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Nov. 17, 2006

In 1791, after his reports on public credit, the mint, and the central bank laid the foundation for our economy, Alexander Hamilton submitted his Report on Manufacturers to Congress that set forth his detailed vision of how the government could help invigorate our fledgling manufacturing sector.

In that vein, we are very excited to announce the launching of hamilton.gsp, a joint venture between The Hamilton Consulting Group and GSP Consulting, a national leader in government and economic development consulting. Our goal is to use our combined talents to assure that state and federal resources and policies advance the growth of Wisconsin’s economy.

With the elections behind us, efforts to find a common ground will be a renewed priority. Fostering the success of emerging and established Wisconsin companies should be at the top of everyone’s “must-do” list. Hamilton Consulting has a long history in the Wisconsin economic development arena, while GSP Consulting has a successful track record at the federal level. Together, we will work with our clients and other organizations to grow their enterprises in Wisconsin.

For additional information, go to our web site at: http://www.hamilton-consulting.com/gsp/.

See the following for related news coverage:

Lobbying firms join forces: Milwaukee Journal Sentinel.

Lobbying firms join to pursue fed funds: Madison Capital Times.

New Venture, hamilton.gsp, to Launch in Wisconsin: WisBusiness.com.

New firm to help companies land federal dollars: Wisconsin Technology Network.

While we at Hamilton were busy launching the exciting joint enterprise referenced above, Republicans and Democrats in both Houses of the Wisconsin Legislature began the process of organizing in preparation for the 2007-08 Legislative Session which will begin in January. Unlike the last two sessions where the Republicans controlled both Houses, Wisconsin will have a split Legislature with the Republicans in charge of the Assembly and the Democrats controlling the Senate. This also means that the powerful, budget-writing Joint Committee on Finance will have eight members from each party.

The respective caucuses have designated the leaders for the upcoming session. (Please see below where we have profiled key leaders from both Houses and both parties.) As noted below, the Senate Majority Leader has selected the Senate Co-Chair of Finance while the Speaker has yet to name the Assembly Co-Chair. Other committee chairs and members will be announced at a later date with the Assembly taking longer based on sheer numbers.

Public statements from the designated legislative leaders of both parties contain promises to seek bi-partisan solutions to important issues for the betterment of the state. They are joined by similar comments from Governor Doyle. Obviously, the two parties need to work together on fiscal and other key issues or face gridlock. The two Houses, the two parties and the Governor, who possesses a very powerful veto weapon, will have some real challenges in crafting the next biennial budget as well as addressing nagging health care issues and national reputation concerns regarding tax, litigation and regulatory climate.

In addition to the legislative activity, Wisconsin will elect a Supreme Court Justice in April of 2007 to fill the seat being vacated by Justice Jon Wilcox who is not seeking re-election next year. This is an extremely important, nonpartisan election and will be the first of three Supreme Court elections in three successive years. We will follow these elections very closely in light of significant controversy surrounding several high profile decisions in 2005.

Happy Thanksgiving from all of us at the Hamilton Consulting Group.

Policy Developments

Report: Milwaukee Economic Development Plans Lack Strategy
An analysis by the Public Policy Forum shows that the city of Milwaukee's economic development efforts are unorganized and disjointed. More than $100 million is spent annually in federal, state, and local funds with only one percent of that amount spent on job creation. Milwaukee has been one of the country's biggest job losers from 1990-2005.

The report, titled, "Growing up: Analysis of city of Milwaukee economic development efforts,” listed these key findings:

• The city of Milwaukee government is a major player in the region’s economic development. It invested $413 million in a variety of economic development programs and projects between 2002 and 2005. By comparison, the region-wide Milwaukee 7 effort boasts a $12 million, three-year budget.

• Milwaukee spends little taxpayer money on economic development. In fact, between 2002 and 2005, only 8% of economic development revenue came directly out of general fund tax dollars.

• The city does not have an economic development plan to guide its investment. Not having an economic development plan places Milwaukee out of step with 80% of peer cities around the country and into a select group of rust-belt cities without plans that includes Pittsburgh, Detroit, and Cleveland.

