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The determination by the State Senate not to address a proposed constitutional amendment to control the growth of government spending this summer means that, barring an unforeseen crisis, the Legislature will not be back in session until January 2005. The primary attention and focus over the next several months will be on the development of a proposed state budget for 2005-07 and the elections scheduled for September (Primary) and November (General).
Tidbits will monitor significant activity within the various state agencies as they struggle to develop their respective budgets in another tight fiscal atmosphere. We often hear about “the need to keep policy out of the state budget.” That comment is aimed at policy items that may get included in state budgets that have no fiscal impact on state or local finances and should be addressed in separate legislation. In fact, there is no more significant policy enactment than adoption of the state budget even without the “pure policy” items. Input into that process is probably never-ending and the June to October timeframe in the even-numbered years among the most critical.
Tidbits will also continue to report on election activity with emphasis on open seats and those races that are expected to be the most competitive. After the July filing deadline, we will begin to provide background information on key races and the candidates.
| Policy Developments |
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No Vote on TABOR; Referendum Delayed; Tax Freeze an Election Issue
The State Senate has put an end to speculation regarding an extraordinary session this summer to consider a proposed constitutional amendment on controlling the growth of government spending (TABOR) or reenactment of a “tax/levy freeze”. Discussion among Senate Republicans led to the conclusion that the timing for consideration of a constitutional amendment as a way of controlling spending was not right at this time.
Senate Majority Leader Mary Panzer said that the long-term solution is to propose a constitutional amendment to the people of the state. “We’re taking our ideas for a taxpayer’s bill of rights directly to the voters over the next several months, and we’ll listen to what they have to say. We’ll use that feedback to craft the best proposal and take it up in our next legislative session.”
The Assembly, on the other hand, seemed more eager to address both the constitutional amendment and a new tax freeze this year. After numerous caucuses and some public differences on the best approach, there was some indication that Assembly Republicans may have been near a consensus and were anxious to move on the constitutional amendment, although no final proposal was released.
A constitutional amendment must be approved by two consecutive sessions of the Legislature before being put before voters in a statewide referendum. A favorable vote this summer would have allowed the next Legislature that convenes in January to take the second vote next year, meaning the referendum could have occurred in 2005. Now, the earliest a second legislative vote could occur would be at the start of the 2007-'08 session.
While there will not be a vote on a “new” tax freeze proposal, expect the issue to be very prominent in the upcoming state elections. A “tax freeze” was adopted as part of the state budget; was vetoed by the governor; and Democrat votes prevented an override.
Mercury Emissions Rule Approved by Natural Resources Board
On June 23, the Natural Resources Board approved revisions to DNR’s controversial rule regulating mercury emissions from the largest utilities in the state. The rule calls for a 75 percent reduction in mercury emissions by 2015 from the four largest utilities – WE Energies, Alliant Energy, Wisconsin Public Service Corp., and Dairyland Power. The revised rule now goes back to the Senate Environment and Natural Resources Committee and the Assembly Natural Resources Committee. In August 2003, these committees rejected the previous version of the rule that was adopted by the board on June 25, 2003. Since it’s a return visit to the Legislature, the committees have only 10 days from referral to act on the newest version of the rule.
Although the rule targets emissions from utilities, organizations that represent utility ratepayers such as Wisconsin Manufacturers & Commerce (WMC) had a keen interest in the rule. In addition to rate impacts, WMC and legislators also had an interest in assuring the revised rule was consistent with provisions in the Jobs Creation Act relating DNR’s authority to implement state mandates that are more costly than federal standards. (See Hamilton Consulting Group’s Jobs Act summary) Ultimately, the affected utilities and WMC removed their opposition to the rule upon an agreement that the state rule would give way to the federal standard once promulgated. While the Senate and Assembly committee chairs acknowledged the importance of these modifications (see Johnsrud/Kedzie release), it is unclear at this time whether those changes are sufficient to garner legislative approval of the rule.
