WisPolitics Budget Blog: March 2009

4:19 PM

Commerce release cost benefit analysis of film tax credit

In a cost benefit analysis released today, the Department of Commerce lists "fundamental flaws" in the film tax credit program, which Gov. Jim Doyle has proposed eliminating. Doyle wants to replace it with a $500,000 grant program.

Among their arguments is that the program as written creates incentive for contractors to hire out-of-state workers, and that it poses an unlimited liability for the state.

Comments from Joint Finance Committee members during agency briefings earlier this month indicated a strong amount of support for not ending the program after one year. JFC co-chair Mark Pocan, D-Madison, said an informal poll of the 16-member committee shows that there are enough votes to reinstate the program in the budget in some form, though details have yet to be worked out.

The 26-page report can be viewed here.

-- By Greg Bump

2:17 PM

Budget proposals blasted in ads

Wisconsin Manufacturers & Commerce radio is taking another shot at proposed tax increases in a new radio ad.

In the spot, a man says the proposed taxes and those already approved by the governor and lawmakers are almost $2.5 billion.

A woman mocks that it's "perfect timing for those monster tax hikes" and notes unemployment is almost 9 percent.

A man ticks off a list of taxes and says they even want to raise the cigarette tax again.

"When is enough enough for these people?" the woman asks.

"They're going to tax every job out of this state," the man answers.

The Wisconsin Petroleum Marketers and Convenience Store Association also released two 60-second radio ads that will air statewide during the next month opposing the governor's proposed oil company profits tax.

In one ad, the narrator ticks off a list of other names that could be used to more accurately reflect the proposal, including the "everyday Joe" tax since "that's who will end up footing the bill for extra prices at the pump."

"Call it whatever you like. Just don't call the franchise oil tax good for Wisconsin," the narrator says.

Listen to the spots in AdWatch.

-- By Greg Bump

1:21 PM

Speaking time shortened at JFC hearings

In the interest of shortening wait times at public hearings the Joint Finance Committee his hosting across the state, speakers are now limited to two minutes when there are more than 100 people signed up to speak.

Rep. Mark Pocan, D-Madison and co-chair of the committee, said the change was made last Friday at the hearing in Eau Claire. Speakers had previously been given three minutes each.

"We were getting a fairly high rate (of people leaving before they spoke)," Pocan said. "Some would get there by 9:30 in the morning and not speak by 5 in the afternoon. With the two-minute rule, people aren't waiting quite as long."

Groups of three or more get five minutes to address the committee.

The hearings continue tomorrow at Lawrence University in Appleton.

The final hearing is Friday at the municipal building in Cambridge.

The committee is considering a tentative date of April 16 to begin voting on the budget, Pocan said.

-- By Greg Bump

11:02 AM

Dem lawmakers eyeing change to coastal proposal

A move that the Doyle administration says is aimed at streamlining government has some Dem legislators and some enviros concerned about the implications for a program that receives $3.6 million per year in federal funding.

Doyle has proposed in his 2009-11 state budget transferring the coastal zone management program from the Department of Administration to the Department of Natural Resources. But what concerns some legislators, is that in making the change, Doyle's budget doesn't move three coastal management jobs from DOA to the DNR. The three positions have combined salary and benefits of $219,500.

The program, which has been under the DOA banner for 30 years, gets federal funding for projects like rebuilding coastal fishing piers, establishing and enforcing shoreline pollution and stormwater guidelines, and coastal access projects.

DOA spokeswoman Linda Barth says the transfer makes sense because the functions dovetail more naturally with programs administered by DNR, not the budget and policy concerns that are the province of the DOA.

Barth said there will be positions in DNR reallocated to perform the coastal management duties and that the move is part of Doyle’s strategy to streamline state services.

"We have to work more efficiently, and it won't jeopardize any of these programs," she said.

Pocan said the staffing issue could be addressed as the budget moves through the JFC or the Legislature.

"Leadership wants to fix the coastal management issue," said Pocan.

Anne Sayers, program director for the Wisconsin League of Conservation Voters, said the group would prefer seeing the program stay in DOA, where it has been very successful.

-- By Greg Bump

10:44 AM

Van Hollen says criticism of early release isn't political

Attorney General J.B.Van Hollen says his opposition to Gov. Jim Doyle's early release plan for some state prisoners isn't about politics.

On Sunday's "UpFront with Mike Gousha," Van Hollen noted that he waited until he addressed the Joint Finance Committee in mid-March to raise the issue publicly, saying he felt that then was the most appropriate time to do so.

Corrections Secretary Rick Raemisch defended the proposal on "UpFront," saying it would only apply to non-violent offenders deemed not at risk of committing additional crimes.

"Each individual that is eligible would have a risk assessment done on them," Raemisch said.

Van Hollen panned the proposal for "changing the rules in the middle of the game" and undermining the intent of judges' sentencing decisions and victims' expectations.

Raemisch disagreed that the state doesn't have enough resources in the community to work with those that would be released and said that 97 percent of all prisoners will be released eventually.

"You have to believe there can be positive change behind bars," Raemisch said.

See the program here.

-- By Greg Bump

1:44 PM

Capital budget includes $5 million for Bradley Center

Gov. Jim Doyle has proposed in his capital budget giving Milwaukee's Bradley Center $5 million over the next decade to help renovate the almost 25-year-old arena.

It is the first time a governor has requested state support to upgrade the facility, which is home to the NBA's Milwaukee Bucks and the basketball venue for Marquette University's Golden Eagles.

It currently plans $23 million in maintenance and upgrades for the facility, and Doyle's plan calls for $500,000 in general fund supported borrowing for the arena through 2019.

Doyle spokesman Lee Sensenbrenner said the request for the state funding came from the Bradley Center Board, which oversees its operation. In addition to being home to the Bucks -- which are owned by U.S. Sen. Herb Kohl, D-Milwaukee -- the arena plays host to a number of other events, Sensenbrenner said.

"This is a public center that has broad benefits to the community," he said.

-- By Greg Bump

11:35 AM

Doyle: Film tax credit "doesn't make sense"

Gov. Jim Doyle said this morning that the film tax credit program instituted by the state last year is "basically flawed" and there are other places to better spend economic development dollars.

Comments from Joint Finance Committee members during agency briefings last week indicated a strong amount of support for not cutting the program after one year, as Doyle has proposed. JFC co-chair Mark Pocan, D-Madison, said this week that an informal poll of the 16-member committee shows that there are enough votes to reinstate the program in the budget in some form, though details have yet to be worked out.

Doyle has proposed eliminating the program and replacing it with a $500,000 Commerce Department grant program. The film tax credit, touted as a job creator, became controversial when it was found that almost all of the $5 million in economic impact the film industry was estimated to have brought to the state last year was paid back in tax credits.

"Let's understand when you say tax credits we're talking about $4 million cash that comes out of state taxpayers," Doyle said today following a speech to state Emergency Management leaders in Middleton. "I think we learned that this law is basically flawed when that money is going to help pay director's salaries, who are making millions of dollars, whereas we're struggling to try to have the resources to make sure we can maintain manufacturing jobs."

Doyle didn't say he'd veto the tax credit if it's reinstated by legislators, instead saying he will have to see what comes to his desk. But he doesn't agree with those who say the program should be given a longer span than one year to determine its value to Wisconsin.

"We gave it a try and we sort of see what the result of it is, and I don't think most people in the state want to see $4 million going to big movie production companies at a time when we're struggling to make sure we're funding education and health care and trying to maintain manufacturing jobs in the state," he said.

-- By Greg Bump

2:32 PM

Budget Blog has left the building

Thanks to WisPolitics' Milwaukee Bureau Chief David Wise for covering today's hearing. On his way out, Dave reports that a group of about 50 people from Voces de la Frontera were getting ready to testify on issues related to immigration.

The Budget Blog will be at the JFC's public hearing on April 3 in Cambridge. In between, the JFC will make stops in Eau Claire on Friday, Ashland on Saturday, Racine on Monday and Appleton on Wednesday.

-- By Greg Bump

2:09 PM

JFC hears pleas to keep film tax credit

A steady stream of film credit advocates have been appearing for the committee, asking members to reconsider Doyle's plan to replace the credits with a grant program.

Robert T. Teske, executive director of the Milwaukee County Historical Society, noted that when "Public Enemies" was being filmed, the museum benefited from rental fees and $150,000 in restoration work related to it.

He also said the museum, housed in a historic bank, went from one of the "best kept secrets" in the area to a well-known location overnight.

Dave Fantle, spokesman for VISIT Milwaukee, also encouraged the credits be maintained in some form, as movies being made help benefit tourism in the region.

Others commenting on the issue noted that movie productions create a lot of high-paying temporary jobs, support collateral businesses, and boost spending on goods and services.

JFC co-chair Rep. Mark Pocan, D-Madison, told WisPolitics on Monday that an informal poll of members indicates the support is there to keep the film tax credit program in some form.

-- By David Wise

2:00 PM

Judge wants more money for TAD

Milwaukee County Chief Judge Jeffrey A. Kremers pressed for continued support of the Treatment Alternatives and Diversion program which he said has prevented 30,000 incarceration days in the state, and 22,000 in Milwaukee County alone.

Kremers said the program significantly and positively impacts young African American males, who are able to come out of the program without a conviction or felony record and have better chance at future success.

He also called for increased support of a program that provides additional information to assess risk during sentencing.

Kremers stressed the need to increase finding for the courts, but cautioned against increasing surcharges, which he said limits citizen access to the courts.

-- By David Wise

1:53 PM

Zepnick, UW-Waukesha student go at it over tuition break

Rep. Josh Zepnick, D-Milwaukee, and a UW-Waukesha student testifying before the committee got up in a minor dust-up over in-state tuition for the children of illegal immigrants.

Student Matthew Gutmann drew applause from the audience when he questioned the wisdom of offering the tuition break to children of illegal immigrants while other residents were struggling to get by in this economy.

After his comments, which also touched on lowering taxes and advocating against the smoking ban, also to applause, Zepnick, who attended as a guest, laid into him, saying "this is not a circus."

Zepnick who authored legislation to allow the tuition break, sarcastically commended him for being in college because it is a place to learn.

"You need to finish it," Zepnick said, pointing out that children of illegal immigrants born in the United States are citizens and it is their parents who are having trouble getting documentation.

"What you said is not factually correct," Zepnick said, adding that less than half a percent of students would get the benefit.

