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Senate Members


Co-Chair: Sen. Mark Miller, D-Monona

Democratic members Republican members

Assembly Members


Co-Chair: Mark Pocan, D-Madison

Democratic members Republican members

Wednesday, March 28, 2007

CF Hearing Goes Late, PdC Next Up

The Chippewa Falls public hearing of the Joint Finance Committee wrapped up around 6:45 last night. Next up will be Prairie du Chien next Wednesday, followed by Rhinelander on April 11 and Green Bay on April 12.

Check out the road trip details here.

Click here to read the Gunderson Lutheran Health Systems testimony submitted yesterday to the JFC, in which the system spoke out against the governor's proposed gross revenues tax on hospitals and transfer from the Patients Compensation Fund.

Tuesday, March 27, 2007

More Testify About Health Care

Multiple people have testified in support of the expansion of BadgerCare and FamilyCare as proposed in the governor's budget, and for the governor's proposed increase to Youth Aids funding for counties.

The district court administrator for western Wisconsin called for support of reimbursement increases for counties to provide court interpreter services.

The administrator of the Dunn County Health Care Center asked for a 5 percent increase per year in MA funding for nursing homes. Gov. Doyle's budget includes a 2 percent increase. The administrator also voiced his opposition for bed tax increases for nursing homes.

Rep. Kitty Rhoades, co-chair of the committee, gave the originality award to a woman who testified in support of funding for managed intensive grazing, a method of farming that emphasizes sustainable practices.

Bart Appleton, a 7th grade teacher from Prescott, testified in favor of Doyle's proposal to repeal the QEO.

Mark Tyler, president of steel fabricators OEM, urged support for the state's technical colleges. He said his company's "growth is only limited by our ability to find highly skilled workers."

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UW Administrators Testify

The chancellors from the University of Wisconsin-Eau Claire and UW-Stout and the provost from UW-River Falls testified. The UW-Stout chancellor asked for continued funding for a manufacturing partnership program, UW-Eau Claire chancellor in support of the system growth agenda, and UW-River Falls provost for higher pay for faculty.

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More Testimony on Doyle's Budget

Marvel Lemke, the Register of Deeds for Taylor County speaking on behalf of the state Register of Deeds Association, testified regarding Gov. Doyle's proposed increases to copy fees for vital records.

Lemke said copies of birth certificates will be raised from $12 to $20 under Doyle's budget, and records for marriage and death certificates would raise from $7 to $20. She said the copy fees should not be diverted to other programs, and said more needs to be spent on preservation of vital records and for software updates for register of deeds office.

A CESA 10 employee testified in support of incentives in the budget for school districts who develop wind power.

One local resident spoke in favor of raising tipping fees to deter out of state trash dumping and for more money for the state land stewardship program. He also spoke in favor of reinstating the Public Intervenor position in the state Department of Justice, as Doyle proposed. The man referred to AG J.B. Van Hollen's decision to remove the state from an environmental lawsuit against the federal government, calling Van Hollen "no friend of the environment."

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Committee Hears Testimony About Corrections, UW Tuition and the QEO

The JFC has heard testimony from two pastors who would like to see full funding for Gov. Jim Doyle's $22 million proposal for Treatment Alternative and Diversion program in the Department of Corrections.

Five individuals banded together to support Doyle's proposal for early intervention funding for children with autism and for his proposal to mandate insurance companies cover people with autism.

A UW-Eau Claire student stepped up to ask for a tuition freeze in the UW System, and a tech school student asked for more financial aid for the WTCS.

The superintendent from the Pepin Area School District said his board opposes the governor's proposal to repeal the QEO unless it is accompanied by the rescinding of revenue limits and an overhaul of the school funding formula.

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More Testimony to Come

As of 1:30 p.m., there were 145 people signed up to testify.

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Other Testimony

The Neillsville School District superintendent said he is happy with Gov. Doyle's proposal to increase aids for special education, bilingual education funding and school transportation aids, but said overall the governor's education budget doesn't go far enough.

Ken Yost, of the Barron County Economic Development Association, asked the committee to support the governor's proposal to boost funding for the Wisconsin West Rail Transit Authority, and also asked for Department of Transportation bonding authority for WWRTA.

As with last week's hearing in DeForest, a large group of high school-age kids is at the meeting today dressed in bright orange long-sleeved t-shirts. They are representing Fighting Against Corporate Tobacco, and they urge the JFC to support Gov. Doyle's proposal to increase the $1.25 per pack increase for cigarettes and to increase funding for smoking cessation and avoidance programs.

Joan Curran of Gunderson Lutheran Health asked the committee to remove the proposed 1 percent tax on hospitals from the budget, saying the proposed tobacco tax increase would do enough to allow the state to capture more federal money for Medicaid. She also urged the committee not to allow a diversion of funds from the Injured Patients and Families Compensation Fund. Two local physicians also testified that the state should keep its hands off the patients compensation fund.

Three more superintendents of small school districts, Chetek, Mellon and Cameron, testified about the difficulties their districts face. A parent from Chetek and a retired school teacher from Chippewa Falls praised the governor's 2/3 school funding proposal.

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Testimony Supports Domestic Abuse Fundings, Health Care Reform

Liz Jones of Bridge to Hope, a Menomonie domestic violence shelter, testified in support of the governor's proposal to increase funding for domestic abuse programs.

Gene Meyer of Prescott, a member of AARP Wisconsin's executive committee, said health care reform is the number one issue for seniors. He said he supports Doyle's proposal to expand the BadgerCare umbrella to childless adults, the catastrophic reinsurance program, and the cigarette tax increase.

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Dentist Asks Medicaid Money Go Toward Dental Care

Dentist Kent Vandehaar asked for more Medicaid money to be directed for dental care. Vandehaar said his practice has stopped accepting MA patients because he loses money under the current reimbursement rate.

"I want to accept more patients, but I can't afford to," he said. He pointed out that of the $4.4 billion MA budget, only 1 percent is directed toward dental care.

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Locals Voice Concerns

Mark Drangstveit, a logger from Black River Falls, asked the committee to lift weight restrictions on bridges or to direct more cash to improve bridges to handle more than the 98,000-pound limit that is currently law. He said the current restrictions "are like putting a roadblock on every single highway in the state."

Dave Fish representing St. Joseph's Hospital spoke against the 1 percent gross revenue hospital tax. Fish said the budget's highest goal should be to help the poor, but said the tax is "not sufficent in looking at the long term viability and achievements of what needs to be done."

Neil Haselwander, a local realtor, voiced his opposition to the governor's boost to the real estate transfer fee, which he said would double the cost of the transfer fee on a $166,000 home from $500 to $1000. He said the transfer fee would stifle investment in the state.

Bob Sather of Ace Ethanol in Stanley spoke in support to the governor's renewable fuels initiatives in the budget, and said he believes the goal of having 25 percent of the state's energy come from renewable sources is achievable.

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Chippewa Falls Mayor Hedrington Opens Testimony

Chippewa Falls Mayor Dan Hedrington opens up the testimony by urging integrity in the budget.

He said his city has reduced spending and reduced taxes by honesty in budgeting.

"Honesty in the budget is essential," Hedrington said.

Hedrington told the committee to end the "shell game" of shifting segregated funds for unrelated purposes, and asked to restore general transportation aids to 1988 levels. He also asked to maintain the current level of the expenditure restraint program for municipalities.

The meeting is well-attended by local legislators. The non-committee members in attendance are Dem Sens. Pat Kreitlow and Kathleen Vinehout, GOP Reps. Jeff Wood, John Murtha and Terry Moulton, and Dem Rep. Jeff Smith.

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JFC in Chippewa Falls Today

The JFC's Chippewa Falls public hearing at the Chippewa Count Courthouse will get underway at noon.

A Senate page said residents started showing up for the hearing at 8 a.m. As of 11:20, there are about 80 people signed up to speak.

Among the local officials scheduled to address the committee are Chippewa Falls Mayor Dan Hedrington and Chippewa County DA Jon Theisen.

Monday, March 26, 2007

Suder: Some Building Projects May Be Too Costly For Budget

UW System schools are some of the big winners in Gov. Jim Doyle's capital budget. Last week, the Doyle-run Building Commission approved a $1.2 billion capital budget for 2007-2009, including $460 million in general fund supported borrowing.

Two years ago, the Building Commission approved a $1 billion capital budget with borrowing of $430 million. The Joint Finance Committee later cut the borrowing down to $400 million.

GOP members of the commission balked at the amount of borrowing in the budget, perhaps signaling problems in the Republican-run Assembly.

Gov. Jim Doyle addressed Republican criticism after the meeting, saying overall the level of borrowing in the budget is down, particularly in transportation due to the completion of the Marquette Interchange project, which according to the DOT will wrap up in 2008.

"We're right in the range of where you should be," Doyle told reporters. "The consequences of doing some of the things that were talked about today like just drastically cutting maintenance ... talk about pushing it off on future generations."

The capital budget now moves to the Joint Finance Committee, where it will likely face more criticism about borrowing levels, and will be rolled into the full budget bill upon approval from the Legislature.

Rep. Scott Suder, R-Abbotsford, a member of the JFC, said there are concerns over bonding and borrowing levels, and suggested some projects could be eliminated in committee.

"There are a number of important projects in the capital budget, however," he said. "What I think we're going to look at on the Joint Finance Committee is the ability to pay for those projects. It's a very aggressive capital budget, but there may be some projects we just are unable to afford."

Initial GPR debt service to revenues estimates put the load at 4.14 percent for fiscal year 2008, but Building Commission Secretary Rob Cramer provided a revised debt ratio schedule at the meeting that seemed to quiet the criticism for now. According to the revised estimates, the debt ratio will increase from 3.78 percent this fiscal year to 3.92 percent in FY08 and 3.93 percent in FY09, before falling back to 3.91 percent in FY10 and 3.85 percent in FY11.

See the memo:http://www.wispolitics.com/1006/070319DebtRatio.pdf

Adjusted for inflation, all fund spending on the state building program has dropped 4.5 percent over the last two budgets, according to figures supplied by the Department of Administration. The DOA figures also show a 5 percent decline in general funds supported borrowing over the last two bienniums when the dollars are adjusted for inflation.

See charts on the capital budget spending trend:http://www.wispolitics.com/1006/070323PurchasingPower.pdf

Click here to see the complete capital budget.

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Friday, March 23, 2007

Clancy Prepared Remarks

Click here to read the prepared remarks of Wisconsin Technical College System President Daniel Clancy, who testified yesterday before the JFC.

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Thursday, March 22, 2007

Committee Adjourns

The JFC has adjourned. The committee's next meeting is a public hearing on Tuesday at the Chippewa County Courthouse in Chippewa Falls.

Failure To Communicate

Rep. Scott Suder, a frequent and harsh critic of the UW System, didn't miss an opportunity to grill Reilly and Walsh today, questioning them on topics ranging from in-state tuition for "illegal immigrants" to the decision to remove faculty salary information from the Internet.

Suder, a Republican from Abbotsford, asked whether the officials had a cost estimate for Gov. Doyle's budget proposal to make in-state tuition available to undocumented individuals. Reilly and Walsh said they didn't have a figure, but after prompting from Suder said they approved of the policy.

"I'm glad UW administration is on record supporting that (tuition breaks for illegal immigrants)" Suder said. Reilly and Walsh argued that Suder was misrepresenting the policy, which requires students graduate from a state high school and are working toward citizenship, but Suder retorted, "You can spin it any way you want to."

When Reilly said the salary information for faculty was removed from a UW Web site because it provided an easy way for competing universities to recruit faculty out of the system, Suder asked for three examples of that happening.

"There's never been a question we lose star faculty to people who pay more," Walsh answered.

"I don't think it should be secret," said Suder.

Reily said the information is available on cd for any one who inquires. "Yeah, that's great," said Suder, adding that his constituents shouldn't have to go that step to determine how much taxpayer money is being spent on faculty salary.

Suder then delved into other personnel matters. "Does the housekeeper at the UW President's residence still have a backup position?" he asked. Reilly said that backup position has been eliminated. "I give you kudos for that," said Suder.

"Does the UW System currently employ felons?" he asked.

"Did you say felons?" Walsh asked. "There are no felons," he answered, before backtracking to say there are criminal background checks for new hires but the system has 31,000 employees and state statutes limit how employers can deal with employees with past criminal records.

Suder said the system "has made some progress" toward reform "but from my perspective certainly not enough." He cited the "scandals, spending sprees and other less than productive items" the system has faced in recent years. "It's difficult to go back to my constituents and say why on earth we should give more money to the administration."

