WisPolitics Budget Blog

SWIB memo says investment board has earned $392.8 million in oil investments

The State of Wisconsin Investment Board has earned at least $392.8 million from its investments in five oil companies, according to a memo from the state agency. The totals in the memo are similar to a tally WisPolitics did earlier this month on gains from oil companies between 2003 and this year.

See the memo here

Read the WisPolitics story from May 10:

At the same time as Gov. Jim Doyle has railed against what he has called the "excessive" profits of major oil companies, Badger State retirees with holdings in the state's pension fund have done well by those same firms' success.

All totaled, gains from oil company stocks in the fund amount to nearly $400 million over the past four years.

A spokesman for Doyle, who has proposed taxing big oil, said the governor isn't bothered by SWIB's investments in those stocks.

According to the State of Wisconsin Investment Board, cash earnings from the portfolios of five major oil companies managed by SWIB staff and external managers totaled nearly $207 million from January 2003 to March 2007. Those firms are BP Amoco, Chevron Texaco, ConocoPhillips, ExxonMobil and Shell.

During the same period, the value of the state pension fund rose from $51 billion to $85 billion, SWIB officials said.

In the last two years, oil company portfolios controlled by external managers saw cash gains of nearly $50 million. Those stocks were invested in Chevron, ConocoPhillips, ExxonMobil, Royal Dutch Shell and BP. (Figures from 2003 to 2005 were not available.)

And as of April 2, SWIB’s accounting records also show unrealized gains (which have not been cashed out) of more than $134 million in both internally and externally managed oil company portfolios. In addition, SWIB has numerous commingled funds, some of which have investments in oil companies. (Some of those holdings go back even further than 2003, officials said.)

Matt Canter, a spokesman for Doyle, said the governor isn't upset by SWIB’s gains from oil stocks.

"Absolutely not," Canter said. "SWIB has a fiduciary responsibility to its investors and they have to fulfill that responsibility."

Canter said the governor isn't opposed to any company making what he called a "good profit and then investors reaping the benefits of that success.

"But the big oil companies have been making profits in excess in anything we have ever seen. And at the same time, regular Wisconsin families are struggling to pay rising prices at pump."

Canter said the governor believes it's only fair for oil companies to be taxed to raise money to pay for the state’s roads. Doyle's proposal would raise around $270 million over the biennium.

Shell Oil Co. President John Hofmeister has called Doyle's proposed oil surcharge "corporate discrimination." His company reported a $25.4 billion profit last year.

Other critics of Doyle's plan have said the surcharge will only be passed on to consumers, though the governor said the law he is proposing would not allow oil companies to do that.

Laborers Back Oil Franchise Fee

The Wisconsin Laborers' District Council put out a memo to members of the Joint Finance Committee today formally backing Gov. Jim Doyle's plan to assess oil companies gross revenues. The governor's proposal would create a 2.5 percent assessment on gross receipts of oil suppliers in the state.

The memo was sent to clarify the group's position after an internal memo was leaked this week containing a legal opinion from former Dem AG Peg Lautenschlager that the fee could be challenged on constitutional grounds. Republican members of the JFC cited the memo today in arguing against the fee.

* Rep. Robin Vos, R-Caledonia, circulated an LFB memo today regarding potential revenues from the oil franchise fee. It shows the potential income stream based on varying per gallon prices, and the amount it could cost consumers should oil companies try to "pass-through" the cost.

Fit To Be Tied

Rep. Pocan voiced the frustrations of many a member over the hundreds of replica pieces of railroad sent to committee members offices early this year.

Pocan proposed a $10,500 reduction in bonding authority for the freight rail preservation program as retaliation for the excessive lobbying effort from Wisconsin & Southern Railroad Co. He said his office received more than 350 of the metal rail pieces before they stopped counting. Each package was marked with a postage stamp of $2.08, he said.

"I would hope we could send a message that this is not OK," he said, saying somewhat tongue in cheek it should be done for the sake of the legislators' and for the mail carriers.

He said the railroad's lobbying effort could set a dangerous precedent, saying that if the committee was considering a bill on fossil fuels, members might start receiving cans of oil. ("We could use them," was one reponse.)

"And if we have a bill on manure spreading ..." Pocan teased.

The motion failed, but did get six votes.

More on the story from the April 13 WisPolitics Report:

RAILROAD LOBBYING TACTIC HASN'T BROUGHT JFC MEMBERS ABOARD THE TRAIN YET

Wisconsin & Southern Railroad Co. has traditionally asked members to fill out a postcard to lawmakers around budget time, reminding them of the importance of the state's rail system.

"This time we thought of something more creative," says Ken Lucht, the company's community development manager.

So as an attention-grabber, members have jammed the mailboxes of Gov. Jim Doyle and members of the Joint Finance Committee with thousands of envelopes containing a letter and a 6-inch high by 1/8-inch thick replica piece of rail made of sheet metal.

"We made up 10,000 of them," said Lucht, adding that about half have been mailed so far. Lucht said a large portion of the mail is being sent by current customers and potential customers of Wisconsin & Southern.

"They want to see more state investment into the system so it's stronger, more reliable and more competitive for them," said Lucht.

He said a handful of local officials are also participating in the lobbying effort, along with some W&S employees.

The railroad is pushing Rail Restoration 15, a plan to restore rural rail lines. RR 15 wasn't included in the guv's budget, but Lucht is hopeful the JFC may amend the funding into the budget.

See more on RR 15 and a letter from Wisconsin & Southern Pres. William Gardner:
http://www.wispolitics.com/1006/_070411Gardnerletter.pdf

Doyle spokesman Matt Canter said there is funding included in the budget for other rail initiatives.

"There are a number of rail projects the governor wants to move ahead on, but there are fiscal limitations, and the governor has to make tough choices in putting together a budget that funds other priorities, namely health care, education and job creation," he said.

JFC members' offices reported receiving 300 to 400 of the mailings, stamped with a postage price of $2.07 each. Doyle's office reported receiving 540 of the replica rail pieces.

Lucht declined to give specifics on how much the lobbying effort cost, but said while the materials were marked $2.07 for postage, but the group received a "significantly lower" bulk mailing rate.

"It's a very big effort, and we're out to make a statement," said Lucht.

Individually, metal pieces aren't heavy. But when delivered by the hundreds to legislative offices, they can present a challenge to mail delivery, Capitol insiders say.

"The mail people were a little upset because they're heavy," said the staffer.

And then there's the issue of disposal.

Senate Chief Clerk Rob Marchant has been collecting the rail replicas, and is planning to take them to a scrapyard eventually.

"It hasn't really caused problems," he said. "We are thinking about how to most effectively recycle the replica piece of railroad track, rather than just throw them in the trash."

The effort, as of yet, seems not to have made the hoped-for early impression on JFC members, some of whom have expressed annoyance.

"I haven't heard anybody talking about it," said one staffer. "The reality is where are you getting that money from?"

Committee Adjourned

Back Tuesday, 10 a.m.

USH 51 Expansion Gets Certain Date

The committee approved a motion from Dem Sen. Mark Miller of Monona and GOP Rep. Steve Kestell of Elkhart Lake to specify that the Department of Transportation begin construction on the expansion of USH 51 from a two- to a four-lane highway by Dec. 31, 2012.

The expansion would take place between Reardon Road to Grinde Road in the De Forest, a 4.6-mile length of highway.

Kestell said the issue came to him at the public hearing near De Forest earlier this year. He said the need for the improvements were demonstrated to him when a car accident occurred outside the public hearing as the committee left.

More KRM Motions

Sen. Lena Taylor, D-Milwaukee, has proposed a motion to require the Southeastern Wisconsin RTA to conduct a study on the feasibility of extending the proposed KRM commuter rail project through the 30th Street corridor to the northern Milwaukee County line.

Rep. Stone said the JFC is not the place to plan out the KRM project. Taylor replied that the motion is not a mandate, it merely asks them to study the extension.

The motion failed on an 8-8 vote.

A similar motion from Rep. Colon to add a rail stop at National Avenue and/or Greenfield Avenue in Miwaukee also failed on an 8-8 vote.

Labels: KRM_Line

KRM Funding Motion Fails

On an 8-8 vote, with Dems voting for, Republicans against.

Labels: KRM_Line, Transportation

Stone Not Supporting Rental Fee Increase

Rep. Jeff Stone, R-Greendale, a supporter of the KRM rail line project, said he can't support the increase in rental car fees to pay for it.

"I think there will be a regional answer that will work well, and I will continue to work for that," he said. "We have to be careful in finding the right situation."

Labels: KRM_Line, Stone, Transportation

KRM Motion Emerges

Sen. John Lehman, D-Racine, has introduced a motion to provide the southeastern Wisconsin RTA the authority to sponsor and operate the proposed Kenosha-Racine-Milwaukee commuter rail service; to levy a vehicle rental fee of up to $15 per transaction in the three-county region (the fee is currently $2 per transaction); and to issue up to $50 million in bonds for the anticipated local funding share required for initiatiing KRM commuter rail service.

(budget paper 777)

Lehman said the proposal "means a lot to the city of Racine," and the rail line would provide significant economic benefits to the region.

He said the proposal does not involve state dollars, but an authority of the RTA funding sources.

"This proposal would make a huge difference in Racine but also Kenosha and Milwaukee, tying those communities in southeastern Wisconsin together," he said.

Labels: KRM_Line, Lehman, Transportation

Dem Motion Fails: Governor's Proposal Survives

The Dem omnibus failed on an 8-8 partisan vote. No other motions were offered, and Gov. Jim Doyle's budget proposals for transportation were adopted by default.

See the Dem motion here.

Labels: Oil_Franchise_Fee, Transportation

Vos: Dem Motion Is Anti-Business

Seizing on a portion of the Democratic omnibus motion, Rep. Vos said the proposal to implement combined reporting for corporate income tax is "anti-business."

The proposal would increase estimated general fund revenues by $23.4 million in 2007-08 and $52 million in 2008-09.

Vos said the proposal would "increase taxes on almost every large business in Wisconsin."

Labels: Oil_Franchise_Fee, Transportation

GOP Motion Fails

After nearly two hours of debate, the GOP motion on the Transportation papers failed on an 8-8 partisan vote.

Next will be the Dem proposal.

Better late than never, here's a link to the GOP motion.

Labels: oil, Transportation

Jauch: Oil Fee Should Be Progressive

Sen. Bob Jauch, D-Poplar, whose district includes "little oil" company Murphy Oil, said he will seek modifications when the bill hits the budget oil.

He said Murphy lost money last year due to damage to its equipment for Hurricane Katrina. He said he would try to make the tax "progressive" to minimize the impact on smaller oil companies.

"Murphy Oil should not pay the smae as British Petroleum or Exxon/Mobil," he said.

He also marvelled at Republican legislators citation of a memo from former Dem AG Lautenschlager. "You give a lot more credibility to Peg Lautenschlager as a defeated attorney general than you ever did as an incumbent," he said, and called her opinion on the franchise fee "not worth the paper it's written on."

Labels: Oil_Franchise_Fee, Transportation

Oil Fee "Like an Onion"

Rep. Scott Suder, R-Abbotsford, said the oil company assessment is like an onion. "The more you peel it back, the more it stinks."

Suder said at a time when gas prices are at an all-time high, he can't believe that members of the committee would look to increase the tax more.

Rep. Pedro Colon, D-Milwaukee, an attorney, said GOP fears about litigation are "bizarre."

He said AG J.B. Van Hollen is capable of taking on oil companies that violate the no "pass-through" provision. "He's as smart as any lawyer anywhere else," he said, adding that the law is simple. "It's just paper," he said.

Rep. Pocan said while oil companies may not be the "Mother Theresa's of the corporate world," it shouldn't be assumed they will violate the provision. "They're not dumb enough to publicly break the law," he said.

Labels: Oil_Franchise_Fee, Transportation

June 5 Budget Papers

See them here.

Gusher of Excuses

Rep. Mark Pocan, D-Madison, said the committee is $50 million GPR over the governor's budget coming into today, and with the $160 million GPR decrease proposed in this motion, he doesn't know when they're going to make it up.

"We're trying to finish next Friday," he said. "You have yet to suggest where you're going to make cuts ... You're starting to run out of possible ways to do this other than being fiscally irresponsible."

Pocan said he's heard a "gusher of excuses" from GOP lawmakers who are trying to defend "big oil," and said a vast majority of the public want oil companies to pay.

Responding to Pocan's remarks about the GPR hole, Rep. Rhoades said it highlights the basic philosophical differences between the two sides. She said Gov. Doyle proposed taxes to increase revenues - "$536 for every man, woman and child" - to increase government spending, while the Republicans want to put the brakes on the taxing and spending, which is what they're doing with this proposal.

Labels: Oil_Franchise_Fee, Transportation

More on Dem Omnibus

- On budget paper 763, the Dems propose adoption of alternative A2, parts a,b, and c.

- Budget paper 765: adopt alternative 2m, which would increase heavy truck fees 10 percent effective Oct. 1. This would increase estimated transportation fund revenue by $26.7 million over the biennium.

- Delete $90 million SEG and .75 SEG position and provide the same amount in GPR and .75 GPR position in 08-09 to reflect the elimination of provisions in the bill that would use transportation fund revenue for general fund purposes. Retain current law GPR appropriations, and delete SEG appropriations created by the bill effective July 1, 2008.

- Modify the governor's recommendations for general transportation aids to provide 2.5 percent annual increases, rather than 2.0 percent increases.

- Provide an additional $128,300 SEG in 2007-08 and $647,300 SEG in 2008-09 to fund 2.5 percent annual calendar year increase, rather than a 2.0 percent increase, to each tier of mas transit systems for '08 and '09.

- Transfer $14.6 million in 08-09 from the petroleum inspection fund to the general fund.

Labels: Oil_Franchise_Fee, Transportation

Gusher of Money

Rep. Robin Vos, R-Caledonia, said it's disingenuous to say that the oil franchise fee won't be passed on to consumers.

"If you want to vote for a gas tax, why don't you just be honest and tell people what this is," he said.

Vos asked the LFB what the "pass-through" would be, and they told him it'd be about 7.4-cents per gallon. Vos said that equals an additional $142 million in revenue above what's outlined in the budget, "a gusher of money."

Labels: Oil_Franchise_Fee, Transportation

White Men Crying

Sen. Decker, D-Weston, said the GOP motion creates a $160 million GPR hole in the budget, and expressed dismay that business groups are balking at the idea of trying to recover revenue from "big oil."

Decker singled out the state's largest business lobby. "Instead of Wisconsin Manufacturers and Commerce, they should change their name to White Men Crying," said Decker.

Rep. Dan Meyer, R-Eagle River, said he doesn't like paying $3.49 per gallon, but only the naive would believe that oil companies won't pass on the cost of the assessment, ballooning gas prices further.

"The only people in this room who actually believe that's going to happen are the eight Democrats sitting at this table," he said. "The people in our districts are going to pay the price. It's not big oil."

Sen. Luther Olsen, R-Ripon, brought up the constitutional concerns with the tax, saying former AG Peg Lautenschlager said the tax could be unconstitutional, and that the state may have to pay back the revenues, plus interest.

