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Dec. 15, 2006

Legislative leaders have been busy formulating their respective committee structures for the upcoming 2007 legislative session. Assembly Speaker-designate Mike Huebsch (R-West Salem) and Senate Majority Leader-designate Judy Robson (D-Beloit) have announced (see below) both the committee makeup and the committee chairs. Full membership of all committees has not been completed but will be announced soon.

These same leaders joined Gov. Jim Doyle in announcing a significant bipartisan ethics reform proposal to create an oversight board (Government Accountability Board) that would be composed of retired judges and would replace the current Ethics and Elections Boards that are composed of political appointments. The new Board will have increased authority and autonomy.

Many Capitol observers have praised the move not only for its merits but also as a sign that efforts will be made to develop a positive working relationship between the two parties and between the Legislature and the Governor. While Republicans retained control of the Assembly, Democrats have assumed control of the Senate and Governor Doyle, a Democrat, will be starting his second four-year term.

Policy Developments

DATCP Board sends Price Control Rule to Hearings
2005 Wis. Act 450 prohibits excessive pricing of consumer goods during times of abnormal economic disruption. The Department of Agriculture, Trade and Consumer Protection (DATCP) is required to promulgate rules to establish formulas or other standards to be used in determining whether a wholesale or retail price is “unreasonably excessive.”

On Dec. 13, DATCP’s governing board, the Wisconsin Board of Agriculture, Trade and Consumer Protection, approved staff’s request to send its draft Act 450 rule out for public comments. A coalition of industry groups expressed reservations on the rule in testimony before the Board, including concerns over its broad scope. Wisconsin Manufacturers & Commerce’s Jeff Schoepke and Hamilton Consulting’s Bob Fassbender addressed the Board on behalf of the group.

See Hamilton Consulting’s Act 450 Summary or contact Bob Fassbender at Hamilton Consulting for further information.

Bipartisan Ethics Reform Agreement
Governor Doyle and legislative leaders from both houses and both parties have announced an agreement to create a non-partisan Government Accountability Board which will replace both the State Elections Board and the State Ethics Board. Six retired judges will serve on the Board and be selected by the Governor with the approval of the Legislature. The current boards are filled by politicians and political parties.

The new Board will oversee the Division of Ethics and Integrity and the Division of Elections. The Board will have the authority to “prosecute” civil matters but will be required to refer criminal matters that it investigates to the local district attorney and Attorney General.

Please see the press release for statements by the Governor and legislative leaders and additional information about the proposed new Board. The Governor will call a Special Session in early January for the Legislature to act on the bill.

Committee Hearings
Senate Select Committee on Road to the Future
The Joint Legislative Committee on Transportation Needs and Financing (Road to the Future Committee) began deliberations this week on the financing aspect of its study. Committee Chair, Rep. Mark Gottlieb, said, however, that the committee will suggest possible new revenue streams but will not make specific revenue raising recommendations. A 37-page report prepared for the committee by the Legislative Fiscal Bureau outlines various financing proposals.

Members of the transportation industry testified that increasing taxes or fees would not be acceptable unless there were guarantees the money would be used for transportation projects. After legislative adoption of the current budget, Gov. Doyle made transfers from the transportation fund to cover education spending.

Gottlieb said that he expects that a constitutional amendment will be introduced that would prohibit transfers out of the segregated transportation fund. He expressed concern that a statutory prohibition could “be gotten around.”

The Committee on Transportation Needs and Financing, also known as the Road to the Future Committee, was formed earlier this year to find ways to save money on highways and transit projects and to come up with new ways to fund them.

The committee will meet again on Dec. 21 at which time it will review and accept the final report.

Special Committee on Disaster Preparedness Planning
Members of the Disaster Preparedness Planning committee heard testimony at a hearing this week on issues including unemployment compensation, business preparedness, and school preparedness.

Special committee on Applicability of Open Meetings Law to Quasi-Governmental Bodies
The Special Legislative Council Committee is considering recommending to lawmakers that certain economic development corporations be exempt from some open meetings laws. Economic development corporations with less than 50 percent of their funding coming from public sources and with fewer than half of their members being public officials would be exempt under new legislation.

The committee is expected to recommend legislation relating to economic development corporations at its next meeting in early January to be introduced in the upcoming session. The committee will not address the entire universe of quasi-governmental bodies at this time.

U.S. Supreme Court Hears Climate Change Arguments
On Nov. 29, the U.S. Supreme Court began hearing oral argument for a case over whether the federal government is required to regulate carbon dioxide and other greenhouse gas emissions from motor vehicles. The case is Massachusetts vs. EPA, and was initiated in 1999 when environmentalists filed a petition with the US. Environmental Protection Agency (EPA). Essentially two questions are at issue: can EPA regulate CO2, and if it can, is it required to.

