Previous issues of Political Tidbits can be found at Tidbits Archive.
Click here to begin your free subscription.

Aug. 11, 2006

To coincide with this issue of Tidbits, the Hamilton Consulting Group has done an analysis of this year’s State Senate races and candidates. While Republicans and Democrats are both exuding public confidence that their respective parties will be in the majority following the November election, there are only two primary contests, both involving Democrats, that will set the final stage for the general election. (Republicans currently hold a 19-14 majority in the upper House.)

In what has historically been viewed as a “safe” Democratic seat, (the 7^th Senate District, South Milwaukee) incumbent Senator Jeff Plale faces a primary challenge from Donovan Riley, a newcomer to elected politics. The other primary involves Democrats Christopher Danou and Kathleen Vinehout who are vying for the opportunity to face off against incumbent Senator Ron Brown in the 31^st Senate District in the Eau Claire area in western Wisconsin.

We encourage you to view our analysis, which breaks down the races from the one “open seat” to Republican and Democrat “protect” districts, and those generally considered to be “safe” seats for the respective parties. We will present a similar analysis for the State Assembly in an upcoming issue.

In February 2004, the chairs of the Joint Legislative Audit Committee, Senator Carol Roessler and Representative Suzanne Jeskewitz, requested the Legislative Audit Bureau (LAB) to conduct an audit of Wisconsin’s economic development programs. The results of the audit have been anticipated by state and local governments as well as the economic development and business communities. The wait ended earlier this week when the LAB released its report and findings.

 The report, which is 227 pages including appendices, is expected to serve as the catalyst for change aimed at eliminating confusion and duplication and increasing accountability, and the ability to assess the success or failure of programs designed to help businesses, and strengthen our economy. This presents a great opportunity for the public and private sectors to work together on meaningful reforms while reinforcing those that currently work well.

Policy Developments

State Audit Finds Need for Changes
A report by the Legislative Audit Bureau [Report Highlights] [Full Report; PDF doc, 227 pgs.] found that the state of Wisconsin spent approximately $152.8 million on economic development programs from mid-2003 to mid-2005, but was unable to accurately determine what effect economic development programs had on the economy because of inadequate tracking.

The report stated that “agency responsibility for administering economic development programs is fragmented, efforts to measure and report results are limited, and no single entity is responsible for ensuring that the programs are working toward common policy goals.”

The Wisconsin Economic Development Association (WEDA), a statewide association of economic development professionals and others dedicated to economic development, issued a press release welcoming the opportunity to work with the Administration and the Legislature to implement meaningful reforms and reinforce what is already working well.

The Joint Legislative Audit Committee will hold a hearing on the audit report on Tuesday, August 29th, in Madison.

Study Finds HIRSP in Sound Financial Position
A Legislative Audit Bureau report [Report Highlights] [Full Report, PDF doc] on the state's Health Insurance Risk-Sharing Plan (HIRSP) says the program "has maintained a sound financial position since FY 2002-03."

HIRSP provides medical and prescription drug insurance for almost 19,000 policyholders who are unable to obtain coverage in the private market or who have lost employer-sponsored group health insurance.

According to the report, enrollment has begun to moderate following years of double-digit increases. However, net claims costs increased 25.5 percent during FY 2004-05, to a total $130.4 million. That size of increase was unexpected and contributed to a $7.1 million decrease in HIRSP’s accounting balance, which showed a small deficit of $300,000 as of June 30, 2005. The deficit appears to have been addressed in FY 2005-06.

2005 Wisconsin Act 74 made significant changes to HIRSP. Among the most significant is the creation of the HIRSP Authority, which assumed oversight responsibility from DHFS on July 1, 2006. Other significant changes include simplifying HIRSP’s complex funding formula, providing increased flexibility for plan design, and establishing income tax credits for insurers that pay assessments for HIRSP.

Under Act 74, the Audit Bureau will continue to conduct annual financial audits of HIRSP.

WISTAX: State-Local Governments Spend 21.9 Percent of Income
State-local government expenditures claimed 21.9 percent of Wisconsin’s personal income in fiscal 2004. This was up from 20.2 percent in 1999, according to a recent report by the Wisconsin Taxpayers Alliance (WISTAX). WISTAX, a nonprofit, nonpartisan policy-research group based the calculations on new figures from the U.S. Census Bureau.

Compared to other states, Wisconsin state-local spending ranked 21st, the same as in 1999, but was down from 15th in 1994. When state and local government expenditures are viewed separately, state spending was 9.2 percent of income (29th highest), while local government claimed 12.6 percent of income (6th highest).

On a per capita basis, state-local expenditures were $6,670 or 16th highest. By comparison, Wisconsin’s tax burden ranked sixth relative to income and 12th per capita.

Governor Pushes Plan to Double Number of E-85 Pumps
In the wake of his order to suspend enforcement of the minimum markup law on ethanol, Gov. Jim Doyle is again asking the Legislature to provide incentives to station owners to sell ethanol-blended fuel. The Legislature this year debated but failed to pass a measure that would have repealed the minimum markup law for all fuels - a bill the governor said he would have signed into law.

Representatives of independent gas and convenience store retailers, who oppose the action, say that the law protects family-owned businesses against giant retailers who could begin selling fuel at prices that would wipe out independent retailers across Wisconsin.

