Wisconsin political news for
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Oct. 1, 2004
The 2004 General
Election (November 2) is now just one month out and both major
political parties in Wisconsin are focusing on the key competitive
races in an effort to shore up or gain additional strength in
their efforts to influence public policy in the months and years
ahead. One can virtually count on two hands the number of state
legislative races that can “go either way.” With the primary past
history, human and financial resources will be focused and
targeted on these “close” or “toss-up” races. (See our
2004 Election Overview, which highlights the targeted races.)
On the federal scene- with
a Wisconsin focus-
the Wisconsin
Supreme Court has reversed a lower court ruling and turned back Democrat
efforts by reinstating Independent Party candidate Ralph Nader to the
November 2nd ballot. Meanwhile, the first Presidential Debate has
taken place and the spin doctors on both sides are telling us why “their
candidate” won.” (It is curious to ponder how many people today watch these
debates with an unbiased, open mind, hoping to be convinced on the issues
and/or candidate.)
This past week has also
seen the unveiling of issues to be addressed during the first 100 days of
the 2005-06 Legislative Session. Assembly Speaker John Gard and new Senate
Majority Leader Scott Fitzgerald on Monday advised colleagues and the public
of key issues to be addressed “out of the box” when the Legislature returns
in January. (See below.)
Stay tuned for continuing
election coverage and updates on developments in key races between now and
November 2.
Policy Developments
100-Day
Legislative Agenda Unveiled
Assembly Speaker John Gard and Senate Majority Leader Scott
Fitzgerald have unveiled a
job-centered legislative agenda for their first 100 days in
session next year. The nine-point plan addresses the following
issues.
1. Freeze property taxes for three years.
2. Tax free health savings accounts.
3. Eliminate the tax in health insurance premiums
4. Regulatory Reform - Job Creation Act Part 2.
5. Research and Development Tax Credit "2020 credit"
6. Expand the health care co-op program
7. Expand workforce training and retraining programs at tech
colleges
8. Rural Finance Authority
9. Uniform Training Standards
Contact a
Hamilton Consulting Group lobbyist for further information on this
important economic development agenda.
PSC Allows SBC Fees Charged
to Competitors to be Increased
On Thursday, September 30, the Wisconsin Public Service Commission (PSC)
gave initial approval to SBC to raise fees it charges to competitors that
lease its lines. Under the Telecommunications Act (1996), SBC is required to
lease out its lines to competitors in exchange for the right to offer long
distance service. The lines in question are typically the so called “last
mile” wire to homes and businesses.
Proponents suggested that
SBC was subsidizing other local telephone companies to its competitive
disadvantage while opponents argued that SBC was fairly compensated and that
the new rates amount to a subsidy for SBC. The PSC portrayed the new rates
as fair and balanced. (Similar decisions have occurred in Michigan,
Illinois, Indiana and California.) The Wisconsin increase is, however,
substantially below what SBC argued was necessary to cover their costs.
The PSC will issue a final,
written order in mid-October when the new rates (estimated to be between 13%
and 20%) will go into effect.
Natural Resources Board
Approves DNR Budget Proposal
At its Sept. 22 meeting in Sturgeon Bay, the Natural Resources Board
approved DNR’s
2005-2007 Biennial Budget request. (76 Pages, PDF) According to DNR Sec.
Hasset, the two-year budget includes an increase of $49.9 million over the
2003-05 Biennial Budget, but with no net increase in the Department’s
complement of 2,824 full time equivalent staff positions.
The Hamilton Consulting
Group’s preliminary review of the 76-page budget document identified no
meaningful increases in industrial fees, such as the air emissions fees used
to fund the Department’s air permit program. (This was a concern in light of
EPA’s Notice of Deficiency relating to the funding of the air permit
program.) However, DNR does have a preliminary proposal that they may
advance with the Legislature, which is not contained in its current budget
proposal, to fund an information technology initiative as part of its
Air Permit Improvement Initiative. The proposal is to use most of the $4
million surplus being generated by air permit construction fees.
Contact Bob Fassbender if you have questions on this initiative.
PSC Finalizes its Strategic
Energy Assessment.
