger generation
in general. He reminded the audience that his plan would in no way impact
persons born before 1950 but that it is unfair for younger workers to be
contributing to a system that is going bankrupt.
The
President also called for a “progressive indexing” of benefits, which would
index lower income recipients to wages and higher income brackets to
inflation. He stated that a reduction in payouts to higher income brackets
would be another help to keeping the program solvent.
Representative Wieckert Will Not Run for Green’s Congressional Seat
State Representative Steve Wieckert, a Republican from Appleton,
announced on Thursday that he will not enter the race for the 8th
Congressional District seat being vacated by U.S. Representative Mark Green
who has announced his candidacy for Governor.
Wieckert has for several months been exploring a potential entry into the
race, although he had hinted that he would not seek the Republican
nomination if Speaker John Gard were to be a candidate. Gard, who has not
officially announced, has created an exploratory committee and is expected
to officially announce later this year.
Other
likely Republican candidates are also members of the State Assembly, Rep.
Terri McCormick of Appleton and Frank Lasee of Bellevue.
Federal Developments
Supreme Court Overturns State
Liquor Laws
States must permit in-state and out-of-state wineries to play
by the same rules when it comes to shipping their product directly
to consumers, the
U.S. Supreme Court ruled on Monday.
By a 5-to-4 vote, the court overturned state
liquor laws in New York and Michigan that gave preferential treatment to
in-state economic interests. Both states permit in-state wineries to ship
directly to consumers, bypassing both retailers and wholesalers, while out
of state wineries must go through a wholesaler and retailer. Their
regulatory schemes ban the direct shipment of out-of-state wine to in-state
consumers. Both regulatory schemes were challenged in federal district
courts by out-of-state wineries and in-state wine consumers.
Writing for the majority, Justice Anthony Kennedy held that
the above referenced laws discriminate against interstate commerce in
violation of the Commerce Clause of the U.S. Constitution. The Court also
found that the discrimination is neither authorized nor permitted by the
21st Amendment that repealed Prohibition. "[The laws] deprive citizens of
their right to have access to the markets of other States on equal terms,"
wrote Kennedy.
Political News
Wieckert decides not to run for Green’s seat: Green Bay
Pres-Gazette, May 20, 2005.
Avoiding
the Social Security debate: Milwaukee Journal Sentinel, May 19,
2005.
State aid
to foster care rejected: Milwaukee Journal Sentinel, May 19, 2005.
Inflation
slows in April, soothing fears: Milwaukee Journal Sentinel, May 19,
2005.
Seeing China's importance (opinion): Milwaukee Journal Sentinel, May
19, 2005.
Rankings give GM good
news: Janesville Gazette, May 19, 2005.
Bill would
relax rules on power plant projects: Milwaukee Journal Sentinel, May
19, 2005.
Oak Creek
project gets wetland permit: Milwaukee Journal Sentinel, May 19,
2005.
Wisconsin
among states filing suit against EPA: Janesville Gazette, May 19,
2005.
Opinions
collide on pharmacy morals bill: Milwaukee Journal Sentinel, May 18,
2005.
Testimony urges support for rights of pharmacists, patients:
Wisconsin State Journal, May 18, 2005.
Feingold’s bill would force Congress to do something (opinion):
Appleton Post-Crescent, May 18, 2005.
Bill
would protect pharmacists who refuse to fill birth control: Greater
Milwaukee Today, May 18, 2005.
Senate passes $295B highway bill: Appleton Post-Crescent, May 18,
2005.
Wisconsin senators oppose highway bill: Green Bay Press-Gazette, May
18, 2005.
Calumet County Board blocks wind turbines: Appleton Post-Crescent,
May 17, 2005.
Concerns about factory jobs fade: Green Bay Press-Gazette, May 18,
2005.
The Summer Surge: Wisconsin State Journal, May 18, 2005.
Beer case
may come to a head: Milwaukee Journal Sentinel, May 17, 2005.
State IDs face redo, or refused: Appleton Post-Crescent, May 18,
2005.
Panel votes
down transfer for Medicaid program: Milwaukee Journal Sentinel, May 18,
2005.
State committee drops Doyle’s plan to use malpractice funds for deficit:
Appleton Post-Crescent, May 18, 2005.
Panel Rejects Key Part Of Doyle Budget: Wisconsin State Journal, May
18, 2005.
Panel Votes To Repeal Plan Law: Wisconsin State Journal, May 18,
2005.
State cash discovery a numbers game at best (opinion): Oshkosh
Northwestern, May 18, 2005.
GOP
continues push on voter IDs: Milwaukee Journal Sentinel, May 16,
2005.
Doyle puts a high price on foster care: Manitowoc Herald Times, May
16, 2005.
Conference to look at exporting for small business: Wausau Daily
Herald, May 16, 2005.
Don't
pre-empt cities on wage (opinion): Milwaukee Journal Sentinel, May
16, 2005.
Lawmakers
push interstate campuses: Milwaukee Journal Sentinel, May 16, 2005.
4K,
integration funds could lose out in budget: Milwaukee Journal
Sentinel, May 15, 2005.
Pay hike won’t affect many locally: Appleton Post-Crescent, May 15,
2005.
Income is
more like outgo for southeastern Wisconsin: Milwaukee Journal
Sentinel, May 15, 2005.
Minimum-wage deal will help (opinion): Green Bay Press-Gazette, May 15,
2005.
Being
smart about growth (opinion): Milwaukee Journal Sentinel, May 15, 2005.
Stop
region's income drain (opinion): Milwaukee Journal Sentinel, May 15, 2005.
Alcohol for young soldiers isn't show of patriotism (opinion):
Marshfield News Herald, May 16, 2005.
A new push
to repair elections: Milwaukee Journal Sentinel, May 15, 2005.
TABOR will hurt govt. services (opinion): Manitowoc Herald Times,
May 15, 2005.
Union Leaders Try To Reverse Decline: Wisconsin State Journal, May
14, 2005.
Upcoming Fundraisers
Tuesday, May 24
Thursday, May 26
| 
