March 26, 2003

It’s been weeks since our last Tidbits. Recall, our computers were hijacked by a virus that thought it would be cute to send you all emails. We shut down our publications until we found a fix to avoid these problems in the future. Our solution is to use a different distribution protocol. We also took this opportunity to redesign our format. With this edition of Tidbits, we’re back on schedule for publication of Tidbits each week. We hope you like our new design.

On the downside, there has been a lot of activity in Madison that we need to catch up on. The primaries and Supreme Court race will be decided on April 1. On the policy front, the Joint Finance Committee continues its deliberations on the Governor’s proposal. We expect Joint Finance will do most of the heavy lifting on the budget, and that the budget for the first time in a while will be passed on time, before the July 4^th holiday. (We also predict the Badgers will prevail over Kentucky, so don’t put too much weight on our prognostications.)

Wisconsin Politics

Primary Election/Supreme Court Races Set for April 1
The primary election will be held on April 1 in conjunction with the non-partisan spring election and the general election is set for April 29. For the Legislature, primary candidates include:

• 24^th Senate District (Central Wisconsin; D-Shibilski seat): Democrats Julie Lassa (currently serving in the Assembly) and Alex Paul. Republicans Marcia Hendrickson, Brian Kurzynski, Donna Rozar, and Greg Swank.
• 18^th Assembly District (Milwaukee; D-Riley seat) Democrats Ted Kraig, Michel Brox, and Lena Taylor.
• 7^th Senate District (Milwaukee; D-Grobschmidt seat): Democrats Jeff Plale (currently serving in the Assembly), Joel Brennan, and Edwin Thaves.

Appellate Court Judge Patience Roggensack and Circuit Court Judge Edward Brunner also will face off on April 1 as voters decide who will replace retiring Justice William Bablitch, who has served on our supreme court for 20 years. To learn more about the candidates, see Jim Hough’s Supreme Court Candidates’ Profiles.

Assembly Passes Election Law “Reforms”
The Wisconsin State Assembly recently passed 10 bills that, if enacted by the Senate and signed by the Governor, would make various changes to laws governing elections in Wisconsin. While several of the bills are technical and will go unnoticed by most of us, there are several that are noteworthy and a couple of those that are controversial.

Voter ID – Under this proposal (AB 111), any person attempting to register or vote on election day, or attempting to obtain an absentee ballot, would be required to present either a valid Wisconsin driver’s license or a Wisconsin identification card issued by the Department of Transportation (DOT). If a person does not have a valid ID, he or she may be issued a “provisional” ballot but must provide a photo ID to the municipal clerk prior to 4:00 p.m. the day after the election for the vote to be counted. DOT would be required to provide the photo ID free of charge if requested for voting purposes.

Opponents have argued that this proposal increases administrative burdens of DOT, poll workers and municipal clerks and would be particularly cumbersome for elderly, disabled and minorities. Proponents point to the fact that identification is required for almost all customary business transactions and that the integrity of the important function of voting should require no less.

Presidential Primary Date – AB 112 moves up the date of the Presidential Preference Primary from the first Tuesday in April (the Spring General Election) to the first Tuesday in February (the Spring Primary Election). This proposal is intended to give “more meaning” to the Wisconsin Presidential Preference Primary by moving it ahead of several others around the country.

Delayed Release of Presidential Election Results – AB 113 prohibits the release of general election results of the vote for President and Vice President until 10:00 p.m. CST on election night. This is intended to prevent “predictions” before the polls have closed on the West Coast but would, of course, directly affect Wisconsin only. The media maintains its right to instant access.

Uniform Polling Hours – AB 114 would require that the polls at every election be open from 7:00 a.m. to 8:00 p.m. in all municipalities to avoid potential confusion and prevent people from arriving at a polling place an hour or two before the poll opens. The only expressed opposition relates to poll worker shortage, which is alleged to already exist.

Other Proposals

AB 115 permits declaration of write-in candidacy.

