Supreme Court Rules on Punitive Damages

GOP Fails to Override Veto

Senate Rejects Campaign Finance Bill

Budget Hearings Update

PSC Approves Sale of Kewaunee Nuclear Power Plant

Governor Doyle Outlines Accountability, Consolidation, Efficiency Initiative

Study: Wisconsin Among Bottom Three States in Per Capita Federal Spending

Lautenschlager Proposes Plan to Make Government more Accountable to Public

Supreme Court Upholds Ameritech Refund

Red Cross Leaders Meet State Legislators during “Day at the Capitol”

Gundrum Announces He will Not Run for AG

Federal News

Supreme Court Rules on Punitive Damages
The Supreme Court this morning handed down two opinions relating to Wisconsin law on punitive damages. The Court issued its interpretation of the Wisconsin statute [s. 895.85 (3)] adopted in the 1995 legislative session. The rulings were in a drunken driving case and the high profile Mitsubishi case. While the Court recognized that the Legislature created a “heightened standard” in its adoption of s. 895.85 (3), it rejected the stricter interpretation of the Appeals Court in the Mitsubishi case; reversed that decision; and, held that the punitive question was appropriate to be presented to the jury. In both cases, the Court failed or refused to address the constitutional issue as to the question of whether or not the amount of the award was excessive. (LeRoy M.Strenke v. Levi Hogner and Nau Country Insurance Company & Patricia Wischer, et. al v. Mitsubishi Heavy Industries America, Inc., et.al.)

GOP Fails to Override Veto
Last week, shortly after his return from Mexico, Gov. Jim Doyle, as expected, vetoed the tax freeze bill on the grounds that “it would hurt public education.” The Assembly quickly scheduled a veto override vote that failed on a party-line vote, 59 to 39, short of the 2/3 required.

Senate Rejects Campaign Finance Bill
The State Senate on Wednesday rejected a campaign finance proposal, SB 46, which had been scheduled for floor action and debate after lengthy caucus discussion. The lead author, Senator Mike Ellis, was joined by cosponsor, Madison Democrat Fred Risser, and Milwaukee Democrat Tim Carpenter and ten other Republicans in voting for the bill, which was rejected on a 20-13 vote.

The legislation would have created a new method to give public grants to candidates and banned fund-raising while lawmakers work on the state budget. Proponents argued that the proposal was “a good first step,” while many opponents claimed that the bill “did not go far enough” and, therefore, should be rejected.

Budget Hearings Update
The Joint Committee on Finance (JFC) concluded its series of statewide public hearings on the 2005-07 state budget with a lengthy hearing in Madison yesterday. The committee will now move on to agency briefings which will be held March 29, 30 and 31 and April 6. The committee plans to start voting on items to be included in its version of the proposed budget on April 12. JFC’s version will be in the form of a Substitute Amendment to the proposed budget submitted by the Governor, which will be referred to the full Legislature for additional amendments and final action expected to be concluded by July 1.

In the meantime, Senator Lena Taylor and Representative Pedro Colón, both members of Joint Finance, are hosting a public hearing on the $52.6 billion state budget bill at the Milwaukee United Community Center on Monday, March 21 from 2:00pm –6:00pm. Taylor and Colon have been critical of the fact that none of the formal statewide hearings were held in the Milwaukee area.

PSC Approves Sale of Kewaunee Nuclear Power Plant
On Thursday, March 17, the state Public service Commission (PSC) unanimously approved the sale of the Kewaunee Nuclear Power Plant to Dominion Resources, Inc. of Virginia, citing substantial economic benefits for ratepayers. The PSC approval was based in large measure on new conditions, which the Commission said will ensure that the citizens of Wisconsin will have a voice in the future of the facility. Yesterday’s approval reversed a Dec. 16, 2004 order (2-1) rejecting the sale to Dominion.