Cities Receive Grants to Improve Access to Crime-Fighting and Homeland Security Information
Gov. Jim Doyle recently announced that two Wisconsin law enforcement agencies have been awarded grants to improve criminal justice and homeland security information sharing. While the grants will be awarded to the individual agencies, several neighboring jurisdictions will also benefit from the grants.

The Wauwatosa Police Department was awarded $64,994 and the Sun Prairie Police Department was awarded $72,458 through the Wisconsin Integrated Justice Information System (WIJIS), which is managed by the Wisconsin Office of Justice Assistance (OJA).

Wisconsin Joins Petition Requiring Disclosure of Pesticide Ingredients
A coalition of 14 states and the U.S. Virgin Islands have petitioned the Environmental Protection Agency (EPA) to require pesticide manufacturers to disclose on the label of their products all hazardous ingredients.

EPA now requires that pesticide labels disclose only the product’s "active" ingredients; that is, those toxic materials that are intended to kill insects, weeds or other target organisms. Pesticide products also contain many other "inert" ingredients.

Current EPA regulations allow the identity of almost all "inert" ingredients to be omitted from the label based only on their function in the product, not on their health or environmental effects. States are pre-empted by federal law from requiring additional labeling for pesticides.

Weeklong Mercury Conference Hosted in Madison
The 8^th International Conference on Mercury as a Global Pollutant was held this past week at the Monona Terrace and Convention Center in Madison. The conference was attended by scientists, academics, and policy-makers from more than 44 countries, as well as representatives of industries and nongovernmental organizations involved in mercury issues.

Bob Fassbender, of The Hamilton Consulting Group, attended the conference and may be contacted for further information.

Wisconsin Politics

President Bush in Green Bay for Gard Fundraiser
President Bush was in Green Bay on Thursday, making stops at Fox Valley Metal-Tech Inc. in Ashwaubenon to give a speech about the economy, and then to a private home in Hobart for a Gard fundraiser.

While in Green Bay, President Bush addressed the nation on the foiled terror plot which took place that same day in the United Kingdom.

Rep. Gard, R-Peshtigo, is running for the Republican nomination in the Sept. 12 primary for the 8th Congressional District seat being vacated by Mark Green, R-Hobart, who is running for governor.

Political News

Bush touts tax reduction in Wisconsin stop: Appleton Post-Crescent, Aug. 11, 2006.

GOP candidates come out swinging: Milwaukee Journal Sentinel, Aug. 11, 2006.

State health plan rebounds in 2006: Milwaukee Journal Sentinel, Aug. 11, 2006.

Sparta to lose about 70 jobs when manufacturing plant closes: La Crosse Tribune, Aug. 11, 2006.

Manufacturing up in Rock, Green, Lafayette: Wisconsin State Journal, Aug. 11, 2006.

Politics and reality on gas (opinion): Milwaukee Journal Sentinel, Aug. 11, 2006.

Ethanol gives farmers a boost: Milwaukee Journal Sentinel, Aug. 10, 2006.

Doyle's ethanol order means nothing, gas industry says: Janesville Gazette, Aug. 10, 2006.

UW report urges better job training: Madison Capital Times, Aug. 10, 2006.

Democrats clash over donations: Milwaukee Journal Sentinel, Aug. 10, 2006.

District 8 hopefuls set alternative events: Green Bay Press-Gazette, Aug. 9, 2006.

Attorney general candidate to launch ads: Milwaukee Journal Sentinel, Aug. 9, 2006.

GOP candidate vows to be true to 7th District: Wausau Daily Herald, Aug. 9, 2006.

Economic grants don't always do job: Milwaukee Journal Sentinel, Aug. 9, 2006.

Suppliers must think globally, leaders say: Milwaukee Journal Sentinel, Aug. 9, 2006.

The end of pensions (opinion): Milwaukee Journal Sentinel, Aug. 9, 2006.

How much will you pay today? Milwaukee Journal Sentinel, Aug. 9, 2006.

Ethanol not subject to mark-up laws: Green Bay Press-Gazette, Aug. 9, 2006.

Feingold touts alternative energy sources: Eau Claire Leader-Telegram, Aug. 9, 2006.

Minimum markup law continues to backfire (opinion): Appleton Post-Crescent, Aug. 8, 2006.

A day at the pumps: 6-cent difference in prices: Lakeland Times, Aug. 8, 2006.

Disruption in Alaska to hit home: Milwaukee Journal Sentinel, Aug. 8, 2006.

The oil monkey on our backs (opinion): Milwaukee Journal Sentinel, Aug. 8, 2006.

Federal hybrid tax credit no deal for some taxpayers: Wisconsin State Journal, Aug. 8, 2006.

Audit released looking at state's economic development programs: Janesville Gazette, Aug. 8, 2006.

Focus is on mercury emitter: Milwaukee Journal Sentinel, Aug. 8, 2006.

Green proposes back-to-school 'tax holiday': Milwaukee Journal Sentinel, Aug. 8, 2006.

Doyle challenger: Spending out of control: Wausau Daily Herald, Aug. 8, 2006.

Thompson: For a healthy diet, more fish (opinion): Wisconsin State Journal, Aug. 7, 2006.