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Mar. 18, 2005
Below, we have
reported on two
Wisconsin
Supreme Court cases that have been eagerly anticipated by
observers of the civil justice system in
Wisconsin.
These decisions are significant and will be thoroughly digested
and analyzed in the days ahead. (With concurring and dissenting
opinions, the two decisions total 110 pages.) While the Court
recognized a heightened standard for punitive damages adopted by
the Legislature in the mid-90s, proponents of that legislation
will likely argue that the Court has weakened the intent of the
Legislature. Those who opposed that legislation would still prefer
an even looser, closer to negligence, interpretation. In
addressing the punitive damage issue, the Court left unresolved
the issue of the constitutionality of the amount of the award. The
Court will undoubtedly be presented with that issue again, having
remanded both cases to the Court of Appeals to review unresolved
issues.
Joint Finance has concluded
its formal statewide hearings and will turn its attention to agency
briefings beginning the last week in March. The all important voting process
begins in mid-April.
Next week is a good week
for a Spring Break. We will return in 2 weeks.
Policy Developments
Supreme Court
Rules on Punitive Damages
The Supreme Court this morning handed down two opinions relating
to Wisconsin law on punitive damages. The Court issued its
interpretation of the
Wisconsin statute [s. 895.85 (3)] adopted in the 1995 legislative
session. The rulings were in a drunken driving case and the high
profile Mitsubishi case. While the Court recognized that
the Legislature created a “heightened standard” in its adoption of
s. 895.85 (3), it rejected the stricter interpretation of the
Appeals Court in the Mitsubishi case; reversed that
decision; and, held that the punitive question was appropriate to
be presented to the jury. In both cases, the Court failed or
refused to address the constitutional issue as to the question of
whether or not the amount of the award was excessive. (LeRoy
M.Strenke v. Levi Hogner
and Nau Country Insurance Company &
Patricia Wischer, et. al v. Mitsubishi Heavy Industries America,
Inc., et.al.)
GOP Fails to Override Veto
Last week, shortly after his return from Mexico, Gov. Jim Doyle, as
expected, vetoed the tax freeze bill on the grounds that “it would hurt
public education.” The Assembly quickly scheduled a veto override vote that
failed on a party-line vote, 59 to 39, short of the 2/3 required.
Senate Rejects Campaign
Finance Bill
The State Senate on Wednesday rejected a campaign finance proposal,
SB 46, which had been scheduled for floor
action and debate after lengthy caucus discussion. The lead author, Senator
Mike Ellis, was joined by cosponsor, Madison Democrat Fred Risser, and
Milwaukee Democrat Tim Carpenter and ten other Republicans in voting for the
bill, which was rejected on a
20-13 vote.
The legislation would have
created a new method to give public grants to candidates and banned
fund-raising while lawmakers work on the state budget. Proponents argued
that the proposal was “a good first step,” while many opponents claimed that
the bill “did not go far enough” and, therefore, should be rejected.
Budget Hearings Update
The Joint Committee on Finance (JFC) concluded its series of statewide
public hearings on the 2005-07 state budget with a lengthy hearing in
Madison yesterday. The committee will now move on to agency briefings which
will be held March 29, 30 and 31 and April 6. The committee plans to start
voting on items to be included in its version of the proposed budget on
April 12. JFC’s version will be in the form of a Substitute Amendment to the
proposed budget submitted by the Governor, which will be referred to the
full Legislature for additional amendments and final action expected to be
concluded by July 1.
In the meantime, Senator
Lena Taylor and Representative Pedro Colón, both members of Joint Finance,
are hosting a public hearing on the $52.6 billion state budget bill at the
Milwaukee
United
Community Center
on Monday, March 21 from 2:00pm –6:00pm. Taylor and Colon have been critical
of the fact that none of the formal statewide hearings were held in the
Milwaukee area.
PSC Approves
Sale of
Kewaunee Nuclear Power Plant
On Thursday, March 17, the state Public service Commission (PSC)
unanimously approved the sale of the Kewaunee Nuclear Power Plant to
Dominion Resources, Inc. of
Virginia,
citing substantial economic benefits for ratepayers. The PSC approval was
based in large measure on new conditions, which the Commission said will
ensure that the citizens of Wisconsin will have a voice in the future of the
facility. Yesterday’s approval reversed a Dec. 16, 2004 order (2-1)
rejecting the sale to Dominion.
