WisPolitics Budget Blog

Budget fans will double their pleasure this week, as the Joint Finance Committee will meet up and vote on select agencies Wednesday and Thursday. Both meetings begin at 10 a.m.

The DOA's Division of Gaming will be among the agencies scrutinized by the Joint Finance Committee Wednesday.

See the budget papers for Wednesday's session here.

Thursday's session will feature shared revenue to local governments.

See Thursday's papers here.

Rep. Kitty Rhoades, co-chair of the committee, took offense this morning to a characterization that the JFC and Legislature was in for a "long hot summer" of budget battling.

Rhoades reminded a reporter that the committee is on time, and actually started earlier than the last split committee.

True to her word, the committee wrapped up earlier than many expected today, plowing through 34 budget papers.

Next meetings are scheduled for Wednesday and Thursday.

Labels: Rhoades

A motion authored by Rep. Mark Pocan, D-Madison, providing $121,600 annually for a legal counsel position for the Government Accountability Board.

Labels: Government Accountability Board, Pocan

The committee unanimously passed a motion to adopt alternatives A1, A2, B1, and B3 from budget paper 360, providing for the transition to the Government Accountability Board. The motion also placed the $28,300 of annual per diem for board members in the JFC's GPR supplemental appropriation.

Under the motion adopted by the committee, the Government Accountability Board must submit a request to the JFC for the release of the per diem funding under 14-day passive review, including a report specifying the need for the funding.

Labels: Government Accountability Board

Gov. Doyle's proposal to transfer the Wisconsin Council on Developmental Disabilities from the Department of Health and Family Services to the Department of Administration was shot down by the committee.

On two party-line 8-8 votes, Republicans were able to thwart Democratic efforts to reinstate Doyle's proposal, outlined in budget paper 111.

The committee is standing informal for five minutes.

Labels: DHFS, DOA

So far, the JFC has taken the position of the governor's budget when starting their negotiations today. Now they've switched to starting from base, or current, funding.

Budget paper 110, regarding consolidation of attorneys and legal staff in the Department of Administration, was the first to be handled in this fashion.

Current law was upheld on an 8-8 partisan vote.

Labels: Attorney Consolidation, DOA

JFC unanimously passes the governor's proposal to provide $60,000 annually beginning in 2008-09 to support cost-sharing projects with local invasive plant management groups and $50,000 annually from the forestry account of the conservation fund for efforts to
detect and monitor the Emerald Ash Borer.

Co-chair Rep. Kitty Rhoades, R-Hudson, quipped, "In my district, invasive species are zebra mussels and Minnesotans."

Rep. Suder introduced a motion to amend budget paper 576 to open any land purchased with the Outdoor Recreational Activities Land Acquisition Program to hunting, fishing and trapping, within season.

Suder's motion also includes a provision that no more than 10 percent of program grant funds be used to purchase parcels less than 10 acres.

The motion is approved 15-1, with Rep. Colon the sole dissenter.

Labels: DNR, Suder

Since 1989, money has been included in the budget for a tourism impact study. Gov. Doyle did not include the funding in this year's budget. The funding comes from tribal gaming program revenue.

Democrats on the committee wanted to keep the funding out from the current base of funding.

"We're not saying eliminate report, eliminate funding so tourism can still do it in the own base," said co-chair Decker, who made the motion.

But Sen. Olsen argued that if the funding isn't provided in the budget, the Department of Tourism would have to cut into its advertising budget to conduct the study.

Decker's motion failed 6-10. Democratic Rep. Mark Pocan and Sen. Mark Miller voted with the Republicans.

Pocan was apologetic, saying this would be "one of the very, very few times" he would disagree with the co-chair.

"What's Kreuser's number," Decker joked, referring to Pocan's caucus leader, who appointed him to the committee.

Labels: Tourism

Gov. Doyle has proposed increasing the amount spent on advertising the Wisconsin Lottery from $4.6 million to $5.8 million annually. The spending boost is calculated to increase revenue from the lottery by $15 million. (Budget paper 696.)

In a bit of role reversal, Democrats moved to eliminate the funding increase. Dem Sen. Jauch said in fact he'd "like to do away with the lottery program altogether."

Republicans on the committee defeated the motion to eliminate the funding increase, citing the property tax credit benefits of the lottery. The motion failed 8-8.

Labels: Lottery

The motion to eliminate the $5 fee for businesses that file sales tax returns by paper is defeated on a party-line 8-8 vote, meaning the governor's proposal remains in the budget.

Labels: Tax Tax

What started out as a breeze has bogged down as both sides dig in over Gov. Doyle's budget proposals.

The latest is Doyle's proposal to charge a $5 fee to small businesses who file sales tax returns by paper was roundly criticized by Republicans. The proposal, called the "tax tax" by some Republicans, is aimed at encouraging electronic filing. (Budget paper 688.) The fee is expected to generate an extra $2.8 million in revenue for the state annually.

