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The Legislature has completed its first full week of floorperiods with some rancor over Milwaukee School Choice, Health Savings Accounts and Minimum Wage issues. New fiscal estimates were released by the Legislative Fiscal Bureau less than two weeks before the Governor is scheduled to deliver his 2005-07 budget message to a joint session of the State Legislature. The estimates show a slightly deeper hole than originally projected, providing an increased challenge (although not as great as last session) to both the Governor and Republican-controlled Legislature. The budget debate will likely continue up to the start of the new fiscal year on July 1.
Perhaps the bigger news this past week related to announcements and speculations regarding Republican challengers—and non-challengers—for Governor in the 2006 election. Milwaukee County Executive Scott Walker is officially in and Green Bay Congressman Mark Green is almost certain to enter while Speaker John Gard and Waukesha Count Exec Dan Finley are staying out.
As we enter the very early stages of a brand new session, Tidbits will continue to address “policy” and “politics” although, in our world, the two are often inseparable!
| In this Issue |
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Governor’s Biofuels Initiative Spawns Legislation
Minimum Wage Remains Hot Issue But “Compromise” Discussed
Health Savings Accounts
Fiscal Bureau Releases Revised Revenue Estimates
Judge Upholds State Regulators' Approval Process for High-voltage Line
Major Event Reminders
Trek Exec Picked as Commerce Secretary
Governor Will Lead Trade Mission to Mexico in March
Walker Announces Bid for Governor/Gard Says 'No'/Green’s Entry Expected
Hamiltonians in the News |
| Policy Developments |
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Governor’s Biofuels Initiative Spawns Legislation
Following shortly after his State of the State address, Gov. Doyle announced plans to establish a Consortium on Biobased Industry to prepare a plan to support development of biobased products and industry. In his budget, Governor Doyle is expected to propose $2 million of grants for farmers and producers who make use of products produced by their land or animals for energy. It continues the work of the Task Force on Energy Efficiency and Renewables, which was established in September 2004 “to improve the state’s energy infrastructure”.
Rep. Steve Freese (R-Dodgeville) and Sen. Shelia Harsdorf (R-River Falls) recently proposed new legislation (AB 15, SB 15) requiring all automotive gasoline in Wisconsin to contain 10 percent ethanol, or E10. Under the new bill, gasoline would have to contain at least 9.2% but no more than 10% ethanol by July 2006.
The bill is not without controversy. Opponents oppose mandating the blend and cite environmental concerns regarding the impact on air pollution, particularly in ozone non-attainment and near non-attainment counties. A public hearing in the Assembly Agriculture Committee is scheduled for February 3.
Minimum Wage Remains Hot Issue But “Compromise” Discussed
Urging law makers to pass legislation to raise the minimum wage statewide, Gov. Doyle cites the needs of women and single parents struggling to support themselves and their children.
Following state-wide hearings, Democrats introduced bills in the Legislature (AB-12) (SB-12) that would increase the minimum wage from $5.15 to $6.50 beginning Oct. 1, 2005. A proposal authored by State Sen. Bob Jauch, D-Poplar, includes a provision that would prohibit municipalities from enacting minimum wages (SB-18). Efforts in the Assembly on Thursday to have the minimum wage issue debated on the floor were rejected, in part because the bill was not calendared in the normal course of Assembly procedure.
In the meantime, Assembly Speaker John Gard, R-Peshtigo, has indicated that he may be open to a smaller minimum wage increase that would put the wage closer to $6. Nothing specific has been proposed, but any Republican movement is expected to be coupled with a state preemption.
Health Savings Accounts
On Thursday, the Assembly advanced AB-4, a proposal that would federalize state tax treatment of health savings accounts (HSA’s), allowing an income tax exemption for contributions to a health savings account. The proposal was amended to make the credit retroactive to Jan. 1, 2004 and to allow Medical Savings Account funds to be rolled over to HSA’s without penalty. The measure was held up procedurally by the Democrats and is expected to pass when the Assembly returns for its next floorperiod on February 15.
Fiscal Bureau Releases Revised Revenue Estimates
The Wisconsin Legislative Fiscal Bureau has adjusted its revenue estimates for the current fiscal year which include a reduction from the estimates made Nov. 19, 2004. The LFB said that it could not count the $60 million the Ho-Chunk had agreed to pay, widening the current shortfall by $88.6.
Wisconsin faces a $1.6 plus billion deficit for the two-year period starting July 1 because anticipated revenues will not cover requested spending by state agencies. Additionally, shortfalls are expected in Medical Assistance ($193.5 million), SeniorCare, BadgerCare and the UW System fuel and utility appropriation through June 30.
Governor Doyle has said he will not raise state taxes as part of the budget proposal that he will deliver to the State Legislature on February 8. The Governor and Legislature have a significant budgetary challenge once again.
Judge Upholds State Regulators' Approval Process for High-voltage Line
A Dane County Circuit Court upheld the Public Service Commission of Wisconsin’s (PSC) long-standing review and decision-making process to allow the Arrowhead-Weston Transmission Line construction to continue. The 210-mile, 345 kilovolt transmission line will link the Arrowhead substation near Duluth, Minnesota, with the Weston substation near Wausau.
Major Event Reminders
The Governor’s Conference on Economic Development, February 2-4 and Business Day in Madison, February 23, both at the Monona Terrace in Madison. |
| Wisconsin Politics |
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Trek Exec Picked as Commerce Secretary
Gov. Doyle recently announced the appointment of Mary Burke as Secretary of the Department of Commerce. Burke replaces Cory Nettles who left at the end of 2004 to rejoin the Quarles & Brady law firm. Most recently, Burke was Director of Forecasting and Planning for Trek Bicycle.