Governor Doyle Outlines Accountability, Consolidation, Efficiency Initiative
Governor Jim Doyle recently unveiled a plan he says will save Wisconsin taxpayers up to $200 million over the next four years by changing the way Wisconsin does business.

Called the ACE (Accountability, Consolidation, Efficiency) Initiative, Governor Doyle’s plan will overhaul “outdated” bureaucratic structures, implement best business practices, and generate cost savings for taxpayers by leveraging the state’s purchasing power to lower prices.

Study: Wisconsin Among Bottom Three States in Per Capita Federal Spending
In 2003, per capita federal spending in Wisconsin totaled $5,525, or 18.8 percent below the national average. Only two states, Minnesota and Nevada, had lower amounts, according to a new report from the Wisconsin Taxpayers Alliance.

Other key findings:

• Two categories accounted for nearly 75 percent of the difference between spending here and nationally. Nearly half of the difference was from lower procurement-contract spending; about one quarter was from less wage and salary spending.

• The average Medicare recipient here received 21.1 percent less than the national average. That was the main reason federal direct payments were lower here compared to the nation.

• Wisconsin received 84¢ in federal spending for every $1 of federal taxes and fees paid. The state ranked 39th on this measure

Lautenschlager Proposes Plan to Make Government more Accountable to Public
Attorney General Peg Lautenschlager has proposed a comprehensive new initiative for government reform. Her proposal, called the Attorney General’s Government Reform Enterprise (AGGRE), would prohibit campaign contributions by government contractors while those contractors were applying for the government work and shortly after they were awarded the job. They also would be banned from donating to the officials who make or are able to influence decisions on their contracts.

The other proposals include:

• Restrictions on former lawmakers, legislative staff and contract employees lobbying the government

• Merging and reforming the Ethics and Elections boards

• Making bill drafts crafted for the Legislature and circulated to others subject to the state public records law

• Creating a nonpartisan body to redraw legislative boundaries.

Supreme Court Upholds Ameritech Refund
In an opinion released Mar. 17, the Supreme Court was equally divided on an appeals court decision finding that Ameritech had unlawfully collected $18 million in intrastate long-distance carrier charges. The Court of Appeals affirmed in part and reversed in part a decision by Milwaukee County Circuit Judge Michael Sullivan. Sullivan affirmed a PSC decision finding Ameritech had generated long-distance charges that were unlawful, but that the refund ordered by the commission was foreclosed by Wis. Stat. s. 196.37(2).

Justices Bradley, Prosser, and Butler would have affirmed; Justices Wilcox, Crooks, and Roggensack would have reversed; Chief Justice Abrahamson did not participate.

Red Cross Leaders Meet State Legislators during “Day at the Capitol”
Uniting as one Red Cross during March “Red Cross Month,” key leaders from the 17 Red Cross chapters throughout the state and representatives of the Badger-Hawkeye and North Central Blood Regions met with state legislators on March 15 to discuss emergency preparedness and response, meeting lifesaving blood demands, and other issues of importance to state residents. 

Johnnie Smith, Wisconsin’s Director of Emergency Management, spoke to the 125 American Red Cross volunteers and staff about Wisconsin’s emergency management system and the state’s effort to prepare for disaster response and mitigation. Smith recognized and thanked the American Red Cross for its critical role in disaster response operations. 

State Sen. Ron Brown, chair of the Senate Committee on Veterans, Homeland Security, and Military Affairs, Small Business and Government Reform, emphasized the need for proper training, education and equipment for first responders. Sen. Brown identified the preparedness and training courses of the American Red Cross as a critical component of citizen disaster preparedness.

Andy Franken of the Hamilton Consulting Group discussed some of the Homeland Security funding issues and other legislative proposals facing the American Red Cross in Wisconsin.  Franken also discussed the importance of the B.L.O.O.D. (Bipartisan Legislators Organized for Outreach to Donors) Coalition in the effort to promote blood donations throughout the state. See Hamilton's Homeland Security Web page.