Milwaukee mayor Tom Barrett posted a response to the study, citing efforts by the Milwaukee 7 regional economic development initiative as well as other agencies within the Milwaukee area. Barrett also expects results from a working group that is coming up with a comprehensive strategy to improve workforce development in the region.

Committee Hears Testimony of Disaster Preparedness
At a hearing on Nov. 16, the Special Committee on Disaster Preparedness Planning heard testimony on issues including interoperability of communications equipment, best practices in disaster preparedness, the ability of food to reach markets during disasters, continuity of legislative operations, and liability of responders.

The Legislative Audit Bureau presented its report of best practices related to preparing for and responding to emergencies. Wisconsin’s counties have primary local responsibility for emergency planning and response and for coordinating the emergency management efforts of municipalities within their borders.

DOT Requests Increases in Registration Fees/Driver’s Licenses: Two New Plates
The Wisconsin Department of Transportation (DOT) released its budget request which includes an increase in the annual registration fees from $55 to $80 for cars and a raise in the cost of getting a driver's license from $24 to $34. Truck registration fees also would increase, depending on the size of the vehicle, up to 65 percent. The changes for the cost of a driver’s license are to cover the cost of new federal requirements to make identification cards more secure.

Two new license plates are being issued by the Division of Motor Vehicles; one which will benefit the Wisconsin Women's Health Foundation (WWHF), and another for the WPGA Junior Foundation and the Wisconsin Department of Tourism to promote golf in Wisconsin.

Wisconsin Politics

Leadership Changes in Legislature/Leadership Profiles
Assembly
State Rep. Mike Huebsch (R-Onalaska) has been selected by his Republican colleagues to be the Speaker of the Assembly for the 2007-08 Legislative Session. Huebsch is currently serving as the Assembly Majority Leader. During his 12 years in the State Assembly, Mike has served as Vice Chair of the Joint Committee on Finance (2003), Chair of the Assembly Judiciary Committee (1999) and Chair of the Committee on Children and Families (1997), among other committee assignments. Prior to entering the Legislature, Huebsch held marketing director and legislative assistant positions. He attended Oral Roberts University and has bee active in numerous local organizations.

At the same caucus, Republicans selected Jeff Fitzgerald (R-Horicon) to serve as Assembly Majority Leader. Fitzgerald has been serving as the Assistant Majority Leader during the 2005-06 session. Jeff was first elected to the Assembly in 2000 and currently serves as a member of the Building Commission. He has previously served as Chair of the Committee on State Affairs and as a member of the Financial Institutions and Labor committees. A graduate of UW-Oshkosh, Jeff is a small business owner and a former City Council member in Beaver Dam.

The Assistant Majority Leader will be Mark Gundrum (R-New Berlin) who has been serving as Caucus Chair for the Assembly Republicans. Mark has been a member of the Assembly since 1999 where he has served as Chair of the Assembly Judiciary Committee and as a member of numerous other committees including Criminal Justice and Corrections. Mark has a B.A. from UW-Madison and a J.D. from UW Law School. He has experience as a prosecutor, law clerk for federal judges and maintains an ongoing private law practice. Gundrum is also a captain in the Army Reserve Judge Advocate Generals Corps.

Rep. Mark Gottlieb (R-Port Washington) will serve as Speaker Pro Tem for 2007-08. While the Speaker is the official presiding officer, the Speaker Pro Tem traditionally presides over the majority of Assembly floor action and is responsible for key rulings on parliamentary questions. Gottlieb, currently Caucus Vice Chair, was first elected to the Assembly in 2002 and is a member of the Joint Committee on Finance and the Transportation Projects Commission. A graduate of UW-Milwaukee, Mark is a Vietnam veteran and former Mayor of Port Washington.

