WisPolitics Budget Blog

Robson: Use current numbers in school funds certification

Senate Majority Leader Judy Robson is asking Superintendent Burmaster to reconsider her decision to use last year's numbers to formulate state aid for schools. She sent a letter to Burmaster urging DPI to use the already agreed-upon school funding levels in calculating state aid for school districts.

"The Superintendent of Pubic Instruction should be confident and comfortable with the funding levels we've agreed to for K-12 and go ahead and run the numbers," Robson said in a statement. "With significant concessions this week, if Republicans allow Speaker Huebsch to continue to negotiate, there's no reason why the entire state budget can't be resolved by October 15th."

See the press release: http://www.wispolitics.com/index.iml?Article=106232
See the letter: http://www.wispolitics.com/1006/large/070929_Robson_DPI.pdf

In addition, 10 Assembly Democrats issued a letter to Burmaster this morning urging her to use the school funds allotted in AB 506.

"Why begin the certification process with a funding level that is less than the agreed upon figure proposed by the legislature and Governor?" the letter asks rhetorically.

See the letter: http://www.wispolitics.com/1006/070929_Nelson_DPI.pdf

Doyle comments on budget talks

Listen to Gov. Doyle discuss state budget negotiations: http://www.wispolitics.com/1006/070928DoyleRemarks.mp3

Listen to Doyle with reporters on state budget:
http://www.wispolitics.com/1006/070928DoyleQandA.mp3

Listen to these and other audio clips at the WisPolitics Audio Archive:
http://www.wispolitics.com/index.iml?Content=173

DPI will move ahead with last year's numbers

Department of Public Instruction Superintendent Elizabeth Burmaster this afternoon issued this statement regarding the delayed state budget:

"While some progress has been made, I am disappointed with the Legislature's inability to complete the state budget. I have directed the Department of Public Instruction School Financial Services staff to begin the process to certify $4,722,745,900 in 2007-08 general equalization aid to public school districts by October 15, 2007. This is the amount currently in statute and is $79.3 million less than that approved by the Legislature's Joint Committee on Finance.

"Over a month ago I made it clear that a budget agreement was needed. As of 4 p.m. Friday, we still do not have a state budget. Thus, DPI staff, using data provided by our state's school districts, must begin their work using last year's aid figures."

Labels: DPI, K-12 Funding

Nass: Assembly GOP position has not changed

Rep. Steve Nass sent a memo to the Assembly GOP leadership today regarding the "confusion" over potential tax increases in budget negotiations.

"On September 27th, the Assembly Republicans met and made no changes to our position against tax increases being included in the 2007-2009 Biennial Budget," Nass writes, refuting media reports showing Assembly Republicans are negotiating on the cigarette tax, tipping fee, oil franchise fee, and the Patients Compensation Fund.

"The Governor and Democrats can't raise one tax without the consent of the Republicans in the State Assembly," Nass said.

See the letter: http://www.wispolitics.com/index.iml?Article=106193

UPDATE: Majority Leader Jeff Fitzgerald's response: Not a Done Deal.

No word yet on what happens when deadline expires

State DPI Superintendent Elizabeth Burmaster's budget deadline has arrived, and the agency is waiting until later today to decide what to do next about state school funding.

Burmaster said in an August press release that she needed a budget by today in order to meet the October 15 deadline for notifying school districts about state funding. With no budget in place, she said DPI may have to use last year's funding levels.

Spokesman Patrick Gasper said that the department's position regarding school funding has not changed, adding "we still have a couple hours today."

When asked what happens if, as expected, a budget is not agreed upon today, Gasper said, "If there is no budget agreement we may have to use the numbers from last year. But again, we are monitoring the progress today."

He said a statement will be issued later today.

Labels: DPI, K-12 Funding

Budget talks not unlike buying a car, Doyle says

Doyle had reporters laughing at his analogy that budget negotiations can be like bargaining with a car salesman.

Doyle said the budget talks at the Executive Residence have for the most part been respectful.

"Now that's not to say there aren't times when voices go up and people pound the table a little," he said. "I mean, everybody who's bought a new car knows that stuff goes on all the time."

He continued with the analogy.

"You know, there's all that stuff about, 'Geez, I don't know, I'm going to have to take it to the manager back in the other office,'" Doyle said. "You know, we've all be through that with a new car. 'The manager doesn't let me move on this. I sure would like to myself.' You know, there's all that stuff that goes on, I understand that.

"But I will say we've kept that to a minimum."

One media member asked, "But you're the manager in the other room, aren't you?"

"Well, everybody kind of has a manager in the other room," Doyle replied, saying Senate Majority Leader Robson and Assembly Speaker Huebsch each have to answer to their respective caucuses.

Another reporter brought up an analogy to the movie "Fargo," where the salesman goes to the manager and instead of talking about the sale at hand, talks about football.

"I've made of joke of it, but it's not a car dealership, it's an elected Legislature," Doyle said. "It's not just going back to the manager and talking football.

"And I hope we don't come to the end of 'Fargo,'" Doyle said, referring to the climactic and gory wood-chipper scene.

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

Budget deal is in range, Doyle says

While he acknowledged there is a significant amount of work that needs to be done, Gov. Jim Doyle today praised the progress made by Senate Majority Leader Judy Robson, D-Beloit, and Assembly Speaker Mike Huebsch, R-West Salem, in reaching a budget agreement.

"Both sides have crossed lines they said the would not cross," Doyle said.

Doyle said talks have "intensified" over the last few days, and the leaders will be back today at the Executive Residence to continue negotiations. He said while a budget is not likely today, it could happen in the next several days.

"We are definitely in range of getting this done," he said.

The governor, speaking with the press in his Capitol conference room, addressed the fallout to state programs if a budget is not passed: UW System students could face an $800 tuition surcharge, the Department of Corrections would face a $370 million shortfall, GPS monitoring of sex offenders would not be implemented, SeniorCare would see a $9 million shortfall resulting in elderly residents losing prescription drug coverage, and BadgerCare would see a shortfall of $11 million, among other ramifications.

"It's pretty obvious that not passing a budget is simply not an option," he said.

Doyle also spoke about the deadline set by DPI Super Libby Burmaster, who has said she needs school funding levels by today so the agency can meet an Oct. 15 deadline to tell schools how much state aid they will receive next year.

Doyle said the legislators who failed to pass a budget will have to come up with a solution to the problem before estimated $600 million property tax increase is foisted onto taxpayers. Doyle suggested the Legislature could move the Oct. 15 certification date.

"Now there are real, practical consequences to that, I don't want to make that sound as easy as I say it because in fact ... The reason Oct. 15 is set as the date in the law is to give school districts the opportunity and the time to set their budget and school boards to go through it ... by the time tax bills go out in early December," Doyle said.

When asked why Burmaster couldn't make her calculations with the school funding numbers already approved by the Assembly - numbers that match Doyle's proposal for school aids - the governor said that would be going down the road of "piecemeal budgeting"

"(Assembly Republicans) never told us how they're going to pay for it. It's hardly a bugdet to say here's how we're going to spend the money but, by the way, we're not going to tell you how we're going to pay for it," he said. "I mean, a budget's a budget. And as I've said all along, we're not going to go down the road of piecemeal budgeting, or we turn into the United States Congress in no time."

Doyle also hinted it may be a time for the state to look at repealing legislation that allows the state to continue under current appropriations if a new budget isn't passed. He said the state "ought to be very careful about doing away with that," but added, "some harder deadlines with some real consequences would be helpful."

Listen to Doyle's remarks on budget progress here.

Get your audio here

There was a whirlwind of budget activity yesterday, and as such a flurry of press conferences resulted. Below, you will find the links to the press conferences held by caucus leaders in both houses. Enjoy.

Senate Majority Leader Judy Robson, D-Beloit, press conference here.

Assembly Speaker Mike Huebsch, R-West Salem, press conference statement here.

Rep. Huebsch taking questions from reporters here.

Senate Minority Leader Scott Fitzgerald, R-Juneau, news conference here.

Sens. Fitzgerald, Leibham and Grothman taking questions from reporters here.

Assembly Minority Leader Jim Kreuser, D-Kenosha, press conference here.

Doyle spokesman: "Significant progress" made

Matt Canter, spokesman for Gov. Jim Doyle, released the following statement in an e-mail last night:

"The governor understands that the speaker is going to engage in a certain amount of posturing as part of the bargaining process. Both sides have made significant progress over the last few days. We have significantly narrowed the differences. The law says that the legislature must pass a budget, and they must continue to work night and day to pass a budget."

Robson laments "lost day"

Speaking with reporters late this afternoon, Senate Majority Leader Judy Robson, D-Beloit, jabbed Assembly Speaker Mike Huebsch for taking time away from budget negotiations to hold a three-hour caucus and speak to the press.

"We have lost a day," she said.

"It's disappointing that Speaker Huebsch and the Republicans keep on running to TV cameras and also radio stations and away from the negotiating table," she said.

Still, Robson said there is forward momentum in the talks, but there is a faction in the Republican caucus that isn't interested in settling the budget dispute.

"What we have seen is progress. The speaker's caucus apparently thought progress was a problem. The group who doesn't want a budget doesn't like the fact that we got a lot done this week," Robson said.

Robson confirmed that Democrats have offered to drop the the hospital assessment and an increase to the real estate transfer fee in exchange for leaving in the oil franchise fee and combined reporting on business taxes. In addition, she confirmed, the Dems have offered to find $300 million in additional program cuts. But those reductions would not impact the proposed expansion of BadgerCare that Gov. Jim Doyle proposed earlier this year to extend health care coverage to more Wisconsin residents.

Dems have also offered to lower proposed increases in the tipping fee, and the nursing home bed tax, she said.

"We took out the tax increases they called their bottom line," she said.

Robson acknowledged that Huebsch has agreed to the $1.25 per pack tax increase for cigarettes, and that he has agreed to transfer an unspecified amount from the Patients Compensation Fund.

The fact remains, Robson contended, that a number of Assembly Republicans simply don't want a budget.

"He has members applauding this impasse and celebrating this delay," she said. "Someone show me one press release, one comment, one column from a Democrat proud of this dubious distinction."

"I never can figure out the Republican mind," she said.

Robson brushed off the importance of today's deadline set by DPI Superintendent Libby Burmaster. Burmaster has said she needs school funding levels by tomorrow so the agency can meet an Oct. 15 deadline to tell schools how much state aid they will receive next year.

"They (Republicans) can have their political merriment and take their pound of flesh. I'll be at the budget table with the governor and his team to get the budget done," Robson said.

Huebsch offers full cigarette tax

Assembly Speaker Mike Huebsch says he offered Dems the governor's full $1.25 hike in the cigarette tax during budget negotiations this week.

But he said this afternoon it was dismissed as "not enough to meet their tax and spend needs."

"The problem is every time we make a movement, it's just not enough," Huebsch, R-West Salem, said in a press conference with Assembly Majority Leader Jeff Fitzgerald, R-Horicon.

The speaker said the budget won't be completed by tomorrow's deadline as set by School Superintendent Elizabeth Burmaster, and he urged the Senate leadership to take up AB 506 to prevent property tax boosts.

Huebsch also talked about speculation that Republicans may be willing to compromise on the proposed transfer from the Patients Compensation fund that Gov. Jim Doyle had proposed.

Asked if he categorically opposed a transfer from the fund, Huebsch responded, "What the Dems have actually offered is that they need a set a amount from a certain number of taxes. If I wanted to take one or two of those off, be it the real estate transfer fee or the Patients Compensation transfer or any of the others, I simply need to raise the others."

Listen to Huebsch's press conference:
http://www.wispolitics.com/1006/070927HuebschBudgInact.mp3

Reilly, UW groups ask for full funding of UW System

In a letter to budget conferees, UW System President Kevin Reilly urges full funding of the state's universities, and calls the budget forwarded by Assembly Republicans "a recipe for reduced quality and curtailed educational access."

See the Reilly letter:
http://www.wispolitics.com/1006/070927Reillyletter.pdf

The UW Alumni Association sent its own letter to conference committee members, asking them to provide enough GPR to allow the school to meet the needs of current students.

The letter states alumni have sent the Capitol 30,000 messages supporting funding for the university.

The letter was signed by Douglas K. Griese, board chair for the Alumni Association, and Peter C. Christianson, chair of Alumni for Wisconsin.

Budget mailers were sent to members earlier this year urging them to contact lawmakers in support of UW funding.

*Read the letter:
http://www.wispolitics.com/1006/070927WAAletter.pdf
*See the Save Bucky site:
http://savebucky.com/

Finally, the two student members of the UW Board of Regents, along with the leaders of UW System student governments, sent a letter to conference committee members arguing that cuts to the UW would force "students and families to shoulder a greater share of the college costs through higher tuition, coupled with reductions in student services."

*Read the letter:
http://www.wispolitics.com/1006/070927studentletter.pdf

Fiscal Bureau: AB 506 shows lowest property tax increase

Property taxes on a median-valued home would decrease the least under the provisions in AB 506 and 507, according to an analysis requested by Speaker Huebsch from the Legislative Fiscal Bureau.

Under the LFB calculations, a median-valued homes tax bill would increase by $80 in 2007-08 to $2,814 under the AB 506 and 507 proposal. That's compared with $2,804 in the first year and $2,808 in the second year under the budget bill passed by the Assembly.

In the budget bill passed by the Senate, the tax bill would increase to $2,826 in the first year and $2,876.

The LFB also included an estimate for a no-budget scenario, under which tax bills would increase to $2,857 in the first year and $2,980 in the second.

See the LFB memo:
http://www.wispolitics.com/1006/070917lfbmemo.pdf

Huebsch says GOP has conceded on cig tax increase

Assembly Speaker Mike Huebsch, R-West Salem, said today that he has offered to compromise on the tobacco tax increase proposed by Gov. Jim Doyle. But, he says, the concession was greeted by Democrats at the bargaining table as "just not enough."

Huebsch has long hinted in interviews that the cigarette tax increase is the "most palatable" of the tax increases proposed by Gov. Jim Doyle and Senate Democrats.

See Huebsch's statement here.

Kreuser: Huebsch not negotiating in good faith

Assembly Minority Leader Jim Kreuser, D-Kenosha, slammed Assembly Speaker Mike Huebsch for "not bargaining in good faith" in closed door budget discussions with Senate Democrats.

"Just showing up is not negotiating," Kreuser said. "He is going off the base budget which is intellectually not accurate."

Kreuser said Huebsch's e-mail to his Assembly colleagues and "Joe Schmoe" formula press release asking members of his caucus to push a budget for K-12 education is playing politics and "not trying to get his job done."

Read more about the press release and e-mail here

Kreuser also said that claims that Gov. Jim Doyle or his office have not been actively involved in the budget process are "absolutely ludicrous."

