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June 9, 2004
As we enjoy some long awaited
sunshine and honor the memory of former President Ronald Reagan,
the Legislature continues to contemplate a summer extraordinary
session aimed at government spending and budget processes. As
indicated below, there is currently no consensus on the best way
to proceed.
In
addition to a number of noncontroversial Revisor’s corrections bills, the
governor recently passed Medicaid proposal necessary to bring significant
federal dollars to Wisconsin that had been included in revenues in the state
budget adopted last year. The two “controversial” bills relating to
legislative approval of Indian gaming compacts and medical savings accounts
were both vetoed, adding to the rather long list of gubernatorial vetoes in
the 2003-04 Session.
The Legislative Council has approved most of its interim studies; some of
DOR’s audit targets and motives are being questioned; and, federal class
action legislation is headed for a vote in the U.S. Senate. State agencies
are preparing budgets for the next biennium under strict orders to “hold the
line,” and campaign activity continues to gain momentum. Tidbits will
continue to report on key happenings as circumstances dictate and most
likely on an every other week basis.
Policy Developments
Governor Signs Medicaid Bill
On May 25, Gov. Doyle signed SB 567 as
Act 318, a measure that is
expected to net the state approximately $70 million in federal
Medical Assistance funds. The bill, which had passed both houses
of the Legislature unanimously in the recent Extraordinary
Session, will mean about $53 million added to state coffers, with
the remainder going to counties.
Bill Requiring Approval of Gaming Compacts Vetoed
As expected, Gov. Doyle vetoed
AB 998 which would have required an up or
down “approval” vote by the Legislature on all gaming compacts. This is the
third proposal relating to such approval that the governor has vetoed this
session.
The
most recent version was passed on the heels of a Wisconsin Supreme Court
decision that held that the governor had exceeded his authority in compacts
negotiated last year. (Please see
May 24, 2004 edition of Tidbits for
additional information.
Doyle Vetoes Health Savings Account Bill
SB 568, recently passed by the Legislature, would have mirrored federal
law by creating state individual income tax deductions for contributions to
health savings accounts and earnings on those contributions. The measure
was, however, vetoed by the governor on May 27.
Legislative Council Studies
[The Wisconsin Joint Legislative Council is a body of 22 Legislators
composed of the leadership of the Senate and Assembly, plus 10 members
selected from the membership of both Houses. The council’s primary
responsibility is to establish study committees to examine major issues and
problems identified by the Legislature.
The study committees appointed by the Council are made up of Legislators and
citizens who are interested in or knowledgeable about the study topic. The
committees are often referred to as “interim” study committees because most
of their work is done while the Legislature is in recess. Upon conclusion of
the study committees’ work, the Council reviews legislation recommended by
the committees and, if a majority (12) votes for “introduction,” the bill is
sponsored by the Legislative Council rather than individual legislators.]
The
following special committees (with Chairs) have been approved by vote of the
Council:
-
Adoption and Termination of Parental Rights
Law (Rep. Suzanne Jeskewitz)
-
Child Guardianship and Custody (Sen. Alan
Lasee)
-
Election Law Review (Sen. Joseph Leibham)
-
Municipal Annexation (Sen. Alan Lasee)
-
Recodification of Ch. 45, Veterans (Rep. John
Townsend)
-
Sexually Violent Person Commitments (Sen.
Alberta Darling)
-
State-Tribal Relations (Rep. Terry Musser)
-
Wisconsin’ Transportation Network
Infrastructure (Sen. Ted Kanavas)
(For
additional information on these committees:
www.legis.state.wi.us/lc/2004studies.htm )
Three
additional committees and Chairs have been recommended to the full Council:
-
Recodification of Ch. 938, Juvenile Justice
Code (Rep. Scott Suder)
-
Septage Disposal (Rep. John Ainsworth)
-
Tax Exemptions for Residential Property (Rep.
Jeff Fitzgerald)
Assembly Republicans to Caucus Today, Wednesday, June 9
Majority Republicans in both Houses continue to examine options
regarding a possible constitutional amendment to control government spending
and/or statutory changes that range from a “tax freeze” to an improved and
tighter accounting system for state income and spending.
Assembly Republicans have scheduled a caucus for 2:00 this afternoon to
further explore options. Speculation is strong that there is mounting
pressure to reach a resolution before the end of June, but no clear
consensus is evident at this writing.
DOR Action Draws Criticism
Recent audit activity by the Department of Revenue (DOR) on Wisconsin
firms, particularly banks, which operate out of state subsidiaries, has
drawn criticism from business, banking and economic development
associations.
The
primary criticism is that the DOR is using the audit process to achieve
“combined reporting,” a tax policy that is viewed as anti-economic
development by the above mentioned organizations. The Legislature has, for
more than 20 years, addressed and defeated numerous bills that would have
established combined corporate tax reporting in Wisconsin.
Other
criticisms focus on the potential for increasing the cost of money for
Wisconsin businesses, big and small, and perhaps drying up sources of
“venture capital” at a time when the state is attempting to encourage
investment in seed and early stage companies. The DOR’s retort is that it is
enforcing the current tax law in instances where firms have reallocated
income inappropriately.
The
Department denies that it is attempting to make new law via the audit
process. This is a big issue that is not likely to quietly fade away.
Legislative Offices Close in Honor of President Reagan
Speaker John Gard declared all Assembly offices closed on Friday to
honor former President Ronald Reagan. The Senate authorized each Senator to
close his or her own office and all expected to do so.