Republicans moved to eliminate the proposal.

Rep. Jeff Stone, R-Greendale, said some small businesses don't have access to the Internet, and he also has privacy concerns "if you're like me and the Department of Revenue shared your Social Security number with the rest of the world."

Rep. Scott Suder, R-Abbottsford, said the proposal punishes those who don't have Internet. "Let's be honest, this is a tax on a tax."

Rep. Dan Meyer, R-Eagle River, said the session was shaping up to be "a great day for government" with the number of spending fee increases the committee has already approved.

But co-chair Sen. Russ Decker, D-Wausau, said filers can also avoid the fee by filing by phone. Suder replied that not all residents, such as the Amish, have telephones.

Sen. Bob Jauch, D-Poplar, said we are moving toward an electronic society, and that there is efficiency to be gained by technology that reduces the need for staff and bigger government.

Sen. Lena Taylor, D-Milwaukee, said Republicans are "making a mountain out of a mole hill."

"It's really simple, you make a phone call, you don't have to pay an extra fee."

Labels: Decker, Jauch, Stone, Suder, Tax Tax, Taylor

The committee has returned from its break, with Rhoades telling Jauch that Republicans agree the Crex Meadows Youth Conservation Camp in Grantsburg is a good project, but he may not be pursuing the right funding source. She asks Jauch if he'd like to pull it back until a later time.

Jauch replied that the same case could be made with any motion down the line. He seemed to warn that defeating the motion would impact negotiations down the road.

"I've seen this committee work like a boxing match and I've seen this committee work in a very collegial way," Jauch said, explaining that the job of the committee is to get as much of the budget completed before it goes to the legislative houses.

"I understand that programs like this you want to fund without expending new GPR, there for it has to come from someplace. I've identified a funding source," he said.

Jauch's motion failed on a party-line 8-8 vote.

Labels: Jauch, Rhoades, Youth Apprenticeship Program

The JFC is informal to discuss an amendment introduced by Sen. Bob Jauch to divert $80,000 from the Youth Apprenticeship Program in the second year of the biennium for the Crex Meadows Youth Conservation Camp. To receive the funds, the camp must raise $20,000.

The Burnett County camp serves at-risk students in Northern Wisconsin. About 60 students participate each year, and Jauch said students who attend the camp have an 86 percent high school graduation rate.

Assembly Republicans on the committee balked at the earmark, but Sen. Luther Olsen, R-Ripon, had a word withthe GOP Republicans just before they could take a vote. Co-chair Rep. Kitty Rhoades, R-Hudson, then called for the committee to stand informal.

Labels: DWD, Jauch, Youth Apprenticeship Program

There is a sharp disagreement with what to do with Youth Apprenticeship Program funding in the Department of Workforce Development. (Budget paper 883.)

Co-chair Rep. Kitty Rhoades moved alternative four, which would keep funding for the program at the current level. Gov. Jim Doyle is recommending $1.6 million in funding over the biennium, including adding two new positions.

Democrats on the committee say the program is a success. Sen. Bob Jauch accused Republicans of "de-funding" it.

Rep. Robin Vos was exasperated. "Only in government is staying at the current level called de-funding," he said.

One of the positions is earmarked for Milwaukee, which fired up Rep. Scott Suder. "Why should one go to the great state of Milwaukee?" he asked. "I could not get a special project position for Abbottsford."

Rhoades' motion fails 6-10, with the two Republican Senators on the panel, Luther Olsen and Alberta Darling, voting with Democrats.

Co-chair Sen. Decker moves to adopt the governor's proposal, which passes 11-5, with GOP Rep. Steve Kestell voting with Olsen, Darling and the Dems.

Labels: DWD, Youth Apprenticeship Program

Budget paper 740, regarding positions for the unclaimed property division of the state Treasurer's office, passes unanimously.

The governor's recommendation for funding vocational rehabilitation case services in the Department of Workforce Development, budget paper 880, passes through committee after a motion to adopt an alternative fails.

When the committee's starting point is the governor's budget, a tie vote means the governor's budget prevails. Could this mean that committee member will be more likely to stay in their seats through this process, lest they miss a vote?

Labels: State Treasurer

Budget paper 305 concerns fees for securities agents and investment advisers. The governor has proposed raising the fee from $30 to $60 for the initial license and annual renewals. Program revenue from the increase is estimated at $3 million annually.

Co-chair Rep. Kitty Rhoades moves for a vote on alternative 3 of the budget paper, which would eliminate the fee increase.

Sen. Luther Olsen says the governor's proposal is an example of the fee transfers in the budget. Co-chair Sen. Russ Decker says fee transfers have been going on for as long as he's been in the Legislature, and the state's "gotta pay the bills."

