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The State Legislature’s budget-writing Joint Committee on Finance began to pick up the pace this past week and is expected to be even busier over the next two weeks. The Committee continued its rejection of Governor Doyle’s recommended “transfers” from existing funds to help balance the budget and respond to the state’s deficit. The Committee will have to determine other means to fill the fiscal gaps that were being funded by the transfers.
In other action, the Joint Committee on Finance adopted a compromise, supported by the administration, relating to minor source air operation permits. Please see Pat Osborne’s Update on the Hamilton Consulting Group web site for further information on this compromise.
There was good news on the revenue front as the Legislative Fiscal Bureau’s new estimates have the state’s revenues coming in higher than estimated in January. The Governor used the news to renew his commitment to fully fund 2/3 of school costs, while Republican leaders said the money is needed to reduce the deficit, not fund new programs.
Wisconsin received another visit from President Bush who was in Milwaukee to tout his Social security reforms. His pitch was aimed heavily at younger workers and the younger generation in general.
| In this Issue |
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Bill Introduced Requiring Conveyance of Property for
Transmission Lines
Transitional Compromise Reached on Minor Source
Air Permit Fees
JFC Rejects Transfer from Malpractice Fund
Joint Finance Backs DFI Budget to Implement Loan
Originator Program
Joint Finance – May 23 and 24 in Session
LFB Study: Tax Revenues Higher than Previously Expected
Change to Driver License Application Advances
Wisconsin Exports Continue to Increase
Permits Issued for Oak Creek Plants
President Bush Visited Milwaukee on Thursday
Rep. Wieckert Will Not Run for Green’s Congressional Seat
U.S. Supreme Court Overturns State Liquor Laws |
| Policy Developments |
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Bill Introduced Requiring Conveyance of Property for Transmission Lines
Representative Phil Montgomery (R-Ashwaubenon), Chair of the Assembly Committee on Energy and Utilities, and numerous colleagues from both parties (the chief Senate author is Jeff Plale a Democrat from South Milwaukee) and both Houses have introduced legislation to require conveyance of property for the construction of electric transmission lines.
The bill, AB 437, provides that if the Public Service Commission (PSC) grants a Certificate of Public Convenience and Necessity for a high voltage transmission line on public property, the public owner shall grant an easement to a public utility at fair market value.
The bill was introduced in response to Douglas County’s refusal to negotiate on the Arrowhead-Weston transmission line. Under the proposal, public and private property would now be treated the same. Currently, private property can be condemned, but public property cannot. The bill is intended to reduce delay and avoid re-routing of a line which, in addition to delay, can be very costly.
Assembly Bill 437 is scheduled for public hearing in the Assembly Committee on Energy and Utilities next Tuesday. Legislative leaders from both Houses are listed as co-sponsors, indicating that expedited action can be anticipated.
Transitional Compromise Reached on Minor Source
Air Permit Fees
On May 18, 2005, the Joint Finance Committee adopted, on a 16-0 vote, a compromise version of the Governor’s proposal relating to minor source air operation permits. The motion was supported by the Administration and industry groups that negotiated modifications to the original bill with the Department of Natural Resources.
In general, the Governor’s proposal was advanced to address issues raised by the U.S. EPA with regard to deficiencies in Wisconsin’s Air Program. The compromise adopted by JFC similarly addresses those same EPA issues. Issues addressed in the compromise include:
For a detailed analysis, including a comparison of current law, the Governor’s proposal, and the compromise adopted by the Joint Finance Committee, please see the Update prepared by Pat Osborne of The Hamilton Consulting Group.
JFC Rejects Transfer from Malpractice Fund
By a vote of 14-2, the Joint Finance Committee refused to allow a transfer of $179 million out of the Patients Compensation Fund to help cover a gap in the state’s Medicaid program.
The fund was set up thirty years ago to provide health care providers with excess medical malpractice coverage over and above what they are required to carry. The fund ensures that injured patients and their families receive adequate compensation for economic damage awards. In addition, the fund aids in keeping malpractice costs in line, which, along with the medical malpractice caps on noneconomic damages, helps to attract health care professionals to practice in Wisconsin.
Joint Finance Backs DFI Budget to Implement Loan
Originator Program
The Joint Finance Committee (JFC) this week supported the Governor’s recommendation to provide $888,800 in each year to administer the mortgage loan originator program that was created under 2003 Wisconsin Act 260.
Act 260 requires, with exceptions, that individuals seeking to be registered as mortgage loan originators or solicitors must pass a competency examination in order to be licensed. These exams are required to be in place by July 2, 2005. Also, an individual seeking to renew a license is required to complete 16 hours of continuing education or to pass an examination, effective with renewals on July 1, 2007.