He warned that if the fee is passed as part of the budget, the state will be in court before the ink is dry on the governor's signature.

"We'll spend the money on projects, and then when we have to pay it back ... we dig ourselves in a serious, serious hole," he said.

Labels: Oil_Franchise_Fee, Transportation

The Bottom Line on Dem Motion

Under the Dem motion, change to the full budget bill would be +$122.3 million SEG and -.75 SEG positions, +$26.6 million SEG-REV, +$87 million and +.75 GPR position, +$90 million GPR-REV, +$14.6 million SEG-Transfer, +$359,100 SEG-L, -$39.7 million SEG-S, and -$99.6 million BR.

Labels: Transportation

Tuesday's agenda released

Tuesday's JFC agenda has been released. The meeting begins at 10 a.m. Here are the agencies on tap:

State Fair Park

District Attorneys

Office of the Lieutenant Governor

Office of the Governor

Legislature

Employee Trust Funds

Department of Administration -- Office of Justice Assistance

Fox River Navigational System Authority

Board of Commissioner of Public Lands

Department of Natural Resources -- Departmentwide

Department of Natural Resources -- Water Quality

Arts Board

Educational Communications Board

Higher Educational Aids Board

University of Wisconsin Hospitals and Clinics Board

University of Wisconsin

More on Omnibus

The GOP proposal would eliminate the three SEG audit positions in the governor's budget proposal for the oil company assessment, deleting $388,000 in SEG spending.

Total change to the bill under the motion is -182.9 million in SEG-REV; -$161.1 million SEG and 3.75 SEG positions; and +$160.8 million GPR and .75 GPR positions.

In addition, it moves to adopt alternative 1 in budget paper 764, to increase vehicle registration fees for automobiles by $20, effective Oct. 1, and increases the fees for light trucks by $26.50 for trucks not more than 4,500 pounds, by $22.50 for trucks not more than 6,000 pounds, and by $28.50 for trucks not more than 8,000 pounds.

Heavy truck registration fee increases would go up 25 percent under the GOP proposal, raising revenues to the transportation fund by $25.8 million in 2007-08 and $41 million in 2008-09.

The GOP omnibus also proposes adoption of alternative A2 from budget paper 765, which would delete the conversion of appropriations from the general fund to the transportation fund, deleting $33.9 million SEG and .75 SEG position annually and provide $33.9 million and .75 GPR position annually to reflect the change.

On budget paper 765, the GOP motion would adopt alternative B2, deleting the conversion of the supplemental title fee transfer. Specifically, it would delete $13 million SEG over the biennium and provide the same amount in GPR.

On budget paper 765, the motion is to adopt alternative C2, which would delete the provision.

Regarding budget paper 766, the GOP motion adopts alternative 2, which wouuld increase the standard vehicle title fee from $28.50 to $38.50 as of Oct. 1. Estimated increase to revenues wouuld be $25.1 million over the biennium.

Labels: automobile_registration_fees, Oil_Franchise_Fee, Transportation

Welcome to Transportation Thursday

The committee should be launching in a few minutes. An omnibus motion has been circulated with co-chair Sen. Russ Decker's name on top covering papers 761-788, covering every paper on the agenda today.

A second omnibus motion from co-chair Rep. Kitty Rhoades is also distributed covering budget paper 761-767.

The Republican alternative on budget paper 761 would adopt alternative 5, which would delete the governor's oil company assessment. Transportation revenues would be reduced by $116.6 million in 2007-08 and $158.3 million in 2008-09 to reflect the deletion.

In the Dem alternative on budget paper 762, the motion calls for adoption of alternative A2, which would extend all current law exemptions to the motor vehicle fuel tax to the proposed oil company assessment in order to reflect the governor's modified recommendation for the types of uses subject to the assessment. Also, adopt alternative C1, which would decrease estimated transportation fund revenues by $300,000 in 2007-08 and $400,000 in 2008-09 to reflect a reestimate of oil company assessment revenue due to provisions.

Rhoades' GOP proposal is taken up first.

Labels: Oil_Franchise_Fee, Transportation

Medicaid Fraud Unit Established

A motion from Rep. Scott Suder, R-Abbottsford, to provide $85,200 GPR and $255,600 FED over the biennium to fund 1.5 positions to staff the Medicaid Fraud Control Unit in the Department of Justice was adopted 16-0.

The committee has adjourned for the day.

Labels: Department_of_Justice

Other DOJ Highlights

Budget papers 497 and 498 both revert to current law after motions stalled on 8-8 votes.

The committee adopts alternatives 2 and 3 in budget paper 499, and alternative 2 on budget paper 502 on unanimous votes.

Labels: Department_of_Justice

DNA Analyst Positions OK'd

The committee approved it by unanimous consent. (See budget paper 495)

Labels: Department_of_Justice

More IT Votes

Budget papers 116 and 117 will be maintained at current law after motions from both sides to alter the base level failed in 8-8 deadlocks.

Labels: DOA, Information_Technology

IT Oversight Requirements Mulled

The committee is mulling alternatives 1 through 7 on budget paper 115 regarding information technology reporting in the Department of Administration.

The committee has not moved to adopt alternative 8, which would allow the Joint Committee on Information Policy and Technology, if it is organized, or the Joint Legislative Audit Committee, if JCIPT is not organized, to review all executive branch information technology projects considered high-risk or with a cost of at least $1 million.

Sen. Bob Jauch, D-Poplar, said recent audits have "raised a series of legitimate questions to provide for stronger legislative oversight to come up with more of a comprehensive plan to evaluate IT programs and measure progress in those programs."

The cost overruns are not unique to Wisconsin, Jauch said, and said now is not the time to point fingers.

Jauch called on legislative leadership to reorganize the JCIPT, saying the Legislature has abdicated its oversight responsibility.

Rep. Robin Vos, R-Caledonia, said the IT cost overruns are not just a thing of the past, pointing out recent news that a $32 million contract called the Medicaid Management Information System has been extended one year with no accounting of how much more it will cost the state. With the IT projects, he said, "as the deadline gets closer, the savings shrink dramatically."

He said there needs to be accountability for the overruns. "We're just beginning to pull off all the layers of mismanagement and overspending that's been ocurring."

UPDATE: On a 16-0 vote, the committee approves alternatives 1-7.

A motion to adopt alternative 8 failed on an 8-8 vote, with committee Democrats voting against.

Labels: DOA, Information_Technology

Committee alters Doyle proposal on police, fire discipline proceedings

The committee this morning modified the governor's proposal to change disciplinary procedures for police officers and fire fighters to make the changes only apply to fire fighters.

A GOP motion to remove the entire provision from the budget failed 7-9.

Dem Rep. Mark Pocan then offered a motion to only apply the changes to firefighters. That was approved 12-4.

The changes would not affect the city of Milwaukee.

See paper 291.

Press Release Reaction to Yesterday's JFC Votes

AARP Wisconsin: Applauds Family Care expansion

Medical College of Wisconsin: Joint Finance Committee approves funding for cutting-edge Alzheimer's and Parkinson's disease research

Metropolitan Milwaukee Association of Commerce: Bi-partisan Finance Committee delivers high-tech win for Wisconsin

Sen. Kanavas: Statement on Joint Finance approval of Medical College of Wisconsin equipment

Sen. Sullivan: Lauds medical research investment included in state budget

Waukesha County Economic Development Corporation: WCEDC Supports Joint Finance Committee decision

Wisconsin Merchants Federation: Committee on Joint Finance votes to support economic development in Wisconsin

Gov. Doyle Warns GOP to Keep Hands Off Tobacco Money

Saying that the use of tobacco securitization money to balance the 2002 budget proved to be a "disaster," Gov. Jim Doyle warned Republican legislators not to count on using the $600 million in securitization funds in this budget for one-time expenditures.

"If I have to veto the whole budget, that's what I'll do," warned Doyle of any attempts to redirect the money intended for smoking cessation and treating smoking-related illnesses. The interest from the resecuritization is expected to net $50 million a year for the state.

Doyle, flanked by Sen. Russ Decker, the Weston Democrat who co-chairs the Joint Finance Committee, and Senate Majority Leader Judy Robson, D-Beloit, said he is concerned because of "rhetoric" from Republicans in the Assembly who are vowing to pass a budget with no tax or fee increases.

Doyle said he's not sure where Republicans intend on getting the money to fund programs, "But I know where they went six years ago, and where they went was a disaster in many ways."

Doyle also praised the Joint Finance Committee for their fast work on the budget, and said he hopes that he can get a bill back to him by late June or early July.

He said it will take him about three weeks to work on the bill once he receives it from the Legislature.

Listen to Doyle's opening remarks to reporters here.

Listen to Doyle's Q&A with reporters here.

Committee Adjourns: Next Meet-Ups Wed. and Thurs.

The committee next meets on Wednesday to take up these papers.

The JFC also meets next Thursday, when they'll take up Transportation budget papers.

UW Votes

To the surprise of some, the committee adopted the governor's recommendation on budget paper 180, authorizing $449 million borrowing for building program projects.

Since the building program is an agency where the committee starts from base, the JFC could have nixed the governor's proposal with an 8-8 partisan vote. Instead, the vote was 16-0 to adopt the governor's recommendation.

In addition, the committee unanimously to adopt Doyle's recommendations on budget paper 181 regarding building projects for the UW System.

The committee split 8-8 on papers 182 and 183, meaning the programs return to base funding.

Labels: Building_Commission, UW_System

Regent Vos

Digging up his record as a UW student regent in the early '90s, Sen. Taylor said Rep. Vos was "brilliant" in those days.

She said Vos said at the time that fee increases can sometimes be "necessary evils."

"I just think that Regent Vos was just brilliant," she said.

Vos responded that he thought the 19-year-old drinking age was a good idea at that time too, but doesn't seem so now.

He also supported a tuition freeze at that time, before he knew who was really footing the bill for the UW System, he said.

"I have been consistent in saying people shouldn't have to pay for what they can't afford," he said.

Labels: Taylor, Vos

Dems, Republicans trade barbs over UW building funding

Democrats and Republicans argued a motion authored by Rep. Kitty Rhoades to cut funding and bonding for building projects on University of Wisconsin System campuses and the Hmong Cultural Center and the Kenosha Civil War Museum.

Rep. Scott Suder, R-Abbottsford, said the motion, which targets mostly dorm projects, prioritizes purely academic projects.

"It's like a credit card, just because you have it doesn't mean you have to max it out," Suder said.

Though Democrats argued that the projects would eventually be paid by students' segregated fees, Republicans said this further contributes to UW's rising cost of education.

Property Sale Paper Passed

The committee has adopted the governor's recommendation on the sale of state-owned property - budget paper 177 - on a 16-0 vote. The move will result in an estimated $30 million in additional GPR in 2007-08.

Labels: Building_Commission

More votes.

The governor's position is adopted on budget paper 398.

Alternative 2 on budget paper 399 is adopted. Dem Reps. Mark Pocan and Pedro Colon vote with Republicans on the panel.

Nursing Home Bed Assessment Put Off 'Til Later Date

Budget papers 396, on nursing home rates and bed assessments, and 397, regarding intermediate care facilities for the mentally retarded, are held to a later date.

Labels: DHFS

Vos Blasts Family Care Expansion - Motion Passes

Rep. Robin Vos, R-Caledonia, said the Family Care proposal is a "massive, massive expansion of government," and said it will cost at least $74 million in GPR in 2010-11. And the costs will continue to climb, he said.

He said the expansion is creating a "huge structural deficit in spending," and said once the program is expanded, it won't be reeled back in.

"We will never have the courage to scale it back," he said.

Sen. Jauch answers that the savings of the program and the move away from reliance on institutional care is a savings that doesn't show up on the ledger. He said programs like Family Care allow those with disabilities to "live a richer life."

"We are saving costs over the long run, and we are more productively benefiting society," Jauch said.

UPDATE: The Family Care motion passed 14-1, with Vos voting no and Sen. Decker absent.

-- Decker returns and votes "aye."

Labels: DHFS, Family_Care, Vos

DOA, DOJ on Docket for Next Week

Following today's meeting, the JFC will next get together on Wednesday at 10 a.m. On the docket:

Employment Relations Commission

Department of Administration -- General Agency Provisions

Department of Administration -- Information Technology

Department of Justice

Motion Considered

Under the motion, authored by GOP Rep. Rhoades and Dem Sens. Mark Miller, John Lehman and Bob Jauch, the committee will adopt alternative A1 of budget paper 395.

That alternative approves the governor's funding recommendations, as reestimated, to expand Family Care. Funding is reduced in the bill by $1.74 million GPR and $2.32 million FED in 2007-08, and increased by $1.73 million GPR and $220,000 FED in 2008-09 to reflect the reestimate.

In addition, current law provisions would be retained requiring DHFS to seek the approval of the JFC under a 14-day passive review process prior to expanding the program to areas of the state where more than 29 percent of the population would be eligible for the benefit. Under the motion, the expansion would be deemed approved if the JFC fails to act within 45 days. The governor's provision to repeal the current law provision that requires any expansion of the program to areas where more than 50 percent of he population eligible for the benefit must be approved by the full Legislature would also be adopted under the motion.

The motion requires that as of Jan. 1, 2008, all counties participating in the program by offering the services of a CMO to either provide payment to the DHFS, or to authorize DHFS to allocate an portion of the county's basic community aids allocation to fund the operation of the county's resource center CMO.

Further, the motion directs DHFS to provide $190,000 in 2007-08 and $525,000 in 08-09 to contract with an organization to provide ombudsman advocacy services to individuals enrolled in Family Care who are under the age of 60.

Also, the motion directs a reallocation of MA funds -- $2 million GPR and $2.71 million FED in 07-08 and $2 million GPR and $2.77 million FED in 08-09 -- to increase funding available to serve individuals under the children's long-term support program.

Labels: DHFS, Family_Care

Meeting Begins

Rep. Rhoades, R-Hudson, begins with an apology for the late start, and a discourse on the history of Family Care program. Two years ago, she said, she had an agreement with the Doyle Administration on how to proceed as the program went statewide, only to have the agreement "blown up" when it was submitted for the budget.

"I gotta tell you, I was angry," said Rhoades.

Particularly upsetting to her was the removal of legislative oversight, she said. "When we're going to do something statewide and we're changing the way we do it forever, why would we not want to make sure we do it right?" she said.

Rhoades said the delay this morning was to make sure this budget got it right, including legislative oversight, and more funding for mentally disabled children.

"I'm really concerned this is the population that is going to get left behind," she said.

Labels: DHFS, Family_Care, Rhoa

JFC Will Convene in 5 Minutes

So says committee co-chair Rep. Kitty Rhoades.

Still Delayed

Still waiting for the JFC to start. Speculation that there is an agreement being worked out on Family Care.

Delay

The JFC will begin at 10:45.

Blogger Tries to Pin Down Republicans on "No Tax" Pledge

Right-leaning blogger Boots & Sabres' attempt to get GOP Assembly members to sign a pledge not to vote for a budget that raises taxes or fees "that aren't directly related to the cost of delivering the service" has so far netted nine members.

Those who have signed on so far are Reps. Vukmir, LeMahieu, Lothian, Pridemore, Lasee, Zipperer, Nass, Kramer and Nygren.

