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 November 8, 2002 We are
still assessing the political and policy ramifications of Tuesday’s
election, but generally the results provide a positive signal to
Wisconsin’s business community, particularly due to Governor-elect Doyle
and the Senate and Assembly Republican’s consistent pledge not to raise
taxes to solve the deficit. Go to our
special election update
for a summary of the key races.
The projected $3 billion deficit for the 2003-05 biennium will dominate policy and politics in Wisconsin for the first half of 2003 as the Governor and Legislature struggle to formulate a bipartisan fix. Governor-elect Doyle and Republican leaders in the Legislature both ran on the “no-tax-increase” pledge and both are now talking of working together during the upcoming session. Business groups are, nonetheless, girding for tax proposals given the difficulty of filling the budget hole with spending cuts alone. There is also uncertainly over whether or not “no tax increase” includes fee increases and/or expansion of existing taxes to cover additional goods or services. The new Republican majority in the Senate has already selected their leaders (see below) and Doyle will announce his transition team next week. Cabinet secretary and other agency appointments will also have a significant impact on policy development and implementation. We will provide additional information on these developments as they occur. Wisconsin
Politics
Recount Likely in 9th Senate District In the races where incumbent Democratic Senators were defeated by their Republican challengers, they were defeated by close margins. Ron Brown defeated Rod Moen 51% to 49%, Cathy Stepp defeated Kim Plache, 51% to 49%, and in the open 5th Senate District, Republican Tom Reynolds defeated Democrat George Christenson 53% to 47%. None, however, were as close as the 9th Senate District, where Joe Leibham defeated Sen. Jim Baumgart. Unofficial results in the 9th Senate District have Republican challenger Leibham defeating incumbent Democrat Jim Baumgart by 23 votes. The preliminary tally has Leibham with 27,718 votes compared to 27,695 for Baumgart. Sen. Baumgart has indicated that he will ask for a recount, which was publicly welcomed by Rep. Leibham. In order to do a recount, a recount petition must be filed with the State Elections Board. A recount may be held in some or all of the wards in the district, which will be conducted by a County Board of Canvassers. The recall must be completed as soon as possible, but no later than 13 days from the day following the receipt of the recount order. Any candidate, including his or her representative or counsel, may view all materials and ballots and may object, based on several specified statutory reasons, to the count of any ballot. Senate Republicans Elect New Leaders The Senate Republicans met in open caucus on Thursday, Nov. 7 to elect their leaders for the upcoming legislative session. The new leadership is as follows:
All elections were unanimous, with the exception of Senate President. Sen. Bob Welch was nominated in addition to Sen. Lasee, but after a secret ballot, Sen. Lasee was elected. At the close of the meeting, Sen. Panzer indicated that there would be another meeting of the Senate Republican Caucus the week of Nov. 18. Assembly Republicans Set To Pick New Leaders Assembly Republicans, who are enjoying their largest margin in 45 years (58-41), plan to meet on Tuesday, Nov. 12 at 11:00 a.m. in room 417 North to elect their new leaders for the upcoming legislative session. While the Assembly Republican Caucus alone cannot elect the Speaker (the full house votes on that position), other positions will be voted on including Speaker Pro Tem, Majority Leader, Assistant Majority Leader, Caucus Chair, and Caucus Secretary. The Republican’s “nominee” for Speaker is, however, virtually assured of being elected by the full body. Several names have been circulated regarding various positions within the Assembly Republican leadership. Reps. John Gard and Scott Gunderson are both seeking the Speaker position. Recently, Reps. Luther Olsen, Frank Lasee, Sheryl Albers have stated they will seek the Majority Leader position facing Mickey Foti, who announced his intentions to stay on as Majority Leader. Assembly Democratic Leader Steps Down Assembly Minority Leader Spencer Black (D-Madison) has announced he will step down as Minority Leader. Black, who assumed the position in May 2001, said he took the job reluctantly and now just wants to concentrate on crafting legislation. Rep. Travis announced he would seek the position. The Assembly Democrats plan to meet on Tuesday, Nov. 12th to elect their leaders for the upcoming legislative session. They will meet at 1:00 p.m. in the North Hearing Room. Policy Developments
