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Sept. 19, 2003
The fall floor
period, which has been eagerly anticipated with its promise to
address issues related to job creation and economic development,
and aimed at helping to jumpstart the Wisconsin economy, begins
next week. We expect the session to start somewhat slowly as fine
tuning, finishing touches and substantive negotiations on major
proposals continue. Major changes are often much more complicated
in the fine details than in the conceptual presentation. The
Legislature and the Administration appear, however, not to be
shying away from tackling major initiatives including regulatory
reform, capital investment, Tax Incremental Financing, civil
justice and various incentives (including tax credits) for
business development and job creation. We eagerly await the debate
and resolution of these important issues.
Wisconsin Politics
Doyle Speaks at
First “Building the New Wisconsin Economy” Forum
On September 16, Governor Doyle spoke at a public forum sponsored
by Building the New Wisconsin Economy (BNWE), a group of
representatives from Wisconsin’s news media, economic development,
academic, business, and labor communities committed to keeping
citizens informed on upcoming economy-building initiatives and
provoking citizen discussions on the state’s economy. September 16
marked BNWE’s first forum, one of seven forums BNWE plans to hold
over the next 15 months. (For more on BNWE’s schedule and
activities, including a membership list, go to its
website.)
At the forum, Gov. Doyle
announced his commitment to improve the state’s economy, and
called on legislators to work with him to implement his
Grow Wisconsin initiative (the Gov.’s economic development package
announced last week) as soon as possible.
DNR Names Shea New Air and
Waste Administrator
On September 15, Department of Natural Resources (DNR) Secretary Scott
Hassett appointed Al Shea as Administrator of the Department’s Air and Waste
Division. Shea replaces Jay Hochmuth, who has been reassigned within the
Department. Shea has worked for the DNR since 1984, where he has been
director of the Bureau of Watershed Management for the past six years.
In his new position, Shea
will oversee the activities of more than 400 employees in three programs:
Air Management, which is responsible for air quality and air emissions
permitting; Waste Management, which handles disposal of solid and hazardous
wastes; and Remediation and Redevelopment, which oversees the cleanup and
beneficial re-use of contaminated land. Shea will begin his new duties on
September 22, 2003.
George Recall Date Set
On Wednesday, September 10, Dane County judge Maryann Sumi handed down a
ruling in state Sen. Gary George’s (D-Milwaukee) appeal of the state
Elections Board’s decision to allow a recall election. Judge Sumi found that
the Elections Board did not err in its decision to allow the recall
election. The judge ruled that the Committee to Recall Gary George did not
violate any state laws, contrary to Sen. George’s allegations, in
circulating the petition that began the recall effort.
On September 12, the
Elections Board set the dates for the special election: October 21, 2003 for
the primary, and November 18 for the general election. Initially, two
candidates had registered to run against George, state Rep. G. Spencer Coggs
(D-Milwaukee), and former state Sen. Monroe Swan (D-Milwaukee). On September
11, however, the Elections Board ruled that Swan was ineligible to run due
to a 1980 felony conviction for embezzlement of federal funds. Since both
candidates are Democrats, a primary will still be held in addition to the
general election, to allow for any potential write-in candidates.
Supreme Court Accepts
Challenge to Doyle’s Gaming Compacts
On September 12, the Wisconsin Supreme Court issued an
order accepting original jurisdiction over Mary E. Panzer, et.
al. v. James E. Doyle (case No. 03-0910-OA), the Senate Republicans’
lawsuit against Governor Doyle. The lawsuit alleges that Doyle’s
negotiations of Indian gaming compacts, pursuant to the Indian Gaming
Regulatory Act, 25 U.S.C., Sec. 2701-02, was in violation of the Wisconsin
Constitution.
The Court ordered
petitioners to file a brief within 40 days, with a response due date for
respondents 35 days after that; additionally, the Court stated there would
be no time extensions.