The Assembly Democrats voted to maintain their current leadership by selecting Jim Kreuser (D-Kenosha) as the Assembly Minority Leader, the position that he currently holds. As Minority Leader, Kreuser serves on all Assembly leadership committees and on the joint Committee for Employment Relations. Jim is the former Administrative Assistant to the Kenosha County Executive and was first elected to the Assembly in a Special Election in August 1993. Kreuser holds both a B.A. and M.P.A. from UW-Parkside and has served on the Red Cross Executive Board, among other community activities.

Jon Richards (D-Milwaukee) will reprise his role as Assistant Minority Leader. Jon has been the ranking minority member on the Assembly Financial Institutions Committee and is a member of the Special Legislative Council Committee on the Great Lakes Water Resources Compact. Richards holds a B.A. degree from Lawrence and a J.D. from UW Law School He maintains a private law practice in Milwaukee where he concentrates on real estate and business law.

Senate
After capturing the majority, the Senate Democrats have tabbed Judy Robson (D-Beloit) to serve as Senate Majority Leader in 2007-08. Robson, the current Minority Leader, has served in the Senate since 1999 and served in the Assembly from 1987 to 1998. She has, during her 20 years in the Wisconsin Legislature, served on numerous committees, including co-chair of the Joint Committee for Review of Administrative Rules and chair of the Health and Human Services and Aging committees. Judy earned a B.S.N. from St. John’s College, Cleveland, Ohio and a M.S.N. from UW-Madison. She has been involved in clinical nursing and teaching since 1961.

Sen. Dave Hansen (D-Green Bay) will change his title from Assistant Minority Leader to Assistant Majority Leader for the next legislative session. In addition to his leadership position, Dave has served on committees dealing with Labor, Education and Agriculture issues. Hansen, a former grade school teacher, truck driver and union steward, is a graduate of UW-Green Bay. He was first elected to the Senate in 2000.

Sen. Fred Risser (D-Madison), the longest serving member of the Wisconsin State Legislature, will once again preside over the body as Senate President. Fred has served in the State Legislature since 1956. He served in the Assembly from 1956 to 1962 and has been in the Senate ever since. In addition to several stints as Senate president, Risser has served as both Majority and Minority Leader and as a member and chair of numerous committees. He is very much associated with the Building Commission where he served several terms as Vice Chair to the Governor. Fred holds a B.A. and L.L.B. from the University of Oregon and continues to practice law in Madison. He is a World War II veteran.

Majority Leader Judy Robson has selected Russ Decker (D-Schofield) to serve as Senate Co-Chair of the powerful Joint Committee on Finance. Decker is currently serving as a minority member of Joint Finance and has been a member since 1995. He also serves on the Joint Audit and Economic Development Committees. Russ is a graduate of Northcentral Technical College; is a journeyman bricklayer and has been active in labor unions. He was first elected to the Senate in 1990 and currently serves as a member of the Rural Economic Development Board.

The Senate Republican Caucus has designated Scott Fitzgerald (R-Juneau) to lead the Senate Republicans as Minority Leader. Fitzgerald, the current co-chair of the Joint Committee on Finance, was also Majority Leader from Sept. 17 to Nov. 10, 2004 and currently chairs the Special Committee studying open meetings laws  and the applicability to quasi-governmental bodies. A former associate newspaper publisher, Scott received a B.S. degree from UW-Oshkosh. He is active in the U.S. Army Reserve with the rank of Lt. Colonel and is a former member of the Board of Forward Wisconsin. Scott was first elected to the Senate in 1994.

Sen. Joe Leibham (R-Sheboygan) will serve as the Assistant Minority Leader in the upcoming session. Leibham currently serves as a member of the Joint Committee on Finance, Higher Education & Tourism Committee and the Transportation Projects Commission. A former account executive and Chamber manager, Joe received a B.A. from UW-Madison after attending college in La Crosse and London, England. He was elected to the Senate in 2002 after serving in the Assembly for four years and on the Sheboygan City Council for eight years.