AB 116 prohibits a candidate from using any portion of Wisconsin Election Campaign Fund grants to make false representations.

AB 119 provides uniform reporting requirements including for campaign finance law registrants who do not maintain an office or street address within Wisconsin.

AB 120 requires judges to notify convicted felons that they no longer have the right to vote.

AB 121 directs the Elections Board to develop recruitment, training and compensation proposals for elections officials.

AB 123 relates to the federally enacted Help America Vote Act (HAVA) and permits the Elections Board to use federal aid to eligible counties and municipalities for election Administration.

Election Board/Courts act on Caucus Investigations
On Mar. 26, the State Elections Board dismissed the Donald Fish complaint relating to use of state resources on campaigns. Libertarian board member Adam Dick cast the lone vote opposing the dismissal. By a 7-2 vote, the Board also rejected a motion to refer the matter to federal and state officials. (Go to the Election Board web site for the meeting agenda and background materials.)

In the courts, Dane County Circuit Judge David Flanagan gave the prosecution until April 17 to file briefs on the defense's request to have three separate trials in the state's case against Sen. Chuck Chvala. Flanagan had previously expressed concerns that jurors could be confused given the number of charges and volume of witnesses and evidence. Chvala's attorneys asked the extortion charges be tried in October, employees campaigning on state time in March 2004, and campaign finance violations in June 2004. The prosecution wants all 19 counts tried at the same time.

Also scheduled for the fall are the cases against former Assembly Speaker Scott Jensen, Assembly Majority Leader Steve Foti, Rep. Bonnie Ladwig, and Foti staffer Sherry Schultz. Jury selection is scheduled for Sept. 29, with the trial on Oct. 7 in front of Dane County Circuit Judge Steven Ebert. (Go the Milwaukee Journal Sentinel Caucus web site for background articles.)

Surveys Identify Citizen Concerns on War, Taxes and Gambling
A recent Badger Poll conducted by the University of Wisconsin Survey Center, with media sponsors Milwaukee Journal Sentinel and Capital Times, indicates that more than two-thirds of residents polled believe the Legislature should vote on the Indian gaming compacts once they are negotiated. The poll was conducted between March 4 and 12. On other gambling-related questions, 58 percent of the residents support video gambling in taverns.

A Greater Milwaukee Association of Realtors Poll conducted by Public Opinion Strategies of likely voters in Milwaukee on March 3^rd and 4^th indicates that over 50 percent would rather see services cut than a property tax increase. Only 33 percent of respondents believe the city is headed in the right direction, with the top two issues being the economy and holding the line on taxes.

Wisconsin Public Radio and St. Norbert College Poll conducted March 6-14 indicated over half of Wisconsinites identified the war with Iraq as the most important problem facing the nation with only 36 percent believing that things in the country are going in the right direction.

Policy Developments

Joint Finance Budget Hearings in Full Swing
Earlier this week, the Joint Finance Committee held the first two of six public hearings on SB 44, the Biennial Budget Bill. On Monday, the committee met in Rhinelander, and on Tuesday, in Menasha. In Rhinelander, over 350 people were reportedly present; with over 500 attending the Menasha hearing. The testimony covered the gamut of budget issues, but generally focused on education, health care, and transportation funding.

Committee co-chair Sen. Darling took the opportunity to use recent Fiscal Bureau memos to drive home key policy points. For example, using a Mar. 25 LFB memo, Sen. Darling highlighted how state GPR spending has increased by 140 percent over the past 20 years compared to a 75 percent hike in the CPI. Other recent LFB memos relate to:

• Mar. 21 LFB Memo on Tax and Fee Modifications Included in the Governor's Budget Recommendations
• Mar. 19 LFB Memo (55 page PDF) on the Governor's Proposed Changes to State Financing of Public Elementary and Secondary Schools
• Mar. 17 LFB Memo on Use of One-time Funding in 2003-05 Budget Bill