Policy Developments
WMC Report Finds
Natural Gas Reliance Harmful to Economy
On September 16, the
Wisconsin Manufacturers and Commerce Association (WMC)
announced results of its study – “Implications
for Wisconsin Manufacturing Industries of the Increasing Use of Natural Gas
for Electricity Generation in the State.” The study found that the
expense of using natural gas for electricity generation, as opponents to We
Energies’ Oak Creek plant proposal suggest, is substantially higher than the
cost of coal generated electricity. The added costs, says WMC, would
negatively affect the state’s economy by driving up gas prices, and possibly
forcing layoffs by creating higher employer costs due to the more expensive
energy.
Key points of WMC’s
findings include:
-
If natural gas is
required, by 2020 the Oak Creek power plants would drive up natural gas
prices in Wisconsin
for industrial customers by 30 to 35 percent;
-
If natural gas is
required, by 2020 the Oak Creek power plants would provide energy that is
25 percent more expensive than coal-fired plants;
-
Fueling the proposed
Oak Creek plants with natural gas instead of coal would require
approximately the amount of natural gas used annually by all of the homes
in Wisconsin.
Wisconsin Cooperative Health Care Purchasing
Alliance
Project
On September 16, the Senate Committee on Health, Children, Families, Aging
and Long Term Care held a public hearing on
SB 204, relating to creation of the Wisconsin Cooperative Health Care
Purchasing Alliance Project. The bill would authorize a pilot program of
five health benefits purchasing cooperatives, located throughout the state,
which would provide health care benefits to employees, members, and officers
of the members of each cooperative and to their dependents through a
three-year contract with a defined network plan. The health insurance risk
of all cooperative members would be pooled, the members would design the
health care benefits options offered, and the members would purchase their
health care benefits from a defined network, although the plan would include
provisions detailing how health care benefits received outside of the
network would be dealt with.
Bill Would Lift Ban on
Nuclear Power Plants in Wisconsin
On September 17, state Rep. Mike Huebsch (R-West Salem),
announced his plan to introduce a bill that would lift
Wisconsin’s twenty-year ban on construction of new nuclear power plants.
Under current law, the Public Service Commission (PSC) requires that
additional measures, beyond those required for other energy plant proposals,
be taken by applicants for a nuclear plant construction permit.
Two major requirements
that these applicants must meet are showing that a nearby nuclear waste
disposal site is available, and that building the plant will save ratepayers
money. Huebsch’s proposed bill would eliminate these requirements, putting
nuclear power plants on equal footing with other power plants, in order to
pave the way for considering nuclear energy as an alternative power source
for filling the state’s future energy needs.
Federal
Developments
Even After
State Farm, Punitive Damages Limits Still Up in the Air
In April 2003, the United States Supreme Court ruled in State
Farm v. Campbell that excessive punitive damages awards
violated the Constitution’s guarantee of due process. The Court
defined “excessive” as punitive damages measured above a 9-1 ratio
to compensatory (or “actual”) damages. Since that ruling, however,
several plaintiff lawyers and courts have argued toward creative
new ways to measure compensatory damages, trying to, and in some
cases, succeeding in upping the limit of actual damages in order
to comply with the ruling providing for a cap on punitive damages
based on their multiplication of compensatory damages.
In one instance, merely one
month after State Farm, the Wisconsin Supreme Court accepted an
argument that the insurance claim of $490,000 for costs related to an
insured’s automobile accident constituted compensatory damages, which could
then be multiplied up to nine times by the jury in deciding upon an
allowable punitive damages amount. Civil justice reform advocates are
examining options under both federal and state laws.
Senate Defies FCC Plan to
Help Big Media Grow Bigger
On September 16, the Republican-controlled Senate approved a resolution to
repeal all of the Federal Communications Commission’s (FCC) new rules that
would open the door to more intensive ownership by the nation’s largest
media corporations. (The new rules, allowing one media company to own both a
newspaper and a television station in the same city, have prompted concern
about diversity of news reporting among those opposed to the rules.) By a
vote of 55-40, the Senate voted to vacate the controversial new rules before
they are scheduled to take effect. Senate Democrats were joined by 12
Republicans and one Independent in voting for the resolution. (Two Democrats
and 38 Republicans voted against.)