Doyle said Burke was right for the job because she has worked locally and internationally, as the director of a large firm and as an entrepreneur.
Governor Will Lead Trade Mission to Mexico in March
Hoping to drum up new business from Wisconsin’s third-largest export market, Gov. Doyle will make his third trade trip in 12 months when he travels to Mexico in March.
The March 6 through March 11 mission will offer meetings with agents, distributors and potential customers as well as government officials in Mexico City and Guadalajara. Participants will also attend a machine tool show and a retail convention.
Mexico has for several years been Wisconsin's third-largest export customer, accounting for $788 million in sales in 2003.
Walker Announces Bid for Governor/Gard Says 'No'/Green’s Entry Expected
Milwaukee County Executive Scott Walker officially announced his candidacy, and Congressman Mark Green has all but formally entered the race. A third Republican, Assembly Speaker John Gard, said he will not run for the state's top job.
Walker, a former member of the state Assembly from Wauwatosa, was elected county executive in 2002 in a special election in the wake of the county’s pension scandal.
Stating that “now is not the time,” Gard referred to the successes he has been a part of in Wisconsin, including his legislative achievements on welfare reform, the school choice program, and the renovation of Lambeau Field.
Green, also a former member of the Assembly, has taken steps, both publicly and in correspondence to supporters, that he is likely to enter the race soon.
Another person frequently mentioned in the past as a potential candidate, Waukesha County Executive Dan Finley, like Gard, has publicly announced his intentions to stay in his present job. |
| Hamiltonians in the News |
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The Hamilton Consulting Group is pleased to announce that Amy Boyer has been elected to the Wisconsin Women in Government Board of Directors. Amy has been a lobbyist for the Hamilton Consulting Group for over nine years. Amy's areas of expertise includes transportation, telecommunications, economic development and mortgage banking issues.
Wisconsin Women in Government has worked to support talented women who choose a career in government service. This is done through an annual Scholarship Recognition Dinner, funding summer internships at Wisconsin State Legislative Service Agencies and fostering professional networks and enhancing management skills. |
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.
© 2005 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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Doyle scouting feel-good tales of state's deeds: Milwaukee Journal Sentinel, Jan. 28, 2005.
Assembly OKs higher voucher cap: Appleton Post-Crescent, Jan. 28, 2005.
Open enrollment gains popularity: Milwaukee Journal Sentinel, Jan. 28, 2005.
SeniorCare cost state an extra $6.9 million: Milwaukee Journal Sentinel, Jan. 28, 2005.
Missing out on a windfall (opinion): Milwaukee Journal Sentinel, Jan. 28, 2005.
Group wants cigarette tax raised by $1: Manitowoc Herald Times, Jan. 28, 2005.
Gard won't enter governor's race: Milwaukee Journal Sentinel, Jan. 27, 2005.
Lawmaker wants 'do not call' to cover cell phones: Milwaukee Journal Sentinel, Jan. 27, 2005.
Bill proposed again to raise state’s minimum wage: Green Bay Press-Gazette, Jan. 27, 2005.
Wisconsin sees wide job growth: Milwaukee Journal Sentinel, Jan. 27, 2005.
Tobacco tax gains steam at Capitol: La Crosse Tribune, Jan. 26, 2005.
Doyle picks former Trek executive: Milwaukee Journal Sentinel, Jan. 26, 2005.
State 9th in 2004 job growth: Milwaukee Journal Sentinel, Jan. 26, 2005.
Consumer confidence sees increase in January: Wisconsin Rapids Daily Tribune, Jan. 26, 2005.
Ethanol isn't simple cure to problem (opinion): Marshfield News Herald, Jan. 26, 2005.
Walker launches gubernatorial bid: Milwaukee Journal Sentinel, Jan. 25, 2005.
Proposal could end budget shell game: Baraboo News Republic, Jan. 25, 2005.
Utilities, consumer groups collaborate on power issues: Milwaukee Journal Sentinel, Jan. 25, 2005.
Groups challenge new power line: Milwaukee Journal Sentinel, Jan. 25, 2005.
State missed chance at health-care payoff for poor: Milwaukee Journal Sentinel, Jan. 24, 2005.
Dialing up trouble behind the wheel: Milwaukee Journal Sentinel, Jan. 24, 2005.
A reprieve needed on caps (opinion): Milwaukee Journal Sentinel, Jan. 22, 2005.
Health insurance costs bedevil school districts (opinion): Marshfield News Herald, Jan. 22, 2005.
Crop of kilowatts: Milwaukee Journal Sentinel, Jan. 22, 2005.
Bill to set ethanol minimum proposed: Racine Journal Times, Jan. 21, 2005.
Medicaid mess is Doyle’s problem, but not his creation (opinion): Appleton Post-Crescent, Jan. 21, 2005.
State’s taxes high for a reason, alliance says: Green Bay Press-Gazette, Jan. 21, 2005.
Bills aim to curb phone use: Milwaukee Journal Sentinel, Jan. 20, 2005.
Superintendent ballot won't get investigation: Milwaukee Journal Sentinel, Jan. 20, 2005.
Is Taxpayer Bill of Rights dead or alive? Madison Capital Times, Jan. 20, 2005.
State to push biodiesel: Janesville Gazette, Jan. 19, 2005.
Governor wants $2 million for biofuels in budget: Wisconsin Technology Network, Jan. 17, 2005. |
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