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June 13, 2003
Wisconsin
Politics
Legislature
Receives Budget Briefing
On June 4 the Joint Finance Committee completed its work on the
State Budget (SB 44). For a summary of the Committee’s actions, go
to
The Hamilton Consulting Group web site.
Both houses received a
briefing on the budget from the Legislative Fiscal Bureau, on Thursday, June
12, at 2p.m. in the Assembly Chambers. A copy of the Legislative Fiscal
Bureau’s
Comparative Summary of Budget Recommendations is now
available on the internet.
The Senate plans to take
the bill up on the floor next week, but Senate Majority Leader Panzer
indicated that Wednesday would be the earliest the Senate would take action.
Assembly Republicans indicated they will not be making substantive changes
to the JFC version of the budget and are expected to take the bill up
shortly following Senate action. Each house is expected to act on other
legislation while the other is debating the budget.
Hearing on Cory Nettles
Appointment
The Senate Economic Development Committee is holding a hearing today,
Friday, on the appointment of Cory Nettles as Secretary of Commerce.
Nettles’ confirmation is expected to be voted on by the full Senate next
week.
Today, the Wisconsin
Economic Development Association (WEDA)
announced its support of Nettles’ confirmation.
Policy Developments
Incentives to
Promote Power Plant Siting Pass Utility Committees in Both Houses
On Tuesday, June 10, the Assembly Energy and Utilities Committee
recommended passage of
AB 378. The bill creates new incentive aid payments
for municipalities and counties that host power plants. The
companion to this bill,
SB 180, was voted out of the Senate Utility
Committee last week, and referred to Joint Finance. The Joint
Finance Committee will hold an executive session on SB 180 next
Tuesday, June 17, at 1pm.
See The Hamilton Consulting
Group’s
Special Update regarding this legislation.
WMC Announces Outlook for
Growth in 2003
On June 11, WMC
announced the results of its
2003 Economic Outlook Survey. The survey reports Wisconsin
industry executive’s prediction that
Wisconsin’s economy will remain flat over the next year, despite
optimism for the National economy. WMC’s announcement did state, however,
that Wisconsin’s
poor climate could improve if key economic development legislation passes in
the next few months. Such legislation would include environmental regulatory
reform, and Wisconsin tax law reform.
Hearing on ‘Single Sales Factor’ Bill
On Thursday, June 12, Sen. Stepp introduced the ‘single sales factor’ bill,
SB 197. The Senate Economic Development Committee is holding
a hearing later today to address the bill. Under current law, the income tax
of a
Wisconsin business is computed by a formula including three factors: a sales
factor (50%), a property factor (25%), and a payroll factor (25%). Under the
bill, property and payroll factors would be phased out over four years and
the sales factor would be increased eventually to 100 percent beginning in
tax year 2008.
The bill is expected to be voted out of committee today and
taken up by the Joint Finance Committee on Tuesday.
On June 5, WMC
highlighted ways in which
Wisconsin businesses anticipate this bill will
improve economic development in the State.
Hearing on Bill Deleting
Gas Tax Indexing
The Assembly Committee on Ways and Means held a hearing on June 11, on
AB 242. No executive action was taken. Under the bill, current law
requiring the rate of motor vehicle fuel tax to be annually adjusted would
be deleted. The bill’s author, Rep. Black, testified that repealing indexing
would improve legislator accountability for future gas tax charges.
Opponents argue, however,
that there would be pressure to increase the gas tax higher than the normal
fractional amount dictated by indexing. Also, theoretically, indexing could
require a reduction in the gas tax. While the bill had a public hearing, it
is not expected to get out of Committee.
Technology Zone Tax Credit
Gets Hearing
The Assembly Committee on Ways and Means met June 11 for a public hearing on
AB 299. The bill adjusts current technology zone tax credit
law to allow “pass throughs” for income reporting so that a partner of a
partnership, a member of a limited liability company, or a shareholder of a
tax-option corporation may claim a tax credit, based on a tax liability
number for the previous taxable year calculated as if the entity had been a
corporation. The Committee announced its intention to act on this bill by
mid-August, after addressing some technical concerns raised by the Dept. of
Revenue.
Public Hearing on
Precluding Damage Suits for Injured Felons
On June 12, the Assembly Judiciary Committee held a hearing on
AB 107, and its companion bill,
SB 38 (passed by the Senate, 31-2, on June 4). The bills
would eliminate civil damages recovery for persons injured while committing
a felony. Testimony focused on some concerns that the language was
overbroad. These concerns did not, however, quash general committee
sentiments supporting the aim of the bill, and an amendment “narrowing the
scope” will be developed.
State Supreme Court Takes
Back Gaming Compact Lawsuit
On Thursday, June 13, the Supreme Court of Wisconsin reinstated Panzer v.
Doyle, the GOP lawsuit concerning recently renegotiated tribal gaming
compacts. See a copy of the
order reinstating the case, after being sent back to the State
from Federal Court.
Lautenschlager Asks Feds to
Delay Approval for WE Energies
Attorney General Peg Lautenschlager
announced June 12 that she had asked the federal government
to delay seeking court approval of its proposed settlement in the WE
Energies case until the public has time to hear more about the deal. See a
copy of
Lautenschlager’s letter to the Feds.
Federal Developments
Incentives to
Promote Power Plant Siting Pass Utility Committees in Both Houses
On Tuesday, June 10, the Assembly Energy and Utilities Committee
recommended passage of
AB 378. The bill creates new incentive aid payments
for municipalities and counties that host power plants. The
companion to this bill,
SB 180, was voted out of the Senate Utility
Committee last week, and referred to Joint Finance. The Joint
Finance Committee will hold an executive session on SB 180 next
Tuesday, June 17, at 1pm.