Initially, Rhoades motion passes 8-7-1, but the absent member, Sen. Bob Jauch, walked in just as the roll call was being completed. They record Jauch's vote as no, and the motion is defeated 8-8. The governor's proposal passes.

Labels: Decker, DFI, Jauch, Olsen, Rhoades

The JFC is called to order on the first day of voting, beginning with budget paper number 305.

The Legislative Fiscal Bureau has released budget papers for the first executive session Thursday.

See the papers here: http://www.legis.state.wi.us/lfb/2007-09budget/Budget%20Papers/April%2026.htm

The Joint Finance Committee will begin executive sessions on the state budget Thursday at 10 a.m.

Here are the agencies the committee will start with:

- Department of Financial Institutions
- State Treasurer
- Secretary of State
- Department of Workforce Development -- Employment, Training, and Vocational Rehabilitation Programs
- Department of Revenue -- Tax Administration
- Department of Revenue -- Lottery Administration
- Department of Tourism
- Environmental Improvement Fund
- Department of Natural Resources -- Forestry and Parks
- Lower Wisconsin State Riverway Board
- Department of Administration -- Transfers to the Department
- Ethics Board
- Elections Board
- Government Accountability Board

See the agenda here.

Gov. Jim Doyle's budget proposals to repeal the qualified economic offer for teacher pay and to provide domestic partner benefits were among the initiatives discarded in the interest of bringing the Joint Finance Committee to the table for 2007-09 budget negotiations.

Today, the JFC co-chairs, Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, announced an agreement on which items in Gov. Jim Doyle's budget proposal to discard as non-fiscal policy, which agencies will be negotiated from the starting point of Doyle's proposal, and which will be taken from the current base level of funding.

The Joint Finance Committee is expected to begin meeting in executive session late next week.

In a press release, Rhoades says that the negotiations resulted in the removal of nearly $18 million in fee increases, $42 million in segregated fund transfers, and $32 million in new transfers out of the Transportation Fund.

Items identified as policy will be introduced as separate legislation.

Also cut from Doyle's budget document:

* A mandate for insurance coverage of autism spectrum disorders, a proposal of the governor's that received a lot of attention during public hearings, was pulled out as policy, as were two other insurance mandates.

* A provision to modify the retirement accrual formula for educational support personnel, another topic committee members heard about during public hearings.

* A proposal to allow UW System faculty and academic staff to collectively bargain.

* A proposal to reinstate the position of Public Intervenor in the Department of Justice.

See the procedure and policy memo here.

See a press release from Rhoades here.

See a press release from Decker here.

Currently, a trio of representatives from the Medical College of Wisconsin are before the committee, which has $10 million at stake in the Capital Budget to buy a neurological scanner.

Following MCOW's testimony, there will be a public hearing on the Capital Budget. About 30 residents have signed up to present testimony to the committee.

Following this meeting, there are no meetings scheduled for the JFC as the co-chairs, Sen. Russ Decker and Rep. Kitty Rhoades, continue to negotiate a starting point on the budget. They are expected to meet later today or tomorrow to discuss which portions of the budget will be taken from Gov. Jim Doyle's proposal, and which portions will be negotiated by the committee starting from this year's base funding. They will also discuss the schedule and other ground rules.

Sen. Alberta Darling, R-River Hills, asked the UW officials how they know that state investment in building projects will result in the goal of increasing the number of graduates from UW schools.

Reilly cited the survey numbers he referenced in his opening remarks. UW-O chancellor Wells said that the problem hasn't been the number of grads, but that the respective schools haven't been churning out grads with degrees that suit their particular region. He said changes in curriculum are addressing that issue.

Rep. Scott Suder, R-Abbottsford, a former student body president at UW-Eau Claire, questioned the need for a $49 million renovation to the Davies Center on the campus. He said in a referendum UW-EC students voted down the project, but it did pass in subsequent online surveys.

"I'm not sure an online survey conducted by a a D.C. consulting firm ... constitutes shared governance," Suder said.

UW System President Kevin Reilly is now taking a turn before the committee, selling the system's "Growth Agenda for Wisconsin" portion of the Capitol Budget.

Reilly said a survey of 14,000 students at 46 universities sowed that 74 percent believe facilities related to their major were "extremely" or "very" important in their choice of college. Also, 42 percent said that residence halls were a key part of college selection, and a third said they rejected a college due to inadequate facilities, Reilly said.

Reilly also said that the UW System schools didn't receive everything on their wishlist. UW institutions requested funding for more than 30 additional projects with a price tag of $440 million that were unfunded or delayed, he said.

"Of the many requests we received, we forwarded only the most reasonable to you," Reilly said. "We've already done much of the sifting and winnowing before these requests ever make it to the Capitol."

Adding testimony are chancellor Don Betz of UW-River Falls and chancellor Rick Wells of UW-Oshkosh.