The Public Service Commission of Wisconsin recently released its final
Wisconsin's Strategic Energy Assessment. (219 Pages, PDF;
Executive Summary, 15 Pages) Some
highlights include:
-
Electric
demand
is expected to grow by 2.5 percent (about 375 MW per year or by the
equivalent of about one major power plant every two years)
-
The state’s major utilities and independent power producers
have embarked on a substantial $4.33 billion generation construction
program through the planned construction of over 3,600 MW of new
generating facilities. These projects include:
-
$600 million for the two new WEPCO Port Washington gas-fired
units
-
$2.15 billion for the two new
WEPCO Elm
Road baseload coal units plus new common facilities
-
$800 million for the proposed WPSC Weston 4 baseload coal
unit
-
$490 million for environmental improvements for WEPCO
-
$155 million for Alliant Energy’s purchase of Sheboygan Power
LLC
-
$110 million for MGE’s West Campus Cogeneration Facility
project at the University of Wisconsin-Madison
In a related issue, on Sept. 23,
PSC granted a Certificate of Public Convenience and Necessity on the
application proposed by Wisconsin Public Service Corporation (WPS) to
construct a new coal-fired electric generating facility called Weston Unit
4.
Audit Bureau
Recommendations for Medical Assistance Program
The
Legislative Audit Bureau has completed an evaluation (Executive Summary,
4 pages, PDF;
Full Report, 68 pages, PDF) of
Wisconsin’s
process for determining eligibility for Medical Assistance program benefits.
The Bureau’s recommendations address the need for DHFS to:
-
Report to the Legislature
regarding CARES programming changes that could reduce the possibility of
eligibility determination errors;
-
Make a number of changes
to the mail-in application form to improve its ability to collect complete
and accurate information, and to better inform applicants of their
responsibility to report required changes in their circumstances;
-
Clarify policies
regarding when county eligibility determination workers can request
documentation of income, and grant them greater discretion in requesting
such documentation when they believe it is needed;
-
Revise its program
integrity policies to be consistent with state statutes;
-
Report to the Legislature
regarding its plans to address program integrity needs;
-
Recommend legislation to
revise state statutes to make the circumstances under which benefit
overpayments may be recovered from recipients consistent with the
statutory definition of Medical Assistance fraud.
Clean Air Act Update
The Hamilton Consulting Group is working with Wisconsin Manufacturers &
Commerce (WMC) on its upcoming seminar: Clean Air Act Update 2004 –
Developments Impacting Wisconsin Industry & Communities.
Speakers include Wisconsin
DOJ’s Deputy Attorney General Dan Bach on the AG’s enforcement policies,
including their novel “environmental nuisance” suits being launched in state
and federal courts. (This prospect of being sued for nuisance despite being
in full compliance has caught the eye of industry groups across the
country.)
Other seminar highlights
include:
-
The latest from EPA
Region V Administrator Bharate Mathur on the Bush Administration’s new
Clean Air Act initiatives relating to ozone, mercury, fine particles, and
pollution transport.
-
DNR’s plans to overhaul
its air permitting program and related reform efforts.
-
Industry’s perspective on
how the Job Creation Act will provide real regulatory relief for
Wisconsin’s business community.
-
Updates from state
regulators and industry experts on the implementation of new and expanding
federal and state air programs, including EPA’s and DNR’s New Source
Review programs and Wisconsin’s Implementation of the new 8-hour ozone
standard.
The seminar will be held on
Thursday, October 28, 2004, at the Best Western Midway Hotel in Brookfield,
Wis. Go to WMC’s
Clean Air Act Update web page for further information.
Contact
Hamilton Consulting Group’s Bob Fassbender who will provide an overview
of Wisconsin’s expanded air toxics program and new mercury emissions rule at
the seminar.
Governor Doyle Announces
Emergency Response Appointments
Gov. Doyle recently
announced appointments
to the
Wisconsin Citizen Corps
Council. The
governor signed an
Executive Order
creating the council on Sept. 9, 2004. The council will help train Wisconsin
citizens on how to effectively supplement the state's professional police,
fire, emergency management, public health, and public safety capabilities in
order to build safer communities and help prevent, prepare, and respond to
emergencies at all levels.
Gov. Doyle also
announced
the appointment of Johnnie Lee Smith as the Administrator of Wisconsin
Emergency Management. Smith will be replacing Ed Gleason, who resigned
effective September 1, 2004.
In a related development, Gov. Doyle
announced
that newspaper readers throughout the state will receive a booklet
containing valuable information on emergency preparedness.
Brownfields Grant
Applications Available
DNR recently announced the availability of
Brownfields Site Assessment Grant Applications. The DNR Brownfields Site
Assessment Grant (SAG) program has $1.7 million in available funding to help
local governments jump start environmental activities at brownfields
properties.