Walsh said he would take Suder's criticism as constructive, but jabbed back that Suder hasn't responded to "six phone calls or letters" the administration has sent him to sit down and hash out the issues. "You've got to answer those phone calls first," Walsh said.

Suder said the university contacts have been answered, and said the lack of dialogue between the university and Legislature is a part of the problem. "Your communications with this Legislature have been somewhat critical at times," he said.

Reilly responded that the system's "Growth Agenda" is not about getting more money for UW administration, it's about getting more students into the system. He offered to come to Suder's district to meet with constituents and answer questions. "Let me have an opportunity to talk to your constituents and you," he said.

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Joke Of The Day

UW System President Kevin Reilly said his job is a lot like working in a graveyard.

"You have a lot of people working under you, but nobody's listening."

Donor State

Sen. Luther Olsen said his fear is that Wisconsin is becoming a "donor state" where taxpayers dollars are dedicated to higher education, but graduates leave the state for greener pastures because there aren't good jobs here.

He said the UW System's "Growth Agenda" doesn't do "nearly enough" to make the state appealing to grads. "If the university system doesn't help those people find jobs, you're going to drive us into bankruptcy - faster than we are going now."

Board of Regents President Walsh said Olsen has put his finger on the issue, but said the problem isn't that Wisconsin loses its college grads, it's that Wisconsin doesn't attract out-of-state grads. He said the elements are in place to create jobs in UW campus towns across the state, and cited the UW Research Park as an example of how the university can enhance the job base.

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Vos: UW Can't Admit When It's Wrong

Rep. Robin Vos said when he went door-to-door in his Racine district, he found that the negative news stories about the UW System has had an effect on people's perceptions.

"It has almost become a part of people's ingrained ideas of what the university is," he said. "People were asking me what can be done to stop them from wasting money, and make them realize it's the taxpayers who are paying for it, not just people who live in the ivory tower."

Vos said the system has a problem admitting when it is wrong, and has to be "pushed and shoved and dragged" into reforms. The Republican asked what is being done to restore public confidence.

System President Reilly said it was a "good and fair question" and reminded Vos of the list of reforms Board of Regents President David Walsh just listed in his opening remarks. (see post below) Reilly also said the UW System needs the help of the legislators to educate constituents about the reforms that have been made.

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Walsh: We've Made Changes

UW Board of Regents President David Walsh began his speech by complimenting the Legislature, saying the UW System is "a wonderful jewel" and it is all owed to the actions of the state Legislature.

He then focused on the reforms the UW System has made in the last few years. He said they have ended the practice of backup appointments for staff and faculty, and reformed the way the system uss consultants and how they govern sabaaticals for employees. The system is also in the process of reforming the sick leave and vacation policies, "And we are ahead of the system in doing so," Walsh said.

He also said policy has been changed to require system president approval of any settlements with employees, and they have also instituted criminal checks for all employees.

"We've made those changes because we saw something that was broken and we fixed it," Walsh said.

He said the university has weathered budget cuts, and is now proposing a plan to increase accessibility of four-year degrees to state residents.

But, he stressed, the system is responsive to the Legislature.

"We need to be accountable to you, and we promise we will be," Walsh said.

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Reilly Begins Testimony

You can click here to see Reilly's prepared remarks, which he is using as a guideline to his testimony.

Reilly is emphasizing the need to increase the number of college graduates in the state. In Wisconsin, 25.5 percent of residents have four-year degrees, which lags 2 percent behind the U.S. average and 7 points behind Minnesota. He said the "Grow Wisconsin" agenda included in the governor's budget is a blueprint for bridging that gap.

Reilly admitted that the UW System has done a "lousy job" of attracting non-traditional students, saying during times of budget cuts universities tend to focus on traditional-age students. He estimated that about 1 million Wisconsinites have some college credit but have not finished their degrees, and said the UW needs to do a better job of roping in those non-traditional students.

UW System President Reilly Prepared Remarks

Higher Education Aids Board is still at the plate, but UW System President Kevin Reilly and UW System Board of Regents President David Walsh will testify next.

Click here to read Reilly's prepared remarks.

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Clancy Testimony Brief

Rep. Robin Vos and Rep. Kitty Rhoades said the recent articles about the pay scales for WTCS instructors have prompted a lot of questions from constituents.

"Not a whole lot of constituents I know believe the faculty at the university is underpaid," said Vos. "But they oughta see the tech college."

Vos lamented the dramatic increases in the property tax rate assessed by WTCS and tuition hikes that have resulted in recent years. WTCS President Clancy said the increases were a result of decreases in state aid.

Clancy explained the issue of faculty compensation as a "complicated one," saying that full-time faculty work more than full-time hours, and their salary reflects that. He also said salaries are more competitive because of pressures from the private sector.

Overall, Clancy said, WTCS does a good job of managing costs.

Vos wasn't buying. "Can you have your office provide any cost saving mechanism you've put into place rather than just asking for more money?" he asked.

Both Rep. Rhoades and Rep. Steve Kestell expressed misgivings about the taxing power of the WTCS.

"I love to support the tech schools," Kestell, R-Elkhart Lake, said. "My job gets tougher though recognizing it's an unelected board with taxing authority. At tax time my job gets tougher. Decisions to increase spending need to be made with the utmost care."

Rep. Scott Suder asked about a provision in the governor's proposal that he says "is a tuition break for illegal aliens." Clancy responded that the initiative requires that the students graduate from a Wisconsin high school and be in pursuit of citizenship to be eligible for the program. He said it was an opportunity for the "undocumented" individuals to reach self-sufficiency.

Replied Suder, "Either way you cut it, this is a tuition break for illegal aliens. It's a major policy shift, and I don't think it belongs in the budget."

The Higher Education Aids Board is up now.

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Tech School Testimony Starts

WTCS President Clancy's says with state funding for tech schools shrinking, more of the burden is being put on property taxpayers. In the mid-90's, state aids accounted for 24 percent of major revenues, Clancy said in his opening statement.

In 2006-07, the state provided 14.5 percent of major revenues, as compared to 19.5 percent in 2001, Clancy said.

"With no increase in state aid over the next biennium, the state's share will drop even further," Clancy said. "To ensure the availability of critical technical education and training programs, the WTCS requested an additional $31.9 million in general aid funding over the biennium."

Clancy also asked for an increase in Wisconsin Higher Education Grants for the tech schools. The governor's budget includes an increase of 2.5 percent annually. Clancy said WTCS budget request included an 8.1 percent annual increase, or $4.2 million over the biennium.

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DPI Testimony Over

DPI Supt. Burmaster is finally off the hot seat. Next up is Daniel Clancy, president of the Wisconsin Technical College System.

The JFC is on a five minute break.

Rhoades Tells Members To Keep It Short

Rep. Kitty Rhoades, the co-chair of the committee, reminded the legislators that they still have a long day ahead of them with the UW System, technical schools and higher education board coming up. She asked both sides of the aisle to narrow their questions.

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Vos Attacks Burmaster's Board Of Regents Vote

Seizing on an opportunity, Rep. Robin Vos grilled DPI Supt. Burmaster, at the committee to testify on the preK-12 budget, on her vote as a member of the Board of Regents to raise UW tuition for in-state students while at the same time lowering it for out-of-state students.

Vos said he was "surprised" that as an elected official Burmaster made a decision that goes against the best interest of state residents.

Burmaster bristled. "That's a misrepresentation of that, and that's been clarified countless times. Countless times," she repeated.

Burmaster said in order to keep tuition low for in-state students, the state has to lure a certain number of out-of-state students, who pay higher tuition rates, to the UW system.

When Vos accused her of repeating UW System spin, Burmaster's ire was raised again. "You're saying it's spin - I'm saying it's accurate understanding of economics."

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AG Van Hollen's Prepared Remarks To JFC

Click here to see Van Hollen's prepared remarks.

Olsen Says School Boards Want to Keep QEO, Says Schools Would Be in Worse Shape if Budget Is Passed

Sen. Luther Olsen, R-Ripon, said that local officials and members of school boards are "begging to keep the QEO."

Olsen then asked Burmaster why she and Dem Gov. Jim Doyle believe that eliminating the QEO is best for schools.

Burmaster said that it just shows the schools are struggling financially, and eliminating the QEO is the only way she can see to get "out of a quagmire."

Olsen went on to express concerns that Doyle's budget proposal also falls $100 million short of the complete two-thirds funding of public schools.

"If we pass this budget...education in my mind would be in worse shape (than now)," Olsen said.

"You have every opportunity to shape that budget," Burmaster responded.

Olsen continued that line of questioning, asking if the committee should be concerned that the budget doesn't include two-thirds.

"The governor's budget goes a long way in helping students and it's on the table right now," said Burmaster.

With further prompting from Olsen she said, "Take a look at my budget and see what I proposed," she said, referring to the proposal she handed in that included two-thirds funding. "But like I said, I don't have as hard a job as the governor - I'm the advocate."

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Decker: "I'm Afraid Schools Are Becoming The Catch-all For Everything"

Dem JFC Co-chair Sen. Russ Decker said he is wary that the schools are "becoming the catch-all" for everything.

Decker said he supports safety in schools, but that adding more and more officers to schools should be the community's responsibility, not the schools.

However, Burmaster said that the extra police presence in schools is for the "security of the institutions."

Rhoades Asks About SAGE Program

Republican JFC co-chair Rep. Kitty Rhoades asked why some schools participating in the SAGE funding program, especially those in Milwaukee, ask to have the flexibility to have a 20-1 pupil to teacher ratio, when the program is supposed to be a 15-1 pupil to teacher ratio.

Rhoades pressed further and told state Superintendent Elizabeth Burmaster if there are waivers granted to increase the student to teacher ratio, then there might be a problem with the program.

Superintendent Elizabeth Burmaster said the intent of the SAGE program is to get to 15-1, but if the budget planning takes place in the spring and hires teachers then, more students may come to class the first day.

Burmaster said this is specifically evident in high poverty areas where children move from school to school often. Burmaster said this is why there should be some flexibility and why she has the authority to grant conditional waivers, only to check later and make sure the district complies with SAGE's requirements.

During the discussion, Rhoades shook her head.

Burmaster then said that many schools want SAGE, but they "can't afford it," and the number of schools enrolled in SAGE has gone down since its inception.

Burmaster said she would never grant a waiver to a school for SAGE funding that doesn't fulfill the class grade requirements.

Rhoades said the Legislature did not discuss the "opportunity of waivers with the original sage legislation."

Burmaster Supports QEO Repeal

DPI Supt. Burmaster says she supports the governor's proposal to repeal the qualified economic offer, saying teachers shouldn't be singled out for collective bargaining constraints.

She also touted the governor's initiatives to aid small, rural school districts, his proposals for SAGE funding, and to increase aid for bilingual and bicultural education. She said Wisconsin "has a long history of embracing and educating our newest immigrants" and that the number of Latino students in the preK-12 schools is expected to double to 60,000 over the next decade.

Van Hollen Testimony Ends

AG Van Hollen's testimony ended with another volley of questions from Sen. Taylor about the DOJ's handgun hotline and his requests for amendments to Doyle's budget. Co-chair Rhoades, for the second time in the last 10 minutes, had to lightly use her gavel to break it up.

DPI Superintendent Elizabeth Burmaster has begun her testimony.

Taylor Admonishes Van Hollen

Sen. Lena Taylor admonished Van Hollen for his remarks today about the Public Intervenor position and the civil rights division in DOJ proposed by Gov. Jim Doyle.

Taylor, a Milwaukee Democrat, said the DOJ should be at the forefront of civil rights issues, not abdicate them to the federal government. She also said the state's legacy of environmental protection would be furthered by the reinstatement of the Public Intervenor position.

When she asked Van Hollen what the DOJ is doing to address unmet needs of low income or indigent defendants, the dialogue turned a bit testy. Co-chair Rep. Kitty Rhoades drew the line, suggesting Taylor should take up those questions in the Senate Judiciary Committee Taylor chairs.

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Van Hollen Rejects Public Intervenor, Civil Rights Proposals

Rep. Scott Suder asks AG Van Hollen if he backs Gov. Doyle's proposal to reinstate the Public Intervenor position to the DOJ.

"Do you belive that taxpayers of this state need to pay for a position to sue the taxpayers of this state?" asked Suder.

Van Hollen responded that reinstatement of the position would redirect money that could be better spent on other crime-fighting efforts, and called the Public Intervenor "a waste of resources."