The amount approved by JFC would be used for supplies and services to pay for test development, test management, administration of a continuing education approval and tracking program, and licensee management. Funding would come from new examination fees to be established by administrative rule.
Joint Finance – May 23 and 24 in Session
Joint Finance has scheduled agenda for May 23 and 24, but is expected to meet several more days next week. For details on the agenda, see the schedule of committee activities.
LFB Study: Tax Revenues Higher than Previously Expected
Based on more reacent tax collections data and the new national economic forecast by Global Insight, Inc., revenues are expected to be higher than estimated in January, according to a new report by the Legislative Reference Bureau. The new estimates show revenues exceeding the previous estimates by $129 million in 2004-05, by $137.6 million in '05-06, and $82.4 million in '06-07.
The reason for the increase according to the LFB, was strong growth in individual income tax collections. The LFB also revised upward its forecast for personal income growth.
Governor Doyle used the good news to plead his case for the state to fund two-thirds of the costs of public education, which he promised in his budget. Speaker Gard’s reaction was positive, but added that it should be kept in perspective, noting that any new revenue growth should be viewed as a way to help fix the budget deficit and not as a way to create new programs the taxpayers can’t afford.
Change to Driver License Application Advances
Those applying for a Wisconsin driver’s license would have to prove they are in the country legally under legislation an Assembly committee approved Wednesday. Unless Wisconsin changes its law, Wisconsin Drivers’ licenses would not be recognized to allow Wisconsin residents to board airplanes or enter federal buildings when the new federal law goes into effect in 2008. The federal law is intended to shore up defenses against terrorism.
The bill, AB 69, approved 8-3 by the Assembly Committee on Criminal Justice and Homeland Security, seeks to bring the state in to compliance with the new federal law. Wisconsin is among the few states that do not currently require proof of residency and expiration date of legal alien status.
The bill now goes to the full Assembly. It needs approval from both chambers of the Legislature and the Governor’s signature to become law.
Wisconsin Exports Continue to Increase
Governor Jim Doyle announced that Wisconsin exports continued to show strong gains though the first quarter of 2005. The quarterly total of $3.4 billion represents an increase of 16.7 percent over the same period in 2004. For the period, US exports grew by 8.8 percent, well below Wisconsin’s pace.
Wisconsin’s largest international exporting market, Canada, grew by 12.0 percent to $1.3 billion. Exports to Mexico, Wisconsin’s second largest export market, were up 42.0 percent to $301.8 million. China ranked third in purchases from Wisconsin with a 19.4-percent increase to $164.1 million.
Permits Issued for Oak Creek Plants
In a recent press release, WE Energies announced that the U.S. Army Corps of Engineers issued the federal permit necessary for construction of the new coal-fueled generating units in Oak Creek. All the major permits necessary to commence construction of the new units have now been issued. Several of the permits previously issued are, however, the subject of judicial or administrative challenges.
In addition, a decision is pending from the Supreme Court of Wisconsin regarding the validity of the Certificate of Public Convenience and Necessity granted for this project. The decision, which is critical to the project, is anticipated before the end of the Supreme Court's session, which is expected to be no later than June 30, 2005.
For more information on legislation of interest to CTCW members, go to the CTCW Tracking Report. |
| Wisconsin Politics |
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President Bush Visited Milwaukee on Thursday
President George W. Bush yesterday spoke to a crowd of about 500 people at the Calatrava addition to the Milwaukee Art Museum. The President used the occasion to promote changes to the current Social Security System.
The President attempted to dispel “common misconceptions” about his plan and targeted much of his remarks at younger workers and the younger generation in general. He reminded the audience that his plan would in no way impact persons born before 1950 but that it is unfair for younger workers to be contributing to a system that is going bankrupt.
The President also called for a “progressive indexing” of benefits, which would index lower income recipients to wages and higher income brackets to inflation. He stated that a reduction in payouts to higher income brackets would be another help to keeping the program solvent.
Rep. Wieckert Will Not Run for Green’s Congressional Seat
State Representative Steve Wieckert, a Republican from Appleton, announced on Thursday that he will not enter the race for the 8th Congressional District seat being vacated by U.S. Representative Mark Green who has announced his candidacy for Governor.
Wieckert has for several months been exploring a potential entry into the race, although he had hinted that he would not seek the Republican nomination if Speaker John Gard were to be a candidate. Gard, who has not officially announced, has created an exploratory committee and is expected to officially announce later this year.
Other likely Republican candidates are also members of the State Assembly - Rep. Terri McCormick of Appleton and Frank Lasee of Bellevue. |
| Federal Developments |
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Supreme Court Overturns State Liquor Laws
States must permit in-state and out-of-state wineries to play by the same rules when it comes to shipping their product directly to consumers, the U.S. Supreme Court ruled on Monday.
