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July 11, 2003
While Governor
Doyle has not taken final action on the 2003-05 budget adopted by
the Legislature, he has announced several high profile vetoes (see
below) that will be included when he signs the bill, probably next
week. The Governor has not, however, announced his intentions
regarding the property tax freeze included in the bill adopted by
the Republican controlled Legislature. Significant public pressure
to veto or not to veto the tax freeze has been applied with almost
equal force by local governments on one side and taxpayer groups
on the other. While various interest groups are anxiously awaiting
the Governor’s decisions in specific areas, the property tax
freeze, and its consequences, has and will draw the broadest
attention from the general public.
An
interesting report on Why Wisconsin Has High Taxes was released
within the last week. A brief discussion of this report, developed by the
Wisconsin Policy Research Institute, is included below with links to the
Executive Summary and the complete report.
A
special issue of Tidbits will be distributed with a summary of the
Governor’s line item vetoes and an update on the budget in its final form
immediately following the Governor’s final actions on the biennial budget.
Wisconsin Politics
Governor
Announces Veto Intentions through Press Releases
At a July 7 news conference in
Wauwatosa,
Gov. Doyle
announced his intent to veto Legislative budget
provisions reducing funding for 4-year-old kindergarten and the
Student Achievement Guarantee in Education (SAGE) program. The
following day, July 8, the Governor
announced he would veto the Republican-drafted shared
revenue reformulation, and reinstate the original formula. (On
Wednesday, the Governor
released a fact sheet comparing the Legislative shared
revenue plan he intends to veto with current shared revenue law,
retained after his veto.) Finally on July 9, Gov. Doyle
announced he would use his veto power to erase the
Legislature budget provision deleting the Farmland Preservation
Program. Doyle’s veto will reinstate the Program, which provides
tax relief to
Wisconsin farmers.
Election Board Votes Yes to
George Recall Election
The state Elections Board, on July 9, voted to allow the recall election of
state Sen. Gary George (D-Milwaukee) to proceed. The Board based its
decision on the more than 8,000 signatures that had been gathered in support
of a petition to recall of the state Senator. The petition was initially
circulated April 30, by the Committee to Recall Gary George, led by George’s
long-time former friend, Milwaukee publisher Jerrel Jones. Jones allegedly
began the petition drive after a conflict with the State Senator over his
vote to approve legislative oversight of Governor Doyle’s tribal gaming
compact negotiations. (Jones sits on the board of the Potawatomi’s
charitable foundation, and the Potawatomi opposed legislative oversight.)
Recently, George again drew
public attention by voting with Republicans to approve the Legislative
budget after negotiating with Republican Legislative leaders for specific
budget provisions to fund programs in George’s community
To view the Petition to
Recall Gary George, go the State Election Board’s
website.
Policy Developments
Wisconsin’s Tax
Burden Fourth Highest, Says New Study
A new study, released July 3 by the Wisconsin Policy Research
Institute, asks if Wisconsin’s tax burden is too high. Authored by
Todd Berry and Dale Knapp of the Wisconsin Taxpayers Alliance,
the report was the first to compare
Wisconsin’s
tax burden to that of other states. Using year 2000 data, the
study confirmed Wisconsin is indeed a high tax state, revealing
that Wisconsin collected the fourth highest amount of taxes ($2.4
billion, or 12.9 percent of the states personal income) in the
nation that year.
Inquiring into
Wisconsin’s tax system, the study looks at
Wisconsin’s history of
expenditures for infrastructure in areas such as public education and roads.
Additionally, the study looks at how the state shared revenue program
operates to fund localities, inquiring if state and federal aid to smaller
communities is too high, creating incentives for smaller communities to
continue developing new programs without having to raise local taxes to fund
them.
The report was released
last week, as final action on the state budget is being considered. (See
Todd Berry and Dale Knapp’s
executive summary on the report. Also see a
related news article, detailing
Wisconsin’s
tax comparison with other states.)
Proposal for Live Private
Broadcast at Capitol Moved Forward By Assembly
On July 8, the Assembly Committee on Electronic Democracy and Government
Reform met to discuss a proposed venture by WisconsinEye, a private telecast
company with major partners Charter Communications and Time Warner. The
company would like to acquire the exclusive rights for development of
private, cable-based television coverage of legislative, and executive
Capitol activity. (Essentially, a Wisconsin C-Span type programming.) After
lengthy discussion, the committee voted to have the Legislative Technology
Service Bureau develop a notice, effectively amounting to a Request for
Proposal (RFP), soliciting public comment on WisconsinEye’s proposal and
requesting bids from any other entity which may wish to compete with
WisconsinEye for television rights.
So far, the Senate and the
Supreme Court have been publicly silent on the issue – although neither one
yet allows camera coverage of its actions. (The Assembly has allowed live
internet coverage of its floor sessions since 2001.)
Following RFP results, the
Department of Administration (DOA) would make a recommendation to the
Governor, who has the authority to approve or deny the proposal. Such action
is not anticipated soon since the DOA expressed remaining concerns over the
concept of giving a private company exclusive televideo access to the public
events of the state Capitol.
To learn more about
WisconsinEye, go to their
website.
