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Aug. 26, 2005

As we approach the end of August, we anticipate heightened efforts among legislators to gear up for the upcoming floor sessions that begin on September 20th. Following is the schedule of the weeks in which the Legislature will be “on the floor” voting on individual pieces of legislation in the post-budget activity:

·       September 20 for two weeks

·       October 25 for three weeks

·       December 6 for two weeks (or less)

·       January, 2006 for three weeks

·       February 21 for three weeks 

Civil justice reform, eminent domain and the Governor’s veto authority will be among the high profile issues expected to be addressed.

In the meantime, enjoy what is left of summer and bring out the football ware.

Policy Developments

Capital Formation Hearing and SB 290
Senate Bill 290 was approved by the Senate Committee on Job Creation, Economic Development and Consumer Affairs 5-0 on Thursday, Aug. 25. The committee heard testimony from the Dept of Commerce and invited speakers relating to 2003 Wisconsin Act 255 as well as other related economic development initiatives. 

SB 290, the so-called “Cleanup” bill for Act 255, will be scheduled for a vote in the Senate in late September or October. Testimony presented at the hearing regarding changes to legislation for improving Wisconsin’s investment climate will be considered for inclusion in the drafting of a separate bill. Some of these considerations may include:

• Increasing the available investment tax credits for Angel Investors

• Increasing the annual allocation of investment tax credits

• Permitting unused Venture Capital Investment Tax Credits to be reallocated to Angel Investment Tax Credits in the succeeding year

• Increasing capital gains exemption for farmers, small business owners, and investors who invest long term capital in a Wisconsin business or investment.

• Repeal of shareholder liability

Governor Doyle Signs Legislation
On Aug. 15, Gov. Doyle signed the following bills into law:

• Act 30 (AB 5): Expands the number of geographic areas of the state in which cooperatives may be organized to provide health care benefits.

• Act 34 (AB 24): Changes several statutory requirements for local zoning boards to ensure boards have a full quorum when making important decisions, and can act with a simple majority.

• Act 35 (AB 179): Bans internet hunting by prohibiting a person from shooting a captive animal unless he/she is in possession of the weapon and makes it illegal to provide an opportunity to hunt over the internet.

• Act 36 (AB 259): Requires all limited liability corporations providing medical services by physicians or nurse anesthetists to participate in the Injured Patients and Families Compensation fund.

• Act 28 (AB 277): Provides that if a permit holder challenges an emission limitation in an air pollution operation permit, the emission limitation does not apply pending resolution of the challenge.

• Act 33 (SB 2): Ensures that state law complies with federal standards with respect to hazardous materials training for our regional emergency response teams.

Industrial Development Definition Bill Advances
Senate Committee on Veterans, Homeland Security, Military Affairs, Small Business and Government Reform recommended passage of Assembly Bill 116, which will give counties more options in attracting economic development by expanding the permissible uses of county economic development loan accounts. 

The bill changes the definition of "industrial development project" to include commercial, retail, or service enterprises for the purposes of providing businesses with low interest loans from county industrial development loan accounts. Current law only allows for these revolving fund loans to be used to help finance industrial development projects.

Senate Committee Approves Balanced Budget Bill
The Senate Committee on Veterans, Homeland Security, and Military Affairs, Small Business and Government Reform approved a bill to require a balanced budget.

While the legislature is currently required to pass a balanced budget, the governor is not required to submit a balanced budget to the legislature. The measure, Assembly Bill 177, approved on a bipartisan vote by the Senate committee, requires the Governor to submit a balanced budget proposal to the Assembly and Senate.

Poll Shows Support for Malpractice Cap
A statewide poll released by the Wisconsin Hospital Association and Wisconsin Medical Society shows support for a new law to reinstate a limit on medical malpractice noneconomic damage awards (pain and suffering). When asked whether Wisconsin should cap non-economic damages to prevent both higher health costs associated with frivolous lawsuits and unnecessary medical testing, 66 percent agreed and only 28 percent disagreed.

