Health Care and Education Focus of Doyle’s State of the State Address

Government Accountability Board Bill Passes

Governor Doyle Announces Clean Air Status for Eastern Wisconsin

DNR Air Rules Dominate Natural Resources Board’s Agenda

Legislative Fiscal Bureau Releases New Revenue Estimates

Rental Car Tax Proposed to Finance Commuter Rail

Special Committee on Nuclear Power Recommends Ending Moratorium

Upcoming Committee Hearings

Wisconsin Makes Economic Honor Roll

Hayden, Dilweg and Ebert Confirmed

Doyle Appoints Burnie Bridge as Dist. IV Court of Appeals Judge

Federal Bill Proposes More Ethanol Mandates

Committee Assignments for the 110th Congress – Wisconsin Delegation

Health Care and Education Focus of Doyle’s State of the State Address
Gov. Jim Doyle's annual State of the State address Tuesday night included plans for several new initiatives, including:

• BadgerCare Plus:  Expand the BadgerCare Program to provide health coverage for all children and adults without children who earn less than $20,000 a year.

• Reinsurance Pool:  Establish a purchasing pool to help business pay for catastrophic health coverage.

• Anti-Smoking Initiative: A statewide anti-smoking initiative to ban smoking in all public buildings and workplaces, increase the tax on cigarettes by $1.25 per pack (from .77 cents to $2.02.), and expand smoking cessation programs to improve public health for people in Wisconsin.

• New Effort for Wisconsin Children and Families:  Proposal merges child welfare, child support, child care services and the W-2 program into a single agency – the Wisconsin Department of Children and Family Services.

• Initiative to Reduce Medical Errors, Health Care Costs: $30 million to increase the use of electronic medical record systems, reducing medical errors, improving safety, and decreasing health care costs.

• Partnership with University of Wisconsin System: Provide $225 million to generate new nurses, teachers, and engineers.

• Education Initiatives:  Provide funding for the Office of the Wisconsin Covenant to help high school students attend college in Wisconsin; triple the state’s support for school breakfast; increase job training funding for Wisconsin’s technical colleges, and; double the funding for the Youth Apprenticeship Program.

• Governor’s Task Force on Global Warming: Create a new council comprised of businesses, industry, environmental organizations, local governments, and private citizens to develop a state plan of action for state and local solutions to global warming.

• Major Investments to Achieve Energy Independence:  $40 million in his budget proposal will be dedicated for renewable energy; proposed steps for Wisconsin to be the first state in the nation to produce ethanol from cellulose, or woody forest and timber materials.

• Environmental Protection:  the Governor called on the Legislature to reauthorize the Stewardship Program to extend the state’s long standing land acquisition program, and to ratify the Great Lakes Water Resources Compact to protect the Great Lakes.

• Milwaukee Initiatives: A comprehensive investment in Milwaukee to be announced next week.

Government Accountability Board Bill Passes
After legislative leaders agreed to removal of the non-severability clause and to other tweaking of the “ethics reform bill,” the legislation that merges the Ethics and Elections Board passed both houses on the same day and in advance of the Governor’s State of the State address. The Governor is scheduled to sign the bill on Friday, February 2^nd.

The non-severability provision, which had caused disagreements among legislators, would have invalidated the entire bill if even one part of it was found unconstitutional.

Provisions of the reform package include:

• The current state Elections and Ethics Board will be dissolved and replaced with a non-partisan Government Accountability Board (GAB).

• The new independent board will be comprised of six retired or reserve judges intended to ensure the agency is insulated from partisan influence.

• The GAB will hire staff to coordinate day-to-day operations and have the power to retain investigators as needed.

• The GAB will have the necessary financial resources to execute investigations of public misconduct.

• Investigations revealing evidence of criminal activity will be referred to district attorneys and/or the state Attorney General.

• If any one part of this package is later called into question by the courts, the GAB and the reforms created by this legislation remain intact.