Suder also asks if the governor's proposal to establish a division in the DOJ to deal with civil rights cases is a good idea. Van Hollen said such a division would be "duplicative" because the federal government already has authority over civil rights cases.

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Van Hollen: New DNA Analysts Will Be In Madison And Milwaukee

AG Van Hollen ends his prepared remarks. Committee co-chair Sen. Russ Decker asks if any of the new DNA analyst positions will be located in Wausau to serve northern Wisconsin. Van Hollen responds, "I'd love to, but I don't think our efficiencies are going to allow us to do that."

Van Hollen explains that there aren't facilities outside of Madison and Milwaukee for the analysts to work, and the newly hired analysts will get up to speed faster if they are located in one of the state's two largest cities.

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Van Hollen Kicks Off Testimony

AG J.B. Van Hollen kicked off a full day of agency testimony before the Joint Finance Committee. He starts by saying since he is in the "unique" position of being a newly elected constitutional officer whose predecessor was from a different party, he played no role in preparing the budget request turned in by the Department of Justice last Sept.

Van Hollen asked the committee to exempt the DOJ from budget lapses that may be included in Gov. Doyle's budget.

The Republican AG also asked that the budget include $7.7 million to fund the newly created DNA analyst and supervisory positions included in the budget repair bill signed by Doyle last week. He also wants to strike a provision in the budget calling for a legislative audit of the state crime labs, saying pursuing an audit now would be "unnecessarily duplicative" at this time.

Check back soon for full text of Van Hollen's prepared remarks.

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LAB Says Patients Comp Fund Healthy, But Warns Against Fund Transfer

A Legislative Audit Bureau report says that the Injured Patients and Families Compensation Fund holds it's highest year-end balance ever of $59.8 million as of June 30, 2006, and "maintains a sound financial position," according to the LAB. The Patients Compensation Fund insures participating physicians and other health care providers in Wisconsin against medical malpractice claims that exceed the coverage limits of their primary malpractice insurance.

The LAB also reports that the recent court decisions to overturn limits on noneconomic damages in medical settlements changed the amount the funds may be required to pay.

The LAB report does "caution" making a proposed $175 million transfer from the fund, as Gov. Jim Doyle has proposed in his 2007-09 budget to establish a health care quality fund, would create a deficit and may result in future increases in provider assessment rates.

The fund has paid out more than $633.6 million since its inception in 1975.

Click here to read the highlights.

Click here to read the full report.

Wednesday, March 21, 2007

Arlington Hearing Wraps Up

The public hearing at the Arlington Agricultural Research Station wrapped up at about 4:40 p.m.

The JFC will be in action again tomorrow, hearing testimony from the heads of the Department of Justice, the Department of Public Instruction, Wisconsin Technical College System, Higher Educational Aids Board, and University of Wisconsin System. The hearing begins at 10:30 a.m.

On Tuesday, the JFC lands at the Chippewa Falls County Courthouse, 711 N. Bridge St., for a hearing scheduled from noon to 5 p.m.

One of the recurring themes in the six-plus hours of testimony the committee members heard today was support for the governor's proposal to require insurers to provide coverage to autistic individuals.

At least a half dozen residents stepped forward to voice their support for the initiative, including a 9th grader who said he was diagnosed with autism at age three but through treatment now lives a normal high school life, including participation in sports and music. A mother of an autistic child said she and her husband pay $40,000 per year for therapy for their child.

A representative from the Boys and Girls Clubs of Wisconsin stepped up to ask for continued support for the program, and for the $100,000 increase in funding Gov. Doyle has included in the 2007-09 budget.

A representative from the League of Women Voters spoke about K-12 education, saying the current funding formula "is failing our children and making the referendum a way of life for our school districts."

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UW Academic Staff Oppose Collective Bargaining Language

The Academic Staff Professionals Representation Organization is opposing Gov. Doyle's proposal to allow collective bargaining for UW staff and faculty because the language in the budget bill separates staff and faculty into two bargaining units.

Mary Lou Reeb, a UW academic staff member, told the JFC the proposed language "de-couples" the two work groups and could harm the "collegial" work relationship between faculty and staff.

Click here to see a memo from ASPRO to the JFC.

Click here to see a resolution passed by the Council of Academic Staff Senators of the University of Wisconsin Colleges opposing the collective bargaining budget provision.

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Budget Should Invest More in Education of Inmates, Prison Educator Says

The budget includes the creation or restoration of up to 300 Department of Corrections positions, but none of those are for prison educators, said Mickey Kaiser, a teacher at Fox Lake Correctional.

Kaiser said the lack of funding for new correctional educators is "fiscally irresponsible," and will lead to more recidivism.

Kaiser cited a Maryland study that found for $1 million in funding for correctional education, 600 crimes are prevented. Conversely, that same $1 million spent on incarceration prevents only 350 crimes, he said.

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Budget Cuts Not "Fair"

A reduction in the amount of state aid to county fairs is having a "negative effect" on the quality of Wisconsin's 77 county fairs, according to Harry Nienaber, president of the Wisconsin Association of Fairs and general manager of the Central Wisconsin State Fair in Marshfield.

Nienaber said state aid to fairs was $650,000 in 2000, but has dropped to $250,000 currently. At the same time, fairs are dealing with increasing energy and insurance costs.

The cuts have resulted in some fairs lowering premiums paid to prize winners, he said, saying one county fair wasn't able to pay their premiums until they received their state aid check in February.

"Restore that aid," Nienaber said. "It's the best money you can spend and it'll keep the kids busy."

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Nass Urges GOP Leaders to Start from Base Funding and Work Up

Rep. Steve Nass, R-Whitewater, urged Assembly Speaker Mike Huebsch, R-West Salem, and Joint Committee on Finance co-chair Rep. Kitty Rhoades, R-Hudson, in a letter to start working with the 2007-09 state budget from base funding up, rather than working directly from Democratic Gov. Jim Doyle's proposal.

Nass said if the committee works from Doyle's proposal, the JFC would need a 9-7 vote to remove an individual item, "virtually assuring the Senate Democrats absolute control over the final outcome in the Joint Finance Committee," according to Nass.

He added that Democrats in the Senate took a hard-nosed budget approach when Republicans controlled the Assembly and a Republican was governor, and blames this for the resulting $3.2 billion structural deficit.

Read his letter

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Testimony Moving Swiftly

About 125 people signed up to speak at the hearing. About 40 have spoken so far. Some of those who had signed up to speak left without taking their turn.

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Group Calls for Expanded Biodiesel Program

A group of biodiesel producers and farmers called on the committee to expand its biodiesel program. An informational workshop was held before the hearing on biodiesel technology.

Read more about the group's agenda here.

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Columbus Hospital CEO: Hospital Revenue Tax "flawed"

Columbus Community Hospital CEO Ed Harding testified in front of the Joint Committee on Finance, saying Doyle's proposed 1 percent gross revenues tax on hospitals is "genuine," but is flawed and hopes the committee will take it out. Harding continued and said that the tax will "destabilize" the Medicaid program and funding.

He instead hoped the committee would pass a proposed cigarette tax increase.

Read his testimony here.

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DWD Specialist Testifies in Favor of Doyle's Budget

John Verberkmoes, a quality assurance specialist with the DWD's Bureau of Child Support, testified in favor of the governor's budget provision to eliminate contractors for the Employee Trust Fund agency and requesting additional position authority.

"While requesting additional position authority requires action by this committee, much less scrutiny has been given to hiring contractors," Verberkmoes, a member of the Wisconsin Professional Employees Council AFT Local 4848, said. "Yet as experience has shown, contractors cost the taxpayers of this state more money than utilizing state employees, with much less to show for the investment."

As an example, Verberkmoes said in the Department of Revenue the governor proposes additional revenue-generating jobs "that will help ensure everyone is paying their fair share. Eleven positions could generate over $600,000, and the funding for these positions would not come from GPR dollars."

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Other Issues

The committee has also heard from citizens who are in support of the governor's proposed $950,000 increase in domestic violence prevention funding, and those who would like more funding for legal assistance for the indigent and certified court interpreters. Other advocates are speaking out for more funding for the disabled and an expansion of the FamilyCare program, domestic partnership benefits, increased funding for the UW System and collective bargaining rights for faculty.

Two special education teachers from Lodi testified in favor of the governor's proposal to repeal the QEO.

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JFC Hears from School District Superintendents

The committee heard from two school district superintendents of widely varying sizes; Markesan School District Supt. Sue Alexander and Madison Supt. Art Rainwater. Both said their budgets have been shrinking.

Alexander said her declining enrollment district faced dissolution, but on the second try residents approved funding to keep the district afloat. Markesan has lost more than $1.6 million in funding in recent years due to declining enrollment, she said. But she urged the committee to adopt the per pupil increases included in Gov. Doyle's budget, and to raise the low revenue limit ceiling by $400.

Rainwater said the issue for his district is the revenue cap, and said his district has lost $53 million in recent years, and will be down $10.5 million this year.

"Give us the resources to meet standards, or be willing to change those standards," Rainwater said.

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Nursing Facility Administrator Speaks Against Bed Tax

Terry McGinnity, administrator of the Lodi Good Samaritan Center, a 91-bed skilled nursing facility, spoke against the proposed bed tax increase for nursing homes.

The governor has proposed a 2 percent Medicaid rate increase in each year of the biennial budget. McGinnity said that increase should be 5 percent.

The proposed 2 percent increase would be funded by a raise in the nursing home bed tax, from the current $75 per month to $101 per month in 2007-08 to $125 in 2008-09, according to Doyle's budget.

McGinnity said in 2005-06, his facility experienced a MA deficit of $500,000, a loss of about $25.50 per day for each of the 51 Medicaid residents they serve.

The Medicaid rate at the facility is $136 per day at the Lodi facility, while the rate a private pay resident pays is about $198 per day, McGinnity said.

"We therefore ask 27 percent of our residents, those who pay privately, to pay about $62 a day more for the same care received by the 64 percent of our residents who are Medicaid recipients," he said. "On top of that, these private pay residents are paying $75 a month in a nursing home bed tax and SB 40 suggests they pay $50 more per month in 2008-09. How is this really fair, and when can we expect it to stop?"

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Local Officials Give JFC an Earful

Local officials are giving the committee an earful on the delays to the expansion of US Hwy. 51. They say the situation is life-threatening and are frustrated the expansion of the highway to four lanes has been put off.

Alan Harvey, chairman of the Town of Windsor, said the expansion project had been at the top of the DOT's minor project list, but was moved to a major project and put at the bottom of the list. The highway is seriously over capacity, and motorists are "seriously placing our lives at risk" on the roadway.

"We are playing Russian roulette with our loved ones," Harvey said.

He said the project is in a "bureaucratic quagmire," and expansion has been delayed until 2025 or 2030.

In other testimony, the committee is hearing support for the proposed $1.25 per pack increase in cigarettes, and against the proposed 1 percent assessment on hospitals and the "raid" of funds from the patient compensation fund.

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Begin the Testimony

University of Wisconsin-Madison Dean of the College of Agricultural and Life Sciences Molly Jahn opened up the public hearing by urging the committee to continue investment in post-high school education. She said the state invests $110,000 per child in K-12, but said that investment is lost if those children don't continue their education in the state college system.

Dane Co. Exec. Kathleen Falk spoke next, urging the committee to support the Early Childhood Initiative, and urged them to reauthorize and expand the Knowles-Nelson Stewardship program, as Gov. Jim Doyle's budget requests.

Falk criticized the budget for not providing enough aid for counties to house probation and parole holds in county jails. "P & P holds are the single biggest reason Dane County has jail overcrowding," she said. "P & P holds are the state's responsibility; please accept your responsibility and don't put it on the county's shoulders."

Speakers are limited to three minutes each.

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Arlington JFC Road Meeting Called to Order

The meeting is called to order promptly at 10 a.m.

Roughly 150 are in attendance. The committee members give brief introductions. About 100 tickets have been handed out for people to speak.

Dane Co. Exec. Kathleen Falk is among the elected officials waiting to speak.

See Falk's release about probation and parole reimbursement to counties here.

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Tuesday, March 20, 2007

Milwaukee Leaders Praise Doyle Budget

A parade of Milwaukee-area officials, with a few caveats, expressed support for Gov. Jim Doyle's proposed budget at a public hearing today the Joint Finance Committee held at the University of Wisconsin-Milwaukee, the first in a series of forums to gather input.

Milwaukee Mayor Tom Barrett applauded a number of Milwaukee-targeted measures in Doyle's budget, but asked the committee for extra help on shared revenue and funding the city's school choice program and police force.