Rep. Pedro Colon, D-Milwaukee, who served as chair during the exchange, attempted to interrupt Zepnick, who replied that he didn't intend to say much more throughout the rest of the meeting before continuing.

Gutmann replied by suggesting Zepnick get out of his "ivory tower" and listen to what people are thinking about the issue.

Afterward, Guttman, who is a conservative blogger, told WisPolitics he was shocked to see how "overly aggressive" Zepnick was with him and that he felt disenfranchised by the confrontation.

He said it wasn't his intent to generate applause, but to share his opinions on the issues.

-- By David Wise

1:05 PM

Choice advocates spar with legislators

School choice advocates and legislators went a few rounds over increased regulations the schools would face under Doyle's budget.

Messmer Catholic Schools Principal Jeff Monday spoke out against the a requirement that schools in the Milwaukee Parental Choice Program take the state's standardized test, saying that schools already take nationally standardized tests and Messmer takes other tests more stringent than Wisconsin's.

He also said requiring schools to meet open meetings laws would add an extra administrative layer and do nothing to improve schools.

"We are not government agencies," Monday said. "We don't see how having open meeting will increase the performance of our schools."

Sen. John Lehman, D-Racine and a former public school teacher, questioned how the choice school's performance should be judged against public schools if if they don't take Wisconsin's test.

Monday noted that it's a matter of "who's driving the ship" and that perhaps the state should realign its testing to higher standards.

Rep. Peggy Krusik, D-Milwaukee, demanded to know whether the choice schools were wiling and able to provide the results of their test scores by grade and subject to the state, considering that the program has received $850 million in state money.

Monday replied that choice schools are looking at ways to demonstrate their performance. He said that test scores are just one way to show performance, and that parent satisfaction surveys and the continuation of a longitudinal study are other ways.

Rep. Robin Vos, R-Racine, asked whether the issue would be better handled as separate legislation and whether public schools should be asked to meet the same standards choice schools are being asked to meet.

"Yes and yes," Monday said.

Joining Monday with similar comments was Cindy Marino of St. Joan Antida and Denise Pitchford of CEO Leadership Academy.

-- By David Wise

12:22 PM

Looks like a long day for JFC

To this point, 340 individuals or groups have signed up to speak. Clerks registering the speakers estimate that even with speakers limited to 3 minutes each, the meeting could stretch to 8:30 p.m.

-- By David Wise

12:04 PM

Barrett says Milwaukee needs new revenue tools

Milwaukee Mayor Tom Barrett called for increased revenue tools, including a .15 percent sales tax for public safety and renewal of the 911 surcharge, to counteract a three-pronged hit the city has taken to its bottom line.

Barrett said the city's pension fund, which was funded at 131 percent, has taken a hit with the stock market crash and is now funded at 90 percent. This, he said, will require the city to contribute $30 million to $40 million to bring the funding back online.

Foreclosures are also up 50 percent in the city from 2008, resulting in a projected 5 percent decrease in property assements.

Additionally while Barrett thanked the governor for not cutting shared revenue to the city in the first year of the budget and a small decrease in the second year, he noted that shared revenue has remained flat for 15 years.

Barrett stressed funding for local roads, saying people care more about potholes than they do about expanding freeways, such as the I-94 reconstruction.

He also urged the committee to include Doyle's fix to the "school choice funding flaw," calling it the "first significant step" to address the issue.

-- By David Wise

11:43 AM

Milwaukee Co. Sheriff wants early release pulled from budget

Milwaukee County Sheriff David Clarke called for Doyle's plan to release some state prisoners early to be pulled from the budget and considered separately.

Clarke called it a "short term" solution to save money and that the state needs to look at a long-term plan that could include increased privatization and bringing back prisoners housed out-of-state.

Clarke said corrections reform is needed as the current system is "bankrupting" states and he doesn't dismiss Doyle's proposal out of hand. However, he said it needs to be part of a long-term solution and that takes into account costs that would be incurred by local communities.

Clarke said handling the prisoners' return to the community would represent an "extreme burden" in terms of dealing with recidivism and reentry services.

Clarke warned that recidivism rates approach 90 percent and addressed what he called the "myth of the non-violent offender."

"The people locked up for drug offenses are mainly dealers who belong to notorious street gangs," Clarke said.

-- By David Wise

11:08 AM

Legal community tells JFC of concerns

A number of those testifying called for increased access to legal resources and increase pay for prosecutors and public defenders.

Joan E. Zawikowski, vice president of the Wisconsin State Public Defenders Association, noted that low pay for public defenders makes them unable to pay back loans for the high cost of law school.

"With the high cost of law school, people are unable to engage in public service, like working for the public defenders office," Zawikowski said.

She also called for adjusting the indigency level for qualifying for a public defender, saying that the current level only allows people to earn $995 over a four-month period.

A representative from the Community Prosecution Unit in Milwaukee called for increased pay for prosecutors, saying turnover is too high and pay is too low to keep experienced prosecutors in the office.

Former Milwaukee County DA E. Michael McCann pressed for more funding of unmet legal needs. He requested the level be boosted to $3 million annually, while he said Doyle has proposed $2.5 million over two years. He said funding for unmet legal needs is needed to help an increasing number of people facing eviction and applying for government benefits for the first time.

-- By David Wise

10:29 AM

West Allis hearing draws hundreds

The JFC hearing is getting underway, with hundreds packing the main room and an overflow room at State Fairs Park's Expo Center.

A small group of protesters stood outside, voicing opposition to increased taxes, Gov. Jim Doyle's plan to release some state prisoners early and the fact that the hearing was being held on a workday. A Citizens for Responsible Government representative was on hand collecting information from people who want to volunteer with its planned effort to recall Doyle.

Sen. Jim Sullivan, D-Wauwatosa, addressed the committee and pressed for support of the $240 million investment over six years for UW-Milwaukee expansion plans and for support of the technical colleges and workforce development programs. Sullivan called for the committee members support a fix to the school choice "funding flaw" that Doyle included in his budget. He also pressed for bolstered funding for the justice system, which he said has 'been allowed to decay entirely too far."

Milwaukee County Board Chairman Lee Holloway thanked the Legislature for supporting the county's issuance of pension obligation bonds to lower its yearly pension funding cost. See Holloway's prepared remarks here.

He also called upon the committee to support its request for a 1 percent sales tax for parks, transit and EMS services and property tax relief, noting that a referendum in support of the tax won with 52 percent of the vote.

-- By David Wise

4:37 PM

Group seeks removal of Doyle negligence changes

A group that includes representatives from WMC, the Wisconsin Insurance Alliance and other business interests has sent a letter to lawmakers asking them to remove provisions from the budget that change negligence standards in civil court cases.

"The joint and several liability change in the budget repeals the reforms passed in 1995, which matched liability more closely to fault and fairness," reads the letter from the Wisconsin Civil Justice Council.

"The Governor's budget not only abolishes Wisconsin's bipartisan reforms, it sets forth a system even more radical than existed prior to 1995. Never before have we required someone to pay damages to another who is more at fault. Never before have we required the jury be told how their fault allocations affect awards. And never again should we require someone with as little as one percent fault to pay for 100 percent of damages."

See the letter and attached fact sheet here.

-- By Greg Bump

3:58 PM

Pro-transit group to rally at budget hearing tomorrow

The Coalition for Advancing Transit will rally at tomorrow's JFC meeting in support of Gov. Doyle's regional transit plans for southeastern Wisconsin.

See more here.

-- By Greg Bump

3:32 PM

Interview: Miller downplays major budget changes

Gov. Jim Doyle's budget includes "a lot of very serious cuts" to programs that concern legislators. But Sen. Mark Miller, the co-chair of the Joint Finance Committee that heard the complaints, cautions there's not much leeway for those objections.

"You've got to be realistic. When you don't have the revenue, you can't spend the money," Miller said Friday in a WisPolitics interview.

Miller also says he doesn't expect the committee to pull out policy items Doyle put in the budget, including the provision for domestic partnership benefits or the statewide smoking ban.

The Monona Democrat says elected officials' inclination is to raise the level of service while cutting taxes. But in this budget, they're in a very tough position: having to cut services and raise taxes.

"That's a very uncomfortable position to be in," he said.

See more here.

-- By Greg Bump

10:18 AM

Study paints dire picture of Milwaukee County finances

A new Public Policy Forum report paints a dire picture of Milwaukee County's fiscal condition, detailing how short term budget fixes have kept the county afloat without addressing structural problems, leaving the county's long-term solvency "questionable at best."

Milwaukee County Exec. Scott Walker said he's releasing a financial reform plan tomorrow that will address problems highlighted in the report, many of which Walker and the report note were brought up in Walker's 2006 "Budget Reality Tour" and by the state's task force on Milwaukee County's finances.

See more here.

-- By David Wise

4:13 PM

Testimony winding down

There are about 25 registered speakers yet to go. The crowd has thinned considerably in the last hour, though about 30 die-hards remain.

As with the last budget, the anti-smoking forces were at the hearing in big numbers. Also making a strong showing was the group of convenience store customers and workers opposed to the so-called oil profits tax.

In all, 134 individuals or groups signed up to address the committee today. Another 155 individuals filled out a registration card but chose not to speak.

The next public hearing is at 10 a.m. Wednesday at State Fair Park in West Allis.

-- By Greg Bump

4:02 PM

Don't raise birth certicate fees, clerk says

The Trempealeau County Clerk told the committee they should reject Gov. Doyle's proposal to raise fees on birth certificates

Doyle proposes a boost to the fee for issuing birth certificates from $20 to $22. The 2007-09 budget increased the fees from $10 to $20, but the increase was supposed to sunset on July 1, 2010. Also proposed is raising the fee for an additional copy of a birth certificate from $3 to $5. The fee increase is expected to generate $306,000 annually.

An attorney from La Crosse made his plea for more funding for indigent legal services.

A road construction executive from the region said more projects need to be planned outside of Milwaukee and Madison.

-- By Greg Bump

3:14 PM

Reaction mixed on prevailing wage

Feedback on the governor's proposal to expand the prevailing wage requirement has come on both sides of the issue.

A group of six men got up in support of the proposal, saying it continues in the tradition of fair labor practices stretching all the way back to the eight-hour workday law.

Two people have come to denounce the proposal. One, a construction business owner, said it will stifle economic growth and increase construction costs.

Representatives of the Sparta and Tomah Chambers of Commerce asked the committee not to cut funding for the Department of Tourism.

