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Aug. 15, 2003
The big news
around the Capitol the past two weeks has been related to the
speculation surrounding a legislative vote aimed at overriding the
Governor’s veto of a legislatively enacted “property tax freeze.”
The pressure from both sides on Democrat legislators was intense
and was heightened by a Republican winning a special election on
July 22nd in an Assembly district that had elected Democrats for
85 years. The tax freeze was a prominent issue in the election. As
reported below, the veto override failed in the Senate by one
vote. Shortly after that vote, the Assembly passed a separate bill
providing once again for a levy freeze, but this time addressing
issues related to the impact on Tax Incremental Financing (TIF)
and exempting debt service under certain circumstances, including
a resolution adopted before July 1 , 2003 or a referendum adopted
after that date. These changes to some degree address issues
raised by numerous groups concerned about the impact of the freeze
on economic development and growth. The Senate is expected to act
on the bill in September.
As previously and
frequently reported, the fall session of the Legislature will address
several major issues aimed at making Wisconsin a more friendly place for business expansion and location. Regulatory
reform, capital investment, civil justice environment, TIF and other
proposals aimed at providing incentives for job creation and economic
development stimuli will help to occupy a very busy agenda for Wisconsin’s
lawmakers. Both the Republican controlled Legislature and the Democrat
Administration are highlighting the same or similar issues. While there may
be competing proposals, the goals appear to be consistent. It promises to be
a busy, exciting and perhaps historic time in
Wisconsin.
Tidbits will keep you
posted while you continue to enjoy what’s left of your summer!
Wisconsin
Politics
Senate Property
Tax Freeze Override Attempt Fails, Narrowly
On Tuesday, August 12, the Senate voted on whether or not to
override Governor Doyle’s veto of the Republican drafted
three-year property tax freeze provision in the state budget. By a
vote of 21-12, the override effort failed by one vote. (22 votes
were needed for the two-thirds majority vote needed to override
the veto.) Senate Republicans all voted to override the veto along
with three Democrats: Sens. Tim Carpenter (D-Milwaukee), Gary
George (D-Milwaukee) and Dave Hansen (D-Green Bay).
Property Taxes: Alternative
Democrat Proposal for Relief
Republicans were counting on Sen. Plale (D-S. Milwaukee) to join them in
voting against the property tax veto, as the fourth Democrat needed from the
Senate side in the effort to force the plan to become law over the
Governor’s objection. This hope was quashed, however, August 11, when Sen.
Plale
announced he would vote to sustain the veto, and would introduce
a Democrat property tax relief plan. The plan,
which is reportedly backed by Gov. Doyle, would reduce property tax
increases to under two percent over the next two years by increasing relief
to taxpayers through the property tax rent credit and the homestead credit.
(Under the budget provision, property taxes were estimated to increase by
one percent.) The property tax rent credit and the homestead credit do not
directly affect the property tax since they are credits against the income
tax and only apply to targeted populations. The Democrat proposal was
estimated to cost the state approximately $400 million.
Assembly Passed a Revised
Freeze Plan
In another move to keep the “property tax freeze” alive, Assembly GOP
members began an effort to pass alternative, separate legislation. When it
became evident from the debate last Tuesday that the vote to override the
Governor’s veto would fail, Assembly Republicans introduced and passed
AB 466, sponsored by newly elected
Rep. Mark Honadel (R-Milwaukee). By a vote of 62-31, the Assembly passed the
alternative property tax relief plan merely five hours after the Senate’s
override vote failed. The Assembly plan resembles the budget “freeze” by
limiting property tax increases over three years. The bill does, however,
exempt changes (value increment) in a Tax Increment District (TID) and
provides that the calculation of the levy does not include tax increment
generated by a TID. Assembly Bill 466 also exempts debt service on bonds for
resolutions adopted prior to July 1, 2003 or authorized by a referendum
adopted after July 1, 2003.
George Recall Delayed Again
On Monday, August 11, State Senator Gary George (D-Milwaukee) invoked a
legislative privilege resulting in a further delay of the lawsuit he filed
against the State Ethics Board last month. A hearing scheduled for August 11
was delayed until Monday, August 18, after Dane County Circuit Judge Maryann
Sumi granted George’s request to invoke the privilege in order to attend the
Senate’s special session this week to vote on Governor Doyle’s property tax
budget veto.
George’s lawsuit
challenges the Election Board’s decision finding recall proponents had
collected enough signatures to grant a recall election. The recall has
already been stayed once, pending the outcome of the lawsuit which is
expected shortly following next week’s hearing.