Proponents of CO2 regulation point to the Clean Air Act provisions requiring EPA to regulate emissions from mobile sources that "cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare."

Opponents to the proposition that Congress intended EPA to regulate CO2, including EPA, industry and allied states, argue that Congress provided no such authority and that the court should not override EPA’s judgment on this issue. The EPA denied the petition in August of 2003, and environmental groups, joined by Wisconsin as well as 12 other states, challenged the decision. The appellate court (D.C. Circuit) upheld the decision and it is now before the U.S. Supreme Court.

DNR Board Approves Staff Budget and Policy Recommendations
The Natural Resources Board approved DNR’s 2007-2009 Biennial Budget recommendations and legislative priorities at its Dec. 6 meeting in Madison. See the full agenda.

The budget recommendations included requests for $5 million in bonding to fund investigations and remedial actions at brownfields sites, as well as $10.5 million in bonding (on top for the $15 million approved by the Board in September) for nonpoint source pollution abatement efforts.

DNR also wants to double the current “tipping fee” for solid or hazardous waste disposal from 50 cents to $1.00 per ton, and increase the vehicle title transfer fee from $7.50 to $9.00 to address shortfalls in the nonpoint accounts. Air program fees, a traditional controversy in DNR’s budget, may be addressed later in the Governor’s budget proposal.

The DNR Legislative Proposal Package includes a program to require manufacturers of select electronic equipment to register with the state and to assume full responsibility for collecting and recycling electronic waste based on a fixed percentage of the sale of this equipment in Wisconsin.

In addition, a disposal ban for computers and TVs would be implemented two years after passage of legislation. Another proposal would allow counties and cities to transfer tax delinquent brownfields property without using the competitive bidding process to expedite cleanup and redevelopment.

WISTAX Compares Wisconsin's Two Largest Cities
Madison has seen large, sustained growth in income and jobs in recent decades, while Milwaukee’s development has been mostly flat, creating a gap between two cities that once shared a similar quality of life.

A report recently issued by the Wisconsin Taxpayers Alliance (WISTAX) explains the gap by examining more than 50 years of municipal and county data. The report, "A Tale of Two Cities," is in the latest issue of The Wisconsin Taxpayer.

Program Highlights Funding Strategies
University Research Park and hamilton.gsp recently presented a special educational program on opportunities available through the 10 federal departments that fund technology-related activities as well as the myriad programs available through the State of Wisconsin.

The program was conducted by government experts from The Hamilton Consulting Group and GSP Consulting. Together, the team of hamilton.gsp has helped technology-based organizations secure over $400 Million in state and government funding.

Wisconsin Politics

Committee Chairs Named
Speaker-designate Mike Huebsch and Senate Majority Leader-designate Judy Robson have announced the structure of the Legislature’s standing committees and have named their respective chairs. Additional Democratic and Republican members will be announced later. The committees and chairs are:

Senate

Standing Committees

• Agriculture and Higher Education: Sen. Kathleen Vinehout

• Campaign Finance Reform, Rural Issues and Information Technology: Sen. Pat Kreitlow

• Commerce, Utilities and Rail: Sen. Plale

• Economic Development, Job Creation, Family Prosperity and Housing: Sen. Julie Lassa

• Education: Sen. John Lehman

• Environment and Natural Resources: Sen. Mark Miller

• Ethics Reform and Government Operations: Sen. Fred Risser

• Health and Human Services: Sen. Jon Erpenbach

• Judiciary and Corrections:  Sen. Lena Taylor

• Labor, Elections and Urban Affairs: Sen. Spencer Coggs

• Public Health, Senior Issues, Long Term Care and Privacy: Sen. Tim Carpenter

• Small Business, Emergency Preparedness, Workforce Development, Technical Colleges and Consumer Protection: Sen. Bob Wirch

• Transportation, Tourism and Insurance: Sen. Roger Breske

• Veterans and Military Affairs, Biotechnology and Financial Institutions: Sen. Jim Sullivan