EPA Mercury Rule Requires DNR to Follow Suit
On Mar.15, 2005, EPA issued the Clean Air Mercury Rule. The rule is the first ever federally-mandated that coal-fired electric utilities reduce their emissions of mercury. Its promulgation triggers a requirement in Wisconsin’s mercury rule that DNR revise its rule to assure consistency with the federal program. The key issue in the upcoming development of the state version of the rule is how closely it will track the federal program. (For more on the state mercury program, see Hamilton Consulting’s Mercury Rule Update).

House Passes Federal Reauthorization Bill
In a major step to getting a reauthorization package approved by Congress and the President, the U.S. House last week passed HR 3, the Transportation Equity Act: A Legacy for Users, or TEA-LU.

For Wisconsin, TEA-LU would generate about $4 billion of federal highway formula funds over the six-year period, a 23 percent increase over TEA 21. Wisconsin should also see a 34 percent increase in transit formula funds. Overall, the bill increases transportation funding nationwide by 25.5 percent.

Monday, March 21

• Sen. Ted Kanavas (R-Brookfield), Waukesha

• Sen. Roger Breske (D-Eland), Birnamwood

Tuesday, March 22

• Gregg Underheim, Green Bay

• Rep. Jim Kreuser (D-Kenosha), Pleasant Prairie

Wednesday, March 23

• State Superintendent Elizabeth Burmaster, Madison

Monday, March 28

• Rep. Terry McCormick (R-Appleton), Neenah

Tuesday, March 29

• Rep. Mark Honadel (R-South Milwaukee), South Milwaukee

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Tidbits Archives

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For Further Information

Privatization of inmate care opposed: Milwaukee Journal Sentinel, Mar. 18, 2005.

Governor's veto on tax limits stands: Milwaukee Journal Sentinel, Mar. 17, 2005.

AG seeks more open government: Madison Capital Times, Mar. 17, 2005.

Election fix 'will be back': Madison Capital Times, Mar. 17, 2005.

Senate rejects changes in campaign financing: Milwaukee Journal Sentinel, Mar. 17, 2005.

Report: Campaign donors receive bigger grants: Janesville Gazette, Mar. 17, 2005.

Votes for a corrupt system (opinion): Milwaukee Journal Sentinel, Mar. 17, 2005.

Doyle emphasizes commitment to open records: Milwaukee Journal Sentinel, Mar. 17, 2005.

Open government laws serve citizens (opinion): Portage Daily Journal, Mar. 17, 2005.

County wants gaming money: Baraboo News Republic, Mar. 17, 2005.

Vote possible on nuke-plant sale: Green Bay Press-Gazette, Mar. 17, 2005.

Mercury emission rules leave plenty to jeer about (opinion): Racine Journal Times, Mar. 17, 2005.

Senate votes to drill in refuge: Milwaukee Journal Sentinel, Mar. 17, 2005.

Local Red Cross honors 2,000-plus volunteers: Fond du Lac Reporter, Mar. 17, 2005.

Gov seeks $187M for research institute: Madison Capital Times, Mar. 16, 2005.

Ozone air-pollution standards advance: Green Bay Press-Gazette, Mar. 16, 2005.

Official: Mercury rule hurts state policy: Eau Claire Leader-Telegram, Mar. 16, 2005.

PCB bill pits paper companies, insurers: Green Bay Press-Gazette, Mar. 16, 2005.

Air-cleanup mandate a start (opinion): Green Bay Press-Gazette, Mar. 16, 2005.

Gas Price Law Headed For Trash? Wisconsin State Journal, Mar. 16, 2004.

Doyle takes new heat on budget: Milwaukee Journal Sentinel, Mar. 16, 2005.

Lawmakers will try to appeal gas minimum markup law: La Crosse Tribune, Mar. 15, 2005.

Renewable fuels save in long run: Green Bay Press-Gazette, Mar. 14, 2005.