You can read more on the debate surrounding the pledge at the site's homepage.

UPDATE: Rep. Robin Vos, R-Caledonia, says reports that he was contacting fellow Assembly Republicans and urging them not to sign the pledge are "absolutely untrue."

The reports on Boots & Sabers that he was asked by Assembly Speaker Mike Huebsch, R-West Salem, to do that are untrue.

"I was never requested by any member of the leadership to do that, nor if I had been would I have," Vos told WisPolitics today, echoing comments he made to Boots & Sabers' Owen Robinson.

Vos said he has signed similar pledges for Americans for Tax Reform in 2004 and 2006, and another pledge from the Club for Growth.

"I respect Owen on and I think he does a great job of making sure that we do what we as conservatives should be doing to help relieve the pressure on taxpayers," Vos said.

"Sometimes I think people’s frustration with Gov. Doyle's fee and tax increases gets so high it spills over onto the people who are doing everything they can to beat them back," Vos said.

Huebsch's office did not return calls for comment.

Taylor Talks About Her Tough Choice

Sen. Lena Taylor, D-Milwaukee, spoke passionately about her concerns yesterday regarding an omnibus motion on TANF funding.

Taylor explains her concerns, and why she eventually voted for the motion, in this press release.

Labels: TANF, Taylor

Links to Omnibus Motions

Here are links to the omnibus motions on TANFand economic development that the JFC adopted today.

Labels: Department_of_Commerce, DWD, Economic_Development, TANF

Quick Work

The committe zipped through today's agenda, adjourning in a record 2 hours and 15 minutes.

Action resumes on Thursday with these budget papers.

Colon Bats .500 on Motions

The committee having wrapped up its regular agenda, stand-alone motions are flying fast and furious.

Rep. Colon's two stand-alone motions that got mixed results.

A motion to require that if a person is required to display multiple building permits, those permits be displayed in the same location or building site, passed 10-6.

A second motion from Colon, to require that a if a building permit is withdrawn the agency that issued the permit must notify the owner of the property and the general contractor within five days failed on an 8-8 party-line vote.

A Rep. Vos motion regarding the regulation of elevator mechanics passed 16-0.

A motion from Sen. Decker to require that the $308,000 unencumbered balance in the Wisconsin Technical College System firefighter training operations appropriation revert back to the fire dues distribution appropriation at the end of each fiscal year, and then be transferred to the DHFS program revenue appropriation for inter- and intra-agency EMS programs failed on an 8-8 partisan vote.

Labels: Colon, Decker, Department_of_Commerce, Vos

Alphabet Soup on PECFA Motion

The committee unanimously adopts alternatives A2, B1, C1, D1 with options a-through-e on budget paper 222.

Ultimately the vote deletes transfer of $4 million from the Petroleum Inspection Fund to the general fund, but approves the governor's recommendation to reestimate of the PECFA program awards appropriation to $20 million annually.

In addition, $49 million in curently authroized, but unissued, PEFCA revenue obligation bonding authority is deleted under the motion.

Labels: Department_of_Commerce, PECFA

Committee Unanimous on Commerce Omnibus

16-0 is the vote on the omnibus motion on Commerce.

Labels: Department_of_Commerce, Economic_Development, Wisconsin_Development_Fund

Jauch Laments Missing Bio-industry Funds

Sen. Jauch said he supports the omnibus before the committee regarding economic development, but said the committee has already blown its opportunity to take up the most important economic development tool - investment in the biofuel industry.

The governor's provision to spend $30 million over the biennium for a renewable energy grant program was deleted by the JFC two weeks ago. (See more here, and here.)

"The bio economy is going to be the new industrial revolution," Jauch said. If the state fails to invest it will "take a backseat to every other state in the nation," he said.

Labels: Department_of_Commerce, Economic_Development, Wisconsin_Development_Fund

Another Omnibus

Sen. Decker and Rep. Robin Vos, R-Racine, have introduced an omnibus covering budget papers 211-215.

Among the provisions in the motion:

- Adopt alternative 4 in budget paper 211 to provide annual funding of $350,000 GPR for manufacturing extension grants. In addition, provide $1 million GPR to the Wisconsin Development Fund in 07-08 that may be used to create a venture center.

- Reject the governor's recommendation in budget paper 213, and instead place $50,000 GPR in 07-08 and $700,000 in 08-09 in the JFC's supplemental GPR appropriation, with the $50,000 to be released to Forward Wisconsin and the Dept. of Commerce to develop a plan within six months for using the $700,000 to attract businesses to Wisconsin.

- Adopt alternative 1 on paper 214 to restructure the Wisconsin Development Fund. In addition, expand the Wisconsin Development Finance Board to include two legislative members, one appointed by the Speaker of the Assembly, one appointed by the Senate Majority Leader, and require that all other appointed members of the board be confirmed by the Senate. Also, delete the mining economic development grants and loans program, the certified capital companies program, recycling rebates program, and brownfields general purpose revenue grant program.

- Adopt alternative 1 on budget paper 215 transferring $1 million in 07-08 and $350,000 in 08-09 from tribal gaming revenue to program revenue repayments.

Labels: Department_of_Commerce, Economic_Development, Wisconsin_Development_Fund

TANF Omnibus Passes

The motion passed 14-2. Voting against were Rep. Steve Kestell, R-Elkhart Lake, and Rep. Pedro Colon, D-Milwaukee.

Taylor Has Concerns About Motion

Sen. Lena Taylor, D-Milwaukee, gave an emotional argument against the motion, saying it cuts funding for families that are in "desperate need."

She said as successor to former Sen. Gwen Moore, now a U.S. Rep., she feels a responsibility to stand up against the funding restraints included in the motion.

"I wish I had a piece of Gwen Moore or a piece of (state Rep.) Tamara Grigsby in me now," said a choked up Taylor. "It's sad that we could easily say, 'We did the best we could.'"

She said she hopes the siutation can be rectified in a budget repair bill.

Labels: TANF, Taylor

Action Starts with Omnibus TANF Motion

A bipartisan motion from committee co-chairs Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, and Sen. Bob Jauch, D-Poplar, and Rep. Jeff Stone, R-Greendale, has been proposed to cover budget papers 885-895.

Among the provisions, the motion modifies budget paper 886 to reflect reestimates for 2007-09 by decreasing the child care development block grant by $500,000 FED annually and increases estimated funding from Wisconsin Works by $500 PR annually to reflect reestimates of the revenue sources. It also decreases funding for benefits for the caretaker supplement by $177,000 annually to reflect projected program costs, and decreases funding for kinship care by $75,200 annually.

It also modifies the governor's recommendation to fund local administration of W-2 by reducing funding by $2.5 million FED annually. The amounts allocated for benefits would total $44 million in 07-08, and $43.3 million in 08-09.

In addition, the motion modifies the governor's recommendation to fund benefits for the next two years of the 2006-09 W-2 agency contracts by reducing funding by $1.04 million in 07-08 and $329,300 in 08-09.

The motion also limits the governor's proposal for a real work, real pay pilot project to 100 people, reducing funding by $152,800 FED in 07-08, and $1.6 million in 08-09, and deletes one FED position.

Deleted from the bill under the motion is the provision to extend W-2 grants to women who do not have children and who are in their third trimester of an at-risk pregnancy. Also deleted is the governor's proposal to extend grants to caretakers of newborn infants from 12 weeks to 26 weeks.

Under the motion, child care subsidies would be funded at $345.6 million FED in 07-08 and $355.4 million FED in 08-09. Deleted from the governor's proposal are provisions to adopt lower income eligibility requirements for the Wisconsin Shares child care subsidy program. The motion also deletes the governor's provision to authorize DWD to implement a child care waiting list for non-W-2 participants.

TANF funding for the earned income tax credit would be reduced by $14.5 million FED in 07-08 and $18.3 million FED in 08-09, which requires a reciprocal increase in GPR funding to fully fund EITC.

State funding for the administration of W-2 and TANF-related programs would be reduced by $845,500 in 07-08, and $856,000 in 08-09.

UPDATE: Motion deletes the Quality Rating System for Child Care Providers (budget paper 892)

In addition, the motion authorizes counties to investigate fraud in Wisconsin Shares and in W-2. Counties must provide to the state: (a) 50 percent of the fraud recoveries during the first month the county receives recoveries due to fraud investigation; (b) 66 percent of the fraud recoveries made during the second month the county receives recoveries due to fraud investigation; and (c) 100 percent of the fraud recoveries made during the third and subsequent months the county receives recoveries due to the investigations. Fraud recoveries received by the state from Wisconsin Shares would be put back into supporting Wisconsin Shares, and W-2 fraud recoveries would be used to support W-2.

Labels: TANF

Thursday Meeting to Focus on DHFS, Building Projects

See the budget papers here.

DOA Adjusts Hospital Assessment

In a letter to the co-chairs of the Joint Finance Committee, DOA Secretary Mike Morgan says the hospital assessment proposal is being adjusted from 1 percent of total revenues to .8 percent. The assessment is expected to generate $600 million in federal matching funds for Medicaid.

See the letter here.

Labels: Hospital_Assessment

Tuesday's Budget Papers, Hot off the LFB Press

See the papers here.

Running Lapse

The committee adopted an alternative to budget paper 170 that requires the DOA Secretary to prepare a budget adjustment bill for legislative approval of the estimated $40 million in annual lapses from unencumbered balances.

Budget papers 171, 172, and 173 are held to later date.

The committee has adjourned. Back on Tuesday.

Grants to Community Health Centers Increased

A motion from Sen. Decker and Rep. Suder to provide an additional $3 million beginning in fiscal year 2008-09 to the DHFS for grants to community health centers passed 14-2.

Labels: Decker, DHFS, Suder

Lehman Motion Brings Meeting to a Halt

The committee is standing informal, still not having voted on the Lehman motion to fund a program to reduce infant mortality in Racine. Reps. Rhoades, Vos, Stone and Kestell, and Sen. Darling are on one side of the room conferring with staffers.

UPDATE - The committee is back, and Darling has introduced a friendly amendment to sunset the expenditure in two years. Lehman accepted the amendment, saying it was appropriate and would give everyone a chance to look at the issue statewide.

The motion passes 16-0, with Vos' aye coming reluctantly.

Labels: Lehman

Funding for Racine Infant Mortality

Sen. John Lehman, D-Racine, has a motion on the floor to provide $250,000 GPR annually to fund a program to reduce fetal and infant mortality in the City of Racine.

Rep. Robin Vos, R-Racine, said while Racine has problems with infant mortality, those same problems exist in other cities, and there shouldn't be an earmark for one city. He said neither the city of Racine or Racine County officials have come to him and said this is a priority.

Sen. Decker said if the committee doesn't vote for this "kids are going to be dying."

"We just spent 2.6 million on license plates, and some of you are going to turn your back on children," Decker said.

If the committee can't pass this, Decker said, "We oughta walk out, get in our cars and go home."

Labels: DHFS, Lehman, Vos

Modifications Made to HIV/AIDS Funding

A bipartisan motion from Vos, Pocan, Taylor and Darling modifies the governor's recommendation on budget paper 412, which deals with HIV/AIDS program funding through the Department of Health and Family Services.

The motion adopts alternative 4 of the budget paper, but begins the HIRSP pilot project on Oct. 1 rather than Jan. 1, provides an additional $400,000 above the governor's recommendation of $1 million for Mike Johnson grants, and modifies funding for the program to reflect re-estimates, reducing the funding to $1.74 million in 2008-09.

It also modifies statutes pertaining to the Mike Johnson grant program. The motion futher adopts alternative 5 of paper 412 which directs DHFS to determine feasibility of developing to the way the AIDS drug assistance program or other programs purchase HIV/AIDS medications in the pilot project and HIRSP would reimburse ADAP or the other programs for those prescription drug costs.

The changes to the bill increase spending by $1.3 million GPR.

The motion passed 15-1, with Rep. Suder voting against, saying the appropriation amounts to singling out one disease for special funding.

Labels: Darling, HIRSP, Pocan, Taylor, Vos

Next Tuesday's Agenda

The list of agencies to be dealt with next Tuesday has been announced. They are:

Department of Workforce Development – Economic Support and Child Care

Department of Commerce – Economic Development

Department of Commerce – Housing, Buildings and Environmental Regulation

Check back later for budget papers.

Ombudsmen

The governor's position on budget paper 160, establishing ombudsman services for Family Care enrollees, passed unanimously.

On budget paper 160, ombudsman services for residents of residential care apartment complexes, the committee opted for deletion.

Labels: Board_on_Aging_and_Long_Term_Care

Front License Plates May Become a Thing of the Past

Sen. Dave Hansen, D-Green Bay, and Rep. Dan Meyer, R-Eagle River, have written up a motion to limit the number of license plates the DOT is required to issue per vehicle to one. The single plate would be displayed on the rear of the vehicle.

The change would save $249,700 annually.

The motion carries 9-7, with Meyer, Kestell, Suder, Vos, Pocan, Colon, Decker, Hansen, and Taylor voting in favor.

"The first real suspense we've had," Vos quipped of the bipartisan vote.

Labels: DOT

Driver License Agreement

The committee voted to delete language to implement provisions of the Driver License Agreement, budget paper 796. Alternatives A3 and B4 passed on an 11-5 vote. The vote deletes the provision.

The governor's proposal on budget paper 797, the Vehicle Emissions Inspection Program, passed unanimously.

Labels: DOT

DMV Center Take 2

Rep. Suder is taking another run at his motion to keep DMV service centers from closing, modifying his earlier motion to prohibit closure unless an alternate plan for providing service is submitted by DOT and approved by the JFC.

UPDATE - The motion fails 8-8 along party lines.

Labels: DMV, Suder

State Driving ID Proposed

Rep. Colon has proposed a motion to allow the state to issue driving certificates that would allow individuals to get driver's licenses but would clearly state that the ID is not accepted by any federal agency for identification or other official purposes.

Colon said there is a population out there that is going to drive regardless of whether they can get an ID under the new federal regulations imposed by the Real ID Act, and that these people are the backbone of the dairy industry and other jobs across the state. He said there is provision for state driving certificates under the Real ID Act.

The motion failed on an 8-8 partisan vote.

Labels: Colon, real_ID

Suder: Don't Close DMV Center

Rep. Scott Suder, R-Abbottsford, has introduced a motion to prohibit the Division of Motor Vehicles from closing any service centers located in municipalities as of Dec. 1, 2006.

Suder said DMV centers have threatened closing due to Real ID mandates, and he said with the passage of the last bill (budget paper 795), that excuse no longer holds water. One such closure was threatened in his hometown.

Sen. Decker said the motion could have some unforeseen monetary implications, and that he finds it interesting that some members who are constantly trying to cut costs introduce motions that would keep service centers operating.

The motion failed on an 8-8 party-line vote, with Dems voting against.

Labels: DMV

Real ID Alternative Fails

A Dem-backed proposal on budget paper 795, implementation of the federal Real ID Act, failed on an 8-8 partisan vote.

Failing that, the governor's recommendation in the bill was adopted.

Labels: real_ID

Grain of Democracy

As the committee moves to budget paper 795, regarding the implementation of the federal Real ID Act, Rep. Pedro Colon is voicing his concerns.