Barrett said he plans to add 50 additional police officers next year and another 50 the following year. He said Doyle's proposed $4 million increase, while welcome, is not enough to cover the $6.5 million increase in police costs next year the city will see even before adding more officers.

"The problem intensifies when we must also ensure that we continue to provide the level of quality services that our residents expect and deserve," Barrett said.

Barrett also said he was "disappointed" that a proposed increase of $4.10 per ton on recycling tipping fees will not be funneled into the recycling fund for local governments.

"For Milwaukee alone, this amounts to $1.3 million in additional cost, further eating at our shared revenue total," Barrett said.

About 500 people packed the Wisconsin Room at the university, many clapping and applauding when local legislators introduced themselves. Speakers were kept to three-minute comments, and several officials were gently chastised for running over.

The Joint Finance Committee plans five more public hearings on the budget over the next few weeks and will be in DeForest tomorrow.

Milwaukee County Board Chairman Lee Holloway expressed support for proposed increases to circuit court and youth aids, but knocked the budget for increasing the cost to send juveniles to state facilities.

"By the end of the biennium, it will cost counties more than $100,000 to send one juvenile to a state institution," Holloway said. "You could send two students to Harvard for that cost."

Holloway, who also stressed the need to take public transit off of the property tax base, said he was opposed to the proposed $13 increase in car rental fees to pay for the KRM line and asked for the committee to support the county's pension obligation bonding plan.

Milwaukee County Circuit Court Chief Judge Kitty Brennan said that Doyle's proposed budget does well for the courts by returning some of the court fees the state collects to the counties.

"The budget shares the burden with the county in the appropriate way," Brennansaid. "If you don't want to incur the wrath of the founding fathers of this country, and mothers, then you better fund it properly."

Karl Ostby, a representative from the Southeastern Wisconsin Regional TransitAuthority, said state, county and city leaders need to approve funding for theproposed KRM commuter rail line and find a dedicated funding source for local transit.Ostby laid out a series of potential economic development benefits the KRM line could bring, including adding jobs and reducing the brain drain to Chicago. "I think if Milwaukee wants to be a major city, it needs to have commuter rail," he said.

Milwaukee School Superintendent William Andrekopoulos and Milwaukee Common Council President Willie Hines, Jr. were also among officials who spoke this morning.

The committee will continue hearing testimony from community members throughout the day.

-- By David Wise

DOA Secretary Morgan Sends Errata Letter to JFC

Administration Secretary Mike Morgan sent a letter outlining a handful of modifications to the budget bill to make it more closely reflect Gov. Jim Doyle's intent for the document.

Click here to see the letter.

WMC's Buchen: Doyle Budget "Moving Us In the Wrong Direction"

Wisconsin Manufactuers & Commerce vice president of government relations Jim Buchen has a list of suggestions for the 2007-09 budget.

Among them is to decrease benefits to public employees, protect segregated funds, and pass a bill introduced by Sen. Ted Kanavas, R-Brookfield, and Rep. Robin Vos, R-Racine, to reduce all of Wisconsin's individual income tax brackets by one percent of the rate.

Buchen also says WMC is in opposition to Gov. Jim Doyle's proposal to raise the property tax cap to 4 percent, to assess a 2.5 percent franchise fee on oil companies, and to place a 1 percent assessment on hospitals in an attempt to capture more federal money. WMC is also opposing the governor's plan for Wisconsin to join the multi-state Streamlined Sales Tax Agreement, saying
"adopting SSTA as drafted effectively raises business taxes by an amount estimated to be in the tens of millions of dollars."

Click here to read Buchen's testimony.



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Capital Budget Passed By Commission

The Building Commission approved a $1.2 billion capital budget for 2007-2009, including $460 million in general fund supported borrowing. Two years ago, the Building Commission approved a $1 billion capital budget with borrowing of $430 million. The Joint Finance Committee later cut the borrowing down to $400 million.

Click here to see the 2007-09 Capital Budget.

As was the case last week in the JFC, GOP members of the committee expressed concern about the level of borrowing in Gov. Jim Doyle's budget.

"I'm concerned about the debt load for the future," said Rep. Dean Kaufert, R-Neenah.

Sen. Ted Kanavas, R-Brookfield, said transfers from the Transportation Fund last budget are the culprit. He said constituents ask him "how much more they will be asked to do, and my answer is they truly can't do anymore."

Doyle countered that cuts to the capital budget delay necessary maintenance, and the delays end up costing more in the long run. He challenged the Republican legislators to list their cuts.

"I hope you're ready to vote on what projects you're going to cut in order to get that done," he said.

Rep. Phil Montgomery, R-Ashwaubenon, said the governor's veto pen could erase whatever changes the committee would make. "What assurances do we have that they won't be vetoed out of the budget?"

Doyle's response drew a laugh from those assembled. "Well, I'm not telling you what I'm going to veto and not veto, if that's what you're talking about," he said.

Speaking with reporters after the meeting, Doyle said the level of borrowing in the budget is down, particularly in transportation due to the completion of the Marquette Interchange project.

"We're right in the range of where you should be," Doyle said to reporters after the meeting. "The consequences of doing some of the things that were talked about today like just drastically cutting maintenance ... talk about pushing it off on future generations."

Click here to listen to Doyle's Q&A with reporters.

In Milwaukee yesterday, Doyle today touted $800,000 in state aid to revitalize the Pabst Brewery complex as the catalyst to help spur some $250 million in investment as he touted four grants for the Milwaukee area.

Doyle announced three other grants that will be in his capital budget: $3 million to move forward with a new engineering campus for UW-Milwaukee, $10 million for the Medical College of Wisconsin to go toward its translational research facility to purchase and house a new imaging scanner and $300,000 for the School of Public Health in Milwaukee. Doyle presented the $800,000 grant for brownfield cleanup at the Pabst site to the project's director, John Kersey, in the site's historic Blue Ribbon Hall.

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Monday, March 19, 2007

JFC Co-chairs Ready for Philosophical Budget Battle

The battle lines of the 2007-09 budget, what Hudson GOP Rep. Kitty Rhoades calls "deep philosophical divides," have been drawn this week during agency briefings before the Joint Finance Committee."

The question is should the state live within its means? I believe yes," said Rhoades, the co-chair of the budget-writing committee, today in an interview with WisPolitics. "That's how you build stable programs. It doesn't do any good to go build some new great Cadillac program and then go, 'Oh, by the way we can't afford this.' Now you've put people's lives at risk, and you haven't governed."

Partisan differences have been most apparent in discussions over Gov. Jim Doyle's proposals to institute a 2.5 percent tax on oil companies to pay for state road needs, and a 1 percent assessment on hospitals that the administration says will capture more federal money for medical assistance reimbursements.

Rhoades' co-chair, Dem Sen. Russ Decker of Weston, said the GOP philosophy of "cut, cut, cut us into prosperity" isn't working."

"Democrats are siding up with Jim Doyle's proposal to go after the oil companies for the franchise fee," Decker told WisPolitics. "And for the life of me I can't figure out why anyone is opposed to bringing 575 million more federal dollars into this state, and the hospitals would get a rebate of $290 million than what they're getting now."

Rhoades said she would prefer that the state budget using available revenues, and build programs accordingly. But, she didn't say that the budget proposed by the governor will be scrapped and rebuilt.

"That will be a negotiated process," she said. "We haven't had this dynamic or this galaxy of a Democratic governor with split houses since Patrick Lucey. There's not a lot of historians walking around saying, 'This is how you do it.'"

Click here to listen to an interview with Rhoades.

Click here to listen to an interview with Decker.

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Friday, March 16, 2007

Hayden Prepared Remarks

Click here to view the prepared remarks of DHFS Secretary Kevin Hayden to the Joint Finance Committee, delivered earlier today.

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Go Badgers!

Meeting concludes, no doubt so interested panel members could catch the tip-off.

The committee will be on the road next week conducting public hearings. The first is at the University of Wisconsin-Milwaukee on Tuesday. On Wednesday, the committee will meet in DeForest.

The final day of agency briefings is Thursday, when the Department of Public Instruction, the Tech Colleges and UW System will be before the committee.

Doyle Signs Budget Repair Bill

Or, as the press release calls it, the budget "adjustment" bill. It's all about semantics these days.

Click here to see the press release from the governor's office.

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Decker: If Tax Dies, Hospitals Should Suffer Consequences

Committee co-chair Sen. Decker said he can't understand why anyone would be opposed to the governor's plan to capture more federal medical assistance dollars through the assessment of a 1 percent tax on gross hospital revenues.

If the tax doesn't make it into the final bill, Decker said hospitals should suffer the consequences.

"If hospitals muster enough votes to kill it, I don't think we should give them any increase (in MA reimbursements) because they brought it on themselves," said the Weston Democrat.

"Sick Tax"

Vos questioned whether the state will begin to collect the hospital assessment, which he called the "sick tax," before it receives federal approval. The budget indicates the state would begin to collect it as of July 1, but federal approval for the assessment could take much longer, Vos said.

DHFS executive assistant Helgerson answered that they are "optimistic" that approval can be received by July 1, and reiterated that the purpose of the assessment is to capture more federal medical assistance dollars for hospitals. Helgerson also cited assessments that have been adopted in other states. In Illinois, he said, the hospital association wrote a letter commending Illinois Gov. Blagojevich for their 2 percent gross revenue tax.

Vos said that may be the case in states where organizations have to deal with "tax and spend Legislatures," but vowed it won't happen here. "I guess it's fortunate for the people of this state that there are some who are going to stand up against that tax increase and make sure it doesn't happen," Vos said.

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Vos Questions Family Planning Funding

Rep. Robin Vos questioned an item in the DHFS budget that funds $88,200 for the family planning demonstration project.

"I imagine it is for condoms pretty much, right?" he asked.

An aide to DHFS Secretary Hayden explained that it is a reflection of the governor's proposal to amend the program to include family planning services for men.

Vos Doubts Funds Are Safe

Rep. Robin Vos questioned whether the governor's plan to establish the Health Care Quality Fund will be safe from raids.

The HCQF is described separate, nonlapsible trust fund that would be funded by revenue the state collects from taxes on tobacco products and the 1 percent assessment on gross hospital revenues.

Vos said as far as he's seen, "No fund in this budget is safe."

State budget director Dave Schmiedicke said the funds are "nonlapsible" because they don't automatically lapse to the general fund at the end of the fiscal year. Badgered by Vos whether this means they can be "raided," Schmiedicke said "If the Legislature so decides to transfer trust funds as they have in the past."

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Jauch Doesn't Like MA Funding Shift, But Says Its The Only Option

Sen. Bob Jauch said in the last several budgets the state hasn't provided adequate reimbursement to hospitals who care for poor patients. He said while he believes the state should be picking up more of the medical assistance reimbursement, going after more federal dollars, triggered by assessing a hospital gross revenue tax, as the governor has proposed is the best option.

"It's the only choice we have when we lower taxes as much as we have," he said.

DHFS Secretary Hayden said the sole purpose of the assessment is to pass more money on to the hospitals for medical assistance reimbursement.

Racine Republican Rep. Robin Vos questioned Jauch's assertion about lower taxes. "Spending has gone from $33 billion to $55 billion over the last decade). Even though you think we're being successful, the numbers from the Fiscal Bureau show we've almost doubled spending in the last 10 years."

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Medicare Part Dumb

Sen. Bob Jauch asked DHFS Secretary Hayden to expound on why SeniorCare is preferable to what the Superior Democrat called "Medicare Part Dumb."

Hayden said internal DHFS projections find SeniorCare saves the federal government over $404 million (he called this a conservative estimate) and saves over $700 million in total. Plus, he said, Wisconsin seniors like the program for its simplicity, and if forced to join Medicare Part D, seniors may not be able to afford their prescription medications. He said the SeniorCare model is "distinctly different" than Medicare Part D.

Decker Asks For Brevity

Citing yesterday's long-winded questioning, committee co-chair Sen. Decker asked committee members to keep their "comments brief and questions very succinct."

Hayden: Hospital Tax "Both Viable And Permissible"

DHFS Secretary Hayden said the governor's proposal to assess hospitals a 1 percent gross patient revenues tax is a "permissible approach" that will generate $702 million to increase the Medicaid rates to hospitals.

He said the administration is aware of the concerns raised by groups like the Wisconsin Hospital Association, and has retained a consultant to address those concerns.

