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June 25, 2004
The determination
by the State Senate not to address a proposed constitutional
amendment to control the growth of government spending this summer
means that, barring an unforeseen crisis, the Legislature will not
be back in session until January 2005. The primary attention and
focus over the next several months will be on the development of a
proposed state budget for 2005-07 and the elections scheduled for
September (Primary) and November (General).
Tidbits will monitor
significant activity within the various state agencies as they struggle to
develop their respective budgets in another tight fiscal atmosphere. We
often hear about “the need to keep policy out of the state budget.” That
comment is aimed at policy items that may get included in state budgets that
have no fiscal impact on state or local finances and should be addressed in
separate legislation. In fact, there is no more significant policy
enactment than adoption of the state budget even without the
“pure policy” items. Input into that process is probably never-ending
and the June to October timeframe in the even-numbered years among the most
critical.
Tidbits will also
continue to report on election activity with emphasis on open seats and
those races that are expected to be the most competitive. After the July
filing deadline, we will begin to provide background information on key
races and the candidates.
Policy Developments
No Vote on TABOR;
Referendum Delayed; Tax Freeze an Election Issue
The State Senate has put an end to speculation regarding an
extraordinary session this summer to consider a proposed
constitutional amendment on controlling the growth of government
spending (TABOR) or reenactment of a “tax/levy freeze”. Discussion
among Senate Republicans led to the conclusion that the timing for
consideration of a constitutional amendment as a way of
controlling spending was not right at this time.
Senate Majority Leader Mary
Panzer said that the long-term solution is to propose a constitutional
amendment to the people of the state. “We’re taking our ideas for a
taxpayer’s bill of rights directly to the voters over the next several
months, and we’ll listen to what they have to say. We’ll use that feedback
to craft the best proposal and take it up in our next legislative session.”
The Assembly, on the other
hand, seemed more eager to address both the constitutional amendment and a
new tax freeze this year. After numerous caucuses and some public
differences on the best approach, there was some indication that Assembly
Republicans may have been near a consensus and were anxious to move on the
constitutional amendment, although no final proposal was released.
A constitutional amendment
must be approved by two consecutive sessions of the Legislature before being
put before voters in a statewide referendum. A favorable vote this summer
would have allowed the next Legislature that convenes in January to take the
second vote next year, meaning the referendum could have occurred in 2005.
Now, the earliest a second legislative vote could occur would be at the
start of the 2007-'08 session.
While there will not be a
vote on a “new” tax freeze proposal, expect the issue to be very prominent
in the upcoming state elections. A “tax freeze” was adopted as part of the
state budget; was vetoed by the governor; and Democrat votes prevented an
override.
Mercury Emissions Rule
Approved by Natural Resources Board
On June 23, the Natural Resources Board approved revisions to DNR’s
controversial rule regulating mercury emissions from the largest utilities
in the state. The rule calls for a 75 percent reduction in mercury emissions
by 2015 from the four largest utilities – WE Energies, Alliant Energy,
Wisconsin Public Service Corp., and Dairyland Power. The revised rule now
goes back to the Senate Environment and Natural Resources Committee and the
Assembly Natural Resources Committee. In August 2003, these committees
rejected the previous version of the rule that was adopted by the board on
June 25, 2003. Since it’s a return visit to the Legislature, the committees
have only 10 days from referral to act on the newest version of the rule.
Although the rule targets
emissions from utilities, organizations that represent utility ratepayers
such as Wisconsin Manufacturers & Commerce (WMC) had a keen interest in the
rule. In addition to rate impacts, WMC and legislators also had an interest
in assuring the revised rule was consistent with provisions in the Jobs
Creation Act relating DNR’s authority to implement state mandates that are
more costly than federal standards. (See Hamilton Consulting Group’s
Jobs Act summary) Ultimately, the affected utilities and WMC removed
their opposition to the rule upon an agreement that the state rule would
give way to the federal standard once promulgated. While the Senate and
Assembly committee chairs acknowledged the importance of these modifications
(see Johnsrud/Kedzie release), it is unclear at this time whether those
changes are sufficient to garner legislative approval of the rule.