Colon, D-Milwaukee, blasted US Attorney General Alberto Gonzales for the initiative, saying it reminds him of when Nazi Germany asked citizens to register their names with the state, or when Fidel Castro took power in Cuba.

He called the initiative "insane" and "frightening."

"I think we should wake up, this is completely against the grain of Democracy," he said. "We are about to compromise our civil rights to the point where we're not coming back."

Rep. Jeff Stone, R-Greendale, cited recent cases of DMV employees creating fraudulent ID cards as a reason for the bill. He said spending resources to ensure security of DMV facilities is appropriate given the desperation of some to acquire a state ID.

Labels: real_ID

Rocket's Red Glare

Access to fireworks could get a little easier under a JFC proposal.

The committee approved a stand-alone motion from the co-chairs to modify current allow that limits who can be issued fireworks permits. Currently, municipalities authority is limited to issuing permits to "a group of resident or nonresident individuals."

Under the motion passed unanimously by the JFC, that language would be changed to "any individual or group of individuals."

Meyer Motion Passes

A motion from Rep. Dan Meyer, R-Eagle River, to modify limits to elected town officer pay was passed unanimously. Under current law, pay for town officials who perform tasks beyond their job description is capped at $5,000. Under the motion, that cap is lifted to $15,000.

Labels: Meyer

Lehman Wants ATM Exemption Removed

Sen. John Lehman, D-Racine, offered a motion to modify the property tax exemption for computers to exclude automatic teller machines as of 2008.

The LFB estimated the fiscal impact would be $900,000 in 2009-10.

Lehman said the committee budget is about $30 million above the governor's bill so far, and the committee needs to start dialing back the spending.

The motion failed on an 8-8 partisan vote, with Dems for, Republicans against.

Labels: Lehman

ERP Sunset Provision Deleted

By unanimous vote, the committee voted to delete the provision in the governor's budget to sunset the expenditure restraint program. (Budget paper 709)

Labels: Expenditure_Restraint_Program, property_tax_relief, shared_revenue

Later

Budget paper 707 is left open as Republican members are drafting amendments.

The committee is now looking at budget paper 708, which would establish a county levy restraint program, with an appropriation of $15 million annually for a county levy restraint payment account, and $10 million annually for a bonus payment account.

UPDATE - GOP members move to delete the provision, which fails 8-8. Dems then move alternative 1, which would adopt the governor's recommendation with three exceptions. That motion also failed on an 8-8 partisan vote.

No further motions were offered, and the governor's position prevailed.

Labels: property_tax_relief, shared_revenue

We're Off

The JFC is rolling. Today's session begins with budget paper 706, relating to funding levels for county and municipal aid through the shared revenue program.

Gov. Doyle has proposed increasing funding the program by $15 million GPR in 2008-09.

The paper is adopted by unanimous consent. Co-chair Rep. Kitty Rhoades applauded the measure, saying it is "instant property tax relief."

Labels: County_and_Municipal_Aid

Adjournment

The JFC stands adjourned until Thursday at 10 a.m.

Home Stretch

The committee has moved on to the Shared Revenue and Tax Relief portion of today's program, starting with budget paper 715.

Gov. Doyle proposal is to create a "first dollar" property tax credit with a funding level of $100 million beginning in 2009.

Committee Republicans have moved alternative B2, which would modify the governor's recommendation to distribute the additional $100 million under current law provisions, on the same basis as the $593 million school levy tax credit appropriation.

UPDATE - motion fails 8-8. Alternative A1 passes 16-0.

Labels: property_tax, shared_revenue

Current Law Maintained on Milwaukee-Racine Charter School Funding

Meaning that the charter schools appropriation will be $44.2 million for 2007-08 and $48.4 million for 2008-09. (Budget paper 653)

Labels: Charter_Schools, DPI, School_Choice

Milwaukee Residential Charter School Removed from Budget

Sen. Decker's motion to delete the provision to establish a residential charter school in Milwaukee prevailed. (Budget paper 652)

GOP Sens. Olsen and Darling, and GOP Rep. Vos and Dem Reps. Pocan and Colon voted against eliminating the provision.

Labels: DPI, School_Choice

Doyle's Choice Proposal Adopted

On a party-line vote, the JFC rejects the GOP motion to adopt alternative 5 on budget paper 650, dealing with the Milwaukee Parental Choice Program. The motion would have deleted the provision and resulted in a general school aids reduction to MPS of about $21 million over the biennium.

Failing other motions, the governor's proposal on paper 650 was adopted.

Ditto budget paper 651.

Labels: DPI, School_Choice

School Choice Debate Rages

Rep. Rhoades said the school choice funding "mess" was started by the Democrats in 2001 who voted against two-thirds, and she said Republicans have been working diligently to fix it since. Now she sounds fed up. (Budget paper 650)

"If no one's willing to help, we'll just step aside and let you figure it out," she said.

Sen. Decker responded that it was a split Legislature in 2001 with a Republican governor who instigated school choice, and that when both houses of the Legislature turned Republican the program "expanded dramatically."

Decker said some of the choice schools "have no credibility," and listed scandals that have befallen some of the institutions.

Rep. Vos said choice is "the one program in Milwaukee I believe is actually doing a great job," and said Dems were on the "same old diatribe."

"Parents want this program," he said.

Labels: School_Choice

School Choice Cap Motion Fails

A motion from Sen. Taylor to limit the number of students under the Milwaukee parental choice program to 15,000 beginning in 2007-08 and specify that total family income cannot exceed 1.75 times the federal poverty level failed on a 7-9 vote, with Rep. Pocan voting with committee Republicans.

Labels: Charter_Schools, DPI, School_Choice, Taylor

Back to Action

The JFC is back and dealing with a motion by Sen. Jauch to direct MPS to allocate $250,000 annually for the Boys and Girls Club of Milwaukee, and $950,000 for 21st century community learning centers in MPS whose federal grants will be discontinued in 2007-08.

The motion failed 8-8.

A motion from Sen. Taylor and Rep. Colon to provide $9 million GPR in 2007-08 and $12 million GPR in 2008-09 to school districts with at least 50 percent of students eligible for free or reduced-price lunches is currently being debated.

UPDATE - Motion failed 8-8.

Sen. Decker went on a rant about the voucher program, saying his problem with it is that voucher advocates don't stand up for the "clinkers, shysters and swindlers" in the system. "We ought to close them down, flush out the clinkers and get rid of 'em," Decker said.

Labels: DPI, General_School_Aids, Revenue_Limits

Ten Minute Break

Renewable Energy Bonds for Schools Fails

Sen. Miller has moved authorizing $50 million in state general obligation bonding to make loans to school districts for the installation of energy efficient technologies and renewable energy systems.

The motion failed 8-8.

Miller's motion to provide $85,000 GPR annually and 1 GPR position to coordinate environmental education programs also failed on an 8-8 party-line vote.

Labels: Categorical_Aids, DPI

Build Me Up Butternut

A motion by Sen. Jauch to allocate $30,000 in 2007-08 to provide a grant to the Butternut School District to study consolidation with Glidden and Park Falls school districts passes 13-3.

More free-standing motions:
A motion by Sen. Olsen to provide $250,000 in one-time funding in 2008-09 for grants for district consolidation feasibility studies was approved 16-0. The motion prohibits DPI from encumbering any funds from the appropriation until after June 30, 2009.

A motion from Sen. Decker to allow school district's to use up to 25 percent of their library aids for library-related computers and software passed 15-1, with Rep. Meyer voting against.

Labels: Categorical_Aids, DPI

MPS Driver Ed Grants Denied

The committee voted 14-2 to reject the governor's recommendation to provide $100,000 for a program to award $150 to low-income MPS students completing driver education.
(Budget paper 645) Milwaukee Dems Colon and Taylor voted to keep the item in the budget.

Labels: DPI, MPS

Student Transportation Aid Rates Increased

Rep. Rhoades moves alternative B1 on budget paper 639. The committee rejects that motion 8-8.

The governor's plan ot increase the annual reimbursement rate from $180 to $220 for students transported more than 12 miles beginning this fall is adopted. The raise is expected to cost $900,000 annually.

The governor's recommendation on school breakfast is adopted on budget paper 640, and on papers 641, and 642.

Labels: Categorical_Aids, DPI

SAGE Expansion Adopted

Governor's recommendation on budget paper 637 regarding SAGE program expansion is adopted.

On paper 638, the committee adopted the governor's recommendation to provide $15 million over the biennium in grants to MPS to improve pupil academic achievement.

Labels: DPI, MPS

Omnibus Stalled

Fails 8-8, with GOP voting for, Dems against.

Omnibus Motion

Rep. Rhoades has introduced an omnibus motion dealing with papers 628, 637, 639 640, 641, 642, 643, 644 and 645.

Among the proposals in the 11-point motion is a pay-for-performance pilot program that would provide $2.5 million GPR annually beginning in 2007-08. Educators would be eligible for a $1,000 merit pay grant based on student academic performance and achievement.

Also in the motion is $2.5 million GPR annually to reimburse school districts for school safety expenditures. Costs eligible include the acquisition and installation of metal detectors, electronic locks or surveillance cameras, and the development and implementation of school security plans.

Another provision of the motion would provide $2.5 million annually above the base level funding of $27.2 million for student transportation. The provision includes adoption of the governor's proposal to increase the reimbursement rate for students transported more than 12 miles from $180 to $220 beginning this school year.

In addition, the omnibus includes cutting the increase in the reimbursement rate for the school breakfast program from 15-cents to 10-cents per school breakfast served, and deleting the provision to increase funding for bilingual-bicultural education aid. Plus, the proposal includes a $3 million cut from the governor's proposal for four-year-old kindergarten, deleting $500,000 for grants for world languages instruction, cutting $109,500 in annual funding to promote science, technology, engineering and math education, and deleting a provision for $100,000 SEG funding in 2008-09 for a new program to provide $150 per low income pupil successfully completing a driver education course in MPS.

SAGE Passed with Governor's Levels

The SAGE funding package recommended by the governor in budget paper 636 was adopted by the JFC.

SAGE Audit Requirement Rejected

On an 8-8 vote, with Dems voting against and GOP members in favor. Next is a motion from Rhoades to allow participating school districts to forego aid for any schol, for grade 2, grade 3, or both, and to elect not to reduce class sizes in those gradesw, beginning next school year.

UPDATE - Motion fails 8-8.

Labels: DPI, SAGE

SAGE

Gov. Doyle recommended providing $10.3 million annually above base funding of $98.5 million for SAGE, oulined in budget paper 636.

Dems on the committee have moved alternative A2, which would increase funding by $3 million over Doyle's proposal.

UPDATE - A party-line 8-8 vote rejects alternative A2.

Now, the committee moves on to a motion by Rep. Rhoades to require the Legislative Audit Bureau to conduct an audit of the SAGE program.

Labels: DPI, SAGE

Categorical Aids

The committee has moved on to Categorical Aids for Public Instruction. The governor's recommendation in budget paper 635 is adopted with no other motions coming forward.

Labels: Categorical_Aids, DPI

Return to Sender

A motion currently under debate, authored by Reps. Rhoades and Suder, would reduce the membership fraction used for a sender district for pupils transferred under the inter-district transfer program from .75 to .65 in 2007-08, to .55 in 08-09, and by .1 percent each year through 2013-14. Under the motion, beginning in 2014-15, sender districts would not be able to count transferred pupils in membership for revenue limit or general school aid purposes.

In 2006-07, Milwaukee Public Schools transferred 2,861 students to suburban districts, while 396 students transferred from the 'burbs to MPS, according to the Legislative Fiscal Bureau.

Suder said the motion is in response to an "archaic" federal mandate that has now expired, though the costs persist. "This program is no longer tolerable to any out-state taxpayer," he said. "It's a nice perk for Milwaukee."

UPDATE - The motion is rejected 7-9, with Sen. Darling siding with Dems.

Labels: MPS

MPS Residency Motion Fails

The debate continues on the residency requirement for MPS teachers. Sen. Lena Taylor, D-Milwaukee, said there were some members of the state Legislature who have not followed their residency requirement, alluding to a former Assembly Speaker. Taylor also, for the second time today, brought up President Bush as an example of wrong-thinking on an issue.

Sen. Mark Miller, D-Monona, said the motion doesn't belong in the budget, and is more appropriately dealt with by the local school board.

Rep. Scott Suder, R-Abbottsford, said both his parents were educators, and if the school district of Athens had such a requirement, his family would have had to choose between their dairy farm and his mother's job. "My parent's were both good teachers," he said. "Sometimes wrong politically, though."

The motion failed 7-9, with Sen. Olsen voting with the eight committee Dems.

After the vote, Sen. Decker gently advised the committee to limit debate. "We're going to be here 'til midnight if we keep debating these motions where we know how the votes are going to go," he said.

Labels: MPS

Colon: Good Pay Attracts Good Teachers

Rep. Colon blasted the motion to remove the residency requirement, saying the way to ensure quality teachers for MPS is to pay them.

He said the issue boils down to the suburbs around Milwaukee having lower property values than the city, and some teachers wish to remove the requirement so than can take advantage of that. But if pay were raised, he said, the teachers would wish to stay in Milwaukee to buy a home.

He also accused the Legislature of fouling MPS with its meddling. "Why is it everything that happens in Milwaukee educationally is constantly undermined by this Legislature?" he asked.

Labels: Colon

MPS Teachers - Livin' for the City?

Reps. Rhoades and Kestell and Sen. Darling have proposed a motion to remove the City of Milwaukee residency requirement for Milwaukee Public Schools teachers beginning with the 2009-10 school year.

Darling said that removing the requirement will make the positions more attractive to a larger number of teaching candidates. She said it's a critical issue for teachers, "because they don't have freedom, and this rubs them the wrong way."

Milwaukee is one of two cities that has such a requirement, Darling said.

Labels: MPS

70% Amendment Debated

The Rhoades-Vos motion that would 70 percent of school district total operating expenditures be directed at instructional activities begining in 2010-11 is now on the floor.

Vos said the proposal has received bipartisan support in other states, and said it eliminates waste and ensures funding isn't spent on "other areas that don't have the same instructional impact."

Sen. Lehman said determining classroom impact isn't always easy, and said the motion shows that Republican members of the JFC are trying to overrule local school boards.

UPDATE - Motion is rejected 7-9, with Sen. Olsen voting with the eight committee Democrats.

Labels: General_School_Aids, Revenue_Limits, Rhoades, Vos

Olsen Motion Discussion Continues

The committee is back, and the debate continues over Sen. Olsen's motion to have DPI reimburse state colleges for the cost of remedial classes for Wisconsin high school graduates who weren't properly educated by the school system.

Rep. Jeff Stone, R-Greendale, said the proposal makes perfect sense in light of the governor's Wisconsin Covenant proposal, which guarantees a spot to students in a UW System school if they meet certain academic and behavior requirements.

Sen. Jauch notes that the motion doesn't contain language about charter schools and how they would be treated under the proposal.

UPDATE - The motion fails on an 8-8, party-line vote with GOP members voting for, and Dem members against.