Two women blasted Doyle's proposal to extend the family planning waiver to males to provide contraception. One of the women said the provision is "an intrusion on parental rights" and "promotes promiscuity" among teenagers and "provides temptation to children."

"It tells them we expect them to be sexually active," she said.

Administrators from a number of school districts have spoken against the governor's plan to repeal the QEO. But speaking in support of repealing the QEO was WEAC President Mary Bell.

-- By Greg Bump

2:31 PM

They are not big oil

About 40 people grouped together behind Kwik Trip employee Jill McDonah to register their opposition to the so-called "oil profits tax" proposed by Gov. Doyle because of its "unintended consequences."

McDonah, a district manager for Kwik Trip from Galesville, said Kwik Trip is a family-owned business that takes good care of its employees, and the tax will reduce already small profit margins because it will be paid by the stores and passed along to consumers, not by oil companies.

"Big oil won't be paying this tax but all the consumers in this room will," said McDonah, who like the others here to oppose the tax, wore a t-shirt reading "I'M NOT BIG OIL."

She said the tax will "dramatically increase" the cost of supplying fuel to Wisconsin, and could effect the fuel supply in Wisconsin.

"Why sell gas in Wisconsin when you make less money?" she asked.

McDonah said instead of the oil profits tax she'd support a gas tax increase to help fund road improvements, as the former is intended.

She said a gas tax would provide "transparency and it would be easily accounted for. It's not a hidden tax."

-- By Greg Bump

1:10 PM

Pocan: Film tax credit will be restored by JFC

Rep. Mark Pocan, the co-chair of the JFC, told WisPolitics.com today that an informal count of committee votes indicates there are enough to keep a version of the film tax credit in the budget.

Gov. Jim Doyle's budget proposes eliminating the tax credit and replacing it with a $500,000 grant program. The film tax credit program has been controversial because in 2008 nearly all of the $5 million that flowed into the state economy from the film industry was given back in tax credits.

Pocan, D-Madison, said the details of how the program will look are still coming together, but he expects "something closer to what's there but with caps and other adjustments."

-- By Greg Bump

12:53 PM

Actors, Wisconsin natives urge restoration of film credits

Several of the state's notable Hollywood personalities are appealing to Gov. Doyle to return the state's film tax credits to the next biennial budget.

Tony Shalhoub, who starred in the USA series "Monk" and recently filmed the small-budget production "Feed the Fish" in his native Green Bay, wrote a letter to the Governor Thursday stating that filming in Green Bay was almost entirely due to the film credits put in place last year.

"We injected thousands of dollars into the community during the course of filming, and heard nothing from the locals but that our presence in the community was hugely stimulating, both economically and artistically," Shalhoub wrote.

Fellow actors and Wisconsin natives Bradley Whitford and wife Jane Kaczmarek also urged Doyle to restore the credits in a letter from earlier this month.

Read Shalhoub's letter

Read the letter from Whitford and Kaczmarek

-- By Andy Szal

12:50 PM

Enough taxes

A man named Dale drew some applause when he told the committee he's not only opposed to the increase in the handgun hotline fee, the program should be eliminated.

Doyle has proposed raising the fee from the current $8 to $30. Attorney General J.B. Van Hollen asked for a more modest increase to $13.

But Dale said the program isn't needed at all because the feds already provide it.

"I am taxed enough already," said Dale, who got some applause in support of his position. "Call it a fee increase or whatever. It still comes out of my pocket."

Another man, a bus driver from Tomah, also got some applause after he spoke against domestic partnership benefits for UW System employees. "The state needs to be promoting family, not living together and shacking up."

The Tomah bus driver also opposes the domestic partnership registry, and against embryonic stem cell research.

"We don't need to be killing more people. We've already got abortion," he said.

Also receiving the approval of the crowd for an anti-tax message was a man who said he operates a trucking company. He said with all the requests the JFC is getting for more spending, they should think about the taxpayer.

"It's time to start saying no," he said.

"I came here to ask that government please get out of my life and out of my business," he said.

He also complained about the high cost of government contracts.

"I wonder who's getting money under the tabel when these inflated contracts are awarded?" he asked.

Support for the statewide workplace smoking ban and cigarette tax increase remains a popular topic. But one man, who said he operates a convenience store, spoke against the tax increase. He said he supported the $1 per pack increase imposed last year, but with the federal government now also increasing the tax, it's getting to be too much.

Others have asked for more funding for independent living centers.

Sen. Dan Kapanke, R-La Crosse, is now present at the hearing.

-- By Greg Bump

12:27 PM

Audio of Van Hollen press conference

Attorney General J.B. Van Hollen held a press conference this morning prior to the JFC's public hearing in Sparta. Listen to audio of the press conference here.

-- By Greg Bump

12:21 PM

"Not big oil" forces growing

Those folks with the "I'M NOT BIG OIL" t-shirts are continuing to gather, and it is indeed an effort to oppose the governor's plan to tax oil company profits.

There are about 40 people here now sporting the bright red t-shirts. They are gas station owners and employees from central and southwestern Wisconsin. They will probably get their chance to speak in about an hour.

There are currently 122 individuals and groups signed up to address the committee. The committee is currently up to number 35.

-- By Greg Bump

11:32 AM

Oil profits tax opposition?

There are about two individuals wearing red t-shirts reading "I'M NOT BIG OIL" in large black lettering.

La Crosse County board member Tara Johnson, a Dem who challenged and lost to GOP Sen. Dan Kapanke last fall, told the committee "restore balance to sources of revenue," and that "we can not cut our way out of a budget."

Johnson advocated eliminating tax loopholes (combined reporting), restoring the estate tax, and increasing funding for the Department of Revenue to collect delinquent taxes.

Another former Dem legislative candidate, Gail Frie, who failed in his attempt to beat Rep. Lee Nerison, R-Westby, slammed the governor's plan to transfer cash from the recycling fund and to de-funding hazardous waste programs. Frie is the solid waste manager for Monroe County.

He said Doyle's budget maneuvers are "a direct attack on rural Wisconsin," and will increase costs for local governments and impact the environment. He said the fund transfers are "blatantly dishonest at the very least."

Some representatives from church groups are asking for more funding for drug and alcohol treatment and restorative justice programs, and to praise Doyle's earned early release program expansion.

-- By Greg Bump

11:18 AM

UW-La Crosse chancellor urges hands off reserve funds

UW-La Crosse Chancellor Joe Gow urged the members not to follow Doyle's recommendation to grab $25 million in UW System auxiliary reserve funds, saying that to do so will result in higher fees to students. Gow was proceeded by three UW-L students, who also addressed the committee.

A teacher spoke in support of increased funding in Doyle's budget for the SAGE program. Also taking a turn was the administrator from the Neillsville school district, and a school board member from Prairie du Chien.

Rep. Pedro Colon, D-Milwaukee, has arrived. Also here now is non-JFC member Rep. Lee Nerison, R-Westby.

Four JFC members, Milwaukee Dems Sen. Lena Taylor and Rep. Tamara Grigsby, Racine Dem Cory Mason, and River Hills Republican Alberta Darling, are absent from the hearing.

-- By Greg Bump

10:52 AM

JFC hears about tobacco issues

Support for the workplace smoking ban has dominated the early testimony to the JFC. Four speakers voiced support for the ban. Also mentioned are support for increasing the cigarette tax, which Doyle has proposed raising by 75-cents a pack, and more funding for the tobacco control program.

One woman rose to voice support for funding the Great Lakes Compact and clean water initiatives. A state public defender rose to speak on behalf of increasing funding for that office and for DAs.

One man spoke of support for more funding for worker training programs at tech schools. A UW-Platteville professor spoke in support of the collective bargaining rights for UW System employees.

A woman from Crawford County urged the committee to restore funding cuts for maintenance of town and county highways. A speaker from AARP praised Doyle's FamilyCare initiatives. A circuit court judge from La Crosse County is asking for more funding for legal services for indigent individuals.

-- By Greg Bump

10:28 AM

Van Hollen, law enforcement bemoan budget cuts

GOP Attorney General J.B. Van Hollen this morning continued his campaign against cuts Dem Gov. Jim Doyle has proposed to the Department of Justice budget, saying public safety needs to be the "first claim on our budget coffers."

Van Hollen was joined at a news conference in the Monroe County Courthouse by DAs from Monroe, Juneau and La Crosse counties, sheriffs from La Crosse and Monroe counties, police officers and victim witness professionals.

Van Hollen, who said he would not testify at the public hearing, ticked off a host of complaints about the proposed budget, including the early release of prisoners, less GPS monitoring of sex offenders and no additional money for district attorneys. He also criticized proposed cuts to shared revenue, saying they were not even and would impact the ability of some communities to pay for law enforcement costs more than others.

"Public safety needs to be the first claim on our budget coffers, not the only claim, but the first," Van Hollen said.

Karen Rengert, chairwoman of the Wisconsin Victim Witness Professionals, said the proposed changes to so-called "truth in sentencing" guidelines will negatively effect victims of crime.

"The purpose of government is to give services and protect its people, not broken promises to law enforcement and all citizens of Wisconsin," she said.

Monroe County DA Dan Cary said funding cuts to District Attorney and local law enforcement funding will make Wisconsin less safe.

"I think we need some recognition that we need help in law enforcement and in prosecution," Cary said.

Listen to the press conference here.

-- By Greg Bump

10:14 AM

Sparta hearing jam-packed

The Joint Finance Committee is beginning its first public hearing on the 2009-11 budget in Sparta. There are at least 250 people packing the banquet hall of the local American Legion Post, and about 100 have signed up to address the committee.

Rep. Mark Radcliffe, D-Black River Falls, Rep. Chris Danou, D-Trempeleau, Rep. Ed Brooks, R-Reedsburg, and Sen. Kathleen Vinehout, D-Alma, are in attendance along with the JFC members.

Each individual will get 3 minutes to make their remarks, and groups will be limited to 6 minutes.

-- By Greg Bump

6:00 PM

Burmaster done

And so am I. The Higher Education Aids Board and Wisconsin Technical College System are still coming up tonight.

Public hearings on the budget bill begin Monday in Sparta at 10 a.m.

-- By Greg Bump

5:26 PM

Shared revenue numbers finalized

An Legislative Fiscal Bureau out this afternoon details the shared revenue payments for Wisconsin municipalities under Gov. Doyle's budget proposal. The numbers vary slightly from those released by DOA last month.

See the new LFB memo here.

