Study Confirms Falling Economic Development Climate Based on
 “Litigation Atmosphere”

Governor Proposes $450 Million Public, Private Investment Strategy to Develop Renewable Energy

Requested Increases in Major GPR Programs Highlight
 Budget Demands

Green to Seek Supreme Court Review

Former State Representative Brandemuehl Has Died

Study Confirms Falling Economic Development Climate Based on
“Litigation Atmosphere”
According to a recently released Wisconsin study [Full study, PDF], numerous national studies have confirmed a significant drop in Wisconsin's overall economic development climate ratings. In an annual ranking by the U.S. Chamber’s Institute for Legal Reform (Harris Poll), Wisconsin’s “litigation atmosphere” rank has fallen during a three-year period from 10^th to 23^rd.  Another study commissioned by the National Association of Manufacturers ranks Wisconsin 30^th.

Meanwhile, the Wall Street Journal noted several 2005 Wisconsin Supreme Court cases and vetoes of the subsequent legislative corrective action attempts, as contributing factors for these negative rankings.  Recently, Forbes Magazine, reporting on the "Best States to do Business," ranked Wisconsin 42^nd in Regulatory Environment, including tort climate.

The study (The Growing Threat to Economic Development: Wisconsin’s Immediate and Critical Need for Legal Reform), conducted by the Wisconsin Economic Development Institute (WEDI), examined the role of legal reform in economic development. Among its evaluations, the research concludes that the civil justice system is not working and it is exposing existing Wisconsin employers and prospective new businesses to unwarranted risk, thus hindering new capital investment and employment retention/expansion efforts.

The research study was commissioned by the Wisconsin Economic Development Association (WEDA).

Governor Proposes $450 Million Public, Private Investment Strategy to Develop Renewable Energy
Governor Doyle issued a press release on Monday outlining a package of incentives to promote renewable energy.  The proposal calls for spending $80 million in state funds on various strategies to leverage private sector investment.  The plan includes:

• $50 million in loan guarantees and low interest loans to Wisconsin businesses to expand production and use of renewable fuels and energy.

• Tax credits for gas stations to put in E-85 and biodiesel tanks and pumps - and for private fleets for increasing the use of biofuels.

• $20 million in grants for development of new renewable fuel and energy technologies - including a $5 million grant earmarked for cellulosis ethanol production.

Requested Increases in Major GPR Programs Highlight
Budget Demands
Agency budget requests, due to the Department of Administration September 15th, are now being reviewed by DOA budget analysts for recommendation and possible inclusion in the 2007-09 biennial state budget bill. The agency requests provide the framework for building the next state budget, but still to come are agency spending reduction proposals (due to DOA by mid-November) and gubernatorial initiatives.

An overview of major general purpose revenue (GPR) spending requests includes the following:

• DPI - Requests an additional $662 million GPR; including $422 million in general equalization aids to fund approximately 2/3 of school funding. ($10.368 billion appropriated in 2005-07 for K-12 school aids)

• DHFS - Requests an additional $343 million GPR over the biennium for increasing costs of Medicaid ($305 million) BadgerCare ($16.6 million) and SeniorCare ($21.3 million). ($3.077 billion appropriated in 2005-07)

• UW System - Requests an additional $85 million GPR to go along with an additional $35 million in tuition fee increases for a total GPR/Fee request of $120 million. ($1.899 billion GPR appropriated in 2005-07)

• Corrections - Requests an additional $247 million GPR (13.2% increase) to meet current operations and commitments; including the addition of 311 positions by the end of the biennium. ($1.56 billion appropriated for correctional operations in 2005-07)

In total, these four agency requests alone, represent a GPR increase of $1.337 billion over the current budget. They also represent four of the five largest GPR expenditure areas and highlight increases in programs that currently comprise 65 percent of the total $26.126 billion spent on GPR programs in 2005-07. Not listed among the top five is the shared revenue program, which is currently funded at $1.9 billion GPR over the 2005-07 biennium.

For more information on legislation of interest to CTCW members, go to the CTCW Tracking Report.