"We will continue to refine the model as we develop the request for federal approval and look forward to working with the WHA and Legislature as we design the assessment and payment structure," Hayden said.

Hayden also said he expects federal approval for the expansion of BadgerCare Plus. With the approval the expanded program would begin in January 2008.

Helgerson To Take Over State's Medicaid Program

DHFS Secretary Kevin Hayden opened his statement to the JFC with a bit of news; his executive assistant, Jason Helgerson, will become the state's new Medicaid director on Monday.

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DHFS Hearing Begins Shortly

A handful of committee members have assembled. Meeting should commence in a bit.

Thursday, March 15, 2007

Dilweg Prepared Remarks

Click here to read OCI Commissioner Sean Dilweg's prepared remarks to the Joint Finance Committee delivered earlier today.

"Uncle" Rodney Tells It Like It Is

Railroad Commissioner Rodney Kreunen, affectionately known around the state as "Uncle" Rodney, covered the broad range of his responsibilities during his testimony to the JFC.

Kreunen said there is a lot of work with railroads, but he said he doesn't work 100 hours a day anymore. "At 70 years old, after 9-10 hours I get a little weak in the knees," he admitted.

Though he has just five staff in his department, they are responsible for monitoring more than 4,000 crossings around the state, he said. And, he said, he's learned that when someone calls him "a gray-haired SOB, they don't mean sweet old boy."

The department operates on an annual budget of about $500,000, he said, but he wasn't here today to ask for more money. "That's not our approach," he said.

As is his custom, Kreunen came before the legislators armed with maps - laminated, of course. "I personally paid for the cost of lamination on those - they last longer," he said.

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Listen Live

The budget blogger had to step out of today's agency briefings as committee members continue questioning OCI Commissioner Dilweg about the mental health insurance mandates included in the governor's budget. Following Dilweg's testimony is Railroad Commissioner "Uncle" Rodney Kreunen.

The Department of Health and Family Services will be up tomorrow beginning at 10 a.m.

You can follow along with the committee by going to the Joint Finance Committee Web page, scrolling down to the "In Session" heading, and clicking on the link below.

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JFC Webcasts Available

Click below to see WisconsinEye webcasts from DOA Secretary Michael Morgan's time in front of the Joint Finance Committee.

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Vos Criticizes Patients Compensation Fund Transfer

Rep. Robin Vos opened up question of OCI Commissioner Dilweg by asking if the budget proposal to transfer $175 million dollars from the Injured Patients Compensation Fund is an arbitrary number.

"Why don't we do $300 million?" asked Vos.

"Good! Done," quipped committee co-chair Sen. Decker.

Vos questioned whether the $175 million figure was merely chosen because it was the amount needed to balance the budget. He said an actuarial study from the Wisconsin Medical Society said the amount that could safely be transferred was $60 million, as did an internal OCI study. A DOA study put the figure at between $150-$200 million, Dilweg said.

Vos asked why the budgeted amount was placed within the parameters of the study done by the DOA which "needed to fill a budget hole."

Dilweg said the fund is a product of the governor and Legislature, and the governor and Legislature can decide what to do with the fund. "We'll manage through whatever number is approved," Dilweg said.

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Frank Testimony Concludes, Dilweg Steps Up

State Office of Insurance Commissioner Sean Dilweg is now on the hot seat. He thanked the committee for moving his testimony slot from Friday to Thursday.

"I appreciate you for rescheduling our time for the basketball game tomorrow," he said, referring to the UW's first round NCAA tournament game versus Texas A&M-Corpus Christi.

Colon: Not Enough Hustle Put Into Solving Sex Offender Problem

Milwaukee Democratic Rep. Pedro Colon criticized the "dumping" of sex offenders into certain areas, saying his Assembly district has a disproportionate number.

GPS tracking, Colon said, "may provide a lot of comfort, but in the long run may not provide any significant treatment" for offenders. "We may need to do something radically different," said a frustrated Colon.

"I don't know if we're hustling enough," said a frustrated Colon.

Corrections Secretary Frank defended the effort of his staff, saying the state's sex offender registry grows by 100 people per month. He said the department makes every effort not to "dump" sex offenders in any given area, but offenders often return to the neighborhoods they resided in before incarceration.

Colon was skeptical. "The fact is you have agreements with slumlords where you have taken these people," he said, citing a rooming house across the street from his home.

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Suder Says GPS Tracking Bill Aimed At Most Dangerous Sex Predators

Rep. Scott Suder took a moment to emphasize that the bill he helped champion in the Legislature last year was aimed to go after "the most dangerous and likely to re-offend" sex offenders.

"Some have a 70 percent change of striking again," said Suder. "That is why it is so important we maintain lifetime tracking."

Gov. Doyle signed the bill last year, but has changed some of the tracking requirements in his budget proposal.

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State May Re-think 17-year-old Offenders

Sen. Lena Taylor asked whether it would benefit the system and the offenders if 17-year-olds, who are currently treated as adult offenders, would instead be put into the juvenile justice system.

Corrections Secretary Frank said he spoke with the Legislative Audit Committee last week about studying such a change, and said the department is "very interested" in pursuing the possibility.

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Pocan Compliments GPS Plan

Rep. Mark Pocan, who was a vocal critic of the sex offender GPS tracking bill, said the changes made to the legislation in the governor's budget provides a workable model for the policy.

"We pass bills ... you actually have to implement them," Pocan said to Frank.

Pocan said it was "wise" to tie the limits of monitoring with the terms of parole or probation supervision. The Madison Democrat added he believes GPS won't stop offenders from recidivism, it would only provide information on the offenders whereabouts after the crime has been committed.

Pocan also asked whether the state has any intention to renew a contract with the Corrections Corporation of America, the outfit that the state used to house inmates out of state due to in-state overcrowding. The contract expired last year, and all out-of-state inmates have been moved back inside Wisconsin's borders.

Frank said there are no plans to pursue another contract with CCA, and the state's policy is now to work with county sheriff's to acquire additional beds. "At this time, we don't have any intent to move people out of state," Frank said.

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Frank Answers Suder Criticism Of GPS Proposal

Corrections Secretary Frank said that GPS is only one part of the continuum for tracking sex offenders. He said the department's plan ties the tracking with home visits and other measures by probation and parole agents. Problems arise after an offender has completed their probation term and the home visits cease, Frank said.

He said the department is committed to the tracking program, but welcomes the discretion allowed to the department to determine the level of tracking. "I'm confident putting that discretion in the hands of our agents," he said. "We make those judgments every day as to how to supervise an offender."

Frank said Wisconsin is on the cutting edge of GPS tracking, and while they can learn from other states' policies, "in some places they're still searching for the right way to do it."

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Suder's Says Budget Cuts Local Law Enforcement Out Of Parole Decisions

Rep. Scott Suder doesn't like the proposal to rename the Parole Commission the Earned Release Review Board and centralize the petition process for parole to one administrative body. Frank said the change will result in parole positions being acted on more promptly and consistently.

Suder said the change cuts district attorneys and judges out of the process. "This is a major policy shift that doesn't belong in the budget," he said.

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Suder Rips Budget Changes To Sex Offender GPS Tracking

Rep. Scott Suder, one of the lead sponsors of a bill that was signed by Gov. Doyle last year to implement lifetime GPS tracking of sex offenders, ripped the changes to the bill written into the new budget.

Suder said the budget removes some lifetime tracking requirements, and moves from an active to a passive tracking strategy. "I vehemently disagree with that approach," he said.

Twelve other states have adopted GPS tracking similar to those passed last year in Wisconsin, and he said there have been no constitutional challenges to those requirements. He said tracking "is not about punishing sex offenders, it is about public safety."

"What the governor has done places children at risk," he said.

Suder said fiscal concerns can be allayed. "If money is truly a concern, we will find a way to fund this because I believe it is extremely important," he said.

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Frank: Good System Needs Options For Incarceration And Treatment

Sen. Dave Hansen commented on the high incarceration rate in Wisconsin. He said the state prison population at 22,600, three times that of Minnesota's population. Hansen asked about the balance between incarceration and treatment.

Frank said that 60 percent of inmates are in for assaultive offenses, and 40 percent for property or drug-related crimes. He said it is a false choice to assume, though, that the state has to make a choice between incarcerating or treating non-violent offenders.

"To have a good system, you need to have both," he said.

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Frank Prepared Remarks

Reading from a prepared statement, Corrections Secretary Frank says Doyle's budget "reflects the ... strong commitment to public safety and holding offenders accountable. However, it also reflects the reality that our offender population is growing, with resulting increases to our costs.

"In total, the two-year Corrections budget includes an additional $288 million, including the restoration of $19 million a year for prison health care that was held in reserve by the Joint Committee on Finance in the 2005-07 budget. Also included are 264.5 additional positions, which include the restoration of 83 power plant and security positions cut from the last budget, and 122 positions to launch the statewide Global Positioning System program to track sex offenders."

Click here to read the full text of the prepared remarks.

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Secretary Frank Testimony Begins

Co-chair Sen. Decker says Frank is on a tight schedule.

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Start Time Close

JFC Co-chair Sen. Russ Decker has just put out the call for members to take their seats. Corrections Secretary is here and waiting to give his testimony.

Abrahamson Prepared Remarks

Click here to read Supreme Court Chief Justice Shirley Abrahamson's prepared remarks to the Joint Finance Committee. Abrahamson didn't read the remarks verbatim, but used the prepared text as a guide for her testimony.

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Wednesday, March 14, 2007

Meeting Adjourned

Hearings will resume at 9 a.m. tomorrow, with Corrections up first.

Language Needs Narrowing, Abrahamson Says

Rep. Scott Suder, who has been one of the most outspoken critics of the "CCAP tax" asked Chief Justice Abrahamson if she would object to taking the current confusing language regarding fees for the online court access system.

"You as Chief Justice have no intention (to charge for public access)," Suder said. "But there may be others who don't share your vast knowledge, experience and intention" that may choose to implement a fee.

Abrahamson said she wouldn't support removing the language, but would prefer to narrow it so the fees could only be applied to a convenience fee for attorneys e-filing to CCAP.

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Abrahamson: Budget Does Not Include Court Record Access Fee

Chief Justice Abrahamson said there has been some confusion about the budget proposal concerning the state's computerized court access site, CCAP.

She said the budget does not include a request to charge a fee to the WCCA, the portion of the CCAP site that allows public access to court records. The budget does include statutory language for convenience fees for e-filing of records by law firms to CCAP, she said.

"There is no fee for public access to WCCA and we have no intention to implement such a fee," said Abrahamson. "From our perspective, WCCA makes the court system transparent to the public, which is good."

She said WCCA receives 2-3 million Web hits per day.

She admitted that the language in the budget bill has raised some concerns about the continued free access to WCCA, and she will work with the executive branch and JFC to clarify the language.

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Last But Not Least

Trumble is excused. Chief Justice Abrahamson is on deck.

Trumble Gets Off Easy

Tourism Secretary Trumble offers an enthusiastic outlook of the state's tourism industry, and said the goal of the department is to elevate the brand image of Wisconsin.

"I really care about how the world sees Wisconsin," she said.

Committee co-chair Rep. Rhoades said Trumble is going to get off easy today on questions from the JFC panel members. "Next time you won't be so lucky," she warned.

Sen. Alberta Darling said she'd like to bottle Trumble's energy, "drink it, market it and give it to Commerce to sell nationally."

Abrahamson Awaiting Her Turn

Chief Justice Shirley Abrahamson has arrived in the hearing room. She'll follow Trumble.

New Tourism Secretary Before Committee

Tourism Secretary Kelli Trumble, who was appointed to the post last month by Gov. Doyle and was just confirmed yesterday by the Senate, is now giving her opening statement to the JFC.

Burke Testimony Continues

Committee members have been pretty complimentary of the work Commerce is doing.

Sen. Dave Hansen said of Commerce Secretary Burke, "It's great to have you as a cheerleader for Wisconsin."

He also asked if it's true the state has been pulling businesses from Minnesota.

Burke answered that the two largest growing areas of the state are around Hudson, near the Minnesota border, and Kenosha, on the Illinois border, and there is "a great deal of opportunity to attract businesses and also people who want to live here and commute."

"We are more tied to (the Minnesota and Illinois) economies every day," Burke said.

Rep. Steve Kestell said he appreciates the enthusiasm about renewable energy, but also said it should be approached with caution.

"Whenever we have dramatic changes like this, there are consequences," said Kestell, warning the side effects aren't all positive.

