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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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Sept. 16, 2005

The Wisconsin Legislature will meet next week for the first time since passing the state budget in early July. Without the distraction of the State budget, the Legislature is expected to address a wide-ranging list of topics before final adjournment next March. We look forward to spirited debate on many key issues.

As the Legislature returns, a major change is occurring in the Administration with the changing of the guard at the Department of Administration. Marc Moratta, who has been at the Governor’s side for nearly three years, including two major budgets and significant regulatory reform, is departing from the Administration to be replaced by a former cabinet secretary and insurance CEO, Steve Bablitch.

We look forward to sharing the developments and our insights as the process moves forward.

Policy Developments

Fall Session Begins on Sept. 20
Both Houses of the Wisconsin Legislature return to Madison next week. The Assembly calendar for September 20 includes efforts to override five of the Governor’s Medical Assistance vetoes relating to nursing home rate increases; pharmacy reimbursement rates for brand name prescription drugs; pharmacy reimbursement dispensing fees; outpatient hospital reimbursement rates; and, Bariatric surgery prohibition.

Assembly Majority Leader Mike Huebsch announced that the Assembly will have floor sessions on Thursday, September 22 and Tuesday, September 27 in addition to Tuesday, September 20. The legislature will also be meeting the last week of October and the first two weeks of November.

Senate Majority Leader Dale Schultz has highlighted liability reform, healthcare, state contracting and higher education among the issues he expects the Legislature to address over the next few months.

Eminent Domain Bill Introduced; Hearing Scheduled
There has been much discussion and debate in Wisconsin and nationally in the wake of the United States Supreme Court decision in Kelo v. New London. The case, which deals with eminent domain powers, was handed down in June of this year. (Please see July 8 edition of Tidbits for a brief discussion and link to the Court’s opinion.) Earlier this week, AB 657, which prohibits the condemnation of property under certain conditions, was introduced as a result of the Kelo decision. The Assembly Committee on Property Rights and Land management immediately scheduled a public hearing on the bill for 10:00 a.m., next Tuesday, September 21.

The committee will also be hearing AB 656, which allows evidence of business income to be used in determining fair market value of a property acquired by eminent domain even where there is evidence of the sale of comparable property.

Medical Malpractice Task Force Schedules First Working Session
The task force charged with reviewing the recent Wisconsin Supreme Court decision that struck down caps on noneconomic damages in medical malpractice cases will meet on September 29 to begin discussing ideas, recommendations and legislative proposals. The two previous meetings of the task force were devoted to receipt of public testimony from invited speakers in the medical, legal, and insurance industries. The task force is expected to complete its work not later than mid-October.

DNR Study: Ethanol Mandate Increases Ozone Pollution
A new study by the Wisconsin Department of Natural Resources (DNR) has found that mandating ethanol in gasoline will worsen the state’s ozone problem and increase regulatory burdens on businesses. The controversial issue is being debated by lawmakers and others in response to bills (
AB-15/SB-15) that mandate regular 87 octane gas be blended with 10 percent ethanol.

The DNR report states that the ethanol mandate will increase NOx emissions up to 13 tons per day, which according to DNR is equivalent to:

  • Twice as much as the NOx decrease Wisconsin got from its motor vehicle inspection and maintenance program in Southeastern Wisconsin; or

  • About as much NOx emissions as emitted by a 350 Megawatt coal-fired power plant.

In a response to the study, Wisconsin Manufacturer’s and Commerce has emphasized the finding that should an ethanol mandate become law it will impose additional regulatory burdens on Wisconsin business.

Marotta Leaving; Doyle Appoints Steve Bablitch as DOA Secretary
Former Dept. of Corrections Secretary Steve Bablitch will return to state government as Department of Administration Secretary on October 3, when current DOA Secretary Marc Marotta leaves.

Bablitch, former president and chairman of Blue Cross Blue Shield of Wisconsin (Cobalt), served as the first secretary of the state Department of Corrections from 1990 through 1991under then Governor Tommy Thompson. Previously Bablitch served as Deputy District Attorney for Dane when Governor Doyle was the Dane County DA.

Governor Doyle Accepts Report on Homeland Security in Wisconsin
The Wisconsin Homeland Security Council recently completed the 2005 Report detailing ongoing state efforts to improve homeland security measures in Wisconsin. This report outlines some of the many measures that state agencies have enacted to strengthen homeland security efforts, with a focus on:

  • Prevention – identifying and protecting critical infrastructure assets while improving the ability of state and local agencies to gather, analyze, and share information about terrorist activity.