You Deserve a Break

The committee is breaking until 1:30 p.m., to allow Sen. Hansen to attend the Senate Org committee.

We'll pick back up with the debate of Sen. Olsen's "Chargeback of Costs of Remedial Courses" motion after the break.

Yes, But Can Crean Dissect the Transpo Budget

Sen. Decker remarked that he recently met Marquette University basketball coach Tom Crean, and he was struck by how much he looked like Rep. Pedro Colon, D-Milwaukee.

Colon responded that he's heard that before, but said the similarities end with resemblance. "I don't make anywhere near what Tom Crean makes, and I don't win nearly as much," he said.

Labels: Colon

Olsen: Put Money Where Mouth Is

DPI reimburse state colleges for the cost of remedial classes for Wisconsin high school graduates who weren't properly educated by the school system, Sen. Olsen says.

Olsen has introduced a motion that would first apply this provision to students admitted to college in 2011-12.

Olsen said adopting the motion would be a sure sign that Wisconsin is putting its "money where it's mouth is" and dedicated to providing a quality education.

Sen. John Lehman, D-Racine, has said the proposal "doesn't make any sense" because it lacks a definition of remediation, and the K-12 system would be set up to be a victim of the colleges definitions of remediation.

Rep. Vos said the Olsen motion is a "fantastic idea," and said he has talked to chancellors who have voiced concerns about the increasing number of students who are arriving who are ill-prepared to learn.

"Why not have a guarantee that a diploma in Wisconsin actually means something," Vos said.

Labels: DPI, Olsen

Motion on School Safety

Co-chair Sen. Decker has moved to delete the governor's recommendation on school safety adjustment revenue limits, and instead provide a revenue limit increase beginning in 2007-08 equal to $100 per pupil or $40,000, whichever is greater, to purchase school safety equipment or fund security officers. (Budget paper 628)

UPDATE - The Decker motion failed 8-8 on a party-line vote. A GOP motion to adopt alternative B3 from the budget paper also failed 8-8.

Rhoades, Vos Want School Spending Guaranteed for Instruction

It hasn't come to the floor yet, but co-chair Rep. Rhoades and Rep. Vos have drafted a motion to require 70 percent of school district total operating expenditures be directed at instructional activities begining in 2010-11.

Labels: General_School_Aids, Revenue_Limits, Rhoades, Vos

Declining Enrollment Provision Adopted

Governor's position is adopted on budget paper 626, and on 627 regarding low revenue ceilings for school districts.

Labels: DPI, General_School_Aids, Revenue_Limits

School Aids Vote

After a lot of rhetoric, the motion from Republicans failed 6-10, with GOP Sens. Luther Olsen, R-Ripon, and Alberta Darling, R-River Hills, voting with Democrats. No other motions were forthcoming, and the governor's position was adopted.

Labels: DPI, General_School_Aids

That Dreamboat Grover Norquist

Rep. Mark Pocan, D-Madison, mocked the Republicans' budget cutting proposals, saying their "rhetoric on taxes" and "zeal to reduce government" is at odds with the priorities of the people of the state.

"You're like a teenage girl who sees Brad Pitt, but in your case it's when you see Grover Norquist," Pocan said.

The reality of the Republican proposal is it will lead to school closings and consolidation, larger class sizes, and program cuts, he said.

"This is a cut in education no matter what way you try to paint it," Pocan said.

Labels: DPI, General_School_Aids, Pocan

Star Wars References Continue

Rep. Robin Vos, R-Racine, said with Jauch's speech, the word of the day should be "hyperbole."

He said the Republican proposal would result in no reduction in state funding, would spend more on K-12 than the last budget, and would save taxpayers $285 million in property tax increases.

"To me, this is the Obi-Wan Kenobi of version for taxpayers," answering Jauch's claim that it is the "Darth Vader approach."

Labels: DPI, General_School_Aids, Vos

Kestell Cools It Out

Rep. Steve Kestell, R-Elkhorn Lake, provided a calm counterpoint to Sen. Jauch, who ended by saying the Republican proposal "is not only reckless, it's immoral."

Kestell said Jauch was "a hard act to follow." Budgets are about priorities, he said, and while education would be at the top of his list, the governor has put forward a budget where "everything is a priority."

"We need to have a very serious conversation about education funding in Wisconsin," Kestell said, noting that Wisconsin spends $2,000 more per student than comparable states. "At this rate, there is no way we'll be able to keep up."

Labels: DPI, General_School_Aids, Kestell

The Darth Vader Approach

Sen. Bob Jauch, D-Poplar, excoriated the Republican motion to limit the per pupil adjustment to $100, calling it a "Darth Vader approach to children."

"I have a hard time understanding the Republican compulsion to take a meat axe to the children of this state," Jauch fumed.

Labels: DPI, General_School_Aids, Jauch

JFC Gets Started

The committee gets right into it, with Republicans moving alternative 7 on paper 625. The motion, if adopted, would reduce the per pupil adjustment to $100, which would result in an estimated state support of 65.7 percent in 2007-08, and 66.2 percent in 2008-09, but would reduce school district resources by an estimated $94.6 million in 07-08 and $195.3 million in 08-09.

Co-chair Rep. Kitty Rhoades, R-Hudson, said the motion is a "reality check, this is how much we can afford on the resources we have."

Co-chair Sen. Russ Decker, D-Weston, said the proposal would be like "putting a gun to the head of public education and to students," and force school systems to cut programs, raise property taxes, or go to referendum to make up the funding loss.

Labels: DPI, General_School_Aids

Dems starting to gather

We may be a few minutes away from starting. Democratic members are beginning to enter the meeting room, and most of their stafers are already hear.

UPDATE - It's just been announced that the meeting will begin at 11 o'clock.

Delay

The start of today's Joint Finance Committee session is delayed as committee Dems are meeting to finalize their strategy.

You can see the budget papers for today here.

Or, while you wait you can peruse the LFB's 156-page memo on estimated tax credit distributions.

Thursday Budget Papers

The papers for Thursday's JFC executive committee session are available here.

Among the items on the agenda are shared revenues to local governments, and implementation of the Real ID Act under the Department of Transportation.

Labels: REAL ID, shared_revenue

Morgan responds to JFC chairs on Wisconsin Covenant

The full annual costs of Gov. Jim Doyle's Wisconsin Covenant program can't be calculated until the state knows how many students take advantage of the plan to attend college, according to a letter DOA Secretary Mike Morgan sent to the co-chairs of the Joint Finance Committee today.

Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, sent a letter to the Doyle Administration this month saying they needed more details about the plan before they could bring it to a vote before the budget committee they chair. That included potential costs for the program.

Morgan noted Doyle's 2007-09 budget includes a provision that would push financial aid for University of Wisconsin System, technical colleges and private college students to $191 million, an increase of 64 percent since he took office. Morgan wrote the increases in need-based financial aid have beeen 15 percent to 20 percent in each biennium since Doyle took office. Continuing increases of 20 percent a biennium would result in an increase of $38 million in 2009-11, $46 million in 2011-13 and $55 million in 2013-15.

"The annualized cost once the program is fully implemented will be determined by the number of students who are attending college," Morgan wrote. "Obviously, if more students are attending college, they require more financial aid."

Read the letter:
http://www.wispolitics.com/1006/JFC___WI_Covenant_5_11_07_1_.pdf

-By JR Ross

Streamlined Sales Tax Could Net $4.8 Million, LFB Says

The streamlined sales and use tax provisions in Gov. Jim Doyle's budget would boost state sales tax collections $4.8 million over the 2007-09 budget with county and stadium and exposition districts seeing additional revenue as well, according to a report released today.

The Legislative Fiscal Bureau estimates taxpayers will send an additional $400,000 to each county and stadium district and exposition districts over the biennium.

The report notes the long-term impact could be "significant additional increases in sales and use tax collects for remote sales in future years" if retailers voluntarily agree to collect and remit use taxes or if Congress passes legislation allowing states to require out-of-state retailers to collect and turn over the tax.

See the memo here.

DPI On Deck for JFC

General school aids and revenue limits, categorical aids, choice and charter school funding, and shared revenue are on Tuesday's agenda for the Joint Finance Committee.

Take a peek at the budget papers here.

Committee adjourns after passing several motions

The Joint Committee on Finance adjourned for the day and is scheduled to meet next Tuesday.

Before adjournment, the committee passed a motion from Rep. Meyer deleting funding for chronic wasting disease in a 15-1 vote. Specifically the motion, an amendment to budget paper 562, makes $400,000 for CWD one-time funding, and deletes more than $1 million annually from wildilife damage funding.

Further, the motion prohibits the DNR from using fish and wildlife SEG funding to replace the funding, and directs the DNR to submit a plan to the JFC by Jan. 1 that includes measures to address the structural deficit in the wildlife damage programs in 2008-09.

JFC also passed a motion that would move the catch and release opening fishing date for muskellunge north of U.S. Highway 10 to the regular start of the game-fishing season (13-3).

In the final vote of the meeting today, the Committee unanimously voted to have DNR have a study to recommend ways to substantially reduce the seagull population in Wisconsin.

"These are the worst birds ever to congregate in any civilization. They're absolutely filthy," motion author Rep. Pedro Colon said, adding they're polluting beaches on the Lake Michigan coast.

"They are flying rodents," Kestell said.

Boat Registration Fee Increases Adopted

After a Republican motion to delete the increases failed 8-8. See the schedule of increases in budget paper 568.

Labels: DNR

Elk Hunting Fee Increase Shot Down

The committee moves swiftly through DNR papers. Among their actions, the committee bucks the governor's recommendation to increase the resident elk hunting license from $49 to $75, and the fee for a non-resident from $251 to $400. (budget paper 566)

The committee shot it down on a 16-0 vote.

Which all begs the question: There are elk in Wisconsin?

Labels: DNR

Environmental Repair Tipping Fee Increased

The governor's proposal to increase the environmental repair solid waste tipping fee imposed on high-volume industrial waste by 35-cents, from 50- to 85-cents per ton, was approved by default. (Budget paper 596)

A Republican motion to delete the increase failed 8-8 on a party-line vote. A motion by the Dems to increase the fee by 44-cents, which would balance the account according to LFB, suffered the same fate, though the sides were flipped.

With the governor's proposal adopted, the fee increase is expected to generate an additional $5 million over the biennium.

Labels: DNR

Vehicle Environmental Impact Fee Extended

The $9 vehicle environmental impact fee which was to sunset at the end of this year has been extended through 2009 by the committee. The fee is expected to generate $19 million over the biennium. (Budget paper 595)

Gov. Doyle had proposed eliminating the sunset date and making the fee permanent.

The vote to extend the fee through 2009 was unanimous.

Labels: DNR

Renewable Energy Grant Program Out of Budget

After rejecting a second motion by Jauch on party lines, Decker moves alternative 1 on paper 210.

It is also rejected. With that, the governor's proposal for funding renewable energy grants and loans is removed from the budget.

Labels: renewable_energy_grant_and_loan_program, Wisconsin_Development_Fund

Renewable Energy Grant Program

Now on the table is the creation of a renewable energy grant and loan program under the Wisconsin Development Fund to promote the development of new technologies. (budget paper 210)

The proposal would provide about $15 million in SEG funding per year for grants and loans, and create a position to administer the program.

The committee is working off base, not the governor's bill, on this particular budget paper.

Sen. Bob Jauch, D-Poplar, and co-chair Sen. Russ Decker, D-Weston, have proposed a motion to adopt Doyle's recommendation. But the motion would also delete the requirement that a grant of up to $5 million be awarded for a cellulosic ethanol plant. Instead, the senators want to require that a grant of up to $5 million be awarded for the first pulp and paper mill to be free of natural gas and coal usage.

Jauch said the Flambeau River Paper Mill in Park Falls is looking into ways to stop using natural gas at the plant. The plant is operated by Butch Johnson, a prominent Republican.

The motion fails on an 8-8 vote, with Dems voting for and GOP members against.

Labels: renewable_energy_grant_and_loan_program, Wisconsin_Development Fund

Clean Sweep Funds Increased

Republicans on the committee failed in an attempt to keep state funding for the Clean Sweep funding at the current level of $710,400 annually.(Budget paper 144)

Gov. Doyle proposed increasing annual SEG fund appropriations to the recycling fund for the Clean Sweep program by $289,600, for total funding of $1 million.

A motion to keep funding at current levels died the way so many have before it in this session, on an 8-8 party line vote.

Labels: Clean_Sweep_Program

Another Tipping Fee Motion

Sen. Lena Taylor, D-Milwaukee, proposed a motion to increase the tipping fee by $3, but to reduce the transfer from the recycling fund to the general fund by $6.9 million in 2007-08.

This motion met the same fate as the others, failing on an 8-8 party line vote.

No other motions being offered, the governor's proposal prevails, and the $3 tipping fee increase and transfer to the general fund is in.

Labels: tipping_fee

Miller-Pocan Motion Fails

The vote is 8-8, along party lines.

The committee is now taking up a motion by Rep. Pedro Colon, R-Milwaukee, to raise the tipping fee by $3, but to transfer just $7.6 million over the biennium to the general fund. Colon's motion also increases the DNR municipal and county recylcling grant appropriation by $29 million over the biennium.

The Colon motion also failed on an 8-8 party-line vote.

Labels: Colon, tipping_fee

Attempt to Block Tipping Fee Increase Fails

A motion by Republicans to eliminate the tipping fee increase failed on a party-line 8-8 vote.

The committee is now taking up the Miller-Pocan motion detailed in the previous post.

Labels: tipping_fee

Miller: Increase Is Appropriate

Sen. Mark Miller, D-Monona, said the current tipping fee is inadequate and below what other states charge. He said increasing the fee will make landfills last longer by discouraging out-of-state dumping, and the increased funds will be used to not only pursue an "aggressive" recycling program, but will also advance renewable energy studies.

Miller and Rep. Mark Pocan, D-Madison, have introduced a motion to, in addition to adopting the governor's recommendation, increase the recycling tipping fee by an additional $4 per ton, generating an additional $35 million over the biennium. They also propose to increase the DNR municipal and county recycling grant appropriation by about $33 million.

The motion also directs the DNR to submit a report by the end of the year to the JFC and legislative committees that includes recommendations for revising the formula for distribution of municipal and county recycling grants.

Pocan said the state is becoming known as the Wal-Mart of garbage dumping - "Always low prices on your garbage."

"Do we want Wisconsin to be known ... as the garbage dump of the Midwest," Pocan said.

Rep. Meyer said any argument that raising the tipping fee will discourage out-of-staters from bringing garbage here is "completely untrue."

Labels: tipping_fee

JFC Begins

We're underway here in the JFC. The day starts with budget paper 601
on the recycling and tipping fee increase and transfer from the recycling fund to the general fund.

Gov. Doyle has proposed increasing the tipping fee from $3 to $6 per ton. The fee is estimated to generate $18 million in 2007-08, and $24 million in 2008-09. Doyle has also proposed transferring $13 million in 2007-08 and $20 million in 2008-09 from the recylcing fund to the general fund.

Rep. Dan Meyer, R-Eagle River, is opposed to the increases, saying his local landfill operators and garbage haulers are opposed, and the increase will hurt their business. He also said the transfer takes the money collected and puts it toward unrelated expenses.