Federal Developments

Hoyer Floor Leader/Kagen Seeking Committee Assignments
House Democrats have chosen Minority Leader Hoyer as their majority floor leader for the 110th Congress. Hoyer defeated Rep. John Murtha of Pennsylvania by a 149-86 vote. He will continue as the second-ranking Democrat to House Speaker-designate Pelosi, whose elevation from minority leader also was confirmed at the Democratic Caucus meeting. Ironically, Pelosi, who was unanimously endorsed by her caucus, supported Murtha who was soundly rejected by the same caucus.

Rep.-elect Steve Kagen has said he hopes to be assigned to the House agriculture, education and transportation committees. Kagen, a Wisconsin Democrat, defeated Republican state Rep. John Gard in the 8th Congressional District race.

Wisconsin & the U.S. Presidency - Russ is Out; Is Tommy In?
Wisconsin Senator Russ Feingold spent many months showing up in places like New Hampshire and Iowa and sounding very much like a serious candidate for the Democratic nomination for President in 2008. Feingold announced last weekend, however, that the “timing was not right” and that he would not seek the nomination in 2008.

In the meantime, Tommy Thompson, who served as Wisconsin’s Governor for 14 years before accepting an appointment as U.S. Secretary of the Department of Health and Human Services in 2001, has announced his intention to form an exploratory committee for the U.S. Presidency. Governor Thompson cited advantages in healthcare and welfare reform that he believes gives him an edge over his primary GOP rivals.

Political News

State's Democrats reap rewards of big turnout of young voters: Milwaukee Journal Sentinel, Nov. 17, 2006.

Let’s have a productive and bipartisan legislative session (opinion):  La Crosse Tribune, Nov. 17, 2006.

DOT proposes budget with hefty fee hikes (opinion): Racine Journal Times, Nov. 17, 2006.

Reject fat fee hike on cars (opinion): Wisconsin State Journal, Nov. 16, 2006.

DOT seeks 46% boost in car fee: Milwaukee Journal Sentinel, Nov. 16, 2006.

DOT seeks big increase in auto fees: Madison Capital Times, Nov. 16, 2006.

County Board overrides budget veto: Milwaukee Journal Sentinel, Nov. 16, 2006.

Bankers fear Doyle cold shoulder: Milwaukee Journal Sentinel, Nov. 16, 2006.

Changes coming for Kapanke, Shilling: La Crosse Tribune, Nov. 16, 2006.

Pundit analyzes election results in Wisconsin and Minnesota: La Crosse Tribune, Nov. 16, 2006.

Falk’s flop lets GOP live to fight another day: Lakeland Times, Nov. 16, 2006.

Former Wisconsin gov to form presidential exploratory committee: Janesville Gazette, Nov. 16, 2006.

Understanding the election results (opinion): Rhinelander Daily News, Nov. 15, 2006.

Assembly Republicans pick Huebsch, Fitzgerald: Milwaukee Journal Sentinel, Nov. 15, 2006.

Weston senator gains seat of power: Wausau Daily Herald, Nov. 15, 2006.

Kagen getting a feel for Washington: Green Bay Press-Gazette, NOv. 15, 2006.

Doyle will make nice with Republicans: Manitowoc Herald Times, Nov. 15, 2006.

Economic report stings city leaders: Milwaukee Journal Sentinel, Nov. 15, 2006.

Kagen zeroes in on his objectives: Milwaukee Journal Sentinel, Nov. 15, 2006.

Lobbying firms join forces: Milwaukee Journal Sentinel, Nov. 15, 2006.

Feingold won't run for president in 2008: Appleton Post-Crescent, Nov. 12, 2006.

Kagen set to push his plan in D.C.: Appleton Post-Crescent, Nov. 12, 2006.

Study slams city job efforts: Milwaukee Journal Sentinel, Nov. 12, 2006.

Voters want compromise, substantive governance (opinion): Wausau Daily Herald, Nov. 12, 2006.

Robson to lead new Senate majority: Milwaukee Journal Sentinel, Nov. 10, 2006.

Govern from the middle, please (opinion): Wisconsin State Journal, Nov. 10, 2006.

Upcoming Fundraisers

There are no fundraisers scheduled at this time.

For details, go to Hamilton Consulting Fundraiser Calendar.