The final countdown

In case Senate Democrats forget about the impending deadline for action on the Assembly-approved school funding bill, Rep. Jeff Mursau, R-Crivitz, has posted a countdown clock on his home page as a helpful reminder.

See the page here.

Source: Dems offer to drop hospital assessment, keep oil franchise fee in latest budget offer

One of the latest Dem offers at the conference table proposes dropping the hospital assessment and an increase to the real estate transfer fee in exchange for leaving in the oil franchise fee and combined reporting on business taxes, according to a source who has been briefed on the ongoing negotiations at the Executive Residence.

The source said the Dem offer also included $350 million in additional program cuts. But those reductions would not impact the proposed expansion of BadgerCare that Gov. Jim Doyle proposed earlier this year to extend health care coverage to more Wisconsin residents.

The source estimated the two sides are about $300 million apart from agreeing on a full budget package.

Dems have also offered to lower proposed increases in the tipping fee, the nursing home bed tax and the sales tax filing fee, according to the source.

Assembly Republicans caucused this morning before legislative leaders were expected to continue talks at the residence, though a time had not been set to resume negotiations.

For more on the negotiations, see today's PM Update.

GOP caucus concludes Senate must take action on school funding bill

Following the GOP Assembly caucus, which lasted about three hours, Speaker Mike Huebsch, R-West Salem, released the following statement:

"Today is one of the benchmark days in our ongoing state budget negotiations. Senate Democrats now only have 24 hours remaining to take up bipartisan legislation to prevent a $600 million tax hike on Wisconsin homeowners.

"Assembly Republicans met in caucus today to discuss the status of ongoing budget negotiations and concluded that the Senate must take action on AB 506 and AB 507 while talk continues between legislative leaders. This critical legislation, which passed the Assembly with strong bipartisan support, provides the highest level of funding for our public schools in state history, full funding for local governments, and renews the expired Property Tax Freeze Governor Doyle signed into law in 2005.

"Our Republican caucus is dedicated to getting a budget done. However, that does not mean that we will support the type of 'blank check' spending being advocated by Senate Democrats and Governor Doyle. Wisconsin is already the eighth highest taxed state in the nation, and Republicans will not stand by and rubberstamp excessive government spending and record tax increases.

"There is still much work to be done on resolving the differences between the Assembly and Senate budgets. This work will not likely be accomplished by tomorrow, so it is imperative that the Senate Democrats convene to pass AB 506 and AB 507. If they refuse, Wisconsin taxpayers will have to pay a $600 million price for the government's inaction."

Fitzgerald urges for Senate action on school funding, slams Doyle

Senate Minority Leader Scott Fitzgerald and fellow Republicans again called on Senate Majority Leader Judy Robson to schedule a debate on Assembly legislation to break out K-12 school funding from the rest of the budget.

Fitzgerald, R-Juneau, said unless the Senate Committee on Organization meets by 4 p.m. today to schedule a floor session tomorrow, homeowners will be hit with a $600 million property tax hike.

DPI Superintendent Libby Burmaster has said she needs school funding levels by tomorrow so the agency can meet an Oct. 15 deadline to tell schools how much state aid they will receive next year. Without a budget or separate legislation setting new aid levels, Burmaster said the agency will have to use last year's aid levels. That would allow school districts to raise property taxes by $600 million to cover allowed increases in per pupil spending.

Fitzgerald rebuffed questions suggesting a school funding plan does not have to be passed by Friday to avoid a tax hike, saying that "it is absolutely a fact" that there will be a property tax increase if nothing is done by tomorrow's deadline.

Fitzgerald also slammed Gov. Jim Doyle for not being at the budget talks at the executive residence in person.

"And that's why I think they're having such a difficult time in the mansion, because the governor has been absolutely absent from this process at this point," Fitzgerald said.

Robson spokesman Josh Wescott said that Fitzgerald is just making excuses for the budget not getting passed, and Doyle and the Legislature should look to pass a full budget.

"I think people are tired of the politics and looking for a ... budget in its entirety," Wescott said. "Senator Fitzgerald has been pointing a finger in a different direction over the past two months."

Walker presents budget to Milwaukee County Board

Milwaukee County Exec. Scott Walker outlined his goal of improving safety, affordability and pride in the county without raising taxes, while railing against state mandates in his budget address today before the Milwaukee County Board.

Walker's $1.3 billion budget boosts spending in most categories, while cleaving $9.3 million from administration and $7.6 million from capital improvements. Total expenditures would increase by $46 million. This is Walker's sixth budget he's submitted without increasing property taxes from the previous year. His base budget, however, represents an average annual increase of about 2 percent in the property tax levy added through board action.

"This budget was created so that the retired couple living on Social Security, the new homeowners with a baby, the entrepreneur just branching out to start a new business could make a go of it here," Walker said. "This is why we do not raise the tax levy. And it's also why I don't support adding to our overall tax burden with a new sales tax."

While Walker's budget increases spending for public safety by about $16 million, it also calls for reducing the population of its work release facility by some 360 inmates and placing them on home detention and GPS monitoring for a savings of about $2.4 million. Certain offenders, such as those convicted of serious violent crimes, drug dealing and sex offenses would not be eligible.

"Even with our fiscal challenges, we give the sheriff the resources needed to protect our parks and buses and to address violent crime in the City of Milwaukee and beyond." Walker said. "We put more into programs that keep our young people out of a cycle of crime. We do more to supervise offenders and not just watch them sleep at night. "

While Walker's budget cuts parks funding by about $500,000, it seeks to recover from the impact of that by abolishing 81 parks maintenance positions, 30 of which are vacant. Instead, more efficient equipment would be purchased, 20 new positions would be created and the county would hire more seasonal workers.

With figures for state shared revenue still uncertain, Walker said he tried to be "realistic" in his projections of what they may be, but said "the reality is that the state is sticking it to Milwaukee County."

Walker noted that in every budget version advanced so far, the costs for housing juvenile offenders has climbed about 22 percent, resulting in a $97,820 cost per year for each offender.

"This is enough to send more than 19 kids to UWM for a year," Walker said. "This is wrong."

Walker also railed against the fact that state government requires the county to hire staff to determine eligibility for food stamps, childcare and Medicaid , while reducing funding over the past four years to cover those positions by $2.4 million.

"It is time for the state to cover the costs of these mandates or eliminate them, period.," Walker said.

*See the budget:
http://www.wispolitics.com/1006/070927WalkerBudget.pdf
*See Walker's budget address:
http://www.wispolitics.com/1006/070927WalkerSpeech.pdf

GOP leadership coordinates attacks on Dem school funding

Assembly Speaker Mike Huebsch is coordinating an effort to attack Democrats for inaction on AB 506 and 507, which the chamber passed last week to address funding for K-12 schools and local government aids, according to an e-mail obtained by WisPolitics.

In an e-mail to members, Huebsch wrote, "The iron is hot, and it's time to strike."

Each day this week, the e-mail says, leadership offices will distribute to members sample press releases, with the letterhead of "Joe Schmoe" and other "information to hammer our message home ahead of the deadline."

One such sample release is titled "Schmoe calls on Senate to pass school funding," with the subhead, "Rep. Joe Schmoe urges Senator Schmoron to stand up for taxpayers and pass legislation to prevent a $600 million property tax hike."

Today, two releases from Republican Assembly members were sent to the media, one from four southeastern Wisconsin lawmakers, another from three legislators representing the Fox Valley. Similar coordinated releases were sent out yesterday.

*See the email from Huebsch:
http://www.wispolitics.com/1006/070926HuebschEmail.pdf
*See the sample press release:
http://www.wispolitics.com/1006/070926SchmoePR.pdf

Huebsch spokesman John Murray said the memos are sent out regularly and also posted on the GOP Assembly's Intranet site.

"It's really given more towards newer members to help them put out accurate and timely press information," said Murray.

Members are encouraged to use facts and the framework of the mock releases, but not to replicate them verbatim, Murray said.

"They should be used to craft a district-specific message," Murray said.

See the press releases sent by Republican legislators:

*Reps. Kramer, Kleefisch, Newcomer, Zipperer: Waukesha legislators call for Senate, Governor to fund schools, local government
http://www.wispolitics.com/index.iml?Article=105950
*Reps. Owens, Roth and Kaufert: Urge the Senate Democrats to act
http://www.wispolitics.com/index.iml?Article=105997
*Reps. Gottlieb, Pridemore, Honadel, Stone: Time is running out to stop $600 million tax increase
http://www.wispolitics.com/index.iml?Article=105861
*Reps. Vos, Lothian, Gunderson, Nass, Kerkman: Southeastern Wisconsin legislators call on Senate to pass school funding
http://www.wispolitics.com/index.iml?Article=105877

Odds and ends

Today's budget talks got off to a late start because First Lady Jessica Doyle was hosting a "Reading Day at the Executive Residence" for local kids. The event was scheduled to run until 2:30 p.m.

Rep. Steve Nass, R-Whitewater, responded to the letter from UW-Madison John Wiley urging full cost-to-continue funding for the school with a letter of his own.

It says, in part, "Chancellor Wiley's tactics are very familiar because these were the same type of threats used in the 1993-1995 budget debates when the QEO and school revenue limits were enacted into law. At that time, WEAC and others predicted that schools would be forced to eliminate bands, sports and maybe even lead to kids walking up hill - both ways - to school.

"Well, it’s now 2007 and school children in Wisconsin still march in bands, still compete in sports and achieve in the classroom. I am abundantly confident that the intellectual leaders of the UW System, if committed to students, will find ways to survive with an increase in state funding levels less than desired," writes Nass.

See the full letter here.

Meanwhile, four GOP Reps. from the Waukesha County area, Joel Kleefisch, Bill Kramer, Scott Newcomer, and Rich Zipperer, are calling in Senate Majority Leader Robson and Gov. Doyle to take up the school funding and local government aids bills passed by the Assembly last week.

"Assembly Republicans realized the immediate importance of funding K-12 education and local governments and took the necessary legislative action to prevent an unnecessary property tax increase on families that already pay too much in taxes," said Kleefisch in the statement. "If Democrats want to label me as an obstructionist for standing in the way of a $591 million property tax hike, then that is a position I am proud to take."

See the press release here.

Meanwhile, Sen. Dave Hansen, D-Green Bay, says Assembly GOP plans to "avoid" a full budget have put the expansion of U.S. 41 in jeopardy.

"After all the work that we have done to make this happen on time and on track in the face of long odds and other delays - it's just sad that at this moment when construction has started it is now at risk because one house does not want to pass an entire budget," said Hansen.

See Hansen's release here.

And the Wisconsin Coalition Against Domestic Violence says budget inaction has forced the closure of a domestic violence shelter in Menominee County.

See the release here.

Wiley pleads his case

UW-Madison Chancellor John Wiley wrote to budget conferees yesterday to urge them to fully fund cost-to-continue provisions in the 2007-09 budget.

The cuts proposed in the Assembly budget would undercut the mission of the university and threaten the quality of teaching.

"No part of this campus would be immune to the effects of these damaging cuts," said Wiley in the letter. "They would be felt directly by our students, who would face pinched access to courses and student services, and would need to take longer to graduate."

Wiley lays out a lengthy list of ramifications budget cuts would have. See the letter here.

Also, the UW System has put together a Web page of correspondence and articles from lawmakers supporting increased funding. See it here.

GOP Assembly to caucus tomorrow

Republicans who control the Assembly will caucus tomorrow beginning at 10 a.m. to noon tomorrow. And yes, the budget is the topic.

Talks continue

Legislative leaders continued to meet today at the Executive Residence to find common ground to solve the state budget impasse, and will meet into the evening, according to Matt Canter, spokesman for Gov. Jim Doyle.

Joining Senate Majority Leader Judy Robson, D-Beloit, and Assembly Speaker Mike Huebsch, R-West Salem, once again was Assembly Majority Leader Jeff Fitzgerald, R-Horicon, in the morning and early afternoon. Sen. Russ Decker, D-Weston, participated in the afternoon negotiations.

Canter declined to comment on the direction of the talks or whether there has been any progress.

Doyle traveled to LaCrosse and Milwaukee today, but has been receiving frequent updates, according to Canter.

The leaders expect to return to the residence tomorrow afternoon to resume negotiations, Canter said.

WDC calculates $17 million spent during budget stalemate

The Wisconsin Democracy Campaign estimates that $17 million in taxpayer money has been "wasted" as lawmakers argue of the state budget.

The figure represents the salaries, fringe benefits and other costs to operate the Legislature for one quarter of the year, according to WDC.

See the press release here.

Autism advocates push for mandate inclusion

Autism advocates today urged the legislature to pass a state budget that would mandate that insurance companies provide coverage for autism.

"We believe it is a reasonable position," Nissan Bar-Lev of the Autism Society of Wisconsin told a capitol press conference. "It is the right thing to do."

The plan to require autism coverage remains in play as budget negotiations continue at the Executive Residence. The Senate Democrats dropped their Healthy Wisconsin plan last week in exchange for other health care initiatives, including the autism coverage proposal.

Currently, parents in need of autism treatment apply for a state waiver. According to a statement from the Autism Society, the waiting list for the waiver includes 250 children and a two-year wait.

"The wait will only get longer," Bar-Lev said.

Barrett lays out Milwaukee budget

As state legislators continue to wrangle over the budget, Milwaukee Mayor Tom Barrett today presented a budget that boosts funding to fight crime and repair the city's aging infrastructure while raising fees and taxes by 1.7 percent for the average homeowner.

The $1.29 billion spending plan boosts the property tax levy by 3.3 percent, which when combined with fee increases, will result in the average homeowner paying an additional 1.7 percent, or $24 more than last year. The budget sets the property tax rate at $8.01 per $1,000 of assessed value. The rate was $9.73 when Barrett first took office.

"The people of Milwaukee expect that their government will work to manage and control the tax burden," Barrett said.

Barrett highlighted the problems the state budget impasse has caused in the budgeting process, saying it "would be made a lot less difficult if the Legislature in Madison would finally approve a state budget with a shared revenue increase, funds for police overtime and school choice property tax relief."

The mayor's plan provides funds to make good on his promise last year to put 100 more officers on the streets through 70 new hires and by having civilians handle certain functions to free up 30 sworn officers.

A program that pairs officers with high schools would get $1.1 million in matching funds to expand the initiative from 10 to 12 schools and commit 36 officers. The city's Neighborhood Safety Initiative, a targeted patrol program credited with reducing violent crime this summer, would see $1.8 million in new funding.

Police Chief Nannette Hegerty said she was pleased with the level of police funding, saying she felt the city was providing all that it could afford.

Barrett said both the tax levy level and the school safety initiative depends on an increase in state shared revenue.

"If ever there was an example of the costs to Milwaukee of the shared revenue impasse, the school safety partnership is the poster child," Barrett said. "Without an increase in state shared revenue for Milwaukee, we will not be able to expand this program to the ten additional schools as we hope."