Policy Developments
DNR Mercury Rule Undergoes Legislative Scrutiny
On August 13 the Senate Committee on Environment and Natural Resources and
Assembly Committee on Natural Resources held a
joint hearing on DNR’s
controversial mercury emission rule. The all-day hearing included testimony
from numerous utility, business and environmental organizations.
The
final DNR proposal, developed over the past several years, targets mercury
emissions from “major utilities.” Four Wisconsin utilities trip the 100
lbs/year mercury emission threshold – Dairyland Power, WE Energies,
Wisconsin Public Service Corp., and Alliant Energy. Under the rule, these
utilities would have to meet reduction mandates of 40 percent by 2010 and 80
percent by 2015. The final rule and related documents can be found on the
DNR web site.
Industry comments focused on two requested changes. They asked the
committees to request DNR modify the rule to provide an exemption for
sources subject to federal mercury emission limitations. In addition, they
requested that the second, 80 percent reduction mandate be dropped and
replaced with an evaluation after the first phase on whether further
reductions are warranted. (See
Wisconsin Utility Association
and
Wisconsin Manufacturers & Commerce
positions.)
First Hearing for Senate Job Creation Committee
On Tuesday, August 5, the Senate Select Committee on Job Creation held its
first public hearing. The Committee is currently comprised of three
Republican members: Co-chairs Sens. Ted Kanavas (Brookfield) and Cathy Stepp
(Yorkville), and member Sen. Joe Leibham (Sheboygan), and two Democrat
members: Sen. Robert Jauch (Poplar) and Sen. Charles Chvala (Madison).
Following the hearing, the Committee issued a joint
announcement regarding
the hearing’s three hours of testimony that repeatedly expressed the need to
streamline Wisconsin’s regulatory climate as it relates to the creation of
jobs in Wisconsin.
The
Committee’s approach to economic development is three-pronged, focusing on:
1) regulatory reform; 2) capital/investment; and 3) infrastructure. In a
recent
interview with the
Wisconsin Technology Network, Sen. Kanavas spoke about how his background in
the software industry has helped him develop ideas on how to grow the
state’s economy.
Governor Signs “Pay to
Play” Bill
On August 11, Governor Doyle signed
AB 1, the campaign finance bill known as “pay to play.” (See the
Governor’s
release for more information on all bills signed on August 11.)
AB 1, authored
by Rep. Gundrum (R-New Berlin), strengthens the prohibition of so-called
“pay to play” conduct in state government. The bill makes illegal a direct
exchange of official legislative actions for campaign contributions. (See
Rep. Gundrum’s
release on the bill signing.)
Governor Vetoes
Controversial Voter ID Bill
On Tuesday, August 5, Governor Doyle vetoed
AB 111, relating to voter identification. The bill attempted to make the
production of a valid, state-issued identification document a requirement
for voting in Wisconsin state and local elections.
Proponents of the bill
argued that identification is required for almost all customary business
transactions, and therefore the integrity of the important function of
voting should require no less. Opponents argued, however, that the
requirement would increase the administrative burden of the Department of
Transportation (the state agency that issues driver’s licenses and personal
identification cards), poll workers and municipal clerks. Additionally,
argued opponents, the requirement would be particularly cumbersome for
elderly, disabled, and minority citizens. On August 4, Governor Doyle
announced he was vetoing the bill because it was too restrictive and it
would impose an additional tax burden on
Wisconsin residents.
See related news stories:
Doyle says no to photo ID (opinion), and
Photo ID reasonable requirement for voting (opinion), and
Some type of voter ID necessary (opinion).
Legislators Want Focus on
Road Safety
On August 13, two state legislators, Reps. Jerry Petrowski (R-Marathon) and
Garey Blies (R-Sister Bay)
released a request for creation of a Safer Roads Task Force. The
lawmakers focused on the Wisconsin Department of Transportation’s (DOT)
August 8, 2003
announcement stating
Wisconsin has already seen more than 500 deaths on the road this year,
and projecting the state would suffer 900 more fatalities before the year
end. The representatives’ vision for a task force would include bringing
together road safety experts with policy makers to strengthen the state’s
means for reducing crashes and road deaths.
Federal Developments
Draft Text
Published for Implementing 8-Hour Ozone
On July 31, 2003, the EPA published
draft text for its proposed regulatory text for implementing
the new 8-hour ozone National Ambient Air Quality Standard (NAAQS)
under authority of the Clean Air Act. The draft proposed
regulatory text accompanies the June 2, 2003
Proposed Rule to Implement the 8-Hour NAAQS. Key issues
addressed include:
Comments on the June 2,
2003 Proposed Rule were due Aug. 1, 2003.
(See
Wisconsin Manufacturers and Commerce comments.)