"Over the years quite frankly, this has become nothing but a slush fund," Meyer said.

Labels: tipping_fee

Start Delayed

The start of today's Joint Finance Committee meeting will be delayed until approximately 10:30 a.m. Six members of the committee, including co-chairs Sen. Russ Decker and Rep. Kitty Rhoades, are tied up in a Legislative Council meeting.

Meanwhile, agenda for next Tuesday's meeting has been released. Here are the agencies that'll be under the microscope:

Department of Public Instruction -- General School Aids and Revenue Limits

Department of Public Instruction -- Categorical Aids

Department of Public Instruction -- Choice and Charter

Shared Revenue and Tax Relief -- Property Tax Credits

Labels: DPI, Shared Revenue

Cable Bill Awaits JFC Action

The Assembly passage of the cable competition bill last night has eyes turned to the Joint Finance Committee, where the Senate version of the bill that would open up the cable TV market is waiting for a vote.

Some Joint Finance Committee members say they aren't driven to take up the cable competition bill until they finish their deliberations on the 2007-09 budget bill.

"I would hope not," said Rep. Mark Pocan, D-Madison. "I don't want to give up a day of working on the budget for that."

The Senate bill was referred two weeks ago. Sen. Russ Decker, the co-chair of the committee, is non-committal on whether the bill would come to the committee before it finishes budget talks.

"Could be," he said when asked if the bill will be taken up before the JFC completes its budget talks. "We're looking at the fiscal notes. There are people talking to us that want it, and some people who have concerns."

Dem Sen. Bob Jauch of Poplar said he hasn't given the bill much thought with the budget negotiations in progress. He said eventually it will be brought up and will likely pass the Legislature.

"Russ didn't bring it here to bury it," he said.

But, Jauch added, "I wouldn't think we should break up the budget so we can bring it up."

Rep. Steve Kestell, R-Elkhorn Lake, also said it wasn't an urgent matter.

"I haven't heard any reason to (bring it up before the JFC completes the budget)," he said. "I would be happy to listen to both sides, but I don't see any reason to rush it."

Labels: cable_competition_bill

Rental Car Fee Increase Debate Heating Up

Expectations are rising that a motion will be introduced in the Joint Finance Committee to fund the proposed Kenosha-Racine-Milwaukee commuter rail line.

Sources expect an amendment to the 2007-09 budget that would include a proposed $13 increase in car rental fees for Milwaukee, Racine and Kenosha counties. A vote is expected later this month when the committee takes up the transportation section of the bill. The KRM project would run on existing rail along a 33-mile corridor between southeastern Wisconsin cities, from Kenosha to Milwaukee.

JFC member Sen. John Lehman, D-Racine, said today he'd be willing to propose the motion.

"I'm not sure who's going to bring the motion, but I could," Lehman said.

The Wisconsin Car Rental is slamming the RTI-approved fee hike, calling it a 650 percent tax increase, and said it would have a negative impact on tourism.

"I can't imagine a worse first impression on visitors than a tax rate higher than any state in the Union," said WICRA Board Member Dan Ewald in a press release.

See the release here.

Rep. Robin Vos, R-Racine, said he wouldn't support a motion to increase the tax unless it included a referendum.

Vos said he is hoping to put a referendum on commuter rail on the presidential primary ballot in February. He called the June application deadline "artificially created" and said the grants are up for grabs each year.

"I cannot see us sneaking this into the budget in the middle of the night without public comment," he said. "I think we have to have an open, honest public debate."

Lehman said his district -- which includes Vos' Assembly seat -- stands to benefit greatly from the proposed commuter rail line, and said he hopes Vos reconsiders his opposition.

"He's not hearing the same kind of voices I'm hearing from," he said. Lehman said the rail line has tremendous support from the business community and citizens.

"You can ask for a referendum on anything, but we have a representative government, and sometimes it's up to the representatives to make these decisions," he said.

Vos doubts the rental fee increase will get support from Republicans on the JFC, who have taken a strict no new taxes stance.

"I can't speak for anybody else, but I find it hard to believe with the position we're taking -- that the people of Wisconsin are over-burdened by taxes -- we would say, 'Except just in this one case,'" he said.

Labels: KRM Line, Lehman, Vos

See You Thursday

The committee is adjourned. Click here to see the budget papers for Thursday's meeting, which begins at 10 a.m.

B&G Club Motion Fails; Regional Differences Flare

The motion to rovide an aditional $500,000 over the biennium to the Boys and Girls Clubs of Greater Milwaukee (alternative 2a in budget paper 884) failed on a 6-10 vote.

Casting votes for the motion were Sens. Taylor, Darling and Miller, and Reps. Colon, Pocan and Stone.

Taylor next proposed alternative 2b, which would provide $1 million GPR over the biennium for the youth summer jobs program in Milwaukee.

Sen. Darling reminded committee membes that their constituents travel to Milwaukee for events like Brewers games and Summerfest.

"It's not just for Milwaukee, it's to make Milwaukee less volatile," she said.

Co-chair Sen. Decker bristled at the suggestion, slamming the Milwaukee legislators "pious speech" about helping Milwaukee when some of them voted against a motion on April 26 to fund a program for at-risk youth in northwestern Wisconsin.

"That is not something I really like to hear that much," said Decker of the pleas for Milwaukee dollars. "Those kids who could have gone to Crex Meadows - you weren't there for them."

Rep. Colon said there is an agenda to "destroy" Milwaukee.

"They want to make it the villain in the state and won't be content until everybody leaves and we make it St. Louis," he said.

The motion failed 6-10, with the same split as before.

Labels: Boys_and_Girls_Club, Summer_Jobs_Program

Taylor Fights for More Funding for Milwaukee Boys and Girls Club

Sen. Lena Taylor, D-Milwaukee, said there is a "crisis" situation in Milwaukee, and asked add an additional $500,000 in GPR to the budget bill to provide a job training program at the Boys and Girls Clubs of Greater Milwaukee.

"If we're not doing this now through these types of programs, we're doing it for Corrections," she said.

GOP Reps. Robin Vos and Scott Suder said the money should be dispersed to Boys and Girls Club programs throughout the state. "There is life outside Milwaukee," Suder said.

Dem Rep. Mark Pocan also appeared to oppose the modification, asking why kids in Milwaukee should be preferred over kids on Allied Drive in Dane County.

GOP Sen. Alberta Darling of River Hills said Milwaukee is "fragile," and the funding would go a long way in bringing about more peaceful summer in the city.

Labels: Boys_and_Girls_Club

Co-chairs Propose Vital Records Compromise

The committee co-chairs, Sen. Decker and Rep. Rhoades, have introduced an omnibus motion to combine budget papers 410, 411 and 425 regarding vital records fees. The committee is starting from base on these papers, not the governor's budget.

On paper 410, the recommend adoption of alternative D, which would maintain current law with respect to vital records fees, reducing estimated program revenue to the state by more than $8 million in 2007-08 and $8.5 million in 2008-09.

On paper 411, the chairs move to delete the governor's recommendation to fund the vital records system automation project with revenue from vital records fee increases. Instead, the motion would provide $3.4 million in the first year of the biennium and $4.5 milion in the second to partially fund the automation of the ystem.

On paper 425, the motion would adopt alternative 3, which would delete the governor's funding increases in domestic abuse grants with revenue from vital records. The money will be made up by the mix of an increase the domestic abuse surcharge from $75 to $100 for convictions on or after Jan. 1, 2008 to increase, and by GPR funds.

Rep. Colon made a motion to adopt alternative A4 to budget paper 411. Colon and Pocan say the omnibus motion implements a number of federal REAL ID provisions, which they oppose. (See discussion point 12 of paper 411)

Pocan said the motion is providing him "a false choice," and that it will force him to vote against funding for domestic violence. He said REAL ID is an unfunded mandate from the feds, and has been rejected by a number of states. The program is a mistake from the Bush Administration, he said.

"We're going to fund every mistake he makes," Pocan said. "My god - I don't think we have enough money for that."

Sen. Miller also took the opportunity to bash the Bush Administration, saying they used Sept. 11 "to frighten people and their representatives" into eroding civil liberties.

The motion failed 3-13.

The omnibus motion then passed 14-2.

Labels: REAL ID, Vital Records Fees

Taylor-Kestell Motion Passes

The motion from Rep. Kestell and Sen. Taylor regarding the DCF passed 11-5. GOP Sens. Olsen and Darling voted with Kestell and the Democrats to approve the motion.

Taylor next introduced a motion to change the name of the agency to "Department of Children and Family Resources."

The motion failed 3-13.

Labels: Department_of_Children_and_Families

Roomful of Fitzgeralds

As the committee continues to debate the Taylor-Kestell motion, Senate Majority Leader Scott Fitzgerald, R-Juneau, is in the chamber, talking with Sen. Luther Olsen, R-Ripon. His brother, Rep. Jeff Fitzgerald, R-Horicon, the majority leader in the Assembly, is in the back of the room, speaking with Rep. Vos.

Raising his hand, Rep. Pedro Colon, D-Milwaukee, is called on by the chair.

"I just have a question," he said. "How many Fitzgeralds are allowed to be lobbying the Finance Committee at once?"

Labels: Colon, Rep. Fitzgerald, Sen. Fitzgerald

JFC Back

Lunch break is over, and the committee is back in session. First off, they are considering motions to budget paper 200, which creates the Department of Children and Families.

There is a bipartisan motion on the floor by Sen. Taylor and Rep. Kestell that has three proposals:

- to specify that the purpose of DCF is to focus on integration of services and increase collaboration and efficiency.

- to specify that the merger of programs in DCF does not alter the missions of W-2 and child welfare services.

- to specify that the Joint Legislative Council Committee on Strengthening Wisconsin's Families will act in an advisory role during the development and implementation of the plan to create DCF and in the ongoing administration of programs administered by DCF.

Kestell said the motion helps to alleviate concerns Republican members had about how the creation of DCF impacts W-2. Co-chair Rep. Rhoades said she doesn't believe this is the time or the place for such a motion.

Labels: Department_of_Children_and_Families, Kestell, Taylor

Committee Splits on Dept. of Children and Families Proposal

The GOP motion to halt the creation of the Department of Children and Families was defeated on an 8-8 party vote. Doyle's recommendation remains in the budget.

The committee is on break until 1:30 p.m.

Labels: Department_of_Children_and_Families

Jauch: Take Up Education Budget Next

While he was arguing in favor of the governor's proposal to create a new Department of Children and Families, Sen. Jauch, D-Poplar, said he was glad the committee is taking up issues now that affect families, rather than waiting until the end of the budget process.

He said the education budget should be next on the agenda, and the Department of Corrections should be last.

"I'm waiting for the day when we take kids over criminals," he said.

"If we run out of money, let's run out of money then (Corrections budget)," Jauch said.

Labels: Corrections, Education budget, Jauch

Creation of Dept. of Children and Families Before Committee

Gov. Jim Doyle's proposal to create a new Department of Children and Families is being debated by the committee. (Budget paper 200)

Rep. Steve Kestell, R-Elkhart Lake, said the proposal is one of the most important the JFC will take up in this budget. "And it could be something we regret," he said.

Kestell said there isn't enough definition in Doyle's proposal, and "that tends to make me nervous."

Republicans on the committee have made a motion to modify Doyle's recommendation to retain W-2 in the Department of Workforce Development, rather than transfer it to the new DCF. (Alternative 4 in the budget paper)

Rep. Suder said the proposal includes a "warm and fuzzy name," but no substance. He said the proposal was a "retreat from the mission of W-2."

Sen. Taylor, argued against alternative 4, saying the proposal is not a change in the mission of W-2, and will provide resources for family and reduce poverty.

Labels: Department_of_Children_and_Families

Child Support Papers Approved

The governor's recommendations for budget papers 905, 906, and 907, relating to the Department of Workforce Development's child support program, were approved by the committee.

Labels: Child Support, DWD

Major Disaster Assistance Funds Converted

On a 15-1 vote, the JFC approved a motion from Sen. Jauch to convert the Wisconsin Division of Emergency Management major disaster assistance, petroleum inspection fund SEG annual appropriation to a continuing appropriation, and to delete the entire $3 million annually in base expenditure authority. (Budget paper 525)

The motion reduces the estimated carryover of petroleum inspection funds in 2007-08 to $1 million in SEG.

The motion also does not provide position authority to the Department of Military Affairs to administer the program.

Rep. Robin Vos, R-Racine, was the lone member to vote against the motion.

Labels: Department of Military Affairs, Major Disaster Assistance program, petroleum inspection fund

Dem Motions Pass

Dem Sen. Bob Jauch of Poplar's motion to require DHFS to allocate at least $16,100 GPR annually to support the Council on Physical Disabilities was adopted 16-0.

A motion by Sen. Dave Hansen, D-Green Bay, Sen. Mark Miller, D-Monona, and Jauch to provide nearly $1.2 million GPR annually for DHFS to distribute to community action agencies to support the skills enhancement program failed on a party-line 10-6 vote. GOP Sens. Luther Olsen, of Ripon, Alberta Darling, of River Hills, joined Dems in voting for the expenditure.

The motion specifies that $750,000 annually would be to replace discontinued federal funding for the program, ad $420,000 would go to expand the program to areas of the state where it does not already operate.

The skills enhancement program provides transportation, childcare, career counseling, job placement assistance and financial support to individuals who are working at least 20 hours per week and whose income is less than 150 percent of the federal poverty level.

Labels: Council on Physical Disabilities, DHFS, Skill Enhancement Program

Bi-partisan Agreement to Delete License Fees for CBRFs and Adult Family Homes

The committee unanimously voted to delete a provision in the governor's budget to allow DHFS to establish biennial license fees for Adult Family Homes and Community-based Residential Facilities, including CBRF per resident fees.

DHFS was to submit the rules for implementation of the fees to Legislative Council staff by Nov. 1.

Budget paper 437

Labels: Adult Family Homes, CBRF, DHFS

SSI Payment Re-Estimate Not Adopted

A motion to increase funding for the state supplemental SSI payments by $423,000 over Gov. Jim Doyle's budget was defeated on a party-line vote.

Doyle had put $12.6 million into the budget for the program, but Decker said the additional funding outlined in alternative two of budget paper 435 reflects new estimates. His motion failed.

Labels: DHFS, SSI

Moving Swiftly

The committee is moving through the agenda with alacrity. A motion by Sen. Lena Taylor, D-Milwaukee, to require OSER to implement pay progression system for attorneys in the Office of State Public Defender through the 2007-09 collective bargaining process.

Rep. Scott Suder, R-Abbottsford, said the motion would be more appropriate for the full Legislature to take up.

The motion was rejected on a party-line 8-8 vote.

Labels: OSER, Public Defender, Suder, Taylor

Attempts to Scale Back OSER Funding Fail

GOP committee members attempted to scale down spending in the Office of State Employee Relations, but the attempts were blocked by Dems.

We Are Up and Running

Sen. Russ Decker, D-Weston, gets the action started promptly at 10 a.m.

They're keeping budget paper 525 open for motions, approve budget paper 526, and are moving on to OSER, budget papers 605 and 606.

