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Sept. 12, 2003

On Tuesday, Senate Republicans and Governor Doyle announced, separately, plans to promote economic development and bring jobs to Wisconsin (see details and links below). The Senate Republicans’ proposal focused on several specific legislative or legislative-related initiatives. The Governor’s wide ranging Grow Wisconsin package, while suggesting several legislative initiatives, also included numerous policy “goals” highlighting how state government has already begun and can continue to address economic growth. The Governor’s document included items that can be achieved administratively, or by the power of persuasion. Despite some variation in the two documents, both plans focus on many common themes, including a public commitment to “work together” to promote economic growth and job creation in the upcoming months.

Wisconsin Politics and Policy

Administration and Senate GOP Announce Growth Initiatives
On September 10, the Administration and Senate Republicans announced initiatives aimed at creating jobs and growing the economy in Wisconsin. Governor Doyle announced his Grow Wisconsin initiative at conferences in Madison, Milwaukee, and Appleton, and Senate Majority Leader Mary Panzer (R-West Bend), joined by co-chairs of the Senate Select Committee on Job Creation senators Cathy Stepp (R-Sturtevant) and Ted Kanavas (R-Brookfield), announced the Senate Republicans’ plan for job growth at a noon press conference at the Capitol. (Follow the links above to read the full text of the two plans; see articles below for highlights.) Both plans attempt to ‘grow’ Wisconsin’s economy and create jobs as part of the upcoming fall Legislative floor period, which will focus on economic development and job creation.

Senate GOP’s Job Creation Initiative
The Senate Republicans’ plan for job creation includes several initiatives for creating new jobs and growing the state’s economy. Highlights of the Senate Republican plan include:

• Streamlining permit application processes and creating deadlines for agency action on permit applications;
• Reforming Tax Incremental Financing (TIF) to eliminate red tape and increase the amount of value municipalities can use for a TIF;
• Revising Trans 233 to eliminate current roadblocks to economic development and job growth;
• Expanding the Certified Capital Company Program (CAPCO) by increasing the program’s funding;
• Creating a WRS Venture Capital Trust Fund to allow state employees to voluntarily contribute 10 percent of their retirement portfolios to a venture capital trust;
• Buttressing tax credits and deferrals for private investors in seed funds and investments in early seed companies;
• Promoting energy reliability;
• Creating greater broadband deployment; and
• Providing education worker training tax credits.

Governor Doyle’s ‘Grow Wisconsin’ Initiative
The Governor’s economic development package (Grow Wisconsin) includes several initiatives for creating jobs, raising worker compensation, and stimulating the overall economy in Wisconsin. Highlights of the Governor’s plan include:

• Eliminating the backlog and expediting the processing of Title V Air Operating Permits;

• Enacting legislation that rewards companies with good environmental records;

• Dramatically simplifying permits for “New Source Review;”

• Using the internet to lower the regulatory burden across government;

• Creating a new Manufacturing Competitiveness Program;

• Creating a $10 million training fund to offer free training to companies that create significant numbers of new, high paying jobs;

• Creating a $300 million fund to invest in venture capital;

• Enhancing technology zone tax credits, including refundable tax credits;

• Reforming community and enterprise development zone credits; and

• Promoting broadband deployment. 

Senate Committee to Hold Hearing on Job Creation Plan
The Senate Select Committee on Job Creation will hold a public hearing on the GOP economic development plan (LRB 3166/1, see link and highlights above) on Tuesday, Sept. 16, 2003 at 11:00 a.m. in room 201 Southeast, Capitol. A possible executive session may be held on the legislation following the hearing.

Governor Announces Energy Reliability Plan
On Tuesday, September 9, Governor Doyle announced a plan to increase reliability of Wisconsin’s aging power grid by speeding the process for siting new electricity transmission lines and power generation facilities. The Governor’s Energy Reliability Plan is an attempt to ensure energy reliability and promote conservation and renewables, while working to prevent energy disasters in Wisconsin similar to the one that occurred three weeks ago on the East Coast.

The plan relies on a September 9^th agreement between the Department of Natural Resources (DNR) and Public Service Commission (PSC), stating they would work together to streamline their siting processes for new energy facilities. Additionally, the Governor’s plan includes creation of a new group, the Energy Conservation and Renewables Task Force, to be chaired by attorney Lee Cullen, and appointed by Gov. Doyle, to assist the agencies’ streamlining efforts and to be the voice of the Governor’s goals of ensuring continued protection of the environment, and promoting conservation and renewable energy.