• Language in the legislation has been clarified to ensure that provisions protecting against leaks of sensitive information obtained during investigations don’t impede or impair the actual investigation.

Governor Doyle Announces Clean Air Status for Eastern Wisconsin
Governor Jim Doyle has announced that eight counties in Eastern Wisconsin have reached a new clean air status - and as a result has directed the Department of Natural Resources (DNR) to request an ozone attainment redesignation for the region.

Kenosha, Racine, Milwaukee, Waukesha, Washington, Ozaukee, Manitowoc and Kewaunee counties will be included in the request. Previously, DNR Air Bureau staff told business representatives that the Department would not seek timely redesignation.

Acknowledging the importance of his commitment to seek regulatory relief for those counties, nearly thirty business and labor groups sent a letter to the Governor noting their appreciation. The letter, however, outlines the importance of timely action and other hurdles that if not cleared would impede or kill the redesignation effort. (See WMC’s Ozone Update for additional background.).

DNR Air Rules Dominate Natural Resources Board’s Agenda
The Natural Resources Board was presented an alphabet soup of pending air regulation at its Jan. 24^th meeting. The Board acted upon or was briefed on DNR’s efforts to implement four EPA Clean Air Act rules known as CAIR, RACT, BART and CAMR.

The Board adopted the final version of DNR’s Clean Air Interstate Rule (CAIR), and sent draft Reasonably Available Control Technology (RACT) and Best Available Retrofit Technology (BART) rules to public hearing. The Board was also briefed on the status of DNR’s implementation of EPA’s Clean Air Mercury Rule (CAMR), and a related petition by environmental groups to ratchet down on utility mercury emissions beyond that required by EPA.

Both the Wisconsin Utility Association (WUA) and Wisconsin Manufacturers & Commerce (WMC) addressed the Board with concerns over the process and deviations to the federal CAIR rule.

Given pending compliance with the federal particulate and ozone standards – the target pollutants behind CAIR – industry representatives question the need to exceed the federal requirements that by themselves will add a significant margin of safety to the already compliant air quality. Similar policy objections will be raised as RACT, BACT, and CAMR wind their way through the rulemaking process.

Contact Hamilton Consulting’s Bob Fassbender if you have any questions on these rules or the pending ozone redesignation request.

Legislative Fiscal Bureau Releases New Revenue Estimates
On January 30, the State’s Legislative Fiscal Bureau (LFB) released its revenue estimates [pdf doc, 22 pgs] which show some increases in revenue in 2006-07, but significant shortfalls in four agencies (Badger Care, Public Defender, Corrections and W2).

The report warns of potential decrease in sales tax ($28.3 million annually) and possible refund payments ($227.6 million exposure) based on a recent Court of Appeals decision relating to tax exempt status of customized computer software.

Rental Car Tax Proposed to Finance Commuter Rail
A new commuter train to link Milwaukee to Racine and Kenosha would cost about $200 million to build and operate, causing members of the Southeastern Wisconsin Regional Transit Authority to struggle in reaching a consensus on how to pay for it.

Authority members this week settled on a $13-a-car increase in the car rental tax, after running into political and practical obstacles to sales taxes, as reported in the Milwaukee Journal Sentinel. This amount would be added to the current $2-a-car tax in Milwaukee, Racine and Kenosha counties, and is opposed by the Wisconsin Car Rental Alliance.

Called the KRM Commuter Link, the rail service is backed by business leaders as a way to spur development and connect workers to jobs.

The RTA was created by the Wisconsin State Legislature and Governor in July 2005 and is responsible for recommending to the State Legislature a permanent, dedicated funding source for the local share of capital and operating costs for commuter rail.

Related news articles:

Rail stations touted as lures: Milwaukee Journal Sentinel, Jan. 24, 2007.

Transit authority shelves regional sales tax plan: Milwaukee Journal Sentinel, Jan. 9, 2007.

Transit backers try a new tack: Milwaukee Journal Sentinel, Jan. 7, 2007.

