100-Day Legislative Agenda Unveiled
Assembly Speaker John Gard and Senate Majority Leader Scott Fitzgerald have unveiled a job-centered legislative agenda for their first 100 days in session next year. The nine-point plan addresses the following issues.
1. Freeze property taxes for three years.
2. Tax free health savings accounts.
3. Eliminate the tax in health insurance premiums
4. Regulatory Reform - Job Creation Act Part 2.
5. Research and Development Tax Credit "2020 credit"
6. Expand the health care co-op program
7. Expand workforce training and retraining programs at tech colleges
8. Rural Finance Authority
9. Uniform Training Standards
Contact a Hamilton Consulting Group lobbyist for further information on this important economic development agenda.
PSC Allows SBC Fees Charged to Competitors to be Increased
On Thursday, September 30, the Wisconsin Public Service Commission (PSC) gave initial approval to SBC to raise fees it charges to competitors that lease its lines. Under the Telecommunications Act (1996), SBC is required to lease out its lines to competitors in exchange for the right to offer long distance service. The lines in question are typically the so called “last mile” wire to homes and businesses.
Proponents suggested that SBC was subsidizing other local telephone companies to its competitive disadvantage while opponents argued that SBC was fairly compensated and that the new rates amount to a subsidy for SBC. The PSC portrayed the new rates as fair and balanced. (Similar decisions have occurred in Michigan, Illinois, Indiana and California.) The Wisconsin increase is, however, substantially below what SBC argued was necessary to cover their costs.
The PSC will issue a final, written order in mid-October when the new rates (estimated to be between 13% and 20%) will go into effect.
Natural Resources Board Approves DNR Budget Proposal
At its Sept. 22 meeting in Sturgeon Bay, the Natural Resources Board approved DNR’s 2005-2007 Biennial Budget request. (76 Pages, PDF) According to DNR Sec. Hasset, the two-year budget includes an increase of $49.9 million over the 2003-05 Biennial Budget, but with no net increase in the Department’s complement of 2,824 full time equivalent staff positions.
The Hamilton Consulting Group’s preliminary review of the 76-page budget document identified no meaningful increases in industrial fees, such as the air emissions fees used to fund the Department’s air permit program. (This was a concern in light of EPA’s Notice of Deficiency relating to the funding of the air permit program.) However, DNR does have a preliminary proposal that they may advance with the Legislature, which is not contained in its current budget proposal, to fund an information technology initiative as part of its Air Permit Improvement Initiative. The proposal is to use most of the $4 million surplus being generated by air permit construction fees. Contact Bob Fassbender if you have questions on this initiative.
PSC Finalizes its Strategic Energy Assessment
The Public Service Commission of Wisconsin recently released its final Wisconsin's Strategic Energy Assessment. (219 Pages, PDF; Executive Summary, 15 Pages) Some highlights include:
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Electric demand is expected to grow by 2.5 percent (about 375 MW per year or by the equivalent of about one major power plant every two years)
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The state’s major utilities and independent power producers have embarked on a substantial $4.33 billion generation construction program through the planned construction of over 3,600 MW of new generating facilities. These projects include:
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$600 million for the two new WEPCO Port Washington gas-fired units
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$2.15 billion for the two new WEPCO Elm Road baseload coal units plus new common facilities
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$800 million for the proposed WPSC Weston 4 baseload coal unit
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$490 million for environmental improvements for WEPCO
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$155 million for Alliant Energy’s purchase of Sheboygan Power LLC
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$110 million for MGE’s West Campus Cogeneration Facility project at the University of Wisconsin-Madison
In a related issue, on Sept. 23, PSC granted a Certificate of Public Convenience and Necessity on the application proposed by Wisconsin Public Service Corporation (WPS) to construct a new coal-fired electric generating facility called Weston Unit 4.
Audit Bureau Recommendations for Medical Assistance Program
The Legislative Audit Bureau has completed an evaluation (Executive Summary, 4 pages, PDF; Full Report, 68 pages, PDF) of Wisconsin’s process for determining eligibility for Medical Assistance program benefits. The Bureau’s recommendations address the need for DHFS to:
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Report to the Legislature regarding CARES programming changes that could reduce the possibility of eligibility determination errors;
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Make a number of changes to the mail-in application form to improve its ability to collect complete and accurate information, and to better inform applicants of their responsibility to report required changes in their circumstances;
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Clarify policies regarding when county eligibility determination workers can request documentation of income, and grant them greater discretion in requesting such documentation when they believe it is needed;
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Revise its program integrity policies to be consistent with state statutes;
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Report to the Legislature regarding its plans to address program integrity needs;
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Recommend legislation to revise state statutes to make the circumstances under which benefit overpayments may be recovered from recipients consistent with the statutory definition of Medical Assistance fraud.
Clean Air Act Update
The Hamilton Consulting Group is working with Wisconsin Manufacturers & Commerce (WMC) on its upcoming seminar: Clean Air Act Update 2004 – Developments Impacting Wisconsin Industry & Communities.
