Budget Update

2007-09 Wisconsin Budget Update

The Hamilton Consulting Group

July 2007

Miscellaneous Provisions

Lemon Law Statute of Limitations
Governor – Imposed a four year statute of limitations for sales tax refunds to vehicle manufacturers who have refunded such taxes to vehicle lessors or purchasers who have returned their vehicles under the state’s “Lemon Law”. [See Governor 258]

Joint Finance – Left the Governor’s provision intact

Senate – No change.

Assembly – Deleted the provision.

Remedies Against Manufacturers, Risk Contribution
Governor – No provision

Joint Finance – No provision.

Senate – No provision.

Assembly – Included the provisions of 2005 SB 402, as passed by the Legislature related to the potential liability for a person's injury by a product. In response to Thomas v. Mallett (2005 WI 129), the provision clarifies that a manufacturer, distributor, seller, or promoter of a product may be held liable for a claim of an injury only if the claimant proves, in addition to any other elements required to prove his or her claim, the defendant manufactured, distributed, sold or promoted the specific product that caused the injury. [See Assembly 142 and 2005 SB 402]

Consolidation of Attorneys and Legal Staff under DOA
Governor – Created a Division of Legal Services with $16,132,200 in funding and transferred all attorney and legal staff positions in the executive branch state agencies to the new Division of Legal Services. Specified that all hearing officers, examiners, and administrative law judges would be transferred to the Division of Hearings and Appeals and then authorized the DOA to provide legal services to state agencies.

Joint Finance – Deleted this provision. [See Paper 110]

Senate – Restored the governor’s proposal with some exceptions including a new estimated budget of $15,268,200. [See Senate 47]

Assembly – No change to JFC.

Eliminate Inactive Programs
Governor – This provision was not in the Governor’s budget.

Joint Finance – Deleted the following inactive programs and related appropriations: (a) mining economic development grants and loans; (b) certified capital companies, but retain current reporting requirements; (c) recycling rebates; and (d) brownfields general purpose revenue grants. [See JFC 147]

Senate – No change

Assembly – No change

Government Accountability Board Transition
Governor – This provision was not in the Governor’s budget.

Joint Finance – Eliminates the Elections and Ethics Board and replaces it with the Government Accountability Board. It would also create a legal counsel position on the GAB Board, and would create per diem funding for future GAB board meetings. It would also separate out lobbying revenue from campaign finance registrant’s revenue. [See Paper 360 and JFC 278]

Senate – No change

Assembly - No change

Exception to Quotas on “Class B” Intoxicating Liquor Licenses
Governor – No provision

Joint Finance – No Provision

Senate – No Provision

Assembly – Current law provides certain exemptions from municipal quotas related to the number of “Class B” licenses that may be issued, including an exception for a full service restaurant that has a seating capacity of 300 or more persons. This provision deletes the 300 person capacity language and instead created a “full service restaurant” definition as an establishment where meals are served on-premise and in which the sale of alcoholic beverages account for less than 50% of sales. [See Assembly 47]

Projected Lapse Amount
Governor – Require DOA to lapse or transfer $40 million GPR annually from unencumbered balance in state agency operations appropriations.

Joint Finance – Deleted provisions. Instead, directed DOA to use current authority to limit agency spending to generate $40 million GPR annually. [JFC 99 (Item #2)]

Senate – No change

Assembly – Same as JFC, but increased the projected lapse amount by $35,000,000 annually so that the total annual lapse would be $75,000,000. [See Assembly 1]

Required Statutory General Fund Reserve
Governor – Provided that the required general fund statutory balance would be $130 million for each fiscal year from 2007-08 through 2010-11. Specified that in 2011-12, the required balance would equal 2% of the total GPR appropriations plus GPR compensation reserves for each fiscal year. Under current law, the required balance for 2007-08 and for 2008-09 and 2% of total GPR appropriations plus GPR compensation reserves in each fiscal year beginning in 2009-10.

Joint Finance – No change. [See JFC 99]

Senate – No change

Assembly – Deleted the requirement for a required statutory general fund reserve for the 2007-09 biennium. Specified that in 2009-10 and 2010-11 the required balance would be $65 million. Also provided that beginning in 2011-12, the required balance would be equal to 2% of the total GPR appropriations plus GPR compensation reserves for each fiscal year. [See Assembly 2]

Civil Legal Services for the Indigent
Governor – Provided $1,000,000 GPR in 2008-09, under a new GPR annual indigent civil legal services appropriation for the Department of Administration’s Office of Justice Assistance.

Joint Finance – Approved the Governor’s Proposal. [See Paper 124]

Senate – No change

Assembly – Deleted the program to provided state grant funding to organizations that provide civil legal services to indigent persons. Deleted the GPR annual appropriation for indigent civil legal services under DOA's supervision and management program and delete $1,000,000 in 2008-09.

Compensation and Other Reserves
Governor – Provided in the 2007-09 general fund condition statement, total compensation reserves of $143,311,400 in 2007-08 and $366,427,900 in 2008-09 for increases in state employee salaries and employer fringe benefit costs.

Joint Finance – Approved the Governor’s proposal. [See Paper 173]

Senate – No change

Assembly – Reduced GPR compensation and other reserves by $21,921,600 in 2007-08 and $72,268,000 in 2008-09. Reserve the remaining amounts ($45,862,900 in 2007-08 and $100,278,700 in 2008-09) for state employee compensation adjustments and any potential revenue losses relating to the March, 2007, Wisconsin Supreme Court decision in Wisconsin Department of Revenue v. River City Refuse Removal, Inc. [See Assembly 62]

Required Retirement Contributions for Non-represented State Employees
Governor – No provision.

Joint Finance – No provision.

Senate – No provision.

Assembly – Provided that the state may not pay the first 5.0 percent of earnings that its non-represented classified and unclassified state employees, including University of Wisconsin faculty and academic staff, are required to pay as employee contributions to the WRS. [See Assembly 68]

County and Municipal Aid – Funding Level
Governor – Proposed to increase payments under the county and municipal aid program by $15,000,000 in 2008-09 so that total payments under the program equal $874,703,100 in 2008 and subsequent years. Provide that payments in 2008 to each county and municipality be increased proportionately, relative to each payment received in 2007, so that payments are higher by $15,000,000 in total. Payments to each county and municipality in subsequent years will be set equal to the amount received in 2008.

Joint Finance – No change. [See Paper 706 and JFC 601]

Senate – No change

Assembly – Deleted the provision recommended by the governor that would increase payments under the county and municipal aid program by $15 million annually, beginning in 2008, and instead, reduce payments under the county and municipal aid program by $42,985,200 in 2008. Decreased payments to each county by 5%. Decreased payments by 12.5% for those municipalities with both 2007 populations exceeding 20,000 and 2007 county and municipal aid payments exceeding $250 per capita. Specified that payments to each county and municipality in 2009 and thereafter would equal the amounts received in 2008. [See Assembly 146]

License Plate Reissuance and Single License Plate
Governor – Repealed the provision that requires DOT to replace all license plates for most types of vehicles with plates of a new design on a ten-year cycle. [See Governor 670]

Joint Finance – Deleted the license plate reissuance provision and specified that DOT is required to issues one license plate per vehicle as opposed to two.

Senate – Restored funding for two license plates.

Assembly – Restored funding for two license plates. [See Assembly 163]