DNR notes that the funding
has helped local officials begin investigation and cleanup at 742 acres in
103 communities across the state since 1998. These activities included more
than 340 site assessments and investigations, the removal of 197 underground
storage tanks and the demolition of nearly 261 structures and buildings.
Applications are due Nov. 12, 2004. For more information about the SAG
program, including the new application and revised grant criteria, please
visit the DNR
Remediation and Redevelopment Program.
WISTAX Report Details
Municipal Spending
A
report from the Wisconsin Taxpayers Alliance, "Perspectives on City
Finances," details per-capita growth in operating budgets and capital
spending over a five-year period, as well as growth in general government,
street maintenance and public protection costs in Wisconsin cities with a
population over 10,000.
According to the report,
general government spending rose 24.2 percent in 218 cities and villages
during the period, to $190.5 million. Increases in the other expenditure
categories were: law enforcement (up 23.2%, to $479.0 million);
fire-ambulance spending (20.7%, to $309.2 million); and street maintenance
(12.5%, to $254.1 million). Comparative spending (spending in all four
expenditure categories examined in the study) rose 20.4% from 1998 to 2002,
to $1.23 billion, noted WISTAX.
DPI Budget Proposal Would
Increase
State Spending
A proposed budget released by Wisconsin's top education official would
increase state spending on schools by about $211 million the first year of
the 2005-'07 budget cycle, and by about $165 million the second year.
State Superintendent
Elizabeth Burmaster recently released the
2005-07 Biennial Budget Request, which calls for an average annual
increase of 3.4 percent to fund increased investments in small-class sizes
through the Student Achievement Guarantee in Education (SAGE) program; early
learning through 4-year-old kindergarten; rural schools, libraries, and
communities; programs for English-language learners; special education; and
libraries. The state superintendent’s budget calls for an increase in
overall school aids of 4 percent in the first year and 3 percent in the
second year of the 2005-07 budget.
Tax Climate for Paper
Industries to Improve
A
recent study by the
Department of Revenue
projects that once several recently enacted initiatives are implemented, the
tax climate for paper companies here will dramatically improve.
The new sales tax exemption that becomes effective in
2006 will allow purchases of fuel and electricity used in manufacturing to
be tax exempt at the time of the sale.
Wisconsin will
also begin phasing in the Single Sales Factor Apportionment formula next
year. Together, these initiatives will result in
Wisconsin being
a more favorable destination for businesses, including paper.
Results Encouraging as
Result of 0.08
A
preliminary analysis of Wisconsin crash data conducted by the Wisconsin
Department of Transportation (WisDOT) indicates that alcohol-related
crashes, injuries, and fatalities were significantly reduced in the first
nine months since 0.08 took effect.
Wisconsin
was the 43rd state to enact a 0.08 law. Now, all 50 states have a 0.08 blood
alcohol level for first offense impaired driving. By enacting 0.08,
Wisconsin has received approximately $3.7 million in federal incentive funds
for highway safety programs.
Wisconsin
Politics
Supreme Court
Orders Nader Back on the Ballot
On Thursday, Sept. 30, the Wisconsin Supreme Court heard oral
arguments and acted on the appeal from a circuit court decision
excluding Ralph Nader from the November presidential ballot. The
Supreme Court unanimously overruled the lower court and reinstated
Nader on the November 2 ballot. The state Elections Board had
placed Nader on the ballot, despite an oversight by Nader
supporters to file any signatures from the 7th Congressional
District in northern Wisconsin.
Legislative Committee
Rejects Minimum Wage Increase
In a 6-3 vote, the Legislature's Joint Committee for the Review of
Administrative Rule opposed an increase in the state’s minimum wage from
$5.15 an hour to $5.70 this year and $6.50 in October 2005. Governor
Doyle has been pushing an increase in the minimum wage as part of his
Grow Wisconsin plan.
A task force of business
representatives and lawmakers recommended in March that lawmakers increase
the minimum wage, which, they said, would result in a $175 million annual
increase in business payrolls. The support from the business community for
an increase in the state minimum wage was coupled with support for a
preemption on local government from having separate, different increases in
various communities around the state. The full Legislature must pass a bill
reflecting the committee's denial, but it is expected that Doyle will veto
it, allowing the increases to take effect.
Federal Developments
California
Adopts Rule to Cut Greenhouse Gases From Vehicles
On Sept. 24, the California Air Resources Board adopted the
first-ever rule in the
United States to
limit vehicle-related greenhouse gas emissions, possibly setting
the stage for a legal showdown with the auto industry and with
federal regulators.
