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Legislative Update

January 23, 2004

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Legislative Session

The state Senate voted 23-10 on Thursday, Jan. 22, to override Gov. Jim Doyle's veto of the bill to repeal the more than 130-year-old ban on carrying concealed weapons (for a complete bill history go to http://www.legis.state.wi.us/2003/data/SB-214hst.pdf. Sen. Mark Meyer of (D-La Crosse) was the only senator to switch his vote, deciding not to override the governor on Thursday.

Speaker John Gard (R-Peshtigo) is expected to refer the SB-214 veto override directly to the Tuesday, Jan. 27, Assembly Calendar. Direct referral would put the override vote in a position to be taken up on the Assembly floor at any time on Tuesday, or thereafter, without further procedural roadblocks. The bill cleared the Assembly 64-35 on Nov. 5. The UW System has consistently supported an exemption for university properties to protect UW student safety.

In other Senate action, SB-247. which provides that certain orientation information for UW students be distributed electronically, was passed by the Senate on Jan. 21, while SB-268.regarding education tax credit for businesses was referred to Joint Finance.

Finally, Assembly Democrats introduced their “Wisconsin Prosperity Project” at a press conference on Thursday. A comprehensive package of initiatives resulting from several months of meetings with legislators, entrepreneurs and economic development experts, the project focuses on people, partnerships and prosperity and was hailed by Gov. Doyle.

State of the State

Gov. Doyle delivered his second State of the State address to a joint session of the Legislature on Wednesday (http://www.wisgov.state.wi.us/speeches_detail.asp?prid=369 ) The Governor mentioned several University of Wisconsin System economic development-related activities and addressed several priorities for 2004, including:

Passage of venture capital legislation that could help support UW entrepreneurial outreach and education
Passage of a manufacturing competitiveness program
“Worker training initiatives” - from providing training to help workers and businesses become more competitive, to expanding the youth apprenticeship program
An increase in the minimum wage
Formation of a prescription drug buying pool – BadgerRx – and a new website – http://www.drugsavings.wi.gov - to give residents information on how to find lower price prescriptions
Continued support of shared revenue
Finding “workable” financial incentives in the shared revenue formula to “reward fiscal responsibility and consolidation at the local level”
Campaign finance reform
Eliminating the “penalty” for state employees called to active military duty

Reactions (a sampling from statewide media):

“Working together, the Governor and the Legislature were able to pass the Job Creation Act and fundamentally reform our state’s regulatory climate. It is my hope that we can work together in a similar fashion this year to fundamentally reform our state’s tax climate.” – Speaker Gard

“I remain personally committed to working with Governor Doyle on issues close to me, and I agree with him that our shared focus in 2004 should be to work together to achieve bipartisan results.” – Senator Darling

“After getting the state back on track, I look forward to working with the Governor to tackle the critical issues of job creation, health care, education and campaign finance reform.” – Senator Erpenbach

"It just would have been nice to have him mention the UW as a priority. I think there were probably students in the audience who would have liked to hear the UW be among his priorities." – Interim Chancellor Virginia Helm, UWSP

Bills signed into law:

Gov. Jim Doyle signed Senate Bills 357, 358, 359, 360. (ratifies contract with program, project and teaching assistants at UW-Milwaukee), 361 and 362. into law this week. Doyle also signed the Jobs/Regulatory Reform legislation (AB-655 and SB-313) into law.

State of the Union:

President Bush delivered his State of the Union speech this week. After devoting nearly half of the hour-long address to foreign issues, most notably Iraq, the President addressed some of his key priorities, including:

A series of spending proposals, such as abstinence education and drug testing programs at schools and an inmate transition program
Reauthorization of the Patriot Act
Making tax cuts permanent
Increasing federal support for community colleges to provide job training
Increasing the amounts of Pell Grants for secondary-school students who take “demanding” college-preparatory courses.

The President also indicated that his 2005 fiscal year budget proposal will limit the growth in discretionary spending to less than 4 percent. More details of the President’s proposals are expected when Bush releases his 2005 fiscal year budget on Feb. 2. The full text of the speech can be found at: http://www.whitehouse.gov/news/releases/2004/01/20040120-7.html

Omnibus Bill passed by Congress

Congress passed a spending plan for the 2004 fiscal year on Thursday, Jan. 22. The Senate voted 65-28 to approve the legislation, known as an omnibus bill because it encompasses the budgets of seven government agencies, for the fiscal year that began on Oct. 1. The House of Representatives passed the same bill in December by a vote of 242 to 176. President Bush is expected to sign the legislation.