The remaining hearings are scheduled from 10:00 a.m.-5:00 p.m. at the following locations:

• Monday, March 31: Milwaukee. Washington High School, 2525 North Sherman Blvd.
• Thursday, April 3: River Falls. River Falls High School, 818 Cemetery Road.
• Tuesday, April 8, Platteville, UW-Platteville Center for the Arts, 1 University Plaza.
• Wednesday, April 9: Madison. Room 412-E, State Capitol

DOA Offers Budget Modifications to JFC
Department of Administration (DOA) Secretary Marc Marotta offered a series of modifications to the Governor’s Budget proposal (SB 44) in a March 17 Letter to the co-chairs of the Joint Finance Committee (JFC). Marotta indicated that the modifications, if accepted by the committee, would increase the General Fund ending balance by $5 million. Highlights of the changes include:

Shared Revenue and Tax Relief – The budget bill allocates $10 million GPR in each fiscal year to the Medical Assistance appropriation for local costs related to emergency medical services, rather than the shared revenue appropriations, to reflect a Medicaid maximization strategy. An amendment is proposed that would estimate emergency medical service payments to specific communities and reduce shared revenue payments to those communities by an equal amount.

Temporary Assistance for Needy Families (TANF) – Based on a joint review by the Department of Administration, Department of Workforce Development and the Legislative Fiscal Bureau, $11.6 million in additional TANF revenues have been identified.

Employment Relations – The Governor proposes that state employees retain restoration and reinstatement rights to the agency that receives their employing unit or function after government reorganization.

Patients Compensation Fund – Clarify that the $200 million transfer from the fund is a one-time transfer, an amendment is proposed that would sunset the transfer provision on July 1, 2005.

Graduate Medical Education – SB 44 eliminates Medical Assistance reimbursement for direct and indirect graduate medical education expenses. An amendment directs the Department of Health and Family Services to amend the Medical Assistance state plan to reestablish reimbursement for graduate medical education starting with the third quarter of calendar year 2005.

Pharmacy Purchasing Pool – The proposed change broadens the pool to allow the inclusion of individuals in the pharmacy purchasing pool.

Northern Wisconsin Center – Based on further analysis by the Department of Health and Family Services, GPR savings associated with downsizing this facility should be revised downward from $4.6 million to $2.2 million.

Brownfields Grant Program – SB 44 creates a new consolidated Brownfields Grant program in DNR, but there are insufficient funds under existing law (2003 Wis. Act 1) to fund grants for FY 2003. DOA proposes an amendment to allow DNR to review the applications received by Commerce in October 2002 (brownfields grants) and January 2003 (greenspace grants), rank them under the current ranking structure, and make awards to eligible applicants from the funding provided for the 2003-05 biennium. Future applications would be made and reviewed under the new program.

Republicans to Target Rising Heath Care Costs
On Mar. 26, Sen. Darling, co-chair of the Joint Finance Committee (JFC), announced that the Republicans will form a special committee in an effort to address rising health care costs. She made the announcement during JFC’s briefing by DHFS Secretary Helene Nelson. Part of the objective is to lessen the financial burden health care costs have on the state budget.

In other health care developments, Wisconsin Manufacturers & Commerce issued a WMC Health Care Alert on the need to maintain current law that requires DH&FS to collect, analyze and disseminate health care data from health care providers. The Wisconsin Medical Society also announced its plan that “leads to affordable, high-quality health care coverage for every Wisconsin resident.”

Governor Capital Budget Approved (Mostly); UW Projects on Hold
The state Building Commission this week approved the majority of Gov. Doyle's $801 million Capital Budget (216 pp. PDF) for 2003-05. The UW System seems to have taken the biggest hit. The University System can finish the 30 projects underway but will not be able to start any new projects over the next two years. Building Commission staff highlighted the economic impact of the state building plan including:

• The State Building Program provides economic development benefits through construction expenditures and by providing facilities that support activities that encourage economic development in the state;
• Approximately 50 percent of project construction budgets are labor costs;
• Construction spending is estimated to have a 2.0 to 2.2 multiplier – for each dollar of construction related spending $2.20 in direct and indirect economic activity is generated;
• Maintenance projects provide a rapid benefit to the economy because they move from drawing board to construction in a relatively short time period;
• Funding for several large building projects (BioStar and the Medical College of Wisconsin Biomedical Research and Technology Incubator) that promise long-term economic benefits for the state will become available in FY 2004.