Speakers include Wisconsin DOJ’s Deputy Attorney General Dan Bach on the AG’s enforcement policies, including their novel “environmental nuisance” suits being launched in state and federal courts. (This prospect of being sued for nuisance despite being in full compliance has caught the eye of industry groups across the country.)
Other seminar highlights include:
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The latest from EPA Region V Administrator Bharate Mathur on the Bush Administration’s new Clean Air Act initiatives relating to ozone, mercury, fine particles, and pollution transport.
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DNR’s plans to overhaul its air permitting program and related reform efforts.
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Industry’s perspective on how the Job Creation Act will provide real regulatory relief for Wisconsin’s business community.
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Updates from state regulators and industry experts on the implementation of new and expanding federal and state air programs, including EPA’s and DNR’s New Source Review programs and Wisconsin’s Implementation of the new 8-hour ozone standard.
The seminar will be held on Thursday, October 28, 2004, at the Best Western Midway Hotel in Brookfield, Wis. Go to WMC’s Clean Air Act Update web page for further information.
Contact Hamilton Consulting Group’s Bob Fassbender who will provide an overview of Wisconsin’s expanded air toxics program and new mercury emissions rule at the seminar.
Governor Doyle Announces Emergency Response Appointments
Gov. Doyle recently announced appointments to the Wisconsin Citizen Corps Council. The governor signed an Executive Order creating the council on Sept. 9, 2004. The council will help train Wisconsin citizens on how to effectively supplement the state's professional police, fire, emergency management, public health, and public safety capabilities in order to build safer communities and help prevent, prepare, and respond to emergencies at all levels.
Gov. Doyle also announced the appointment of Johnnie Lee Smith as the Administrator of Wisconsin Emergency Management. Smith will be replacing Ed Gleason, who resigned effective September 1, 2004.
In a related development, Gov. Doyle announced that newspaper readers throughout the state will receive a booklet containing valuable information on emergency preparedness.
Brownfields Grant Applications Available
DNR recently announced the availability of Brownfields Site Assessment Grant Applications. The DNR Brownfields Site Assessment Grant (SAG) program has $1.7 million in available funding to help local governments jump start environmental activities at brownfields properties.
DNR notes that the funding has helped local officials begin investigation and cleanup at 742 acres in 103 communities across the state since 1998. These activities included more than 340 site assessments and investigations, the removal of 197 underground storage tanks and the demolition of nearly 261 structures and buildings. Applications are due Nov. 12, 2004. For more information about the SAG program, including the new application and revised grant criteria, please visit the DNR Remediation and Redevelopment Program.
WISTAX Report Details Municipal Spending
A report from the Wisconsin Taxpayers Alliance, "Perspectives on City Finances," details per-capita growth in operating budgets and capital spending over a five-year period, as well as growth in general government, street maintenance and public protection costs in Wisconsin cities with a population over 10,000.
According to the report, general government spending rose 24.2 percent in 218 cities and villages during the period, to $190.5 million. Increases in the other expenditure categories were: law enforcement (up 23.2%, to $479.0 million); fire-ambulance spending (20.7%, to $309.2 million); and street maintenance (12.5%, to $254.1 million). Comparative spending (spending in all four expenditure categories examined in the study) rose 20.4% from 1998 to 2002, to $1.23 billion, noted WISTAX.
DPI Budget Proposal Would Increase State Spending
A proposed budget released by Wisconsin's top education official would increase state spending on schools by about $211 million the first year of the 2005-'07 budget cycle, and by about $165 million the second year.
State Superintendent Elizabeth Burmaster recently released the 2005-07 Biennial Budget Request, which calls for an average annual increase of 3.4 percent to fund increased investments in small-class sizes through the Student Achievement Guarantee in Education (SAGE) program; early learning through 4-year-old kindergarten; rural schools, libraries, and communities; programs for English-language learners; special education; and libraries. The state superintendent’s budget calls for an increase in overall school aids of 4 percent in the first year and 3 percent in the second year of the 2005-07 budget.
Tax Climate for Paper Industries to Improve
A recent study by the Department of Revenue projects that once several recently enacted initiatives are implemented, the tax climate for paper companies here will dramatically improve.
The new sales tax exemption that becomes effective in 2006 will allow purchases of fuel and electricity used in manufacturing to be tax exempt at the time of the sale. Wisconsin will also begin phasing in the Single Sales Factor Apportionment formula next year. Together, these initiatives will result in Wisconsin being a more favorable destination for businesses, including paper.
Results Encouraging as Result of 0.08
A preliminary analysis of Wisconsin crash data conducted by the Wisconsin Department of Transportation (WisDOT) indicates that alcohol-related crashes, injuries, and fatalities were significantly reduced in the first nine months since 0.08 took effect.
Wisconsin was the 43rd state to enact a 0.08 law. Now, all 50 states have a 0.08 blood alcohol level for first offense impaired driving. By enacting 0.08, Wisconsin has received approximately $3.7 million in federal incentive funds for highway safety programs. |