Rep. Jeff Stone, R-Greendale, wasn't buying the projection that the Capitol Budget will result in 30,000 construction jobs.

Rob Cramer, secretary for the Building Commission, had explained earlier that the building plan creates 30 jobs per $1 million in spending.

Admitting he's "no mathmetician," Stone said, but his calculations show that amounts to about $33,000 per worker. Knowing what construction workers make, Stone said under Cramer's estimate "there wouldn't be anything left to build the building."

Cramer said the estimate includes a multiplier over the entire Capital Budget, and suggested all the jobs would not be full-time jobs.

Labels: Capital_Budget, Stone

Responding to Rep. Robin Vos' argument that the Capital Budget loads debt on future generation through borrowing, Sen. Bob Jauch, D-Poplar, said waiting will cost more in the long run.

Jauch used as an example the state Capitol renovation project. With Building Commission secretary Rob Cramer's help, he was able to estimate that the cost of restoring the Capitol building would have ballooned by a third if started today, from the estimated $160 million that was spent to an estimated $240 million if the project was undertaken now.

Jauch also argued that the building program could generate as many as 30,000 construction jobs.

Rep. Scott Suder, R-Abbottsford, said he agreed with Jauch that the Capitol renovation was a good investment.

"You may want to frame that," Rep. Kitty Rhoades, R-Hudson, quipped.

"Someone call a doctor I think I'm having a heart attack," Jauch said.

However, Suder added, while the projects are worthy, taxpayers cannot afford them, and the list must be prioritized.

Labels: Capital_Budget, Jauch, Suder

Rep. Robin Vos, R-Racine, said he was "shocked" by the amount of borrowing proposed in the Capital Budget.

While many of the projects seem worthwhile, he said, the question is "how much we can afford and how much is in the best interest of the state."

The budget includes funds for both building new structures and repair and maintenance of older state buildings, Vos said. He wondered why the state doesn't prioritize the repair and maintenance of existing buildings, and put off new structures until more funding is available.

Sen. Fred Risser, D-Madison, a member of the Building Commission, said there has to be a balance of the two concerns. For example, he cited the Dept. of Transportation facility at Hill Farms in Madison, where he said it has been determined that repairing the building would be more expensive than tearing it down and constructing a new one.

Labels: Capital_Budget, Hill Farms, Risser, Vos

The Joint Finance Committee's informational hearing on the 2007-09 state building program is underway. Sen. Fred Risser, D-Madison, is on hand to represent the committee.

He tells the committee that the plan before them was unanimously recommended by the state Building Commission, which consists of a bipartisan group of legislators, a citizen appointee and the governor.

See the LFB analysis of the Capital Budget: http://www.legis.state.wi.us/lfb/2007-09budget/Governor/Building%20Commission%20Recommendations.pdf

Labels: Capital_Budget

Sen. Russ Decker, D-Weston, said Joint Finance Committee voting on the 2007-09 budget is unlikely to begin this week.

Decker had predicted two weeks ago at a public hearing of the JFC in Prairie du Chien that the committee would begin executive sessions on the budget bill this week. But when asked today if the committee will begin voting this week, Decker said, "Probably not."

In a press release today, Decker and two of his colleagues on the JFC, Dem Sens. Bob Jauch and Mark Miller, say they are ready to go.

While Decker and Rep. Kitty Rhoades, R-Hudson, the co-chair of the committee, have met to discuss where to begin the process, they have not reached an agreement on which parts of the budget to start from Gov. Jim Doyle's proposal, or on which parts to start from current "base" levels. Discussions also continue on which proposals of the governor's budget will be placed on the policy list, said Eric Schutt, spokesman for Rhoades.

"Quite honestly it's a number of things," said Schutt. "It all fits together - there's not just one specific spot that's a sticking point."

Looking at past budgets, Schutt said the committee is not behind schedule. "We're still right in the wheelhouse of when the starting date is," he said.

The JFC will meet tomorrow for a briefing on the state building budget. The meeting begins at 1 p.m.

See the LFB analysis of the 2007-09 state building program here.

Assembly Speaker Mike Huebsch, R-West Salem, again slammed Gov. Jim Doyle's budget and the resulting tax burden on Wisconsin residents during a press conference this morning with other Assembly Republicans.

Huebsch especially singled out Doyle's hospital assessment tax.

"It'd be foolish to tax the sick," Huebsch said, adding that government should be the most focused on two areas: K-12 education and those who cannot help themselves, namely the sick.

Huebsch didn't commit to two-thirds funding of K-12 education, but said Republicans are ready to spend more in schools than ever before. When asked what Republicans intend on cutting from Doyle's budget, Huebsch said it's not exactly what's going to be cut, but how spending should be prioritized.

He also said that Republicans most likely won't go back to base program funding when engineering the budget, rather opting to analyze programs and pay for their affordability.