Governor Creates Homeland Security Council
Governor Jim Doyle announced the creation of a Governor’s Homeland Security Council to coordinate and direct the state’s efforts to prevent and respond to potential attacks in Wisconsin. The Governor appointed Major General Albert Wilkening, Adjutant General of the Wisconsin National Guard, to chair the council and serve as the Governor’s Homeland Security Advisor. Other members of the council include:

• Ed Gleason, Administrator of Wisconsin Emergency Management
• Jim Warren, Administrator of the Division of Criminal Investigation in the Department of Justice
• Ken Baldwin, Administrator and state health officer in the Division of Public Health at the Department of Health and Family Services
• Mike Metcalf, Chief of the Wisconsin State Capitol Police
• Dave Steingraber, Executive Director of the Office of Justice Assistance
• David Collins, Superintendent of the Wisconsin State Patrol

Senate Homeland Security Committee Chair (and former fire chief) Ron Brown asked the Governor to recognize the important role of first responders by including them on the council.

Federal Development

Domenici Releases Electricity Reform Proposal
Senate Energy and Natural Resources Chairman Pete Domenici (R-NM) released draft electricity reform language as part of a broader energy policy package he is likely to move this spring. The draft, distributed to committee members, would create a voluntary network of regional electricity regulatory agencies, repeal the Public Utility Holding Company Act and create a set of new market transparency and competition measures designed to reduce illegal market manipulation, among other provisions.

Hatch and Leahy call Asbestos Summit
Senate Judiciary Chairman Hatch and ranking member Patrick Leahy, D-Vt., have agreed to participate in an asbestos litigation "summit" proposed earlier this month by Sen. Christopher Dodd, D-Conn. Their goal is reach a consensus on a reform bill this year.

Class Action Reform on Committee Agenda
Senate Judiciary Chairman Hatch intends to put class action reform legislation on the committee's markup agenda in the next couple of weeks.

Bankruptcy Bill Wins Passage In House
The House voted 315-113 to pass an overhaul of the nation's bankruptcy laws. H.R. 975, known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2003, amends federal bankruptcy law, including provisions relating to:

• Conversion of bankruptcy petitions
• Abusive creditor practices
• Domestic support obligations
• Consumer protections, including protection of personally identifiable information
• Measures to discourage bankruptcy abuse, including reduction of the homestead exemption for fraud
• Guidelines for general and small business bankruptcies, including appointment of a committee of retired employees
• Bankruptcy data dissemination and bankruptcy tax provisions
• Ancillary and other cross-border cases to incorporate the Model Law on Cross-Border Insolvency
• Financial contracts and transfers entered into with an insolvent insured depository institution before its conservatorship or receivership.

Senate defeats ANWR
Senate Democrats stripped Arctic drilling language from the FY 2004 budget resolution. The House will likely include the provision, which would open the Arctic National Wildlife Refuge to oil exploration in this year's House energy policy bill. The vote was 52-48, as 43 of the Senate's 48 Democrats and eight of the 51 Republicans backed the anti-drilling amendment joined by independent Sen. James Jeffords of Vermont.

Report: Social Security Stronger but Medicare Troubles Escalate
While the Social Security trust fund is slightly stronger than it was a year ago, the Medicare program is four years closer to insolvency according to the Social Security and Medicare trustees annual report.

Upcoming Fundraisers

Thursday, Mar. 27:

• Rep. Steve Freese (R-Dodgeville), Spring Green, 5:30 p.m.