The resolution will now go
to the House for approval. Although it remains unclear whether the House
will approve the resolution, even if it does pass both houses, the
resolution will have to avoid a Presidential veto before it would become
effective; President Bush has already threatened to veto the resolution,
should it come to him.
The resolution, called a
resolution of disapproval, is the product of a little known legislative
power to overturn the actions of regulators under the Congressional Review
Act, passed in 1996. (The Act has only been used once before, in 2001, to
override the Occupational Safety and Health Administration’s (OSHA)
ergonomics rules developed during the Clinton Administration.) If the
resolution is passed, the FCC will be prevented, under the Act, from
reissuing any rules of substantially the same character.
Political News
Small business is vital to economy (opinion): Wisconsin Rapids Daily
Tribune, Sept. 19, 2003.
State jobless rate rose slightly in August: Manitowoc Herald Times,
Sept. 19, 2003.
Many counties will take W-2 cuts: La Crosse Tribune, Sept. 19, 2003.
Racine testifies on coal (opinion): Racine Journal Times, Sept. 19,
2003.
Hundreds
show up for public hearings on proposed power plants: Janesville
Gazette, Sept. 19, 2003.
Hearings
fire up coal plant passions: Milwaukee Journal Sentinel, Sept. 18,
2003.
Workers rally to back coal-fired plants: St. Paul Pioneer Press,
Sept. 19, 2003.
Huebsch
wants to jump-start nuclear power plants in state: Janesville
Gazette, Sept. 18, 2003.
Governor, leaders bullish on state economy’s future: Green Bay Press
Gazette, Sept. 17, 2003.
Economic forum plans for future: Marshfield News Herald, Sept. 17,
2003.
Study assails gas-fired plant plan: Wisconsin State Journal, Sept.
17, 2003.
Lawmaker
wants to lift ban on nuclear plants: Milwaukee Journal Sentinel,
Sept. 17, 2003.
Power line
incentive urged: Milwaukee Journal Sentinel, Sept. 17, 2003.
Briggs
warns of 22,000 lost jobs: Milwaukee Journal Sentinel, Sept. 17,
2003.
State files pollution lawsuit against Kewaunee Co.: Green Bay
Press-Gazette, Sept. 16, 2003.
This
revision needs revision (opinion): Milwaukee Journal Sentinel, Sept.
16, 2003.
Hiring
revival possible, poll says: Milwaukee Journal Sentinel, Sept. 16,
2003.
Economic forum series opens here: Wausau Daily Herald, Sept. 16,
2003.
At last, state seeks regulatory reform (opinion): Wisconsin State
Journal, Sept. 16, 2003.
Timing poor to suggest higher minimum wage (opinion): Oshkosh
Northwestern, Sept. 16, 2003.
Doyle asks for county unity: La Crosse Tribune, Sept. 16, 2003.
Prison plan could spare taxpayers: Oshkosh Northwestern, Sept. 16,
2003.
Bill would
help county boards downsize: Milwaukee Journal Sentinel, Sept. 16,
2003.
Analysis:
Corporate income taxes down over last decade: Janesville Gazette,
Sept. 15, 2003.
Study: Increasing minimum wage would help 130,400: Appleton
Post-Crescent, Sept. 15, 2003.
Jobs
plan has merit (opinion): Madison Capital Times, Sept. 15, 2003.
Wisconsin’s economy needs regulatory reform (commentary): Oshkosh
Northwestern, Sept. 14, 2003.
Small business is vital to economic plan (opinion): Wisconsin
Rapids, Daily Tribune, Sept. 14, 2003.
Upcoming
Fundraisers
Saturday, September 20, 2003:
Monday, September 22, 2003:
-
State Rep. Scott
Gunderson (R-Waterford), 4:30 p.m., Waterford, Wis.
-
State Rep. Mark Gundrum
(R-New Berlin),
5:00 p.m., New Berlin, Wis.
Friday, October 3, 2003:
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