  • Response – recognizing and closing existing gaps in emergency response capabilities as well as ensuring effective coordination of state and local emergency response teams.

  • Recovery – ensuring that the necessary resources are in place to enable an effective recovery from a terrorist attack on the part of both private and public entities.

Governor Doyle received the report from Major General Albert Wilkening, Wisconsin Homeland Security Advisor. Doyle also proclaimed September "Preparedness Month" in Wisconsin.

Federal Judge Dismisses Greenhouse Gas Lawsuit
On Sept. 15, a federal judge dismissed a lawsuit brought by several states and environmental groups aimed at forcing five of the country’s largest power producers to cut carbon dioxide emissions. Peg Lautenschlager, Wisconsin AG, joined her counterparts from six other states in the federal court action.

The court found that the requested relief was “transcendently legislative’ and thus could not be imposed by a court without violating separation of powers and the judicial doctrine that prohibits courts from reviewing non-justiciable political questions. Legislative policies the AGs requested the court decide included determination of proper levels of greenhouse gas emissions, necessary reduction levels for each company and appropriate impacts on U.S. national security and international treaty negotiations, among others.

Minimum Mark-Up Bill Stalls in Committee
The bill to repeal the state's minimum mark-up law on gasoline was defeated (3-2) in the Senate Judiciary, Corrections and Privacy Committee on Tuesday.

The minimum markup law, which has been in place since the 1930s, requires wholesalers to mark up their prices by at least 3 percent and retailers by at least 6 percent. Legislation was introduced earlier this year by two Republican lawmakers to repeal the law and the repeal is supported by Gov. Doyle.

Committee Chair Sen. Dave Zien (R-Eau Claire) and Sen. Carol Roessler (R-Oshkosh) voted in favor of the bill to end the minimum mark-up law. Sens. Glenn Grothman (R-West Bend), Fred Risser (D-Madison) and Lena Taylor (D-Milwaukee) voted against the bill. There may be efforts to determine if there can be a compromise position.

Committee Rejects Seat Belt Primary Enforcement
On September 8, the Assembly Transportation Committee on a vote of 6-7 failed to support legislation to authorize officers to issue tickets for failure to wear seat belts as a primary violation.

Current law allows citations for failure to wear seat belts only after there has been a stop for other alleged infractions.

PSC: Forward Energy Wind Project is Right for Wisconsin/Denies Rehearing
The Public Service Commission of Wisconsin affirmed its July approval of the state’s largest clean energy project when it denied a petition for rehearing of the decision. The PSC outlined the greater environmental benefits to air and water that outweigh concerns regarding its impact on Horicon Marsh.

In denying the petition, the PSC said its order issued July 14, 2005 recognized those concerns and required a larger buffer zone between the wind turbines and the marsh, as proposed by the U.S. Fish and Wildlife Service. The Commission’s decision requires that turbines must be at least two miles away from the Horicon Marsh to protect the wildlife. On average, turbines will be four to 4.5 miles away from the marsh.

Brown to Review Wisconsin’s Disaster Response Preparedness
In an effort to help safeguard Wisconsin from the effects of catastrophic disasters, Sen. Ron Brown (R-Eau Claire) has announced plans to pursue an evaluation of the state’s ability to respond to a major disaster.

Public officials and private sector representatives will be invited to committee hearings to develop practices and procedures for preventive measures that would be needed in an emergency.

Partnership Aims to “Grow Milwaukee”; State to Contribute Funding
Governor Jim Doyle
recently announced that the state will provide $500,000 from the Department of Commerce for the Greater Milwaukee Economic Development partnership. The regional collaboration will bring together public and private sector leaders from seven counties including Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha Counties.

The $12 million, five-year campaign will focus on the attraction and retention of companies creating high-end jobs. The plan was announced September 12 by Milwaukee Mayor Tom Barrett and three dozen civic and political officials.

The initiative was designed by the leadership of the Greater Milwaukee Committee and the Metropolitan Milwaukee Association of Commerce. A 30-member Economic Development Council will oversee and implement plans for the initiative.

Report: Wisconsin Economic Forecast Positive
The general outlook for Wisconsin employment is for continued growth, but at a subdued pace to coincide with population growth.

