Civil Trial Counsel of Wisconsin - Political Tidbits December 20, 2002

December 20, 2002

We will not be publishing Political Tidbits over the Holidays unless there is some significant breaking news. We expect Governor-Elect Doyle will fill the remaining cabinet positions over the next couple of weeks. We will provide a complete breakdown of all the appointments with our next edition, Jan. 10, 2003. In the meantime . . .

Happy Holidays

Wisconsin Politics
Doyle Names Five More to Cabinet
Governor-elect Jim Doyle (D) announced five more appointments to his Administration this week. They are:

Matthew Frank, Secretary, Dept. of Corrections. Frank currently serves as the Administrator of the Division of Legal Services in the Dept. of Justice.
Michael Morgan, Secretary, Dept. of Revenue. Morgan most recently served as the Program Related Investment Officer at the Helen Bader Foundation in Milwaukee. He is also a former assistant district attorney.
Helene Nelson, Secretary, Dept. of Health and Family Services. Nelson has served under four different governor’s as Deputy Secretary or COO for the Departments of Revenue; Transportation; Health and Social Services; Industry, Labor and Human Relations; and, Agriculture, Trade and Consumer Protection.
Kevin Shibilski, Secretary, Dept. of Tourism. Shibilski has served as State Senator from the 24th Senate District, which includes Stevens Point, Marshfield and Wisconsin Rapids, since 1995. Shibilski is a member of the Joint Committee on Finance and the Senate Education Committee.
Karen Timberlake, Secretary, Dept. of Employment Relations. Timberlake currently serves as the Deputy Administrator for the Division of Legal Services in the Dept. of Justice.

The Doyle Administration is starting to take shape, although several key appointments have yet to be announced, including appointments to the Departments of Transportation, Financial Institutions, Commerce, Natural Resources, and Agriculture, Trade and Consumer Protection. Doyle will have the opportunity to appoint members to the Natural Resources Board, Personnel Commission and Public Service Commission, which can be done at a later date.

Doyle has previously named Marc Marotta, Secretary, Dept. of Administration; David Reimer, Budget Director; and, Susan Goodwin, Chief of Staff.

24th Senate District Special Election
The appointment of Shibilski to Tourism means there will be a special election in the 24th Senate District. Shibilski, a Democrat, was elected to that seat in a 1995 special election. Early names being floated to replace Shibilski include Democrats Rep. Julie Lassa (Plover) and Alexander Paul, a Wisconsin Rapids attorney. On the Republican side, former Rep. Mary Ann Lippert (R-Pittsville) may be interested in running. With Shibilski’s departure, Republicans will be up 18-14 (1 vacancy). Democrats have held this seat since 1972. A special election is likely to coincide with the April nonpartisan elections.

Panzer Names Committee Chairs
Incoming Senate Majority Leader Mary Panzer (R-West Bend) named the remainder of the Senate Finance Committee and standing committee chairs this week. The Republicans named to the Senate side of the Joint Committee on Finance include: Sens. Scott Fitzgerald (R-Juneau), Sheila Harsdorf (R-River Falls), Ted Kanavas (R-Brookfield), Mary Lazich (R-New Berlin), and Bob Welch (R-Redgranite). Sen. Alberta Darling (R-River Hills) is the Senate Chair.

Standing Committee Chairs are as follows:

Agriculture, Financial Institutions and Insurance – Sen. Dale Schultz (R-Richland Center)
Economic Development, Job Creation and Housing – Sen. Cathy Stepp (R-Sturtevant)
Education, Ethics and Elections – Sen. Mike Ellis (R-Neenah)
Energy and Utilities – Sen. Rob Cowles (R-Green Bay)
Environment and Natural Resources – Sen. Neal Kedzie (R-Elkhorn)
Health, Children, Families, Aging and Long Term Care – Sen. Carol Roessler (R-Oshkosh)
Higher Education and Tourism – Sen. Sheila Harsdorf (R-River Falls)
Homeland Security, Veterans and Military Affairs and Government Reform – Sen. Ron Brown (R-Eau Claire)
Judiciary, Corrections and Privacy – Sen. David Zien (R-Eau Claire)
Labor, Small Business Development and Consumer Affairs – Sen. Tom Reynolds (R-West Allis)
Senate Organization – Sen. Mary Panzer (R-West Bend)
Transportation and Information Infrastructure – Sen. Joe Leibham (R-Sheboygan)

Joint Committees:

Administrative Rules – Sen. Joe Leibham (R-Sheboygan)
Audit – Sen. Rob Cowles (R-Green Bay)
Employment Relations – Sen. Alan Lasee (R-DePere)
Legislative Council – Sen. Alan Lasee (R-DePere)
Legislative Organization – Sen. Alan Lasee (R-DePere)
Retirement Systems – Sen. Dale Schultz (R-Richland Center)
Tax Exemptions – Sen. Mike Ellis (R-Neenah)

Doyle Inaugural Events
Following is information on Gov.-elect Jim Doyle’s Inaugural events, which will take place on Sunday, Jan. 5 and Monday, Jan. 6. For more information on the events, go to www.doyleinauguration.com.

Sunday, Jan. 5,

Milwaukee Interfaith Breakfast, Northside YMCA, Milwaukee, 9:00 p.m.
Dinner Fundraiser, Marriott Madison West, Middleton, 6:30 p.m.

Monday, Jan. 5,

Madison Inaugural Breakfast, Monona Terrace, Madison, 8:00 a.m.
Inauguration Ceremony, State Capitol, 12:00 p.m.
Welcome Reception, Governor’s Office, 1:00 p.m.
Inaugural Ball, Monona Terrace, 8:00 p.m.