Joint Committees

• Review of Administrative Rules: Sen. Bob Jauch

• Audit: Sen.  Jim Sullivan

• Retirement Systems: Rep Bob Wirch

• Tax Exemptions: Sen. Jon Erpenbach

Assembly

Standing Committees

• Aging & Long Term Care: Rep. John Townsend

• Agriculture: Rep. Alvin Ott

• Biofuels & Sustainable Energy: Rep. Eugene Hahn

• Children & Family Law: Rep. Carol Owens

• Colleges & Universities: Rep. Steve Nass

• Consumer Protection & Personal Privacy: Rep. Tom Lothian

• Corrections & the Courts: Rep. Garey Bies

• Criminal Justice: Rep. Joel Kleefisch

• Education: Rep. Brett Davis

• Education Reform: Rep. Don Pridemore

• Elections & Constitutional Law: Rep. Sheryl Albers

• Energy & Utilities: Rep. Phil Montgomery

• Financial Institutions: Rep. Scott Newcomer

• Forestry: Rep. Don Friske

• Health & Health Care Reform: Rep. Leah Vukmir

• Homeland Security & State Preparedness: Rep. Joan Ballweg

• Housing: Rep. Steve Wieckert

• Jobs & the Economy: Rep. Pat Strachota

• Insurance: Rep. Frank Lasee

• Judiciary & Ethics: Rep. Mark Gundrum

• Labor & Industry: Rep. Mark Honadel

• Natural Resources: Rep. Scott Gunderson

• Property Rights: Rep. Williams

• Public Health: Rep. J.A. Hines

• Rural Affairs: Rep. Lee Nerison

• Rural Economic Development: Rep. Jeff Mursau

• Small Business: Rep. Terry Moulton

• State Affairs: Rep. Karl Van Roy

• Tourism & Recreation: Rep. Dean Kaufert

• Transportation: Rep. Jerry Petrowski

• Urban & Local Affairs: Rep. Mark Gottlieb

• Veterans & Military Affairs: Rep. Terry Musser

• Ways & Means: Rep. Samantha Kerkman

• Workforce Development: Rep. Jeff Wood

Joint Committees

• Audit: Rep. Suzanne Jeskewitz

• Legislative Council: Rep. Steve Wieckert

• Retirement Systems: Rep. Suzanne Jeskewitz

• Review of Administrative Rules: Rep. Daniel LeMahieu

• Tax Exemptions: Rep. Jeff Wood

• Building Commission: Reps. Phil Montgomery, Dean Kaufert

Senator Alan Lasee Joins Race for Brown County Executive
Veteran Senator and current Senate President, Alan Lasee, announced yesterday that he is a candidate for Brown County Executive. The position is being vacated by current Executive Carol Kelso.

There are two other announced candidates for the non-partisan position meaning that there will be a primary on February 20 with the general election between the two highest vote-getters to be held on April 3. The fact that Republicans lost the majority was a major factor in Lasee’s decision to run for County Executive.

JFC Provides Funds for Milwaukee Women’s Shelter
The Joint Committee on Finance on Thursday approved $100,000 in one-time funding for the Cathedral Center, a shelter for women and children in Downtown Milwaukee.

The Cathedral Center is operated by the American Red Cross and provides temporary housing for single women and women with children who are in need. The Center also provides case management services, a family nurse practitioner, a mental health nurse, an outreach and engagement specialist and day program services. The Center faced a $100,000 funding crisis due to unanticipated cuts from W2 agencies.

Doyle: Goodwin to Remain Chief of Staff; Boyce to Become Deputy Chief of Staff
Gov. Jim Doyle will retain Susan Goodwin as his Chief of Staff in the Governor’s Office and that he will name Katie Boyce as Deputy Chief of Staff, effective Jan. 4, 2007.

In addition to helping to manage the Governor’s Office, Boyce will oversee relations with the Legislature, the Wisconsin Congressional delegation, national organizations, and constituent and interest groups.

Boyce is Director of Governor Doyle’s Inaugural Committee and served previously as the Legislative Director in the Governor’s Office.

Randy Romanski, the current Deputy Chief of Staff, will be moving to a senior leadership role in a state agency.  Details of his new position will be announced in the near future.

Morgan to be Secretary of Administration
Gov. Jim Doyle announced that he is appointing Michael Morgan as Secretary of Administration. Morgan, who currently serves as Secretary of Revenue, replaces Steve Bablitch, who was appointed in September 2005. Morgan is currently the Secretary of Revenue.

Prior to his appointment by the Governor, Secretary Morgan served the City of Milwaukee as the Executive Director of the Fire and Police Commission and as the Commissioner of the Department of City Development. He also held the position of Program Related Investment Officer for the Helen Bader Foundation.

Secretary Morgan received his undergraduate and law degrees from the University of Wisconsin-Madison. He was a running back for the Wisconsin Badgers from 1974 to 1977.

Federal Developments

Senate Confirms Gates As New Defense Secretary
Former CIA Director Robert Gates was confirmed (95-2) by the Senate last week as the new Secretary of Defense. President Bush nominated Gates to replace Donald Rumsfeld, who also held the job under former President Gerald Ford. Sens. Rick Santorum (R-Pa.) and Jim Bunning (R-Ky.) voted against Gates.

