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| Wisconsin: Legislative & Political Weekly Update
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TO: Clients & Friends of Capitol Consultants, Inc. and Wimmer & Company
FROM: Capitol Consultants, Inc.
and Wimmer & Company
DATE: June 13, 2009
SUBJECT: Wisconsin Budget Update
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Assembly Pulls an "All-Nighter" and Passes State Budget
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After starting two days later than they planned and working until early Saturday morning, the Wisconsin State Assembly passed the budget out of their house and on to the State Senate.
The State Assembly, which is controlled 52-46-1 by Democrats, passed the budget on a 50-48 vote at 5:20 a.m. this morning. Representatives Bob Ziegelbauer (D-Manitowoc) and Peggy Krusick (D-Milwaukee), voted with the 46 Republicans against passage and Republican turned Independent Representative Jeff Wood (I-Chetek) voted with the Democrat majority on passage. Representative Nick Milroy (D-Superior) was granted a leave of absence to be at home with his wife who was in the hospital.
The Assembly took to the floor at 6:15 p.m. Friday night, and after 45 minutes of opening remarks by leaders of both houses to position the debate for the night, they began voting on amendments to the budget.
There were 131 amendments offered to the bill that passed the Joint Committee on Finance and 21 amendments to the Assembly Democrat Caucus super simple amendment to the bill.
There were only two changes made to the super simple amendment to the bill; one related to the Milwaukee School Choice program, which was agreed to in the Democrat caucus prior to taking to the floor and one amendment related to the early release of prisoners which was adopted early this morning.
Earlier this week it was announced that an amendment was adopted in the Democrat Caucus that would reduce the enrollment cap of the Milwaukee School Choice program from its current level of 22,500, that was not changed in the Joint Committee on Finance, to 19,500. However after much deliberation the caucus changed the cap to a 1,000 seat reduction to 21,500, instead of the 3,000 seat reduction.
Early in the evening Republicans offered several amendments to the corrections budget that would exclude several classes of criminal offense from the proposed early release program. The majority party made some procedural maneuvers which placed these provisions at the foot of the day's calendar, after their caucus amendment. An amendment to the caucus amendment, with several provisions similar to those offered in the Republican amendments, was offered co-authored by Rep. Joe Parisi (D-Monona) and Rep. Scott Suder (R-Abbotsford), and the entire Assembly added as a co-sponsor. The amendment excludes several classes of criminal offense from the early release program, including felony murder, kidnapping and possession of a gun in a school zone.
The State Senate plans to take up the budget during this upcoming week, in a similar fashion, with the intent still being that a bill is signed into law prior to the June 30th end of the state's current fiscal year. |
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Democrat Leadership Reaction to Budget Passage
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 MADISON - Speaker Mike Sheridan (D-Janesville) released the following statement regarding passage of Assembly Bill 75:
"In the face of the worst economic crisis to hit our nation in decades, Assembly Democrats made the tough choices and showed the real leadership needed to close Wisconsin's historic $6.6 billion deficit.
"We passed a common-sense plan that reduces state spending by $3.2 billion, protects the overwhelming majority of Wisconsin workers and families from income, sales and payroll tax increases, and shields our most important priorities like education, health care and public safety from the deepest cuts.
"We also listened to Wisconsin's diverse voices throughout this process, and strengthened the budget by expanding business-boosting and job-generating tax credits; restoring funding for public safety programs; and capping the gas tax while securing a reliable source of funds for Wisconsin's transportation infrastructure.
"Through responsible leadership and shared sacrifice, we have delivered a balanced budget that puts Wisconsin on a track to economic recovery and future prosperity." Madison -- Assembly Majority Leader Thomas Nelson (D-Kaukauna) released this statement following passage of the budget by the Assembly. "In the face of historic challenges -- record unemployment, skyrocketing foreclosures, and the worst deficit in state history -- this budget asks our state to do more with less. It is, in the simplest of terms, a fair share budget. Everyone is asked to do their fair share -- to pay their fair share, and to sacrifice their fair share." "This budget includes $3.2 billion in spending cuts -- the deepest in Wisconsin history. At the same time, it protects 99% of Wisconsin families from tax increases, and maintains investments in our most important priorities: education, job creation, economic development, public safety, and support for local communities." "Extraordinary times require extraordinary leadership, which the Assembly has demonstrated through passage of this budget. In the end, Assembly Democrats have produced a bill that balances the budget, holds the line on taxes on Wisconsin workers and families, and invests in our most important priorities."  Joint Finan Co-Chair Mark Pocan:Madison - Today, the Wisconsin Assembly approved the 2009-11 budget legislation, sending it for consideration to the Senate. During the worst national economic crisis since the Great Depression, state lawmakers crafted a budget that cuts general purpose revenue by 2.3% and includes no tax increases for the vast majority of Wisconsinites.
