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Capitol Notes
WI: Weekly Political and Legislative Update
TO: Clients/Friends of Capitol Consultants, Inc./Wimmer & Company, S.C.

FROM:  Capitol Consultants, Inc.
               & Wimmer  Company, S.C.

DATE:  January 26, 2010

SUBJECT:  State of the State Address

In This Issue
Gov. Doyle delivers final State of the State Address
State of the State Reaction- Republicans
State of the State Reaction- Democrats
Gov. Doyle delivers final State of the State Address

GOvernor Doyle Tonight, Governor Jim Doyle addressed both houses of the State Legislature for his final State of the State Address.  Governor Doyle announced in August that he would not be seeking re-election this year to a third term.

In his speech the Governor focused on the need for additional budget cuts, job creation, expanded health care access and education reform.

Early in his remarks the Governor warned of additional budget cuts on the horizon.  He made the following remarks without additional specificity:

"I will have to make another round of difficult cuts. But we will make these cuts as we have made them before - protecting education, health care, and public safety, and protecting the middle class against tax increases. "
 

On job creation, Governor Doyle pointed to the Senate Democrats' C.O.R.E. (Connecting Opportunity Research Entrepreneurship) Jobs Act (Senate Bill 409), legislation to create a Regional Transit Authority in SE Wisconsin, and the Clean Energy Jobs Act, as vehicles to create more jobs. 
  • C.O.R.E. (SB 409) is a collection of initiatives and tax credits aimed growing startups, retaining existing businesses and educating and retraining the workforce.  SB 409 passed the Senate on 1/21/10 on a 32-1 vote. http://legis.wisconsin.gov/2009/data/SB409hst.html
  • The Regional Transit & Jobs Investment Act (not yet introduced), authored by Sens. Taylor and Lehman and Reps. Barca, Turner and Grigsby, is legislation that authorizes the creation of a new type of RTA known as an Interim Regional Transit Authority (IRTA), which is a public body corporate and politic. The bill also makes significant changes relating to the SERTA.
  • Clean Energy Jobs Act (SB 450/AB 649) is the product of the Governor's Global Warming Task Force.   Both SB 450 and AB 649 are receiving public hearings over the next couple weeks. http://legis.wisconsin.gov/2009/data/SB450hst.html
In addition to throwing his support behind these initiatives, Governor Doyle announced the creation of a Wisconsin "Green to Gold" fund.  This fund would be a new $100 million revolving loan fund for manufacturers to reduce their energy costs.  Governor Doyle said the $100 million will come from "streamlining existing state resources."  Governor Doyle  also announced the investing of $1.75 million through the Wisconsin Manufacturing Extension Partnership to help smaller manufacturers use sustainable practices to save money and gain a competitive edge.

Governor Doyle highlighted recent gains the state has made in the bioscience space noting the relocation of 8 biotech companies to the state in the last 3 months:

"In just the last three months, we saw 8 biotech companies relocate here ... from Minnesota, Massachusetts, Colorado and Florida ... because we've created a world class bioscience environment and opportunities for entrepreneurs to raise more capital."

On health care Governor Doyle touted his recently announced his BadgerCare Plus Basic program, a new "self-funded health care plan" for the 21,000 plus adults without dependent children who are on the state health care waiting list for the BadgerCare Plus Core plan. The BadgerCare Plus Core Plan provides standard health benefits for low-income adults without dependent children. 

BadgerCare Plus Basic will provide enrollees with limited access to physicians, hospital services, generic prescriptions and catastrophic coverage, and will "be paid for entirely through a monthly premium of $130."   Senate Bill 484 was introduced today in the Legislature and provides the enabling language for the Governor to create this program.  If this program is adopted, the Governor stated that 98% of Wisconsinites will have access to health care.

And on education reform, the Governor saved some of his most passionate remarks for increased support for his proposal to give the Mayor of Milwaukee more control of the troubled Milwaukee Public School system.

"Let me say a word about the Milwaukee Public Schools. We had better face the cold, hard reality about MPS - we simply cannot continue to allow one group of our kids to be held back...

... The state and federal government fund 80 percent of the Milwaukee Public Schools' budget. In my seven years as Governor, we have directed more than $5.2 billion to the Milwaukee Public Schools.

Even more important, the Milwaukee Public Schools as currently operated cannot be sustained educationally. Despite our huge state investment, test scores show Milwaukee consistently ranks at the bottom of urban districts in the country.

It is becoming harder and harder for the people who are fighting to defend the status quo.

We have great teachers and principals in Milwaukee. And we have bright students who come to school eager to learn. But what we don't have is clear, consistent, accountable leadership focused on reform.

We need a superintendent appointed by the mayor who will have a clear mission of reform and the ability to drive real change ... day after day, month after month, year after year.

Look, I understand change is hard.

... Only this Legislature can make this change. If you do not act now, you will be picking up the pieces of a broken school system within a few years and failing children who desperately need your help."


