Wisconsin could be eligible for up to $250 million in federal education funding under the $4.35 billion "Race to the Top" program, according to the U.S. Department of Education.

Education Secretary Arne Duncan is kicking off the program today, and the department announced each state's potential intake of funding from the program. Wisconsin is listed as a Class 3 state, meaning it -- along with Virginia, Arizona, Indiana, Washington, Tennessee, Massachusetts, Missouri and Maryland -- could receive $150-$250 million under the program.

The Class 1 states -- California, Texas, New York, Florida -- could receive up to $700 million.

Gov. Doyle and state lawmakers have been working quickly to ensure the state's ability to acquire as much Race to the Top funding as possible, with the governor signing four education bills into law this week. Two more measures related to the program -- one to give the state superintendent greater authority over struggling districts, the other to place Milwaukee Public Schools under mayoral control -- are still being worked out in the Capitol.

-- By Andy Szal

DOA Secretary Michael Morgan issued the following statement responding to a Pew Center report that Wisconsin is among the most fiscally challenged states in the country:

"In no way can Wisconsin be compared to the nation's most financially troubled states, especially California.

"While Wisconsin has been affected, like all states, by the national economic downturn, we have balanced our budget by cutting spending and raising revenues as needed.

"In addition, recent reports have shown that many other states have large revenue shortfalls in the current fiscal year. But Wisconsin does not.

"The Pew Center report is factually inaccurate. From the outset, the report is fundamentally flawed.

"It is not true that the recession has hit Wisconsin harder than other states. While we have taken hits like everyone else, Wisconsin has fared much better than other states and manufacturing is doing better in Wisconsin compared to our neighboring states.

"While Wisconsin's unemployment rate increased during the national economic recession, again like all states, it is now improving and is more than two percentage points below the national average of 10.2 percent.

"Finally, the report fails to take into account many of the good budgetary practices of Wisconsin. For the first time in 32 years, the state's budget was finished on time. In spite of tough times, the budget the Governor signed cut spending from state general fund taxes by 2.5% and includes a $270 million surplus for the period that ends July 1, 2011.

"We have worked hard in Wisconsin to ensure that we can come out of this national economic recession in a strong position."

-- By Greg Bump

The Washington, D.C.-based nonprofit Pew Center on the States has identified Wisconsin as one of 10 states facing fiscal peril in a report released Wednesday.

The report -- which ranked states based on six factors that the Pew Center blamed for California's budget programs -- gave the Badger State a C+, the 10th worst grade in the nation. States were ranked by change in revenue, size of budget shortfall, change in unemployment rate, foreclosure rate, and the requirement for a supermajority.

Wisconsin was aided by the fact that lawmakers do not need a supermajority to enact tax increases or budget bills. But the state's budget shortfall was well above the national average, resulting in a fiscal climate that, according to the report, is worse than every state except California, Arizona, Rhode Island, Michigan, Oregon, Nevada, Florida, New Jersey and Illinois.

"(T)he recession has hit Wisconsin harder than most state governments, especially when it comes to lost tax revenues and the size of the hole in its budget. On top of that, unemployment is climbing as the state's largest sector -- manufacturing -- sputters," the report says. "Wisconsin's history of budget shortfalls and pattern of borrowing frequently to cover operating expenses, among other measures, made it poorly positioned to weather the most recent severe economic downturn."

See the press release here.

See the full report here.

-- By Andy Szal

Sen. Mark Miller, D-Monona and co-chairman of the Joint Finance Committee, sent a letter to Education Secretary Arne Duncan this afternoon raising questions about the Race to the Top program before the state fast-tracks the potentially costly bills.

Miller asks for greater detail about the size of the grants, state policies that would gain greater funding, and the federal government's future financial commitment to the program.

"As much as I and other public officials want to improve public school performance, we can only do so if we can pay for it. Wisconsin will be gambling with our educational future if we make these financial and policy commitments and then fail to keep them," Miller writes. "Because so much is unknown about how Race to the Top grant dollars will be allocated and for how long, we feel like a gambler trying to draw to an inside straight."

Duncan is scheduled to accompany President Obama to Madison tomorrow for his speech at Wright Middle School.

-- By Andy Szal

-- By Greg Bump

A bill to publicly finance state Supreme Court campaigns, known as the Impartial Justice Bill, passed the Joint Finance Committee today on a partisan 11-4 vote.

Democrats like Sens. Dave Hansen and Lena Taylor said the bill takes the "taint" out of the court.

"This is about clean elections and fair elections," Hansen said.

Republican Reps. Phil Montgomery and Robin Vos assailed the bill as "despicable" and "disgusting." Vos said Democrats are prioritizing campaigns over job creation at a time of great financial distress for state residents.

"Your priority is all about politics over people," Vos said.

Montgomery expressed concern that the fund could be accessed by future governors or Legislatures to balance the budget. He said the bill subverts democracy by taking Supreme Court elections out of the hands of the people and into "government control."

He also scoffed at the name of the fund.

"Calling it the Democracy Trust Fund is so far from the truth it's not even worth the paper it's printed on," he said.

Dem Reps. Pedro Colon and Mark Pocan said those who want to keep the status quo want to ensure that the "moneyed interests" continue to influence the elections.

"Average people don't give to the (Supreme Court) campaigns. It's the people who want something. It's the special interests," Pocan said.

The LFB estimates the fiscal impact of the bill in a given Supreme Court election is $3.5 million.

The bill establishes a Democracy Trust Fund with money generated by a $3 check-off on state individual income tax returns. Currently, the check-off is $1.

As the bill currently reads, the check-off is an "opt in" system, but some lawmakers have suggested that an "opt out" system in which tax filers would have to check a box to not participate in the fund would be more effective. An amendment to that effect may be added as the bill moves through the Legislature.

Participating candidates for Supreme Court Justice can receive $100,000 from the fund for the primary election and $300,000 for the spring election. Eligible candidates must collect 1,000 qualifying contributions totaling between $5,000 and $15,000.

If a candidate chooses not to participate, they would be limited to a contribution maximum of $1,000. Current law allows Supreme Court candidates to receive up to $10,000 from an individual and $8,625 from campaign committees.

-- By Greg Bump

The start of today's Joint Finance Committee has been delayed as last-minute revisions are made to a bill to make reforms to the Wisconsin Shares program.

The meeting was set to begin at 9 a.m., but that start was pushed back until later. A new start time was not set.

Among the provisions in the bill are increased background checks for child care providers. Another would add various criminal convictions that would bar a person from being a provider.

Sen. Mark Miller, the co-chair of the JFC, said that amendments, including some suggestions from Republican members, are being added to the bill this morning.

Miller, D-Monona, also said he expects the Impartial Justice Bill to pass today.

-- By Greg Bump