Burke Says $600K Can Generate $100 Million for the State

Commerce Secretary Burke said $600,000 spent on trying to attract five companies to Wisconsin each year will generate a $100 million impact to the Wisconsin economy.

She said the five new companies goal, which she called a conservative number that could be lured here, would provide $6.5 million in new state and local taxes, $45 million in payroll, $25 million in construction, and $25 million in new purchases in the state.

Burke also touted the state's angel investment program, but said more needs to be done to provide capital for companies to grow after that initial investment. She also chatted up the $2 million included in the budget for the Wisconsin Venture Center, a kind of resource center for businesses modeled after a similar operation in Ohio, and the GET LEAN! initiative to beef up the manufacturing sector.

Burke also said the state needs to continue to invest in the renewable energy industry, which she said has "vast potential."

Hassett Dismissed, Burke Is Next

DNR Secretary Scott Hassett just wrapped up his testimony, and Commerce Secretary Mary Burke is now on the hot seat.

Before Hassett left, Dem Sen. Bob Jauch answered GOP criticism of garbage tipping fee increases, saying the constant stream of garbage trucks that come into his district from Minnesota have his constituents outraged.

Jauch said 653,000 tons of Minnesota trash gets dumped in his district yearly. "Wisconsin really incentivizes Minnesotato dump their garbage in our state," Jauch said of the low tipping fees. "My constituents are incensed the state of Wisconsin wont' raise its tipping fee."

Meeting Momentarily Devolves Into Debate Over MMSD

Rep. Robin Vos brought it up. The Racine Republican brought up the issue of Milwaukee sewer overflows closing beaches in his district. He wondered when the DNR is going to tighten up restrictions on MMSD.

Rep. Pedro Colon, who is chairman of MMSD, defended sewerage district, saying they pass their permits consistently. "We should be reminded, Milwaukee is a real city," he said. "I don't look to Kenosha or Racine for comparison, my comparison is Chicago."

Co-chair Rep. Kitty Rhoades said there is a double standard in run-off and overflow standards between the western and eastern part of the state.

Aren't They Still In Arizona?

Rep. Robin Vos had questions about a newspaper story today that said toilets from Miller Park, the home of the Milwaukee Brewers, are being flushed into the Menomonee River and Lake Michigan.

Vos asked if it was hypocritical of the DNR to go after every homeowner or farm that has a run-off issues, but not after the Brewers. He asked if there would be a big fine.

Rep. Pedro Colon chimed in, "They're arresting the Brewers - all of them."

Hassett said all he knew about the issue was from media reports, but he understood that it was an issue with a contractor who messed up installation of a sewer line.

Suder Blasts DNR Fee Increases

Rep. Scott Suder says when a family doesn't receive an increase in their household revenue, they cut back on acquisitions. But with the state looking to end a budget deficit, the DNR is buying new materials, like computers and radios for wardens, he said.

They are paying for it by raising user fees, said Suder, singling out the 33 percent increase in motorized boat licensed. "33 percent Mr. Secretary?" asked an alarmed Suder. "You can not tax your way out of a budget shortfall, and you don't do it on the backs of boaters."

DNR Secretary Hassett responded that boat licenses haven't been raised in 12 years, and if the fee schedule were not adjusted now there would have to be cutbacks in safety patrols and law enforcement.

Suder also singled out an increase in the fee for elk hunting licenses, saying there are no elk in Wisconsin.

"And we really don't intend that will generate a lot of revenue," Hassett said to laughs in the committee room.

"So you're taxing an opportunity that doesn't exist?" asked Suder.

Suder also asked whether the increase in trash tipping fees will discourage other states from bringing their garbage to Wisconsin. Hassett said he doesn't have an answer, but it could be a disincentive.

Stewardship: When Is It Enough Already?

Co-chair Rep. Rhoades asked whether the state has a goal for how much land it wants to own.

DNR Secretary Hassett said there isn't a goal for land ownership. The state is only the third largest landholder in the state, following the federal government and county governments.

The state owns 4 percent of all the land in Wisconsin. In all, 17 percent of land in Wisconsin is publicly owned, Hassett said.

Vilas County Doesn't Need More Stewardship, Meyer Says

Rep. Meyer also brought up the plan to set aside large chunks of acreage in the state for the land stewardship program. He said there's been enough stewardship in his home county of Vilas, where 75 percent of land is protected.

"There is another side to the stewardship program," Meyer said, saying that there has been a resolution passed by the county board asking no more land be set aside. City leaders tell him, "Don't let the state buy any more land because it takes it off the tax rolls," Meyer said.

"Vilas County is unique," admitted Hassett. "That's why a lot of people go there because of all the public land."

Sharpshooters And Bambi

Rep. Dan Meyer asked Hassett about a couple DNR-related stories in the news lately, one about a Dane County Town of Vermont resident who disrupted a DNR sharpshooter using bait to kill deer in the CWD Zone, the other about a couple that raised a sick deer named Bambi that is being sued by the DNR for having an improper fence.

Meyer made the point that the agency is too litigious. "If this were an isolated case, I wouldn't think anything of it," he said.

Hassett said DNR sharpshooters use bait to eradicate deer in the CWD Zones, and the sharpshooters are much more efficient than citizen hunters. He said in the Bambi case, the state has regulations that restrict the spread of CWD in pet or farm deer, and the individuals in this case are not meeting fencing requirements.

Meyer asked what the DNR's legal budget is.

Hassett explained that the DNR is represented by the Department of Justice in most cases, and pays about $400,000 a year for the representation.

Laundry Day Forces Pocan To Go Formal

Rep. Mark Pocan has a reputation for not going out of his way to dress up for committee hearings.

On Monday, every other male member of the committee wore a jacket. Pocan wore a sweater.

But today he is wearing a sport coat.

It caught the attention of Rep. Kitty Rhoades, the co-chair of the committee, who chided the Pocan during a break a short time ago.

"What, did you have a funeral?" she asked.

Pocan explained that he had a press conference with Sha Na Na singer John "Bowzer" Bauman to announce the introduction of his "Truth in Music Advertising" bill.

"So you get dressed up for Bowser, but not for us?" Rhoades asked incredulously.

"Actually, I need to do laundry today," admitted Pocan.

JFC Resumes, Hassett Begins Testimony

DNR Secretary Scott Hassett has begun his testimony before the JFC. Click here to see his prepared remarks. Hassett said he has pared back his prepared comments in recognition that the committee is running behind.

Ervin Testimony Concludes

JFC on 10 minute break.

Olsen: I have Zero Confidence You Can Assess Oil Franchise Fee

Sen. Luther Olsen, R-Ripon, ripped Doyle's proposal to tax oil companies on profits and make it illegal for them to pass it on to the consumer. Olsen questioned DOR secretary Ervin about whether his department can actually accurately assess the tax.

"I'm really concerned we're going to stick it to our motoring public," Olsen said. "I have zero confidence you can stop that from happening."

Olsen called taking on the oil companies "an insurmountable challenge."

Olsen asked how Ervin can track whether a drop or raise in oil prices is a true difference in the production costs.

Ervin said the DOR has already began to track markets, but it would be a challenge.

I Like What You Say, Not What You Do

Rep. Robin Vos said he really enjoyed the chat he had with DOR Secretary Ervin recently in his Assembly office.

"I went away thinking, 'He sounds pro-business and like a Republican,'" Vos recalled as he began his questioning of Ervin. "Then I remembered, you're a tax collector for revenue."

Vos asked whether Ervin agrees with reports that the governor's budget includes $1.75 billion in tax increases.

Ervin said there were some revenue increases. But he added, "Our overall approach to find ways to reduce the deficit and also keep things running over the long term is a good balance," Ervin said.

Vos asked if there were any segregated accounts safe from raids in this budget. Ervin responded, "If I were the secretary of DOA, I could answer that."

The Racine Republican then turned to the oil franchise fee. Citing testimony from state Budget Director Dave Schmiedicke on Tuesday, Vos said local "mom and pop" gas stations will be assessed the tax if the state can't recover it from "big oil."

Ervin said the fee is designed to be placed on the gross receipts from the first point of sale, which at times may mean it will be assessed to a refinery, terminal or trucking company.

Won't the fee be turned back on consumers, Vos asked.

"That's why we have penalties and audits," Ervin replied.

What Would Be The Mascot For Tax School?

JFC co-chair Rep. Rhoades asked DOR Secretary Ervin where they come up with the idea for taxing new products, such as taxes included in this year's budget for electronic greeting cards and downloading cell phone ringtones.

"Is there a tax school that says, 'Hey, look at these new things to tax?'" she wondered.

Ervin said when a new product is developed, if it's not exempt for some reason, it will be taxes. "We are a sovereign state. When categories change ... it's up to us how we treat that category or product," he said.

Ervin said the Main St. Equity Act provides balance between new e-based products and similar products that are already subject to tax.

Agency Budget Briefing Schedule Revised

The JFC has moved three of the agencies that were scheduled for Friday hearings to tomorrow, giving all of Friday to the Department of Health and Family Services.

Tomorrow, the Department of Corrections, Office of the Commissioner of Railroads and Office of the Insurance Commissioner will have their briefings. The hearing tomorrow begins at 9 a.m. Friday's DHFS session begins at 10 a.m.

See the revised schedule here.

Higher Taxes Don't Correlate To Better Services, Says Meyer

Rep. Dan Meyer said his property taxes went up 13 percent last year. He said that the garbage collection, road plowing and other services provided by his local government hasn't gotten 13 percent better.

"We're a high tax state, I don't care how you slice it," Meyer said.

Meyer disagrees with those who argue that the tax rate is justified by the quality of services.

"To me it's something we use to justify the high taxes we pay in this state," Meyer said.

Ervin said he moved to Wisconsin three years ago from Washington, D.C., and said the Dairy State is "a heckuva savings" compared to the nation's capitol.

He said even though he pays double the property taxes here that he paid in Washington, he saves in a number of areas, including not having to pay to send his children to private schools because the state's public schools are safer and better than those in D.C.

Suder Questions "Tax Tax"

Rep. Scott Suder said the fee for filing tax returns on paper included in the governor's budget will hurt his rural district, especially farmers with limited computer access.

DOR Secretary Ervin said the fee only applies to business who file on paper, not personal returns, and that most businesses already use computers to file statements on sales taxes and other revenue information, and they should be able to use computers for filing their state returns. He said paper is a more costly medium for the state to process.

Ervin: State Not Looking To Gouge Oil Company Profits

DOR Secretary Ervin said the oil franchise fee proposed by the governor is an attempt to get the industry to "pay their fair share."

Ervin said the oil companies make a huge profit in the state, but give little back. "They make no investment in roads, rail or air," he said.

Asked by Sen. Dave Hansen how the state plans to assess the 2.5 assessment on gross revenues, Ervin said the DOR is developing "very sophisticated" audit modeling that will help the state assess and apply the tax and ensure it's not being passed on to the consumer.

The assessment, Ervin argued, is good for the oil industry.

"At the end of the day, if we had better roads, if we had better rail, the (oil industry) wold make more money," he said.

Decker, Colon In The House

Committee Co-chair Sen. Russ Decker and Rep. Pedro Colon have taken their seats.

Rhoades Grills Ervin Over Property Tax Cap Increase

JFC co-chair Rep. Kitty Rhoades wants to know why Gov. Doyle is proposing increasing the local government cap on property taxes from 2.5 percent to 4 percent.

DOR Secretary Ervin responded that the administration heard pleas from county and municipal governments to provide more flexibility in the limit so they could continue their level of services to residents. He said the budget includes incentives for the locals to keep their rates down.

Ervin said there is the potential for property tax rates to go down through lottery tax credits and other revenue streams, causing some GOP members of the committee to look at him incredulously.

Members Still Arriving

DOR Secretary Ervin just wrapped up his testimony, but some JFC members are slow in arriving. Among those who still aren't here are Co-chair Sen. Russ Decker, Rep. Jeff Stone, and Rep. Pedro Colon and Sen. Luther Olsen.

WI's Economy "Dynamic, Resilient, Diverse," Says DOR Chief Ervin

In his opening statement to the JFC, Department of Revenue Secretary Roger Ervin called Gov. Jim Doyle's 2007-09 budget "a budget of prosperity."

He said tax collections are strong and trending up, and the state is well on its way to meeting revenue projections.

Ervin said the Dairy State remains a national leader in agriculture, and also has a thriving tourism trade and expanding biotechnology sector.

And, Ervin said, the state has a "truly integrated economy where every region of our state is as important as any other region."