Doyle Outlines Top Priorities Governor-elect Jim Doyle (D), who was the only Democrat in the country to unseat an incumbent Republican governor, met with the press on Wednesday, the first time since claiming victory in Tuesday night’s election. In that press conference, Doyle, who defeated Gov. Scott McCallum with 45% of the vote, extended an olive branch to the Republican controlled State Legislature to work together to solve the state’s growing budget deficit, which he cited as his top priority. Doyle’s other top priority is ethics reform, citing the need to restore the public’s confidence in government. Doyle again reiterated his pledge to not raise taxes (including temporary taxes) to balance the state’s budget, a sentiment that is shared by Republican leaders. Doyle predicted that the budget deficit could be as much as $3.5 billion by mid-2005 because of unanticipated health care costs associated with Medicaid and the SeniorCare program. Assembly and Senate Republicans welcomed the opportunity to work with Doyle on the state’s budget and indicated that they look forward to working together to keep their mutual promises to not raise taxes and reduce government spending. Rep. John Gard stated "working together to keep our mutual promise is a great way for the new administration and the legislature to immediately begin building a positive working relationship for the upcoming session." While speculation about cabinet appointments and other key positions in the Doyle Administration is rampant, Doyle only offered that he will have a transition team announcement next week. Doyle will have 154 posts to fill in his new Administration. See Gov-elect Doyle prepared remarks (victory speech). Joint Finance Committee Set to Meet The Joint Committee on Finance has scheduled a meeting, under S. 13.10, for Monday, Nov. 11 at 1:00 p.m. in Room 412 East. The Committee agenda includes requests by the Dept. of Employee Trust Funds for supplemental funding in the amount of $3,372,300, and a request by the Dept. of Transportation for $10 million in SEG funding for the State’s highway maintenance and traffic operations. The Committee is also expected to approve funding for Governor-elect Doyle’s transition team so they may review and analyze budget requests, hire staff, and obtain office space. No Special Session on Ethics Reform Governor Scott McCallum announced that he will not call a special session of the State Legislature for next week to address ethics reform. After charges were filed against the state’s top legislative leaders, McCallum announced he would call the Legislature back after the elections for a special session to deal with reform issues. McCallum stated that "Mr. Doyle should have the chance to put his own mark on ethics reform with a new Legislature." As previously noted, Doyle has indicated that ethics reform is one of his top priorities. Ethics Board Wants Government Accountability On Thursday, Nov. 7, Ethics Board Director Roth Judd and Chairman James Morgan called on newly elected state officials to enact extensive government reforms to repair Wisconsin’s reputation for clean government. The plan, outlined by Judd and Morgan, includes:
Upcoming Legislative Council Study Committee Meetings
Political
News
Doyle extends hand to GOP: Milwaukee Journal Sentinel, Nov. 8, 2002. Governor-elect urges bipartisan fix for deficit. Black is leaving leadership post: Wisconsin State Journal, Nov. 8, 2002. Said he was tired of managing legislators and overseeing their campaigns. Women gain ground in state Capitol but say they have a way to go: Milwaukee Journal Sentinel, Nov. 8, 2002. Wisconsin has lagged behind many other states in electing women to public office. Leaders sought by GOP: Appleton Post-Crescent, Nov. 8, 2002. Panzer to lead Senate; four vie to lead Assembly. County vote tally verified: Sheboygan Press, Nov. 8, 2002. Rest of district still must certify. Leibham named GOP vice chairman: Sheboygan Press, Nov. 8, 2002. He was nominated by state Sen. Mary Panzer, who was elected Senate majority leader. Alan Lasee selected president of Senate: Green Bay Press-Gazette, Nov. 8, 2002. Lasee was elected president by secret ballot following the nomination by Sen. Carol Roessler. Brown gets taste of new position: La Crosse Tribune, Nov. 8, 2002. Said promoting legislation helped him become a consensus builder. Democrats down to one lawmaker in Brown County: Green Bay Press-Gazette, Nov. 7, 2002. Sen. Dave Hansen the only state Democrat who represents any part of Brown County. Jauch predicts a 'rough ride' in legislature: Ashland Daily Press, Nov. 7, 2002. "This state is divided right down the middle politically," Jauch said. Big winner Tuesday? Clean government (opinion): Eau Claire Leader-Telegram, Nov. 7, 2002. In short, the reform movement is alive and well in the state Capitol. Speculation rages on Doyle appointments: Madison Capital Times, Nov. 7, 2002. Up to 120 exec jobs up for grabs. Williams takes Assembly seat by 315 votes: Phillips Bee, Nov. 7, 2002. Decker holds spot in Wisconsin's Senate. New day in the Legislature? (opinion): Milwaukee Journal Sentinel, Nov. 7, 2002. Lawmakers should be eager to show that they can behave like adults and work toward the common good. Details and a monthly calendar of upcoming fundraisers can be found on The Hamilton Consulting Group’s Web site. |
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