Huebsch also said legislators are hoping to have SeniorCare extended a little further and he is working with Doyle to find a bipartisan solution for replacing the program. The federal waiver for the senior citizen prescription drug program expires June 30, but Doyle has asked for a six month extension.

Doyle spokesman Matt Canter said, despite what Republicans are preaching, the state "can't cut our way to prosperity."

"We have to invest in health care and education and creating jobs," Canter said, adding the governor is doing this while providing tax relief to the middle class.

--By Matt Dolbey

The two organizations representing state fire and police chiefs want a provision in the budget that gives disciplined police officers or firefighters the option to head to arbitrator, rather than police and fire commissions and to circuit court for appeals.

Particularly of concern to the chiefs is a clarification memo sent by DOA Secretary Mike Morgan that appears to bypass police and fire commissions' authority over disciplinary matters.

See Morgan's memo here.

"Discipline issues will now be tossed to arbitrators who have no responsibility to enforce a community standard, who need not live in the community, and who won’t comprehend the ramifications of their actions. The circuit court will be an inadequate afterthought," reads a memo delivered to the Joint Finance Committee co-chairs by the Wisconsin Chiefs of Police Association and Wisconsin Fire Chiefs Association.

"With such action, Chicago-style law enforcement will be knocking on Wisconsin’s door and people will have cause to question the integrity of firefighters and policemen who enter their homes under stressful situations. We urge members of the Joint Finance Committee to do the right thing and determine not to shoehorn this break with our century-plus Progressive tradition into the budget without independent scrutiny."

The chiefs feel the issue is more appropriately pursued through legislation, specifically AB 57, introduced by Sen. Dave Hansen, D-Green Bay, and Rep. Garey Bies, R-Sister Bay.

See the chiefs' memo here.

Gov. Jim Doyle released specifics about the guidelines students will have to follow to be eligible for the Wisconsin Covenant program, a proposal to ensure state high school graduates a spot in a UW System school if they meet certain citizenship and academic standards.

During hearings with Doyle Administration department heads, Republicans Joint Finance Committee members raised many questions about the program, asking for specifics from agency secretaries but receiving little information.

The 2007-09 budget proposed by Doyle includes $364,000 in GPR to create the Office of the Wisconsin Covenant in the Department of Administration and fund two positions "for the purpose of promoting attendance at nonprofit post-secondary institutions in this state." The director of the office would be appointed by the DOA secretary.

So far, there hasn't been a projection on how much the program will cost once fully implemented. The first class eligible for the program is in eighth grade now, and will graduate in 2012.

According to details released today, to be eligible students must achieve a minimum 2.85 cumulative grade point average on a 4.0 scale, or have earned a GPA of 3.0 or higher for at least five semesters and never less than a 2.0 in any semester, or have earned a GPA of 3.25 during senior year and shown similar achievement over time.

Though there are not mandatory course requirements, students are encouraged to take college-prep classes.

Another eligibility requirement is that students perform at least 30 hours of service, or is involved in a "school sponsored service learning experience."

A student would be ineligible for the program if convicted of a felony or "serious misdemeanor." Expulsion from school would also bar participation in Wisconsin Covenant.

In addition, an in-school or out-of-school suspension during high school will require the student to "demonstrate substantial personal growth through letters of recommendation by members of their community or school."

See more details on the program here.

Budget watchers are predicting a long, hot summer for the Legislature as lawmakers attempt to iron out a compromise between Gov. Jim Doyle's proposed 2007-09 budget and the GOP's wish to pass a document with no new tax increases.

Some are predicting the process could stretch out into the fall, as it did the last time the Legislature had a partisan split and the bill went to conference committee.

Sen. Russ Decker, D-Weston, the co-chair of the Joint Finance Committee, is hopeful the budget-writing panel can begin voting this week. But he and the Assembly co-chair, Rep. Kitty Rhoades, R-Hudson, were reluctant to predict when the budget will be finalized.

"I think we focus more on the process and the product rather than we're in by a deadline," said Rhoades.

The co-chairs have a meeting set for tomorrow to discuss the starting point and schedule for the committee. Rhoades and Decker are holding their cards close to their vests, but other members spoke out on their preferences.

"From my perspective, I would like to see the entire budget start from base," said Rep. Scott Suder, R-Abbottsford. "There is in my view far too much policy, far too many tax increases and far too much expansion of government to go with the governor's budget."

Democrats like Sen. Mark Miller of Monona want to start with Doyle's document.

"That's the blueprint. That's the only thing that's before us right now," said Miller.

*Listen to interviews with six members of JFC as they look ahead to the budget votes at the WisPolitics.com audio page:http://www.wispolitics.com/index.iml?Content=173

Over 300 people filled the National Railroad Museum in Green Bay to voice their concerns and support about Gov. Jim Doyle's 2007-09 budget proposal to the Joint Finance Committee yesterday.

