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Hamilton Consulting Group Political Tidbits
Wisconsin political news for clients and colleagues.

.Previous issues of Political Tidbits can be found at Tidbits Archive.
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Aug. 30, 2006

As we get closer to the election season, including the statewide primary on September 10, Tidbits has provided an overview and update of the 99 Assembly seats that will be decided in this fall’s elections. In our last issue we provided an overview of the 2006 Senate Races.

As noted in the last issue, the Legislative Audit Bureau released its long-awaited audit on the state’s economic development programs. On Tuesday, August 29, the Joint Legislative Audit Committee conducted its first hearing on the audit and heard testimony from invited state officials and the Wisconsin Economic Development Association. The Legislature is expected to engage in a very thorough analysis of these programs, their processes, and their value to the Wisconsin economy.

The audit and its solutions are also likely to play in to the gubernatorial election. Republican challenger Mark Green immediately proposed a public/private entity to oversee the economic development programs as a means of responding to the lack of economic development leadership due to the current fragmented system, which was identified in the audit. Governor Doyle, not surprisingly, disagreed with his opponent’s suggestion with a press release from his campaign.

We wish you all a safe Labor Day weekend.

Policy Developments

Doyle Directs 90 Percent Mercury Reductions
On Aug. 25, Gov. Jim Doyle announced that he has directed the State Dept. of Natural Resources (DNR) to require a 90 percent reduction of mercury emissions from coal-fired power plants, a move that industry says will increase electric bills with no environmental improvements. The gubernatorial directive also calls for a ban on certain mercury products such as mercury thermometers and dental products.

EPA issued the Clean Air Mercury Rule on Mar.15, 2005. The rule requires utilities to reduce their emissions of mercury nearly 70 percent. Its promulgation triggered a requirement in Wisconsin’s existing mercury rule that DNR revise the rule to assure consistency with the federal program. (The existing state rule provides for fewer mercury reductions than EPA’s rule.) While Gov.

Doyle called for incentives in addition to mandates, it appears the 90 percent pronouncement was a repudiation of his commitment to industry that the state would not impose restrictions beyond that required by EPA.

State Audit Committee Holds Hearing
The Joint Legislative Audit Committee held a public hearing on a recently released audit on state economic development programs. Invited speakers included Mary Burke, Secretary of Commerce, Kevin Reilly, President of the UW System and Dan Clancy, President of the Technical College System.

In addition, the Wisconsin Economic Development Association (WEDA) presented its preliminary findings and recommendations, which were supported by a recent survey conducted of its members. WEDA testimony included the following:

  • Leadership be statutorily established with commensurate accountability and authority for all ED programs.

  • Broad policy objectives be established for the state;

  • Programs be consolidated to provide workable amounts of dollars for ED programs; tax credit programs should be consolidated with expanded creditable activities and portability and serve as pilot project for other consolidations.

  • Emphasis be placed on speed and simplicity of program operation.

The Department of Commerce is required to report to the Joint Legislative Audit Committee by February 15th, 2007, on its efforts to improve procedures for tracking program results, monitor long-term results, and identify duplicative programs, among other recommendations. Furthermore, the University of Wisconsin System and the  Wisconsin Technical College System will report to the Committee on their progress toward designating an economic development liaison at each campus and publishing directories of their business assistance programs offered.

Following are some related links:

Road to the Future Committee Hears Transportation Needs
The Joint Legislative Committee on Transportation Needs and Finance also known as the Road to the Future Committee recently accepted the draft report on phase one of its work.

The draft report summarizes testimony received by the Committee at over 16 hours of public hearings as well as analysis prepared by the Legislative Fiscal Bureau.

During this phase, the committee established benchmarks for needs in four areas that account for the great majority of transportation spending: state highway construction, state highway maintenance, aids to local governments, and mass transit operating assistance. According to the analysis prepared for the committee, current funding falls short of those benchmark needs by $698 million dollars per year.

Midwest U.S. – Japan Conference in Indianapolis September 10 – 12
On September 10 – 12, Indianapolis will host the 38th Annual Joint meeting of the Midwest-US Japan Association Conference.

