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Oct. 17, 2007
The fact that Wisconsin has not enacted a
state budget is not news and the finger-pointing has not ceased. As we have
previously noted, however, the impasse over the state budget should have
come as no surprise to onlookers. The players responsible for crafting the
budget document include a Democrat Governor and State Senate and a
Republican Assembly. “One side” proposed substantial new and increased
funding sources while the “other side” was adamant about resisting tax
increases.
While it is true that a number of contentious
issues have been taken off of the table, significant differences remain. The
public differences regarding the Governor’s Special Session bill focused on
tax issues. Other, less visible, items of difference were also included—or
excluded.
All
parties (Governor, Senate and Assembly) have reopened “lines of
communication” but no formal process has been agreed to although the
Conference Committee remains in place. The Legislature remains in session
until the budget is resolved independent of regularly scheduled sessions
which begin next week.
Policy Developments
Legislature Acts on Special Session Budget
Bill
On October 9, Governor Doyle called
the Legislature to meet in a special session beginning on
Monday, October 15, to consider the state budget.
Doyle proposed a revised budget (SS
SB-1) that was passed by the Senate (18-14),
and later rejected by the Assembly (45-54).
Rep. Brett Davis was the only Republican who voted for the Governor’s bill.
Democrat Reps. Sheldon Wasserman, Bob Zieglebauer and Amy Sue Vruwink voted
against.
The Governor’s bill was
portrayed as a “compromise” budget bill that covered all aspects of the
state budget except transportation. In separate action, the senate
introduced and passed its latest version of the transportation budget (SS
SB-2) on a party line (18-14) vote. The Assembly did not take up the
Senate-sponsored transportation bill.
Assembly Speaker Mike
Huebsch requested signatures for a petition calling for an extraordinary
petition to take up
AB-506,
the school funding bill, and
AB-507,
which funds local government aids. Senate Majority Leader Judy Robson,
however, rejected the GOP call for an extraordinary session.
Speaker Huebsch delivered a
petition signed by 53 Representatives and 15 Senators seeking an
extraordinary session to deal with the school funding and shared revenue
bills. Rep. Bob Ziegelbauer of Manitowoc was the only Democrat to sign it.
Supporters need a majority from both houses to trigger the extraordinary
session and were two lawmakers short in the Senate.
Republicans and Democrats remain divided on major issues, including the
proposed hospital tax, cigarette tax and transfers from the Patient’s
Compensation Fund. They also remain divided on a proposed gross receipts tax
on oil suppliers to fund a portion of the transportation budget.
Federal Magistrate Rules
Minimum Markup Unconstitutional
The State’s
minimum markup law for gasoline
was ruled unconstitutional Friday, with the
court noting that the state’s failure to actively supervise the price
restraint has made the law unenforceable. The court noted that the law
relies on setting a minimum retail price based on a percentage of average
cost, which did not meet the test for active supervision of actual cost.
The court also found that the State’s
failure to actively supervise the minimum markup percentage makes it
deficient in meeting the legal test for exemption from federal anti-trust
laws. The court noted that such failure was evidenced by the fact that the
percentage has remained at 9.18 percent despite substantial changes in
gasoline prices over time.
The Wisconsin minimum
mark-up law, implemented in 1939, was intended to prevent integrated oil
companies from underselling smaller independent service stations and forcing
them out of business by setting a minimum price at which motor fuels must be
sold. According to the law, Wisconsin fuel retailers must charge 9.18
percent of the average posted terminal price in their market area, or 6
percent over actual cost, whichever is greater.
Wisconsin
Politics
Commerce Secretary Resigns
Dept of Commerce Secretary Mary Burke is
leaving Gov.
Doyle’s cabinet to devote more time to non-profit work and
family interests. She is president of the Boys and Girls Club of
Dane County and works with her family’s Trinity Foundation.
Political News
Governor threatens 'partial shutdown': Milwaukee Journal
Sentinel, Oct. 17, 2007. Without new state budget, services
could be cut.
Assembly rejects Doyle’s budget offer: La Crosse Tribune,
Oct. 16, 2007. Higher taxes deal-breaker for GOP.
Markup law ruled invalid: Milwaukee Journal Sentinel, Oct.
16, 2007. U.S. judge assails state statute on minimum gas
prices.
Let retailers discount gas (opinion): Wisconsin State
Journal, Oct. 16, 2007. State leaders should respect the judge
's ruling and stop propping up the price at the pumps.
Democrats pass budget, await Assembly action: Wisconsin State
Journal, Oct. 15, 2007. In a separate 18-14 vote, Democrats also
approved a plan for the state's road fund that included a $233.6 million
tax on oil companies.
Democrats
push Doyle's revised budget through Senate: Milwaukee Journal
Sentinel, Oct. 15, 2007. However, plan still seems doomed in
GOP-controlled Assembly.
Seminar focuses
on open government: Janesville Gazette, Oct. 15, 2007. Persons
interested in learning more about the impacts of three Wisconsin appellate
court decisions on governmental bodies and corporations can attend a free
seminar Tuesday, Oct. 30.
Commerce
official to leave post: Milwaukee Journal Sentinel, Oct. 14, 2007. Burke
had championed lean manufacturing.
Upcoming Fundraisers
Oct. 22
Oct. 30
Nov. 6
For
details, go to
Hamilton Consulting Fundraiser Calendar.
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