WisPolitics Budget Blog

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

See the Dem motion here.

Labels: Oil_Franchise_Fee, Transportation

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

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

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

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

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

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

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

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

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

Labels: automobile_registration_fees, Oil_Franchise_Fee, Transportation

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

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

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

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

Rhoades' GOP proposal is taken up first.

Labels: Oil_Franchise_Fee, Transportation