-- By Greg Bump

4:47 PM

LFB: Structural deficit will hit $1.6 billion by June 2013

A new LFB memo pegs the potential state structural deficit at nearly $1.6 billion by the June 30, 2013, under the proposals in Gov. Jim Doyle's budget.

A errata letter from the Doyle administration released earlier today put the deficit at $904 million by the end of that fiscal year.

According to the LFB, the structural deficit will be $713 million at the end of the first year of the 2011-2013 biennium, and $1.57 billion in the second year.

A copy of the LFB memo will be posted when an electronic version becomes available.

UPDATE: See the memo here.

UPDATE 2: The discrepancy in the structural deficit numbers released by the Doyle administration and the LFB is due to $295 million each year in Medical Assistance funding that is to be restored to a higher base level in the 2011-13 budget.

As the errata letter explains: "The Governor's budget includes provisions to restore the GPR base funding to replace federal recovery funds for school aids and shared revenue. However, the bill also inadvertently includes a provision directing the secretary of the Department of Administration to restore the reductions related to federal recovery funds by establishing a higher base level GPR funding for Medical Assistance in the 2011-13 biennium. Funding for Medical Assistance in the next biennium will be addressed during the next biennial budget development process when it is anticipated that revenue growth will return to more stable levels. If this provision is left in, the structural deficit for the 2011-13 biennium would increase by $295 million each year."

In short, the governor's estimate removes this $295 million per year from their structural deficit number. The LFB does not.

-- By Greg Bump

4:36 PM

I spin for no one, says Burmaster

DPI Superintendent Burmaster didn't mince words when Sen. Luther Olsen suggested that she was trying to put a positive spin for Gov. Doyle on a bad education budget.

"You're not in the cabinet. You don't have to spin for him. We've had that for three days now," Olsen said.

Burmaster replied, "I don't spin for anyone, and I never have in this position."

Olsen pointed out that Doyle's budget provides only 62 percent state funding for school aids, down from the usual benchmark of two-thirds.

But Burmaster said considering the economic crisis the state is facing, that the K-12 System got that much is a feat.

"Would I have liked more money in K-12?" she asked. "Of course, who wouldn't want more money in these priorities."

Burmaster said her daughter, a second-year school teacher in California, was laid off.

"I shudder to think what would have happened to public education" in Wisconsin had Gov. Doyle not made a strong commitment to it, Burmaster said.

-- By Greg Bump

4:17 PM

DPI Superintendent Burmaster in the hot seat

Corrections is done, now the Department of Public Instruction is under the JFC microscope. See DPI Superintendent Elizabeth Burmaster's prepared remarks here.

-- By Greg Bump

4:11 PM

Raemisch: I have a family too

Corrections Secretary Rick Raemisch said that he can't be 100 percent sure that none of the offenders who could get early release from prison under Doyle's budget proposal will re-offend.

But, he said, he is sure that the individuals who will be eligible will be set free eventually. And, the proposal Doyle has put forward includes treatment and programs that will reduce the odds that they will re-offend when they return to the community.

Raemisch made the comments following questions from Rep. Phil Montgomery, R-Ashwaubenon. He said the primary function of the Corrections system is to protect the innocent.

"How many more rewards can we offer to criminals before we fail the innocent victims?" Montgomery asked.

"If you don't believe that people can change, then everybody better start building (prisons) today," Raemisch said.

"I've got a family just like you, and I want them protected just like you," Raemisch said to Montgomery.

3:42 PM

Committee debates early release

Calling the Department of Corrections budget "one of the biggest red herrings" of these hearings, Rep. Mark Pocan, D-Madison, tried to counter statements made by AG J.B. Van Hollen about Gov. Doyle's early release plan making the state more dangerous.

Pocan asked Corrections Secretary Raemisch, a former Republican sheriff in Dane County, if early release "anything to jeopardize public safety" in Wisconsin.

"No it does not," Raemisch said.

Rep. Robin Vos, R-Racine, said Raemisch was being "loyal" and "doing your job defending the budget that was put forward." He asked Raemisch if there are some circumstances under which a felon should not be eligible for early release, particularly in cases of sexual assault of a child.

Raemisch said the wording of the bill may be confusing, but the fact is no felony sex offenders will be eligible for early release under Doyle's proposal.

"They would not be eligible for these programs. Period," he said.

-- By Greg Bump

2:59 PM

Administration releases errata letter

The Department of Administration has released its "errata letter," which revises or corrects certain language in the budget bill. The net result of the changes results in decreases to the general fund balance of $2.75 million in 2008-09, $7 million in fiscal year 2009-10, and $0.11 million in 2010-11.

The letter also reports that the structural deficit in the 2011-13 will be higher than originally projected by the Doyle administration, and will reach $904 million by June 2013.

Also noted is that the racial profiling data to be collected as part of the primary enforcment of seatbelt provision is exempt from open records law due to a requirement from the federal government. "It was not the governor's intent that these records be exempt from open records law," says the letter.

In a budget proposal that stirred some controversy yesterday in the JFC, the errata letter also clarifies that in his prevailing wage proposal, it is not Doyle's intent that prevailing wage rates be used for publicly-funded construction projects on owner-occupied residential property.

See the letter here.

-- By Greg Bump

2:37 PM

Transpo exits, Corrections steps in

Department of Corrections Secretary Rick Raemisch prepared remarks can be found here.

-- By Greg Bump

2:16 PM

Olsen: Cut one mile of new roads to keep DMV service whole

Sen. Luther Olsen, R-Ripon, isn't happy with proposals in the DOT budget to close 40 DMV service stations and to remove the requirement that vehicles bear two license plates.

Going to a single-plate requirement would save the state $795,500 in SEG funds over the biennium. Closing the service centers saves $852,200 over the two-year span.

Olsen said his constituents have the perception that they are getting less in services while fees are not being reduced. And law enforcement is wary of the proposal to require that would allow motorists to remove their front license plate.

DOT Secretary Busalacchi said the decisions all stem from the poor fiscal situation the department and the state finds itself in.

"We had to come up with some ideas for how to balance the budget," Busalacchi said.

"Cut one mile of new roads in the state to help these people," Olsen said. "That's all it's going to take."

-- By Greg Bump

1:41 PM

License plate questions

The DOT budget includes a proposal for a new endangered resources plate , with proceeds to go to the DNR's endangered resources fund.

The state already has one such plate, displaying a wolf, which is printed here. But the new proposed plate would be printed in Minnesota, which caught Rep. Cory Mason's attention.

Chris Klein, executive assistant to Busalacchi, said the new plates will be printed using "flat plate technology," which Minnesota has but Wisconsin doesn't. The process is similar to laser printing, he said.

Mason, D-Racine, asked why the plate can't be printed using the old, non-flat plate design.

"What was desired was something beyond the wolf plate, artistic-wise," Klein said.

As will all of Wisconsin's specialized plates, the new endangered resources edition will cost applicants an additional $15 issuance fee and an annual fee of $25 per year on top of the regular $75 annual renewal fee.

Sen. John Lehman, D-Racine, asked about the other new license plate proposed by Gov. Doyle, this one in honor of the Milwaukee Brewers. According to Busalacchi, 8,357 motorists are expected to buy the plate for their vehicle, bringing in revenue of $209,000 per year.

Proceeds from the Brewer plate will go to retiring the Miller Park stadium district debt, similar to a Green Bay Packer plate the state has sold since 2001 that benefits the Lambeau Field renovation.

To date, 27,349 Packer plates have been issued, though only 16,685 are currently in use, according to the DOT. The state had projected 40,000 plates would be issued in the first year.

-- By Greg Bump

1:16 PM

Darling: People aren't buying oil franchise tax

Sen. Alberta Darling, R-River Hills, says that people she talks to are skeptical that the state can impose a fee on gross revenues of oil companies without the companies passing the cost along to consumers.

The so-called oil company profits tax would collect $271 million over the next two years. The proposal includes "anti pass-through" provisions to keep the companies from increasing the sale price of gas. Republicans want Doyle to vow to repeal the tax if the anti pass-through provision is ruled unconstitutional.

Darling is skeptical that the tax can impose the fee ("In my district my constituents call it a gas tax," Darling said) without it hitting drivers in the pocketbook, and the companies will likely sue to void the tax.

With the volatile oil market, Darling said, it's a bad time to raise gas taxes.

"With all due respect, nobody believes that's possible," Darling said to DOT Secretary Frank Busalacchi. "You're going to be in court on this. Just tell the governor people aren't buying it."

Busalacchi said the state is in a dire situation, with revenues declining and road repair needs growing. The proposal is "the governor looking for ideas to come up with, 'How do we address these tremendous needs we have,'" he said. "We're dealing with this shortfall, and it gets greater every year."

Also, Sen. Julie Lassa, D-Stevens Point, registered her concerns with Busalacchi that too much of the work that used to be done by the DOT is now being done by independent consultants. She said constituents are forced to pay a lot more for the services that department staff used to do.

Busalacchi was sympathetic, but said with the state of the budget, his hands are tied.

"The bottom line is we don't have the people," he said, citing cuts in staff over recent budgets. "The governor has to make tough decisions."

-- By Greg Bump

12:43 PM

Transportation testimony begins

Department of Transportation Secretary Frank Busalacchi is now before the JFC to talk about his agency budget. His prepared remarks will be posted when they become available.

-- By Greg Bump

11:49 AM

Montgomery objects to landline tax

The DATCP budget includes a provision to assess telecommunications providers gross operating revenues and use the money to respond to consumer complaints.

Rep. Phil Montgomery, R-Ashwaubenon, said the assessment, which will effect landline phone users, will be disproportionately borne by the elderly.

"You are creating a new tax on senior citizens," he said.

DATCP Secretary Rod Nilsestuen said if Montgomery had a recommendation for how to spread it across all phone customer, including cell phone users, he'd be open to hearing it.

The assessment, to be collected by the Public Service Commission, will amount to $415,800 per fiscal year.

Rep. Pedro Colon, D-Milwaukee, said he thought the assessment was a good idea because telecomm companies "have been nickel and diming customers to death." He said he was recently told by his phone company that it would cost him $1.50 to get an extra copy of his own bill.

"I'm happy you're doing this," he said.

UPDATE: Here is Rep. Montgomery's calculations for how the telecomm assessment breaks down based on 1,600 annual telecomm complaints, the number received by DATCP this year. That means there are 4.3 complaints each day. If the state collects $415,800 from the fee per year, that's equal to $264 per complaint.

