Civil Trial Counsel of Wisconsin - Political Tidbits February 14, 2003

February 14, 2003

Gov. Jim Doyle will unveil his 2003-05 Biennial Budget Bill next Tuesday evening before a joint session of the Legislature. Doyle and his Administration have played it pretty close to the vest in crafting the budget, so we have few details at this time on how the Governor will propose to fill the $3.2 billion budget hole. Yet, Doyle ran his campaign on a no-tax pledge and has given every indication that he intends to keep his promise. So we generally expect large cuts to programs and state agency budgets. Stay tuned for a Special Edition Political Tidbits on Wednesday outlining the key provisions in the Budget Bill.

Legislative action on the state employee contracts and the special session budget was certainly a harbinger of difficult times to come. Citing fiscal constraints, the Legislature on Thursday rejected the previously negotiated state employee contracts, raising the specter of job actions by the unions. Also on Thursday, the Joint Finance Committee kicked out Special Session SB 1, altering Gov. Doyle’s proposal with a $9 million in additional reductions, leaving this year’s budget shortfall at $283 million.

Wisconsin Politics
Legislature Sends State Employee Contracts Back for Renegotiation
After six hours of often tense testimony, the Joint Committee on Employment Relations (JCOER) voted along party lines (5-2) to send the 15 pending state employee contracts back for renegotiation. Some union officials say they will not return to the bargaining table for contracts that were previously negotiated with the Department of Employment Relations and ratified by the unions. Some expect job actions as a result of Thursday’s vote.

Due to the current fiscal crisis, some policymakers and legislative leaders believe the contracts need to be renegotiated to reflect the current fiscal challenges that face the state. Union representatives see this as a breach of the agreement and a distortion of the negotiating process. Governor Doyle has indicated he has built enough money into his upcoming budget proposal for the two-year period beginning July 1 to cover the contracts.

According to a recent Legislative Fiscal Bureau Memo, the contract extensions would cost an additional $66 million for the two-year period ending June 30, 2003 and $124.7 million during each fiscal year of the upcoming two-year budget.

Policy Developments
Joint Finance Action on Governor’s Deficit Repair Bill
The Joint Finance Committee acted on Governor Doyle’s Special Session Senate Bill 1 (SS SB 1) on Thursday and passed the bill, as amended, out of committee on a party-line 12-4 vote. The bill could be taken up by the full Legislature on February 20th.

The special session bill was introduced to help address the projected revenue shortfall in the current fiscal year (2002-2003), which is estimated at $373 million. Under the Governor’s proposal, a net total of $81 million in GPR cuts, Program Revenue lapses to the General Fund and Segregated Revenue transfers to the general fund would reduce the year-end imbalance to $292 million.

In summary, the Republican controlled Joint Finance Committee amended the bill as follows:

Incorporating an additional one percent cut in GPR-supported agency budgets (roughly $8 million) (Motion # 45);
Increasing Program Revenue lapses to the general fund by roughly $12 million (Motion # 48), and;
Increasing Segregated Revenue transfers to the general fund by roughly $10.5 million. (Motion #49).

The primary debate focused on the Governor’s proposal to transfer $22 million from the segregated transportation fund to the general fund. On a party-line vote of 12-4, Motion # 46 was adopted to keep the $22 million in the transportation fund. That debate will likely continue as the bill heads to the floor of the Senate for expected action next week.

Rep. McCormick Circulates Government Health Insurance Reform Draft
Rep. Terry McCormick announced that she is circulating a draft bill for sponsorship. The bill is a compilation of the reform provisions reached through the work of the Task Force on Local Government Health Partnerships, which she spearheaded. The legislation specifically addresses health plans offered by local government employers. The bill proposes the following:

Collective Bargaining

Local government employers, except school district employers with respect to their professional employees, are prohibited from collectively bargaining over health benefit plans if it enrolls in a plan offered by the state group insurance board or offers a plan that is “substantially similar” to the group insurance plan offered by the board. OCI will develop rules to determine “substantially similar” plans.

Local units of government are allowed to change health care benefit plan providers unilaterally, without consent of bargaining unit, as long as benefits are substantially similar to the current benefit plan. Any savings created must be used to increase wages of employees affected by the change.

Group Insurance Board

Requires arbitrators to consider wages, hours, and conditions of employment as a whole rather than as individual element in contract and benefit negotiations.

The Group Insurance Board is required to issue a report on the feasibility of offering plans with three different cost levels and a low cost health insurance plan that provides catastrophic coverage.

The Department of Employee Trust Fund (DETF) is required to make reimbursement accounts available to local government employers and employees.

DTEF is required to offer long term care coverage to employees of local units of government and their employees.

Prescription Drug

Requires the Department of Administration to establish an interagency task force to conduct a feasibility study on the formation of a state pool for the bulk purchasing of prescription drugs.

Claims Experience

Requires the Commissioner of Insurance (OCI) to promulgate an administrative rule developing a uniform form that an insurer must use in disclosing aggregate health care claims.

Requires insurers that provides aggregate experience claims data to local governmental units, also must provide information to the department of electronic government (DEG). DEG is required to make information available to the public.