WMC Blasts Doyle Budget in Radio Ad

Wisconsin Manufacturers & Commerce has begun a new radio ad criticizing Gov. Jim Doyle's budget, saying it would raise taxes on gasoline, hospitals, home sales and garbage.

The spot opens with a list of things to love about Wisconsin.

"But our taxes ... It's hard to love our taxes," the narrator says.

The spot says Doyle has proposed $1.7 billion in tax hikes in his budget, which the spot says would also allow property taxes to go up by $1.2 billion.

"Call 800-362-9472. Tell your legislator: Stop the tax hikes in SB 40. Aren't taxes are high enough already?" the narrator says.

The ad is running statewide for at least the next two weeks, said WMC spokesman Jim Pugh.

Listen to the ad here.

See the release here.

Labels: Ads, Taxes, WMC

Thursday Is DNR Day for JFC

Among the topics set for Thursday's Joint Finance executive session are the recycling tipping fee increase and transfer to the general fund.

See the agenda here.

Nass: End JFC Process Now

Rep. Steve Nass, R-Whitewater, says the first two weeks of the Joint Finance Committee process has been "horrible for taxpayers and fantastic for big spenders," and called on Assembly Speaker Mike Huebsch and JFC co-chair Rep. Kitty Rhoades to end it.

"The current process, negotiated between the Co-Chairs, clearly favors the Senate Democrats in preserving Governor Doyle's $1.7 billion in tax and fee increases," said Nass in a letter to Rhoades and Huebsch. "It's painfully obvious that Senate Democrats won't agree to any changes in tax and fee increases, but will accept changes to promote spending and buy friends through expanded government programs."

Nass says the JFC should be skipped and legislative conference committees should has out the budget differences.

Labels: Huebsch, Nass, Rhoades

Hydroelectric Vote Draws Heat

A motion adopted by the JFC yesterday to repeal the 60 megawatt limitation on resources that derive electricity from hydroelectric power forged in the Clean Energy Bill has draw sharp criticism.

Sen. Jeff Plale, D-South Milwaukee, the ranking Dem on last session's Senate Energy, Utilities and Information Technology Committee, blasted the move in a press release.

“When I heard the news about the vote today, I was baffled and angry; I could not understand why the members of this committee would not want to talk to people on the task force or members of the Committee that initially passed the bill,” said Plale.

The Wisconsin League of Conservation Voters said in a press release that the move undermines the Clean Energy Bill.

Labels: Hydroelectric Power, PSC, Renewable Energy

Committee Adjourned

Next meeting Tuesday at 10 a.m.

On the docket for Tuesday will be a proposed increased to vital records fees, DWD department-wide and DWD child support, the creation of the Department of Children and Families, OSER, the Department of Military Affairs, public defender funding, and funding for the disabled and elderly services in DHFS.

See Tuesday's budget papers here.

On budget paper 206, the committee adopted the governor's bill recommendations, with the second option for formula modifications. Budget paper 245 was adopted with the governor's recommendations.

On budget paper 220, the committee started from the base, and the program was kept at current law.

County Aid Fund Created

Now finished arguing over the RETF, the committee moves on to the paper which establishes the county aid fund proposed by the governor to collect the fee. (Budget paper 705)

Committee Republicans attempt to delete the provision, thereby continuing to recognize the RETF as a GPR. The motion fails - all together now - 8-8.

GOP Motion Defeated

The governor's proposal to double the real estate transfer fee remains in the budget.

The GOP motion to reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter failed on an 8-8 party line vote.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Decker Motion Fails

Sen. Decker's motion to modify the real estate transfer fee was rejected on an 8-8 vote along party lines.

The committee is now considering the GOP alternative to reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter. Under the proposal, the collections would be shared 60-40 among the state and the counties, and beginning in 2010-11 the counties would retain 100 percent of the fee.

Rep. Vos said the proposal is a "revenue upper" for counties. "If you care about providing additional revenues for counties, then the vote is yes," he said.

Decker said the proposal is "goofy," and the Republicans wouldn't propose it if they didn't know Democrats would defeat it on an 8-8 vote.

Decker was the second Democrat to invoke President Bush today, saying this motion from the Republicans is "what Bush and the Republicans in Congress did."

"You've gotta pay the bills - that's a fundamental responsibility of this Legislature and this committee," Decker said.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Sen. Fitzgerald Weighs In On Dem Votes

Senate Minority Leader Scott Fitzgerald, R-Juneau, weighed in on the votes taken today in the JFC on property taxes and the real estate transfer fee. Fitzgerald was co-chair of the JFC during negotiations of the 2005-07 budget:

"Today's votes let the people of Wisconsin know exactly where each party stands on our tax burden. The Joint Committee on Finance was faced with two important choices. The first was between raising property taxes by $1.2 billion or implementing a real freeze on local property taxes. The second was between doubling the Home Tax-a $140 million tax hike that makes it more expensive to buy or sell a home-or eliminating this proposed tax increase from the budget.

"On both these issues, the eight Republicans on the committee sided with the taxpayers. Unfortunately, all eight Democrats sided with their governor and bigger government and voted to raise taxes on Wisconsin families.

"Thanks to the actions of the eight Democrat members of the committee, it will be more expensive to buy a home, to sell a home and to own a home. Wisconsin has one of the worst tax burdens in the country and their actions today made it worse.

"I'm pleased that the eight Republican members of the committee stood united today on the side of the taxpayers. We will continue to stand strong and fight the $3 billion tax increase in the Democrats' budget, and will work to create a budget that is fiscally responsible and lowers the tax burden for Wisconsin's working families."

Labels: Fitzgerald

Deadlock on Transfer Fee

The committee votes 8-8, along party lines, on the proposal to delete the real estate transfer fee increase from the governor's budget.

Next, the committee takes up Sen. Decker's proposal to modify the governor's proposal by keeping transfers of properties of $200,000 or less at $3 per thousand, and raising the fee to $6 on properties exceeding $200,000. Under Decker's proposal, counties would continue to get 20 percent of fees collected at the $3 rate, and would get 10 percent on transfers at the $6 rate.

Meanwhile, committee Republicans are circulating a motion that would reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter.

Under the proposal, the collections would be shared 60-40 among the state and the counties, and beginning in 2010-11 the counties would retain 100 percent of the fee.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Debating Real Estate Transfer Fee

Sen. Decker said deleting the governor's provision would "blow a massive hole" in the entire budget.

Rep. Pocan, who believe it or not used to work for the Wisconsin Realtors Association, drew on his experience with the realty group to say that increasing the fee would not impact the affordability of the housing market.

The WRA is opposed to raising the fee, and is backing a group running television commercials against the "home tax."

Sen. Alberta Darling, R-River Hills, said she wouldn't support the fee increase, and she is alarmed by the amount of spending and new fees in the budget. She said the services the real estate transfer fee funds are core government services, and should be paid for by GPR.

"We should not look at the real estate market as a way to bail out the courts," she said.

Rep. Vos agreed, saying the real estate market is a "very unstable funding source," and collections over the years have fluctuated greatly.

Rep. Suder said the governor's proposal is giving property owners "nightmares" and would hit middle class and lower income families the hardest. "The tax, any way you cut it, is regressive," he said.

Rep. Colon said like the Republicans earlier proposal on levy limits, their idea to delete this fee increase "defies reality."

"People want the courts off their property taxes. This will pay for it," he said. "We need solutions. We have enough rhetoric ... you have to put a solution on the table."

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Real Estate Transfer Fee at the Plate

Now under consideration by the JFC is the controversial proposal by Gov. Doyle to double the real estate transfer fee from $3 to $6 per $1,000 of value transferred. (Budget paper 345)

Under the governor's proposal, the state would retain 90 percent of the collections, up from the current 80 percent, and county governments would receive 10 percent, down from the current 20 percent. The state's share of the fee would increase from $2.40 to $5.40 per $1,000 of value, while the county share would remain at 60-cents per $1,000 of value.

All collections of the RETF would be deposited in the segregated county aid fund (created under the bill), rather than the general fund. The county aid fund would be used to fund aid payments under shared revenue, county and municipal aid, circuit court support grants, and youth and family aids programs and a transfer to the affordable housing trust fund.

Republicans are looking to delete the provision.

Co-chair Sen. Decker has proposed in a motion to modify the governor's proposal by keeping transfers of properties of $200,000 or less at $3 per thousand, and raising the fee to $6 on properties exceeding $200,000.

Under Decker's proposal, counties would continue to get 20 percent of fees collected at the $3 rate, and would get 10 percent on transfers at the $6 rate.

Labels: Real_Estate_Transfer_Fee

Party-Lines Hold on Levy Limit Vote

To no one's surprise, Vos' proposal to change the levy limit ceiling to zero percent or the percentage change in equalized value due to new construction went down in an 8-8 party-line vote.

Word of the Day: Chimerical

Rep. Vos labeled the word of the day as chimerical earlier today, using it to describe a proposal he didn't appreciate from the Dems.

Rep. Mark Pocan, D-Madison, turned the tables in characterizing Vos' levy limit proposal.

Co-chair Rep. Kitty Rhoades, R-Hudson, told Pocan if he was going to use it, he had to define it. To which Pocan quickly ticked off the definition, "Created by or as if by a wildly fanciful imagination; highly improbable," and added, "Which is what this plan is."

It drew laughs all around including from Vos, who gave Pocan credit for having the best use of the word for the day. Then he got serious.

"You win points for the day," he said. "But it's not really about scoring points today, it's about representing the people at home."

Vos said his is a "very reasonable plan that puts taxpaers first," and said a no vote on the motion is an automatic $1.2 billion tax increase for state residents.

Labels: chimerical, Levy Limit

Be Like Bush?

Speaking on the levy limit proposal from Rep. Vos, Sen. Lena Taylor, D-Milwaukee recalled hearing similar proposals, and said the Republicans persistence reminds her of our President.

"Wow, you're just like Bush - you stay the course," she said.

Taylor said the previous proposals are what lead to the current split of legislative houses, saying Republicans are "out of office and out of jobs" because of the pursuit of zero levy growth.

"That's why we have chairman Decker and Senate Majority Leader Robson," she said.

Taylor said of the Vos proposal, "That's the kind of Bush-thinking we don't want in Wisconsin."

Labels: Levy Limit, Taylor

Starving Government

Rep. Robin Vos, R-Racine, has drawn up a motion that would cap the levy limit for counties and municipalities at zero percent or the percentage change in local governments' equalized value due to new construction.

Doyle's budget caps levies at 4 percent or new construction. Last budget, it was capped at 2 percent. (Budget paper 725)

Vos said the proposal should be bipartisan, that every candidate pledges to do something about property taxes. "When we make those statements, we should make a sincere and real effort to do it," Vos said.

Under Vos's proposal, the cap sunsets in three years. In Doyle's, it sunsets in two years.

Rep. Pedro Colon, D-Milwaukee, said Vos' proposal was voted on by the public in the last election. "It's what you ran on and a good chunk of people voted against you," said Colon. "I appreciate the fact that you think this is bipartisan ... but the idea of doing it in this manner was thoroughly discussed and thoroughly rejected."

Sen. John Lehman, D-Racine, said the proposal is like the "son of TABOR or the cousin of TABOR."

Lehman accused Vos of posturing. He said a proposal like this "is doing nothing else but trying to starve government."

Sen. Bob Jauch, D-Poplar, called the plan "a political witch's brew concocted in offices in Madison that defy common sense."

He said legislators have no idea of the costs of local governments throughout the state. "It is completely illogical to impose that economic absurdity on local governments that are meeting the needs of their citizens," he said.

Rep. Dan Meyer, R-Eagle River, said he gets calls from his constituents saying they can't afford to stay in their homes any longer because of their rising property taxes. Road conditions and police coverage take a backseat to having a roof overhead, he said.

"For some reason we're more concerned about starving government than we are about the people footing the bill," he said.

A former mayor, Meyer said he cut levies four years straight, and the town didn't fall apart. "I could live under these caps no problem," he said.

Labels: Colon, Lehman, Levy Limit, Shared Revenue, Vos

They're Back

Back from break, the committee takes up budget paper 725. Expect many motions.

Break Time

Perhaps to prepare for the battles ahead over shared revenue, the real estate transfer fee increase, and county aid funds, the committee is taking a break until 1:30 p.m.

Good Day for Cell Phones Continues

A motion to delay the sunset date for the requirement for wireless providers to apply a monthly surcharge to their customers to pay for the wireless 911 fund was defeated on a bipartisan 8-8 vote. The motion was authored by Sen. Miller.

The sunset date for the surcharge remains April 1, 2009.

Labels: PSC, Wireless 911 Fund

Hydro Limitation Lifted

The JFC has adopted a motion that would allow Wisconsin electric companies to purchase hydroelectric power from a Manitoba plant that is currently under construction.

The bipartisan motion, from Sen. Dave Hansen, D-Green Bay, and Rep. Dan Meyer, R-Eagle River, repeals the 60 megawatt limitation on resources that derive electricity from hydroelectric power. The limitation was imposed by renewable energy requirements adopted last year.

Sen. Miller opposes the motion, saying it contradicts the goals of the compromise arrived at last year by lawmakers and industry on renewable energy requirements. He said the motion is the product of "second guessing" by the industry. "Let's keep faith with that compromise," he said.

Hansen said the motion would permit the use of hydro by paper plants in his district, a major employer. And, he said, it will protect air quality.

The motion passed 11-5.

Labels: Hydroelectric Power, PSC, Renewable Energy

Telecomm USF Fee Cap Defeated

After his victory in exempting cell phone providers from the Universal Service Fee, Rep. Vos tried to give land-line telecommunications providers a break, moving to cap their contributions to the USF at $32,038,400 annually.

The cap is equal to the amount of all USF appropriations in the 2008-09 year.

The motion failed on an 8-8 party-line vote.

Cell Phone Providers Exempted

The motion to exempt cell phone providers from paying into the Universal Service Fund passed 10-6. Dem Sens. Decker and Hansen voted with the Republicans on the committee.

Labels: PSC, Universal Service Fund

Commission Debates Shielding Cell Phone Providers from Universal Service Fund

Sen. Hansen says the fund is stable and doesn't need to be extended to include revenue from cell phone providers.

Sen. Mark Miller, D-Monona, says the fund is essential to moving the state's educational and public institutions into the digital age, and said that cell phone companies should contribute to the fund.

Rep. Vos said of the motion, "This is a rare instance where we find bipartisan agreement on stopping the potential creation of a brand new tax." He said voting for the motion will send a message to the PSC that the 3.4 million cell phone users in the state "are safe from having an additional tax put on to their (cell phone) bill."

Cell Phone Provider Exemption Proposed

The JFC is now in the Public Service Commission section of today's program. A motion has been presented, authored by Sen. Dave Hansen, D-Green Bay, and Rep. Robin Vos, R-Racine, to exempt cell phone providers from the Universal Service Fund. (Relates to budget paper 670)

The motion reads:

"Move to repeal the current law provision that extends universal service fund provisions to commercial mobile radio service providers if the Public Service Commission promulgates rules that designate commercial mobile radio service providers as eligible to receive universal service funding under both the federal and state universal service fund programs."