Members were pleased with the high turnout.

"I find it to be rewarding," said Sen. Lena Taylor, D-Milwaukee. "It shows that we are more alike around the state than we are different ... and it gives me the opportunity to learn what's working in one region of the state that we could use in other regions."

Presenters, each given three minutes to present their agenda, spoke on a wide variety of issues including education, health care, transportation, tourism. About 200 people registered to speak over the course of the hearing, which lasted more than seven hours.

"The benefit here is that the representatives and senators that are in attendance are members on the committee that oversees the state's purse strings, so to speak," said Alvin Geurts, the highway commissioner of Outagamie County. "There's certainly a lot of influence they have in allocating funds down to our local county level."

Geurts added that he was pleased to have an opportunity to speak, but was disappointed that it took most of the day before he got the chance. Many individuals were waiting for more than four hours before they were given a chance to speak because of the high turnout.

Many of the speeches were in support of government spending, and the governor's proposed budget allocations, but there were also those with different ideas. A representative from BayCare Medical Center spoke out against the proposed hospital tax, saying, 'We're having more and more problems recruiting physicians to the state.'

Other issues that were addressed included the proposed statewide smoking ban and cigarette tax, funding for sexual assault and domestic abuse centers, and the state of highways and road systems.

Members of the committee were given a chance to respond to the presenters, and many had questions. Those who were presenting especially liked this portion of the session.

"I think it's very important (to get feedback)," said Colleen Homb, the family development director for the Lakeshore Family Resource Center. "You definitely know you're being heard."

Overall, it seemed both committee members and presenters alike were pleased with the opportunity to have an open forum discussion session to talk about the various financial issues the state faces.

"I think this was extremely important," Sen. Taylor said. "The people are the ones out there, they're the ones on the front line ... and this allows us to hear them."

--By Tim Maylander, WisPolitics.com Green Bay correspondent

Labels: Green_Bay_Meeting, Taylor

The committee's public hearing road trip draws to a close today after dozens of hours of testimony. Committee staff estimate that approximately 1,000 citizens testified before the committee.

As has been the pattern, many people in Green Bay today came to voice support for the governor's proposal to increase the cigarette tax by $1.25 per pack. Other topics that have been frequently brought up during other hearings, insurance mandates for autistic children, UW tuition, collective bargaining for UW System faculty and staff, funding for domestic violence prevention and treatment, and corrections reform, were also well-represented today.

One topic that hasn't come up much, property taxes, was introduced today by a member of the Sheboygan County Taxpayers Alliance, who implored the committee to reduce spending and lower taxes.

"We've had enough already," said the man after sitting through hours of testimony from residents. "We can't afford it."

Labels: Green_Bay_Meeting, Joint Committee on Finance

Joint Finance Co-chair Russ Decker, D-Weston, said one of the most recurrent themes he's heard during six public hearings in all corners of the state is support for the governor's proposed $1.25 per pack increase in the cigarette tax.

"People are really pent up against smoking," he told WisPolitics in Green Bay.

But the tobacco tax hike will meet significant opposition from Republicans. In the Republican controlled Assembly, Speaker Mike Huebsch, R-West Salem, has vowed to deliver a budget from his house that contains no tax increases. But insiders have speculated that there will be a compromise on the tobacco tax near the end of the budget process as lawmakers determine how large a funding hole they'll have to fill.

However, JFC Co-chair Kitty Rhoades, R-Hudson, said discussions of the cigarette tax won't be about compromise, but rather about the inability to protect segregated funds. She points out that tobacco revenue streams intended for smoking cessation and health care have been frittered away before.

"I'm not ready to step up and create huge new revenue streams that you can't protect," she said. "Why would we do that again?"

Rep. Scott Suder, R-Abbottsford, said he is ready to "go to the mat" to block every tax increase proposed in the budget, including the tobacco tax.

"I believe the speaker when he says not only can we do it (balance the budget without tax increases), but we will do it," Suder said.

The cigarette tax increase was a proposal by GOP Rep. "Doc" Hines a few years back.

"It's not like Republicans are pure on this issue as the driven snow," Decker said. "The fact of the matter is you've got to balance the books and pay the bills."

Labels: Cigarette_Tax, Joint Committee on Finance

The Legislative Fiscal Bureau has finished its analysis of the $1.3 billion building budget. The report includes more details on the $50 million proposal for state agency conservation construction projects.

See the report:
http://www.legis.state.wi.us/lfb/2007-09budget/Governor/Building%20Commission%20Recommendations.pdf

Read Assembly Speaker Huebsch's response:
http://www.wispolitics.com/index.iml?Article=93313

Labels: Capital_Budget, Legislative Fiscal Bureau

Green Bay Mayor Jim Schmitt opened testimony today by requesting more state support for the Green Bay Metro Transit System, which he says is in danger of losing eligibility for federal funds due to population growth. He also asked for a boost to state aid for Green Bay downtown redevelopment projects, particularly waterfront projects, and to maintain tourism funding and funding for the film industry.