Highlights from the Governor’s Energy Reliability Plan include:

• PSC and DNR working concurrently rather than consecutively on siting applications;

• Improved communication among the two state agencies and the Administration;

• Formation of a new energy permitting unit at DNR, including 7 new staff members, to be funded by the PSC;

• Cutting the allowable time for application review in half;

• Save Wisconsin rate payers money; and

• Increase the number of generation and transmission facilities in Wisconsin.

Energy Company Has $2.8 Billion Plan
On Tuesday, September 9, the same day that Governor Doyle announced his new Reliable Energy Plan (above), American Transmission Co. (ATC), a transmission firm servicing portions of Wisconsin, Upper Michigan and Illinois, announced its 10-year, $2.8 billion plan to upgrade existing transmission facilities and add new ones in order to ensure future energy reliability. Highlights of the plan include:

• Implementing the Arrowhead-Weston 345 kilovolt line project from Wausau, Wis., to Duluth, Minn;

• Implementing transmission reinforcements to address reliability concerns in the Rhinelander area and Upper Michigan;

• Implementing transmission reinforcements to improve transfer capability between Wisconsin and Upper Michigan;

• Implementing transmission reinforcement in and around the Madison area to address emerging reliability concerns;

• Constructing facilities to interconnect new generation;

• Constructing new transmission lines between the Milwaukee area and the Madison area to address reliability concerns west of Milwaukee and to facilitate power transfer within ATC's system; and

• Constructing new transmission lines to neighboring states to improve Wisconsin's import capability.

Supreme Court To Hear Tax Exemption Case
On Thursday, September 11, the Wisconsin Supreme Court heard oral arguments on Village of Lannon v. Wood-Land Contractors, Inc., relating to whether or not the so-called “primary purpose test” is a valid tool for analyzing whether or not a business is entitled to a tax exemption. The “primary purpose test” is often employed when a tax exemption is available to offset certain costs that are incurred during the course of a company’s primary business. Although the “primary purpose test” has often been applied in Wisconsin, in affirming the trial court’s decision in this case, the Wisconsin Court of Appeals, District 2 (Waukesha County) acknowledged that the test has never been applied by a Wisconsin Court. The Supreme Court will decide whether or not the test may be used to determine whether a business property tax exemption is allowed.

Products Liability Bill Gets Hearing
On Thursday, September 11, the Assembly Judiciary Committee held a public hearing on AB 317, touted by the primary authors, Rep. Mike Huebsch and Sen. Bob Welch, and other proponents as “common sense” product liability reform. The bill is supported by the Wisconsin Coalition for Civil Justice, defense trial lawyers, manufacturers, and statewide small business, professional, trade and economic development associations. Those opposing include plaintiff lawyers, labor, and the Wisconsin Action Coalition. (For a detailed analysis of the proposed bill, see The Hamilton Consulting Group’s Update.)

Federal Developments

Federal Judge Rules to Allow 9/11 Lawsuits
Nearly coinciding with the second anniversary of the tragic events of Sept. 11, 2001, on September 9, a Federal District Court Judge for Manhattan, Judge Alvin K. Hellerstein, handed down a ruling that opens the door for families of the victims of the 9/11 hijackings to sue defendant airlines, the Port Authority of New York and New Jersey, and the owner of the World Trade Center. (See the opinion as In Re September 11 Litigation.) The Judge denied the defendants’ motion to dismiss, Tuesday, and opened his opinion by stating, "The injured, and the representatives of the thousands who died from the terrorist-related aircraft crashes of Sept. 11, 2001, are entitled to seek compensation." 

In his 49-page opinion, Judge Hellerstein ruled that, notwithstanding the extraordinary circumstances of the hijackings, the above defendants had a legal duty to protect the lives of those on board the various airplanes, as well as those inside the World Trade Center and on the ground below. By acknowledging such a duty, and thereby allowing suits already filed to go forward, the Judge opened the door for other injured and victim family members yet to sue. Complicating the issue further is uncertainty over the applicable statute of limitations for filing a wrongful death lawsuit for the September 11 tragedy. New York State has extended their statute of limitations to March 2004. Attorneys are unsure, however, of whether or not this extension applies to potential plaintiffs who reside in other states. If it is determined that it does not, the deadline for out-of-state plaintiffs to file suit was yesterday, Sept. 11, 2003.