-- By Greg Bump

11:09 AM

DATCP first up

The Joint Finance Committee is ready to commence. The Department of Agriculture, Trade and Consumer protection will open the day.

Next up will be the Department of Transportation, then Corrections and Public Instruction.

See DATCP Secretary Rod Nilsestuen's prepared remarks here.

-- By Greg Bump

9:55 AM

Start delayed

The start of the JFC meeting has been postponed until 11 this morning.

-- By Greg Bump

6:40 PM

Committee calls it a day

Testimony from the Department of Commerce has wrapped up on the second day of agency briefings. The committee returns tomorrow at 10 a.m.

Coming up tomorrow are the departments of Transportation, Agriculture, Trade and Consumer Protection, Corrections, Public Instruction, and the Wisconsin Technical College System and Higher Education Aids Board.

-- By Greg Bump

6:19 PM

Colon has personal reasons for not being a fan of film tax credit

Rep. Pedro Colon, D-Milwaukee, offered a tongue-in-cheek explanation for why he's soured on the film tax credit.

Colon told the story of how he was approached by folks from the production of the Johnny Depp film "Public Enemies" about using his house in the movie.

"I thought, 'Cool, my house is going to be in a movie,'" he said, adding that his wife was "elated" at the potential of having the movie star in their home.

"Then they turned me down," Colon said, drawing laughs.

"I just want to say this colors the whole conversation on this movie tax credit," Colon joked.

-- By Greg Bump

6:07 PM

Forward Wisconsin was ineffective, Leinenkugel says

Commerce Secretary Leinenkugel said that marketing of state business ventures will be taken over by the new Division of Global Ventures within the department, and the effort will be headed up by Mickey Judkins.

Leinenkugel said it was a "difficult decision" to cut Forward Wisconsin, the state's marketing arm. But he said the program was "not effective" in marketing the state to business interests, and the new division will be better to "integrate with the new reality" of the marketplace.

-- By Greg Bump

5:41 PM

Is film tax credit being cut too soon?

Rep. Pocan, D-Madison, said the state may be too hasty in eliminating the film tax credit program.

Doyle has proposed killing the credit and replacing it with $500,000 in Commerce Department grants.

Pocan said "perhaps we're overreacting and there may be an in-between spot."

Rep. Robin Vos, R-Racine, Sen. Julie Lassa, D-Stevens Point, and Sen. Alberta Darling, R-River Hills, also lamented the elimination of the tax credit, and said perhaps the state should take a longer look before ending it.

Commerce Secretary Leinenkugel said the way the tax credit was written is "very expensive and not effective" in creating permanent jobs in Wisconsin. He said of the $5 million the film industry contributed to Wisconsin in 2008, 92 percent was refunded via the tax credit.

"The jobs created were not permanent jobs and many were brought from out-of-state," Leinenkugel said.

Pocan said the tax credit program may bring in more money down the road, however, included added tourism.

"It would do more to bring people to Wisconsin than a Bacardi slogan," he said, referring to the state's new "Live like you mean it" brand. The slogan has received attention because it was formerly used by the rum company, as well as other uses.

Pocan offered one more rip at the new slogan.

"If we borrowed a slogan from Bacardi for Tourism, maybe Leinenkugel's has something to borrow or Commerce," Pocan said. "I shouldn't have said that," he quickly added.

Leinenkugel left the position of vice president of sales and marketing for his family's beer company for the Commerce job.

-- By Greg Bump

5:36 PM

It's Leinenkugel time

Department of Commerce Secretary Richard Leinenkugel is the last agency head of the day to go before the JFC. His prepared remarks can be viewed here.

-- By Greg Bump

5:00 PM

Vos chides Miller

Rep. Robin Vos chastised JFC co-chair Sen. Mark Miller for his "unbelievable spin" about WMC and the state tax climate.

Vos, R-Racine, acknowledged while there are great things about Wisconsin -- he cited the workforce in particular -- he said there is much to be desired when it comes to taxes.

"We have a tax climate that is not friendly to business," he said. Gov. Doyle's budget would only make it worse, he said.

Vos also said that he will take his cues on the effect of taxes on business from WMC, which he referred to as the "state chamber of commerce."

Revenue Secretary Ervin retorted that there are many groups that monitor and try to improve the business climate in Wisconsin, "not just those that self-designate themselves to defend Wisconsin business. I do that every day."

Rep. Mark Pocan, D-Madison, jumped in to clarify the remark about WMC being the state chamber of commerce.

"The state chamber of commerce is not WMC," he said. He said WMC represents big corporations, not "mom and pop" businesses like chambers of commerce.

"I am a member of my local chamber of commerce," Pocan said. "I am NOT a member of WMC."

-- By Greg Bump

4:51 PM

Rep. Fitzgerald blasts Doyle tax increases

Reacting to an LFB memo earlier today that detailed $1.7 billion in tax increases in Gov. Doyle's budget proposal, Assembly Minority Leader Jeff Fitzgerald said raising taxes to balance the budget won't help working families.

Adding up the $1.7 billion in the two-year budget and the $1.2 billion in increases passed as part of the budget repair bill in February, that's $3 billion in new taxes families have to contend with, Fitzgerald said.

"Pulling nearly $3 billion out of the economy and sending it Madison will not create jobs," Fitzgerald said in a press release. "Democrats control all of state government and are increasing taxes to solve a state budget, not help the family budget or put people back to work."

Earlier today, JFC co-chair Mark Pocan sent out his own press release defending Doyle's budget.

-- By Greg Bump

4:50 PM

Doyle issues capital budget recommendation

The state would spend $1.4 billion on capital projects over the next two years under a recommendation Doyle forwarded to the Building Commission today.

The proposed capital budget, which will be taken up by the commission at its March 30 meeting, cut out $700 million in agency requests for various projects and is slightly more than the $1.2 billion in all funds the state spent in the 2007-09 capital budget.

The proposal includes $502.7 million in general fund-supported borrowing.

Officials from the University of Wisconsin System praised the capital budget proposal for its "great investment in our short-term and long-term economic growth."

The UW says the $194 million in state-supported bonding will allow the renovation or construction of 31 projects, including new facilities for the UW campuses in La Crosse, Oshkosh, Parkside and Superior.

See the capital budget recommendation here.

See the UW statement here.

-- By Andy Szal

4:28 PM

Miller says his blast at WMC was warranted

Sen. Mark Miller, who got a lot of press last month for ripping Wisconsin Manufacturers and Commerce at the group's Business Day in Madison event, said today that his criticism of the state's largest business lobby was "fair criticism."

Miller, D-Monona, who said in February WMC has long "badmouthed" Wisconsin's business climate, tried to "set straight the facts" about business and individual income taxes in Wisconsin with Revenue Secretary Ervin.

Miller said under Gov. Doyle, the state has moved out of the top 10 in tax burden, and is ranked 30th in terms of the cost of doing business.

"We have a very fair tax climate for business in Wisconsin," Miller, the committee co-chair, said.

While it may be true that in the past the state had a high individual tax burden, WMC "continue[s] to harp on the bad tax climate in the state," Miller said. "I don't think that's true."

Ervin said people often make too much of tax rankings, and what should be looked at is "the big picture" of the cost of doing business and the incentives offered to business in the state. He noted that growth in property taxes has been kept below inflation.

Miller said the tax changes in Doyle's budget address inequities of Wisconsin when it comes to capturing federal funds and getting money from non-state entities that benefit from doing business in the state.

-- By Greg Bump

3:59 PM

Now up: Revenue

Department of Revenue Secretary Roger Ervin kicked off his appearance before the JFC with a little off-the-cuff levity.

"Since we all agree on tax increases, I assume this is going to be a short hearing," he joked.

See Ervin's prepared remarks here.

-- By Greg Bump

3:36 PM

Break before Revenue

DWD is finished, now there will be a 15-minute break before the committee moves on to the Department of Revenue. Department of Commerce is also on the agenda for today.

-- By Greg Bump

3:09 PM

GOP members continue to blast prevailing wage

Republican JFC members are taking their turns whacking the prevailing wage proposal, calling it a "job killer" and that the administration is "ignoring the economic realities that face the families of Wisconsin today."

Rep. Mark Pocan, D-Madison, accused Republican members of spreading a myth that paying a prevailing wage will cause a massive increase in costs. Pocan added the cost difference between union and non-union workers is negligible and being blown out of proportion.

"I come from the trades," said Pocan, who owns a print shop. "I know that's not true."

GOP Sen. Alberta Darling urged Secretary Gassman to ask Gov. Doyle to reconsider the provision.

"Why do prevailing wage now?" asked Darling of River Hills, citing the current recession. "It's a job killer. That's what I'm told from a lot of my constituents."

Rep. Phil Montgomery, R-Ashwaubenon, also took his licks. He said the provision will proposal means increased costs to municipalities for building projects, which will either lead to tax hikes or fewer jobs and less economic growth.

"Who is it you listen to when making a policy decision such as this and the decision to bury it in a budget bill rather than as a stand-alone bill?" he asked Gassman.

Gassman said job growth and economic development are Doyle's top priorities, and said the governor's record on those issues "could not be stronger."

-- By Greg Bump

2:50 PM

Pocan praises guv's tax restraint in face of deficit

Rep. Mark Pocan, D-Madison, the co-chair of the JFC, put out this statement a few minutes ago defending Gov. Jim Doyle's budget. Here's the statement:

"Governor Doyle's proposed budget does not include an increase in the sales tax rate. It does not include an across-the-board income tax increase for the average family. Nor does it include a directed property tax increase. Given the state's $5.7 billion deficit, that alone is a significant accomplishment for working families in Wisconsin.

"As the budget process continues, we will continue to do our best to protect working families while balancing state needs."

-- By Greg Bump

2:34 PM

Prevailing wage or payback?

Gov. Jim Doyle's proposal to require contractors pay a prevailing wage for projects over $2,000 where public money is involved is nothing more than a reward to Dem political supporters, GOP Rep. Robin Vos said.

Vos of Racine said the provision is in the budget because Doyle "feel[s] the need to pay back unions that helped get Democrats elected," Vos said.

DWD Secretary Robert Gassman responded that she doesn't agree with that conclusion, but she understands the "political point" Vos is trying to make.

Gassman said the provision is to ensure fairness where public support is provided, and that employers on those projects follow the same standards applied to all public projects.