Rail link could reinforce cities' ties: Milwaukee Journal Sentinel, Jan. 6, 2007.

Special Committee on Nuclear Power Recommends Ending Moratorium
The committee, created last session under the Republican-controlled Legislature, voted 10-6 to approve a bill draft by the Legislative Council to end Wisconsin’s nuclear plant siting moratorium.

The vote split along party lines and between representatives of utilities and environmental organizations. It won with the unanimous approval by public members representing the utility industry.

Upcoming Committee Hearings
Assembly Homeland Security and State Preparedness

Hearing scheduled for Feb. 6 on:

CR-06-128. Proof of identity.

AB-36. Grants for catastrophic damage caused to urban forests.

Senate Economic Development, Job Creation, Family Prosperity & Housing

Hearing schedule for Feb. 14 on:

SB-7. Revisions in terminology affecting mobile homes, manufactured homes, modular homes, manufactured buildings, recreational vehicles, and mobile and manufactured home communities and changes applying to monthly fees collected by local governmental units.

SB-11. Authorizes a “right to occupy” time-shares license.

Wisconsin Makes Economic Honor Roll
The Development Report Card for the States, released last week by the nonprofit Corporation for Enterprise Development (CFED), highlights the state’s economy and economic development efforts.

According to the report, Wisconsin scored well in the health and diversity of its business, the competitiveness of existing businesses, the minimal number of business closures, its infrastructure, the number of loans made to small business, the quality of jobs available, its small number of uninsured low income children and its quality of life.

However, several weaknesses were also identified by the study, including a disappointing entrepreneurial dynamism, a low number of new companies created, long-term employment growth, businesses created through university Research & Development (R&D) and its limited financial resources.

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

Hayden, Dilweg and Ebert Confirmed
Then senate on Tuesday confirmed 39 gubernatorial appointments including Kevin Hayden as secretary of the Department of Health & Family Service, Sean Dilweg, Commissioner of Insurance and Dan Ebert (re-appointment) as Chair of the Public Service Commission

Doyle Appoints Burnie Bridge as Dist. IV Court of Appeals Judge
Gov. Doyle has appointed Burnie Bridge to the District IV Court of Appeals. Bridge will fill the vacancy created by the retirement of Judge David Deininger on Jan. 31, 2007.  Bridge will begin serving Feb.12, 2007 for a term to end July 31, 2008. 

Bridge served as an Assistant Attorney General from 1985-1993 and the Deputy Attorney General under Attorney General Doyle from 1993-2003.  Following her service at the Department of Justice, she was appointed Chair of the Wisconsin Public Service Commission. 

Bridge retired from state service in September, leaving her most recent position as the Administrator for the Division of Children and Family Services at the Department of Health and Family Services.

Bill Proposes More Ethanol Mandates
Four U.S. Senators, Lugar of Indiana, Harkin of Iowa, Obama of Illinois and Dorgan of North Dakota, have introduced a new Biofuels Security Act, providing additional mandates and incentives for biofuels.

Specifically the act calls for automakers to increase the production of flex-fuel vehicles (FFVs) so that all vehicles sold in the U.S. would be FFVs within 10 years. And the bill would increase the number of filling stations that offer biofuels.

While President Bush called for a Renewable Fuels Standard of 35 billion gallons by 2017, the Biofuels Security Act would increase the RFS to 60 billion gallons of ethanol and biodiesel by 2030.

The Administration has suggested that U.S. tariffs on ethanol imports will probably need to be lifted to meet the goal of increasing the use of renewable fuels. President Bush has noted that domestic ethanol production would be constrained by the availability of corn. However, he did not suggest increasing imports as a solution, instead saying the constraints on ethanol production are the reason for government support for research to manufacture ethanol from "cellulosic" materials such as woodchips and "other agricultural wastes."

