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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:  June 16, 2011

SUBJECT:  Assembly Passes the Budget

In This Issue
Assembly Passes State Budget
Reaction from lawmakers
 

Assembly passes the budget on a 60-38 vote 

 

After a more than 24-hour delay and 13 plus hours of debate, the Wisconsin State Assembly passed the State Budget on a 60-38 vote at just after 3:00 this morning.  All Republicans and Independent Rep. Bob Ziegelbauer (I-Manitowoc) voted for it, and all Democrats voted against the budget.  

 The $66 billion budget closes a $3 billion shortfall without relying on tax increases.  The plan does raise spending of state and federal money by $1.1 billion, or 1.8% over two years, but leaves the state with an estimated $300 million surplus in its main account two years at the end of the two-year budget.  

 

The version of the budget passed by the State Assembly varies slightly from the bill passed by the Joint Committee on Finance.  Some of the changes that received the most attention leading up to the vote were:
  • Ethic Statements:  Under current law, people can have the ethics forms of more than 2,000 public officials emailed to them after requesting them and paying for them. The JFC amendment would require the forms to be picked up at the Government Accountability Board in Madison.  The GOP budget amendment amendment requires returns to current to law, but raises the threshold of business customers who need to be disclosed by public officials from $1,000 a year in sales to $10,000.
  • WiscNet: Under the amendment the GOP adopted last night the state will keep up to $40 million in federal money and WiscNet will continue to run for at least two years in the same way it has in the past. Any expansions to the network would have to be approved by the committee.  Plans for expansion are expected to be submitted to the Committee in July.  The state could no longer be involved with WiscNet after July 1, 2013, unless the Joint Finance Committee approved a plan for the network before then.
  •  School Choice in Green Bay:  This provision that was added in the Joint Committee on Finance budget, was removed in the Assembly amendment of the budget for lack of support.  Republican lawmakers suggested this be drafted as separate legislation and re-introduced.

A memo from the Legislative Fiscal Bureau outlining all of the changes in the GOP amendment can be found here:  http://wispolitics.com/1006/110615LFBmemo.pdf 

 

What was not in the budget bill, because of the ruling of the Wisconsin State Supreme Court earlier this week, are the provisions related to collective bargaining from 2011 Wisconsin Act 10.  Those provisions will become law effective when the Act is published by the Secretary of State.  The Secretary of State Doug La Follette said his office will likely "follow our normal procedure" in publishing the collective bargaining changes following the Supreme Court decision.  He said that process wouldn't be finalized until the end of the 10-day statutory limit for doing so. He said his staff will contact the Legislative Reference Bureau and the Wisconsin State Journal about finalizing publication of the law.

Specific to the provisions related to public employee contributions, Department of Administration Secretary Mike Huebsch released the following statement regarding how the Administration will start handling contributions:   

 

"The Department is moving forward with plans to implement Act 10. In the coming days, I will be working with my staff to set a timeline and develop a plan for increasing state employee pension and health insurance premium contributions.

Based on initial discussions, the soonest that the change could appear on state employee paychecks is late August.

 

"With regard to local government employees, I will also be setting a timeline for pension contributions. However, the timing of changes to the health insurance premium contributions of local government employees will depend on when existing contracts expire and the status of any current contract negotiations.

 

"We will not be applying the provisions of Act 10 retroactively."

 

 

The budget now goes to the State Senate which is scheduled to begin debate at 10:00 a.m. today. 

 

Reaction to the budget from the two Assembly Leaders:

Assembly Speaker Jeff Fitzgerald (R-Horicon):

News ASM39

"This is about restoring fiscal sanity to the state of Wisconsin.  

 

Finally, the state will do what responsible families have already been doing - we are going to stop spending more than we are taking in.

 

"Instead of being worried about the next election, we are worried about the next generation. We made the tough decisions now rather than put them off. It is exactly what the voters sent us here to do.

 

"To take a $3 billion plus deficit and eliminate it without raising taxes or fees, raiding segregated funds or using accounting gimmicks was a difficult task. The fact that the Legislative Fiscal Bureau is predicting we will be in the black in two years is remarkable."


Assembly Minority Leader Peter Barca (D-Kenosha)Barca

 "Gov. Walker's vision for Wisconsin was rubber-stamped by Assembly Republicans  today. That vision, unfortunately, will permanently hurt the middle class. They grabbed taxpayer money from our public schools and gave it to private voucher schools. They cut job training opportunities at technical colleges. They raised college tuition while lowering student aid. And they raised taxes on Wisconsin seniors who are struggling to remain in their homes. 

 

"This budget desecrates our proud Wisconsin tradition of supporting our middle-class - the backbone of our state.
"In this budget, Republicans also increased spending by $1.1 billion, spent $411 million from raided funds, hiked fees by $111 million, increased borrowing to kick an even bigger can even farther down the road and raised taxes by $70 million on working
families and senior citizens. 

 

"Every one of these actions represents a broken promise by the Republicans. 

 

"It is a strong, vibrant middle class that made America an economic powerhouse and the
envy of the world. Attacking Wisconsin's working families, while spending billions on
special interest giveaways and corporate tax loopholes, permanently harms Wisconsin's
citizens, economy and our future. Democrats will not rest until we can restore the rights,
values and opportunities that Wisconsin's working families deserve."