Ozone Recommendations Due
Next Week
Economic developers, local officials, and industry are focusing attention on
the DNR and Governor as the state considers nonattainment recommendations it
will submit to EPA next week regarding compliance with the new 8-Hour ozone
standard. Areas designated “nonattainment” would be subjected to
environmental regulatory efforts to pull the area into compliance (or
“attainment”). Such regulations would be tough on industry, and could
significantly impair economic development.
In 2002, the Supreme Court
upheld the EPA’s new ozone standard. The first step in implementing the
standard is designating which areas are or are not currently in compliance
with the new standard. The Governor’s recommendations, due to EPA by July
15, regarding area compliance or noncompliance are deemed to be influential
on EPA’s final designations, expected in April, 2004.
Wisconsin Supreme Court Overrules Edgerton Decision
In an opinion written by former Assembly Speaker David Prosser, the
Wisconsin Supreme Court overruled its landmark Edgerton decision.
In 1994, The Wisconsin Supreme Court ruled in City of
Edgerton v. General Casualty Co. of Wisconsin
(184 Wis. 2d 750, 517 N.W.2d 463 (1994)), that insurers had limited
liability, under the standard Comprehensive General Liability (CGL) policy,
in relation to the federal Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), otherwise known as “Superfund.” In
that case, a divided court interpreted that CGL policy did not give a right
of indemnification to an insured against their insurer for environmental
clean-up costs associated with a CERCLA order. (For this holding, the Court
relied upon its interpretation that “clean-up costs” under CERCLA did not
constitute “damages” under CGL, but rather, the costs were equitable
relief.) Edgerton held further that issuance of a Potentially
Responsible Party (PRP) letter or order from the State or an equivalent
state agency (e.g. DNR) did not constitute a “suit” sufficient for an
insurer to initiate a defense on behalf of the insured.
Today’s Supreme Court
ruling,
Johnson Controls, Inc. v. Employers Ins. Of Wausau.,
overrules Edgerton, and remands the case back to circuit court. The
Court vacated its earlier interpretation on both the damage and the PRP
order issues, and sent the case back with orders that CERCLA clean-up costs
can be considered “damages” within the meaning of CGL policy, and a CERCLA
clean-up order, issued by the state, does constitute an state action
sufficient to require an insurer to initiate a defense on behalf of the
insured.
Federal Developments
U.S Reps. Green
and Kleczka Introduce Great Lakes Restoration Legislation
On July 2, U.S. Rep. Mark Green (R-Green
Bay),
in conjunction with U.S. Rep. Jerry Kleczka (D-Milwaukee),
announced introduction of a bill that would create a “Great
Lakes Restoration Fund” for providing federal grants to Great
Lakes States for development and implementation of restoration
programs. The Fund would be administered by block-grants to states
with the use of matching Federal and State contributions. Fund
administration would receive guidance from an advisory board
including the Governors of the eight Great Lake States, as well as
federal, scientific, and business representatives.
Using EPA’s
Great Lakes Strategy 2002 as a guide, the Fund would support several
initiatives, including programs designed to:
-
Ensure the economic and ecologic sustainability of the Lakes;
-
Clean up toxic hot spots;
-
Combat invasive species;
-
Control pollution from urban and agricultural runoff;
-
Restore and conserve wetlands and critical coastal habitat; and
-
Increase public education of
Great Lakes issues.
Political News
Tax code needs loophole reform (opinion): Wisconsin State Journal,
July 9, 2003. Legislature should have passed change requiring all
companies with common ownership submit a combined return.
Healthy lakes called key to economy: Madison Capital Times, July 9,
2003. Should the appeal of the coastline drop and tourism revenue fall,
employment could fall.
Better shared revenue plan (opinion): Milwaukee Journal Sentinel,
July 9, 2003. His fair-minded revision of shared revenue ought to be
regarded as a good omen.
George must face recall vote, panel says: Milwaukee Journal Sentinel,
July 9, 2003.Elections Board finds enough valid signatures to back ouster
attempt.
Drunk driving limit sparks debate: Janesville Gazette, July 9, 2003.
Assembly and Senate both approved lowering the limit.
Tax code needs loophole reform (opinion): Wisconsin State Journal, July
9, 2003. Legislature should have passed change requiring all companies with
common ownership submit a combined return.
Healthy lakes called key to economy: Madison Capital Times, July 9,
2003. Should the appeal of the coastline drop and tourism revenue fall,
employment could fall.
We’re spending too much on roads in Wisconsin (opinion): Appleton
Post-Crescent, July 8, 2003. If it’s a choice between road construction or
human services, we vote for the humans.
State Patrol survey tracks role of cell phones in accidents: Janesville
Gazette, July 9, 2003. Making no recommendations for possible regulations on
cell phones as a result of the study.
Doyle plans to veto $100 million in budget: Milwaukee Journal Sentinel,
July 6, 2003. Among trims will be items added to secure George's vote.
Sales tax revenue falling short of goal: Milwaukee Journal Sentinel,
July 6, 2003. State's budget projections may have been too optimistic.
DNR list will omit 10 state counties: Appleton Post-Crescent, July 6,
2003. Despite failure to avoid pollution, some given break.
Reforms may not affect '04 elections: Milwaukee Journal Sentinel, July
5, 2003. Campaign finance rules in limbo as high court weighs issue.
10 counties may avoid pollution crackdown: Milwaukee Journal Sentinel,
July 5, 2003. EPA designation would subject them to tougher air emissions
standards.
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