Usual Suspects Begin to Assemble

The Joint Finance members are filing into the hearing room. Today's hearing should begin momentarily. First up will be the Department of Revenue.

Vos Says "Mom And Pop" Gas Stations Should Beware

The proposed 2.5 percent assessment on "big oil" companies bringing motor vehicle fuel in the state could be turned against gas station operators who bring their fuel supply across the state line, according to Rep. Robin Vos, R-Racine.

"My concern is you are having the potential to put large numbers of gas stations, especially on the border where they might get it from a terminal outside the state, at financial risk because you are now saying it's going to be your responsibility to get this back from your supplier," said

Vos, a member of the Joint Finance Committee, spoke with WisPolitics during a break from agency briefings Monday.

Vos said "mom and pop" gas station owners will be forced to raise prices, though the provision includes criminal penalties for passing the cost on to consumers.

"It's going to be passed on to the consumers who are going to be paying a nickel a gallon gas tax increase, or at the worst it's going to be passed on to the local gas station operators who are going to end up paying the cost hoping they can recover it either through higher prices to their customers or trying to get it back from their supplier, which we all know is really difficult."

Vos doesn't expect Republican legislators to allow the final budget to include the franchise fee provision.

"We didn't like it when Tommy Thompson was in, I have a feeling we're not going to like it when Jim Doyle is there," he said.

Listen to an interview with Vos: http://www.wispolitics.com/1006/0703112vos.mp3

Monday, March 12, 2007

Kennedy Testimony Brief

Perhaps fatigued from a long day of testimony that began just after 10 a.m. and didn't break for lunch or dinner, the JFC was mercifully brief with state Elections Board executive director Kevin Kennedy.

Kennedy was complimentary of the budget submitted for his agency by Gov. Doyle.

The committee adjourned at about 7:40 p.m.

The agency briefings continue Wednesday at 11 a.m. Among the agencies that will be called in are the Department of Revenue and the DNR.

Elections Board's Kennedy On The Hot Seat

State Elections Board executive director Kevin Kennedy is the last agency head of the day to appear before the JFC today.

JFC member questions for Wisconsin Employment Relations Commission chairwoman Judity Neumann mainly focused around the governor's call to eliminate the QEO, but Neumann escaped unscathed, telling the panel that the commission doesn't make policy, it just carries it out.

Gassman Finishes Testimony

Next up, the Wisconsin Employment Relations Commission chairwoman Judith Neumann.

Colon: Helping Milwaukee Is Good

After hearing GOP Rep. Scott Suder, from the central Wisconsin hamlet Abbotsford, say that he is opposed to special funding for Milwaukee, Dem Rep. Pedro Colon said the budget attention for his home district is merited.

"I don't mind that you're helping Milwaukee," he said.

In fact, Colon said Milwaukee is "the only city in the state."

"Someday other municipalities will graduate from being college towns to being real cities," he said.

Suder Has Problems With DWD Budget

Rep. Scott Suder, R-Abbotsford, said he doesn't like some provisions of the Department of Workforce Development budget, particularly the "Real Work, Real Pay" program which he said is "a patch back to welfare."

He said the program is an expansion of government and encourages employers to keep workers on the payroll for reasons other than good job performance.

DWD Secretary Gassman said that isn't the case.

"This is in no way going back to AFDC," she said. "The governor believes the best social program for anyone is a job."

Suder also said he has a problem with any part of the DWD budget that is geared specifically toward Milwaukee. "This is not only the state of Milwaukee," he said.

Prepared Remarks from Busalacchi

Click here to see text of the prepared remarks delivered by DOT Secretary Frank Busalacchi earlier today.

Busalacchi Completes Testimony

DOT Secretary Frank Busalacchi just completed his testimony. Committee members did not ask questions about the Troha controversy. Next up is DWD Secretary Roberta Gassman.

Where Guv Stands On REAL ID

Rep. Pedro Colon says the federally mandated REAL ID Act is a "waste of money" and is really a way to hurt immigrant and non-English speaking populations.

"It's really about people who look like me and who talk like me," said Colon.

The federally mandated change in ID requirements, aimed at bolstering homeland security, will cost $11 billion nationwide, DOT Secretary Busalacchi said, and doesn't benefit transportation at all. He said the state is spending $22 million on the program, and will result in a $10 increase in driver's license renewal fees.

Colon, a Milwaukee Democrat, said the state should ignore the mandate as some other states have chosen to do, and asked where Doyle stands on the issue.

"The governor has gone on record as saying that we are very concerned, but we don't want the citizens of Wisconsin to not be able to get on airplanes and not be able to get in federal buildings," said Busalacchi.

Busalacchi said the $11 billion cost to states to implement the program is "unconscionable."

Jauch: Transpo Fund Has Integrity

Sen. Bob Jauch, D-Poplar, said he can't find any evidence in Gov. Jim Doyle's budget that transportation dollars are being spent on anything but transportation related needs.

Jauch pointed out that student transportation for public schools has been moved into the Transpo Fund. Also, $4.4 million has been put into the Transpo Fund for EMS services, which respond to calls regarding auto accidents more than any other emergency.

"I fail to see any money being expended out of transportation that doesn't have a relation to transportation," Jauch said, responding to GOP members' complaints about the integrity of the fund.

Jauch admitted that transfers were used to balance the last biennial state budget, saying "it was a way to meet the economic necessities of the budget."

Busalacchi Hears Pleas From Out-Staters

JFC Co-chair Rep. Kitty Rhoades, R-Hudson, and Rep. Scott Suder, R-Abbotsford, both issued pleas to pay attention to road projects outside of Milwaukee and Madison.

"There is life above Portage, I have to constantly remind some of my colleagues about that," said Suder.

Facing increases in car title fees and driver's licenses, Suder said his constituents expect to see some projects in their area, not just southeast Wisconsin.

Busalacchi said there is money going to projects all over the state, but none of them have the price tag of a project the scope of the Marquette Interchange.

"We are spending a lot of money all over the state, not just the south," he said.

Stone Stumped By Transpo Transfers

Rep. Jeff Stone, R-Greendale, said transfers from the Transportation Fund in the last budget from Gov. Doyle and in the currently proposed budget are ruining the credibility of the fund.

"I just think we need a transportation budget where people know it's going to be spent on transportation," he said.

Busalacchi said Doyle's budget puts a substantial amount of investment into transportation programs, and that the funds cover the needs.

Morgan Prepared Remarks To The JFC

Click here to see text of prepared remarks from DOA Secretary Mike Morgan, delivered earlier today.

Busalacchi: Federal Highway Funds In Jeopardy

In his opening remarks to the JFC, DOT Secretary Frank Busalacchi says federal grants for state highways could drop significantly in the fiscal years 2009 or 2010, and said states across the country are struggling to cover transportation needs.

He said Wisconsin could lose about $100 million in federal money. The state will be receiving $645 million in federal highway aids in each the next two fiscal years.

Some states, like Indiana, are turning to private companies to fund highway projects. The private interests then set up tolls on the highways to recoup their investment, Busalacchi said.

"I'm very concerned with this trend and recently delivered that message to a Congressional committee," Busalacchi said.

Busalacchi said the franchise fee for oil companies will generate $270 million over the biennium in sorely needed transportation funds.

Busalacchi Testimony Begins

Embattled Transportation Secretary Frank Busalacchi has begun his testimony before the JFC. Co-chair Sen. Russ Decker, D-Weston, has restarted the hearing before most members had returned from their break, and they continue to file in.

Morgan Off The Hot Seat

DOA Secretary Mike Morgan has concluded his testimony before the JFC after nearly 3.5 hours before the committee.

Colon Has Problem With Fee Increases Too

Rep. Pedro Colon, D-Milwaukee, had a complaint about a fee increase in the budget, though he admitted that it isn't the state's fault.

Colon asked DOA Secretary Morgan why it is that the state hasn't followed the example of others and rejected the federal mandates in the REAL ID Act. There is a $10 increase for driver's license renewal in the budget to pay for costs associated with the change in ID requirements. The budget proposed by Gov. Doyle includes $21 million to fund the changes.

Morgan said the state is following the federal mandate because without the ID changes Wisconsin residents will find in 2010 that they won't be able to fly or get a passport. "Because we have to do it doesn't necessarily mean we like it," he said.

Tax Increases No Way To Address Budget Shorfall, Suder Says

Rep. Scott Suder, R-Abbotsford, said that he's got a problem with the way Gov. Doyle has addressed the budget deficit.

"My philosophy is you don't tax your way out of a budget shortfall," Suder said. Suder ticked off a long list of fee increases proposed in the budget, and said there is a definite impact on the middle class.

Referring to a comment made earlier by Rep. Mark Pocan, D-Madison, Suder said he's not referring to an oil company executive who smokes three packs a day and is a sex offender. "Although I do want him tracked," said Suder, who helped push through a bill requiring GPS tracking of sex offenders.

Suder also decried the policy shifts included in the budget. "Major policy items that can't withstand the legislative process shouldn't be tucked in the budget," he said.

The Guy With The Tie

Rep. Mark Pocan made a personal guarantee that the franchise fee on oil companies won't result in gas stations packing up and leaving Wisconsin.

The sweater-clad Pocan, the only male member of the committee today who is not wearing a jacket or a tie, said he will wear a tie at every committee meeting, every Assembly floor session, and even "in the shower in the morning" if service stations close due to the fee.

"If gas stations leave and we're back to horse and buggy days, I will be the guy with the tie," Pocan said.

The Madison Democrat also offered a definition for committee members seeking an explanation of what constitutes excessive corporate profits. "$4.5 million an hour by Exxon last year falls into that category," he said.

Overall, Pocan said, the budget offers tax cuts for Wisconsin families, refuting GOP press releases last week that put the increase in taxes at $310 for every man, woman and child in the state.

"If you're an oil company executive who smokes three packs a day, and you're a sex offender, then you're going to have some fees in this budget," Pocan said.

Big Oil Bigger Than '74 Huskers, Olsen Says

Sen. Luther Olsen, R-Ripon, implied that assessing a franchise fee on oil companies will be a bigger challenge than the UW Badger football team faced in defeating the highly regarded 1974 University of Nebraska Cornhuskers.

DOA Secretary Morgan earlier used the example of UW's upset win over Nebraska as an analogy for taking on "big oil."

"There ain't any comparison - I know some folks that deal with big oil, and big oil is huge," said Olsen.

"I know some folks that had to deal with Nebraska," countered Morgan, drawing laughs from the panel.

Olsen said a source that is familiar with the operations of "big oil" told him that the industry will stealthily pass along the franchise fee by limiting supply in the state. "They'll say, 'there's going to be a little shortage in Wisconsin,'" Olsen said. "And all of a sudden the market is going to go way up."

Olsen characterized the franchise fee as a "politically expedient way" to raise the gas tax without having to label it as such.

Morgan said he does expect the oil companies to manipulate the markets, but the state will monitor what they do with supplies in other states. He said the industry needs someone to stand up to them, "someone to step up to the plate and say 'you will not manipulate prices,'" Morgan said.

Morgan said the Doyle administration will fight the oil companies in the state courts and federal courts if necessary.

Olsen: I Trust WHA Spin On Hospital Tax More Than Doyle's

Sen. Luther Olsen, R-Ripon, said it's a "great idea" to try to get more money from the federal government to fund medical assistance, but said the governor's plan to remove $900 million in GPR from the MA budget looks "like a shell game."

It appears the state is reneging on its responsibility, he said. Olsen said he agrees with the Wisconsin Hospital Association's review that shows the gross revenue assessment intended to lure more federal money will end up costing hospitals more than they bring back.

"I trust their spin more than the (DOA's)," he said to DOA Secretary Morgan.

Morgan countered that bringing back more federal dollars will benefit the hospitals of the state, as well as MA patients, and it will lower insurance premiums for all.

Olsen also asked whether the proposal will require Centers for Medicaid and Medicare Services approval, which he has heard could take 18 months. Morgan said the approval process can happen concurrently with the budget process, and should be finished by the time the budget is enacted and the assessment goes into effect.

Vos Grills Morgan on Taxes; Morgan Defends Doyle Record

Rep. Robin Vos said it looks like the state has arbitrarily decided to go after the oil industry because the Doyle administration has decided the oil companies are making too much profit. "Who's next," he asked DOA Secretary Morgan.

"Big oil is next," Morgan replied. "I'm not going to defend big oil. I think they do a pretty darn good job of defending themselves."

Morgan defended Gov. Doyle's record of providing tax relief for businesses in the state. "Our history has been one of putting in place policies, tax changes, that have benefited business," he said.