In response to an audit that showed Milwaukee's aging streets on a 165 year repair and replacement cycle, Barrett proposed increasing local streets spending by $1 million in an effort to cut that time to 65 years by 2013. Major streets and bridges spending would see a $580,000 boost. Sewer spending would also be increased by $1.6 million.

The mayor's plan also invests $200,000 in a program to help restore driving privileges to those who have lost them, spends $300,000 on a youth summer jobs program and authorizes $64.6 million in Tax Incremental Financing for various developments.

In an interview, Common Council President Willie Hines Jr., said he was generally comfortable with the level of tax and fee increases, but expressed the need to address underlying causes of violence in schools and highlighted the need to increase efficiencies in the police department as the city invests money in it.

A number of items Barrett proposed in his budget rely at least partially on a $3.6 million increase in shared revenue.

This includes nearly $500,000 for the school safety initiative expansion, approximately $900,000 for police overtime, $230,000 for public works, $125,000 to extend library hours by 30 minutes, $90,400 for health care outreach and $20,000 for new computer hardware in the assessor's office. Of the projected increase, $1.6 million would flow to property tax relief.

If shared revenue is not increased, however, budget documents say Barrett would support eliminating those increases in his budget, with the residual impact being an $11 million increase in the property tax levy.

While many areas would see some increases, several areas would be trimmed.

Barrett's budget would cut the capital improvements budget by $16 million, employee retirement expenditures by just over $3 million, libraries by $566,000 and the Common Council contingent fund from $5.5 million to $5 million.

The budget also calls for a net loss of 81 jobs. Among those are 50 for the public works department, 12 in the fire department, 27 in the health department and 12 the department of city development.

-- By David Wise, WisPolitics Milwaukee Bureau Chief

See text of Barrett's budget address here.

See the press release from Barrett's office here.

See an executive summary of the budget here.

See the detailed budget here.

Letters from an impasse

Thirteen Assembly Dems sent Assembly Speaker Huebsch a letter yesterday reiterating why they voted last week for legislation to break out funding for K-12 education from the rest of the budget. The Dems say they accepted the bill, AB 506, "as a good faith gesture on your part to fully fund our schools and municipalities in a manner consistent" with Gov. Jim Doyle's budget, and the budgets of the bipartisan Joint Finance Committee and the Dem-controlled Senate.

The Dems conclude by saying it is essential that a "complete budget plan" be agreed to in a "timely fashion."

See the letter here.

Huebsch responded today, thanking them for reiterating their support for the bill and urging them to appeal to Senate Dems to take up a floor vote of the bill.

The West Salem Republican said he'll continue to work with Democrats to come to a full agreement. "However, if negotiations are not completed by Friday because the two houses have not resolved our differences on tax increases proposed by the governor and Senate Democrats, Wisconsin families should not be forced to pay the $600 million price."

See Huebsch's letter here.

Nass: Assembly GOP could wait 'til Xmas to unwrap budget

Wisconsin could easily go beyond Christmas without a budget and Assembly Republicans are prepared to hold out at least that long if Senate Dems keep pushing tax increases, GOP state Rep. Steve Nass said in an interview yesterday.

Nass has been vocal about putting pressure on Assembly leaders to hold the line on taxes, and his comments underscore the pressure Huebsch is likely to face in negotiations from his party's conservative wing.

Nass declared, "If the Democrats continue to push tax increases, we will not have a budget."

In the last Assembly Republican caucus, Nass said, every member was unified in the position of no tax increases - including the cigarette tax. He said he would be surprised if Huebsch brought back to the Assembly a budget that included any tax increases.

"To wage this battle as we have right now and at this moment to cave in on a cigarette tax or an iPod tax, I think the public would say, 'Why were you guys even fighting then? Why delay the budget from July to now?'" Nass said.

Nass said any looming concerns about not having a budget wouldn't come into play until at least next spring and warned Dems will be responsible for a $600 million property tax increase if they don't act on legislation the Assembly approved last week to break school funding out from the rest of the budget.

"So if the Democrats want to continue to push tax increases, that's fine," Nass said. "We will continue to hold out on behalf of the taxpayers, and we will easily go beyond Christmas without a budget. And if necessary, we're not bashful as far as taking care of any concerns that would come up in separate legislation just as we did recently."

Listen to the Nass interview here.

Some odds and ends

The Autism Society of Wiscosin will hold a press conference at 11:30 a.m. in the Senate Parlor calling for the state budget to require insurance coverage for autism services.

See more here.

Senate Minority Leader Scott Fitzgerald, R-Juneau, reminds Senate Democrats that they have just four days to act on the Assembly's school funding bill to beat the Sept. 28 deadline set by DPI Supt. Libby Burmaster.

See the press release here.

Sen. Tim Carpenter, D-Milwaukee, sent a letter to Gov. Doyle urging that a provision to eliminate the state mandate that the City of Milwaukee must continue to pay salary and benefits to police officers after they have been fired remain in the budget.

See Carpenter's letter here.

The AFL-CIO has sent a letter to members urging them to contact legislators to vote to save funding for the School for Workers and to grant collective bargaining for UW staff and faculty, both provisions that were cut out of the Assembly budget.

See the letter here.

Three Racine area Dem lawmakers sent a letter to GOP Rep. Robin Vos urging his support of funding for the KRM commuter rail project in the state budget.

See the letter here.

See more letters sent by lawmakers regarding the state budget here.

Leaders meeting for second day

Sen. Robson and Rep. Huebsch are back at the Executive Residence today trying to hammer out a resolution to the state budget stalemate. Sen. Decker and Rep. Fitzgerald are rotating into discussions.

The legislators met until about 8:30 last night. Spokesmen wouldn't comment on any agreements that may have been reached to this point.

Audio links of yesterday's press conference leading into the budget summit are available below.

Listen to Doyle, Huebsch and Robson before the closed door session here.

Listen to Doyle, Huebsch and Robson taking and answering questions here.

Club for Growth ad touts Assembly action

A new Club for Growth-Wisconsin radio ad credits Assembly Republicans with breaking the budget stalemate by breaking out K-12 funding from the rest of the budget while criticizing Senate Dems for refusing to take up the plan.

The ad says Assembly Republicans agreed to fund schools at the level requested by Dem Gov. Jim Doyle.

"But unlike the governor, they did it without raising taxes," the narrator says.

The spot also says Senate Dems want to raise taxes on workers by $510 a month and "double the increase on property taxes."

The ad, which is running statewide and began Thursday, urges listeners to call their state senators to tell them to pass the Assembly bill.

Listen to the spot here.

Doyle, legislative leaders begin budget talks

Gov. Jim Doyle said he was "very optimistic" today as talks began between Assembly Speaker Mike Huebsch and Senate Majority Leader Judy Robson, the latest attempt to figure out a compromise on the state budget that was due July 1.

Doyle, speaking to reporters at the Executive Residence, remains encouraged by the signs of momentum last week when Assembly Republicans passed a K-12 education budget that mirrored his own, and the Dems offered to remove Healthy Wisconsin from their budget proposal.

Doyle had harsh words for legislators who have said a new state budget isn't needed.

"My view is that they are dead wrong," he said. "The failure of the Legislature to come to an agreement in a timely manner has some real consequences for this state, and as governor I have to plan for the disaster that will hit this state if we fail to pass a budget."

Doyle cited several dire ramifications of not passing a budget, including the UW System and Department of Corrections going broke next spring, the delay of the Sandridge Secure Treatment Center for sex offenders, and the postponement or cancellation of many road projects.

"And worst of all, if we do not get a budget done local schools will be forced to lay off teachers or raise property taxes," he said.

Without a budget, UW campuses will fall $100 million short of their costs to continue, he said, which could lead the Board of Regents to institute a one-semester surcharge of $800 per student to make ends meet.

"Not having a budget is not an option," Doyle said.

Doyle had to leave the budget talks shortly after the press conference to meet with state Adjutant General Donald Dunbar and his homeland security council on the status of emergency preparedness efforts. "And I would add that our state's response capabilities also depend on having a sound state budget," Doyle said.

Doyle said he would have his Deputy Chief of Staff Katie Boyce, DOA executive assistant Pat Henderson, and state budget director Dave Schmiedicke on hand at all times to work with the negotiators, and he would be available at any time he was needed. He said he hoped the legislative leaders would work night and day to come to agreement and the spirit of compromise pervades the talks.

"Nobody's going to get everything they want in this budget, and both sides are going to have to accept some things they don't want to accept, but that's what compromise is about," Doyle said.

Huebsch noted that the deadline set by DPI Supt. Libby Burmaster to set K-12 school funding levels is five days away, and added there's no secret as to why a budget agreement has eluded the conference committee.

"It has come down from the beginning to the tax issue and the fact we will continue to discuss the level of taxation the governor and Senate Democrats want to increase, and the role Assembly Republicans have taken in recognizing we simply cannot afford more than that," Huebsch, R-West Salem, said. "Now I say all this in recognition of the fact ... that not all sides get what they want."

Asked why he didn't convene the budget summit earlier, Doyle said he had hoped the regular legislative process would have resulted in agreement. But, he said, the committee has run out of time.

He also rebutted Huebsch's take on taxes.

"I don't want to negotiate this publicly but, of course the real issue in my mind is what level of cuts are the people of Wisconsin willing to accept?" he asked. "Are they really ready to accept the draconian cuts that the Assembly budget put forward? And that's where I think a good deal of the talk is going to have to come."

Robson, D-Beloit, touted the Senate Dems offer to bargain Healthy Wisconsin out of the budget.

"Our good faith effort at getting the job done has lead to a real opportunity today for everyone at the negotiating table," she said. "With more give and take that was offered in Friday, there's no reason why we can't be working together and get this budget done in a very timely way."

She said Doyle and Senate Dems are in agreement that "health care must be made a priority in this budget," as well as K-12 schools and the UW System.

Also on hand at the Executive Residence was Sen. Russ Decker, D-Weston, co-chair of the Joint Finance Committee, and staff members from offices of Huebsch, Robson, Rep. Kitty Rhoades, R-Hudson, the other JFC co-chair, and Assembly Majority Leader Jeff Fitzgerald, R-Horicon.

Robson says Healthy Wisconsin shall return

Senate Majority Leader Judy Robson, D-Beloit, said her caucus agreed to set Health Wisconsin aside temporarily, provided the GOP agrees to some "pretty basic values," including coverage for children, mental health funding, hospital Medicaid reimbursements, and the cigarette tax.

"By no means have we heard that last of it," Robson said of the Senate health plan, adding that Sen. Jon Erpenbach's bill would be taken up in the legislative session.

While she called the move to bargain Healthy Wisconsin out "an opportunity to break the budget logjam," she blasted Republicans for their opposition to universal care.

"Republicans have said time and time again that they prefer the status quo," Robson said. "The Republicans and their special interests, they have demonized this plan."

Robson said the removal of Healthy Wisconsin eliminated 84.4 percent of the differences in the remaining budget, and said she hoped to resolve the last $300-$400 million difference in a few days. She is set to negotiate with Gov. Doyle and Speaker Huebsch at the Executive Residence starting Monday, and she hopes they will not leave until the budget is done.

"We'll go anywhere, anyplace, anytime -- the Senate Democrats -- in order to get this budget done," Robson said.

Listen to audio of the press conference here.

Huebsch happily accepts guv's invitation

Assembly Speaker Mike Huebsch, R-West Salem, said he was "happy" to receive the invitation to work on the budget at the Executive Residence Monday, but reiterated that his caucus would not accept all the spending that is in the Senate or governor's version of the budget.

Huebsch also said he was encouraged that Doyle was taking an active role in the budget.

"I intend to go there with the intention of resolving this budget and getting to a final answer, and frankly, I think it did require the role of the governor stepping in and recognizing that he must be a major player in the resolution of this," Huebsch said.

Huebsch didn't say that any thing was off the table, but specifically slammed the impacts the Healthy Wisconsin universal health care plan and hospital assessment would have.

Huebsch talked about the proposed increase on the tax on tobacco, but finished his remarks on it saying, "I realize that we don't get everything we want, and they don’t get everything they want."

Huebsch said the deal he would help broker would have the support of Assembly Republicans.

"I'm not worried about what I come out with not being approved by my caucus," Huebsch said.

Huebsch also said that the budget could be done soon, "by the end of this week" if Democrats realize his caucus won't support higher taxes and more increases in spending.

When answering if the Dem offer today meant that Healthy Wisconsin was no longer in the budget, Rep. Jeff Fitzgerald, R-Horicon, acted almost surprised.

"Off the table? I don't believe Healthy Wisconsin is off the table," Fitzgerald said. "It is fully on from the offer they gave us today," adding that the GOP would have to accept $1 billion in new spending.

Listen to the press conference here.

Doyle to convene lege leaders for budget summit

Saying that the state can't afford to go much longer without a new budget, Gov. Jim Doyle today announced that he will sit down the Senate Majority Leader Judy Robson, Assembly Speaker Mike Huebsch and others beginning Monday at the Executive Residence to hammer out a budget agreement.

"We all recognize that this has gone on way too long," Doyle said. "There are real deadlines that will make a real difference to the lives of the people of Wisconsin."

Besides Robson and Huebsch, the chairs of the conference committee negotiating the budget, a third, floating member of the committee will sit in on the talks. Who it is will depend on the issue addressed.

Asked if he will lock the legislators in the residence until they agree, Doyle joked, "I don't have the authority not to let them leave."

He added later, "We've got some extra bedrooms. I want them to stay as long as it takes."

Doyle indicated what some of his priorities will be in the negotiations, saying he will make it clear he will not sign a budget that cuts K-12 school funding, doesn't "adequately fund" the UW System, and doesn't include a "good strong medical assistance program" including expanded BadgerCare coverage.

See Huebsch's statement on Doyle's invitation here.

Listen to Doyle's remarks about Healthy Wisconsin and announcement of the budget summit here.

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

Meeting over

Gov. Doyle, Sen. Robson and Rep. Huebsch will be holding media availabilities in the next couple hours. Please check back for more later.

What's price of dropping HW?

How about $1.065 billion. That's the price tag LFB director Bob Lang put on the major funding proposals in the Dem offer, namely the cigarette tax increase, the nursing home bed tax, the Patients Compensation Fund transfer, and the hospital assessment.

Republicans are balking at the cost.

"In order to make this work we have to agree to over $1 billion in taxes? That's not negotiable?" asked Rep. Rhoades.

Sen. Jauch said the Dem offer recognizes that there are costs to health care reform. "You have to pay the bills, not just pontificate on the problems," he said.

Said Sen. Robson the Dems have removed what the Republicans identified as the major stumbling block. "The ball's in your court ... Let's get this budget rolling. We expect something back at least on BadgerCare Plus."

She encouraged the Republicans to come back with an offer on Monday.

Sen. Fitzgerald wasn't impresed.

