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Capitol Consultants, Inc./Wimmer & Company S.C.

Wisconsin: Legislative & Political Weekly Update
TO: Clients & Friends of Capitol Consultants, Inc. and Wimmer & Company

FROM:         Capitol Consultants, Inc.
                     and Wimmer & Company

DATE:         January 12, 2009

SUBJECT:    Weekly Political and Legislative Update

In This Issue
2009-2010 Legislative Session Begins
Budget Update
Weekly Schedule
2009-2010 Legislative Session Begins

Monday, January 5th was Inauguration Day in Madison for the members of the 2009-2010 Wisconsin State Legislature.
 
The State's looming $5.4 billion budget deficit and the state of the state's economy weighed heavily in the remarks of legislative leaders.
Assembly Speaker Mike Sheridan (D-Janesville), the first Democrat Assembly Speaker since 1994, noted in his remarks that according to the Wisconsin Department of Workforce Development, in the last year "more than 736,000 Wisconsinites filed for unemployment and initial claims are up 40 or 50 percent from this same time last year."
 
Speaker Sheridan noted that the State Assembly's economic agenda will focus on increasing support for worker training and retraining programs, encouraging the growth of emerging industries (like green technologies) and a focus on "buying locally - buying American."   Speaker Sheridan also stressed a bi-partisan tone and noted there was room for innovative ideas from "all members of this body."
Senate Majority Leader Russ Decker (D-Weston) in his inaugural remarks also acknowledged the difficult financial situation facing the state of Wisconsin, but stated that the "... our state has always risen to challenges and I'm confident this group of men and women will do the same."

Majority Leader Decker stated that the Senate economic agenda will focus on investments in infrastructure and education.  By investing in the roads and bridges "our businesses need to move their products," Decker said "Those investments mean Wisconsin companies hiring Wisconsin workers and paying family supporting jobs with health care and pension benefits."

On education, Decker said the Senate will "make sure our state can still educate the workforce Wisconsin companies need to be the leading companies of the future."
 
Senate Minority Leader Scott Fitzgerald (R-Juneau) said members of his caucus are ready to assist the Senate Democrats in solving the state's "unprecedented budget deficit."  Senator Fitzgerald said that both parties agree on what the problems facing the state are; high taxes, the need to rebuild the economy and reform health care and education, but Senator Fitzgerald warned that "increasing taxes, any taxes, will only make the burden higher."
 
Other Legislative News: 
  • Senate Democrats this week introduced their first three bills of the legislative session; Senate Bill 1 (SB1), which would increase the minimum wage from $6.50 to $7.60, Senate Bill 2 (SB2) would decrease the priority of a commercial lending institution on an employee wage lien and Senate Bill 3 (SB3) would mandate insurance coverage for autism treatment.  In announcing the introduction of these three pieces of legislation, Majority Leader Decker stated, "These three bills continue the efforts of the Senate Democrats to put working families first. Banks and insurance companies shouldn't come before Wisconsin families." It is highly likely that these three pieces of legislation will receive action in the State Senate during the January, 27th-30th floor period.
  • Senator Decker stated in an interview with the Wausau Daily Herald that he and Senator Jon Erpenbach (D-Waunakee) are reworking last session's Healthy Wisconsin health care reform proposal (2007 Senate Bill 562) and plan to reintroduce it again this session.  
  • The Department of Interior's Bureau of Indian Affairs (BIA) rejected the Menominee Nation of Wisconsin's land into trust application for an off-reservation casino at the Dairyland Greyhound Park in Kenosha.   The BIA noted two reasons for rejecting the application; the distance the proposed casino would be from the established reservation and the impact that would have on reservation life, and the failure to justify to the BIA the need for the additional land to meet the economic needs of the tribe.  The tribe plans to challenge the BIA's ruling on the grounds that the BIA changed the rules of the application process in mid-process.



Budget Update

 
President-elect Barack Obama had hoped to have a federal stimulus package from Congress ready to sign on Inauguration Day, January 20th; however it is very unlikely that a package will be ready this month.  U.S. Representative Dave Obey (D-Wausau) in an interview with Wispolitics.com said that he believes that Congress will be ready to forward a stimulus package to the President by the middle of next month.
 
The federal stimulus package will play a significant role in helping to address Wisconsin's $5.4 billion budget deficit.  Governor Doyle stated this past week in interviews that he believes Wisconsin's share of the federal package could be about 2 percent, based on our state's size in relation to the other 49 states.  The economic stimulus package that President-elect Obama is working to finalize is estimated to cost $800 billion over two years. 
 
This week the Wisconsin Legislature approved moving the Governor's statutory deadline for delivering the state budget from the last Tuesday in January, to Tuesday, February 10th, to give the Governor's Administration a little more time to assess the amount of aid coming from the federal government.  Governor Doyle said that if he does not have a good assessment of the aid coming to Wisconsin by that time, he will introduce a budget that does not account for any federal aid.
 
Other budget news;
 
  • Department of Administration Secretary Mike Morgan sent a letter to the agency heads of the Department of Agriculture, Trade & Consumer Protection, Commerce, Health, Natural Resources, Public Service Commission, University System and Wisconsin Technical College System informing them that in order to partially address a $386 million budget deficit in the current 2008-2009 Fiscal Year, those agencies will see some of their grant programs reduced by a total of $25 million in the remainder of this fiscal year.  Affected programs include; Brownfield grants, tobacco use control grants, aids to local fairs, waste reduction and recycling grants.  Secretary Morgan's letter can be found here; http://www.wispolitics.com/1006/090106Morganletter.pdf
  • The Department of Revenue's quarterly "Wisconsin Economic Outlook" reports this month that the Wisconsin economy has entered a recession.  According to the report the freezing of the credit market and drop in foreign demand are the major factors driving the "economic crisis."  The report states that state employment will continue to decline due to sizable job losses in the Manufacturing and Trade, Transportation and Utilities sectors.  Total state employment is expected to decrease by 0.6% in 2008 and 2.2% in 2009, and begin recovery toward 2010. Wisconsin personal income growth, which had grown steadily over the last three years, is expected to stall in 2009.  The full Outlook can be found at: http://www.revenue.wi.gov/ra/0812/0812exec_summary.pdf



Weekly Schedule
 
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