Decker: New Taxes Are Republican Ideas

Amid mounting criticism from GOP committee members of the governor's tax proposals, JFC Co-chair Sen. Russ Decker, D-Weston, reminded everyone of their origins.

He said the oil franchise fee was initially proposed by former Gov. Tommy Thompson, a Republican. And that Rep. "Doc" Hines has proposed a $1 increase in the per pack tax rate for cigarettes.

Decker's remark prompted Rep. Robin Vos, R-Racine, to counter, "even when they're thought of by a Republican, they're not all good."

Could Oil Companies Cut Off Wisconsin

Rep. Jeff Stone has a concern that the oil company assessment may have unintended consequences, mainly that the oil companies could decide to stop distributing their product in Wisconsin.

DOA Secretary Morgan said that's not going to happen. "The market is too robust to prevent oil from flowing i the state of Wisconsin."

Meyer: Consumers Will Pay

Rep. Dan Meyer said Gov. Doyle's proposals to assess hospitals, raise cigarette taxes and assess "big oil" companies to pay for road infrastructure will impact the middle class negatively.

Meyer suggested the plan to assess the oil companies will stifle business.

"If you're doing business in the state of Wisconsin, I'd be a little concerned about what excessive profits mean," he said. Consumers will see the cost of the assessment at the gas pump, he asserted.

DOA Secretary Morgan said, "I won't defend big oil. I think their profts speak for themselves," and again assured there wouldn't be a pass-through of the assessment to consumers.

Rhoades Skeptical Funds Are Raid-Proof

JFC Co-Chair Rep. Kitty Rhoades said it is a "huge leap of faith" to believe that the money set aside from the restructured cigarette settlement fund will be used for the purposes intended.

"The only money that's safe is in your show," she said.

Morgan said Gov. Doyle has made it clear he intends to only use the money for smoking-related health care costs and smoking cessation efforts.

Morgan Looks Back to UW Football Days to Make Case for Oil Co. Assessment

DOA Secretary Mike Morgan, a former UW-Madison running back, used an upset football win from his playing days as an analogy for how the state will succeed with its plan to assess oil companies to pay for state highway infrastructure.

Morgan looked to a 1974 game against the heavily favored University of Nebraska Cornhuskers, a perennial football power. No one gave the Badgers a chance, he said, but "We put together the team necessary and we won that football game."

Morgan said the state will have to put together a strong team to make the assessment work.

"This oil assessment allows us an opportunity to generate revenue from big oil who have been generating huge profits over the last several years," he said, adding that if the state is diligent, it won't impact the consumer. "We can prevent a pass-through, but it will require we be diligent," he said.

Co-chair Sen. Decker voiced his support for the tax, and said he also supports a "corporate tax" on hospital profits.

Morgan Concludes Brief Remarks

DOA Secretary Mike Morgan gave a 10-minute opening statement to the committee. In it, he stressed the benefits Gov. Doyle's proposed tax increases.

Morgan said the proposed cigarette tax increase will "make health care more affordable for every Wisconsin resident," and said it will deter people from picking up the habit. "We know from experience that a higher cigarette tax reduces smoking - particularly among teenagers."

Morgan also said that the governor's proposed assessment on oil companies can work. "Gov. Doyle has found a way to make the oil companies pay with criminal penalties" if they turn the cost back on consumers.

"It's time (oil companies) pay their fair share," he said.

Morgan said the Doyle budget will benefit "average, hard-working middle class families." In closing, he urged the committee to push for timely passage.

"The people of Wisconsin sent a clear message that they want us to work together, regardless of party, to do what's right for the state," he said.

Decker Asks to Keep Politics Out of Agency Briefings

Co-chair Decker opened the briefings today by asking that the members not get off on political tangents with agency secretaries.

"Try to refrain - sometimes we get sidetracked on some political issues - so I hope we refrain from that," Decker said.

Administration Secretary Mike Morgan has begun his prepared remarks by asking that the committee "pass a budget as fiscally responsible as Gov. Doyle's budget." Check back soon for text of Morgan's prepared remarks.

JFC Underway Shortly

JFC co-chair Sen. Russ Decker has just called for the members to take their seats. First up in this day of agency briefings will be the Department of Administration, followed by the Department of Transportation. The Department of Workforce Development, Wisconsin Employment Relations Commission and Elections Board will also be before the committee today.

Thursday, March 08, 2007

Nass Has Ideas for Further Repairs

Rep. Steve Nass, R-Whitewater, thinks the Budget Repair Bill, passed by the JFC last week and will be taken up by the Assembly next week, is still in need of some fixing.

In a letter to Assembly Speaker Mike Huebsch, R-West Salem, and JFC c0-chair Kitty Rhoades, R-Hudson, Nass lays out several suggestions for the bill.

Among his proposals, Nass would like to amend the bill to remove $11 million in transfers from the Recycling Fund, Agrichemical Management Fund and Office of Commissioner of Insurance, and reduce the general fund balance from $65 million to $54 million.

See Nass' proposals here.

Wednesday, March 07, 2007

Suder Ready to Fight "CCAP Tax"

Rep. Scott Suder, a member of the Joint Finance Committee, said today in a press release that he will try to remove the "CCAP Tax" from the budget bll.

Language in Gov. Jim Doyle's budget allows the state to charge a fee for access to the court records site, said Suder, R-Abbotsford.

"The information on the Wisconsin Circuit Court Access site should remain free and available for the public," stated Suder. "The Governor's budget allows for a CCAP Tax and it needs to be removed to prevent state bureaucrats from using it now or in the future to fund their pet projects."

See Suder's press release here.

Huebsch: GOP to Take Hard Line on Tax Increases, Fund Transfers

Assembly Speaker Mike Huebsch said yesterday that last week's JFC compromise on the budget repair bill, in which some but not all segregated fund transfers were removed, could be a sign of budget battles to come.

"We came in with the plan and the manner by which we could eliminate all segregated transfers," Huebsch, R-West Salem, said to reporters. "And in negotiations it simply wasn't going to happen. The Democrats were going to walk away from the entire plan and we were not going to have a solution."

A JFC amendment by GOP Reps. Scott Suder and Steve Kestell aimed at deleting all fund transfers in the repair bill was defeated on a party line 8-8 vote

"That's unfortunate, but it's also the world I live in," Huebsch said. "I'm going to have to work with the Democrats as much as we can and get the victories we're able to win, but know that we also must compromise."

When it comes to transfers in the budget, Huebsch said it can't be assumed anything is on or off the table.

Huebsch said before the Assembly GOP acquiesces to any fund transfers, "We will certainly have presented many alternatives to prevent that need. And it is my intent to battle (fund tranfers) and any tax increases all the way to the end."

Huebsch said that partisan arguments will arise over whether programs should be shaped to match revenue, or if revenue should be lifted to match increased program services. There is enough revenue in the budget to meet program needs without raising taxes, he said.

"Now you've got two conflicting points of view as we enter this budget," Huebsch said. "These are the programs, we need to have our revenue reach our programs - which is frankly where the governor has been - or where the Republican Assembly caucus and the Senate Republicans will be at is this is the revenue we have, make our programs fit under that and don't go back and get more."

Click here to listen to audio of Huebsch's chat with reporters.

JFC Agency Budget Briefings Schedule Revised

A revised calendar for Joint Finance Committee agency budget briefings came out today, with the Department of Transportation and Department of Corrections switching dates.

The DOT briefing will now be held on March 12. while Corrections moves to March 16.

See a schedule of briefings here.

Tuesday, March 06, 2007

Barrett, Andrekopoulos Praise Budget, But Voice Concerns About School Choice Funding

Milwaukee Mayor Tom Barrett joined other local officials and community leaders at a meeting of the Senate Committee on Labor, Elections and Urban Affairs in urging members to support Milwaukee-targeted initiatives proposed in Gov. Jim Doyle's budget.

Barrett praised the budget proposal overall, but asked the state to do more to fund the city's school choice program. Barrett said he welcomed Doyle's proposal for the state to pick up 100 percent of the cost of students enrolled in the program over the previous cap of 15,000, but said "the issue is bigger than that for the 15,000 already in the program."

Barrett called for the state to fund choice schools using the same equalization formula it uses for public schools, calling the current formula "grossly unfair."

But Sen. Glenn Grothman, R-West Bend, said when out-state Republicans have tried to address school choice funding for Milwaukee in the past, they've been attacked by Democrats running against them for doing so. "I would just hope ... you'd tell some of the Democrats to not really go after Republicans that try to help Milwaukee."

Barrett said to him the funding situation is not a partisan issue and pledged to speak to "whoever is criticizing fair funding for this program."

Barrett pointed to Milwaukee's impact on the state and it's disproportionate number of people in need of assistance as why the city needs more target spending.

Barrett said Milwaukee and other large cities are "asked to shoulder a larger percentage of society's challenges" and said there is an obligation for others in the state to recognize that.

"We have a lot more challenges here, and I think it's appropriate for people to recognize their community is not just their village or town or city, but the entire state," Barrett said.

Barrett also called upon the committee to support placing any additional DNA analysts approved for the state's crime labs in Milwaukee.

Milwaukee Public Schools Superintendent William Adrekopoulos echoed Barrett's concerns about school choice funding, but praised Doyle's education, health and public safety proposals and urged the committee to support them.

Andrekopoulos pointed to improvements the district has made in increasing the district's graduation rate and attendance numbers while at the same time closing excess schools, reducing transportation costs, lowering administrative expenses and working with the unions to control health care cost.

But Andrekopoulus said that while the district is making strides, it requires additional help to accelerate those gains and close an achievement gap between white and minority students.

- David Wise

Huebsch Says Hospital Tax "Bad Budgeting" and "Bad Math"

Assembly Speaker Mike Huebsch said today that the plan to assess hospitals a one percent gross revenue tax in an effort to capture more federal medical assistance dollars is "bad budgeting" and "bad math."

"Ultimately that funding source from the federal government will end," Huebsch, R-West Salem, said today during a question and answer session today with reporters in his Capitol office.

Gov. Jim Doyle has proposed the hospital assessment, which would generate more than $418 million, and result in a $284 million net gain for hospitals in Medicaid reimbursements.

Huebsch is skeptical that the return from the federal government is a stable funding source.

"When the federal government says we're not going to play that game anymore - and it's coming, it's not far off - we will not have that GPR anymore that we're supposed to be putting in there," Huebsch said.

"And then we will have no choice but to either eliminate money that's going into education or corrections or the university or wherever, or we'll have to raise taxes for money that frankly we have right now that we should be putting into this system. Medicaid is a high enough priority, spend the dollars on it, don't play this tax scam game," Huebsch said.

Huebsch said an analysis he's seen shows that $60 million in GPR invested by the state is equivalent to $600 million in federal dollars the state could recoup. "For 10 percent of what we're playing this shell game for, we can fulfill the same requirements," Huebsch said.

Listen to Huebsch talking about the hospital assessment proposal here.

An analysis from the Wisconsin Hospital Association contends that while the Doyle Administration projects the budget plan will result in a net gain in medical assistance reimbursements of $284 million over the biennium, their numbers show that hospitals stand to lose between $132 million and $186 million over the two-year period

See a WHA analysis of the assessment: http://www.wispolitics.com/1006/070306WHAanalysis.pdf

See a spreadsheet from the WHA on the assessment's effect on individual hospitals: http://www.wispolitics.com/1006/070306WHAspreadsheet.pdf

LFB Analysis Finds Doyle Budget Falls Short of Two-Thirds K-12 Funding Goal

See the 624-page LFB summary of Gov. Jim Doyle's 2007-09 budget here.

State Agency Briefings Scheduled

State agency heads will be under the JFC microscope beginning next week.

Budget briefings from state departments are scheduled for March 12, 14, 16 and 22. The majority of briefings will take place before public hearings begin on March 20 in Milwaukee, unlike the last budget when the public hearings were held prior to agency heads appearing before the committee.

See a schedule of agency briefings here.

Monday, March 05, 2007

JFC Road Trip Particulars

Joint Finance Committee co-chairs Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, have announced the details of the six-city public hearing tour on the budget.

See the press release here.

Friday, March 02, 2007

LFB Budget Adjustment Legislation Memo

You can see the Legislative Fiscal Bureau's memo on the budget adjustment bill passed by the Joint Finance Committee on Wednesday here.

Greg Bump

Contact: bump@wispolitics.com

Updates on Joint Finance Committee action on the 2007-09 Wisconsin state budget, from the first JFC meetings through the governor's final vetoes.

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