Governor Doyle's prepared remarks:
State of the State Reaction- Republicans

Republican Gubernatorial Candidate Scott Walker
scottwlker
In his [State of the Economy] address, Walker called on Governor Doyle the "act now to get our state back on track and to put our people back to work by repealing the job killing combined reporting tax, so Wisconsin companies can keep good paying jobs here," citing factories across Wisconsin that have been directly affected, including Harley Davidson, Briggs and Stratton, and Murphy Oil.

Walker also stressed we "must act now" to protect the 43,000 Wisconsin jobs the Wisconsin Policy Research Institute predicts will be lost if Governor Doyle's global warming regulations are passed, saying "the Governor leaves out is the price that Wisconsin families will pay today for these costly new regulations - in higher utility bills and increased job losses from existing employers," and highlighted the need for "Governor Doyle and the legislature to put the brakes on this and all legislation that will increase the cost of living and doing business in Wisconsin. Our families and employers can?t afford it."

Walker concluded, "Unfortunately, the state of Wisconsin's economy is weak. Fortunately, the determination of our people is strong - very strong. We must remove the barriers to economic growth by lowering taxes, reducing runaway government spending, improving education, and putting an end to excessive regulation. Working together, we can put government back on the side of the people and build a Wisconsin we can believe in again."

Republican Gubernatorial Candidate Mark Neumann
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"There is no doubt that, as a career politician, Jim Doyle is painfully out of touch with the struggles being faced by working folks throughout Wisconsin. The Doyle record cannot be swept under the rug: it is a record of job losses, of historic tax and fee increases, of an economic climate that has devastated Main Streets across Wisconsin.

"The simple fact is that career politicians in Madison and Milwaukee have failed to stop the bleeding of tens of thousands of jobs. When the number of jobs in government beats the number of jobs in manufacturing, you know something has gone seriously wrong in Wisconsin."

Assembly Minority Leader Jeff Fitzgerald (R-Horicon)
JFitz
"Governor Doyle spun a fictional tale this evening," Rep. Fitzgerald said. "Trying to rewrite history and reform his legacy is no small task.  Recurring budget deficits, early release of felons from prisons and businesses leaving the state in droves are hard to disguise.  Despite the Democrats' talk of job creation, we are down more than 150,000 in the last year.

The Democrats passed a budget with $5 billion in new taxes during the worst recession in generations.  By adding 236 new state jobs in that budget, Wisconsin has more government jobs than manufacturing jobs for the first time in our state's history.  Those disastrous jobs numbers are Governor Doyle's true legacy."

Senate Minority Leader Scott Fitzgerald (R-Juneau)
FitzgeraldSen
"I think Gov. Doyle probably said 'jobs' more times tonight in this speech than he has in his seven years as Governor. The fact is, the record doesn't match the rhetoric. On his watch, Wisconsin has seen nearly 90,000 jobs lost in the manufacturing sector, while at the same time government jobs increased by nearly 30,000 and the state budget grew from $48 billion to nearly $66 billion.

"This speech was clearly about the legacy he wants to leave behind. So, it is fitting that to cap off his less-than stellar career as governor, the centerpiece of his final lame duck year is global warming legislation that will eliminate tens of thousands of private-sector jobs, mostly in manufacturing."
State of State Reaction- Democrats

SheridanAssembly Speaker Mike Sheridan (D-Janesville)

"In 2009, Wisconsin faced enormous challenges caused by the global economic downturn; workers were laid off, families lost their homes and businesses shut down. In my hometown of Janesville, these troubles are still very apparent.

"Complete economic recovery won't be easy and it won't happen overnight, but I believe the state of our state is getting stronger every day. Thanks in part to the action Assembly Democrats have taken, Wisconsin workers are now training for high-tech and high-demand jobs and businesses are now moving to or expanding in Wisconsin. Early signs of success are popping up all across the state, and economists predict we will outperform national growth rates in 2010.

"As Governor Doyle said tonight, we will continue our work to stabilize and strengthen Wisconsin's economy. We have four months left in this legislative session - and Assembly Democrats are determined to make the most of that time, creating greater opportunity for workers and businesses and a better future for us all."

Assembly Majority Leader Thomas Nelson (D-Kaukauna)
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"Assembly Democrats are committed to strengthening the economy and getting people back to work. I am proud of our work to create more than $200 million in job creation incentives, fund critical worker training and retraining programs, and extend important unemployment benefits for people who are between jobs. While these steps are important, more needs to be done."

"We have tough work and significant challenges ahead of us. But Assembly Democrats are prepared to lead on the issues that matter most to Wisconsin families - strengthening our economy and getting people back to work."

Kevin Conroy, President & CEO of Exact Sciences, Corp.
*

"Tonight, Gov. Doyle discussed the importance of continuing to rejuvenate Wisconsin's economy. I applaud Gov. Doyle's efforts to create a positive climate in Wisconsin for job growth. His leadership was critical to passage of the Wisconsin CORE Jobs Act, which provided millions in tax credits for the angel and venture capital investment so important to emerging companies. Gov. Doyle also worked hard to recruit companies to our state, including Exact Sciences and other life science and technology companies. In challenging times, Gov. Doyle has been a bright spot, fighting for growth in important new Wisconsin industries."

*Before Milwaukee Mayor Tom Barrett announced his bid for governor, Conroy was exploring a run for governor.