Key links:
Ruling Invalidates DOT
Revisions of Trans 233
A Dane County Circuit Court has ruled against the Department of
Transportation’s revisions of Trans 233, invalidating many changes made to
the rule since 1999. The suit focused on property abutting state trunk or
connecting highways.
The court held that
amendments to Trans 233 “were not and are not expressly or impliedly
authorized by the enabling statutes cited by DOT.” The court also ruled
that the 2001 amendments “suffer the same invalidating characteristics” and
that provisions relating to setback areas and special exceptions that were
not present in the rule prior to the 1999 revisions “are invalid for
violating the state and federal prohibitions against public takings without
the payment of just compensation therefore.”
Trans 233 has been
controversial since its enactment and major parts of the rule were suspended
by the Legislature’s Joint Committee for Review of Administrative Rules
earlier this year. The court’s ruling may be appealed and/or DOT can
consider a re-write of the rule to attempt to respond to legal, policy and
political concerns.
Listening Sessions to
Solicit Input on Act 255 (SB261)
The Dept. of Commerce has scheduled four listening sessions on provisions of
Act 255, which creates a mechanism to promote capital investment and
technological entrepreneurship in
Wisconsin.
Consisting of three components, Act 255 includes tax credits for angel and
early stage seed investments, a technology commercialization grant and loan
program, and funds to establish entrepreneurial centers. Commerce is
developing administrative rules to implement the act.
Listening sessions are
scheduled at 10:00 a.m. on each of the following dates and locations:
-
July 8, WE Energies
Auditorium, Milwaukee
-
July 15, Chippewa Valley
Technical College, Chippewa Falls
-
July 22, Fox Valley
Technical College, Appleton
-
July 29, MG&E Innovation
Center, Madison
In addition to the
listening sessions, Commerce will post information and accept comments on
the law through its webpage at
http://www.commerce.wi.gov/Act255.
DOT Requests Appropriations
Increases
WisDOT has asked the Joint Finance Committee for 2003-04 appropriation
increases to allocate $122,176,000 in additional federal highway aids.
Governor Doyle's 2003-2005
budget originally estimated federal highway funding at approximately $502
million for 2004 and $527 million in 2005. An additional $120 million in
federal highway aid raised the amount to $569 million in 2004 and $580
million in 2005.
Education Task Force
Gathers Comments
At a public hearing on June 22, the Governor’s Task Force on Educational
Excellence received comments on the panel’s draft recommendations. The Task
Force recommendations that have drawn the most attention would expand the
sales tax base and increase the sales tax by one cent to help fund
education. Other initiatives proposed by the task force would increase state
spending, but it was not indicated how the increases would be funded.
The final report is
expected to go to Governor Doyle by June 30. The Governor could use some,
all or none of the report's ideas as he prepares his next two-year budget.
The Task Force recommendations are available at
http://edexcellence.wisconsin.gov.
Manufacturing Jobs Increase
in State
An increase of 4,700 manufacturing jobs is a highlight of the state’s
Department of Revenue
Quarterly Economic Report (PDF doc) released recently. Manufacturing
accounts for about 18 percent of the jobs in
Wisconsin.
Since the recession began in March 2001,
Wisconsin has lost 55,400 manufacturing jobs, or almost 10 percent.
Wisconsin Receives EPA Brownfields Cleanup, Redevelopments Funds
Communities in 42 states and
Puerto Rico will share more than $75 million in EPA Brownfields grants to help
revitalize former industrial and commercial sites. The grants were
announced by EPA Administrator Mike Leavitt at the site of a former
metal foundry in
Milwaukee. Those affecting Wisconsin include:
-
Ashwaubenon
-
Delavan
-
Delavan Redevelopment
Authority
-
Madison
-
Oshkosh
-
Racine
-
Redevelopment Authority
of the City of
Milwaukee
-
St. Croix Chippewa
Indians
-
Wisconsin Department of
Natural Resources
According to EPA,
public-private collaborative efforts in Milwaukee have already redeveloped
six other Brownfields sites, bringing $13.7 million of new investment into
the city and creating or retaining 149 jobs.