By a 5-to-4 vote, the court overturned state liquor laws in New York and Michigan that gave preferential treatment to in-state economic interests. Both states permit in-state wineries to ship directly to consumers, bypassing both retailers and wholesalers, while out of state wineries must go through a wholesaler and retailer. Their regulatory schemes ban the direct shipment of out-of-state wine to in-state consumers. Both regulatory schemes were challenged in federal district courts by out-of-state wineries and in-state wine consumers.
Writing for the majority, Justice Anthony Kennedy held that the above referenced laws discriminate against interstate commerce in violation of the Commerce Clause of the U.S. Constitution. The Court also found that the discrimination is neither authorized nor permitted by the 21st Amendment that repealed Prohibition. "[The laws] deprive citizens of their right to have access to the markets of other States on equal terms," wrote Kennedy. |
| Upcoming Fundraisers |
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Tuesday, May 24
Thursday, May 26
For details, go to Hamilton Consulting Fundraiser Calendar. |
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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Wieckert decides not to run for Green’s seat: Green Bay Pres-Gazette, May 20, 2005.
Avoiding the Social Security debate: Milwaukee Journal Sentinel, May 19, 2005.
State aid to foster care rejected: Milwaukee Journal Sentinel, May 19, 2005.
Inflation slows in April, soothing fears: Milwaukee Journal Sentinel, May 19, 2005.
Seeing China's importance (opinion): Milwaukee Journal Sentinel, May 19, 2005.
Rankings give GM good news: Janesville Gazette, May 19, 2005.
Bill would relax rules on power plant projects: Milwaukee Journal Sentinel, May 19, 2005.
Oak Creek project gets wetland permit: Milwaukee Journal Sentinel, May 19, 2005.
Wisconsin among states filing suit against EPA: Janesville Gazette, May 19, 2005.
Opinions collide on pharmacy morals bill: Milwaukee Journal Sentinel, May 18, 2005.
Testimony urges support for rights of pharmacists, patients: Wisconsin State Journal, May 18, 2005.
Feingold’s bill would force Congress to do something (opinion): Appleton Post-Crescent, May 18, 2005.
Bill would protect pharmacists who refuse to fill birth control: Greater Milwaukee Today, May 18, 2005.
Senate passes $295B highway bill: Appleton Post-Crescent, May 18, 2005.
Wisconsin senators oppose highway bill: Green Bay Press-Gazette, May 18, 2005.
Calumet County Board blocks wind turbines: Appleton Post-Crescent, May 17, 2005.
Concerns about factory jobs fade: Green Bay Press-Gazette, May 18, 2005.
The Summer Surge: Wisconsin State Journal, May 18, 2005.
Beer case may come to a head: Milwaukee Journal Sentinel, May 17, 2005.
State IDs face redo, or refused: Appleton Post-Crescent, May 18, 2005.
Panel votes down transfer for Medicaid program: Milwaukee Journal Sentinel, May 18, 2005.
State committee drops Doyle’s plan to use malpractice funds for deficit: Appleton Post-Crescent, May 18, 2005.
Panel Rejects Key Part Of Doyle Budget: Wisconsin State Journal, May 18, 2005.
Panel Votes To Repeal Plan Law: Wisconsin State Journal, May 18, 2005.
State cash discovery a numbers game at best (opinion): Oshkosh Northwestern, May 18, 2005.
GOP continues push on voter IDs: Milwaukee Journal Sentinel, May 16, 2005.
Doyle puts a high price on foster care: Manitowoc Herald Times, May 16, 2005.
Conference to look at exporting for small business: Wausau Daily Herald, May 16, 2005.
Don't pre-empt cities on wage (opinion): Milwaukee Journal Sentinel, May 16, 2005.
Lawmakers push interstate campuses: Milwaukee Journal Sentinel, May 16, 2005.
4K, integration funds could lose out in budget: Milwaukee Journal Sentinel, May 15, 2005.
Pay hike won’t affect many locally: Appleton Post-Crescent, May 15, 2005.
Income is more like outgo for southeastern Wisconsin: Milwaukee Journal Sentinel, May 15, 2005.
Minimum-wage deal will help (opinion): Green Bay Press-Gazette, May 15, 2005.
Being smart about growth (opinion): Milwaukee Journal Sentinel, May 15, 2005.
Stop region's income drain (opinion): Milwaukee Journal Sentinel, May 15, 2005.
Alcohol for young soldiers isn't show of patriotism (opinion): Marshfield News Herald, May 16, 2005.
A new push to repair elections: Milwaukee Journal Sentinel, May 15, 2005.
TABOR will hurt govt. services (opinion): Manitowoc Herald Times, May 15, 2005.
Union Leaders Try To Reverse Decline: Wisconsin State Journal, May 14, 2005. |
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