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Sept. 27, 2006
In addition to
being election season, Wisconsin state agencies have been
submitting their respective budgetary requests to the state budget
office for consideration for inclusion in the 2007-09 proposed
State Budget. Never unusual, and certainly not in an election
year, agencies have been directed to keep their requests on the
“lean” side.
A research study
released earlier this week (see below) by the Wisconsin Economic Development
Association (WEDA) reaffirms concerns surrounding the “hits” that our
state’s reputation has taken over the last 15 months for an unfavorable
litigation climate. The study also examines studies and statistics regarding
the costs associated with the current tort system in the state and
nationally. The United States has the most expensive tort system in the
world and the “tort tax” is estimated to be $1,000 person in 2006. Among
other things, the study points out that while other states are adopting
legal reforms, Wisconsin’s previously favorable system has been dismantled
by court decisions and vetoes.
We offer our condolences
to the family of former State Rep. Dave Brandemuehl who died earlier this
week. Dave
Brandemuehl was a steady and steadying member of the Wisconsin State
Assembly who earned the respect and admiration of members of both parties,
agency representatives, the media and the lobbying corps.
Policy Developments
Study Confirms
Falling Economic Development Climate Based on
“Litigation Atmosphere”
According to a recently released Wisconsin study
[Full study, PDF], numerous national studies have confirmed a
significant drop in Wisconsin's overall economic development
climate ratings. In an annual ranking by the U.S. Chamber’s
Institute for Legal Reform (Harris Poll), Wisconsin’s “litigation
atmosphere” rank has fallen during a three-year period from 10th
to 23rd. Another study commissioned by the National
Association of Manufacturers ranks Wisconsin 30th.
Meanwhile, the Wall
Street Journal noted several 2005 Wisconsin Supreme Court cases
and vetoes of the subsequent legislative corrective action attempts,
as contributing factors for these negative rankings. Recently, Forbes
Magazine, reporting on the "Best States to do Business," ranks Wisconsin
42nd in Regulatory Environment, including tort climate.
The study (The
Growing Threat to Economic Development: Wisconsin’s Immediate and Critical
Need for Legal Reform), conducted by the Wisconsin Economic Development
Institute (WEDI), examined the role of legal reform in economic development.
Among its evaluations, the research concludes that the civil justice system
is not working and it is exposing existing Wisconsin employers and
prospective new businesses to unwarranted risk, thus hindering new capital
investment and employment retention/expansion efforts.
The research study was
commissioned by the Wisconsin Economic Development
Association (WEDA).
Governor Proposes $450
Million Public, Private Investment Strategy to Develop Renewable Energy
Governor Doyle issued a
press release on Monday outlining a package of incentives to promote
renewable energy. The proposal calls for spending $80 million in state funds
on various strategies to leverage private sector investment. The plan
includes:
-
$50 million in loan
guarantees and low interest loans to Wisconsin businesses to expand
production and use of renewable fuels and energy.
-
Tax credits for gas
stations to put in E-85 and biodiesel tanks and pumps - and for private
fleets for increasing the use of biofuels.
-
$20 million in grants
for development of new renewable fuel and energy technologies - including
a $5 million grant earmarked for cellulosis ethanol production.
Requested Increases in
Major GPR Programs Highlight Budget Demands
Agency budget
requests, due to the Department of Administration September 15th, are now
being reviewed by DOA budget analysts for recommendation and possible
inclusion in the 2007-09 biennial state budget bill. The agency requests
provide the framework for building the next state budget, but still to come
are agency spending reduction proposals (due to DOA by mid-November) and
gubernatorial initiatives.
An overview of major
general purpose revenue (GPR) spending requests includes the following:
-
DPI - Requests an
additional $662 million GPR; including $422 million in general
equalization aids to fund approximately 2/3 of school funding. ($10.368
billion appropriated in 2005-07 for K-12 school aids)
-
DHFS - Requests an
additional $343 million GPR over the biennium for increasing costs of
Medicaid ($305 million) BadgerCare ($16.6 million) and SeniorCare ($21.3
million). ($3.077 billion appropriated in 2005-07)
-
UW System - Requests
an additional $85 million GPR to go along with an additional $35 million
in tuition fee increases for a total GPR/Fee request of $120 million.