[EDITOR’S NOTE: Shortly after the tragic events of September 11, 2001, the National Academy of Trial Lawyers, to its credit, urged plaintiff lawyer members not to use the events of 9/11 as a reason to pursue lawsuits and further add to the tragedy by seeking compensation from airlines and others who were also damaged by the acts of terrorists. Unfortunately, some plaintiff lawyers and their clients have opted to seek recovery of damages under a negligence theory rather than accessing the September 11 Victim Compensation Fund of 2001, and, they have now been supported by a judicial decision. The judge rejected the argument that the suicide attacks were so extraordinary as to absolve other potential defendants of negligence.]

Study Finds Health Care Costs Up Again
On September 9, the Kaiser Family Foundation Health Research and Educational Trust released the results of a survey inquiring into health insurance premium increases. The group’s Summary of Findings reports that health insurance premiums rose this year (between spring 2002 and spring 2003) by 13.9 percent, a rate substantially higher than overall inflation (2.2 percent). The summary continues to report, however, that despite the marked increase in premiums, many employers have continued offering single employee coverage at the same rate as last year. Employees contributing to family coverage plans are generally paying higher premiums. The study reports that employer reactions to the increased premium results would more likely trigger higher employee contributions in the future rather than reduced eligibility or dropped coverage. (View the full report.)

Political News

Government's role one key to state's economic future: Wausau Daily Herald, Sept. 12, 2003.

Economic talk pleases paper firms: Appleton Post-Crescent, Sept. 12, 2003.

Doyle unveils $40 million plan to repair state's economy: Milwaukee Journal Sentinel, Sept. 11, 2003.

Tribe seeks exemption from license requirement for lobbyists: Appleton Post-Crescent, Sept. 11, 2003.

Path clear for George special election: Milwaukee Journal Sentinel, Sept. 11, 2003.

Doyle prescribes $1B shot in arm: Appleton Post-Crescent, Sept. 11, 2003.

Gun bill hearing is crowded: Wisconsin State Journal, Sept. 10, 2003.

Concealed weapons testimony divided: Milwaukee Journal Sentinel, Sept. 10, 2003.

$2.8 billion power line plan: Milwaukee Journal Sentinel, Sept. 10, 2003.

Natural gas prices expected to be 5%-10% higher this winter: Green Bay Press-Gazette, Sept. 10, 2003.

More health costs shifted to workers: Milwaukee Journal Sentinel, Sept. 10, 2003.

Health care cost up 13.9 percent: Madison Capital Times, Sept. 10, 2003.

MGE says let it blow: Madison Capital Times, Sept. 9, 2003.

Utility plans second wind farm: Milwaukee Journal Sentinel, Sept. 9, 2003.

Bill limiting taxes faces uphill battle: Green Bay Press-Gazette, Sept. 8, 2003.

Many Doyle opponents catching recall fever: Green Bay Press-Gazette, Sept. 8, 2003.

Wisconsin cities working to deal with budget woes: Manitowoc Herald Times, Sept. 7, 2003.

Bill would prevent posting of personal information online: Manitowoc Herald Times, Sept. 7, 2003.

Donor tax credit bill gains support: Appleton Post-Crescent, Sept. 7, 2003.

Technical aid for state's industries is endorsed: Milwaukee Journal Sentinel, Sept. 6, 2003.

Part 7: Act now to get economy moving (opinion): Wisconsin State Journal, Sept. 6, 2003.

Upcoming Fundraisers

Friday, September 12, 2003:

• Tom Barrett (for Milwaukee Mayor), 5:00 p.m., Milwaukee, Wis.

Tuesday, September 16, 2003:

• St. Rep. Luther Olsen (R-Berlin), 11:00 a.m., Berlin, Wis.

Wednesday, September 17, 2003:

• Senate Majority Leader Mary Panzer (R-West Bend) and St. Sen. Alberta Darling (R-River Hills), Noon, Saukville, Wis.

Thursday, September 18, 2003:

• St. Rep. Jennifer Shilling (D-LaCrosse), 5:00 p.m., LaCrosse, Wis.

• St. Democrats Inaugural Golf Outing, 11:00 a.m., Wisconsin Dells, Wis.

• Committee to Elect a Republican Senate, 5:00 p.m., Delafield, Wis.

Saturday, September 20, 2003:

• St. Rep. Debi Towns (R-Janesville), 10:00 a.m., Whitewater, Wis.

Monday, September 22, 2003:

• St. Rep. Mark Gundrum (R-New Berlin), 5:00 p.m., New Berlin, Wis.

• St. Rep. Scott Gunderson (R-Waterford), Noon, Waterford, Wis.

Tuesday, September 30, 2003:

• Democratic Party of Wisconsin (Open House, new headquarters), 5:00 p.m., Madison, Wis.