According to LFB, currently cell phone providers are not subject to USF fees, but the PSC has an open docket and is considering adding them to the revenue stream.

Labels: Hansen, Universal Service Fund, Vos

Central Wisconsin Center Funding Reduced Due to Population Changes

With fewer residents at the Central Wisconsin Center for the Developmentally Disabled, funding has been re-estimated for the facility.

Under the recommendation of the LFB, the committee reduced program revenue funding for the facility was reduced by nearly $1.9 million over the biennium, and cut 24.2 positions.

Labels: Central Wisconsin Center, DHFS

New Sand Ridge Units Approved

The governor's proposal to provide funding by nearly $3.5 million for 91.5 positions at the Sand Ridge Secure Treatment Center was approved. (Budget paper 440)

Rep. Suder said the proposal keeps "the worst of the worst" sex offenders off the streets.

Labels: DHFS, Sand Ridge

Couty Fair Aids Get Lift

An additional $100,000 GPR for aids to county fairs was approved unanimously.

Rep. Scott Suder, R-Abbottsford, said fairs provide social, cultural and educational opportunities across the state, but said those opportunities are jeopardized by lack of funding.

Currently, the DATCP provides $250,000 GPR annually to provide fair aids up to 50 percent of junior premiums awarded, not to exceed $10,000 per fair, accoring to the LFB. Over the past few years, total reimbursement claims have averaged between $310,000 and $320,000.

Members heard about the funding shortage at their public hearing in Arlington.

Labels: County Fairs, DATCP

Funding for Crop Protection from Cranes Approved

A grant of $71,000 in each of the next two years from the agrichemical management fund to the International Crane Foundation was approved for the International Crane Foundation for costs associated with sandhill crane crop depredation. The motion passed 12-4.

Cranes cause millions of dollars in damage to crops every year, Sen. Luther Olsen said. The funding would pay for a solution that makes crops unpalatable to cranes.

Sen. Decker said in Marathon County they have a different solution to dealing with the protected birds. "I tell farmers you can shoot at them, but just don't hit them, and if you do hit them it's a bad shot."

JFC Blocks Doyle Position Moves

The committee voted unanimously to delete Gov. Doyle's request to transfer funding for three jobs in the Office of Privacy Protection from federal to program revenue. (Budget paper 142)

Ag Chem Cleanup Fees Reduced

On a unanimous vote, the JFC has reduced fees and license surcharges for the segregated agricultural chemical cleanup fund.

The commitee adopted alternative B1 in budget paper 140.

The fund receives revenues from feed, fertilizer and pesticide license and tonnage fees. The revenues are used for DATCP administration of feed, fertilizer and pesticide regulation programs and administration of agricultural chemical cleanup grants, according to the LFB.

Gov. Doyle has proposed transfering $350,000 over the biennium from the fund to DATCP's food regulation program account, and $250,000 over the biennium to the DATCP's animal health inspection, testing and enforcement program.

Labels: DATCP Ag Chem Cleanup

Precollege Funding Increased

Precollege scholarship funding is boosted by $217,800 by the committee, per the governor's recommendation. (Budget paper 664)

The increase is over the current base funding of $2,177,500 GPR.

Rep. Rhoades withdrew her motion to decrease the governor's proposal by $86,200.

Labels: DPI

Library Funding Increased

Public Libraries will receive a raise of nearly $500,000 over the biennium from contracts with the DPI to provide access to specialized library materials and services otherwise not available.

Doyle proposed an additional $257,300 in GPR in the first year of the budget and $220,300 in the second above the base level of $876,900. (Budget paper 662)

Sen. Decker said he hopes the panel supports the increase because libraries have been getting the short end of the budget stick in recent years.

Rep. Rhoades originally made a motion to delete the governor's proposed increase, but was convinced to drop her motion. The governor's proposal was adopted unanimously.

In addition, public libary aids were increased by $616,800 SEG in 2007-08 and $1,262,300 SEG in 2008-09 above current base level funding of $11,297,400 in GPR and $4,223,800 SEG. The segregated revenue is from the universal service fund. (Budget paper 661)

Labels: DPI, Libraries

Pleading for Heat

Co-chair Rep. Kitty Rhoades, R-Hudson, said she and co-chair Sen. Russ Decker, D-Weston, have been pleading with the Department of Administration to turn up the heat in the JFC chamber. Yesterday, committee member bundled up to fight the chill in the air.

"We told them we were going to boycott next week if they don't turn up the heat," said Rhoades. "My prediction is it'll be about 85 (degrees) in here by noon."

Despite the wintry air, the committee is in session. In deference to legislative committee meetings currently in progress, the JFC is skipping DATCP budget papers for now and starting with the Department of Public Instruction items on the agenda.

Labels: DATCP, DPI

WisEye in the House

Today's meeting should be underway in a few minutes. For the first time, WisconsinEye cameras, two to be exact, are in the chamber, ready to film today's proceedings. The air date is TBD.

Not So Hot?

A runaway air conditioner had committee members shivering in their seats today. Sen. Jauch asked the LFB to provide hats and mittens for the panel tomorrow.

Jauch pointed out that the cold air seems to blow harder when the committee votes against Gov. Doyle's proposals.

Sen. Taylor spent most of today's session bundled in a blanket, and other members were blowing in their hands for warmth.

The committee adjourned shortly before 2 p.m. Back tomorrow at 10 a.m.

WTCS Grant Funding Cut

The JFC cut $3 million in GPR from Wisconsin Technical College System grants for customized skills training, and also modified the governor's budget to ensure that half of the money in the grant program be directed at small businesses with less than 100 employees.

The motion, a compromise between Sen. Taylor, D-Milwauke, and Rep. Vos, R-Racine, passed 15-1, with Sen. John Lehman, D-Racine, voting against.

Despite the cut, $3 million remains in the budget for the grant program - $1 million in 2007-08, and $2 million in 2008-09. Annual base level funding for the program going into this budget is $1 million.

A Real Butt Burner

Currently, individuals who are negligent on child support requirements are ineligible for FoodShare. Gov. Doyle's proposal to repeal that provision has some Republicans heated. (Budget paper 408)

"If we don't delete it, this really burns my butt," said Rep. Suder.

Rep. Stone said the committee today has done more than get on a slippery slope to dismantling W-2, it is "on the black diamond run as far as W-2 is concerned."

Despite the warnings, the committee failed to delete the governor's proposal.

Labels: Suder Stone, W-2

FoodShare Particiaption Debated

Republicans on the committee have balked at Gov. Doyle's proposal to make participation in the FoodShare Employment and Training Program voluntary. Doyle has estimated making the program voluntary will save $709,000 in state GPR over the biennium, as well as the same amount in federal funds. (Budget paper 406)

Co-chair Rep. Rhoades and her GOP colleagues said making the program voluntary retreats from the state's mission with the W-2 program, and is "starting to go back to the traditional welfare program." Rhoades moved to delete the provision.

Rep. Robin Vos, R-Racine, said even though mandating participation in the FoodShare program may cost more, it ensures that those receiving benefits are actively looking for work "so people begin to get off the public dole."

The Dems prevailed as the vote deadlocked at 8-8, and the governor's proposal was adopted.

On the next vote, after an attempt by Republicans to delete the provision and by Democrats to modify it, the governor's proposal to move the FoodShares program from DWD to DHFS was approved by default. (Budget paper 407)

Labels: DHFS, FoodShare, Rhoades, Vos, W-2

Committee Reaches Agreement DVA Budget Adjustments

A five-page omnibus motion from all 16 committee members removes $6.5 million and 24.7 new positions from the Department of Veterans Affairs budget. About $500,000 of the funding cut was GPR, with the rest coming from program revenue and seg funds.

Even with the position reductions included in the motion, the DVA still has approval for about 22.5 new positions agency-wide.

Among the reductions is about $1.9 million in segregated funds from the Veterans Trust Fund for tuition remibursement appropriations was removed to reflect estimates of anticipated need.

Deleted from the budget is $35,000 for the study of a new veterans cemetery in the Fox Valley, and $75,000 for the development of a master plan for future DVA capital construction projects. In addition, $65,000 for the study of a veterans home in Superior was re-directed to study long-term health care needs of veterans in Douglas County.

The motion increases the agency's bonding authority for its primary mortgage loan program by an $35 million more than the governor's recommendation, raising the department's total borrowing authority for the program to $2,200,840,000.

Labels: DVA

Circus Maximus

The JFC wrapped up the unfinished business on funding for fuel and energy costs at the Circus World Museum, approving $142,600 for the first year, and $147,600 in the second year of the budget, with the caveat that the second year appropriation be one-time funding.

See earlier post here.

Labels: Historical Society

Taylor & Suder Team Up

A motion from Sen. Taylor and Rep. Suder to turn the Judicial Council into a separate agency was unanimously passed by the JFC.

The council was deleted as an independent agency in the 1995-97 budget, according to the LFB. At that time, the support functions of the council were placed under the umbrella of the Judicial Commission. The Judicial Council is currently budgeted $11,899 in supplies and services.

Under the motion approved by the JFC, funding for one attorney position of $177,600 for the biennium is provided. The motion also stipulates that the attorney can not have made any contributions to candidates for state or local office.

Suder said the proposal has the support of Supreme Court Justice Shirley Abrahamson and Justice Dave Prosser.

Labels: Judicial Commision, Judicial Council, Suder, Taylor

Electronic Filing Fee Approved for Attorneys

The JFC approved the governor's recommendation to allow the Director of State Courts to establish and charge fees for use of the circuit court automated information system. The new fee would be charged to users of the electronic case filing system the courts are developing.

Sen. Taylor, an attorney herself, said most lawyers she knows file their documents electronically, and the system being implemented by the courts will increase accessibility. Taylor said she supported the fee, as long as it isn't attached to access to CCAP.

Rep. Suder said the state shouldn't charge people for filing forms electronically "even if they are attorneys."

Labels: CCAP

Budget Action Too Hot for the Capitol

The fast and furious JFC deliberations have been momentarily interrupted by a fire alarm. The committee opts to ignore it, and plows ahead with their agenda.

Committee Digs in to Court Interpreter Issue

Rep. Scott Suder, R-Abbottsford, made a motion to keep funding for court interpreters at the current level. Gov. Jim Doyle's budget proposal increases funding for court interpreters by $233,500 in the first year and $298,000 in the second year of the budget. (Budget paper 205)

Suder said while court interpreters are needed, he thinks the governor's decision to mandate interpreters be provided to non-English speakers in all criminal and civil proceedings is a change of policy that should be dealt with in the Legislature.

Sen. Taylor, chairwoman of the Senate Judiciary Committee, said she has heard in the public hearings on the justice system around the state that a lack of interpreters is one of the worst problems facing the system. The absence of an interpreter in some cases "shuts down the entire justice process when individuals don't understand."

Suder's motion failed 8-8, and the governor's recommendation was adopted.

Session Kick Off

The JFC starts off with the State Historical Society, beginning with budget paper 471 regarding fuel and utilities costs for the Circus World Museum. The governor has provided $290,000 for the museum for those costs.

Sen. Luther Olsen, R-Ripon, whose district contains the museum, said the museum has been losing money, but said former Rep. Steve Freese, now the director of the museum could right the ship. "This may be the last chance for it to be successful," Olsen said.

Rep. Pedro Colon, D-Milwaukee, moves option number two, which would delete $142,600 from the budget in the first year, and $147,600 in the second year of the budget. He said the state should not pick up operating expenses for the museum, which is owned by the Historical Society. Colon suggested the museum should be sold if it's not profitable.

Sen. Lena Taylor, D-Milwaukee, was more sympathetic to the cause of the museum. "On behalf of the children, save the Circus Museum," she said.

Colon's motion failed 1-15.

The committee co-chairs, Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson, made a motion to modify the governor's recommendation to allow the Historical Society to request release of the second year funding at a quarterly meeting of the JFC.

Another motion is forthcoming, and the committee will come back to this matter.

Labels: Historical Society

Decker, Rhoades Want More Information on Covenant Program

In a letter to Administration Secretary Mike Morgan today, the co-chairs of the Joint Finance Committee say they need more information regarding the costs of the Wisconsin Covenant program before the panel can vote on it.

"We would hope to address the Wisconsin Covenant program during our deliberations on the budget, but are reluctant to do so without detailed information about the parameters of the program and its potential cost," reads the letter from Sen. Russ Decker, D-Weston, and Rep. Kitty Rhoades, R-Hudson.

They are seeking information about the initial costs, the annualized cost once implemented, and more specific information about what the program entitles students to as well as what the state's commitment would be.

See the letter here.

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Thursday, May 31, 2007

SWIB memo says investment board has earned $392.8 million in oil investments

Laborers Back Oil Franchise Fee

Fit To Be Tied

Committee Adjourned

USH 51 Expansion Gets Certain Date

More KRM Motions

KRM Funding Motion Fails

Stone Not Supporting Rental Fee Increase

KRM Motion Emerges

Dem Motion Fails: Governor's Proposal Survives

Vos: Dem Motion Is Anti-Business

GOP Motion Fails

Jauch: Oil Fee Should Be Progressive

Oil Fee "Like an Onion"

June 5 Budget Papers

Gusher of Excuses

More on Dem Omnibus

Gusher of Money

White Men Crying

The Bottom Line on Dem Motion

Tuesday's agenda released

More on Omnibus

Welcome to Transportation Thursday

Wednesday, May 30, 2007

Medicaid Fraud Unit Established

Other DOJ Highlights

DNA Analyst Positions OK'd

More IT Votes

IT Oversight Requirements Mulled

Committee alters Doyle proposal on police, fire discipline proceedings

Friday, May 25, 2007

Press Release Reaction to Yesterday's JFC Votes

Thursday, May 24, 2007

Gov. Doyle Warns GOP to Keep Hands Off Tobacco Money

Committee Adjourns: Next Meet-Ups Wed. and Thurs.

UW Votes

Regent Vos

Dems, Republicans trade barbs over UW building funding

Property Sale Paper Passed

More votes.

Nursing Home Bed Assessment Put Off 'Til Later Date

Vos Blasts Family Care Expansion - Motion Passes

DOA, DOJ on Docket for Next Week

Motion Considered

Meeting Begins

JFC Will Convene in 5 Minutes

Still Delayed

Delay

Wednesday, May 23, 2007

Blogger Tries to Pin Down Republicans on "No Tax" Pledge

Taylor Talks About Her Tough Choice

Tuesday, May 22, 2007

Links to Omnibus Motions

Quick Work

Colon Bats .500 on Motions

Alphabet Soup on PECFA Motion

Committee Unanimous on Commerce Omnibus

Jauch Laments Missing Bio-industry Funds

Another Omnibus

TANF Omnibus Passes

Taylor Has Concerns About Motion

Action Starts with Omnibus TANF Motion

Monday, May 21, 2007

Thursday Meeting to Focus on DHFS, Building Projects

Thursday, May 17, 2007

DOA Adjusts Hospital Assessment

Tuesday's Budget Papers, Hot off the LFB Press

Running Lapse

Grants to Community Health Centers Increased

Lehman Motion Brings Meeting to a Halt

Funding for Racine Infant Mortality

Modifications Made to HIV/AIDS Funding

Next Tuesday's Agenda