WisPolitics Budget Blog

Assembly fails to override budget repair vetoes

The Assembly failed to override three of Gov. Jim Doyle's partial vetoes today as Republicans tried to restore exemptions to protect K-12 funding, SeniorCare and the transportation fund from cuts or lapses to meet spending reductions he ordered in the budget repair bill he reworked.

Majority Republicans picked up 10 Democrats in their efforts to override the K-12 and SeniorCare vetoes while losing three of their own. Rep. Barb Gronemus, D-Whitehall, joined the 10 Dems and majority Republicans in voting to override for the transportation fund veto.

*See the roll call on K-12 funding:
http://www.legis.state.wi.us/insession/insessiondocs/Votes/av0298.htm

*See the roll call on SeniorCare:
http://www.legis.state.wi.us/insession/insessiondocs/Votes/av0298.htm

*See the roll call on the transportation fund:
http://www.legis.state.wi.us/insession/insessiondocs/Votes/av0300.htm

Labels: Budget_Repair_Bill, K-12 Funding, SeniorCare, Transportation

Decker answers criticism on transportation

Senate Majority Leader Russ Decker, D-Weston, said the budget repair bill just passed by the Senate does a good job on many levels, including protecting transportation funding.

Decker said the bill does protect the funding for road projects, a departure from the bonding proposed by the governor in his budget repair plan forwarded in March.

"You all just voted against protecting transportation," he said to those who voted "no."

"We protected transportation. You all just voted against it."

As for the potential of a veto, Decker said Senate Democrats believe "very strongly this budget should be signed as it is."

Labels: Budget_Repair_Bill, Decker, Transportation

Fitzgerald says Senate "better be back" to override veto

As he said yesterday, Senate Minority Leader Scott Fitzgerald, R-Juneau, firmly believes that Gov. Doyle will use his veto pen to block the shift of $125 million in school aids, and will borrow that amount from the transportation fund to fill the budget gap.

He said there will be a call in the Assembly to override the governor in that event, and he said the Senate had better follow suit.

"Keep your calendars clear for that last week in May," Fitzgerald said.

"The Assembly's going to go first, and then the pressure's going to be on this house," he said.

Labels: Budget_Repair_Bill, Sen. Fitzgerald, Transportation

Decker says transpo concerns legit

Sen. Fitzgerald restated his worry that the transportation fund will be a refuge for the governor, saying that he sees a scenario where the governor could easily veto the provision to delay $125 million in school aid payments.

"The only place to go is back to the transportation fund," Fitzgerald said.

Decker said the concerns "are legitimate" but said the hospital assessment would have addressed the problem, but Fitzgerald and his Republican colleagues opposed it.

Decker said there is no certainty the governor will veto the school aid provision.

"He may just take this because none of us got everything we wanted," he said.

Labels: Budget_Repair_Bill, Transportation

TDA: Five Days to "Black Tuesday"

The Transportation Development Association continues its countdown to "Black Tuesday," the day $260 million in summer road projects are supposed to be awarded.

"The stakes are tremendously high and so are the emotions," said TDA executive director Craig Thompson in the press release. "The same passion that has driven individuals into steadfast positions now must drive them to arrive at a solution before it is too late. There are many different ways to solve this problem without raiding the transportation fund."

Gov. Doyle has said road "lets" may be jeopardized because negotiations to solve the state's projected $525 million budget deficit haven't been fruitful.

See a list of the projects here.

Doyle spokesman Lee Sensenbrenner said the Department of Transportation is evaluating which projects may be delayed. Dollars that are withheld from the road projects would be used to shore up the budget gap, he said.

Senate Majority Leader Russ Decker, Assembly Speaker Mike Huebsch, and Assembly Minority Leader Jim Kreuser are meeting today to try to iron out a compromise. Kreuser said earlier this week that he would like to see some level of transportation fund bonding, as Gov. Doyle proposed, in the final package. Decker and Huebsch have been resistant to the idea.

"This budget is clearly going to need both parties in order to pass. That's not a bad thing," said Thompson in his statement.

Sensenbrenner said he isn't sure what would avoid a scaling back of the project lets short of passage of a repair bill.

"The reason why these projects would be effected is it's basically the only choice," he said. "If some deal arrives it could affect (the project letting)."

Labels: Budget_Repair_Bill, Transportation

Triple-A steps into budget fray

AAA Wisconsin regional president Tom Frymark sent a letter today to state legislators and Gov. Jim Doyle urging them to not use transportation fund cash to solve general fund deficits.

The organization claims more than 618,000 members in Wisconsin.

Frymark writes that 96 percent of AAA Wisconsin members said in a recent survey they believe revenues like fuel taxes and vehicle registration fees should be used solely for transportation purposes.