The State Assembly Medical Malpractice Task Force, appointed by the Speaker, will hold its first meeting on Aug. 30 to discuss the mission of the task force, and set the agenda for the future meetings of the task force. The Legislative Council will provide an analysis of Wisconsin Supreme Court’s Ferdon decision to the Task Force.

The task force will explore a legislative fix in light of the Wisconsin Court ruling that held the current caps on noneconomic damages in medical malpractice cases unconstitutional.

Report: Comparison of Fiscal Controls Impacts
A report released Aug. 16 by the Legislative Fiscal Bureau provides a comparison of the estimated effects of fiscal controls on local governments included in the budget bill as adopted by the legislature, 2005 Wis. Act 25, and partially vetoed by the Governor.

Strong Growth in Wisconsin Property Values
According to the Equalized Values Report released Aug. 15 by the Department of Revenue, Wisconsin's total taxable property increased $36.7 billion (9.39%). Nearly one-third of this growth is attributed to new construction, totaling $11.3 billion.

The tax limits that the Republican-controlled Legislature approved when it passed the budget were modified by Doyle to allow communities to increase their tax levies by 2 percent or the amount of new construction, whichever is greater.

Building the New Wisconsin Economy
A recent Conference co-hosted by the Building the New Wisconsin Economy Project and the UW System Economic Summit focused on recognizing, energizing and improving local economic development initiatives.

Economic development and community leaders from around the state gathered this week to discuss economic development efforts to create and retain jobs.

Speakers at Tuesday’s event included Gov. Jim Doyle, UW System President Kevin Reilly and Wisconsin Technical College President Dan Clancy. Serving on panels were economic development leaders including Peter Thillman, president of the Wisconsin Economic Development Association (WEDA), Sammis White, UW–Milwaukee professor of Urban Planning, Kathi Seifert, of the Northeast Wisconsin Regional Economic Partnership, and James Otterstein, WEDA president-elect.

Minimum Markup Law has Renewed Interest
Legislation introduced earlier this year to repeal the minimum markup on gasoline has been stalled in committee, but with the increase in gasoline prices, legislators are renewing their push to schedule the bills.

The legislation (AB 505, SB 215) would repeal the minimum markup on gasoline, a law that requires wholesalers to mark up their prices by at least three percent and retailers by at least six percent, for a total minimum markup of 9.18 percent to the cost of fuel to consumers.

PSC/DNR to Study Clean Coal Technology
Governor Jim Doyle, as part of his Conserve Wisconsin Initiative, called on the Public Service Commission of Wisconsin (PSC) and the Department of Natural Resources (DNR) to study a new clean coal technology and its suitability for Wisconsin. A study group including stakeholders from environmental and customer groups, electricity providers and labor will be convened to review the new technology.

Integrated gasification combined cycle (IGCC) technology uses intense pressure and heat to convert coal into gas. The gas goes through a cleaning process and is then burned in a combined cycle gas turbine to generate electricity. Air emissions from the new technology are touted by proponents as significantly lower than current coal-generation technologies but questions remain about the cost and reliability of the new technology.

WisDOT Names Chief Legal Counsel
Wisconsin Department of Transportation Secretary Frank Busalacchi recently announced the appointment of Robert Jambois as the department's chief legal counsel.

Jambois has served as Kenosha County district attorney since 1989.The DOT position has been vacant since the controversial transfer of long-time counsel Jim Thiel.

WISTAX Studies Court Operations, Caseloads and Finances
Of the almost one million cases resolved by Wisconsin’s courts in 2004, 55 percent were disposed of by municipal courts and 44 percent by circuit courts. The remainder were Court of Appeals or Supreme Court cases, according to a new study by the Wisconsin Taxpayers Alliance (WISTAX). Counties funded 60 percent of circuit court costs, while the state provided 40 percent in 2004, according to the report.

Women's Equality Day at State Capitol
The Wisconsin Women’s Network hosted its annual Women's Equality Day event at the Capitol in the Senate Parlor on Thursday, August 25. Genevieve G. McBride, incoming director of UW Milwaukee's Women's Studies Department and author of the book, Women's Wisconsin: From Native Matriarchies to the New Millennium, was the guest speaker.

