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Aug. 27, 2004

The approaching Labor Day weekend typically signals the unofficial end of summer. (Some of us aren't sure that summer ever began this year.) In this, an even-numbered year, it also marks one week before the September Primary Election and two months before the 2004 fall general election. There are some key primaries to be held on September 14 since, for all practical purposes, the outcome will determine the general election winner. Tidbits will highlight the key primaries in the next edition, just days in advance of the actual voting. Meanwhile, we invite you to visit HCG's 2004 Elections Update for a preview of all 2004 races and candidates.

There were several noteworthy events in Wisconsin this past week, reported below, and highlighted by: the swearing in of Louis Butler as Justice of the Wisconsin Supreme Court, the first African American to serve on our state's highest court; the granting of "enhanced mobility" awards to improve highway safety through increased visibility, the first such organized effort in the United States; and, the adoption of proposed rules to implement and supplement "predatory lending" legislation adopted earlier this year.

Policy Developments

Wisconsin’s Rules on Overtime Pay will Remain in Force
Reacting to changes at the federal level, Governor Doyle announced that Wisconsin workers receiving overtime pay will remain covered under state labor laws.

Virtually all Wisconsin employees covered under the federal standards are also covered under Wisconsin's overtime regulations, except for employees of the federal government. Because Wisconsin is maintaining its overtime provisions, employers will be subject to the stronger, Wisconsin standards. Go to Wisconsin Department of Workforce Development web page for a chart that outlines the impact of these changes.

The new Federal overtime regulations would raise the minimum salary to qualify as a “white collar” employee to $425 a week for those not entitled to overtime pay. An increase of $270 a week, this is the largest increase since the Fair Labor Standards Act was passed by Congress in 1938.

Navigable Water Emergency Rules Approved
The Wisconsin Natural Resources Board has unanimously approved compromise emergency rules to implement that part of 2003 Wisconsin Act 118 (The Jobs Creation Act) intending to streamline the process for approving projects along public lakes and rivers. At a special meeting on Aug. 16, interested parties agreed on a list of high quality, sensitive waters where projects would continue to be required to receive some kind of permit and review from DNR.

This latest rule package supplemented previously adopted emergency rules. The following are the emergency rules currently in effect relating to waterway permitting under Chapter 30, Wisconsin Statutes:

• NR 1: Designated Waters (Effective August 24, 2004)

• NR 300: Time Limits and Fees (Effective April 19, 2004)

• NR 310: Procedures (Effective August 24, 2004)

• NR 320: Bridges and Culverts (Effective August 24, 2004)

• NR 323: Habitat Structures (Effective April 19, 2004)

• NR 325: Boathouses (Effective April 19, 2004)

• NR 328: Shore Erosion Control (Effective August 24, 2004)

• NR 329: Miscellaneous Structures (Effective August 24, 2004)

• NR 341: Grading (Effective May 19, 2004)

• NR 343: Ponds (Effective August 24, 2004)

• NR 345: Dredging (Effective August 24, 2004)

The focus now turns to the promulgation of the permanent rules that will ultimately replace the temporary Chapter 30 emergency rules. DNR will be holding additional public hearings on the draft permanent rules beginning at 6 p.m. at the following dates and locations:

August 31

• UW-Madison, 702 Langdon Street, Madison

• Chippewa Valley Tech College, 2320 Alpine Road, Eau Claire

• UW-Washington Co., 400 University Dr., West Bend

September 1

• UW-Madison, 702 Langdon Street, Madison

• Wis. Indianhead Tech. College, 600 N. 21 St., Superior

• UW-Madison, 702 Langdon Street, Madison

• Northeast Tech College, 2740 W. Mason Street, Green Bay

• W-La Crosse, 1725 State St., La Crosse

• W-Stevens Point, 1101 Reserve St., Stevens Point

For more information, go to DNR’s Waterway and Wetland Permits web pages.