Key links:
Ruling Invalidates DOT Revisions of Trans 233
A Dane County Circuit Court has ruled against the Department of Transportation’s revisions of Trans 233, invalidating many changes made to the rule since 1999. The suit focused on property abutting state trunk or connecting highways.
The court held that amendments to Trans 233 “were not and are not expressly or impliedly authorized by the enabling statutes cited by DOT.” The court also ruled that the 2001 amendments “suffer the same invalidating characteristics” and that provisions relating to setback areas and special exceptions that were not present in the rule prior to the 1999 revisions “are invalid for violating the state and federal prohibitions against public takings without the payment of just compensation therefore.”
Trans 233 has been controversial since its enactment and major parts of the rule were suspended by the Legislature’s Joint Committee for Review of Administrative Rules earlier this year. The court’s ruling may be appealed and/or DOT can consider a re-write of the rule to attempt to respond to legal, policy and political concerns.
Listening Sessions to Solicit Input on Act 255 (SB261)
The Dept. of Commerce has scheduled four listening sessions on provisions of Act 255, which creates a mechanism to promote capital investment and technological entrepreneurship in Wisconsin. Consisting of three components, Act 255 includes tax credits for angel and early stage seed investments, a technology commercialization grant and loan program, and funds to establish entrepreneurial centers. Commerce is developing administrative rules to implement the act.
Listening sessions are scheduled at 10:00 a.m. on each of the following dates and locations:
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July 8, WE Energies Auditorium, Milwaukee
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July 15, Chippewa Valley Technical College, Chippewa Falls
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July 22, Fox Valley Technical College, Appleton
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July 29, MG&E Innovation Center, Madison
In addition to the listening sessions, Commerce will post information and accept comments on the law through its webpage at http://www.commerce.wi.gov/Act255.
DOT Requests Appropriations Increases
WisDOT has asked the Joint Finance Committee for 2003-04 appropriation increases to allocate $122,176,000 in additional federal highway aids.
Governor Doyle's 2003-2005 budget originally estimated federal highway funding at approximately $502 million for 2004 and $527 million in 2005. An additional $120 million in federal highway aid raised the amount to $569 million in 2004 and $580 million in 2005.
Education Task Force Gathers Comments
At a public hearing on June 22, the Governor’s Task Force on Educational Excellence received comments on the panel’s draft recommendations. The Task Force recommendations that have drawn the most attention would expand the sales tax base and increase the sales tax by one cent to help fund education. Other initiatives proposed by the task force would increase state spending, but it was not indicated how the increases would be funded.
The final report is expected to go to Governor Doyle by June 30. The Governor could use some, all or none of the report's ideas as he prepares his next two-year budget. The Task Force recommendations are available at http://edexcellence.wisconsin.gov.
Manufacturing Jobs Increase in State
An increase of 4,700 manufacturing jobs is a highlight of the state’s Department of Revenue Quarterly Economic Report (PDF doc) released recently. Manufacturing accounts for about 18 percent of the jobs in Wisconsin. Since the recession began in March 2001, Wisconsin has lost 55,400 manufacturing jobs, or almost 10 percent.
Wisconsin Receives EPA Brownfields Cleanup, Redevelopments Funds
Communities in 42 states and Puerto Rico will share more than $75 million in EPA Brownfields grants to help revitalize former industrial and commercial sites. The grants were announced by EPA Administrator Mike Leavitt at the site of a former metal foundry in Milwaukee. Those affecting Wisconsin include:
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Ashwaubenon
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Delavan
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Delavan Redevelopment Authority
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Madison
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Oshkosh
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Racine
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Redevelopment Authority of the City of Milwaukee
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St. Croix Chippewa Indians
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Wisconsin Department of Natural Resources
According to EPA, public-private collaborative efforts in Milwaukee have already redeveloped six other Brownfields sites, bringing $13.7 million of new investment into the city and creating or retaining 149 jobs.