The budget includes an appropriation of $28 billion for the NIH, an increase of $1 billion, or 3.7 percent, over the previous year. The appropriations bill also would provide the National Science Foundation with $5.6 billion, an increase of about $300 million, or 6 percent, compared with 2003. Congress failed to increase the maximum Pell Grant from $4,050, but in a victory for college lobbyists and student advocates, the bill prevents the U.S. Education Department from making a proposed change in the formula that the government uses to calculate a student’s need for financial aid. Budget officials at the department have estimated that 84,000 students would stand to lose their eligibility for Pell Grants in the 2004-5 academic year if the change had gone into effect.

The bill also provides $294-million, a 4.6-percent cut, for a program that helps medical schools increase the number of minority health professionals and educate students to work in rural and poor communities. But the bill also calls for increased federal spending on several other student-aid programs – raising the budget of the Supplemental Educational Opportunity Grant Program by $10 million, or 1.3 percent, to $775 million; increasing spending on the TRIO programs for disadvantaged students by $5 million, less than 1 percent, to $837.5 million. The budget package would provide nearly $10 million more for programs that benefit historically black institutions and colleges that educate many Hispanic students, and would raise spending on black colleges by $8.3 million, or 3 percent, to $277.5 million. Institutions that serve Hispanic students would get $94.5 million, an increase of $1.5 million.

Recent Committee Hearings

On a 5-2 vote, the Senate Committee on Education, Ethics and Elections recommended passage of SB-253. (Independent charter schools established by the UW institutions and college campuses)
The Assembly Colleges and Universities Committee also held an executive session this week on two bills:
- AB-667.(Allows an individual income tax deduction for certain amounts contributed to any section 529 college tuition program). Passage recommended, 12-0.
- AB-686. (Remedial legislation re the State Hygiene Board; nonresident tuition exemption for veterans; transfer program at UW Medical School). Passage recommended, 12-0.

Upcoming Committee Hearings

Assembly Public Health will meet at 8:30 am, Wednesday, Jan 28, on AB-757. a bill to increase bonding authority for the UW Hospitals and Clinics Authority. (NOTE: An executive session will be held)
The Senate Committee on Health, Children, Families, Aging and Long Term Care will meet at 8 a.m. on Thursday, Jan. 29, to vote on SB-388, a measure that increases bonding authority for the UW Hospitals and Clinics Authority.
Senate Higher Education and Tourism, will meet at 10 am on Wednesday, Feb 4 on the following:
- SB-294. Remedial legislation suggested by the Higher Educational Aids Board relating to administration of student financial aid programs.
- AB-209. Allows an individual income tax deduction for certain amounts contributed by a great-grandparent, aunt or uncle to a college savings account or a college tuition and expenses program.
- AB-342. Makes a student convicted of certain drug violations ineligible for state financial aid.

An executive session may be held on SB-209. Regulating athlete agents.

State Building Commission

The State Building Commission met on Wednesday, Jan. 21. The Commission approved a number of items for UW campuses including:

UW-Milwaukee - $9.8 million in bonding and construction authority for Lapham Hall Remodeling
UW-River Falls - Planning and authority to seek enumeration of $2.2 million of existing bonding for Athletics Facilities Development
UW-Madison - Authority and funding of $1.35 million to hire consultants to conduct a Master Plan Update and a Utility Master Plan
UW-Oshkosh - Authority to allow the Foundation to renovate and expand the Titan Athletic Complex with $5 million in gifts
UW System - Provided $750,000 to conduct a 12 campus Storm Water Management Study

Several items on the agenda were unusually controversial in the Higher Education subcommittee. The UW-Milwaukee request to negotiate with a developer for the redevelopment of the Kenilworth building was held over until February, pending another review of the Department of Administration secretary of the RFP process. A request to release $13.8 million in maintenance funding approved in the 2003-05 Capital Budget for 18 projects at nine campuses was reduced to three projects for $633,800. The Division of State Facilities staff is withholding approval of projects until agreement is reached on the approach to campus long-range maintenance plans.

Legislation Introduced

AB-712. MANUFACTURING (Shilling) Creates a Manufacturing Competitiveness Grant Program and board. The program would administer $9.5 million to the UW System, Wisconsin Technical College System and entities that assist manufacturers. To Assembly Economic Development Committee. This is a companion bill to Sen. Hansen’s SB-319.

SB-388. UW BONDING (Darling) Increases bonding authority for UW Hospitals and Clinics Authority. To Health, Children, Families, Aging and Long Term Care.

Other News

Former State Sen. Gary George plead guilty Thursday to a single count of conspiracy, part of a deal that requires his ongoing cooperation with federal investigators. The Milwaukee Democrat was facing a five-count indictment, but federal prosecutors dismissed four other counts against George as part of the agreement.

Department of Administration Secretary Marc Marotta was confirmed unanimously by the state Senate on Thursday. Senate Majority Leader Mary Panzer of West Bend said Marotta has been a voice of reason within the administration and lauded him for his work with the Job Creation Act negotiations. Senate Minority Leader Jon Erpenbach of Middleton also said Marotta’s record of hard work has shown him to be a good representative of the administration and of the state.