House Appointments

• Rep. Dave Obey, (D-Wausau), will chair the powerful House Appropriations Committee, which sets spending for many government programs and grants.

• Rep. Paul Ryan (R-Janesville) was selected to be the ranking member of the U.S. House Budget Committee, moving ahead of 12 more senior Republican members for this leadership position.

• Rep. Ron Kind (D-La Crosse) was appointed to the powerful tax-writing Ways and Means Committee.

• Veteran Congressman Tom Petri (R-Fond du Lac and Congressman-Elect Steve Kagen will serve on the Transportation and Infrastructure Committee next year.

EPA to Require Improved MGP Information
To provide American consumers with improved information when shopping for cars and trucks, the U.S. Environmental Protection Agency (EPA) is issuing new methods to determine the miles per gallon (MPG) estimates that appear on new vehicle window stickers.

EPA's new methods bring MPG estimates closer to consumers' actual fuel use, by including factors such as high speeds, aggressive accelerations, air conditioning use and driving in cold temperatures. Model year 2008 vehicles will be the first to receive the new MPG estimates.

Political News

Rising cost of materials hits state companies: Wisconsin State Journal, Dec. 15, 2006.

Doyle, leading lawmakers agree on ethics overhaul: Milwaukee Journal Sentinel, Dec. 14, 2006.

Support regional view of economy (opinion): Wisconsin State Journal, Dec. 14, 2006.

Kind named to powerful panel: Milwaukee Journal Sentinel, Dec. 13, 2006.

Ron Kind’s political clout grows: La Crosse Tribune, Dec. 13, 2006.

Kagen must wait for top committee assignments: Appleton Post-Crescent, Dec. 13, 2006.

Time to talk about the local economy (opinion): Wisconsin Rapids Daily Tribune, Dec. 13, 2006.

Third stem-cell company started: Wisconsin State Journal, Dec. 12, 2006.

Median property tax bill in state up $7: Milwaukee Journal Sentinel, Dec. 12, 2006.

Joint Finance should keep policy out of state budget (opinion): Appleton Post-Crescent, Dec. 12, 2006.

Income gap widening in areas of Wisconsin: Beloit Daily News, Dec. 12, 2006.

Locally, too many jobs, not enough help: Madison Capital Times, Dec. 12, 2006.

Finance panel weighs budget, politics: Appleton Post-Crescent, Dec. 11, 2006.

Doyle continues push to expand health coverage: Milwaukee Journal Sentinel, Dec. 11, 2006.

Look to the rest of Wisconsin for talent (opinion): Milwaukee Journal Sentinel, Dec. 10, 2006.

Ryan named as top Republican on Budget: Milwaukee Sentinel, Dec. 8, 2006.

Jobs report eagerly awaited: Milwaukee Sentinel, Dec. 8, 2006.

29 water utilities could face penalties: Milwaukee Sentinel, Dec. 8, 2006.

Don't you dare gut reform bill (opinion): Wisconsin State Journal, Dec. 7, 2006.

Politicians aren't the only ones with healthcare risks (opinion): Tomah Journal, Dec. 7, 2006.

Health care merger coming? Milwaukee Journal Sentinel, Dec. 6, 2006.

Congress should support states on health care reform (opinion): Appleton Post-Crescent, Dec. 6, 2006.

Senate confirms Gates as defense secretary: Milwaukee Journal Sentinel, Dec. 7, 2006.

ID theft is growing, but there's help: Racine Journal Times, Dec. 7, 2006.

Kagen takes entrepreneurial skills to Washington: Appleton Post-Crescent, Dec. 6, 2006.

Doyle says he'll retain chief of staff for second term: Milwaukee Journal Sentinel, Dec. 5, 2006.

Doyle wants to keep sick leave perk: Milwaukee Journal Sentinel, Nov. 30, 2006.

A one-two legislative punch for Racine County: Racine Journal Times, Nov. 30, 2006.

Reject expansion of state sales tax (opinion): Wisconsin State Journal, Dec. 4, 2006.

Wage gap worse here than in 2000, report says: Madison Capital Times, Dec. 4, 2006.

Inner city job growth is critical to regional economic health (opinion): Milwaukee Journal Sentinel, Dec. 2, 2006.

Doyle won’t raise sales tax: Superior Daily Telegram, Dec. 1, 2006.

Fixing the highway shortfall (opinion): Milwaukee Journal Sentinel, Dec. 3, 2006.

State urged to help trim crashes: Appleton Post-Crescent, Nov. 30, 2006.

Wisconsin listed among worst for alcohol-related fatal accidents: Green Bay Press-Gazette, Nov. 30, 2006.

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