Wisconsin
Politics
Three More Assembly Incumbents Not
Seeking Re-Election
Since our last report, three more State Representatives
announced that they will not be running for re-election to their
Assembly seats. Rep. Johnnie Morris (D-Milwaukee) is leaving the
Assembly to run in the 4th Senate District, which is
being vacated by Senator Gwen Moore who is running for Congress.
Rep.
Dan Schoof (D-Beloit) and Rep. Lorraine Seratti (R-Florence) both announced
their retirements from the State Assembly. Neither is seeking other elected
offices at this time. To date, six Republican and seven Democrat incumbents
have announced that they will not be seeking re-election to the Assembly for
the 2005-06 session.
Federal Developments
Class Action Legislation on Senate
Calendar
S.2062, the “Class Action Fairness Act of 2004,” has
passed two major hurdles in the last six months and should be
acted on by the U.S. Senate in the very near future. A bi-partisan
compromise was reached just before the New Year and the cloture
motion which was scheduled for vote on June 1 was withdrawn by
unanimous consent, placing the bill on the calendar for full
Senate action.
Under
the bill, a national class action lawsuit would move to federal court if the
case exceeds $5 million and includes parties from multiple states. In
addition, the bill includes:
-
The
principle of “plain English” in class action settlements.
-
Notice to State Attorneys General of any proposed settlement of affected
states.
-
Heightened judicial scrutiny of settlements, including strengthening the
coupon (to class members) settlement provisions. The bill prohibits a
federal district court from approving a proposed coupon settlement:
absent a finding that the settlement is fair, reasonable and adequate;
a proposed settlement involving payments to class counsel that would
result in a monetary loss to class members unless the loss is
substantially outweighed by nonmonetary benefits; or, a proposed
settlement provides greater sums to some class members solely because they
are closer geographically to the court.
-
The
calculation of contingent and other attorney fees in proposed class action
settlements that provide for the award of coupons to class members.
-
Listing of those factors pursuant to which a district court may decline to
exercise jurisdiction over a class action, and specifies those
circumstances in which a district court must decline jurisdiction.
-
Provisions governing the removal of interstate class actions to federal
district court.
-
Direction for the Judicial Conference of the United States to report on
class action settlements, incorporating recommendations for best court
practices to ensure fairness for class members and appropriate fees for
counsel.
Those
interested in this legislation should contact Senators Kohl and Feingold.
Political News
State employees are agreeing to pay part of health care cost:
Wisconsin State Journal, June 7, 2004.
Prisoners'
health costs rise 500%: Milwaukee Journal Sentinel, June 7, 2004.
State officials seek to draw biotech firms: Appleton Post-Crescent,
June 7, 2004.
Educators, aging groups speak against TABOR: Green Bay
News-Chronicle, June 7, 2004.
Making drugs affordable (opinion): Milwaukee Journal Sentinel, June
6, 2004.
Taxpayer Bill of Rights prompts statewide forum: Marshfield News
Herald, June 6, 2004.
Ziegelbauer to seek seventh Assembly term: Manitowoc Herald Times,
June 5. 2004.
Tax-limiting amendment might be on hold until January: Milwaukee
Journal Sentinel, June 5, 2004.
Small bankers cry foul: Madison Capital Times, June 4, 2004. Fear
state crackdown unfair.
State spending habits show basic budget problem (opinion): Oshkosh
Northwestern, June 2, 2004.
Wisconsin trade with China on the grow: Appleton Post-Crescent, June
2, 2004.
State thwarts energy tariffs: Green Bay Press-Gazette, June 2, 2004.
PSC to
host energy needs meeting: Stevens Point Journal, June 2, 2004.
Power line
debate is moving south: Milwaukee Journal Sentinel, June 1, 2004.
'Drugged
driver' law facing court challenges: Milwaukee Journal Sentinel, May
31, 2004.
When SUVs,
pickups hit cars, legal dent may be big: Milwaukee Journal Sentinel,
May 31, 2004.
TIFs
in some strange places (opinion): Milwaukee Journal Sentinel, May
31, 2004.
Are more local jobs going overseas? La Crosse Tribune, May 30, 2004.
Anti-ozone campaign urges summer of air quality: Oshkosh
Northwestern, May 30, 2004.
Upcoming Fundraisers
June 10
-
Rep. Tom Hebl (D-Sun Prairie), Sun Prairie
-
Committee to Elect a Republican Senate, Chicago.
June 13
June 14
-
Sen. Julie Lassa (D-Plover), Stevens Point
-
Bob
Welch (R) US Senate Candidate, Marshfield
June 15
-
Sen. Dale Schultz (R) 3rd CD Candidate, La Crosse
-
Rep. Jon Richards (D-Milwaukee), Milwaukee
-
Rep. Debi Towns (R-Janesville), Milton
-
Committee to Elect a Republican Senate, Madison
June 16
-
Sen. Dale Schultz (R) 3rd CD Candidate, La Crosse
-
Rep. Jon Richards (D-Milwaukee), Milwaukee
-
Rep. Debi Towns (R-Janesville), Milton
-
Committee to Elect a Republican Senate, Madison
-
Sen. Dale Schultz (R) 3rd CD candidate, Sparta
-
US
Senate Candidate Bob Welch (R), Antigo
June 17
-
Sen. Roger Breske (D-Eland), Milwaukee
-
Sen. Dale Schultz (R-Richland Center), Galesville
-
Bob
Welch (R) US Senate Candidate, Stevens Point
-
Sen. Dave Hansen (D-Green Bay), Green Bay
-
Majority GOP Conduit,Milwaukee
-
Tom
Tiffany (R) 12th Senate Dist. Candidate, McNaughton
June 18
June 19
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