Passenger cars and light-duty sport utility vehicles and
trucks built for the 2009 model year and beyond will be the first that must
follow the new standards. Automobile manufacturers will have eight years to
reduce greenhouse gas emissions by nearly 30 percent.
Resolution to Fund Federal
Government Past Elections Passes Congress
Congress this week approved legislation enabling federal departments and
agencies to keep functioning through Nov. 20. With spending authority for
all departments other than the Pentagon expiring at midnight Sept. 30, the
GOP leadership continued department spending to allow Congress to return
after the elections to address 2005 appropriations.
Only one (Defense) of the
13 annual spending bills has been enacted. GOP leaders hope to pass 2005
appropriations for Congress, foreign aid, military construction, and the
departments of Interior and Homeland Security in October.
Most notable is the lack of
movement on the Transportation Budget where House and Senate Republican
leaders have been unable to reach agreement on a new six-year measure
authorizing nearly $300 billion worth of highway and transit programs.
Republican leaders are pessimistic about completing the six-year bill this
year. A six month extension appears to be on the table and gaining support.
Political News
Nader lands back on state's ballot: Wisconsin State Journal,
Oct. 1,
2004.
SBC gets initial OK to raise line-leasing rates: Wisconsin State
Journal, Oct. 1,
2004.
Walker's budget draws criticism from supervisors: Milwaukee Journal
Sentinel, Oct. 1,
2004.
Report: Great Lakes region threatened by storm water pollution:
Milwaukee Journal Sentinel,
Sept. 30, 2004.
Nader turned away again: Milwaukee Journal Sentinel, Sept. 29, 2004.
Shopkeepers wear their politics on their sleeves: Wisconsin State
Journal, Sept. 29, 2004.
Put Nader on the ballot (opinion): Wisconsin State Journal, Sept. 29,
2004.
Poll: Taxes top list of concerns: Manitowoc Herald Times, Sept. 29,
2004.
Health care tops GOP list: Madison Capital Times, Sept. 29, 2004.
County officials should focus on future PCB decisions (opinion):
Appleton Post-Crescent, Sept. 29, 2004.
Spending up in state municipalities: Appleton Post-Crescent, Sept. 28,
2004.
Republican leaders again seek limits on property taxes: Appleton
Post-Crescent, Sept. 28, 2004.
GOP sets 100-day focus on jobs, taxes: Green Bay Press-Gazette, Sept.
28, 2004.
Forum participants warn about job losses to other nations: La Crosse
Tribune, Sept. 29, 2004.
Encourage more regional economic development (opinion): La Crosse
Tribune, Sept. 29, 2004.
Low-wage workers fall victim to politics (opinion): Steven Point
Journal, Sept. 29, 2004.
WEDA conference may have long-lasting benefits for Superior area: Sept.
27, 2004.
County officials should focus on future PCB decisions (opinion):
Appleton Post-Crescent, Sept. 29, 2004.
Fannie Mae agrees to alter accounting, management: Milwaukee Journal
Sentinel, Sept. 28, 2004.
Milwaukee lawyer claims judge wrongly dismissed lead paint suit:
Janesville Gazette, Sept. 28, 2004.
Use fees to limit general tax hikes (opinion): Wisconsin State Journal,
Sept. 26, 2004.
Cost of state computer contracts climbs nearly 900 percent: Janesville
Gazette, Sept. 26, 2004.
President touts his economic, health plans; asks voters for help:
Janesville Gazette, Sept. 25, 2004.
State's tech deals jump almost 900% in 10 years: Milwaukee Journal
Sentinel, Sept. 27, 2004.
Upcoming Fundraisers
For details, go
to
Hamilton Consulting Fundraiser Calendar.
Wednesday, Oct. 6
-
State Senate Democratic
Committee, Madison
-
Rep. John Townsend
(R-Fond du Lac),
Fond du Lac
-
Rep. Debi Towns
(R-Janesville), Whitewater Country Club
Thursday, Oct. 7
-
Brad Pfaff (D) 32nd SD
candidate, Madison
-
Dan Kapanke (R) 32nd SD
candidate, La Crosse
Friday, Oct. 8
Monday, Oct. 11
-
U.S. Rep. Tom Petri (R),
Milwaukee
-
Eric Peterson (R) 16th SD
Candidate, Oregon
Tuesday, Oct. 12
Wednesday, Oct. 13
Thursday, Oct. 14
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