UW Tuition Increases
In an effort to help close the state's $3.2 billion deficit in the 2003-'05
biennium, UW Regents voted to increase tuition at UW Madison and Milwaukee
for $350 per semester and $250 at all other campuses. The UW System's budget
was cut by $250 million over two years and the tuition increases make up
$150 million of that cut.
Wisconsin
Politics
Five
Felony Charges against Burke Thrown Out
Dane County Circuit Judge Bill Foust dismissed five felony charges
against former state Sen. Brian Burke. The charges accused Burke
of soliciting donations in the Capitol for his 2002 campaign for
attorney general. Dane County District Attorney Brian Blanchard
said he will file five misdemeanor charges in their place, and 13
other counts still remain.
Rep. Schooff to Head DOA
Division of Energy
State Rep. Dan Schooff will resign his 45th District Seat in the
Assembly in early July to begin work as the administrator of the Division of
Energy in the Dept. of Administration. Schooff has been in the Assembly
since 1998 and had recently announced that he would not be seeking
re-election in the fall.
Schooff succeeds former
state Rep. Peter Bock, who left the administration to teach at an inner city
school in Milwaukee.
Rep. Taylor to Run for
Senate
State Rep. Lena Taylor (D-Milwaukee) announced she will vacate her 18th
Assembly District seat to run for the 4th Senate District seat being vacated
by Sen. Gwen Moore (D-Milwaukee), who is running for Congress. Rep. Taylor
was elected to the Assembly in April 2003 in a Special Election.
Rep. Taylor, who currently
serves on the Financial Institutions, Economic Development, Criminal
Justice, Tourism and Urban & Local Affairs Committees, plans to move into
the 4th Senate District as she is currently a resident of the 6th Senate
District.
Federal Developments
HHS Award
Additional $14.8 Million to Wisconsin to Improve Public Health Preparedness
HHS
Secretary Tommy G. Thompson today announced $14,811,846 to
Wisconsin to help strengthen the ability of
Wisconsin's
government and public health agencies to respond to Bioterror
attacks, infectious diseases, and natural disasters that may cause
mass casualties.
Combined with
$9,180,227 that was awarded to Wisconsin's hospitals last month by HHS'
Health Resources and Services Administration, HHS is sending nearly $24
million to Wisconsin in 2004 to strengthen its public health infrastructure
and response capabilities.
Since Sept. 11, 2001, HHS
has invested more than $3.7 billion in strengthening the nation's public
health infrastructure, including $68.3 million in Wisconsin.
HHS' Centers for Disease
Control and Prevention (CDC) will distribute the federal funds to assist
health departments improve the readiness of hospitals and other major
health-care providers who would respond to large numbers of injuries and
deaths. Recipients will be able to use the funds in a number of ways to
improve public health and emergency response. These include improving
communication and coordination between hospitals and local and state health
departments, and their laboratories, while bolstering epidemiology and
disease surveillance in state and local areas by increasing the number of
people trained in emergency response.
Philanthropist,
Entrepreneur Bonnie McElveen-Hunter Appointed Red Cross Chair
President George W. Bush, Honorary Chairman of the American Red Cross,
named Bonnie McElveen-Hunter as the new Chair of one of the nation's
oldest and most trusted humanitarian organizations. McElveen-Hunter is
founder and CEO of Pace Communications, Inc., the largest custom publishing
company in the nation serving an array of Fortune 500 companies including
AT&T Wireless, Delta Air Lines, NCR Corporation,
Toyota,
United Airlines and US Airways along with organizations such as the American
Cancer Society, Carlson Hospitality Group and IGA.
The Chair of the American
Red Cross is the principal officer of the corporation and serves as chair of
the organization's corporate governance leaders, the Board of Governors. The
Chair is the top volunteer position in the organization. McElveen-Hunter's
appointment marks the first time a woman has been named to this position.