UW Tuition Increases
In an effort to help close the state's $3.2 billion deficit in the 2003-'05 biennium, UW Regents voted to increase tuition at UW Madison and Milwaukee for $350 per semester and $250 at all other campuses. The UW System's budget was cut by $250 million over two years and the tuition increases make up $150 million of that cut.
For further information on legislative activity of interest to CTCW members, go to CTCW Legislative Tracking Report. |
| Wisconsin Politics |
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Five Felony Charges against Burke Thrown Out
Dane County Circuit Judge Bill Foust dismissed five felony charges against former state Sen. Brian Burke. The charges accused Burke of soliciting donations in the Capitol for his 2002 campaign for attorney general. Dane County District Attorney Brian Blanchard said he will file five misdemeanor charges in their place, and 13 other counts still remain.
Rep. Schooff to Head DOA Division of Energy
State Rep. Dan Schooff will resign his 45th District Seat in the Assembly in early July to begin work as the administrator of the Division of Energy in the Dept. of Administration. Schooff has been in the Assembly since 1998 and had recently announced that he would not be seeking re-election in the fall.
Schooff succeeds former state Rep. Peter Bock, who left the administration to teach at an inner city school in Milwaukee.
Rep. Taylor to Run for Senate
State Rep. Lena Taylor (D-Milwaukee) announced she will vacate her 18th Assembly District seat to run for the 4th Senate District seat being vacated by Sen. Gwen Moore (D-Milwaukee), who is running for Congress. Rep. Taylor was elected to the Assembly in April 2003 in a Special Election.
Rep. Taylor, who currently serves on the Financial Institutions, Economic Development, Criminal Justice, Tourism and Urban & Local Affairs Committees, plans to move into the 4th Senate District as she is currently a resident of the 6th Senate District. |
| Federal Developments |
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HHS Award Additional $14.8 Million to Wisconsin to Improve Public Health Preparedness
HHS Secretary Tommy G. Thompson today announced $14,811,846 to Wisconsin to help strengthen the ability of Wisconsin's government and public health agencies to respond to Bioterror attacks, infectious diseases, and natural disasters that may cause mass casualties.
Combined with $9,180,227 that was awarded to Wisconsin's hospitals last month by HHS' Health Resources and Services Administration, HHS is sending nearly $24 million to Wisconsin in 2004 to strengthen its public health infrastructure and response capabilities.
Since Sept. 11, 2001, HHS has invested more than $3.7 billion in strengthening the nation's public health infrastructure, including $68.3 million in Wisconsin.
HHS' Centers for Disease Control and Prevention (CDC) will distribute the federal funds to assist health departments improve the readiness of hospitals and other major health-care providers who would respond to large numbers of injuries and deaths. Recipients will be able to use the funds in a number of ways to improve public health and emergency response. These include improving communication and coordination between hospitals and local and state health departments, and their laboratories, while bolstering epidemiology and disease surveillance in state and local areas by increasing the number of people trained in emergency response.
Philanthropist, Entrepreneur Bonnie McElveen-Hunter Appointed Red Cross Chair
President George W. Bush, Honorary Chairman of the American Red Cross, named Bonnie McElveen-Hunter as the new Chair of one of the nation's oldest and most trusted humanitarian organizations. McElveen-Hunter is founder and CEO of Pace Communications, Inc., the largest custom publishing company in the nation serving an array of Fortune 500 companies including AT&T Wireless, Delta Air Lines, NCR Corporation, Toyota, United Airlines and US Airways along with organizations such as the American Cancer Society, Carlson Hospitality Group and IGA.
The Chair of the American Red Cross is the principal officer of the corporation and serves as chair of the organization's corporate governance leaders, the Board of Governors. The Chair is the top volunteer position in the organization. McElveen-Hunter's appointment marks the first time a woman has been named to this position. |
| Upcoming Fundraisers |
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June 26
June 27
June 28
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U.S. Rep. Tom Petri (R), Manitowoc
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Republican Assembly Campaign Committee, Wisconsin Dells
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Dave Magnum (R) 2nd CD Candidate, Wisconsin Dells
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Shirley Krug (D) 4th CD Candidate, Milwaukee
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Amy Dixon (D) 48th AD candidate, Madison
June 29
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Sen. Alberta Darling (R-River Hills) and Sen. Mary Panzer (R-West Bend), Saukville.