Governor Doyle Outlines
Accountability, Consolidation, Efficiency Initiative
Governor Jim Doyle
recently unveiled a plan he says will save
Wisconsin taxpayers up to $200 million over the next four years
by changing the way
Wisconsin
does business.
Called the ACE
(Accountability, Consolidation, Efficiency) Initiative, Governor Doyle’s
plan will overhaul “outdated” bureaucratic structures, implement best
business practices, and generate cost savings for taxpayers by leveraging
the state’s purchasing power to lower prices.
Study:
Wisconsin Among
Bottom Three States in Per Capita Federal Spending
In 2003, per capita federal spending in Wisconsin totaled $5,525, or 18.8
percent below the national average. Only two states, Minnesota and Nevada,
had lower amounts, according to a
new report from the Wisconsin Taxpayers Alliance.
Other key findings:
-
Two categories accounted
for nearly 75 percent of the difference between spending here and
nationally. Nearly half of the difference was from lower
procurement-contract spending; about one quarter was from less wage and
salary spending.
-
The average Medicare
recipient here received 21.1 percent less than the national average. That
was the main reason federal direct payments were lower here compared to
the nation.
-
Wisconsin
received 84¢ in federal spending for every $1 of federal taxes and fees
paid. The state ranked 39th on this measure
Lautenschlager Proposes
Plan to Make Government more Accountable to Public
Attorney General Peg Lautenschlager has proposed a
comprehensive new initiative for government reform. Her proposal, called
the Attorney General’s Government Reform Enterprise (AGGRE), would prohibit
campaign contributions by government contractors while those contractors
were applying for the government work and shortly after they were awarded
the job. They also would be banned from donating to the officials who make
or are able to influence decisions on their contracts.
The other proposals
include:
-
Restrictions on former
lawmakers, legislative staff and contract employees lobbying the
government
-
Merging and reforming the
Ethics and Elections boards
-
Making bill drafts
crafted for the Legislature and circulated to others subject to the state
public records law
-
Creating a nonpartisan
body to redraw legislative boundaries.
Supreme Court Upholds
Ameritech Refund
In an opinion released Mar. 17, the Supreme Court was equally divided on an
appeals court decision finding that Ameritech had unlawfully collected $18
million in intrastate long-distance carrier charges. The Court of Appeals
affirmed in part and reversed in part a decision by Milwaukee County Circuit
Judge Michael Sullivan. Sullivan affirmed a PSC decision finding Ameritech
had generated long-distance charges that were unlawful, but that the refund
ordered by the commission was foreclosed by Wis. Stat. s. 196.37(2).
Justices Bradley, Prosser, and
Butler would
have affirmed; Justices Wilcox, Crooks, and Roggensack would have reversed;
Chief Justice Abrahamson did not participate.
Red Cross Leaders Meet State Legislators during “Day at the Capitol”
Uniting as one
Red Cross during March “Red Cross Month,” key leaders from the 17 Red Cross
chapters throughout the state and representatives of the Badger-Hawkeye and
North Central Blood Regions met with state legislators on March 15 to
discuss emergency preparedness and response, meeting lifesaving blood
demands, and other issues of importance to state residents.
Johnnie Smith,
Wisconsin’s Director of
Emergency Management, spoke to the 125 American Red Cross volunteers and
staff about
Wisconsin’s emergency management system and the state’s effort to
prepare for disaster response and mitigation. Smith recognized and thanked
the American Red Cross for its critical role in disaster response
operations.
State Sen. Ron Brown, chair of the Senate Committee on
Veterans, Homeland Security, and Military Affairs, Small Business and
Government Reform, emphasized the need for proper training, education and
equipment for first responders. Sen. Brown identified the preparedness and
training courses of the
American Red Cross as a critical component of citizen disaster
preparedness.
Andy Franken of the Hamilton Consulting Group discussed some of the
Homeland Security funding issues and other legislative proposals facing the
American Red Cross in
Wisconsin. Franken also discussed the importance of the B.L.O.O.D.
(Bipartisan Legislators Organized for Outreach to Donors) Coalition in the
effort to promote blood donations throughout the state.