Political News
Five felony charges against Burke dismissed: Milwaukee Journal
Sentinel, June 24, 2004.
Walking a fine line (opinion): Milwaukee Journal Sentinel, June 24,
2004.
Board OKs new rules on mercury: Appleton Post-Crescent, June 24, 2004.
Deck is stacked to increase costs: Beloit Daily News, June 24, 2004.
Vehicle-deer collisions take big toll in state: Wausau Daily Herald,
June 24, 2004.
State panel reviews emergency DNR rules at Minocqua meeting: Rhineland
Daily News, June 23, 2004.
6% sales tax advocated: Milwaukee Journal Sentinel, June 23, 2004.
Business, legislative leaders counter Doyle, say highway tolls must remain
an option: Milwaukee Journal Sentinel, June 23, 2004.
State seeks input on economy: Wisconsin Rapids Daily Tribune, June 22,
2004.
Approve state limit on mercury emissions (opinion): Wisconsin State
Journal, June 22, 2004.
Jobs v. environment?: Madison Capital Times, June 21, 2004.
Voucher cap could hurt (opinion): Milwaukee Journal Sentinel, June 21,
2004.
Several contested races expected this November: Green Bay Press-Gazette,
June 21, 2004.
Encourage more women to run for political office (opinion): La Crosse
Tribune, June 21, 2004.
AMA backs open sale of morning-after pill: Milwaukee Journal Sentinel,
June 21, 2004.
Funding is issue larger than tolls: Milwaukee Journal Sentinel, June 21,
2004.
Region becomes a primary focus: Marshfield News Herald, June 20, 2004.
Republicans set their sights on winning a veto-proof majority in the Senate
this fall: Milwaukee Journal Sentinel, June 20, 2004.
State spent more than $5.2 billion on K-12 education last year, report says:
Milwaukee Journal Sentinel, June 20, 2004.
Report warns of budget shortfalls: Milwaukee Journal Sentinel, June 18,
2004
Proposed DNR rules would limit mercury from coal-burning plants:
Milwaukee Journal Sentinel, June 18, 2004.
Reedsville uses QEO to settle contract: Manitowoc Herald Times, June 18,
2004.
Doyle lobbies on stem cells: Madison Capital Times, June 18, 2004.
Report outlines budget shortfalls: Janesville Gazette, June 18, 2004.
Bill to ease spikes in summer gas prices fails in House vote: Milwaukee
Journal Sentinel, June 17, 2004.
Brownfield grants aimed at former landfills: Wisconsin State Journal,
June 16, 2004.
Election trend: The incumbent versus nobody: Wisconsin State Journal,
June 14, 2004.
No vote on taxpayers rights bill: Appleton Post-Crescent, June 11, 2004.
Upcoming Fundraisers
June 26
June 27
June 28
-
U.S. Rep. Tom Petri (R),
Manitowoc
-
Republican Assembly
Campaign Committee, Wisconsin Dells
-
Dave Magnum (R) 2nd CD
Candidate, Wisconsin Dells
-
Shirley Krug (D) 4th CD
Candidate, Milwaukee
-
Amy Dixon (D) 48th AD
candidate, Madison
June 29
-
Sen. Alberta Darling
(R-River Hills) and Sen. Mary Panzer (R-West Bend), Saukville.
-
Bob Welch (R)
U.S.
Senate Candidate, Wausau
-
Rep. Leah Vukmir (R-Wauwatosa),
Brookfield
-
32nd SD Democratic
Victory Fund, Madison
-
U.S. Rep. Tammy Baldwin
(D), Madison
-
Dave Magnum (R) 2nd CD
Candidate, Fort
Atkinson
June 30
-
U.S.
Senate Candidate Bob Welch (R), Green Lake
-
Reince Priebus (R) 22nd
SD Candidate, Madison
-
Rep. Jeff Stone (R)
Greenfield, Madison
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