Vos said the provision will hurt job creation and economic growth. He also said there are consequences for homeowners who perhaps unwittingly own a home inside a TIF district, who will be subject to the new prevailing wage standard. As an example, Vos said "a retired couple" who has lived in their home for years would "pay double the cost for a new roof on their house."

Gassman said she wasn't sure she was understanding Vos' question, and offered to get back to him after looking further into the matter.

When Vos responded that it appears to him Gassman agrees that the provision would increase costs for homeowners, Rep. Mark Pocan, the co-chair of the committee, stepped in.

"I normally wouldn't interrupt but she completely didn't say that," Pocan said, drawing laughs. "It's amusing but wrong."

Pocan reminded Vos and the committee that they should be sure that they are asking questions of the agency heads, and that there would be plenty of time for debate later in the budget process.

-- By Greg Bump

2:17 PM

DWD under the microscope

Department of Workforce Development Secretary Roberta Gassman is now giving her opening remarks to the committee. See the prepared text here.

Yet to come this afternoon are the departments of Revenue and Commerce. Pocan said the committee will be taking a break after they're finished with DWD, and again reminded the committee members they should streamline their questioning because it's taken four hours to get through the first two agencies.

-- By Greg Bump

1:39 PM

Why eliminate Learnfare, Olsen wonders

Sen. Luther Olsen, R-Ripon, says that the governor's choice to eliminate the Learnfare program indicates that the state doesn't care whether children go to school.

Learnfare is available to dependent children age six through 17 whose parents are in the W-2 program. It requires that the children are enrolled in school.

Bicha said the decision to eliminate the program was based on a recommendation from the Legislative Audit Bureau that it was not achieving the anticipated outcomes.

"We should be innovative in Wisconsin ... but we also must recognize when something is not working and that it's OK to say it's not working," Bicha said.

Olsen said if the program was ineffective, a new program should be devised instead of just scrapping the effort.

"This tells me the state doesn't really care if these kids go to school or not," Olsen said.

-- By Greg Bump

1:13 PM

Grigsby: State reneging on promise to working families

Rep. Tamara Grigsby, D-Milwaukee, said that the state is "reneging" on its promise to families who were told that if they found work, their children would be cared for under the Wisconsin Shares program.

"When we told them to go to work, we said we'd take care of their children," she said.

Doyle's budget proposes holding funding for the Wisconsin Shares program at $375.7 million in each fiscal year, the same level as the current year.

Secretary Bicha said the governor "made difficult decisions," but tried to find a balance in funding the program in a difficult economic time. Bicha said Doyle's budget also seeks ways to fight fraud in the system and close loopholes providers are using to exploit it. He also cited the proposed quality rating system for daycare providers as a step forward in improving service for recipients.

-- By Greg Bump

12:37 PM

LFB memo outlines taxes in fees in Doyle's budget

The Legislative Fiscal Bureau released a memo this morning on the tax and fee modifications in the two-year budget proposed by Gov. Jim Doyle.

Here's the gist:

"In summary, the changes included in the Governor's budget would increase net taxes by $1,469,989,300 ($685,919,000 in 2009-10 and $784,070,300 in 2010-11) and would increase net fees by $237,745,100 ($97,046,800 in 2009-10 and $140,698,300 in 2010-11). In addition, measures included in the bill to enhance the collection of current taxes/fees would generate an additional $61,262,000 ($46,519,000 in 2009-10 and $14,743,000 in 2010-11)."

See the memo here.

-- By Greg Bump

12:26 PM

Testimony moves from Health Services to Children and Families

Department of Children and Families Secretary Reggie Bicha is now giving his opening statement to the committee. See the prepared remarks here.

Internet service has been restored in the committee room.

-- By Greg Bump

12:00 PM

Morgan prepared remarks

Text of Department of Administration Secretary Michael Morgan's prepared remarks to the JFC Tuesday can be found here. Morgan spoke mostly extemporaneously, so there will be differences in these prepared remarks and his testimony.

-- By Greg Bump

11:26 AM

Vos questions use of stimulus money in Medicaid

Rep. Robin Vos, R-Racine, questioned Secretary Timberlake about the use of one-time federal funding to pour $1 billion into the Medicaid program. Vos said the use of the one-time money for an ongoing expenditure would create a major budget hole in the future.

"You are building a budget that's unsustainable," he said, saying the administration will either have to raise taxes or dramatically cut services in the future.

-- By Greg Bump

11:15 AM

Robson rips Health Services budget

Internet connection remains down.

Sen. Judy Robson ripped the Department of Health Services budget for "passing the buck to counties" and wondered how counties can continue to provide "safety net" programs in the wake of state aid cuts.

Secretary Timberlake acknowledged that this budget poses "a significant challenge" to counties, who are being asked to meet higher service demands with less funding. She said the governor and department have tried to make decisions that "make the situation not as bad as it could have been. For all of us in the next couple of years, that will have to be counted as some measure of success."

Robson also expressed unhappiness with the 5 percent reduction in smoking cessation grants. Despite a 75-cent per pack tax increase proposal, Robson said, "not one penny goes to prevention."

Timberlake said the tax increase itself is a strong deterrent, especially to teens. She said after the last $1 per pack increase, calls to the state quit-line jumped dramatically.

She also said the workplace smoking ban proposed in the bill will prove a strong incentive for smokers to quit.

"In a time of limited resources, you have to make some choices," she said.

Rep. Gary Sherman, D-Port Wing, said while he doesn't oppose the cig tax increase, he wonders at one point high taxes will create a "black market" for "contraband" tobacco.

"At some point you reach a point where non-market things happen ... which would be a much bigger crisis than the one we have happening," he said.

-- By Greg Bump

10:49 AM

Technical difficulties - Updated with Sec. Timberlakes prepared remarks

The Internet connection is down in the JFC room. LTSB is working on the problem.

Department of Health Services Secretary Karen Timberlake is addressing the JFC. Committee members are now starting in on questions.

Her prepared remarks will be posted when they are available.

UPDATE: See Secretary Timberlake's prepared remarks here.

-- By Greg Bump

7:49 PM

Stimulus funds approved

The JFC has unanimously approved $42.5 million in transportation and infrastructure projects to be paid from federal stimulus funds. A list of the 49 projects can be found in this LFB memo.

Also, the administration informed the committee that the transportation funding for Wisconsin in the American Recovery and Reinvestment Act contains $34.6 million less than allotted in 2009-11 budget. DOA Secretary Mike Morgan explains the matter in this memo, and includes possible revisions to make up for the shortfall.

-- By Greg Bump

7:03 PM

Agency briefings finished for the day

The JFC now rolls on with Gov. Doyle's economic stimulus request for a $42.5 million batch of transportation projects.

Agency briefings will continue tomorrow with the departments of Health Services, Children and Families, Workforce Development, Revenue and Commerce.

-- By Greg Bump

6:45 PM

GAB testimony begins

Government Accountability Board director Kevin Kennedy is now testifying. See his prepared remarks here.

-- By Greg Bump

6:15 PM

Vos has new state slogan

Rep. Robin Vos, R-Racine, says if the state is prohibited from using the new "Live like you mean it" slogan due to trademark infringement, he has another idea.

"Tax like you mean it," said Vos.

He even had his staff make up a sign with the slogan accompanying the new man-doing-cartwheel logo.

UPDATE: Here's the logo Vos has proposed.

-- By Greg Bump

5:48 PM

Colon to Van Hollen: You want stimulus money for DOJ?

Rep. Pedro Colon, D-Milwaukee, seized on a comment from AG Van Hollen about federal stimulus money.

In his remarks, Van Hollen said Gov. Doyle promised to make public safety a priority. Van Hollen said he didn't follow through on that promise.

"Cutting public safety funding, cutting district attorney budgets, letting inmates out of prison, reducing supervision of convicted criminals, saving state money by shifting burdens to local law enforcement, recommending federal stimulus money be directed to areas other than Justice and the District Attorneys -- these are not proposals that protect public safety," Van Hollen said.

Colon asked if that means Van Hollen, a Republican, is requesting federal stimulus money for the Department of Justice.

Van Hollen responded that public safety programs are not in line for the stimulus cash, and he was merely pointing out that other agencies were getting those dollars while DOJ was getting cuts.

-- By Greg Bump

5:37 PM

Van Hollen: State will be less safe with early release

AG Van Hollen said Gov. Doyle's proposal for early release of some prisoners to save on Corrections costs will lead to unsafe streets, and will end up costing the state more.

"I have no doubt society will be less safe if we release people from prison earlier than their release dates," he said.

Van Hollen gave the response to a question from Sen. Alberta Darling, R-River Hills, who said she was "appalled" Doyle, a former Attorney General, would propose early release. She said candidates for early release would include those convicted of "Class C" felonies like sexual assault of a child.

-- By Greg Bump

5:04 PM

Van Hollen testimony begins

Attorney General J.B. Van Hollen has begun his briefing on Gov. Doyle's budget proposal. As expected, it contains some harsh words for the cuts Doyle imposes.

See Van Hollen's prepared remarks here.

-- By Greg Bump

4:36 PM

Recess

The UW System briefing has finally wrapped up. Next will be the Department of Justice and AG J.B. Van Hollen after a 20-minute recess.

-- By Greg Bump

4:03 PM

Olsen asks if collective bargaining proposal will hurt System

Sen. Luther Olsen, R-Ripon, questioned whether Gov. Doyle's recommendation to allow faculty and staff to form a collective bargaining unit will hurt the UW System's ability to recruit or retain high-quality academic staff.

Olsen said in his experience, when workers unionize it ties management's hands when it comes to recruitment and retention.

UW System President Reilly said UW System administration's position on the recommendation is neutral.

"We think faculty ought to be able to decide," he said.

Reilly said in his experience, unionized staff does not hinder management in recruitment and retention.

-- By Greg Bump

3:07 PM

Excerpts from Reilly testimony

Here are some excerpts from the testimony of UW System President Kevin Reilly, sent by a System spokesman:

"I am cognizant of the State's current financial challenges. I will not ask you to spare the UW System from all budget cuts. Rather, I'm asking that the cuts not be so deep that they effectively undo the investment you made just last year. I'm asking that we find a way to work together to preserve the forward momentum we are now achieving with the Growth Agenda for Wisconsin."

"...enrollment in the UW System has now topped 175,000 students. Over the past 10 years, total enrollment has grown by 12 percent, and the number of full-time equivalent students increased by 14 percent. That's an increase of more than 20,000 students. At the same time, the number of state-funded employees in the UW System shrank by 1 percent. We now confer about 32,000 degrees each year."