($1.899 billion GPR appropriated in 2005-07)
-
Corrections - Requests
an additional $247 million GPR (13.2% increase) to meet current operations
and commitments; including the addition of 311 positions by the end of the
biennium. ($1.56 billion appropriated for correctional operations in
2005-07)
In total, these four
agency requests alone, represent a GPR increase of $1.337 billion over the
current budget. They also represent four of the five largest GPR expenditure
areas and highlight increases in programs that currently comprise 65 percent
of the total $26.126 billion spent on GPR programs in 2005-07. Not listed
among the top five is the shared revenue program, which is currently funded
at $1.9 billion GPR over the 2005-07 biennium.
Wisconsin
Politics
Green to Seek Supreme
Court Review
A Dane County Judge on Monday denied Cong. Mark Green's motion for a
temporary injunction in the State Elections Board campaign fund transfer
case. The Green campaign is placing the money in question into a separate
account while it appeals the ruling to get clarity on an issue that it
believes has seen the rules change after 29 years. Justice Department
lawyers said Monday that they might join Green in asking for a speedy
decision by the Supreme Court.
Former State
Representative Brandemuehl Has Died
Former State Representative Dave Brandemuehl died Tuesday morning of this
week of an apparent heart attack. Brandemuehl , from Fennimore served in
the Assembly from 1997until 2000. He chaired the Highways and
Transportation committee, and spent his entire tenure serving on various
Highway or Transportation committees.
Political News
Gap narrows in race between Doyle, Green: Green Bay Press-Gazette,
Sept. 27, 2006.
$5.4
million in political spending tied to Indian tribes: Milwaukee
Journal Sentinel, Sept. 27, 2006.
Green plans
appeal: Milwaukee Journal Sentinel, Sept. 26, 2006.
Residents
feel better about state, poll says: Milwaukee Journal Sentinel,
Sept. 27, 2006.
Study: state's economy needs tort reform: Wisconsin Radio Network,
Sept. 26, 2006.
Doyle
promises state funds to boost biofuels: Milwaukee Journal Sentinel,
Sept. 26, 2006.
Gard, Kagen defend plans for tax relief: Appleton Post-Crescent,
Sept. 25, 2006. Taxpayer advocate: Ideas will be politically popular.
Cheney: Keep national security issues in mind in November: Manitowoc
Herald Times, Sept. 25, 2006.
nvestors
may want to look overseas: Milwaukee Journal Sentinel, Sept. 25,
2006.
Another
tool in the box (opinion): Milwaukee Journal Sentinel, Sept. 25,
2006.
Legislature, DNR tangle over power: Milwaukee Journal Sentinel,
Sept. 25, 2006.
Doyle to announce plan to invest $80 million in renewable energy:
Janesville Gazette, Sept. 25, 2006.
Is it time
to lift the nuclear ban? Milwaukee Journal Sentinel, Sept. 24, 2006.
Elections officials work to adapt to poll changes: Marshfield News
Herald, Sept. 24, 2006.
Doyle team estimates Green cuts: Wisconsin State Journal, Sept. 24,
2006.
State candidates: time to respond to central Wis. agenda (opinion):
Marshfield News Herald, Sept. 24, 2006.
Bush
numbers on rise in state: Milwaukee Journal Sentinel, Sept. 24,
2006.
Economic development agencies launch incubator project: Oshkosh
Northwestern, Sept. 23, 2006.
Jobless
rate hits 5-year low: Milwaukee Journal Sentinel, Sept. 21, 2006.
Kimberly-Clark cutting 350 more Neenah jobs: Milwaukee Journal
Sentinel, Sept. 21, 2006.
Metro area jobless rate drops to 4.1 percent: Green Bay
Press-Gazette, Sept. 21, 2006.
Doyle
lawyer urged sanction: Milwaukee Journal Sentinel, Sept. 21, 2006.
House
passes voter ID bill: Milwaukee Journal Sentinel, Sept. 21, 2006.
Upcoming Fundraisers
Oct. 2
Oct. 3
Oct. 5
-
Rep. Phil Montgomery (R-Green Bay),
Green Bay
-
Sen. Alan Lasee (R-DePere), Appleton
Oct. 7
Oct. 9
Oct. 10
Oct. 11
-
Sen. Ted Kanavas (R-Brookfield), Elm
Grove
-
Bill "Mac" Reynolds (R) 21st SD,
Franksville
Oct. 12
Oct. 14
For
details, go to
Hamilton Consulting Fundraiser Calendar.
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