OCI must develop a uniform form that a local government must use to solicit bids. Insurers are required to use form to submit bids and must share all bids with the Department of Electronic Government where all bids will be posted on the internet.

Bid Solicitation

Requires OCI to develop a uniform form for local government health coverage solicitation; requires insurers to use forms to submit bids and requires DEG to make the information available to the public.

Federal Developments
Lawmakers Propose Association Health Plan Bill
A bipartisan group of lawmakers introduced the "Small Business Health Fairness Act” that will help small businesses provide healthcare coverage under Association Health Plans. The bill is sponsored by Sen. Jim Talent, R-Mo. and House Education and the Workforce Chairman Boehner. The Small Business Health Fairness Act would give small businesses more power to create group insurance plans. NFIB launched a new lobbying campaign today, starting with an informational website: www.APHsNow.com

ABA Backs Class Action and Asbestos Litigation Reform
The American Bar Association is on record supporting expansion of federal court jurisdiction over class action litigation. The group is backing a proposal by Finance Chairman Senator Grassley (R-IA) and Sen. Herb Kohl (D-W).

The ABA also voted to approve a resolution requiring asbestos litigants to meet certain medical criteria in order to file suit for compensation. The ABA's formal
endorsement of the reforms provides important momentum to reform efforts.

The Senate Judiciary Committee is planning a March 5 hearing on asbestos litigation reform legislation.

Business Roundtable Proposes Climate Control Initiative
The Business Roundtable proposed its Climate RESOLVE project, which is designed to encourage businesses to voluntarily reduce greenhouse gas emissions.

H2-Grow Act Introduced
Sen. Ron Wyden, D-Ore., and Rep. Christopher Cox, R-Calif., introduced legislation to pave the way for making hydrogen-powered cars a plausible means for reducing U.S. reliance on oil-based fuels. The "H2-Grow Act" provides for a series of tax incentives to ease consumer and industry concerns about the change. Related press releases: Wyden Release; Cox Release.

Political News
State workers' contracts rejected: Milwaukee Journal Sentinel, Feb. 14, 2003. Lawmakers tell Doyle to renegotiate deals for 31,000 jobs.

Federal budget passage affects Fox Valley: Appleton Post-Crescent, Feb. 14, 2003. Dental clinic, FVTC will get contributions.

Panel rejects state labor contracts: Appleton Post-Crescent, Feb. 14, 2003. State cannot afford pay raises; job action threatened.

State labor pacts rejected: Wisconsin State Journal, Feb. 13, 2003. 5-2 vote party-line vote by the Joint Committee on Employment Relations.

Panel trims just $9 million more from state budget: Wisconsin State Journal, Feb. 13, 2003. Legislature's Joint Finance Committee voted to increase the across-the-board cuts to 6 percent.

Doyle won't cut tax credits: Milwaukee Journal Sentinel, Feb. 13, 2003. State officials say some fees are likely to rise.

Campaign finance reform opposed: Milwaukee Journal Sentinel, Feb. 13, 2003. Ed Thompson, ACLU, manufacturers all find fault with measure.

Ellis campaign reform plan gets hearing: Appleton Post-Crescent, Feb. 13, 2003. Taking steps to level the playing field in elections.

Supreme Court candidates speak out: Madison Capital Times, Feb. 13, 2003. They touch on issues, deride rivals.
Doyle vows to protect citizens: Manitowoc Herald Times, Feb. 13, 2003. Governor: Despite cutbacks, state will provide assistance.

Budget grappling previews big fight: Milwaukee Journal Sentinel, Feb. 12, 2003. Lawmakers wrestle with plan to fill this year's $454 million deficit.

Legislators would set good example by refunding raises (opinion): Oshkosh Northwestern, Feb. 12, 2003. State Rep. Mike Powers of Green County has our admiration.

Rep. Powers tries to run legislative office with no staff: Wisconsin State Journal, Feb. 11, 2003. More than 20 state legislators have forsworn pay raises.

Municipalities bracing for likely reduction in shared revenue: Milwaukee Journal Sentinel, Feb. 11, 2003. State budget cuts could force drop in services, more property taxes
Legislators face old problem of budget crunch: Sheboygan-Press, Feb. 11, 2003. Budget crunches discussed at the monthly meeting among county officials and this area’s lawmakers.

Federal act means statewide voter lists: Daily Reporter, Feb. 11, 2003. Creating list could cost Wisconsin millions.

Budget pain could soon hit home: Milwaukee Journal Sentinel, Feb. 11, 2003. Reduced services, higher property taxes, user fees may result from deficit.

Supreme Court candidate touts appellate experience: Eau Claire Leader-Telegram, Feb. 11, 2003. Roggensack wants to improve the Supreme Court’s efficiency and relevance to people.

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Upcoming Fundraisers
Tuesday, Feb. 18

US Rep. Ron Kind (D), Madison, 5:00 p.m.

Thursday, Feb. 20

Joel Brennan (Dem. candidate for 7th S.D.), Milwaukee, 5:00 p.m.

Friday, Feb. 21

Republican Party of Dane County, Madison, 5:00 p.m.