Dan Nerad and Mike Blecha of the Green Bay School District expressed support for education initiatives in Gov. Doyle's budget, but also urged support for legislation that calls for a complete review of the state school funding formula.

A representative for Oneida Tribal Chair Gerald Danforth urged the committee to stick with the spirit of the 1998 memorandum of understanding the tribes signed with former Gov. Tommy Thompson which laid out appropriate expenditures for tribal payments to the state when they allocate the $156 million in tribal payments to the general fund.

An assistant DA from Brown County said the budget needs to address understaffing of DA's offices. He said the Brown County office is seven to eight prosecutors short of a full staff. "It's equivalent of the Milwaukee Brewers putting five or six players on the field," he said. He said pay progression for prosecutors also needs to be addressed.

UW-Madison School of Education Dean Julie Underwood, speaking on behalf of the Wisconsin School Finance Network, a coalition including AFT-Wisconsin, WASB, WEAC, the Wisconsin PTA and others, said the governor's K-12 education proposals are a band-aid for a broken system and "don't go far enough."

"We need to fix the system of school financing in the state of Wisconsin," she said. "It's failing our children, it's failing our state."

Rep. Kitty Hudson, the Hudson Republican who co-chairs the committee, said Underwood "should be careful of the message (she is) sending."

"I believe we have good schools," she said. "We can always do better, but I believe we have good schools."

Labels: Green_Bay_Meeting, Joint Committee on Finance, School funding

Vintage locomotives are the backdrop for today's public hearing as the JFC holds its last public hearing on the 2007-09 state budget today at the National Railroad Museum in Green Bay.

As of 10 a.m., 133 residents had signed up to testify before the committee, not counting the 11 invited speakers including Gerald Danforth of the Oneida Nation, Mayor Jim Schmitt of Green Bay, the mayors of Marinette and Oconto and Brown County Executive Hintz.

Yesterday in Rhinelander, approximately 130 testified before the committee, and the meeting ended around 6 p.m. Committee members braved a treacherous drive on a wintry Highway 29 last night.

Local lawmakers at the hearing include GOP Reps. Gary Bies, Phil Montgomery, Frank Lasee, Gary Tauchen, and Karl Van Roy.

Labels: Green_Bay_Meeting, Joint Committee on Finance

Video from the Joint Finance Committee's round of agency briefings is now available at WisconsinEye. To view, go to www.wisconsineye.org.

The JFC is in Rhinelander today for the penultimate public hearing on the 2007-09 state budget. Weather permitting, WisPolitics will blog from the final hearing tomorrow at the National Railroad Museum in Green Bay.

The Joint Finance Committee will host members of the state Building Commission and DOA staff on Wednesday for an informational meeting and public hearing on the 2007-09 state building program.

The meeting begins at 1 p.m.

Tomorrow, the JFC will be in Rhinelander at Nicolet College for a public hearing. The JFC's state tour wraps up Thursday with a public hearing at the National Railroad Museum.

See more information on the public hearings here.

Some of the other topics brought before the JFC today:

- Ron Leys, Crawford Co. Board chairman, said his is the second poorest county in the state, with income $8,000 to $10,000 lower than the state average. Many of his constituents "live in beat-up trailers trying to hold their families together on meager paychecks," he said.

He said the most pressing need is for universal health care and job creation initiatives. Young people are leaving the area due to a lack of good jobs, as evidenced by declining enrollments in local school districts, Leys said.

- school administrators and teachers from districts including Prairie du Chien, Seneca, Riverdale (Muscoda), Lancaster and Pecatonica testified about the need to address how declining enrollment affects rural districts' funding.

- parents of children with autism praised the governor's initiative to require insurers to cover autism treatment.

- a tech college student from La Crosse asked for more WHEG funding.

- a 9-year-old girl and her father asked for full funding for child care program Wisconsin Shares and for schools. "I'd want my tax dollars to pay for brain cells, not jail cells," said the dad.

- several women came forward to voice their support for the $950,000 increase in domestic abuse services funding.

- a local nursing home administrator said lack of funding for nursing homes is reaching a crisis point and said state fines for violations at the homes are "excessive." He also said the fines collected shouldn't go to the education fund; "they should go back into funding for Medicaid."

- one local resident came to protest the governor's proposal to increase the "pistol transfer fee" to $30 from $8.

A string of local officials, educators and others testified before the committee today.

Prairie du Chien Mayor Cheryl Mader asked the committee to back Gov. Jim Doyle's "modest" $12 million increase in shared revenues. She noted that shared revenues have decreased since 1997, including a $70 million cut in 2004.

