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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 19, 2009

SUBJECT:    Weekly Political and Legislative Update

In This Issue
Minnesconsin? Governors Doyle and Pawlenty to Collaborate to Reduce Costs
Budget Update - Hospital Assessment
Assembly Democrats to Implement New Fundraising Rules
Upcoming State of the State
Minnesconsin? Governors Doyle and Pawlenty to Collaborate to Reduce Costs
Last Tuesday, Wisconsin Governor Jim Doyle, a Democrat, held joint press conferences with Minnesota Governor Tim Pawlenty, a Republican, in St. Paul and Madison to announce that the two governors would work in a bipartisan manner to consolidate the purchasing of state services in the hopes of saving "tens of millions of dollars" over a number of years (www.wispolitics.com).

 The Governors, from neighboring states that are both facing significant budget deficits, pledged to work collaboratively in the purchasing of bulk services such as food for prisoners, salt for roads, computer software and heavy equipment. Other areas were services will be shared will be through the joint usage of vehicles and facilities. For example, the State of Wisconsin's Department of Natural Resources (WDNR) will use the State of Minnesota's Department of Natural Resources' helicopter services for deer herd management since the WDNR does not currently own helicopters.

To read the Governors' joint press release, click on the link below:

http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3894

Budget Update - Hospital Assessment

Last week, there were developments regarding the upcoming budget. 

Reports are that Governor Doyle and legislative leaders have reached a preliminary agreement regarding an assessment on hospitals, which will allow the state to bring in additional funding through the Medical Assistance (MA) program. (Of course, the proposed assessment has not been introduced as legislation, so a lot can happen between now and then in terms of what the final package will look like).

 
According the State of Wisconsin's Department of Health Services (DHS), the hospital assessment would bring in approximately $300 million in federal funding each year. The assessment would bring in roughly a $1.65 for every $1 taken from state hospitals .
 
The hospital assessment was a signature issue for the Governor and legislative Democrats during last session's budget debate. In fact, nearly every legislative Democrat made the hospital assessment, and its additional federal funding for the state, a signature issue of their campaigns this fall. 
 
According to DHS, the plan would:

* Invest approximately $240 million into the Medicaid program over three years.

* Raise the hospital Medicaid rates to almost triple the average Fee-For-Service outpatient visit rate.

* Raise inpatient rates by an average of 32% per discharge.

The federal money would also be used to fund statewide implementation of the BadgerCare Plus Core Plan for Childless Adults (www.wispolitics.com).

To see reaction to the Hospital Assessment, click here:

Department of Health Services statement:

http://www.wispolitics.com/index.iml?Article=145706

Wisconsin Hospital Association statement:

http://www.wispolitics.com/index.iml?Article=145713



Assembly Democrats to Implement New Fundraising Rules
Assembly Speaker Mike Sheridan (D-Janesville) announced that Assembly Democrats would take steps to change their chamber's rules to ban lawmakers from fundraising during the upcoming budget cycle. The change needs to be approved by the Assembly Committee on Organization, which is expected to act in the next few weeks.
 
Sheridan also stressed during his public appearance this week that his Caucus' priorities this session will be job creation and health care. Sheridan, the former UAW Local 95 President, said actions by Assembly Democrats should not endanger job creation in the state and that he would continue to demonstrate the ability to reach across the aisle and look for compromise with Assembly Republicans on the major issues facing the state (www.wispolitics.com).
 
Sheridan also demonstrated a cool manner toward the Healthy Wisconsin plan that was passed by Senate Democrats last session and has been pushed again this session by Senate Majority Leader Russ Decker.
  • To see Sheridan's statement regarding the upcoming campaign finance rule change, click here: http://www.wispolitics.com/index.iml?Article=146042
     
State of the State - January 28, 2009 - 7 p.m.
Governor Doyle will give his 7th State of the State Address on Wednesday, January 27, 2009, at 7 p.m. in the Assembly Chambers of the State Capitol.


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