"Whoop-de-do. You saved yourself from yourself," he said, adding that the plan was already doomed as pressure was building from all over to dump it. He also reminded the Dems that the date set by DPI Supt. Libby Burmaster for school funding numbers is in seven days.

Huebsch said the $1.065 billion in taxes from the Dems will be "alarming" to taxpayers. "Perhaps they've given enough?" Huebsch asked.

Huebsch also remarked on Robson's upcoming press conference, scheduled for 1:30. He said he could predict what she was going to say.

"I'm the obstructionist. I'm the one who's standing in the way to getting this budget done," Huebsch predicted Robson will tell the press.

Responded Robson, "Let me write that down."

Is this a trade?

Here's a link to the Dems' DHF offer.

Sen. Robson said the proposal is "a complete offer," and echoed a well-worn line from Rep. Huebsch.

"If you could remove a $15 billion tax increase, wouldn't you?" she asked.

"This is our offer, you can't pick and choose," she said.

Huebsch responded, "This is a trade? Is that what you're insinuating here?"

Robson responded that at the very minimum, the Dems will require that all children in the state are covered with health insurance, and all childless families are eligible for BadgerCare. To pay for it, she said, the Dems will insist on the proposed $1.25 per pack cigarette tax increase.

Huebsch said he will accept their withdrawal of Healthy Wisconsin. "But I am offering you nothing in return," he said.

Robson said in return for the removal of Healthy Wisconsin, the Dems seek some "concessions." If Republicans refuse to meet those concessions, "The whole world can see you don't want a budget," Robson said.

Doyle, Robson to discuss status of budget

Gov. Jim Doyle will hold a media availability today at 1 p.m. about the status of the budget.

Senate Majority Leader Judy Robson will also be holding a media availability today, at 1:30 p.m.

Healthy Wisconsin dropped in Dem budget proposal

Senate Democrats have pulled their Healthy Wisconsin universal health care plan from their budget.

Sen. Robson said the Dems are dropping it "in the interest of moving the budget process forward," and they are offering a DHFS package that includes the cigarette tax increase, the hospital assessment, and BadgerCare expansion and transfer from Patients Compensation Fund.

Robson said Senate Dems were "sick of the silence" and "sick of the status quo" from Republicans on health care.

She promised to continue talking about Healthy Wisconsin for the entire upcoming session.

Rep. Huebsch responded by saying he accepts their removal of the proposal, and said it was a move "many felt should have been made long ago."

He also rejected the idea that Republicans aren't talking about health care reform, pointing to their consumer-driven proposals. He said there is a "need for the American consumer and free market to take over."

He guaranteed a public hearing in the Assembly for Healthy Wisconsin if it is passed in the Senate.

Deal on Corrections?

Word is rippling through the chamber that there may be an agreement on a Corrections funding package. Stay tuned.

There's a familiar face

Conferees are still slow to arrive, but there was a familar face in the room - former Assembly Speaker John Gard has made an appearance.

Gard talked with LFB director Bob Lang, Rep. Kitty Rhoades, the only conferee to arrive so far, and AFSCME government relations rep Susan McMurray.

Strolling in, Sen. Bob Jauch, D-Poplar, greeted the former Republican leader warmly.

"I never thought I'd want John Gard back, but I do," he laughed.

One of the green-shirted AFSCME members who have been populating the meetings handed Gard a button as he got up to leave.

"Hey, that's great. Do you guys sell these?" he asked.

The button features a picture of current Assembly Speaker Mike Huebsch and reads, "And you thought Gard was an ---hole."

Where is everybody?

No sign of conferees or staffs yet. The meeting was scheduled to start at 10:30.

Shortest meeting yet

The committee has adjourned after just 25 minutes. Rep. Huebsch provided some feedback on the Dems' renewable package, saying the amount of the tipping fee increase is still a concern, and there are still questions about the transfer. But he sounded a positive note as he walked out.

"Every day we see more willingness to recognize that compromise means middle ground and not just a two-month process of having the Senators try to explain to us how bad our budget is," he said.

There were no comments off the topic of the offers except for Sen. Fitzgerald, who took the opportunity to again ask Sen. Robson to convene the Senate to take up the Assembly-passed school funding bill.

"We are really, really pushing the deadline on this now," he said.

Fitzgerald also said it's time for the Dems to drop Healthy Wisconsin. "Dump this plan and move forward," he said. "It is truly hampering the negotiations."

The committee will be back tomorrow at 10:30 a.m.

GOP answer on Corrections, OJA

The Republicans have countered the Dem offer for yesterday on the Department of Corrections and Office of Justice Assistance.

See it here.

Rep. Fitzgerald said the OJA/Corrections package is "99 percent of the way there." There are a few areas of disagreement yet to settle - youth aids, sex offender fee, green license plates for sex offenders, unit supervisors, and earned release program.

Renewables

The committee should be getting underway any minute. The Dems are handing out a proposal on renewable energy. See it here.

Sen. Jauch, who has worked on the issue, said it's a serious offer, pointing out that the Dems have lowered their proposal to increase the tipping fee, from the $10 per ton approved in the Senate budget to $8 per ton. The current rate is $3 per ton. Jauch said it will result in $43.5 million less revenue than the Senate proposal.

In addition, the proposal includes a reduction in the tranfer from the recycling fund, lowering it to $13 million from the Senate position of $33 million.

Labels: Renewable Energy

Last rites for Healthy Wisconsin in budget?

Republicans seized on comments Sen. Bob Jauch made about Healthy Wisconsin that appeared in two newspapers in his northern Wisconsin district, saying they suggest Dems are losing resolve to keep the plan in the budget.

But Jauch's chief of staff Dan Kanninen said this morning that some of the comments were taken out of context and Jauch and the Senate Democrats on the committee are not wavering in their support for the universal health plan.

The Superior Daily Telegram reported that Jauch "admitted that the Senate Democrats' 'Healthy Wisconsin' health care plan is all but dead."

"I won't take it off the table in a press conference, but it will be difficult to approve it in its present form, or any form at all," he was quoted as saying.

See the Superior Daily Telegram story here.

The story from the Ashland Daily Press used the quotes a little differently. See it here.

Kanninen said the "all but dead" line was an "editorial assumption" by the Daily Telegram, and did not reflect Jauch's comments in the phone interview with the papers.

Kanninen said Jauch acknowledges that there is strong opposition from Republicans for the plan, but Jauch and the Democrats believe the status quo on health care is unacceptable.

"Bob still believes in the plan strongly as does (Senate Majority Leader) Judy (Robson) and Senator (Russ) Decker," he said. "If there is some movement there (toward dropping it), it is certainly not from Senator Jauch."

Mike Prentiss, spokesman for Senate Minority Leader Scott Fitzgerald, R-Juneau, said the comments show the divide in the caucus and among the Dems at the conference table.

"It's very difficult to negotiate with people who can't seem to get their story straight among the three of them," he said, also noting that Gov. Jim Doyle has not endorsed the plan and that top aides to Doyle have said the plan will not be in the final budget.

Physicans run ad warning against compensation fund raid

The Wisconsin Academy of Family Physicians is running a radio ad telling listeners to call their legislators to stop a raid on the Patients Compensation Fund.

"Across Wisconsin, editorial after editorial and opinion pieces are urging legislators not to let the Governor and legislature take millions of dollars from Wisconsin's Injured Patients and Families Compensation Fund," the narrator says in the ad.

The ad started airing Monday and is going to run for two weeks, in the Janesville, Ashland/Bayfield, Madison, La Crosse, Kenosha, Beaver Dam and Eau Claire radio markets.

Listen to the ad here.

Mea culpa

Looks like today is the 15th meeting of the conference committee, not the 14th. Think I would know since I've been at all of 'em. Guess these things have tended to kind of run together. Maybe it's the "Groundhog Day" phenomenon Rep. Rhoades keeps referring to.

Pocan: Conference committee should look to JFC

Rep. Mark Pocan, D-Madison, points out in a press release that the Joint Finance Committee finished its version of the state budget in 14 meetings. Today is the 14th meeting of the conference committee, and there is no end in sight.

"My hope is that the committee can look at the Joint Committee on Finance votes and process as a sign that wo rk can be done in a bipartisan manner," said Pocan, a member of the JFC.

See Pocan's release here.

Meeting No. 13 is a wrap

Exchanged offers on general fund taxes and corrections. GOP urged passage of school funding bill and Dems to drop Healthy Wisconsin. Dems ripped the the separate school funding bill for creating a $115 million hole in the Assembly budget and bashed the GOP budget for narrowing Homestead Tax eligibility.

As Rep. Rhoades said, "Ladies and gentleman, welcome to August." In other words, not a lot of new ground tread or visible progress.

Tomorrow's meeting has been postponed 'til 2 p.m.

Doyle: Huebsch and Robson closer together in some ways and in some ways further apart

Gov. Jim Doyle said Senate Majority Leader Judy Robson and Assembly Speaker Mike Huebsch are in "some ways closer together and in some ways further apart," after meeting the two separately in his office.

Doyle also said it's a good sign that Assembly Republicans made a move to come closer together on K-12 education.

"The fact that the Assembly Republicans made significant movement on education ... is good news," Doyle said. "I think playing the game of trying to stick it by one house, stick it to the other isn't a particular healthy exercise. ...There's good news in it and bad news in it."

Speaking with reporters after the Building Commission met, Doyle gave a cool response to the Senate Democrats' "Healthy Wisconsin" plan, saying he doesn't want to "get into the game of publicly saying what one side should do now and another side should do."

"I've said all along what I want to get done in this budget is our good, responsible BadgerCare Plus proposal," Doyle said. "And those are the things we can get done. That's what I want to get into the budget."

Doyle said some major issues still loom without a budget, including property tax increases and funding financial aid grants.

He said they still need to make compromises and the state functioning without a budget is "just a fiction."

Doyle said he planned to talk with both Robson and Huebsch again Thursday.

Listen to more of Doyle talking about progress in the budget with reporters this afternoon here.

Dems not letting up on Healthy Wisconsin

It was rumored that the Senate Dem conferees would come away from caucus and drop their Healthy Wisconsin plan, but that isn't happening, at least not here at the table.

Republicans on the committee continue to bash the plan. Sen. Fitzgerald said Healthy Wisconsin is "absolutely hampering the ability to move forward on these budget negotiations," and asked Sen. Robson to fill them in on where it stands.

"Is it a bottom line?" he asked.

He cited a newspaper quote from DOA deputy secretary Dan Schooff saying that the plan will ultimately not be part of this budget.

Robson said the Republicans can continue to treat Healthy Wisconsin as the "boogeyman for everything," but families and businesses continue to see rising health care costs, and health care still remains the top issue for many. She didn't offer any sign she was budging.

Rep. Huebsch said Healthy Wisconsin is just the first piece that has to fall before budget agreement. "Once that's removed we can get back to the discussion of the other problems with Governor Doyle's original budget," he said.

Sen. Decker said Healthy Wisconsin will save money for the state,, and it's served another purpose. "We for the first time have got you guys talking about health care cost containment."

Prisons package

Sen. Decker said he and Rep. Fitzgerald have been negotiating this budget area, and the offer linked to below is the most recent Dem offer. He said the proposal saves $2.1 million in the Office of Justice Assistance, and $4.3 million in Corrections.

There are four issues in the Dem offer that have not been agreed upon by the two sides, but he didn't elaborate on what they are.

Fitzgerald to Robson: Now you are the obstructionist

Sen. Fitzgerald had a pointed comment for Sen. Robson.

"As of five o'clock yesterday, you may have become the obstructionist in this process," he said.

Pointing out Rep. Kreuser's vote for the school funding bill, Fitzgerald said the Dem conferees are split. He said his 15 Republican Senators are ready to pass the bill at any time, and they would need seven Democrats to make it a veto proof majority, as with the 70 votes in the Assembly.

Earlier, Robson said the Senate could take it up, but it would be amended to include more aid for Milwaukee schools. The amended bill would have to go back to the Assembly, and would likely be rejected, putting the entire process back at square one, she said.

GOP has own proposal - on taxes

Republican conferees came to the table armed with a proposal on general fund taxes. Their offer - current law on a list of 11 taxes.

Notable is their position on the real estate transfer fee. The budget passed by the Assembly called to reduce the tax to $1 per $1,000 of a home's sale over the next four years, while Gov. Doyle proposed doubling it from the current $3 per $1,000 to $6 per $1,000. Republicans see their move on the transfer fee to the current law position as a compromise.

See the proposal here.

Conferees beginning to assemble

Should just be a matter of time now.

Dems are sporting a package offer on the Office of Justice Assistance and Department of Corrections. Will have the proposal up shortly.

UPDATE: See the offer here.

Still no sign of conferees

Sen. Robson stopped up a few minutes ago, dropped off some folders, and walked back out.

Perhaps I was a bit premature ...

Word comes now the Dems are still talking. Will be at least a half hour, maybe longer before meeting starts.

Late start

Three bells, and no signs of conferees. Dems are reportedly out of caucus, though, so it shouldn't be too long.

Huebsch speech may give hints to bottom lines

Assembly Speaker Mike Huebsch, R-West Salem, may have dropped some hints as to where he's drawing the line on taxes in state budget negotiations during a speech last night on the Assembly floor.

The reason there is a budget stalemate is because Senate Democrats have refused to back down on new taxes in the budget, Huebsch said. His caucus' stance against new taxes has been often reiterated and well-documented.

But while there are many tax increases in the budgets of Gov. Doyle and the Dem-controlled Senate, such as the cigarette tax and oil franchise fee, Huebsch singled out just three on the Assembly floor last night: the Healthy Wisconsin universal health care plan, the increase to the real estate transfer fee, and the hospital assessment.

Huebsch said Healthy Wisconsin will result in the largest tax increase in the history of the country and has been "lampooned" in columns and articles across the country. The proposal, he said, is "as dangerous as any I've seen introduced in this Legislature ever before" and said the Dems will "soon have to walk away and realize it was simply not ready for prime time."

He ridiculed the real estate transfer fee increase.

"As if the housing market is something that's going so strong that we need to tax it even more," he said.

Huebsch acknowledged the skyrocketing costs of health care, but said the hospital assessment is not the way to solve the problem.

"Under what scenario do you lower the costs for people by increasing the tax?" he asked.

He vowed Assembly Republicans will hang tough on the tax increases.

"There is one last bastion -- a group of people that will stand in the way of those tax increases -- and it is the Republicans in this house," he said.

Huebsch said Wisconsin's tax burden is the eighth highest of all the states.

Listen to audio of Huebsch's speech here.

Erpenbach says Healthy Wisconsin not to blame

Rumors have been swirling around the Capitol that Democrats on the conference committee are ready to jettison the Healthy Wisconsin universal health care plan to get the budget process moving. The Senate Dems are holding a caucus currently, and many speculate those will be the marching orders from the members.