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Bob Welch (R) U.S. Senate Candidate, Wausau
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Rep. Leah Vukmir (R-Wauwatosa), Brookfield
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32nd SD Democratic Victory Fund, Madison
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U.S. Rep. Tammy Baldwin (D), Madison
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Dave Magnum (R) 2nd CD Candidate, Fort Atkinson
June 30
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U.S. Senate Candidate Bob Welch (R), Green Lake
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Reince Priebus (R) 22nd SD Candidate, Madison
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Rep. Jeff Stone (R) Greenfield, Madison
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CTCW Political Tidbits is a weekly newsletter on Wisconsin political and policy developments prepared for CTCW members by The Hamilton Consulting Group. Employees of CTCW member organizations can subscribe at: http://www.ctcw.org/form-subscribe-tidbits.html.
To unsubscribe, go to: http://www.ctcw.org/form-unsubscribe-tidbits.html.
© 2004 The Hamilton Consulting Group |
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For further information on these initiatives, contact Jim Hough at The Hamilton Consulting Group.

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In the News |
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Five felony charges against Burke dismissed: Milwaukee Journal Sentinel, June 24, 2004.
Walking a fine line (opinion): Milwaukee Journal Sentinel, June 24, 2004.
Board OKs new rules on mercury: Appleton Post-Crescent, June 24, 2004.
Deck is stacked to increase costs: Beloit Daily News, June 24, 2004.
Vehicle-deer collisions take big toll in state: Wausau Daily Herald, June 24, 2004.
State panel reviews emergency DNR rules at Minocqua meeting: Rhineland Daily News, June 23, 2004.
6% sales tax advocated: Milwaukee Journal Sentinel, June 23, 2004.
Business, legislative leaders counter Doyle, say highway tolls must remain an option: Milwaukee Journal Sentinel, June 23, 2004.
State seeks input on economy: Wisconsin Rapids Daily Tribune, June 22, 2004.
Approve state limit on mercury emissions (opinion): Wisconsin State Journal, June 22, 2004.
Jobs v. environment?: Madison Capital Times, June 21, 2004.
Voucher cap could hurt (opinion): Milwaukee Journal Sentinel, June 21, 2004.
Several contested races expected this November: Green Bay Press-Gazette, June 21, 2004.
Encourage more women to run for political office (opinion): La Crosse Tribune, June 21, 2004.
AMA backs open sale of morning-after pill: Milwaukee Journal Sentinel, June 21, 2004.
Funding is issue larger than tolls: Milwaukee Journal Sentinel, June 21, 2004.
Region becomes a primary focus: Marshfield News Herald, June 20, 2004.
Republicans set their sights on winning a veto-proof majority in the Senate this fall: Milwaukee Journal Sentinel, June 20, 2004.
State spent more than $5.2 billion on K-12 education last year, report says: Milwaukee Journal Sentinel, June 20, 2004.
Report warns of budget shortfalls: Milwaukee Journal Sentinel, June 18, 2004
Proposed DNR rules would limit mercury from coal-burning plants: Milwaukee Journal Sentinel, June 18, 2004.
Reedsville uses QEO to settle contract: Manitowoc Herald Times, June 18, 2004.
Doyle lobbies on stem cells: Madison Capital Times, June 18, 2004.
Report outlines budget shortfalls: Janesville Gazette, June 18, 2004.
Bill to ease spikes in summer gas prices fails in House vote: Milwaukee Journal Sentinel, June 17, 2004.
Brownfield grants aimed at former landfills: Wisconsin State Journal, June 16, 2004.
Election trend: The incumbent versus nobody: Wisconsin State Journal, June 14, 2004.
No vote on taxpayers rights bill: Appleton Post-Crescent, June 11, 2004. |
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