According to the State of Wisconsin’s Economic Outlook report released last week, total general purpose revenue tax collections for the state fiscal year ending June 30, 2005, totaled $11.4 billion. That represents an increase of 6.6 percent from FY 2004 collections of $10.7 billion.

The report shows that on a per capita basis, real income in the State is forecast to increase by about 2.7 percent this year and by 2.9 percent in 2006. On average, real per capita income growth in Wisconsin is expected to exceed real per capita income growth in the nation by 0.15 percent annually from 2006 to 2010. Employment growth is expected to average 1.2 percent suggesting that productivity, a hallmark of a society’s economic well being, is advancing steadily.

DWD Healthcare Report Released/September is Workforce Development Month
The Department of Workforce (DWD) released the first annual Wisconsin Health Care Workforce Annual Report, coinciding with Gov. Doyle’s proclamation of September as Workforce Development Month in Wisconsin.

According to the Department, the purpose of the report is to illustrate:

  • Expected growth in the health care field and related projections for occupation demand;

  • Graduation numbers for students in key health care fields;

  • Statewide and regional innovative approaches currently being taken to address the shortage; and

  • Focus areas identified by the Select Committee on Health Care Workforce Development.

In Wisconsin, job totals are projected to increase 13.3 percent by 2012, while growth in health care jobs is expected to be 30.3 percent - or more than 10,000 health care jobs annually over the next ten years for both new and replacements jobs. Nationally, the health care industry could add 3.5 million new jobs by 2012, an increase of 30 percent.

Political News

Ethanol rule would harm air, DNR says: Milwaukee Journal Sentinel, Sept. 15, 2005.

GOP lawmakers aim to override 3 vetoes: Milwaukee Journal Sentinel, Sept. 15, 2005.

EPA says no to waiving gas blend requirements: Janesville Gazette, Sept. 15, 2005.

Nursing homes want Medicare funds restored: Racine Journal Times, Sept. 15, 2005.

State leads nation in physician costs: Milwaukee Journal Sentinel, Sept. 15, 2005.

Health costs keep rising: Milwaukee Journal Sentinel, Sept. 15, 2005.

Bush declares refugee emergency, makes aid available in Wis.: Janesville Gazette, Sept. 15, 2005.

Doyle orders disaster plan updated: Madison Capital Times, Sept. 15, 2005.

Former state lawmaker dies at 87: Marshfield News Herald, Sept. 15, 2005.

Milwaukee has no mass evacuation plan, officials say: La Crosse Tribune, Sept. 14, 2005.

Minimum mark-up repeal stalls in committee: Appleton Post-Crescent, Sept. 14, 2005.

GOP will try veto override: Madison Capital Times, Sept. 14, 2005.

Bill would make buying home in state easier: Green Bay Press-Gazette, Sept. 13, 2005.

Red Cross holds training for hurricane-help volunteers: Sheboygan Press, Sept. 11, 2005.

Three now vie for 40th district: Appleton Post-Crescent, Sept. 10, 2005.

Rep. Lehman challenging Sen. Stepp: Racine Journal Times, Sept. 10, 2005.

Lawmaker pushes for suspension of gas tax: Milwaukee Journal Sentinel, Sept. 9, 2005.

Rural Clinics Fear Impact Of Cap: Madison Capital Times, Sept. 9, 2005.

Doyle: EPA ‘dragging feet’ on gas waiver: Appleton Post-Crescent, Sept. 8, 2005.

Gard puts jobs high on election platform: Green Bay Press-Gazette, Sept. 7, 2005.

Gard kicks off campaign today: Appleton Post-Crescent, Sept. 6, 2005.

Cloning, immigration force lawmaker into limelight: Milwaukee Journal Sentinel, Sept. 7, 2005.

Oil Prices: A Sticky Situation: Wisconsin State Journal, Sept. 6, 2005.

The 85% answer: Drivers seek lower fuel costs with ethanol blend: Appleton Post-Crescent, Sept. 5, 2005.

Green asks EPA to waive gas blend requirements: Appleton Post-Crescent, Sept. 5, 2005.

Upcoming Fundraisers

Sept. 16

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

Sept. 17

  • Rep. Joel Kleefisch (R-Okauchee), Okauchee

Sept. 19

  • Sen. Bob Jauch (D-Poplar), Madison

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