"Our members are not happy that, in the last three state budgets, $1.1 billion in transportation revenue has been mis-used to support general fund spending," Frymark writes. "It is a breach of trust between taxpayers and their government when taxes are imposed and collected for a specified purpose, but then are intentionally directed elsewhere to pay for other unrelated programs."

Gov. Jim Doyle's plan to address the projected $525 million biennial budget deficit includes a plan to transfer $257 million from the transportation fund to the general fund, and to backfill that borrowing with general obligation bonds.

The proposal was not included in the Assembly and Senate budget repair bills, and Senate Majority Leader Russ Decker, D-Weston, said last week that proposal is unlikely to be part of the final budget repair package.

"(The transportation fund) just can't be looked at as a bank to fund the rest of the budget when it gets in trouble," he said.

Labels: Budget_Repair_Bill, Transportation

TDA warns of "doomsday"

The Transportation Development Association is warning that some major road projects could be doomed if the budget repair impasse isn't resolved by next Tuesday.

Department of Transportation Secretary Frank Busalacchi posted a message on the Department of Transportation's Web site two weeks ago warning May and June project lets "could be negatively impacted" without swift budget action.

"That means we have eight days left until the May lets are supposed to go out. The May and June lets represent one third of the total transportation projects planned for 2008 and the Governor has threatened to cancel them if the Senate and Assembly don't agree to raid the transportation fund," said Craig Thompson, executive director of the TDA.

See TDA's press release here.

Gov. Jim Doyle has proposed transferring $257 million from the transportation fund and backfilling the borrowing with bonds to help plug the budget hole. The proposal has met with resistance from legislative leaders, and it is not believed to be part of the package they are pushing to solve the projected $525 million deficit for this biennium.

No breakthroughs were reported this weekend in budget repair bill negotiations, but Carrie Lynch, spokeswoman for Senate Majority Leader Russ Decker, said senators have been advised to keep their calendars open for a possible floor session this week.

No face-to-face meetings were set for today, but Lynch expected negotiators to connect by phone.

Lee Sensenbrenner, spokesman for Gov. Doyle, said talks are ongoing. Doyle is traveling today, but he will be in contact with staff about the budget, Sensenbrenner said.

Labels: Budget_Repair_Bill, Transportation

Road projects could suffer without budget repair, Busalacchi warns

Department of Transportation Secretary Frank Busalacchi's message this week to contractors that May and June project lets "could be negatively impacted" without swift budget action has caused alarm by the Transportation Development Association of Wisconsin.

Busalacchi said in a letter posted Wednesday on the DOT's Highway Construction Contact Information Web site that contractors should be aware of the state's projected revenue shortfall and its possible impact on future road projects. He said the allocations for May and June lets "could be reduced dramatically" if action is not taken shortly on a budget adjustment bill.

The state faces a revenue shortfall over $650 million in this biennium, according to LFB estimates. The Doyle administration has cut the defict to $525 million with administrative maneuvers, but an agreement on how to address the balance has been mired in discussions between Doyle and legislative leaders.

Doyle had proposed transferring $257 million from the transportation fund and backfilling the borrowing with bonds to help plug the budget hole.

In a press release today, TDA executive director Craig Thompson praised legislative leaders for rejecting the Doyle proposal, but said Busalacchi's letter shows the Doyle administration is not willing to give up the proposal.

"What the secretary is talking about is redirecting hundreds of millions of dollars from road projects resulting in the loss of thousands of Wisconsin jobs," Thompson said.

UPDATE: The Wisconsin Transportation Builders Association has also weighed in with a letter to legislators urging them to quickly pass a budget repair bill that does not include a transportation fund transfer.

"As you know, the Administration has indicated it will transfer a significant amount of revenue from the transportation fund if there is not a budget agreement in the next ten days. According to the Wisconsin Department of Transportation, this transfer would result in a significant portion or all of the May and June lettings to be indefinitely postponed. That action would result in the potential loss of $261 million in projects, which would lead to the loss of 2,000 construction jobs in Wisconsin," reads the letter.

See the Busalacchi letter here.

See the press release from the TDA here.

See the WTBA letter here.

The WTBA letter also includes a list of road projects that may be impacted. See it here.

Labels: Budget_Repair_Bill, Transportation

KRM Funding Motion Fails

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

Labels: KRM_Line, Transportation

Stone Not Supporting Rental Fee Increase

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

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

Labels: KRM_Line, Stone, Transportation

KRM Motion Emerges

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

(budget paper 777)

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

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

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

Labels: KRM_Line, Lehman, Transportation

Dem Motion Fails: Governor's Proposal Survives

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

See the Dem motion here.

Labels: Oil_Franchise_Fee, Transportation

Vos: Dem Motion Is Anti-Business

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

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

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

Labels: Oil_Franchise_Fee, Transportation

GOP Motion Fails

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

Next will be the Dem proposal.