Unemployment Rates Lower in Metro Areas
Wisconsin Department of Workforce Development (DWD) Secretary Roberta Gassman announced that eleven of Wisconsin’s twelve metropolitan statistical areas experienced lower unemployment rates in July than in June. In addition, these same eleven metro areas reported lower unemployment rates in July 2005 than they had one year ago, in July 2004.

Madison continued to have the state’s lowest unemployment rate in July at 3.2 percent, down from 3.6 percent a month earlier and 3.7 percent a year earlier. Janesville, Racine, and Milwaukee had area unemployment rates in July at 8.5 percent, 5.9 percent and 5.0 percent respectively.

Wisconsin Politics

2006 Congressional Race
Dr. Steve Kagen, an Appleton allergy specialist, recently announced his candidacy for the 8th District congressional seat being vacated by U.S. Rep. Mark Green. Kagen, 55, who is running as a Democrat, said his campaign will focus on health care and calls his solution “No Patient Left Behind.”

Nick Reid, a congressional press secretary, plans to challenge U.S. Rep. Dave Obey, D-Wausau, in 2006. Reid and his family, who have lived in Washington, D.C. for about four years, are in the process of moving back to northwest Wisconsin. See more at Reid’s campaign website.

Reid is one of two candidates who plan to vie for the 7th District Republican nomination next year. Jeff Tyberg, 36, of Grantsburg announced his candidacy for the Republican nomination in April in his hometown newspaper.

Senator Herb Kohl, who will be 71 in 2006, has launched a new website in support of his bid for a fourth term in the U.S. Senate.

Political News

2nd Republican to take on Obey: Marshfield News Herald, Aug. 24, 2005.

Harsdorf launches veto amendment while Doyle flip flops: Hudson Star-Observer, Aug. 23, 2005.

Training grant boosts GM’s Janesville plant: Appleton Post-Crescent, Aug. 24, 2005.

State grant fuels optimism for Janesville's GM plant: Milwaukee Journal Sentinel, Aug. 24, 2005.

States’ business costs low if they’re not doing much of it: Appleton Post-Crescent, Aug. 24, 2005.

Wisconsin lags in new economy chase: Madison Capital Times, Aug. 23, 2005.

Resort area sales tax to expand next month: Janesville Gazette, Aug. 23, 2005.

Forum Keeps Focus On Economy (opinion): Wisconsin State Journal, Aug. 23, 2005.

Property tax cap impact studied: Appleton Post-Crescent, Aug. 21, 2005.

Future tax levels still uncertain: Marshfield News Herald, Aug. 21, 2005.

Eminent domain: Some want Wisconsin lawmakers to step in: La Crosse Tribune, Aug. 21, 2005.

Jensen floats bill for single-sex schools: Greater Milwaukee Today, Aug. 21, 2005.

Partnership provided $215 million benefit: Milwaukee Journal Sentinel, Aug. 19, 2005.

State jobless rate rises but is below nation's: Milwaukee Journal Sentinel, Aug. 19, 2005.

Celebration was 85 years in the making (opinion): Stevens Point Journal, Aug. 19, 2005.

Hold that line on spending (opinion): Milwaukee Journal Sentinel, Aug. 19, 2005.

State pension system widens gap of understanding (opinion): Oshkosh Northwestern, Aug. 18, 2005.

Slash Gas Tax, Say GOP Lawmakers: Wisconsin State Journal, Aug.18, 2005.

Upcoming Fundraisers

Aug. 30

• U.S. Rep. Ron Kind (D), West Salem

Aug. 31

• U.S. Rep. Paul Ryan (R), Madison

• U.S. Rep. Tom Petri (R), Manitowoc

Sept. 1

• U.S. Rep. Paul Ryan (R), Milwaukee

• Mark Green (R) Gubernatorial candidate, Lake Geneva

• JB Van Hollen (R) AG candidate, Green Bay

Sept. 8

• Scott Walker (R) gubernatorial candidate, Madison

• Sen. Alberta Darling (R-River Hills), River Hills