DFI Forwards Rules Related to High Cost Lending
The Department of Financial Institutions (DFI) this week forwarded to the Assembly and Senate standing committees proposed rules relating to the implementation  of 2003 Act 257 which regulates “high cost lending” in Wisconsin. The legislation was adopted, with the strong support of the mortgage lending industry and consumer groups, to protect consumers who are required to obtain high cost loans from so-called “predatory lending” practices.

The primary focus of the rule, and an obligation imposed by statute, is to define the ability to repay a high cost loan and the means of verifying such ability to repay. Representatives of the mortgage lending industry and consumer advocates who testified at yesterday’s hearing supported the proposed rules with some minor modifications and clarifications. The intention is to have the legislative review process completed and to have the rules in effect prior to Feb. 1, 2005 when the new law, Act 257, goes into effect.

Wisconsin DOT Grants Will Promote Public Safety
67 awards totaling over $1.8 million statewide will enhance the visibility of traffic signs and roadway markings to assist the aging driver population, pedestrians and all drivers and others who use and rely upon our public roadways. The original proposal was developed by The Enhanced Mobility Coalition, which is composed of safety, health, law enforcement, highway users, aging groups and others interested in reducing crashes and related deaths and injuries. The chief legislative proponent was Rep. Jeff Stone, a member of the Joint Finance Committee. The program was adopted as part of the state budget and signed into law by Governor Doyle. It is the first coordinated program of its kind in the country.

In announcing the awards, it was noted that part of Governor Doyle’s “Grow Wisconsin” plan includes enhancing economic development and public safety through strategic investments in the transportation network. Doyle said the awards represent another state and local partnership to promote transportation efficiency and public safety.

Under the program, the state will reimburse municipalities for up to 75 percent of eligible project costs with local governments providing 25 percent local share to a limit of the award. A complete list of statewide recipients is available on the WisDOT Web site.

EPA’s Mercury Advisories Prompt Renewed Criticism of EPA’s Proposal
On Aug. 24, EPA announced the release of its 12th Annual National Listing of Fish Advisories. Although the number of rivers and lakes with advisories warning of fish contaminated with mercury continues to rise, EPA notes that the U.S. emissions of mercury have declined almost 50 percent since 1990. EPA emphasized that the rise in advisories is due to increased monitoring. In Wisconsin, DNR opted to issue a state-wide advisory for inland waters as more testing expanded the listing of water bodies with elevated levels of mercury. For additional information, go to DNR’s Fish Consumption Advisories and EPA’s Fish Advisories web pages.

The EPA announcement generated renewed criticism of EPA’s proposed mercury rule by environmental groups. EPA proposed its mercury rule that targets utility emissions on Jan. 30, 2004, with a supplemental proposal issued on Mar. 16, 2004. Wisconsin utilities and other interest groups are closely monitoring EPA’s efforts to promulgate a federal mercury standard given Wisconsin statutory and regulatory directives that DNR promulgate a comparable state rule. See Hamilton Consulting Group’s Mercury Update for additional information on DNR and EPA mercury initiatives.

UW System Seeks Increase in State Aid/Tuition in Budget Request
The University of Wisconsin System Board of Regents is asking for state funding for the 2005-07 biennium that will help its 26 campuses and UW-Extension begin to recover from the $250 million in state budget cuts they took in the 2003-05 biennium, while providing more access and services for students.

Incoming President Kevin Reilly noted that the state’s economy is turning around and that a reinvestment in the university system would pay important dividends to the people of the state. “This budget will help us not only maintain educational quality, but also enable us to collaborate on projects to improve the Wisconsin economy and address state workforce shortages.”

State Employee Health Insurance Held to 5% Increase
For the first time in five years, state employee health insurance premiums have not reached double-digit increases. Governor Doyle praised the program change and emphasized they provide a market-based incentive for participating health plans to hold down their costs and pass the savings on to the state. He noted that other Wisconsin businesses can take advantage of programs like BadgerRx  to tackle the escalating health insurance costs that are crippling state businesses.