"After months of public debate and scrutiny, during an incredibly difficult economic crisis, I am proud to say we passed a budget that holds true to our values," said Rep. Mark Pocan. "This budget makes tough spending cuts, protects working families from tax increases, and preserves our commitment to job growth, health care, education, and public safety."
Wisconsin is facing a once-in-a-lifetime, historic crisis in the national economy-47 states are in a similar position. A number of those states have taken steps or are seriously considering proposals that will have a deep impact on average working families, such as across-the-board income tax increases, general sales tax increases, 5-10% cuts to K-12, even deeper cuts to higher education, and eliminating health insurance for the poor.
"This budget makes significant cuts to state government and everyone will share in the sacrifice. We worked hard to address the deficit without resorting to the most severe and painful actions taken by other states," said Rep. Pocan.
The Assembly budget accomplishes the following:
· $3.2 billion in spending cuts-the deepest in Wisconsin history, representing a 2.3% total cut to GPR spending;
· No across-the-board income tax increase; only couples making over $300,000 per year will pay one percentage more;
· No across-the-board sales tax increase;
· No payroll tax increase;
· Holds the line on property taxes;
· Maintains a commitment to protect health care access for the most vulnerable;
· Avoids a 5-10% cut to K-12 education-instead holds the line at a 2.5% additional cut;
· Makes additional investments in technical colleges for worker training that will promote economic growth; and
· Holds the line on cuts to shared revenue to minimize the negative impact on local services, like police and fire service.
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Assembly Republican Reaction to the Assembly Passing the State Budget
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 Madison - Assembly Republican Leader Jeff Fitzgerald (R-Horicon) voted with his caucus against the state budget that Democrats crafted behind closed doors. After offering more than 100 different ways to improve the budget, Assembly Democrats stuck with their own plan.
"Not surprisingly, when Democrats alone craft the entire budget, you get a very typical Democrat product," Rep. Fitzgerald said. "The result of closed-door deals and votes by moonlight are increased spending, higher taxes, more social programs, dozens of pork projects and special-interest policy items aimed at helping their supporters."
The budget passed by Democrats includes provisions that will raise auto insurance rates, increase building costs for local governments and remove the Qualified Economic Offer - a tool for controlling property taxes. In addition, they will release felons early, put a tax on every phone line in the state and make the garbage tax the highest in the country.
"During the worst recession in generations, Democrats increased both spending and taxes by billions of dollars," Rep. Fitzgerald said. "Clearly, the Democrats put the state budget ahead of the family budget." ###  Republican Ranking Finance Committee Member Represenatitive Robin Vos (R-Caledonia) Madison...Despite hours of debate and over 100 proposals to amend the state budget currently making its way through the Wisconsin Legislature, Democrats held firm in their resolve this morning to raise taxes on Wisconsin families, according to state Rep. Robin Vos (R-Caledonia).
"It's clear Assembly Democrats had no intention to make any part of this budget better," said Vos. "Our common-sense proposals would have helped to create jobs, eliminate tax increases and bring much-needed reforms to certain programs."
Vos said Assembly Republicans offered 130 amendments to the budget, but were rebuffed on every idea. Examples included proposals to eliminate a variety of tax increases including a new increase in the per-gallon gas tax and the seventy-five cent telephone tax. Non-fiscal policies such as prevailing wage and early release of prisoners were also identified for removal.
"While Assembly Democrats claim this budget is a responsible fiscal document, nothing could be further from the truth," remarked Vos. "This budget raises taxes and fees by $4 billion on average working-class families in a time when people are really hurting because of the current economy."
According to Vos, the budget was the product of multiple closed-door meetings and middle-of-the-night debates that will raise property taxes on homeowner by at least $316, will dismantle the Milwaukee Parental Choice Program, will gut welfare reform and truth in sentencing laws, and will subject Wisconsin families to a multitude of new tax and fee increases. The final budget vote occurred at 5:20 Saturday morning - three days after the Assembly was scheduled to meet.
"The taxpayers of Wisconsin should be outraged," Vos said. "They will now be on the hook for billions of dollars more to help fix Wisconsin's huge fiscal crisis, but have had virtually no input in the creation of a budget that is loaded with pork, increases spending by 6.3% in a recession, and creates a $2 billion deficit in the next biennium."
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