| Wisconsin’s Tax Burden
Fourth Highest, Says New Study
A new study, released July 3 by the Wisconsin Policy
Research Institute, asks if Wisconsin’s tax burden
is too high. Authored by Todd Berry and Dale Knapp
of the Wisconsin Taxpayers Alliance, the report
was the first to compare Wisconsin’s tax burden to that
of other states. Using year 2000 data, the study
confirmed Wisconsin is indeed a high tax state,
revealing that Wisconsin collected the fourth highest
amount of taxes ($2.4 billion, or 12.9 percent of
the states personal income) in the nation that year.
Inquiring into Wisconsin’s tax system, the study
looks at Wisconsin’s history of
expenditures for infrastructure in areas such as
public education and roads. Additionally, the study
looks at how the state shared revenue program operates
to fund localities, inquiring if state and federal
aid to smaller communities is too high, creating
incentives for smaller communities to continue developing
new programs without having to raise local taxes
to fund them.
The report was released
last week, as final action on the state budget is
being considered. (See Todd Berry and Dale Knapp’s
executive
summary on the report. Also see a related
news article, detailing Wisconsin’s tax comparison with
other states.)
Proposal for Live Private
Broadcast at Capitol Moved Forward By Assembly
On July 8, the Assembly Committee on Electronic
Democracy and Government Reform met to discuss a
proposed venture by WisconsinEye, a private telecast
company with major partners Charter Communications
and Time Warner. The company would like to acquire
the exclusive rights for development of private,
cable-based television coverage of legislative,
and executive Capitol activity. (Essentially, a
Wisconsin C-Span type programming.) After lengthy
discussion, the committee voted to have the Legislative
Technology Service Bureau develop a notice, effectively
amounting to a Request for Proposal (RFP), soliciting
public comment on WisconsinEye’s proposal and requesting
bids from any other entity which may wish to compete
with WisconsinEye for television rights.
So far, the Senate and
the Supreme Court have been publicly silent on the
issue – although neither one yet allows camera coverage
of its actions. (The Assembly has allowed live internet
coverage of its floor sessions since 2001.)
Following RFP results,
the Department of Administration (DOA) would make
a recommendation to the Governor, who has the authority
to approve or deny the proposal. Such action is
not anticipated soon since the DOA expressed remaining
concerns over the concept of giving a private company
exclusive televideo access to the public events
of the state Capitol.
To learn more about WisconsinEye,
go to their website.
Ozone Recommendations
Due Next Week
Economic developers, local officials, and industry
are focusing attention on the DNR and Governor as
the state considers nonattainment recommendations
it will submit to EPA next week regarding compliance
with the new 8-Hour ozone standard. Areas designated
“nonattainment” would be subjected to environmental
regulatory efforts to pull the area into compliance
(or “attainment”). Such regulations would be tough
on industry, and could significantly impair economic
development.
In 2002, the Supreme Court
upheld the EPA’s new ozone standard. The first step
in implementing the standard is designating which
areas are or are not currently in compliance with
the new standard. The Governor’s recommendations,
due to EPA by July 15, regarding area compliance
or noncompliance are deemed to be influential on
EPA’s final designations, expected in April, 2004.
Wisconsin Supreme Court Overrules
Edgerton Decision
In an opinion written
by former Assembly Speaker David Prosser, the Wisconsin
Supreme Court overruled its landmark Edgerton
decision. In
1994, the Wisconsin Supreme Court ruled in City
of Edgerton v. General Casualty Co. of Wisconsin
(184 Wis. 2d 750, 517 N.W.2d 463 (1994)), that insurers
had limited liability, under the standard Comprehensive
General Liability (CGL) policy, in relation to the
federal Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA), otherwise known as “Superfund.”
In that case, a divided court interpreted that CGL
policy did not give a right of indemnification to
an insured against their insurer for environmental
clean-up costs associated with a CERCLA order. (For
this holding, the Court relied upon its interpretation
that “clean-up costs” under CERCLA did not constitute
“damages” under CGL, but rather, the costs were
equitable relief.) Edgerton held further
that issuance of a Potentially Responsible Party
(PRP) letter or order from the State or an equivalent
state agency (e.g. DNR) did not constitute a “suit”
sufficient for an insurer to initiate a defense
on behalf of the insured.
Today’s Supreme Court
ruling, Johnson Controls,
Inc. v. Employers Ins. Of Wausau., overrules
Edgerton, and remands the case back to circuit
court. The Court vacated its earlier interpretation
on both the damage and the PRP order issues, and
sent the case back with orders that CERCLA clean-up
costs can be considered “damages” within the meaning
of CGL policy, and a CERCLA clean-up order, issued
by the state, does constitute an state action sufficient
to require an insurer to initiate a defense on behalf
of the insured.
0.08 Blood Alcohol Content
(Drunk Driving) Law Adopted by Legislature
In an extraordinary session last week, the Senate
(July 1) adopted engrossed bill AB 88
with one amendment, lowering the legal blood alcohol
concentration for a motor vehicle operator; the
Assembly (July 2) approved SA 1
to AB 88 by a vote of 69-18. On July 3, Governor
Doyle signed the bill, paving the way for Wisconsin
to receive federal incentive money totaling approximately
$2.2 million in the coming year. He congratulated
both Republican and Democrat lawmakers for working
together towards passage of the bill.
Wisconsin will receive the money
after the bill becomes effective on Sept.3, 2003.
During budget action, the incentive money was earmarked,
by adopted motion
471, for the creation and implementation of
an Enhanced Mobility pilot program for improving
the safety and independence of Wisconsin’s aging
driver population.
The Hamilton Group has
provided a comprehensive
update detailing the Enhanced Mobility Driving
Pilot Program, providing background information,
and listing the Coalition members responsible for
developing the proposal.
Gundrum Introduced “Drugged
Driving” Bill
On July 1, Rep. Mark Gundrum (R-New Berlin) and
Sen. Sheila Harsdorf (R-River Falls) introduced
legislation meant to toughen Wisconsin’s “drugged driving” laws.
Gundrum’s bill, dubbed the ‘Baby Luke’ bill, was
developed to strengthen current Wisconsin law prohibiting
drugged driving. (See the Rep’s. press
release describing the bill.)
The bill would make it
easier to prosecute individuals who drive while
under the influence of Schedule I illegal drugs
by requiring only a showing that the driver did
have a Schedule I illegal drug in his or her system
without any other corroborating evidence.
Public Service Commission
Endorses SBC’s Bid for Wisconsin Long Distance
On July 2, the Public Service Commission (PSC) announced
it had approved SBC’s application to provide long
distance service in Wisconsin. SBC, formerly known
in Wisconsin as Ameritech, Wisconsin Bell or Wisconsin
Telephone Company, has long provided Wisconsin residents
with local access. The PSC’s ruling, supporting
SBC’s application to compete in the long distance
market, was based on the policy of fostering more
competition and, therefore, resulting in greater
value for Wisconsin consumers and businesses. |