See The Hamilton Consulting
Group’s
Special Update regarding this legislation.
WMC Announces Outlook for
Growth in 2003
On June 11, WMC
announced the results of its
2003 Economic Outlook Survey. The survey reports Wisconsin
industry executive’s prediction that
Wisconsin’s economy will remain flat over the next year, despite
optimism for the National economy. WMC’s announcement did state, however,
that Wisconsin’s
poor climate could improve if key economic development legislation passes in
the next few months. Such legislation would include environmental regulatory
reform, and Wisconsin tax law reform.
Hearing on ‘Single Sales Factor’ Bill
On Thursday, June 12, Sen. Stepp introduced the ‘single sales factor’ bill,
SB 197. The Senate Economic Development Committee is holding
a hearing later today to address the bill. Under current law, the income tax
of a
Wisconsin business is computed by a formula including three factors: a sales
factor (50%), a property factor (25%), and a payroll factor (25%). Under the
bill, property and payroll factors would be phased out over four years and
the sales factor would be increased eventually to 100 percent beginning in
tax year 2008.
The bill is expected to be voted out of committee today and
taken up by the Joint Finance Committee on Tuesday.
On June 5, WMC
highlighted ways in which
Wisconsin businesses anticipate this bill will
improve economic development in the State.
Hearing on Bill Deleting
Gas Tax Indexing
The Assembly Committee on Ways and Means held a hearing on June 11, on
AB 242. No executive action was taken. Under the bill, current law
requiring the rate of motor vehicle fuel tax to be annually adjusted would
be deleted. The bill’s author, Rep. Black, testified that repealing indexing
would improve legislator accountability for future gas tax charges.
Opponents argue, however,
that there would be pressure to increase the gas tax higher than the normal
fractional amount dictated by indexing. Also, theoretically, indexing could
require a reduction in the gas tax. While the bill had a public hearing, it
is not expected to get out of Committee.
Technology Zone Tax Credit
Gets Hearing
The Assembly Committee on Ways and Means met June 11 for a public hearing on
AB 299. The bill adjusts current technology zone tax credit
law to allow “pass throughs” for income reporting so that a partner of a
partnership, a member of a limited liability company, or a shareholder of a
tax-option corporation may claim a tax credit, based on a tax liability
number for the previous taxable year calculated as if the entity had been a
corporation. The Committee announced its intention to act on this bill by
mid-August, after addressing some technical concerns raised by the Dept. of
Revenue.
Public Hearing on
Precluding Damage Suits for Injured Felons
On June 12, the Assembly Judiciary Committee held a hearing on
AB 107, and its companion bill,
SB 38 (passed by the Senate, 31-2, on June 4). The bills
would eliminate civil damages recovery for persons injured while committing
a felony. Testimony focused on some concerns that the language was
overbroad. These concerns did not, however, quash general committee
sentiments supporting the aim of the bill, and an amendment “narrowing the
scope” will be developed.
State Supreme Court Takes
Back Gaming Compact Lawsuit
On Thursday, June 13, the Supreme Court of Wisconsin reinstated Panzer v.
Doyle, the GOP lawsuit concerning recently renegotiated tribal gaming
compacts. See a copy of the
order reinstating the case, after being sent back to the State
from Federal Court.
Lautenschlager Asks Feds to
Delay Approval for WE Energies
Attorney General Peg Lautenschlager
announced June 12 that she had asked the federal government
to delay seeking court approval of its proposed settlement in the WE
Energies case until the public has time to hear more about the deal. See a
copy of
Lautenschlager’s letter to the Feds.
Political News
Republicans vow budget fight:
Wisconsin State Journal, June 13, 2003.
GOP budget plan creates $1.1 billion deficit, review finds:
Milwaukee Journal Sentinel, June 13, 2003.
Analysis compares budget plans of Doyle, Republican:
Janesville Gazette, June 13, 2003.
John Gard's tax hikes (opinion):
Madison Capital Times, June 13, 2003.
Provision cuts costs for PCB disposal: Green Bay Press-Gazette, June 13,
2003.
Grants key for
plans to become product: Milwaukee Journal Sentinel, June 13, 2003.
Forestry tax exempted from tax cap:
Wisconsin State Journal, June 12, 2003.
Insurance rulings get overturned: Appleton Post-Crescent, June 12, 2003.
New ozone standards under fire: Green Bay Press-Gazette, June 12, 2003.
Car
seats get ease-of-use ratings: Wisconsin State Journal, June 12, 2003.
Road construction spared pain we should share (opinion): Appleton
Post-Crescent, June 12, 2003.
Doyle may reject whole GOP budget:
Madison Capital Times, June 11, 2003.
Most firms see
moderate economic growth: Milwaukee Journal Sentinel, June 11, 2003.
Natural
gas plants could burn money: Wisconsin State Journal, June 11, 2003.
Assembly plan would ease state law for energy group: Green Bay
Press-Gazette, June 11, 2003.
Mercury a mystery: Racine Journal Times, June 11, 2003.
The DNR
under the gun (opinion): Milwaukee Journal Sentinel, June 11, 2003.
The uninsured driver: Racine Journal Times, June 11, 2003.
DNR aims to cut mercury waste: Green Bay Press-Gazette, June 10, 2003.
1 million
jobs lost: Madison Capital Times, June 9, 2003.
4th
summit set to consider economy: Milwaukee Journal
Sentinel, June 9, 2003.
Businesses may suffer under ozone designation: Janesville Gazette, June
9, 2003.
Bed tax worries private-pay clients: Green Bay Press-Gazette, June 9,
2003.
State must encourage entrepreneurs if it intends to flourish:
Milwaukee Journal Sentinel, June 8, 2003.
Traffic deaths on par to pass 2002 toll: Oshkosh Northwestern, June 8,
2003.
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