"Looking at the 1 percent across-the-board cut, please remember that, unlike other state agencies, we get less than one-quarter of our total revenue from State GPR, so that across-the-board reduction hits about 75 percent of our revenue that comes from other non-State sources. In this way, this kind of budget cut affects us disproportionately, compared to other state agencies that are more dependent upon GPR revenue. This is where we need your help. As I mentioned, we were originally making plans to manage a $100 million cut, and we'd like to find a way to get back to that amount. While the 1 percent across-the-board cut sounds innocuous enough, for us it's fully 50 percent more than what we were anticipating. If there is one thing you can do to make this budget more reasonable for UW students, it would be to shrink the base of the UW's 1 percent cut back down to a figure that recognizes our budget is three-quarters non-tax revenue. If you could find a way to make that happen, we'd still be left with a $100 million cut, and the loss of $25 million more in reserves. That's a lot of money. Those reductions will be challenging for our campuses and students. But if we can get down to a $100 million cut in operational revenues, we will be able to preserve more momentum in the Growth Agenda and position the State in a way that will be more competitive coming out of the recession."

"Theoretically, tuition could be used to offset all budget cuts. But that ignores the real size of these cuts, the corresponding tuition increases, and the real "sticker shock" that would cause. As I told our Board of Regents earlier this month, today's economic climate prevents us from viewing tuition revenues as some kind of big safety net. To offset the $120 million cut in GPR alone, UW System would need to increase tuition by double digits and we are not going to do that."

The committee also heard testimony from UW-Milwaukee Chancellor Carlos Santiago and UW-Oshkosh Chancellor Richard Wells.

-- By Greg Bump

2:59 PM

UW System on the hot seat

Chief Justice Abrahamson is finished. Now it's the UW System's time. Also coming up yet today is the Department of Justice and Government Accountability Board.

-- By Greg Bump

2:42 PM

Abrahamson questioned on early release

Chief Justice Shirley Abrahamson turned the tables on Rep. Robin Vos who asked her to comment on whether Gov. Doyle's proposal to release some prisoners early and what the impact would be on the court system.

Abrahamson replied with her own question, asking the Racine Republican why he thinks it would have any impact on the court system.

Vos responded that the change would "take away the discretion" of judges. He said the governor's proposal would let "violent prisoners" out of custody without notice to victims or the courts, and "people across Wisconsin" are concerned.

Abrahamson said there have been many sentencing rules during her 30-plus years on the court, and those rules are "a legislative function and a public policy function."

"Sentencing is for you to decide," she said. "The courts will do as the Legislature says. When you increase the penalties, the courts tend to increase the penalties imposed."

-- By Greg Bump

2:14 PM

Frank and Abrahamson testimony

Text of his prepared remarks is here.

Chief Justice Shirley Abrahamson is now before the committee to talk about the Supreme Court budget.

See Abrahamson's prepared remarks here.

-- By Greg Bump

2:07 PM

Morgan done, Abrahamson up

Morgan has wrapped up his testimony. Chief Justice Shirley Abrahamson is now addressing the committee on the Supreme Court's budget.

-- By Greg Bump

12:50 PM

Battle over size of deficit

Rep. Robin Vos, R-Racine, challenged the numbers that have been presented for the size of the state's budget deficit, saying it's more than $1 billion less than administration officials have projected.

Vos said an LFB memo he requested puts the deficit at $4.6 billion, with any other additional budget gap a reflection of agency "wish lists."

Vos said given the $4.6 billion number, here's how he calculates Doyle solving the budget deficit: $2.5 billion in "permanent tax increases," $2 billion in one-time federal stimulus money and $100 million in spending cuts.

Morgan disputed that accounting. He said the projected deficit is closer to $5.9 billion. Here's his formula for bridging the deficit: $2.2 billion in spending reductions, $2.1 billion in federal dollars, $1.35 billion in "revenue increases" and $245 million in refinancing measures.

Vos said the deficit is "the bad budgeting procedures of the last six to eight years coming to fruition."

Morgan replied that the state and country are in the "worst recession in a generation."

"Revenues have dropped off the side of the table. We've seen the economy contract significantly," he said.

-- By Greg Bump

12:31 PM

Proposed contract changes won't make it to final budget, Morgan says

Secretary Morgan acknowledged that a controversial proposal to drop some requirements for procurement of contractual services will be changed before the budget is finalized.

Responding to a question from Rep. Mark Pocan, D-Madison, Morgan said he agreed that there will be changes to the proposal. Those changes could come in the JFC or as the bill moves to the legislative houses.

The governor in his budget proposed nixing that the requirement to do cost-benefit analyses for new contract service procurements of at least $25,000, among other changes. (See page 39 of the LFB summary).

Pocan, the committee co-chair, also wanted to head off "tax and spend rhetoric" by asking questions about whether the budget includes across the board income tax, general sales tax or property tax increases. Morgan said that it does not.

-- By Greg Bump

12:24 PM

No pot of gold on this St. Pat's Day

DOA Secretary Mike Morgan has finished his 40-plus minute opening statement to the JFC, giving a broad overview of the 2009-11 budget.

He started off with a dire tone.

"Luck of the Irish notwithstanding, I'm afraid there's no pot of gold in this budget," he said.

Committee members wil now proceed with their questions.

-- By Greg Bump

11:30 AM

DNR done, DOA next

DNR Secretary Frank is off the hot seat, but not before there was some bickering from committee members over process.

With the DNR testimony stretching to more than an hour, co-chair Mark Miller, who is running the meeting today, told members that he'd like them to prioritize their questions and to save follow ups until everyone has had a chance to ask questions. He said he was trying to keep each agency briefing at one hour.

Republican Reps. Robin Vos and Phil Montgomery bristled a bit at this suggestion.

"Why would you want to limit the debate?" Montgomery asked, pointing out that it is a public hearing that is going out over WisconsinEye for citizens to see.

Vos said the normal process has been to allow members to ask as many questions as necessary.

Sen. Lena Taylor jumped to Miller's defense, telling Vos he already took up more time than any other member with his questions. She said Vos can ask the department heads to come to his office "and you can drill them as long as you want."

Rep. Mark Pocan, the Assembly co-chair of the committee, tried the soothe the debate. "We're not here to see how many questions we can ask, but to ask the most relevant questions," he said.

Closing out the DNR briefing, Vos questioned Frank about "policy changes" to the Great Lakes Compact, saying the language in the budget changes a standard for how utilities and farmers are assessed for water withdrawal. Vos said that point was a particular point of contention during negotiations on the compact. (See page 481 of the LFB summary.)

Frank responded that he was not aware of any policy changes, but the budget does include implementation language.

"We can not unilaterally change the compact," he said.

-- By Greg Bump

10:59 AM

Concerns about counter service closures

Sens. John Lehman, D-Racine, and Luther Olsen, R-Ripon, both expressed concern over the proposal to close 24 DNR service centers statewide.

Frank said it was a difficult decision to cut the service, but cuts had to be made somewhere as the state looks to close the budget deficit.

"None of these choices are easy," he said. "It will be a change for the public and our staff. But we believe it made sense."

Frank said a beefed up Internet presence and expanded hours for the DNR Call Center will make up for the lack of counter service. He said sales at service centers make up less than 1.5 percent of total license sales, and fewer than 69,400 licenses are sold at service centers compared to 4.3 million through retailers.

-- By Greg Bump

10:44 AM

Frank asked about fee increases

Republican members have questions for DNR Secretary Frank about fee increases in his agency budget and how they increase the cost to do business in the state.

Frank said the agency has "done everything we could to hold the line on fee increases," and they have worked to streamline permit processes to help businesses.

Rep. Robin Vos, R-Racine, asked about the "massive increase in the garbage tax" while at the same time the state is cutting back funding for recycling programs and "raiding" the recycling fund to plug holes in the budget.

Frank said some of the money moved from the recycling fund will go to debt service. Also, as with the last budget, some dollars from the recycling fund will be used to foster growth in the renewable and clean energy industry.

-- By Greg Bump

10:20 AM

Some details of DNR budget

According to Secretary Frank's testimony:

Budget of $584.4 million in 2009-10 and $579.2 million for 2010-11, a net decrease of $2.2 million from 2007-09 biennial budget.

DNR will lapse $15 million over the biennium, and will hold 300 positions open "for the foreseeable future."

Net base reduction of 85.5 full-time jobs, bringing overall authorized staffing to 2745.5 to 2,660 permanent positions. With open positions, current staffing level is actually closer to 2,350, Frank said.

Forestry grants to private landowners and county forest wildlife grants will be curtailed. Forestry grants to local fire departments will be cut but federal grants will still be available.

"There are no major spending increases for new initiatives in this budget," Frank said. "We hold the line on general hunting and fishing license fees while preserving core wildlife, fisheries, habitat and law enforcement activities."

-- By Greg Bump

10:15 AM

Transpo projects moved to end of the calendar

The JFC has been called to order. Though the committee was scheduled to bring up Gov. Doyle's request to authorize spending $42.5 million of federal economic recovery funds for transportation enhancement projects, that item has been moved. The committee will take it up after agency briefings.

DNR Secretary Matt Frank is the first official to brief the committee.

-- By Greg Bump

12:20 PM

Agency briefings this week

The JFC will begin agency briefings on the 2009-11 budget at 10 a.m. Tuesday. Briefings are also scheduled for 10 a.m. on Wednesday and Thursday.

Agencies on the agenda for tomorrow include the departments of Administration, Natural Resources, Justice and the UW System.

See a schedule of agency briefings for the week here.

-- By Greg Bump

12:02 PM

Van Hollen: Doyle budget fails on public safety

Attorney General J.B. Van Hollen writes in a letter to the JFC co-chairs that Gov. Jim Doyle's proposed budget "fails to protect law enforcement's existing ability to protect public safety and it takes dramatic steps backwards."

The Republican AG cites Doyle's proposal for early release of some prisoners and early termination of extended supervision among his concerns.

He writes that he hopes the Legislature will overturn the proposals. "While I recognize the state's current fiscal situation, now is not the time to turn away from our core priorities," says Van Hollen. "We should not balance the budget on the back of public safety, nor by passing down costs to local law enforcement, nor by imposing additional burdens on understaffed district attorneys offices."

See the letter here.

See remarks Van Hollen made today at a Waukesha press conference with law enforcement officials here.