But Sen. Jon Erpenbach, D-Middleton, one of the architects of the plan, denies that's the case.

"Republican leadership can continue to play games or they can work hard at the conference table to pass a state budget," Erpenbach said in a statement. "Healthy Wisconsin is not the last remaining issue on the table and it clearly does not stand in the way of progress. It is true that the Republicans are unable to talk about health care for the people of Wisconsin because they have no real proposal for health care on the table. But there are lots of other items the conference committee can resolve, blaming Healthy Wisconsin for the problems Republicans created in their budget is just a political game and do nothing drama."

Thursday meeting set

The conference committee has scheduled a session for 11 a.m. tomorrow.

The committee will also be in today at 3 p.m. Dem and GOP Senators are caucusing prior to today's meeting.

Press release reaction to Assembly vote

Republicans

Rep. Huebsch

Rep. Fitzgerald

Rep. Nass

Rep. Suder

Rep. Vos

Sen. Cowles

Democrats

Sen. Robson

Sen. Jauch

Local aids bill passes

The margin was more narrow than the school funding bill: 52-45.

Roll call

On the earlier school funding vote, Dem Reps. Hubler changed her vote to yes, and Boyle changed his vote to no.

School funding bill passes overwhelmingly

Passes 70-27.

Roll call

Boyle-ing over

Rep. Frank Boyle, D-Superior, gave a loud and spirited speech about the budget straits.

"We are elected to do one determined thing - to pass a budget in a timely manner," Boyle exclaimed.

He said the conference committee "can't put it together," and called today's move by Assembly Republicans "a delay tactic at best and horrible politics for our people."

He said the bill before the Assembly today "aren't worth addressing because this bill isn't reality.

Boyle, who last week introduced legislation to replace the conferees and hire an arbitrator to reach a resolution, again called for an independent firm to be hired to help negotiate the budget.

Assembly Majority Leader Jeff Fitzerald, R-Horicon, joked that he may be persuaded to support Boyle's legislation.

"If you lobby me a little harder, I might be with you on that one to tell you the truth," he said.

Fitzgerald then said the Dems on the committee were stalling the process, with the exception of Rep. Kreuser.

Victory lap

Rep. Huebsch said school districts must know by Oct. 15 what their state equalization aids will be.

"If they don't they will go to the property tax," he said.

Huebsch said the bill includes the funding numbers requested by the governor, SAGE expansion agreed to.

"You must get past your pride of 'we need all of our budget or nothing' and recognize that compromise has been reached here," Huebsch said.

Huebsch said he has heard the rhetoric and criticisms that this is a "do-over" budget for Assembly Republicans.

"Take every victory lap you want to take - just pass the bill," he said. "Let the property taxpayers know we hear them."

Help me help you

Assembly Minority Leader Jim Kreuser said he's disappointed the conference committee isn't in session today to negotiate the entire budget, and wants to have substantive talks with Speaker Huebsch about budget passage.

"Let me help you get a budget adopted," he said.

Kreuser, a member of the conference committee, also said he will vote for this bill.

Kreuser said while there have been many dates thrown around in terms of this budget, the one he's eyeing is Oct. 6, the date the budget negotiated former Assembly Speaker Scott Jensen and Senate Majority Leader Chuck Chvala passed.

"I sure hope we get our business done before those two did," he said.

Kreuser said the Assembly bill does not address problems in the Milwaukee Public Schools.

You think you can punish Milwaukee schools and still have a budget, and that's not going to happen," he said.

Labels: Kreuser

Overruled

Gottlieb ruled the point "not well taken."

Procedural arguments

Rep. Schneider and Rep. Sheryl Albers, R-Reedsburg, are having a debate on the merits of Schneider's point of order. Gottlieb still considering the merits.

Schneider is concerned about what constitutes "the budget," and said as is constituted in this bill any departmental budget could be deemed as "the budget."

He said this ruling is "vital to the future operations of the Legislature as an institution," and asks that the ruling of the chair be entered into the record in writing.

Key line from Burmaster statement

There is a key line from the statement from DPI Supt. Elizabeth Burmaster that has been the rallying cry to pass this legislation:

"If there is no budget agreement by Friday, September 28th, the DPI may be forced to use last year's budgeted figures, which will result in no statewide increase in general equalization aid for 2007-08."

The full statement.

No objection to reading, "dipping"

Dems did not object to second and third reading, or to "dipping" the bill in Joint Finance Committee.

Rep. Marlin Schneider, D-Wisconsin Rapids, raised a point of order, saying the bill was not properly before the Assembly because it has no emergency clause.

Rep. Mark Gottlieb, R-Port Washington, the Assembly's Speaker Pro Tem, said he'd take the point of order under advisement.

According to a Dem source, they will not offer any amendments.

Conference committee will meet at 3 p.m. tomorrow

Should be rolling shortly

Check LFB descriptions on AB 506 and 507.

Senate Dems say Assembly session is "political sideshow"

Senate Majority Leader Judy Robson, D-Beloit, and Sen. Bob Jauch, D-Poplar, lambasted Assembly Republicans for voting today on a separate funding bill.

Said Jauch, "Today's Assembly political sideshow is nothing more than a waste of time and an unfortunate distraction to sincere efforts to find real compromise in the state budget."

See Jauch's press release here.

Robson said, "If we're serious about getting this budget done, funding our priorities and ensuring real property tax relief, we can't afford to take days away from the negotiating table."

See Robson's release here.

Huebsch expects bipartisan support for school, local aids bill

Assembly Speaker Mike Huebsch is anticipating "substantial" bipartisan support for the K-12 education and local government aids bill before the Assembly today.

Huebsch, speaking with reporters during a break from the Assembly session, said the opportunities in the bill are threefold; providing school funding to allow administrators to set their budgets, resolving half of the spending in the entire state budget, and averting a $600 million property tax increase, which Huebsch called the most important feature.

Republicans cite a memo from DPI Elizabeth Burmaster saying lawmakers may need a budget agreement in place by Sept. 28 if they want school districts to get any increase in state aid.

See the Burmaster statement here.

"We knew we had the opportunity to stop that (tax increase). That's why this legislation is before (us,)" Huebsch said.

"We could not necessarily bargain with the Democrats nor could we dicker with them as to how we were going to resolve the K-12 budget in just a three week period," he said.

Huebsch, R-West Salem, said he hopes Senate Democrats decide to pass the legislation and pass it on to the governor, but so far the Dems have been resistant, saying they want to deal with the budget in its entirety at the conference committee table, and Gov. Jim Doyle has said he does not support "piecemeal" budgeting.

Rep. Kitty Rhoades, R-Hudson, said the legislation is a step toward compromise, an "adult move."

"Somebody has to be willing to move off the mark. We did it," said Rhoades, the co-chair of the Joint Finance Committee. "We took a giant step in accepting their numbers. This isn't about who's right, who's wrong. It's about moving forward and trying to get this done."

The Assembly is currently on break for partisan caucuses. Democrats in the Assembly could block today's legislation by either objecting to the "dipping" of the bill into the Joint Finance Committee, a move that must be approved unanimously, or by objecting to the readings of the bill.

Democrats say they are unlikely to do that, however, because it would only delay the bill and slow the process at the conference table. Huebsch said if Dems did block the bill today, he would special order it and schedule a Thursday floor session.

Assembly Majority Leader Jeff Fitzgerald, R-Horicon, expects pressure to mount on Senate Democrats following today's vote - internally and externally.

"In the next 10 days, with us passing this bill and with public pressure out there and school boards around the state saying this is a good move and school administrators coming out, I think Senator Robson right now is saying she won't be taking it up but I think there could be a great deal of pressure that comes along with us passing this bill," Fitzgerald said. "Especially if this bill passes overwhelmingly in the state Assembly, and that pressure will come from her members, because they're going to hear it back home."

Huebsch said passage of the separate funding bill "in no way" means his side is walking away from the conference table. He said with the Assembly increasing its funding of K-12 funding to meet Gov. Doyle's request, there may be cuts to other programs to make up the difference.

"There are opportunities throughout state operations to find the savings to put the priority on education," he said.

Assembly session will begin momentarily

Legislators are beginning to file into the Assembly chamber.

UPDATE: 11:24 a.m. - quorum call underway.

11:33 - Recess for caucus.

Dems choosing politics over taxpayers, Fitzgerald says

Senate Minority Leader Scott Fitzgerald, R-Juneau, said in a statement today that Senate Democrats are choosing politics over schools and taxpayers by not taking up the separate school and local government funding bill the Assembly will vote on today.

"The deadline to fund schools is now 11 days away and Senate Democrats are still insisting on $18 billion in new taxes that Republicans know taxpayers cannot afford. With no final resolution in sight, it is just plain irresponsible not to pass this critical part of the budget, especially when both sides have already mostly agreed to it," Fitzgerald said.

The Assembly is in at 11 a.m., but a lengthy Democratic caucus is expected.

See Fitzgerald's full press release here.

Labels: Sen. Fitzgerald

Dem counter proposal on K-12

The Democrats' counter proposal on K-12 moves $22 million from the Senate position on the revenue limit for school safety, and eliminates $5 million, the entire 2007-08 funding, from the Grants for Improving Academic Achievement for Milwaukee Public Schools. It also offers the Assembly position on SAGE program expansion.

See the offer here.

Meeting Adjourned

The meeting has adjourned, and though there was some movement by Dems on the K-12 package, there were no agreements set by the committee.

The Assembly will meet tomorrow to vote on the separate funding of K-12, shared revenue and levy limits. Sen. Robson suggested that the committee could meet again tomorrow if the Assembly wraps up business early, but that is unlikely. The committee will probably pick up its business on Wednesday morning starting at 10:30 or 11.

Dems come back with altered K-12 proposal

Democrats returned with a modified K-12 proposal, limiting math and science funding under aid to high poverty districts by $10 million and adopting the governor's position on school safety positions.

Sen. Robson says the two sides are now just $39 million apart on the $10 billion K-12 budget.

Breakin'

The committee is taking a half hour break to look over various proposals.

Fireworks

Sen. Jauch angrily objected to Rep. Fitzgerald's characterization of his remarks on the Assembly budget.

Fitzgerald was talking about tomorrow's Assembly vote, saying it would show residents "who's playing the stalling game here and who's not." He said today discussion of the education budget was misleading.

"Senator Jauch says we're doing nothing on special education," Fitzgerald said.

"I didn't say that," Jauch replied, interrupting him.

"Did you say zero? You said zero on special education," Fitzgerald said.

"I don't mind your distortion in what you have to say, don't distort what I have to say," Jauch said.

"Use the gavel," Sen. Fitzgerald said.

Sen. Robson had to lightly bang her gavel to bring the proceedings back to order.

UPDATE: Listen to the exchange here. (It occurs near the end of the clip.)

Listen to the Jauch comments Rep. Fitzgerald referred to here.

That's crazy

Sen. Fitzgerald urged Sen. Robson to bring to the floor the Assembly bill on separating school funding and local aids from the rest of the budget, saying anyone who has been following the committee is certain that the total budget can't be completed in 11 days.

"I've watched the committee function for two months now, and I think that's crazy (to believe the budget can be done in 11 days)," he said.

He said the Assembly action is a bright spot in the failure that has been the conference committee. "We're failing to deliver each and every time we meet," he said.

Labels: Sen. Fitzgerald

The art of compromise

Now that Assembly Republicans have agreed to 99.5 percent of the education budget forwarded by Gov. Doyle and the Democrats, Rep. Huebsch said the Dems' idea of compromise on schools is to get Republicans to give in on the last .5 percent.

"That's been your position from the beginning, and I don't see how you believe that is in any way compromise," he said.

The lack of bend from the Democrats on the remaining $52 million in spending that separates the two sides on education has Huebsch pessimistic about finishing the rest of the budget soon.

"I feel concerned and skeptical we can resolve the remainder of the budget in the next 11 days," he said, referring to the Burmaster deadline. "Even if we stay here Saturday, Sunday, holidays ... there has been no discussion of the $18 billion in tax increases."

Sen. Robson said the Dems are willing to negotiate what the funding number should be for the programs, "but the number should be there," she said.

Work week could expand

Democrats continue to push to step up the meeting schedule.

Sen. Jauch, who hails from the village of Poplar in northern Wisconsin, said he told his wife not to expect him home for a couple weeks as he and the conference committee continue to mete out a budget compromise.

"Her response was, 'Can't you stay longer,'" he joked.

Robson said she's prepared to meet Monday through Saturday, and Sunday if necessary.

Talk about aids for Milwaukee schools

Sen. Decker said the Aid to High Povery Districts proposal in the Dems' education budget offer is "a fairly progressive way to put more state aid into school districts continually hammered by high property taxes," particularly Milwaukee.

Rep. Huebsch called the program "brand new spending," and asked if the program, which disperses aid to districts around the state, is supported by Milwaukee Mayor Tom Barrett.

He also reminded the committee that the date set out by DPI Supt. Burmaster for setting state aid for schools, and said the Assembly will address it tomorrow by passing legislation that will head off "a huge property tax increase."

Decker said the compromise was reached with a group of Milwaukee state Senators, and said the cuts in shared revenue in the Assembly Republican budget have Barrett more concerned than the poverty program.

Give a little bit

Sen. Robson says both sides have given on education and tech colleges, and is hoping that the process can move forward today so agreements can be reached on the rest of those budget areas.

The differences between the Dems and Republicans on K-12 rest in the area of categorical aids, particularly sparsity aid for rural districts, special ed funding for low-spending districts, and poverty aid to balance the voucher program in Milwaukee, Robson said.

"We've given a lot, you've given a lot, and that's what negotiations are about," she said.

Labels: K-12 Funding, Robson

Where we left off

The meeting starts with seven members. Rep. Kreuser is not yet here.

The Dems offered a counter on tech colleges Friday. Here it is.

Meeting No. 12 off to slow start

The Republican conferees and staff are in their seats, but there's still no sign of the Dems. The meeting, which Sen. Robson will chair, was scheduled to begin at 1 p.m.

Fitzgerald still looking for answers about Healthy Wisconsin

Rep. Jeff Fitzgerald, R-Horicon, said in a press release this morning that he has yet to receive answers to 50 questions he posed to Senate Democrats on their "Healthy Wisconsin" universal health care proposal.

See the 50 questions here.

"The list of 50 questions includes a variety of detailed technical questions and information on the large number of computational assumptions," says Fitzgerald in the press release. "Unfortunately, I am anticipating a list of 50 answers to these questions simply repeating the rhetoric 'Why don’t you want everyone to have the same health care that you have?'"

See Fitzgerald's press release here.

Kreuser says Dems could help Huebsch pass budget

Assembly Minority Leader Jim Kreuser says he's talked with Assembly Speaker Mike Huebsch, R-West Salem, about offering Democratic votes to enable the budget bill to pass the Legislature.