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

Labels: oil, Transportation

Jauch: Oil Fee Should Be Progressive

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

Oil Fee "Like an Onion"

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

Gusher of Excuses

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

More on Dem Omnibus

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

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

Gusher of Money

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

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

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

Labels: Oil_Franchise_Fee, Transportation

White Men Crying

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

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

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

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

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

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

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

Labels: Oil_Franchise_Fee, Transportation

The Bottom Line on Dem Motion

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

Labels: Transportation

More on Omnibus

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

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

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

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

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

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

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

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

Labels: automobile_registration_fees, Oil_Franchise_Fee, Transportation

Welcome to Transportation Thursday

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

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

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

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

Rhoades' GOP proposal is taken up first.

Labels: Oil_Franchise_Fee, Transportation

Locals Voice Concerns

Mark Drangstveit, a logger from Black River Falls, asked the committee to lift weight restrictions on bridges or to direct more cash to improve bridges to handle more than the 98,000-pound limit that is currently law. He said the current restrictions "are like putting a roadblock on every single highway in the state."

Dave Fish representing St. Joseph's Hospital spoke against the 1 percent gross revenue hospital tax. Fish said the budget's highest goal should be to help the poor, but said the tax is "not sufficent in looking at the long term viability and achievements of what needs to be done."

Neil Haselwander, a local realtor, voiced his opposition to the governor's boost to the real estate transfer fee, which he said would double the cost of the transfer fee on a $166,000 home from $500 to $1000. He said the transfer fee would stifle investment in the state.

Bob Sather of Ace Ethanol in Stanley spoke in support to the governor's renewable fuels initiatives in the budget, and said he believes the goal of having 25 percent of the state's energy come from renewable sources is achievable.

Labels: Chippewa_Falls_Meeting, ethanol, Hospital Assessment, Joint Committee on Finance, Real_Estate_Transfer_Fee, Transportation

Chippewa Falls Mayor Hedrington Opens Testimony

Chippewa Falls Mayor Dan Hedrington opens up the testimony by urging integrity in the budget.

He said his city has reduced spending and reduced taxes by honesty in budgeting.

"Honesty in the budget is essential," Hedrington said.

Hedrington told the committee to end the "shell game" of shifting segregated funds for unrelated purposes, and asked to restore general transportation aids to 1988 levels. He also asked to maintain the current level of the expenditure restraint program for municipalities.

The meeting is well-attended by local legislators. The non-committee members in attendance are Dem Sens. Pat Kreitlow and Kathleen Vinehout, GOP Reps. Jeff Wood, John Murtha and Terry Moulton, and Dem Rep. Jeff Smith.

Labels: Chippewa_Falls_Meeting, Joint Committee on Finance, Transportation

Local Officials Give JFC an Earful

Local officials are giving the committee an earful on the delays to the expansion of US Hwy. 51. They say the situation is life-threatening and are frustrated the expansion of the highway to four lanes has been put off.

Alan Harvey, chairman of the Town of Windsor, said the expansion project had been at the top of the DOT's minor project list, but was moved to a major project and put at the bottom of the list. The highway is seriously over capacity, and motorists are "seriously placing our lives at risk" on the roadway.

"We are playing Russian roulette with our loved ones," Harvey said.

He said the project is in a "bureaucratic quagmire," and expansion has been delayed until 2025 or 2030.

In other testimony, the committee is hearing support for the proposed $1.25 per pack increase in cigarettes, and against the proposed 1 percent assessment on hospitals and the "raid" of funds from the patient compensation fund.

Labels: Arlington_Meeting, Joint Committee on Finance, Transportation

WisPolitics Budget Blog

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Wednesday, May 28, 2008

Assembly fails to override budget repair vetoes

Tuesday, May 13, 2008

Decker answers criticism on transportation

Fitzgerald says Senate "better be back" to override veto

Monday, May 12, 2008

Decker says transpo concerns legit

Thursday, May 08, 2008

TDA: Five Days to "Black Tuesday"

Tuesday, May 06, 2008

Triple-A steps into budget fray

Monday, May 05, 2008

TDA warns of "doomsday"

Friday, April 25, 2008

Road projects could suffer without budget repair, Busalacchi warns

Thursday, May 31, 2007

KRM Funding Motion Fails

Stone Not Supporting Rental Fee Increase

KRM Motion Emerges

Dem Motion Fails: Governor's Proposal Survives

Vos: Dem Motion Is Anti-Business

GOP Motion Fails

Jauch: Oil Fee Should Be Progressive

Oil Fee "Like an Onion"

Gusher of Excuses

More on Dem Omnibus

Gusher of Money

White Men Crying

The Bottom Line on Dem Motion

More on Omnibus

Welcome to Transportation Thursday

Tuesday, March 27, 2007

Locals Voice Concerns

Chippewa Falls Mayor Hedrington Opens Testimony

Wednesday, March 21, 2007

Local Officials Give JFC an Earful

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