-- By Greg Bump

2:45 PM

LFB budget analysis pegs overall spending increase at 7.7 percent

The state would spend 7.7 percent more in 2009-11 compared to the base year doubled under Gov. Jim Doyle's budget proposal, according to the Legislative Fiscal Bureau analysis released today.

The LFB's breakdown of the governor's proposal also finds the state would spend 1.1 less in general purpose revenue over the two-year period.

LFB found the almost $63.1 billion budget includes just less than $28.1 billion in state tax dollars.

See the analysis:
here.

1:09 PM

State to receive nearly $197 million for weatherization, energy efficiency

Vice President Joe Biden and Energy Secretary Steven Chu today announced Wisconsin will receive nearly $197 million in weatherization and energy efficiency funding -- including more than $141 million for the Weatherization Assistance Program and more than $55 million for the State Energy Program.

Doyle's office said Chu is due to visit Wisconsin on Friday to meet with local energy, business, and labor leaders and help weatherize a Milwaukee home.

"This important funding puts hardworking Wisconsin families to work and puts our state and country on a path towards energy independence," Doyle said in a statement.

*See details of the funding here.
*See the Doyle release here.
*See a statement from U.S. Sen. Russ Feingold here.

8:44 AM

Doyle asks JFC to authorize $42.5 M in fed stimulus for 49 local transpo projects; bids to be let next month

Bridge fix-ups from Dane to Douglas counties, and other transpo items from Forest to Fond du Lac counties are among the fed stimulus "shovel-ready" projects in the works.

The state expects to begin letting a host of projects out for bid next month, according to a letter Gov. Jim Doyle sent to the Joint Finance Committee yesterday. In all, Doyle asked the panel to authorize spending $42.5 million of federal economic recovery funds on 49 local road, bridge and transportation enhancement projects.

Applications for more local projects are due April 1. The total federal stimulus money coming to Wisconsin for road projects totals $529.1 million. About a third of that will go to local projects.

Read Doyle's letter here.

See the press release here.

-- By Andy Szal

1:42 PM

MacIver Institute: Wisconsinites pessimistic on economy

The new conservative-leaning MacIver Institute has released new polling results that paint a bleak picture of the economy.

Sixty-four percent of respondents said the economy was the top issue they face, while 15 percent said it was health care and 6 percent said taxes.

Also, 65 percent said the nation was on the wrong track, while 64 percent said the state was headed in the wrong direction.

Only 37 percent of respondents believe the economy will improve one year from now, while 43 percent believe things will be about the same and 17 percent said the economic situation will be worse.

See the release:
http://www.wispolitics.com/1006/0902309_MacIver_Economy.pdf

The group also put out some results over the weekend that it says shows Wisconsinites would rather cut spending than raise taxes to fix the state's deficit.

The poll showed a majority of respondents opposed the governor's plan to increase taxes, including those on businesses, and proposing looser limits on property tax increases.

But they also supported raising taxes on individuals making more than $225,000 and couples earning more than $300,000, as well as his plan to increase the cigarette tax.

See the release:
http://www.wispolitics.com/1006/090307_MacIver_Institute.pdf

-- By JR Ross

10:09 AM

UW forecasts budget cuts

The UW Board of Regents approved its budget adjustments for the 2009-2010 academic year Thursday, detailing the campus-by-campus impact of nearly $174 million in potential cuts to its budget request.

The adjustments will be used by UW System staff to craft next year's budget, which is scheduled to be presented to the board by System President Kevin Reilly in July. All 13 four-year campuses, as well as the UW Colleges and UW-Extension, face cuts in the millions of dollars compared to what they had wanted.

Reilly offered an overview of next year's budget before the board Thursday morning, saying that the governor's plan amounts to a 5.2 percent GPR cut for the universities. He said the cuts, while painful, are necessary to maintaining enrollment levels. Reilly said that covering the shortfall with tuition would require a 17 percent hike in each of the next two years, something that "is not going to happen."

UW-Madison Chancellor Biddy Martin said the shortfall to the Madison campus, if not adjusted by tuition increases, could be "transformative in a negative sense," but that she looks forward to working with state officials to alleviate the cuts.

Regent David Walsh praised Doyle for his budget's increase in financial aid and faculty retention and said the board should not focus on the depth of the cut as much it should ask, "Are we being treated fairly?"

"At this time in our state's history, I think we have to have a little common sense about where we're going, because it's going to get worse," Walsh said.

-- By Andy Szal

12:20 PM

Doyle announces $5.8 million for strategic workforce initiatives

Gov. Jim Doyle announced today $5.8 million for strategic workforce training. The programs reflect a major change in the way Wisconsin and its partners train workers and meet the needs of employers in growing sectors.

Doyle announced the initiatives along with highlighting the need for more jobs and the investment of Wisconsin businesses and workers in his address at the Milwaukee 7 Regional Economic Advisory Council at Manpower World Headquarters in Milwaukee.

"This is a very difficult time, it is a time when we have to decide what is most important to us," Doyle said. "The Wisconsin Sector Strategic Workforce Initiatives is a new way of doing business."

Doyle stressed the need for "regional economic development" by breaking down jurisdictional rivalries and building a strong workforce for skilled workers.

The Strategic Workforce Initiative will be funded with nearly $3 million in federal funds over the next two years. In future months, multiple grants will be rewarded in the first step to bringing together leaders of industry, labor, education, economic development and workers in seven Wisconsin regions. The leaders will form partnerships to identify the workforce need of high-growth sectors and develop ways to meet these needs. Specific industry partnerships can seek grants that will present resources and funding for workers. For regions that are ready, grant money will be available immediately.

Doyle emphasized the importance of maintaining good education, continuing basic affordable health care, protecting the people through basic police force and fire services, and creating new jobs.

"This budget is a major step forward," Doyle said. "We must invest in our workers ... get people to work and move this state forward."

-- By Tammy McCubbin for WisPolitics.com

2:35 PM

Budget hearings to kick off March 23 in Sparta

JFC co-chairs Mark Miller and Mark Pocan have announced the details of six public hearings to be held around the state on the 2009-11 budget.

The first date is March 23 in Sparta, followed by hearings on the 25th in West Allis, the 27th in Eau Claire, and 30th in Racine.

The heraings continue April 1 in Appleton, and April 3 in Cambridge.

See the release here.

-- By Greg Bump

10:38 AM

Doyle talks trains with NPR

Gov. Jim Doyle told NPR that Spanish companies are showing interest in investing in high speed rail in the U.S.

Doyle said that there are "good jobs" to be had in the industry, and boasted about the ease and convenience of the trains he rode in Spain.

"I think they're great," Doyle said. "They are modern, clean, fast, smooth. I really hope people in the United States begin to understand what modern train travel is and what its advantages are."

Doyle was in Spain last week to learn about the Spanish rail system and to entice Spanish companies to locate manufacturing facilities in Wisconsin. The governor was in Washington, D.C., Monday and Tuesday, and returned to Wisconsin today, and has internal meetings today, according to his staff.

Listen to the NPR report here.

-- By Greg Bump

10:56 AM

Fed money for highways includes $354.5 million of discretionary spending

The White House today released more details on how the federal stimulus cash for highway and infrastructure projects will be allocated to states.

Wisconsin will receive $529 million for highway and infrastructure, according an an interactive map at recovery.gov. Of that, $354.5 million can be used in any area of the state.

But states have to spend the money quickly. As the site explains: "Parts of the allocation are set aside to make sure that urban, suburban, and rural areas alike all get a share. But since local leaders -- mayors and governors -- know their communities best, much of the money is left to states' discretion. And if states don't use it, they lose it. To make sure that funds go out quickly to give our economy the jolt it needs, states have 120 days to assign the funds to specific projects."

Other allocations include $49 million for projects in urban areas, $95 million for suburban projects, and $14.6 million for rural areas.

-- By Greg Bump

5:07 PM

UW System releases budget analysis

UW-Madison would get $64 million less than what the University of Wisconsin System requested under Gov. Jim Doyle's budget, according to an analysis the system put together.

The system's flagship university would take the largest projected hit of the UW campuses stemming from approximately $174 million in total cuts to the system compared to what it requested. That would be followed by UW-Milwaukee at a $19.8 million potential cut, UW-La Crosse at $11 million and the system administration at $8.1 million.

The Board of Regents will take up an information-only discussion of the next budget late this week in Madison. UW System President Kevin Reilly said in a statement that the cuts would "invariably hurt the education and service we provide to our 173,000 students, and our ability to help reinvigorate Wisconsin's economy."

See the press release here.

-- By Andy Szal

10:38 AM

Team license plate sales don't bring big bucks

Gov. Jim Doyle's proposal to sell specialized Milwaukee Brewers plates will give fans a chance to display their home team pride. But if revenue from Green Bay Packer plates is any indication, it won't do much to relieve the remaining debt incurred by the construction of Miller Park.

Doyle is proposing the Brewers plates in his 2009-11 budget, with proceeds going to retire the Miller Park stadium district debt. The plates would cost drivers a $25 annual fee on top of the annual $75 vehicle registration fee. There would also be a one-time $15 special plate fee.

The state began selling Packer plates in January 2001, with a similar aim of relieving debt on the Lambeau Field renovation. To date, 27,349 plates have been issued, though only 16,685 are currently in use, according to the Department of Transportation. The state had projected 40,000 plates would be issued in the first year.

Legislators who touted the Packer plates when they were proposed had lofty numbers in mind, with some expecting as much as $4 million in annual revenue, according to news articles at the time.

But the Packer plates have fallen far short of that, so far generating just $3 million for maintenance and operating costs at Lambeau Field since their debut, according to the DOT.

The remaining debt from Lambeau Field renovations stands at $42 million. That's about one-fourth of the $174.8 million in bonds initially issued for the project, according to the Legislative Fiscal Bureau. The stadium district also benefits from a 0.5 percent sales and use tax. The debt is expected to be paid off in 2011, but the tax is expected to continue until 2014 or 2015 to pay for ongoing operating and maintenance costs, according to the LFB.

The Brewers stadium district collects a 0.1 percent sales and use tax in southeastern Wisconsin. The district has a total of $132.2 million debt outstanding of the original $259 million incurred for the project. The tax is expected to sunset in 2016 unless the district incurs additional capital costs.

Doyle's budget does not include a projection on how much revenue the Brewers plate may bring in, and DOT did not have an estimate.

-- By Greg Bump

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