She also asked that the budget "reduce the number of property tax exemptions created for special interests," noting that homeowners bear 70 percent of the property tax burden. She suggested closing the loopholes could direct more cash to shared revenues.

She also voiced support for the increase of levy limits to 4 percent as Doyle has proposed.

The president of the Wisconsin Waterfowl Association said the 7,000 member group supports the plan to reauthorize and expand the state stewardship program, but also told the committee that more of the land needs to be opened up to hunting, trapping and fishing.

Tom Spencer, Vernon County Board chairman, asked the committee to reinstate the county's DMV station. Vernon is currently the only county in the state without a DMV station, he said, which "puts the citizens of Vernon County at a disadvantage."

Joe Gow, UW-La Crosse chancellor, asked the committee to support the UW Systems "Growth Agenda."

Bob Wright, an employee at the Prairie du Chien Correctional Institution, asked that the state expand the facility by 240 beds for drug and alcohol offenders. He said the inmates could be housed at a vacant building at the institution that has been well-maintained. Expansion of the facility would create jobs for the region, he said.

Dave Breitbach, of Prairie du Chien Memorial Hospital, has serious concerns with the proposed 1 percent tax on hospitals' gross revenues and the proposed "raid" on the Injured Patients and Families Compensation Fund. He called Doyle's proposals "a disjointed attempt to fund health care by taxing health care."

The committee had 15 pizzas delivered to the school, and members are taking periodic breaks to take a quick lunch break in a classroom adjacent to the auditorium.

Labels: Joint Committee on Finance, Pizza, Prairie_du_Chien_Meeting

Joint Finance co-chair Russ Decker said the federal government's decision to end a waiver for the state's SeniorCare program complicates the budget process.

State officials have estimated the end of the waiver would mean a loss of about $195 million in federal matching funds and rebate income from drug companies that the federal government allows the state to receive through the waiver.

"If it wasn't tricky enough doing the budget, this gives us another big hole to fill," said the Dem senator from Weston.

Fellow co-chair Kitty Rhoades, R-Hudson, said the decision was not a surprise and people have been working on a back-up plan.

"We have a $115 million commitment (over the biennium) to providing prescription drug coverage," she said. "We will work with the administration, and I think most people will never know there's been a switch."

Sen. Luther Olsen, R-Ripon, said he was "disappointed" by the decision, but legislators will not "sit on our hands."

"Some of us are already working to figure out a prescription drug package that will not leave seniors high and dry," he said.

La Crosse AARP member Dave Krieg came to today's hearing to praise the efforts of the Legislature and the governor to save SeniorCare before he heard this morning that the federal government had ruled against extending the waiver. He vowed that he and other Wisconsin seniors will be "camped on the doorstep" of legislators until an alternate plan is implemented.

Responding to Krieg, Sen. Bob Jauch, D-Poplar, lamented the decision, saying the U.S. Department of Health and Human Services and Bush Administration "stuck a sword right in the heart of SeniorCare."

He said the decision "cut the legs out from senior citizens and hands the profits over to the drug companies."

Taking a break from the testimony. Jauch bristled at the HHS claim that the state didn't provide enough information about the budget neutrality of the program.

"That's just a big cop-out from an administration that continuously wants to blame everyone else for their mistakes," he said.

Jauch said the decision is "a huge financial setback" for the state and said the demise of the program means the state will no longer be able to negotiate lower prices from drug companies.

Decker agreed the end of SeniorCare poses a "big problem" for the state fiscally. But he refused to throw dirt on the program, saying there is still potential for the feds to reverse course.

"There's still a chance," he said. "We have to keep putting pressure on Bush and (HHS Secretary Mike) Leavitt. It seems they're more concerned about big oil getting a tax break than they are about older citizens who've played by the rules their whole lives."

Labels: Health Care Reform, Joint Committee on Finance, Medicare, SeniorCare

Local legislators attending today include Rep. Lee Nerison, R-Westby; Rep. Jennifer Shilling, D-La Crosse; Rep. Phil Garthwaite, D-Dickeyville; and Sen. Dan Kapanke, R-La Crosse.

By the meeting's noon start, 88 residents had signed up to address the committee. Nerison said as far as anyone could tell, this is the first time the JFC has held a public hearing in Crawford County.

Sen. Russ Decker, D-Weston, said he is hopeful the committee can start voting on the budget in the next two weeks.

Also in attendance is Sen. Dale Schultz, R-Richland Center.

Labels: Joint Committee on Finance, Prairie_du_Chien_Meeting

The committee is meeting today at Prairie du Chien High School. Tables are set up on the stage of the school's auditorium for the members, and citizens are seated in the 250-seat capacity theater, which so far is about one-third full. As of 11:30, about 80 people are signed up to speak to the committee.

Labels: Joint Committee on Finance, Prairie_du_Chien_Meeting