"At some point, he's going to need some Democratic votes. I'm not going to hang him up," said Kreuser, D-Kenosha, in an interview with WisPolitics.

"I've talked about it and I've opened the door, to (let him) know that I want to work with him to get a budget done in Wisconsin," he said.

"I think we can get a few Democrats to help out," Kreuser said.

Kreuser said he expects a long caucus on Tuesday before the vote on the separate funding bill for K-12 education and local aids. Though he called the move "political posturing," he also expects some of his caucus members to vote for the package.

"There are some districts that may do very well by this, and those people ought to vote for it if it's good for their districts," Kreuser said.

Listen to the Kreuser interview here.

Labels: Huebsch, Kreuser

Doyle sees budget momentum

Checking in from his Chinese trade mission today, Gov. Jim Doyle said during a conference call with reporters that he is appreciates the Assembly Republicans' shift on K-12 education funding, and encouraged lawmakers to keep working to reach a full budget compromise. With hard work, the budget can be completed by the end of the week, he said.

"I think we've seen some significant movement," Doyle said from Beijing. "My view of this is it's long past due to get this done. With a good hard five days of work this week, we can get this budget done, but it does mean people are going to have to compromise. It's time now to make those compromises and get a budget in place. We are starting to see real consequences that are going to happen to the people of Wisconsin if a budget is not enacted."

Doyle reiterated his opposition to doing a piecemeal budget as Assembly Republicans have proposed. The Assembly goes to the floor tomorrow to vote on bills for funding K-12 and shared revenue, and establishing levy limits.

"There is really no way just take out one part of the budget and pass a bill on it because everything fits together," he said.

Labels: Doyle

Monday meeting

The conference committee will meet at 1 p.m. Monday.

Decker, Huebsch debate Assembly education proposal

Sen. Decker and Rep. Huebsch got into a heated exchange today over an LFB memo that shows if the separate legislation the Assembly will vote on Tuesday passed with the Republican Assembly budget, it would result in a negative statutory balance of $115 million.

See the memo here.

"Don't make it sound like you're the fiscal gurus of the state of Wisconsin when you're doing $115 million deficit spending," Decker said. "It's Herbert Hoover and George Bush."

"Thank you Senator," Huebsch responded. "We actually may be closer (to full budget agreement) than I thought."

Huebsch said if Decker is proposing that the Assembly Republicans vote to adopt the K-12 funding proposal, and then adopt the remainder of the budget put together by Assembly Republicans, "Senator, I accept that offer.

"I will pass your bill on K-12, I will pass the Assembly budget, and I will fund this."

"Mr. Speaker," Decker interrupted, "it's not our bill."

"Senator, you just said," Huebsch replied, "if I pass your budget on K-12, and I pass the Republican budget ..."

"No, no I did not," Decker said.

"Senator, I will get back to you in a moment, if I pass the Assembly Republican budget, ... and if I pass $85 million more on K-12 ... we are $115 million in the hole, I accept that offer. We will sit here and find that $115 million. I guarantee it. Let's do that Tuesday, this budget can be done," Huebsch said.

Decker asked if there were any Senate sponsors for Tuesday's bill. Huebsch replied there are none.

"So how is it all of a sudden the Senate Democratic bill if there's no Senate authors on the bill," Decker said, adding he could also extract any part of the budget and call it an Assembly Republican proposal. "That's exactly why we can't piecemeal this budget, because it's too interwoven between other parts of the budget."

Listen to the sound clip here.

Fitzgerald: Dems are obstructionist

Rep. Fitzgerald issued a press release following the conference committee rebutting Sen. Robson's earlier press release touting "99.5 percent" agreement on education funding.

See the press release here.

Labels: Rep. Fitzgerald

Conferees to return Monday

The eight members agree to come back to the table Monday. A time has not been set, but start time should be before noon.

Just in time

Just as the committee action is winding down, state Budget Director Dave Schmiedicke arrives. It's the first time Schmiedicke has been at the committee in person for several days.

Other representatives from the Doyle administration have been on hand over the last several meetings.

Fitzgerald: "Throw us a bone"

Rep. Fitzgerald said Democrats shouldn't be painting a rosy picture.

"We are no further along than we were the first day we sat at this table," he said.

Why? Taxes, he said.

"Where you guys at on the taxes?" he asked. "

Which one are you willing to move on, because i guarantee you if you leave all of them in there, $18 billion, we will not have a budget," Fitzgerald said.

Sen. Robson wasn't discouraged.

"Despite the naysaying of your rhetoric, we have made progress here," she said. "To get this budget done, we have to have a can-do attitude, not a can't-do attitude."

Labels: Rep. Fitzgerald

If you have to say you're not...

Sen. Robson spent several minutes on a discourse on why the Dems proposal on tech schools is better, reading a long list of businesses that sent letters supporting funding for the institutions.

"I'm not fillibustering," she said after roughly 10 minutes.

"Mr. Speaker, we can not cut their (tech school's) base by $31 million," she said finally.

Kreuser says property tax deadline isn't "magic date"

Rep. Kreuser said the Sept. 28 deadline set out by DPI Supt. Elizabeth Burmaster isn't a hard deadline.

The date was mentioned by Burmaster as a deadline for when she needs to inform districts about general aids levels. But Kreuser says she doesn't send those figures to the districts until Oct. 15.

"I appreciate the sensitivity of the speaker (Huebsch) to the superintendent's workload," Kreuser said. "But there isn't a magic date."

Republicans continue to ask why take any chances?

"If you could avoid a $600 million tax increase, why wouldn't you?" Huebsch has asked repeatedly.

That said, Kreuser admitted that there could be a number of people in his caucus that will vote for the Republican bill on school funding and local aids on Tuesday.

Frustration vs. optimism

Rep. Fitzgerald said he is frustrated and disappointed by Democratic proposals on K-12.

"I guess I don't know what middle ground is," he said.

"It's disappointing for us to sit at the table and take an offer that spends more money. How is that middle ground? How is that compromise?" he asked.

Fitzgerald added that he's "getting frustrated to even sit here."

Sen. Robson again took a glass half full approach, saying the LFB has informed her that the committee has agreed on 99.5 percent of the K-12 budget.

"What we're haggling over is a half percent," she said.

"Doggone it, let's be a little positive here," she said.

Sen. Grothman agreed and thanked the committee for allowing him to participate, sort of.

"I'll concur with Sen. Robson, it's been a blast," he said, with all the dryness he could muster.

Committee returns with K-12 proposals

The committee is back in session with a Republican counter proposal to the Democrats counter proposal on K-12 funding.

See the GOP counter here.

Rep. Huebsch says the Republicans can't accept the Dems K-12 offer because it spends $7 million more than the budget the Senate passed in June.

"We've already given you $85 million," Huebsch said, referring to the Republicans education package that raises their proposal on school aids from $150 million to $235 million.

Labels: Huebsch, K-12 Funding

Robson says two sides really close on education

Sen. Robson issued the following statement just before the conference committee reconvened:

“Through our give and take at the conference committee table, Republicans have said they’ll support education funding levels provided in the Senate Democratic budget. As talks continue Friday, we’ve already worked in a bipartisan fashion to resolve 99.5% of the public education budget.

That equates to $9.5 billion in education budget agreements. The remaining one-half of one percent (0.5%) of the K-12 spending differences are in the process of being resolved.

Two days of hard work and trading offers at the budget table have resulted in Democrats and Republicans making the kind of progress I knew we were capable of once we sat down and real negotiations began.

Real work at the table is netting real results. If we stay at the table, continue this dialogue, and make progress at the rate we are, this budget could very well be completed in its entirety within the next two weeks.”

Labels: K-12 Funding, Robson

Break 'til 2 p.m.

The conferees will be back at 2 o'clock.

Jabs continue

Rep. Fitzgerald continued to jab at the Dems, charging them with delaying progress in the negotiations all summer, and rejected the idea that the budget could be wrapped up in a couple weeks.

He said the Dems refusal to back down from the new taxes in the budget continue to drive the two sides apart..

"Give us one tax today, just one," Fitzgerald pleaded. "Or maybe Healthy Wisconsin is what you give us today."

Sen. Jauch tried to pull the committee back to the education proposals, telling Fitzgerald, "I think you ought to drink water instead of acid."

What about JFC?

Sen. Decker is incredulous that the Assembly Republicans are planning to take their K-12 and local aids bill, called the Property Taxpayer Protection Act, to the floor without first bringing it through the Joint Finance Committee?

He asked why the Assembly would "end run" JFC. He suggested it was "a way to give yourselves political cover."

"That type of conversation is supposed to be serious?" he asked.

Rep. Huebsch reacted quickly.

"Surely Senator you can't be suggesting the budget bill hasn't been in Finance Committee?" Huebsch snapped, pointing out the JFC had a series of public hearings around the state and weeks of meetings on the bill.

"We are not going to delay this to the point where we leave property taxpayers hostage in the middle," Huebsch said.

Rep. Fitzgerald responded with sarcasm.

"That's a great speech Senator Decker," he said, and pointed out that the Senate Dems Healthy Wisconsin proposal is a $15 billion proposal, and never received a Joint Finance hearing.

GOP tech school answer

See it here.

Where the action is

Sen. Robson sounded on a hopeful note, saying she hopes the momentum of tomorrow can carry over.

She pointed out that the Dems gave in on imposing a levy limit on tech colleges, though the proposals for the cap are different, with Republicans seeking a 2.6 percent cap, equal to the average growth in the tech college levy, and the Dems a 4.25 percent cap.

She said the two sides have 95 percent agreement on K-12, and she urged the Republicans to move today in the conference committee instead of Tuesday on the Asembly floor.

"This is where the action is," Robson said. "The real work of the budget happens right here."

An agreement on education would mean about half of the budget is completed, she said.

Rep. Huebsch was less sunny in his outlook, warning her not to give the perception that the two sides are nearing budget agreement.

"We are $18 billion apart on taxes," he said.

A cursory view of the Dem counter on education finds that they are proposing $50 million in "new additional spending on new programs," Huebsch said.

The LFB is walking the Republicans through the Dem proposal now, and the committee will likely take a break shortly so the two sides can absorb the offers.

Heat of agreement

Rep. Huebsch opens the meeting by saying the Assembly GOP will go ahead with plans to take a floor vote Tuesday on their separate funding bill. Scanning the Dem counter proposal on K-12 education, he said he is encouraged that there is movement.

"It seems we are in the heat of agreement here," he said.

He said he hopes the Senate will take up the bill after it passes the Assembly, and the governor signs it. Both of those scenarios are unlikely to happen.

Republicans also have a counter on tech schools. We hope to have it posted shortly.

Labels: Huebsch

Decker back in the house

Sen. Russ Decker, D-Weston, is back at the conference committee table today. Decker returned early from a long-planned vacation.

As he did yesterday afternoon, Sen. Glen Grothman, R-West Bend, is filling in for Senate Minority Leader Scott Fitzgerald, R-Juneau, who is on duty with the U.S. Army Reserves.

Dems have counter proposal on K-12 funding

See the counter proposal here.

Robson encouraged by budget talks

Senate Majority Leader Judy Robson called today's talks in the conference committee "proof positive the only way to get a budget done in a timely manner is by Democrats and Republicans to sit at the negotiating table and work together."

See her press release here.

Barrett derides GOP plan as a "sham"

Milwaukee Mayor Tom Barrett today slammed the Assembly Republican plan to pass K-12 funding and state aid to municipalities as separate legislation.

"Ironically, the Assembly has entitled their proposal the 'property taxpayer protection plan.' In reality, it's nothing more than a property taxpayer sham," Barrett said in a press release.

Barrett blasted the Republican plan for not including a $15 million across-the-board increase in funding for state shared revenue to municipalities.

See the full release here.

We'll be back tomorrow

Republicans say they need a while to look over the Dem counter proposal on tech colleges, specifically the levy limits.

The committee agrees to come back tomorrow morning, but a specific time hasn't been set as members have to clear their schedules.

Dems respond on techs

The Democrats have come back with a counter offer to the Republican counter offer on technical college funding.

See it here.

The meeting is back in session. Robson said she's "very encouraged."

Back at it

Sen. Fitzgerald will be out for the afternoon, to be replaced by Sen. Glenn Grothman. The Dems are getting an explanation of the tech college counter proposal from the Republicans. We hope to have an electronic copy of the proposal soon.

UPDATE: The Democrats are taking a 10-minute break to look over the GOP counter. Robson said she is "very appreciative" of the effort.

This type of negotiation is a first for the committee. It's the 11th meeting.

UPDATE 2: See the GOP counter here.

See the Dems initial proposal here.

Republicans return

They have a counter to the tech college offer the Dems put out this morning.

Decker's absence

According to his office, Sen. Decker had a long-planned vacation scheduled. He was willing to change his plans, but would have been out cash.

Dems return

The Dem members of the conference committee are gathering in te chamber. Rep. Huebsch said he would be getting the Dems a counter to their offer on tech colleges, and told reporters he would return if the Democrats wanted to talk about it. No sign of the Republican members yet.

Republican leaders meet the press

When the conference committee went to break, the four Republican members of the conference committee held a meda availability to talk about their property tax bills.

"We have unilaterally offered (the Democrats) their budget on schools, on shared revenue and on that property tax freeze that the governor signed two years ago," said Rep. Huebsch. "We are providing that to them and asking nothing in return."

Listen to the press conference here.

Break time

Committee is out 'til 2 o'clock.

Optimistic Robson

Sen. Robson, who is chairing the meeting today, has asked for a break until 1:30 p.m. to allow the Dems to look over the Republican bills, and for the Republicans to look over the Dem tech college proposal.

She said the committee should be able to come up with an agreement by tomorrow or Monday at the latest on K-12 funding, and said if momentum keeps building the rest of the budget could be agreed to in the next couple weeks.

Nowhere close

Rep. Huebsch said even though the Republican bills to fund education and local governments are at levels in Gov. Doyle's budget and the budget of Senate Dems, there is still a lot of work to do.

"We are nowhere near an agreement on how much we're going to increase spending," he said.

Rep. Rhoades said the GOP's opposition to tax increases in the budget is not "bumper sticker politics."

"We're not just here role-playing so we can have something to watch on WisconsinEye," she said.

Why wait 'til Tuesday?

Sen. Robson wants to know why, instead of passing separate bills Tuesday, the conference committee can't negotiate the education and local government funding packages. She is offering to work through the weekend to come to agreement.

"I'm asking the Speaker - can we work today and tomorrow and resolve the differences? I ask you now," she said emphatically.

Huebsch didn't provide an immediate answer, but Rep. Rhoades said the Republicans can't accept the $18 billion in tax increases in the Senate budget, and said the Republicans "are the only ones that are being asked to compromise."

