Bill Would
Repeal Tax Loophole
Recently announced bi-partisan legislation is aimed at reversing the effects
of a 2004 decision by the Tax Appeals Commission commonly referred to as the
Newark decision.
In that
decision, a state Tax Appeals Commission and circuit court ruling granted a
property tax exemption to the entire manufacturing facility of a company
that made cardboard from waste paper.
Under this bill, all property purchased or constructed as a waste treatment
facility and used exclusively and directly to remove, store, or cause a
physical or chemical change in industrial waste or air contaminants is
exempt from property taxes.
Fund Transfer Not Advised
The nonpartisan Legislative Audit Bureau (LAB), in a recently released an
audit [ Highlights; Full report] of the Injured Patients and Families Compensation Fund (IPFCF),
advised the Legislature against transferring $175 million from the fund as
proposed by Gov. Jim Doyle.
The Fund,
which is administered by the Office of the Commissioner of Insurance,
insures participating physicians and other health care providers in
Wisconsin against medical malpractice claims that exceed the coverage limits
of their primary malpractice insurance.
Recent court
decisions and legislative action changed limits on noneconomic damages the
Fund may be required to pay. This has resulted in uncertainty, and coupled
with the long-term nature of medical malpractice claims, make it difficult
to predict the size and timing of claims that will be settled and paid from
the Fund.
Property Tax
Effects Summarized by LFB
According to a recently released report by the non-partisan Legislative
Fiscal Bureau, under provisions in the Governor's 2007-09 biennial budget
bill (SB 40) gross property tax levies would increase on a statewide basis
by an estimated 4.7 percent in 2007-08 and 5.0percent in 2008-09. Increases
in net levies of 5.3 percent in 2007-08 and 4.2 percent in 2008-09 are
estimated.
Senate Bill
40 would extend and modify the prior biennial budget's levy limits on
counties and municipalities, modify school district revenue limits, and
provide increased funding for local assistance to counties, municipalities,
and school districts.
The report
summarizes the provisions in the bill that relate to fiscal controls and
provides information on their fiscal effect. Over the next several months
the Legislature will work on the budget before passing it back to the
Governor for his signature.
LFB memo regarding property taxes.
DOT Requests Federal Appropriations
The Wisconsin Department of Transportation (WisDOT) recently submitted over
$300 million in 2008 federal fiscal year appropriations requests to
Wisconsin’s U.S. House delegation. The entire U.S. House of Representatives
is expected to finalize 2008 appropriations requests in May or June with the
U.S. Senate to follow.
The requests provide guidance to the state’s Congressional delegation for
budgetary earmarks to help complete a variety of transportation-related
projects and initiatives. Last year, WisDOT requested over $280 million in
funding for transportation projects; however, no requests were funded in the
2007 appropriations process.
WisDOT requested over $300 million for projects and received a total of
$53.4 million in 2006.
Committee
Hearings
Assembly Committees held several hearings on Tuesday, March 27. The Committee on Energy and Utilities held a joint hearing with the Senate Committee on Commerce, Utilities and Rail on SB 107 and its companion AB 207, which would eliminate municipal cable franchises and shift the
approval process to the state.
The Assembly Committee on Urban and Local Affairs held an informational briefing
and hearing on the Shared Revenue program, at which only invited testimony
was taken. This was followed by a public hearing on AB 136, relating to allowing schools and local governmental units to
claim refunds of the motor vehicle fuel tax and alternate fuels tax and
making an appropriation.
The Assembly Committee on Public Health held a public hearing Wednesday, March 28,
on AB 85, relating to the birth defect prevention and surveillance system.
Also on
Wednesday, the Assembly Committee on Natural Resources held a public
hearing on Clearinghouse Rule 06-104, relating to the establishment of
provisions for major electric generating units in Wisconsin to comply with
the Clean Air Interstate Rule (CAIR) promulgated by the U.S. Environmental
Protection Agency.
On Thursday,
Mar. 29, the Assembly Committee on Tourism, Recreation and State
Properties will hold a hearing on AB 45 to require children under age 12 to wear life jackets while in
boats.
Donnelly
Named Employment Relations Director
Gov. Jim Doyle recently appointed Jennifer Donnelly as Director of the
Office of State Employment Relations. Donnelly replaces Karen Timberlake,
who is now the Executive Assistant at the Department of Health and Family
Services.
Donnelly,
currently Division Administrator for Administrative Services at the
Department of Administration, oversees the Department’s personnel, financial
management and performance management activities. In January 2006, she
returned to state service after 16 years in healthcare management in the
private sector. Her previous government experience includes serving as
Executive Assistant in the Wisconsin Department of Health and Social
Services and as Chief of Staff to Senate Majority Leader Tim Cullen of
Janesville.
For more information on legislation of interest to CTCW
members, go to the CTCW Tracking Report. |