State Seeking $800 Million in Operating Notes
An anticipated $710 million cash shortage in early December has prompted the Department of Administration to request approval for operating notes up to $800 million for Fiscal Year 2005. The Joint Finance Committee must approve the request or set a committee meeting to take action.

Marathon County Approves Power-Line Easement
The Marathon County Board voted 23-12 to permit the American Transmission Co. to build part of the 345,000-volt Arrowhead-Weston power line on about 1.5 miles of land in Nine Mile Recreation Area. The Marathon County Board's decision clears a major hurdle in the transmission line approval process. Construction is expected to begin in Marathon County by January.

Wisconsin Politics

Butler Sworn in as New Supreme Court Justice
Governor Doyle recently appointed Louis Butler to a seat on the Wisconsin Supreme Court. Butler, who was sworn in on Wednesday, is the first African-American to serve on the state’s highest court. He will be required to run for reelection for a full ten-year term in 2008, the next year in which another justice is not up for reelection. (Wisconsin’s constitution prohibits the election of more than one supreme court justice in the same year.)

In making the announcement, Doyle cited Butler’s fairness, his sense of justice, and his lifelong commitment to public service. After graduating from Lawrence University in Appleton and the University of Wisconsin Law School, Butler was a public defender, a municipal court judge for the City of Milwaukee, and most recently served as a judge for the Milwaukee Circuit Court.

Butler will fill the position left vacant by Justice Diane Sykes who resigned the Wisconsin Supreme Court after being appointed by President George W. Bush and confirmed by the U.S. Senate to the United States 7th Circuit Court of Appeals.

State-Local Government Relations Hearings Set
Senator Ron Brown, Chair of the special committee has scheduled the committee's initial meetings and hearings for:

• Tuesday, Aug. 31 at 10:00 am in Room 411 S., State Capitol (invited speakers only)

• Wednesday, Sept. 22 at 2:00 pm in Room 411 S., State Capitol (presentations open)

The committee, which also includes Senators Rob Cowles, Ted Kanavas, Bob Jauch and Judy Robson, will examine the statutory relationship between state and local governments; potential for increased efficiencies; and ideas for cost-cutting measures. 

Rep. Vukmir Named Chair of Committee
Rep. Leah Vukmir has been named chair of the Assembly Education Reform Committee Chair.  Vukmir, a freshman legislator, has been serving as vice-chair of the committee since January and replaces Scott Jensen who stepped down as chair last week before accepting a position with the Alliance for School Choice.

Candidate Announces Write-In Campaign for 20th Senate District
Elysse Chay, a Democrat from Grafton announced this week that she will run a write-in campaign in the September 14 primary for the 20th Senate District. Chay is a former legislative intern and recently graduated from Marquette University with a degree in political science.

The 20th Senate District is currently held by Senate Majority Leader Mary Panzer (R-West Bend). Panzer faces a primary challenge from Rep. Glenn Grothman (R-West Bend). In order for Chay to qualify for the November 2 general election ballot, she must receive 5 percent of the number of votes for Gov. Jim Doyle within the 20th Senate District.

Federal Developments

Thompson Releases Health Access Successes and Calls on Congress to Act; Census says 1.4 Million More Uninsured
DHHS Secretary Tommy Thompson yesterday said the president has developed a comprehensive plan for reducing the uninsured population which promotes consumer-driven health care initiatives to address access and affordability for low and moderate income Americans.

The Administration release comes on the heels of a U.S. Census report that showed the number of Americans without health insurance increased by 1.4 million between 2002 and 2003. Secretary Thompson said that millions are living healthier lives because of the Administration's successes such as: Community Health Centers; Medicaid and State Children’s Health Insurance Program: High-Risk Pools: Medicare; Health Savings Accounts;  Hospital Discounts; Lower Drug Prices; and Tax Credits.

In addition, Thompson called on Congress to act on proposals by President Bush to establish refundable tax credits to help low-income workers buy health insurance coverage, approve Association Health Plans (AHPs), adopt Medical Malpractice Reforms and increase investments in Technology.