Republican senators ready

Sen. Fitzgerald said his caucus is ready to come to the floor next week to vote on the Assembly bills. He says after the three floor session days set for next week, (Monday, Tuesday and Wednesday), there are no more floor days scheduled until Oct. 23.

Sen. Robson replied that the Legislature can go to the floor at any time.

As for the Dems' tech college proposal, Fitzgerald said, "Rome's burning and you're coming up with these little proposals."

Labels: Sen. Fitzgerald

Do it now?

Sen. Robson is trying to get Rep. Huebsch to negotiate K-12 right now at the table. "Let's set aside the rhetoric," she said.

"This is where the official negotiation begins," Robson said.

Huebsch said if they resolve it today, "Will we be able to take it to the floor next week? An agreement by the eight of us does not guarantee passage in either house."

What qualifies as way back?

Rep. Fitzgerald asked LFB director Bob Lang if it was unprecedented for different parts of the budget to be broken apart and passed separately.

"I don't know about times way back - 35 or 40 years ago," said Lang, drawing laughs from the crowd.

Lang eventually replied that in the 1995 budget the Transportation budget was approved separately from the full budget.

Dice cup lifted

Rep. Fitzgerald said the ruse of Democrats calling Republicans obstructionists is up with the proposal Republicans are offering on K-12 funding. The offer adopts positions from the Dem Senate's budget and the governor, and the process can move forward if the Dems agree, he said.

"Today the curtain has been pulled back Senator (Robson)," Fitzgerald said. "The dice cup has been lifted, Rep. Kreuser."

Exercise in futility

Sen. Robson said the GOP plan to pass a separate bill is "an exercise in futility," and asked why Republicans haven't countered Dem offers on K-12 funding made last month.

"Instead you're going to blow up the budget process ... by negotiating with yourself and passing a budget make-up," she said.

Labels: Robson

Huebsch: We're giving you your budget

Rep. Huebsch said the Republican plan to pass separate legislation to address K-12 and local government funding is an attempt to head off a $600 million property tax increase.

"This is not a stunt," he said.

The Assembly bill includes a $235 million equalized aids increase for K-12, the amount that the governor and Senate Dems included in their versions of the budget.

"I'm giving you your budget," Huebsch said.

He said for the last two months Dems have been engaged in "delay tactics" as they rip apart the GOP budget.

He said the Assembly will pass the property tax-related bills on Tuesday.

Labels: Huebsch

Robson pushes for progress

Sen. Robson says the Dems are making a "real offer" today on tech college funding, and wants to know what it will take to get it done today.

"Let's have the story today be the progress we've made at this table," she said. "What is it going to take to get this deal done today, right here right now."

She said the plan of Assembly Republicans to pass a separate bill to fund schools and local governments show they're trying to get a "budget re-do." She bashed Rep. Huebsch for working and negotiating his own with caucus instead of negotiating with Dems. She likened it to "tapdancing on top of a treadmill."

"The budget's not going to get done in your caucus, the budget's going to get done at this table with discussions with the Senate," she said.

Labels: Robson

Republicans release K-12 school funding proposal

Republicans released their proposals on their K-12 school funding proposal and their property tax levies proposal.

- See the LFB memo on the K-12 school funding, school levy tax credit and shared revenue proposal

- See the bill draft of the K-12 funding proposal

- See the LFB memo on property tax levies under the new proposal

- See the bill draft for new property tax levy limits

- See the LFB memo on deadlines associated with property tax levies for school districts and municipalities

Meeting underway

Sen. Mark Miller, D-Monona, will be sitting in today for Sen. Russ Decker, D-Weston.

Bill drafts of the Assembly Republican proposals on K-12, shared revenue and levy limits are circulating. We will have them on the blog shortly.

Dems to offer tech school package

The Dems will bring to the table an package to fund tech schools. See their offer here.

Labels: WTCS

Robson: Senate will ignore Assembly GOP bill

Senate Majority Leader Judy Robson, D-Beloit, issued a terse statement on the Assembly Republican plan to take up separate legislation to address school funding, shared revenue and levy limits.

The statement, titled "Republican Budget Obstructionists Try New Stall Tactic," reads:

"This political stunt is an exercise in futility ridiculed by the Governor and it will be ignored in the Senate. It's orchestrated by a few on the fringe who believe covering their political backsides is more important than actually doing their job and getting a budget done.

"It's time for the Republicans to stop running away from their own budget they passed earlier this summer and sit down to get the job done.

"Republicans continue to waste time, say one thing and do another when it comes to working out a budget compromise.

"As more Republican legislators tout and celebrate the continued budget delay it's clear to see who's blocking Wisconsin schools, communities, and college students from having a state budget."

Labels: Robson

Assembly takes up property taxpayer protection act Tuesday

Assembly Speaker Mike Huebsch announced today that the Assembly will take up the Republican's "property taxpayer protection act" during a floor session on Tuesday.

The package that would break out K-12 funding, levy limits and shared revenue from the rest of the budget.

"Department of Public Instruction Superintendent Elizabeth Burmaster recently
announced that if legislation is not passed setting the level of state aid for local schools by September 28th, property taxes will increase significantly over the next two years," said Huebsch in a press release. "While the conference committee will continue working to finalize the rest of 2007-09 state budget, the Assembly will act immediately and vote on items to provide local schools and local units of government the state aid necessary to provide a quality education, needed services and to ensure local property taxpayers will be protected."

See the full press release here.

Labels: Huebsch

Decker rips GOP plan for separate legislation

Assembly Republicans will unveil elements of their legislation to fund K-12, levy limits and shared revenue from the rest of the budget at the conference committee meeting tomorrow.

The conference committee convenes at 10:30 a.m.

Sen. Russ Decker, D-Weston, is ripping the Republicans for the move, saying it means the GOP legislators have officially walked away from the conference committee table.

"This move is nothing more than a stunt to disguise the fact that the Assembly Republicans have walked away from the conference table because they refuse to compromise on their extremist budget," said Decker.

See Decker's press release here.

Labels: K-12 Funding, Levy_Limit, shared_revenue

Assembly Republicans to move ahead with separate funding bills

Assembly Republican leaders decided yesterday afternoon to move forward with drafting a package that would break out K-12 funding, levy limits and shared revenue from the rest of the budget, a source said.

Details of the package were still being worked out, including how much funding would go to K-12 and how the state aid would be divided between areas like categorical and equalization aids and the levy credit.

Gov. Jim Doyle and other Dems have rejected what they call a "piecemeal" approach to the budget. But Republicans say the package could put Dems in a difficult spot over school funding, especially with a deadline looming next month for the state to inform districts how much state aid they will receive.

Labels: K-12 Funding, Levy Limit, shared_revenue

30 organizations band together to ask for HSA tax deduction

The eight budget conferees received a letter today from 30 organizations, including Wisconsin Manufacturers and Commerce, the Wisconsin Counties Association, banking and health groups, urging them to include tax deductibility of Health Savings Accounts in the final budget.

See the letter here.

LFB: Tax collections increase 4.9 percent in '06-'07

The Department of Revenue collected $12.6 billion in general fund taxes in 2006-07, a 4.9 percent increase from the previous year, according to the Legislative Fiscal Bureau.

The collections exceeded projections by $22 million.

See the LFB report.

Meanwhile, Gov. Jim Doyle announced he will deposit $50 million into the state's "rainy day fund," which his office calls the first transfer of its kind in history.

See the press release from Doyle here.

Republicans mull K-12 funding legislation; Doyle weighs in from Tokyo

Assembly Republicans discussed in caucus yesterday the potential of moving forward on separate legislation to deal with K-12 funding, shared revenue and levy limits, according to sources.

The sources said no final decisions were made, as Republicans are waiting to see whether Democrats are willing this week to back off some of their proposed tax increases. If not, the Assembly will likely move forward on the separate legislation and could approve it within a few weeks.

During a teleconference from his trade mission in Tokyo this morning, Gov. Jim Doyle blasted the idea.

"I would never accept that and they know it," he said.

He said it would be impossible to allocate money for K-12 without knowing how much funding would be dedicated to higher education or other programs. He said the move by Republicans is "more posturing" and shows they're "not serious" about compromise.

Any legislation would have to be approved by the Dem-controlled Senate before it could reach the governor's desk.

Meanwhile, the administration is preparing in case the budget stalemate is not broken. Department of Health and Family Service Secretary Kevin Hayden released a contingency plan yesterday to cut Medicaid expenditures should a budget not be passed. (See a letter outline the plan here. See a spreadsheet detailing the cuts here.)

"The idea that you just keep on spending as if there aren't any consequences for it is just something you can't do," he said.

Hospitals and doctors bear the brunt of the cuts, he said, because "those are who the providers are. When you have to make cuts, that's where the cuts are."

Doyle has been criticized by Republicans for not being engaged in the process, but the governor insisted that his staff have been working day and night with conferees, and he has met on several occasions with legislative leaders.

A reporter questioned whether the governor could get negotiations moving by encouraging the Senate Democrats to drop their "Healthy Wisconsin" universal health care plan, but Doyle declined again to say he would interject himself into the bargaining at the conference committee.

"I'm not going to publicly get into making one side negotiate and not the other," he said.

Negotiations at an impasse, Fitzgeralds say

Budget negotiations are at an "impasse," Senate Minority Leader Scott Fitzgerald and his brother Assembly Majority Leader Jeff Fitzgerald, both members of the state budget conference committee, said yesterday during a WisPolitics luncheon at the Madison Club.

And as lawmakers struggle to reach a compromise, the Assembly GOP is seriously considering approving separate legislation that funds K-12 education and aid to local governments, Jeff Fitzgerald said.

The Assembly majority leader said the biggest sticking point continues to be taxes and accused Democrats of being unwilling to budge on the tax increases included in the governer's budget and the Senate Dems' budget.

"There has to be pressure that builds from the outside to really get a budget done, and I think members on both sides are not feeling that pressure yet," he said.

Scott Fitzgerald reiterated his belief that the executive branch "needs to be much more engaged, certainly needs to retreat from their position that the governor's original budget should be something that's considered as a document to work off of. And until the governor sits down at the table as an equal partner with the Legislature, I think it's going to be very difficult for us to strike any type of agreement on the state budget." The senator urged Doyle to sit down with Assembly Speaker Mike Huebsch and Senate Majority Leader Judy Robson.

Gov. Jim Doyle, in the midst of an Asian trade mission, has maintained he's fully engaged.

Scott Fitzgerald said if he had to bet, he believes there will be an increase in the cigarette tax included in the budget. But he said he'd be "shocked" if it was the $1.25 per pack increase proposed by Doyle.

"I would hope it would be very minimal. ... I know that there's members of my caucus that support the cigarette tax increase from a health perspective," he said.

Jeff Fitzgerald said similar dynamics exist in his caucus, but refused to say whether an increase will be part of the final budget.

Listen to audio of the luncheon here.

The WisPolitics Luncheon Series is sponsored by AT&T, WHD Government Affairs, Flaherty & Associates & Sonic Foundry.

Boyle: New conference committee members needed to end impasse

Time is wasting on the budget, says Rep. Frank Boyle, D-Superior, and he is proposing a joint resolution to replace the current eight members of the conference committee with new members.

Boyle says in a release that he realizes that the four new Democrats and four new Republicans might not resolve the budget "impasse," and is also proposing that a neutral mediator be brought in to engage in a binding arbitration.

See Boyle's release here.

Labels: Boyle, Conference Committee

Barrett: Pressure needs to be put on conferees

The Intergovernmental Cooperation Council, a regional organization of the mayors and town administrators from the 19 municipalities in Milwaukee County, unanimously passed a resolution yesterday urging the state Legislature to approve a budget free of unfunded state mandates and one that includes cost of living increases in shared revenue.

Dem Milwaukee Mayor Tom Barrett, who introduced the resolution, said it is "ridiculous" that the budget is nearly two-and-a-half months overdue and that municipalities and school districts are being hampered in their efforts to craft their respective budgets by the impasse.

"I think that unless there is pressure that builds from regular people and local governments, this may go on forever," Barrett said.

A copy of the resolution is to be sent to Conference Committee members and the senators and representatives representing Milwaukee County municipalities.

The measure passed with little discussion.

AFL-CIO enlist members to support Healthy Wisconsin

The state AFL-CIO sent an email to members yesterday urging them to contact their legislators and urge support for the Senate Democrats' "Healthy Wisconsin" plan.

AFL-CIO president David Newby was one of the architects of the universal health care plan.

"This is the first time in Wisconsin’s history that labor's goal of health care for all has made this much progress in the state legislature," says the email. "Unfortunately, Assembly Republicans omitted Healthy Wisconsin from their version of the budget."

The email also urges members to contact Republican members of the conference committee. The GOP conferees are "attacking labor and the public services we all need (like education) and are offering no real solution to our health care crisis," claims the email.

See the email here.

Hayden submits plan to cut Medicaid spending

DHFS Secretary Kevin Hayden's plan to keep the Medicaid fund afloat without a new state budget includes calls for a rate reduction for Medicaid/BadgerCare providers starting in January and continuing each month thereafter until the state budget is adopted.

Hayden came up with the plan following a request from DOA Secretary Mike Morgan two weeks ago. See Hayden's letter to Morgan here.

"Specifically, rates for all hospital services and physician and clinic services would be reduced by 35 percent," Hayden writes in the leter. "Medicaid is a small part of the payer mix for most hospitals, accounting for approximately 10 percent of charges for the average hospital. As an industry, Wisconsin hospitals posted record net income of over $925 million in 2006. Similarly, physicians have the ability to better absorb any necessary reductions as Medicaid makes up a smaller proportion of their patient mix."

See a spreadsheet of the proposed reductions here.

DOT says budget impasse will result in project delays

In a memo to Administration Secretary Mike Morgan, Department of Transportation Secretary Frank Busalacchi says a number of highway projects could be delayed in the next construction season.

Busalacchi says the projects that will likely be affected should a budget not be passed include:

Hwy 41 Oconto to Peshtigo
Hwy 10 Marshfield to Stevens Point
Hwy 53 Local improvements related to the Eau Claire Bypass
Hwy 41 STH 26 to Breezewood Lane
Hwy 41 DePere to Suamico
Hwy 26 Jefferson Bypass
Hwy 18 Prairie du Chien to STH 60

State highway rehabilitation and reconstruction projects will also be hampered, Busalacchi said. While the Marquette Interchange Project is fully funded with current resources, "the dual impact of inflation on the road construction industry, and FY 2007 funding levels will undoubtedly result in fewer contract lettings in FY 2008," Busalacchi writes.

Also affected will be highway aids to local governments, Busalacchi warned.

"By statute the Department is required to provide a General Transportation Aid estimate to local units of government by October 1st," Busalacchi writes. "Without an approved budget it is likely that the Department will use the FY 2007 base to generate those estimates."

Continuing at 2007 levels will have "significant impacts on local governments and possibly local property tax rates and service fares," according to Busalacchi.