Policy Developments
Leadership Agrees to Tentative Floor Schedule
Senate and Assembly Leadership this week agreed to a tentative floor session schedule, which will be voted on Jan. 6. Following are tentative floor session dates for the first six months of next year:

January 28-30
February 18-20
March 11-13
March 18-20
April 29-May 1
May 6-8
May 28-29
June 3-5
June 10-13
June 17-9
June 24-27

BadgerCare Funding Delayed
Under 13.10 action this week, the Joint Finance Committee (JFC) was deadlocked on how to address a projected $27 million shortfall in BadgerCare funding for the current fiscal year. ($10 million GPR, $16 million FED, $1 million PR).

Current law requires DHFS to adjust enrollment eligibility if faced with a funding shortfall, but the department must get JFC approval before implementing the enrollment trigger. At issue before the committee was whether to approve the enrollment trigger and or whether to provide supplemental funding to address this year’s deficit.

Imposition of the enrollment trigger would suggest GPR savings. However, if the state implements a reduction in eligibility it cannot receive enhanced federal funding under the terms and conditions of a federal waiver. Since any reduction in eligibility would only apply to new enrollees, the Fiscal Bureau estimates that the GPR deficit in FY 03 would actually increase from $10 million to $12.5 million if the committee chose to forfeit enhanced federal funding by approving the adoption of the enrollment trigger.

DHFS, while required to submit a request to implement enrollment changes, recommended instead that the committee address the shortfall by moving $9.9 million GPR from the SeniorCare program to BadgerCare. Ultimately, the JFC failed to adopt any change to the status quo and did not approve implementing the enrollment trigger; leaving the deficit unresolved, to be dealt with in future 13.10 quarterly meetings or future legislative action in the next session. Co-chairman John Gard proposed that Badgercare enrollment be suspended beginning April 1, 2003 and that $9.9 million be transferred from DHFS’s discretionary pot of federal money (income augmentation revenue) to BadgerCare. The motion also directed DHFS to seek an amendment to the existing federal waiver, which would essentially allow eligibility reduction without loss of enhanced federal funding. That motion (Motion #526) failed by a 7-9 vote with all eight Democrats and Senator Rosenzweig voting against. Senator Moore’s motion to reject the DHFS plan to suspend enrollment and to provide $9.9 million in income augmentation funds failed (8-8) on a straight party line vote.

Environmental Groups Attack DNR’s Air Permit Program
Calling it the worst program in the Nation, a coalition of environmental groups announced legal action to address Wisconsin’s ``broken'' clean air permits program. The groups filed a formal petition with the U.S. Environmental Protection Agency asking the federal agency to impose sanctions, including withholding highway funding, unless the state fixes the noted problems.

The 18-Page Petition targets DNR’s implementation of the federal permit program under the Clean Air Act. Ostensibly, the petition seeks to raise air permit fees on Wisconsin companies. Industry groups such as Wisconsin Manufacturers & Commerce have successfully fought back such efforts in the past. From industry’s perspective, the key issue is not federal operating permits but the failure by DNR to issue timely constriction permits needed before companies can build or expand in Wisconsin. They argue it’s a question of DNR inefficiencies, not lack of money.

Federal Developments
Lott to Step Down
Earlier today it was reported that Sen. Trent Lott will step down as Senate Republican leader. The resignation came two weeks after Mr. Lott's remarks about Strom Thurmond's 1948 segregationist presidential bid touched off a national uproar. Tennessee Sen. Bill Frist is the front-runner to succeed Mr. Lott.

NAM Seeks $200B Tax Package to Boost Economy
The National Association of Manufacturers has proposed a $150 to $200 billion tax stimulus package. Leaders of the nation's largest industry trade association outlined a three-part plan for individual and corporate tax breaks. The plan includes acceleration of the 2001 individual tax cuts to become fully effective this Jan. 1, instead of the year 2006. It also seeks elimination or reduction of the double taxation on corporate dividends and a doubling of the "bonus" depreciation deduction for new business equipment, from 30 percent to 60 percent.

Political News
State medical aid needs big overhaul (opinion): Wisconsin State Journal, Dec. 20, 2002. Joint Finance Committee's to agree is the best course of inaction for now.

Helpful Inauguration will aid state youth: Eau Claire Leader-Telegram, Dec. 19, 2002. For the first time in state history, a nonprofit group will benefit directly from a gubernatorial inauguration.

PSC again gets to review state power line project: Eau Claire Leader-Telegram, Dec. 19, 2002. Stricter environmental safeguards, higher land costs and delay have jacked the price up.

Ethics Board clears Doyle: Madison Capital Times, Dec. 19, 2002. Says trip wasn't for campaigning.

Finance committee fails to agree on BadgerCare funding: Minneapolis Star-Tribune, Dec. 18, 2002. Rejected Gard’s effort to cut off new enrollment in BadgerCare on April 1.

Doyle appoints cabinet secretaries: Milwaukee Journal Sentinel, Dec. 17, 2002. Sen. Kevin Shibilski appointed as state tourism secretary.

State fails clean-air guidelines, group says: Green Bay Press-Gazette, Dec. 17, 2002. At issue are so-called “Title V” permit requirements.

When the northland speaks, Doyle listens: Ashland Daily Press, Dec. 17, 2002. As Doyle has traveled the state, he’s found that “people are really concerned about this budget deficit.”

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Upcoming Fundraisers
There are no fundraisers next week.