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Sponsor's Insight
Traditionally, the final days of the legislative cross-over are always active with some of the more significant votes of the session taking place but this year there was an added degree of flair. And if it all was not so real, there could probably have been several April Fool jokes built into this week's report.
With some of the key votes surrounding the state budget, union rights, retirement issues and other public employee benefit matters, for a short time on Thursday, Concord took on a Wisconsin-light look as public employee union members flooded the State House lawn to protest the changes being debated in the State House. While not as large or as enduring as the protests in Wisconsin, the protesters certainly made their presence known with chants, music and disruptive behavior of official state business.
The State Budget
The most critical vote of the week took place in the House on the state budget. After Governor Lynch submitted a relatively austere budget in mid-February, the House Finance Committee worked on it for nearly 6 weeks and produced a budget that had significant differences from the Governor. Those differences totaled about $500m in less state spending over the two-year biennium. The two primary reasons for the House's smaller state budget is the differences between their respective view of anticipated revenues and not downshifting costs to the local municipalities. The House passed its version of the budget by a wide margin.
The next step in the budget process takes place in the State Senate as they will have hearings and work sessions on the measure. In addition to likely changes to the spending side of the ledger, the Senate is also likely to adjust revenue estimates as they have the benefit of learning how much the state is taking in during two key business tax months, March and April.
It is expected that the Senate will likely increase spending in the budget but not to the level that the Governor had in his proposal and frankly, it will probably be closer to the House spending level rather than the Governor's. Then at that point, the budget will be sent to conference committee of the Senate and House to iron out their differences. Clearly, the spending plan will go no lower than what was passed this week and is likely to restore some of the cuts in the House budget.
So if that scenario plays out, what will the Governor do? Will he use his oversized veto pad he joked about in March? It depends. It may depend on the votes in the House and Senate when it goes back to each body for final passage to the Governor. If, as he said yesterday, the version of the budget that reaches his desk for his signature is not acceptable to him, then he may veto the it and challenge the Republican majorities in the House and Senate to override his veto. With the lopsided vote for the first step in the budget process (243-124), clearly there will be a lot more talk about a potential veto and the ability to sustain or override it.
Retirement & Other Benefits
On Wednesday, the Senate had a vote on a measure that takes aim at solving the unfunded liability in the state's retirement system. Senate Bill 3 was the Senate's comprehensive effort by reforming different components that determine benefit levels. The House also passed a reformation bill that is somewhat different than the Senate bill so clearly differences will have to be worked on during the second half of the session or at the time for conference committees.
But despite the differences under consideration at this time, it is safe to predict that some form of change will take place that will shift some of the unfunded liability that is now being entirely borne by the taxpayers to the beneficiary of the plans.
And finally, from the perspective of the worker, perhaps the most egregious change under consideration would be the near elimination of the collective bargaining law. Based upon what is being said in the hallways of the State House, eliminating collective bargaining rights will not likely occur, as the Senate is not poised to vote for such a change. So there is one bill the Governor will not have to worry about vetoing. But as mentioned in this week's column and previous weeks' reports, clearly the Governor will be developing a strategy of when and what he will be considering to veto from this Legislature.
Stay Tuned
The first three months have certainly had plenty of activity for debate from one end of the spectrum to other. One can only imagine that the next three months will not disappoint in that regard, either.
Bruce Berke
Sheehan Phinney Capitol Group
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