See the memo here.

Dems ask for WHEG fund assurance

Dem Reps. Spencer Black, Joe Parisi and Andy Jorgensen are asking Assembly Republicans to pledge sufficient funding for the Wisconsin Higher Education Grant.

Eight south-central Wisconsin Dem Reps. sent a letter to the Assembly members of the conference committee asking for an agreement to allot more than $46 million for WHEG funding. That money would sufficiently fund grants to more than 4,700 students currently waiting for WHEG in the UW System, they said.

"It would not have to wait for the budget to be signed," Black said, noting that the grants could be sent out by the time tuition bills are due later this month, as long as there is assurance from the state that the funds will be there in the final budget.

Black said the Wisconsin Higher Education Aids Board, which administers the WHEG funds, had already dispersed the $39 million allotted for the grants in the Assembly budget. The $46.8 million would fund the students currently waiting for WHEG money, but still falls short of the $53 million in WHEG funding in the Senate budget, Black said. He called the pledge request "a very modest proposal."

But Mike Mikalsen, a spokesman for Assembly Colleges and Universities Chairman Steve Nass, R-Whitewater, said lawmakers need to reach an agreement on K-12 funding first.

"That affects hundreds and hundreds of thousands of families and students across the state, so you have to deal with that first," he said.

Mikalsen said while the WHEG waiting list was unfortunate, the students on the list applied after the deadline. He noted that some of the 4,700 may not have received WHEG funds anyway.

See the press release here.

See the letter to the Assembly conference committee members here.

Budget delay keeps Milwaukee city and county governments guessing on revenue projections

Milwaukee county and city governments are taking different approaches to planning their budgets with the state budget still in limbo, but each is faced with uncertainty with the state plan now more than two months late.

Both Milwaukee County Exec. Scott Walker and Milwaukee Mayor Tom Barrett have to present their budgets to their legislative bodies at the end of September, and the board and council must adopt budgets in early November.

See more on how Walker and Barrett are handling the situation in Milwaukee Notes.

Roadbuilders' poll shows support for "big oil" tax

The Wisconsin Transportation Builders Association began circulating a poll memo this week that the groups says demonstrates support for a new franchise fee on oil companies, and shows little political fallout for lawmakers who support it.

The survey found 51 percent of likely voters supported the proposed franchise fee on oil company profits to pay for transportation infrastructure improvements, even if it means higher gas prices. Forty-four percent were opposed.

Fifty-three percent of those surveyed said they would be more likely to vote for a candidate who voted to impose the tax, while 35 percent would be less likely.

The telephone survey of 500 likely voters was conducted by The Tarrance Group. The poll, conducted Aug. 12-13, had a margin of error of plus or minus 5 percentage points.

"There's no political fallout to supporting this. In fact, I think there's political gain," said WTBA Executive Director Pat Goss.

This summer, Wood Communications did a poll that found 82 percent of state residents believed the proposed tax would end up being passed onto consumers.

See the WTBA polling memo here.

See the Wood Communications release here.

Doyle shoots down "piecemeal" budgeting

Gov. Jim Doyle scoffed at suggestions that the conference committee working out a state budget compromise should reach agreement on K-12 funding alone.

"It's not even a serious idea," Doyle said. "You can't decide what you're going to put into this part of the budget without regard to what you're going to put into any other."

Assembly Speaker Mike Huebsch, R-West Salem, made the suggestion Wednesday, saying there were deadlines looming and the committee should work out compromises on school funding and aid to local governments first.

"Taxpayers should not be held hostage because we can't agree on Stewardship," he said.

Doyle, speaking yesterday to reporters following a press conference at TomoTherapy Inc. in Madison, called the tactic "another example of this unwillingness to do what they're supposed to do."

"They're supposed to adopt a budget, and adopting the budget means you're going to have to make hard choices," Doyle said.

Doyle added that he won't take the step of encouraging Senate Democrats to drop their "Healthy Wisconsin" universal health care plan in the interest of speeding the negotiations. And he said that he'll be available to address budget situations as he travels on his Asian trade mission.

He leaves today and returns on Sept. 18.

"In the modern world with Blackberries, I'm never going to be out of touch," Doyle said.

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

Assembly GOP to caucus on budget Monday

Assembly Republicans will caucus Monday at 1 p.m. at the Madison Club. Notices sent to caucus members said the purpose of the meeting is a "budget update and to discuss other issues."

Budget observers say the meeting may be a good sign for budget resolution, speculating the meeting could be a litmus test by leadership to test some proposals that are being distributed between the two sides.

Nass says students privacy being violated

Rep. Steve Nass, R-Whitewater, wants Attorney General J.B. Van Hollen to look into whether the UW System used confidential student financial information "to advance their political agenda in terms of influencing the current state budget process."

Nass cites recent media coverage of the plight of students waiting for financial aid as the budget process continues.

"The issue appears to be whether the UW System appropriately followed both federal and state student privacy laws in making the identification of these students public," Nass writes.

A spokesman for the AG's office said the letter is being reviewed.

See the Nass letter to Van Hollen here.

UW Alumni Foundation gets active on budget

A new Wisconsin Alumni Association budget mailer features pictures of Bucky Badger with this on red reverse type: "BUCKY needs your help!"

The mailer touts the Web site savebucky.com and has ready-to-mail postcards to local legislators.

See the mailer here.

Labels: UW_System

An interesting take on the budget stalemate

No State Budget Means Extra Cash For Some

LFB releases memo on estimated state support for school districts

The Legislative Fiscal Bureau released a memo detailing the estimated state support for school districts in the 2006-07 year.

The LFB found that 43.8 percent of school districts receive less than 65 percent of their funding from the state.

See the memo here.

"No tax" pledge

Sen. Robson made reference to 27 Republicans who have signed a Club for Growth Wisconsin pledge vowing to vote against "any and all efforts to raise taxes."

The list includes 21 GOP members of the Assembly and six from the Senate. None of the members of the conference committee signed the pledge.

Also signing the pledge are two Dem Reps., Sheldon Wasserman of Milwaukee and Bob Ziegelbauer of Manitowoc.

Wasserman has announced that he will be running for the Senate seat occupied by incument Sen. Alberta Darling, R-River Hills. Darling also signed the pledge.

See the pledge here.

Uneventful meeting is finished

The committee adjourned in less than two hours. No new packages were offered today. Even the rhetoric seemed half-hearted.

The committee adjourned without an indication of when the next meeting will be, but Rep. Huebsch made reference to next week. He sid he wants to continue meeting with Dem members to discuss agreements outside the committee room.

Mouthful

After Sen. Robson said she is concerned that the committee is "almost back to square one" with Huebsch's talk of "no budget or an a la carte budget," Huebsch responded that the Dems were trying "to put words in (his) mouth."

He said he is trying to emphasize that not reaching an agreement soon on K-12, shared revenue and local levy limits will have an immediate impact on property taxpayers.

"To suggest I am belittling any other part of this budget is simply false," he said.

Time to change horses?

Rep. Kreuser says the committee chairs should come back at 8 o'clock tonight with some agreements in place. He warned of dire consequences if there isn't some real sign of progress by the end of this week.

"We need to get rid of the show horses and get the work horses in here," Kreuser said. "We need to come to terms on the pillars of this budget."

He also ripped Huebsch for trying to negotiate an "a la carte" budget, referring to Huebsch's call to set K-12 funding and a local government levy limit while continuing to seek agreement on the rest of the budget.

"I think people in the state want a whole budget done," he said.

When is a tax not a tax?

Sen. Robson said that the Dems' Healthy Wisconsin plan does not raise taxes because it simply replaces what residents pay for their private health care premiums.

"If you call paying health insurance premiums taxes, we'll never get anywhere," she said.

She also defended the oil franchise fee as "not a real tax" because it goes after "big conglomerates" that have been "gouging" residents.

The cigarette tax is a "public health strategy" that prevents smoking and can be used to fund programs to help others quit. Fewer smokers mean less expensive health care for all, she said.

And the tax on hospitals proposed by Gov. Doyle and the Dems is a "way of leveraging additional federal money" for hospitals that have a difficult time recovering payment from MA patients, she said.

Rep. Rhoades challenged her assertions, saying that the Healthy Wisconsin proposal is indeed a tax because if you don't pay, the Department of Revenue will come after you to collect. And the plan raises payroll costs for employers, she said.

She also said that the hospital tax will increase the cost of health care for everyone because the hospitals will turn the cost back on to patients.

"We can not continue in this mindset that says we're going to raise taxes here to get more money from the federal government," she said. "That's a never-ending cycle."

Robson discouraged

Sen. Robson said it's hard to take Republicans on the committee seriously when they come to the table without an offer or a counter-offer to a Dem proposal. And she said she is "discouraged" by Huebsch's talk of a "no-budget scenario."

While there has been progress behind the scenes, she said Huebsch and the Republicans have been "disdainful" of the open process, and jabbed Republican members for calling the open meetings "a waste of time."

Huebsch responded that he merely wanted to point out that Wisconsin is not without a budget, "the agencies have money available to them," he said, but there are impacts to not setting a new budget in areas like education and local government levy limits.

"Taxpayers should not be held hostage because we can't agree on Stewardship," he said.

"There is an urgency that exists in a very small portion of the budget ... that doesn't exist in those other areas," he said.

Alarming situation

Sen. Robson is interrupted in the middle of her response to Huebsch by the regular 11 a.m. Wednesday fire alarm test at the Capitol.

Huebsch reminds conferees Wisconsin does have a budget

Rep. Huebsch opened the meeting by seeking to correct the notion that the state is currently budget-less.

LFB director Bob Lang, under Huebsch's urging, explained that until a new bill is passed, the state will continue to operate under the spending levels approved in the last budget.

"The idea that Wisconsin does not have a budget is false," Huebsch said.

Huebsch acknowledged there are looming implications of not passing a budget for property taxpayers as it relates to school and local taxes.

"We are a great distance apart as far as tax increases and expansion of government," Huebsch said.

But, he said, action should be taken on a levy limit for local governments and school funding, where there is a $20 million gap between the Assembly and Senate plans.

"There are direct impacts to property taxpayers if there is not action," he said.

Start time announced

The conference committee has set a start time of 10:30 a.m. for tomorrow's meeting.

Caucus members weigh in on budget with letters to leaders

Conference committee co-chairs Huebsch and Robson have received a slew of letters from their members reaffirming support for provisions in the budgets approved by their respective houses or, in a few cases, to reverse the caucus position.

Many of the requests obtained by WisPolitics pertain to issues specific to the author's district. Others asked to modify larger policy items. It's evident from the letters that the fate of the UW System is weighing heavily on some legislators' minds.

Rep. Sheryl Albers, R-Reedsburg, wrote Huebsch asking for more funding for UW-Baraboo, saying that five departments at the two-year campus in her district don't have tenured staff.

"With the Assembly version of the budget this year, the campus will not be able to replace any of those vacant positions creating an even bigger hole," she wrote.

Rep. Al Ott, R-Forest Junction, also asked for more UW funding.

"Faced with the important charge to pass a budget with no tax increases, the Assembly gave the System an increase commensurate with what we could afford in balancing our priorities," wrote Ott. "After hearing from officials from my local System campuses, however, I understand that this increase is not sufficient to continue present programs, let alone develop new educational opportunities for our citizens."

GOP Sens. Dale Schultz and Carol Roessler requested financial support for building projects at UW campuses in their districts.

In a separate letter, Ott asks Huebsch to support the governor's plan to increase the cigarette tax by $1.25 per pack.

"The increase would help cover rising medical costs for the elderly, poor and disabled, establish preventative smoking programs, and would decrease the number of people who now smoke," Ott says.

Sen. Dave Hansen, D-Green Bay and a member of the budget-writing Joint Finance Committee, sent seven letters to Robson, covering a range of requests from eliminating the 10-year window for veterans to use the Wisconsin GI Bill to supporting the ability of the National Railroad Museum to sell alcohol at events.

See the letters here:
http://www.wispolitics.com/index.iml?Article=103858

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WisPolitics Budget Blog

JOINT FINANCE COMMITTEE

Senate Members

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BUDGET LINKS

Saturday, September 29, 2007

Robson: Use current numbers in school funds certification

Doyle comments on budget talks

Friday, September 28, 2007

DPI will move ahead with last year's numbers

Nass: Assembly GOP position has not changed

No word yet on what happens when deadline expires

Budget talks not unlike buying a car, Doyle says

Budget deal is in range, Doyle says

Get your audio here

Doyle spokesman: "Significant progress" made

Thursday, September 27, 2007

Robson laments "lost day"

Huebsch offers full cigarette tax

Reilly, UW groups ask for full funding of UW System

Fiscal Bureau: AB 506 shows lowest property tax increase

Huebsch says GOP has conceded on cig tax increase

Kreuser: Huebsch not negotiating in good faith

The final countdown

Source: Dems offer to drop hospital assessment, keep oil franchise fee in latest budget offer

GOP caucus concludes Senate must take action on school funding bill

Fitzgerald urges for Senate action on school funding, slams Doyle

Walker presents budget to Milwaukee County Board

GOP leadership coordinates attacks on Dem school funding

Wednesday, September 26, 2007

Odds and ends

Wiley pleads his case

GOP Assembly to caucus tomorrow

Tuesday, September 25, 2007

Talks continue

WDC calculates $17 million spent during budget stalemate

Autism advocates push for mandate inclusion

Barrett lays out Milwaukee budget

Letters from an impasse

Nass: Assembly GOP could wait 'til Xmas to unwrap budget

Some odds and ends

Leaders meeting for second day

Club for Growth ad touts Assembly action

Monday, September 24, 2007

Doyle, legislative leaders begin budget talks

Friday, September 21, 2007

Robson says Healthy Wisconsin shall return

Huebsch happily accepts guv's invitation

Doyle to convene lege leaders for budget summit

Meeting over

What's price of dropping HW?

Is this a trade?

Doyle, Robson to discuss status of budget

Healthy Wisconsin dropped in Dem budget proposal

Deal on Corrections?

There's a familiar face

Where is everybody?

Thursday, September 20, 2007

Shortest meeting yet

GOP answer on Corrections, OJA

Renewables

Last rites for Healthy Wisconsin in budget?

Physicans run ad warning against compensation fund raid

Mea culpa

Pocan: Conference committee should look to JFC

Wednesday, September 19, 2007

Meeting No. 13 is a wrap

Doyle: Huebsch and Robson closer together in some ways and in some ways further apart

Dems not letting up on Healthy Wisconsin

Prisons package

Fitzgerald to Robson: Now you are the obstructionist

GOP has own proposal - on taxes

Conferees beginning to assemble

Still no sign of conferees

Perhaps I was a bit premature ...

Late start

Huebsch speech may give hints to bottom lines

Erpenbach says Healthy Wisconsin not to blame

Thursday meeting set