Green to Seek Supreme Court Review
A Dane County Judge on Monday denied Cong. Mark Green's motion for a temporary injunction in the State Elections Board campaign fund transfer case.

The Green campaign is placing the money in question into a separate account while it appeals the ruling to get clarity on an issue that it believes has seen the rules change after 29 years. Justice Department lawyers said Monday that they might join Green in asking for a speedy decision by the Supreme Court.

Former State Representative Brandemuehl Has Died
Former State Representative Dave Brandemuehl died Tuesday morning of this week of an apparent heart attack.  Brandemuehl , from Fennimore served in the Assembly from 1997until 2000.  He chaired the Highways and Transportation committee, and spent his entire tenure serving on various Highway or Transportation committees.

Gap narrows in race between Doyle, Green: Green Bay Press-Gazette, Sept. 27, 2006.

$5.4 million in political spending tied to Indian tribes: Milwaukee Journal Sentinel, Sept. 27, 2006.

Green plans appeal: Milwaukee Journal Sentinel, Sept. 26, 2006.

Residents feel better about state, poll says: Milwaukee Journal Sentinel, Sept. 27, 2006.

Study: state's economy needs tort reform: Wisconsin Radio Network, Sept. 26, 2006.

Doyle promises state funds to boost biofuels: Milwaukee Journal Sentinel, Sept. 26, 2006.

Gard, Kagen defend plans for tax relief: Appleton Post-Crescent, Sept. 25, 2006. Taxpayer advocate: Ideas will be politically popular.

Cheney: Keep national security issues in mind in November: Manitowoc Herald Times, Sept. 25, 2006.

nvestors may want to look overseas: Milwaukee Journal Sentinel, Sept. 25, 2006.

Another tool in the box (opinion): Milwaukee Journal Sentinel, Sept. 25, 2006.

Legislature, DNR tangle over power: Milwaukee Journal Sentinel, Sept. 25, 2006.

Doyle to announce plan to invest $80 million in renewable energy: Janesville Gazette, Sept. 25, 2006.

Is it time to lift the nuclear ban? Milwaukee Journal Sentinel, Sept. 24, 2006.

Elections officials work to adapt to poll changes: Marshfield News Herald, Sept. 24, 2006.

Doyle team estimates Green cuts: Wisconsin State Journal, Sept. 24, 2006.

State candidates: time to respond to central Wis. agenda (opinion): Marshfield News Herald, Sept. 24, 2006.

Bush numbers on rise in state: Milwaukee Journal Sentinel, Sept. 24, 2006.

Economic development agencies launch incubator project: Oshkosh Northwestern, Sept. 23, 2006.

Jobless rate hits 5-year low: Milwaukee Journal Sentinel, Sept. 21, 2006.

Kimberly-Clark cutting 350 more Neenah jobs: Milwaukee Journal Sentinel, Sept. 21, 2006.

Metro area jobless rate drops to 4.1 percent: Green Bay Press-Gazette, Sept. 21, 2006.

Doyle lawyer urged sanction: Milwaukee Journal Sentinel, Sept. 21, 2006.

House passes voter ID bill: Milwaukee Journal Sentinel, Sept. 21, 2006.

For more Wisconsin News, go to Hamilton Consulting News Clips.

Oct. 2

• Rep. Dan Meyer (R-Eagle River), Rhinelander

Oct. 3

• Pat Kreitlow (D), Eau Claire

Oct. 5

• Rep. Phil Montgomery (R-Green Bay), Green Bay

• Sen. Alan Lasee (R-DePere), Appleton

Oct. 7

• Rep. Mark Pettis (R-Hertel), Amery

Oct. 9

• Van Wanggaard (R) 62nd AD, Racine

Oct. 10

• Mark Green, Milwaukee

• Sen. Neal Kedzie (R-Elkhorn), Pewaukee

Oct. 11

• Sen. Ted Kanavas (R-Brookfield), Elm Grove

• Bill "Mac" Reynolds (R) 21st SD, Franksville

Oct. 12

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

Oct. 14

• Sen. Judy Robson & Rep. Mike Sheridan, Janesville

For details, go to Hamilton Consulting Fundraiser Calendar.

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