Comments on the draft regulatory text are due to EPA by Sept. 5, 2003.
Federal Banking Authorities
Issue Proposed Rule
On August 12, the Office of the Comptroller of the Currency, the Office of
Thrift Supervision, the Federal Reserve, and the Federal Deposit Insurance
Corporation
announced joint issuance of a proposed rule to require banks to promptly
notify customers when their sensitive financial information is stolen. In a
statement issued following the August 12 FR publishing, Wisconsin
Congressmen Gerald Kleczka (D) and Paul Ryan (D)
announced they were pleased with the proposed rule that closely mimicked
a concept contained in
HR 818, a bill the two Representatives introduced less than a
year ago that also relates to bank ID theft notification. HR 818 is
currently pending in the House Financial Services Subcommittee on Financial
Institutions and Consumer Credit. If passed, it would impose additional
requirements on banks, including taking additional steps to help affected
consumers remedy any damage to their credit history and reimbursement for
any losses incurred.
Group of Nearly 8000
Doctors Call for National Health Insurance
On Wednesday, August 13, a group of 7,782 U.S. physicians published a plan
for a government sponsored national health insurance program in the Journal
of the American Medical Association. The group argues that HMOs and private
sector insurance plans have raised the costs of medical care too high, and
they need to be brought back down and standardized. The American Medical
Association (AMA), however, is not on board with the plan. In its official
statement following the Journal report, the AMA cautioned that moving to
a single-payer health system would only accomplish trading current problems
(high costs) for new ones (longer waits for services).
Political News
State fueled controversial fund: Appleton Post-Crescent, Aug. 15,
2003.
Upgrades
aside, state could be vulnerable: Milwaukee Journal Sentinel, Aug.
15, 2003.
Wisconsin better beef up power grid, industry says: Wisconsin State
Journal, Aug. 15, 2003.
Nation's energy needs demand bolder action (opinion): Wisconsin
State Journal, Aug. 15, 2003.
East Coast outages raise local concerns: Appleton Post-Crescent,
Aug. 15, 2003.
Wisconsin power grid holds up, utilities say: Green Bay
Press-Gazette, Aug. 15, 2003.
Green pushes for ban on Internet cigarette sales: Appleton
Post-Crescent, Aug. 14, 2003.
Bill would change way prison deaths are investigated: Wisconsin
State Journal, Aug. 14, 2003.
Tax freeze a political hot potato: Appleton Post-Crescent, Aug. 14,
2003.
Tax-freeze haggling disrupts budgets: Green Bay Press-Gazette, Aug. 14,
2003.
Veto override vote fails by a whisker: Wisconsin State Journal, Aug.
13, 2003. s.
Democrats
feel the heat: Milwaukee Journal Sentinel, Aug. 13, 2003.
Assembly passes tax bill: Manitowoc Herald Times, Aug. 13, 2003.
Senate fails to override Doyle’s veto.
Bank rules
would reveal ID theft: Milwaukee Journal Sentinel, Aug. 13, 2003.
Privacy law
hinders clergy's access to patients: Milwaukee Journal Sentinel,
Aug. 12, 2003.
Doyle signs bill to protect state’s utilities: Green Bay
Press-Gazette, Aug. 12, 2003.
Venture
capital pool getting bigger: Milwaukee Journal Sentinel, Aug. 11,
2003.
Refinancing
boom threatens to bust: Milwaukee Journal Sentinel, Aug. 10, 2003.
Life won't change for W-2 participants: Wisconsin Rapids Daily
Tribune, Aug. 10, 2003.
State starts to recognize need to help (opinion): Appleton
Post-Crescent, Aug. 10, 2003.
A call for
common sense: Milwaukee Journal Sentinel, Aug. 10, 2003.
How the state budget affects lives and institutions: Wisconsin State
Journal, Aug. 10, 2003.
Auto
suppliers urged to focus on research: Milwaukee Journal Sentinel,
Aug. 11, 2003.
Rise in sales, productivity spurs optimism: Wausau Daily Herald,
Aug. 8, 2003.
Upcoming Fundraisers
Sunday, August 17, 2003:
- North Suburban
Republican Club, Brown Deer, 1:00 p.m.
Monday, August 18, 2003:
- St. Rep. Bonnie
Ladwig (R-Racine), Racine, 5:00 p.m.
- St. Sen. Scott
Fitzgerald (R-Juneau)
& St. Rep. Jeff Fitzgerald (R-Beaver Dam), Beaver Dam, 5:30
p.m.
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