Committee Assignments for the 110th Congress – Wisconsin Delegation
Sen. Herb Kohl

• Senate Committee on Appropriations

• Senate Committee on the Judiciary

• Special Committee on Aging

Sen. Russ Feingold

• Senate Committee on the Budget

• Senate Committee on Foreign Relations

• Senate Select Committee on Intelligence

• Senate Committee on the Judiciary

• Special Committee on Aging

Rep. Paul Ryan

• House Budget Committee – Ranking Minority Member

• House Committee on Ways & Means

Rep. Tammy Baldwin

• House Committee on Energy and Commerce

Rep. Ron Kind

• House Committee on Natural Resources

• House Committee on Ways and Means

Rep. Gwen Moore

• House Committee on Financial Services

• House Committee on Small Business

Rep. James Sensenbrenner

• House Committee on the Judiciary

• House Committee on Science and Technology

Rep. Tom Petri

• House Committee on Education and Labor

• House Committee on Transportation and Infrastructure

Rep. David Obey

• House Committee on Appropriations - Chair

• House Select Intelligence Oversight Panel

• Subcommittee-Labor Health and Human Services Education and Related - Chair

Rep. Steve Kagen

• Committee on Transportation and Infrastructure

Disclosure rules should apply to all campaign ads (opinion): Sheboygan Press, Feb. 1, 2007.

State budget approval next step for commuter rail: Racine Journal Times, Feb. 1, 2007.

Governor on-board for $13 rental tax: Milwaukee Journal Sentinel, Jan. 31, 2007.

Group research on car-deer collisions good use of tax dollars: Manitowoc Herald Times, Jan. 31, 2007.

Ethics board gets overwhelming OK: Madison Capital Times, Jan. 31, 2007.

A job still unfinished (opinion): Milwaukee Journal Sentinel, Jan. 31, 2007.

Republicans call Doyle hypocritical for proposing campaign reform: Milwaukee Journal Sentinel, Jan. 31, 2007.

Doyle set a spending record in election: Milwaukee Journal Sentinel, Jan. 31, 2007.

More cash sought for circuit courts: Milwaukee Journal Sentinel, Jan. 31, 2007.

High court campaign cash: Wisconsin State Journal, Jan. 31, 2007.

Gov's education plans praised: Madison Capital Times, Jan. 31, 2007.

$13 rental car tax sought: Milwaukee Journal Sentinel, Jan. 30, 2007.

Let green light shine for ethanol (opinion): Wisconsin State Journal, Jan. 29, 2007.

Thompson sizes up Iowa, post-game and casual: Milwaukee Journal Sentinel, Jan. 28, 2007.

Doyle proposes global warming task force: Milwaukee Journal Sentinel, Jan. 28, 2007.

Ethanol drives up grain price: Baraboo News Republic, Jan. 28, 2007.

Put Doyle's smoking proposal to voters (opinion): Manitowoc Herald Times, Jan. 28, 2007.

Market, not government, should shape our habits (opinion): Green Bay Press-Gazette, Jan. 28, 2007.

Special interests eye high court race: Wisconsin State Journal, Jan. 28, 2007.

Time is right for state smoking ban (opinion): Wisconsin Rapids Daily Tribune, Jan. 28, 2007.

Clinton promises dialogue with Iowa: Milwaukee Journal Sentinel, Jan. 27, 2007.

Doyle's budget would help UW meet its goals: Milwaukee Journal Sentinel, Jan. 27, 2007.

Doyle seeks more biofuels, less emissions: Milwaukee Journal Sentinel, Jan. 27, 2007.

Biodiesel talk lauded; where's $$? Madison Capital Times, Jan. 26, 2007.

GOP agenda shuns hot social issues: Madison Capital Times, Jan. 26, 2007

Ethanol plants powered by manure, trash catch on: Wausau Daily Herald, Jan. 23, 2007.

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

Feb. 2

• Rep. Mark Gundrum (R-New Berlin), New Berlin

Feb. 19

• US Rep. Tammy Baldwin (D), Madison

For details, go to Hamilton Consulting Fundraiser Calendar.

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