Political News

Butler’s appointment is ‘better late than never’ (opinion): Fond du Lac Reporter, Aug. 27, 2004.

More go without health insurance: Appleton Post-Crescent, Aug. 27, 2004.

Butler sworn in as first black justice: Milwaukee Journal Sentinel, Aug. 26, 2004.

Re-examine overtime rules (opinion): Milwaukee Journal Sentinel, Aug. 26, 2004.

Report: state won't regain lost factory jobs: Madison Capital Times, Aug. 26, 2004.

EPA chief defends environmental plan: Appleton Post-Crescent, Aug. 26, 2004.

Technology a key in mercury limits (opinion): Green Bay Press-Gazette, Aug. 26, 2004.

Drug coverage plan popular: Milwaukee Journal Sentinel, Aug. 26, 2004.

Overtime rules praised by some, scorned by others: Appleton Post-Crescent, Aug. 25, 2004.

Time will tell on overtime rules (opinion): Green Bay Press-Gazette, Aug. 25, 2004.

Health costs tied to jobs: Milwaukee Journal Sentinel, Aug. 25, 2004.

Marathon Co. OKs plan for power line: Stevens Point Journal, Aug. 25, 2004.

Grass-roots fight against coal withers: Racine Journal Times, Aug. 25, 2004.

48 states recommend limits on fish consumption: Green Bay Press-Gazette, Aug. 25, 2004.

Limits on young drivers pay off: Milwaukee Journal Sentinel, Aug. 24, 2004.

Encourage regional growth and tax-base sharing (opinion): La Crosse Tribune, Aug. 24, 2004.

Shared revenue plan would push cooperation: Milwaukee Journal Sentinel, Aug. 23, 2004.

State bucks rule on OT pay: Wisconsin State Journal, Aug. 22, 2004.

PGA event is big win for state business: Milwaukee Journal Sentinel, Aug. 22, 2004.

Lawmakers should reject wage hike (opinion): Wisconsin State Journal, Aug. 22, 2004.

Do-not-call listings up for renewal: Manitowoc Herald Times, Aug. 18, 2004.

Doyle promotes state's military bases: Janesville Gazette, Aug. 18, 2004.

Lautenschlager aids case for birth control in health plans: Wisconsin State Journal, Aug. 18, 2004.

Safety laws contribute to record low traffic deaths (opinion): Stevens Point Journal, Aug. 18, 2004.

New federal study supports stronger motor vehicle roofs: Wausau Daily Herald, Aug. 18, 2004.

A widening safety gap on the road: Milwaukee Journal Sentinel, Aug. 17, 2004.

To promote economy, get a move on (opinion): Wisconsin State Journal, Aug. 16, 2004.

Whistling Straits gets rave reviews: Appleton Post-Crescent, Aug. 16, 2004.

Home sales are down but prices are up: Baraboo News Republic, Aug. 16, 2004.

Utilities keeping tabs on aging power grid: Milwaukee Journal Sentinel, Aug. 15, 2004.

Upcoming Fundraisers

Monday, Aug. 30

• Sen. Roger Breske (D-Eland), Merrill

• Sen. Jeff Plale (D-South Milwaukee), Milwaukee

Tuesday, Aug. 31

• Sen. Mary Panzer (R-West Bend), West Bend

• Eric Peterson (R) 16th SD candidate, Milton

Wednesday, Sept. 1

• Eric Peterson (R) 16th SD candidate, Sun Prairie

Saturday, Sept. 4

• Robert Gerald Lorge (R) U.S. Senate candidate, Clintonville

Wednesday, Sept. 8

• State Senate Democratic Committee, Madison

• Rep. Phil Montgomery (R-Green Bay), Madison

• Eric Peterson (R) 16th SD candidate, Madison

Thursday, Sept. 9

• Rep. Sheryl Albers (R-Reedsburg), Camp Douglas

• Dave Mganum (R) 2nd CD candidate, Middleton

• Tim Michels (R) US Senate Candidate, Milwaukee