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Nov. 19, 2004

Following on the heels of hotly contested elections on the state and national levels, Wisconsin legislators have begun the process of gearing up for the 2005-06 legislative session by designating the persons who will be leading their respective caucuses for the next round of crucial budget and other policy decisions. (See below.) While the Republicans retained control of both houses of the Wisconsin Legislature, new leadership, particularly in the Senate, has emerged, signaling a new style and, perhaps, a slightly altered direction. Speaker John Gard (re-elected by his caucus) and newly elected Senate Majority Leader Dale Schultz wasted no time in designating members of the critical and powerful budget-writing Joint Finance Committee, with a number of new faces, again primarily on the Senate side. (Also, see below.) Other key committee chairs in both houses are expected to be announced soon. 

Meanwhile, the Doyle Administration is busy preparing its proposals for the 2005-07 biennial budget, again facing a deficit, albeit not as large as the one faced by the Governor two years ago in his first budget submission. Much is already being made of various proposals that are being “leaked” to the public. The real debate and discussion will, however, not be fully engaged until the Governor’s budget document is delivered to the Legislature next February. Expect transportation finance, health care, economic development incentives (including job training and retraining) and state and local relationships to be among the key discussion issues. 

(Hamilton's Pat Osborne has written a 2005-2007 Budget Overview that takes a look back at the 2003-05 Biennial Budget and a look forward at the 2005-07 Biennial Budget.)

You’ve heard it before, but 2004 has seen the removal of the curse of the Bambino and whomever the Redskins play in a Presidential Election year. What will 2005 bring? (Are the Cubs—and the Billy goat—paying attention?)

Our wishes to you all for a very Happy Thanksgiving and a great end to a very interesting year.

Policy Developments

TRUST Coalition Launches Campaign
A broad group of transportation stakeholders recently announced a campaign [PDF doc] to ensure that the transportation user fees paid by Wisconsin citizens and businesses are dedicated to maintaining and improving the state’s transportation system.

The TRUST Coalition (Transportation Revenues Used Strictly for Transportation) includes groups such as AAA Wisconsin, Wis. Economic Development Assn., Transportation Development Association, Wis. Laborer’s District Council, Wis. Manufacturers & Commerce, Wis. Motor Carriers Assn., Wis. Transportation Builders Assn., and Wis. Urban and Rural Transit Assn.

Specifically, the group’s mission is to: 1) protect the integrity of the transportation fund; 2) maintain motor fuel tax indexing; and, 3) promote fiscally prudent borrowing for transportation.

In a related matter, the Wisconsin Department of Transportation wants to raise user fees in 2006 and has asked Gov. Doyle to include the increase in his budget proposal for 2005-07. The agency's proposal asks to raise title fees from $35 to $50 and replacement title costs from $8 to $40.The proposed fee increases would not directly help whittle away the general fund deficit as the transportation fund is a segregated fund managed separately from the state's general fund.

Agencies Submit Budget Reduction Recommendations
Earlier this year, the Governor instructed state agencies to develop recommendations for cutting 10 percent of all non-federal administrative operations’ funding from their base budgets.  The 10 percent reduction plans will be considered by the Governor, along with the agency budget requests, in developing his 2005-07 Biennial Budget Bill.  Highlights of selected agency budget reduction plans, which were due November 15th, include the following:

DHFS proposes to cut $22.6 million and reduce 248 positions through a variety of restructuring and streamlining measures.  DOT plans to save $42 million and cut 365 jobs by consolidating regional offices and other restructuring moves.

The University of Wisconsin System submitted a plan to eliminate 167 positions and enroll 1,650 fewer students over the 2005-'07 biennium. Doyle had requested that the University cut its administrative, rather than instructional, staff, and has criticized UW officials, saying that his office and the Legislature are more likely to closely scrutinize the UW budget now than if it had come forward with focusing on administrative cuts.

Testing Shows No Fuel Contamination
An inspection of fuel terminals has shown no evidence of contaminated fuel entering the state. Concerns about the state’s fuel supply arose when the state Commerce Department received more than 600 complaints from motorists with fuel injector problems.

 “Commerce staff has inspected the fuel at all the wholesale terminals serving the Milwaukee area, and it has passed inspection and meets national standards,” Commerce Secretary Cory L. Nettles announced recently. All the fuel tested at the Milwaukee area terminals met these standards. In addition, Commerce tested numerous samples of fuel from gasoline service stations and the gasoline tanks of automobiles waiting repairs for fuel injector problems. None of the samples showed any contamination.

Appeals Court Rules Ameritech Packages Exempt from Price Regulation
On November 18, the District I Court of Appeals overturned the lower court ruling regarding the authority of the PSC to regulate prices for Ameritech's Packages of telephone offerings. In its opinion, the court agreed with Ameritech’s argument that the PSC misinterpreted Wisconsin law and acted beyond its statutory authority by imposing price regulation on its Packages. The court concluded the Packages fall within the definition of “new telecommunications services” because they offer alternative rate structures and expanded services beyond the basic local exchange service in existence since before Dec. 31, 1993.

Wisconsin Politics

Leadership Set for Senate/Assembly
A week after the fall general election, all caucuses met to elect leaders for the upcoming 2005-07 legislative session. The State Senate leadership had the most dramatic change, while the Assembly were less dramatic.