Wisconsin
Politics
Gundrum Announces
He will Not Run for AG
Citing family reasons, State Rep. Mark Gundrum (R-New Berlin)
announced his decision not to run for attorney general in the
2006 election. His decision leaves two Republicans in the race.
Waukesha County District Attorney Paul Bucher and J.B. Van Hollen,
former U.S. attorney for the Western District of Wisconsin, have
said they will challenge Attorney General Peg Lautenschlager, a
Democrat who has said she plans to seek a second term.
Federal Developments
EPA Mercury Rule
Requires DNR to Follow Suit
On Mar.15, 2005, EPA issued the
Clean Air Mercury
Rule.
The rule is the first ever federally-mandated that coal-fired
electric utilities reduce their emissions of mercury. Its
promulgation triggers a requirement in Wisconsin’s mercury rule
that DNR revise its rule to assure consistency with the federal
program. The key issue in the upcoming development of the state
version of the rule is how closely it will track the federal
program. (For more on the state mercury program, see Hamilton
Consulting’s
Mercury Rule
Update).
House Passes Federal
Reauthorization Bill
In a major step to getting a reauthorization package approved by Congress
and the President, the U.S. House last week passed HR 3, the
Transportation Equity Act:
A Legacy for Users,
or TEA-LU.
For
Wisconsin, TEA-LU would
generate about $4 billion of federal highway formula funds over the six-year
period, a 23 percent increase over TEA 21. Wisconsin should also see a 34
percent increase in transit formula funds. Overall, the bill increases
transportation funding nationwide by 25.5 percent.
Political News
Privatization of inmate care opposed: Milwaukee Journal
Sentinel, Mar. 18, 2005.
Governor's
veto on tax limits stands: Milwaukee Journal Sentinel, Mar. 17,
2005.
AG seeks more open government: Madison Capital Times, Mar. 17, 2005.
Election fix 'will be back': Madison Capital Times, Mar. 17, 2005.
Senate
rejects changes in campaign financing: Milwaukee Journal Sentinel,
Mar. 17, 2005.
Report: Campaign donors receive bigger grants: Janesville Gazette,
Mar. 17, 2005.
Votes
for a corrupt system (opinion): Milwaukee Journal Sentinel, Mar. 17,
2005.
Doyle
emphasizes commitment to open records: Milwaukee Journal Sentinel,
Mar. 17, 2005.
Open government laws serve citizens (opinion): Portage Daily
Journal, Mar. 17, 2005.
County wants gaming money: Baraboo News Republic, Mar. 17, 2005.
Vote possible on nuke-plant sale: Green Bay Press-Gazette, Mar. 17,
2005.
Mercury emission rules leave plenty to jeer about (opinion): Racine
Journal Times, Mar. 17, 2005.
Senate votes
to drill in refuge: Milwaukee Journal Sentinel, Mar. 17, 2005.
Local Red Cross honors 2,000-plus volunteers: Fond du Lac Reporter,
Mar. 17, 2005.
Gov seeks $187M for research institute: Madison Capital Times, Mar.
16, 2005.
Ozone air-pollution standards advance: Green Bay Press-Gazette, Mar.
16, 2005.
Official: Mercury
rule hurts state policy: Eau Claire Leader-Telegram, Mar. 16, 2005.
PCB bill pits paper companies, insurers: Green Bay Press-Gazette, Mar. 16,
2005.
Air-cleanup mandate a start (opinion): Green Bay Press-Gazette, Mar.
16, 2005.
Gas Price Law Headed For Trash? Wisconsin State Journal, Mar. 16,
2004.
Doyle
takes new heat on budget: Milwaukee Journal Sentinel, Mar. 16, 2005.
Lawmakers will try to appeal gas minimum markup law: La Crosse
Tribune, Mar. 15, 2005.
Renewable fuels save in long run: Green Bay Press-Gazette, Mar. 14,
2005.
Upcoming Fundraisers
Monday, March 21
-
Sen. Ted Kanavas (R-Brookfield),
Waukesha
-
Sen. Roger Breske (D-Eland),
Birnamwood
Tuesday, March 22
-
Gregg Underheim, Green Bay
-
Rep. Jim Kreuser (D-Kenosha), Pleasant
Prairie
Wednesday, March 23
Monday, March 28
Tuesday, March 29
For details, see
The Hamilton Consulting Group Fundraiser Calendar.
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