The conference will include discussions with Japanese and U.S. business experts and economic specialists who will share their insight into the acceleration of global commerce as well as explore advanced technologies and life sciences, the impact of economic trends in Asia on Japan-U.S. relations, new challenges to global commerce, and challenges and opportunities in the automotive industry. The conference is presented by Eli Lilly and Toyota Motor Manufacturing, Indiana.

Also, the UW-Madison will host its Economic Outlook conference on Sept. 15. The event will feature four leading economists and will discuss factors impacting the economy such as interest rates, oil prices, federal budget deficits, and the relative strength of the dollar. Business leaders from throughout Wisconsin, northern Illinois and eastern Iowa are expected to attend.

New Report Shows Impact of Single Sales Factor Tax Reform
In 2003, the Legislature adopted and Gov. Doyle signed the single sales factor tax law. Because of that law change, on Jan. 1, 2006 Wisconsin began phasing in a formula to apportion income to the state based only on the amount of sales a company makes in Wisconsin compared to sales made everywhere.

Single sales factor apportionment will be fully phased in for taxable years beginning in 2008. Once fully implemented, the income of multi-state businesses will be apportioned to the state using only the amount of sales made in Wisconsin, and will no longer be based on a formula that also includes Wisconsin-based payroll and property.

The Department of Revenue’s study compares the state’s current treatment to the full phase-in. According to the DOR study, Wisconsin ranks 5th  in total tax liability pre-single-sales factor apportionment, but drops to 11 once single-sales is fully implemented.

Wisconsin Politics

We the People to Host Gubernatorial Debates
We the People/Wisconsin will air two, live, statewide forums this fall. On Friday, September 15, a one-hour televised forum in Waukesha will be presented with confirmed participation by Gov. Jim Doyle and U.S. Rep. Mark Green and will focus on taxes and the economy. A second confirmed pairing of the candidates will take place on Friday, Oct. 20 in La Crosse and will involve discussions of quality of life issues, such as health care and education.

We the People/Wisconsin is a non-profit coalition that includes the Wisconsin State Journal, Wisconsin Public Television, Wisconsin Public Radio, WISC-TV (CBS, Madison), WisPolitics.com and Wood Communications Group.

Clinton to Support Doyle at Fundraiser
Former President Bill Clinton will campaign for Governor Doyle Oct. 24 in Wisconsin. Doyle's campaign said details were not immediately available but said Clinton is expected to appear at a fundraiser in Milwaukee.

In July President Bush was in Wisconsin to campaign for Doyle’s opponent Mark Green and returned to Wisconsin to support a candidate for Green’s seat, John Gard.

Federal Developments

Bush Signs Health Care Measure
On August 22, President Bush signed an Executive Order intended to make health care facilities user-friendly for Americans.

This Executive Order directs federal agencies that administer or sponsor Federal Health Insurance Programs to:

  • Share with beneficiaries information about prices paid to health care providers for procedures.

  • Share with beneficiaries information on the quality of services provided by doctors, hospitals, and other health care providers.

  • Use improved health IT systems to facilitate the rapid exchange of health information.

  • Develop and identify approaches that facilitate high quality and efficient care.

Political News

Drunken-driving plans debated: Milwaukee Journal Sentinel, Aug. 30, 2006.

Crackdown planned on holiday drunken driving: Milwaukee Journal Sentinel, Aug. 30, 2006.

Plan would rein in state economic development programs: Milwaukee Journal Sentinel, Aug. 30, 2006.

Labor seen as key to future: Milwaukee Journal Sentinel, Aug. 30, 2006.

Utility, state settle over pollution data: Milwaukee Journal Sentinel, Aug. 30, 2006.

The onslaught of issue ads (opinion): Milwaukee Journal Sentinel, Aug. 29, 2006.

Green aims to be 'chief jobs officer': Milwaukee Journal Sentinel, Aug. 29, 2006.

Green proposes eliminating the state Commerce Department: Janesville Gazette, Aug. 29, 2006.

Taxes and spending: Where do candidates for governor stand? La Crosse Tribune, Aug. 28, 2006.