The biggest surprise came when Sen. Dale Schultz (R-Richland Center) defeated interim Senate Majority Leader Scott Fitzgerald (R-Juneau) in a secret ballot vote. Sen. Fitzgerald held the Majority Leader post since former Majority Leader Mary Panzer resigned her post after losing her Senate seat in the September primary election.

Senate Republicans picked up an additional seat in the general election, bringing their majority to 19-14. Schultz has been a member of the Legislature since 1982 when he was elected to the State Assembly. He was elected to the State Senate in a 1991 special election and re-elected ever since.

Sen. Alan Lasee (R-DePere) will serve as Senate President and Sen. Mary Lazich (R-New Berlin) will serve as Assistant Majority Leader.

On the Democratic side of the Senate, Sen. Judy Robson (D-Beloit) will serve as the Senate Minority Leader. She replaces Sen. Jon Erpenbach (D-Middleton) who resigned his leadership post after the general election. Sen. Dave Hansen (D-Green Bay) will serve as Assistant Minority Leader.

In the State Assembly, Speaker John Gard will remain Speaker for the upcoming session. Rep. Mike Huebsch (R-Onalaska) was elected to the second most important position, Majority Leader, replacing the retiring Mickey Foti. Rep. Jeff Fitzgerald (R-Horicon) will serve as Assistant Majority Leader. Democrat Rep. Jim Kreuser (D-Kenosha) will continue as Minority Leader and Rep. Jon Richards (D-Milwaukee) will continue as Assistant Minority Leader.

Joint Finance Appointments
Legislative leaders also announced their appointments for the very sought-after positions on the  influential Joint Finance Committee:

• Senate: Scott Fitzgerald (Co-Chair),  Mary Lazich (Vice Chair), Alberta Darling (R-River Hills), Robert Cowles (R-Green Bay), Joe Leibham (R-Sheboygan), Luther Olsen (R-Berlin), Russ Decker (D-Schofield) Lena Taylor (D-Milwaukee).

• Assembly: Dean Kaufert (Co-Chair) (R-Neenah), David Ward (R-Fort Atkinson), Dan Meyer (R-Eagle River), Kitty Rhoades (R-Hudson), Jeff Stone (R-Greenfield), Scott Jensen (R-Waukesha), Mark Pocan (D-Madison), Pedro Colon (D-Milwaukee).

Political News

Lay everything on table to balance state budget (opinion): Appleton Post-Crescent, Nov. 18, 2004.

Governor blasts UW budget cuts: Milwaukee Journal Sentinel, Nov. 18, 2004.

UW System has brains to weather next round of cuts (opinion): Oshkosh Northwestern, Nov. 18, 2004.

Doyle to unveil biotech initiative: Milwaukee Journal Sentinel, Nov. 17, 2004.

Stem cell leadership (opinion): Milwaukee Journal Sentinel, Nov. 17, 2004.

Agencies offer cuts of $150 million: Milwaukee Journal Sentinel, Nov. 17, 2004.

Barrett forms task force to review election policies: Milwaukee Journal Sentinel, Nov. 17, 2004.

State business taxes below U.S. average: Milwaukee Journal Sentinel, Nov. 16, 2004.

Start-up companies can use help: Appleton Post-Crescent, Nov. 17, 2004.

Few UWSP alumni stay: Stevens Point Journal, Nov. 17, 2004.

Summit emphasizes lessons of regionalism: Appleton Post-Crescent, Nov. 17, 2004.

Company lauds manufacturing efforts in state: Janesville Gazette, Nov. 16, 2004.

Doyle wants to invest $3 million in manufacturing consultants: Janesville Gazette, Nov. 16, 2004.

Median salary for women in Wisconsin $11,400 less than for men, report shows: Milwaukee Journal Sentinel, Nov. 16, 2004.

Coolness could be key to area economy: Green Bay Press-Gazette, Nov. 16, 2004.

Group's goal: Make NE Wisconsin an economic power: Green Bay News-Chronicle, Nov. 15, 2004.

Panel discusses TABOR’S impact: Oshkosh Northwestern, Nov. 16, 2004.

University Leaders Take It To The Bank: Wisconsin State Journal, Nov. 15, 2004.

Proposal cuts 365 DOT jobs: Milwaukee Journal Sentinel, Nov. 15, 2004.

Studies conflict on state contract costs: Milwaukee Journal Sentinel, Nov. 15, 2004.

Consider fee increase (opinion): Milwaukee Journal Sentinel, Nov. 15, 2004.

Keep fund segregated (opinion): Milwaukee Journal Sentinel, Nov. 14, 2004.

Signs up in the air as election passes: Appleton Post-Crescent, Nov. 14, 2004.

Friendship forged control of Senate: Milwaukee Journal Sentinel, Nov. 12, 2004.

Senators pick Schultz as majority leader:  Milwaukee Journal Sentinel, Nov. 10, 2004.

Senators pick Schultz as majority leader: Milwaukee Journal Sentinel, Nov. 10, 2004.

Election results didn’t surprise NBC’s Russert: Appleton Post-Crescent, Nov. 10, 2004.

Political power surge: La Crosse Tribune, Nov. 10, 2004.

Leadership changes in Senate: Appleton Post-Crescent, Nov. 10, 2004.

It's time for state campaign finance reform legislation (opinion): La Crosse Tribune, Nov. 10, 2004.