A biting campaign: Beloit Journal Times, Aug. 28, 2006.

Women strong players in races: Appleton Post-Crescent, Aug. 28, 2006.

Candidates discuss mandating ethanol in gas: Manitowoc News Herald, Aug. 28, 2006.

Nuclear power still heated topic in state (opinion): La Crosse Tribune, Aug. 28, 2006.

Plan B protects, empowers women (opinion): Wisconsin State Journal, Aug. 28, 2006.

Stateline's blood supply tightens for hospitals: Beloit Daily News, Aug. 28, 2006.

Wisconsin one of six states targeted in Labor Day DUI crackdown: Wisconsin Rapids Daily Tribune, Aug. 28, 2006.

Doyle's budget record disputed: Green Bay Press-Gazette, Aug. 27, 2006.

Doyle announces mercury guidelines: Milwaukee Journal Sentinel, Aug. 27, 2006.

Ethanol may leave boaters high and dry: Milwaukee Journal Sentinel, Aug. 26, 2006.

A way forward for state companies (opinion): Milwaukee Journal Sentinel, Aug. 26, 2006.

Madison and Milwaukee: So close, yet so far: Milwaukee Journal Sentinel, Aug. 26, 2006.

Candidates aim to win recognition: Milwaukee Journal Sentinel, Aug. 26, 2006.

Ridgeville vote mirrors national energy policy (opinion): Tomah Journal, Aug. 25, 2006.

New questions on role of Doyle's office in sale of nuclear plant: Wisconsin State Journal, Aug. 25, 2006.

More state spending on highways backed: Milwaukee Journal Sentinel, Aug. 25, 2006.

Construction of new rail spur underway: Ashland Daily Press, Aug. 25, 2006.

First-timers and checkpoints (opinion): Milwaukee Journal Sentinel, Aug. 25, 2006.

We need to act to make highways safer (opinion): Ashland Daily Press, Aug. 25, 2006.

Drunk driver vote could be crucial: Wisconsin State Journal, Aug. 24, 2006.

Ads drown out the candidates: Milwaukee Journal Sentinel, Aug. 24, 2006.

Green team taps Giuliani: Milwaukee Journal Sentinel, Aug. 24, 2006.

Passing the buck is no solution (opinion): Superior Daily Telegram, Aug. 24, 2006.

Ugliness in AG's races hits new low (opinion): Wausau Daily Herald, Aug. 24, 2006.

Jobless rate stays level again: Milwaukee Journal Sentinel, Aug. 24, 2006.

Regional unemployment dips from June to July: Ashland Daily Press, Aug. 24, 2006.

Sure sign of the change in season: County sales tax (opinion): Oshkosh Northwestern, Aug. 24, 2006.

Manufacturing's new direction: Milwaukee Journal Sentinel, Aug. 23, 2006.

Milwaukee climbs up in economic rankings: Milwaukee Journal Sentinel, Aug. 23, 2006.

Ethanol a mixed fuel bag (opinion): Madison Capital Times, Aug. 23, 2006.

A small, but good step toward energy self sufficiency (opinion): Superior Daily Telegram, Aug. 21, 2006.

Helmet safety: Fond du Lac Reporter, Aug. 23, 2006.

More cycles on the road, and more crashes, too: Beloit Daily News, Aug. 22, 2006.

Upcoming Fundraisers

Aug. 30

  • Sen. Julie Lassa (D-Stevens Point), Madison

  • JB Van Hollen (R) AG candidate, Manitowoc

  • Rep. Steve Freese (R-Dodgeville), Mineral Point

Aug. 31

  • Sen. Russ Decker (D-Schofield), Rothschild

  • Nick Reid (R) 7th CD candidate, Grantsburg

  • Mark Green, Hartland

Sept. 6

  • Rep. Mike Huebsch (R-Onalaska), Verona

  • JB Van Hollen (R) AG candidate, Kenosha

Sept. 8

  • Rep. Jeff Stone (R-Greenfield), Cottage Grove

Sept. 13

  • Sen. Neal Kedzie (R-Elkhorn), Eagle

For details, go to Hamilton Consulting Fundraiser Calendar.

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