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Legislative Update

May 21, 2004

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Legislative Session

This week, both the Senate and Assembly met to pass a number of proposals, including two to adjust Medicaid payments and another to change health savings accounts. Another was to create legislative approval of tribal gaming compacts. All these proposals must be approved by the Governor and a veto of the tribal gaming bill is expected.

Veto Override Failed

Additionally, the Assembly attempted to override the Governor’s veto of AB-830, which would have provided funding for a UW-Rock County engineering program. The override failed on a partisan vote of 54-39, and Regent President Toby Marcovich has indicated the UW System will include this proposal in its 2005-07 budget request.

Constitutional Amendment Limiting spending

Assembly Speaker John Gard is proposing a three-year Property Tax Freeze bill to hold property taxes constant until a constitutional amendment (TABOR initiative) limiting state spending to 80 percent of the percentage growth in personal income can be passed through two successive legislatures and be voted on by the public. There is speculation that the Joint Finance Committee will take up these proposals in public hearings around the state in the next several weeks. Both houses could convene a session to vote on the constitutional amendment as early as the first week in June.

More at: http://www.wispolitics.com/1006/gard_taxpayer_bill_of_rights.pdf

According to the Fiscal Bureau memo:

“The proposal would limit the year-to-year percentage increase in the state budget to 80% percent of the change in statewide personal income, if the change were positive. Any excess of allowable expenditures over the amount budgeted would be carried over for determining allowable expenditures the next year. Spending above the limit would be authorized only if approved in a statewide referendum.

“The limit would apply to total expenditures by the state, except those specifically excluded by the Legislature in enabling legislation enacted following ratification of the amendment. The proposal would specify the Legislature would not be allowed to exclude expenditures, other than for tax credits, that are funded from any revenue derived from a state tax, fee, license, tuition, or charge for services imposed or authorized by state law or administrative rule or from any interest derived from those revenues, unless the revenue was deposited in a fund other than the general fund, transportation fund, conservation fund, environmental fund, petroleum inspection fund, recycling fund, public benefits fund or universal service fund.

“Any general purpose revenues received in a fiscal year in excess of the amount needed to fund authorized expenditures would be deposited in a budget stabilization fund until the fund reaches 3 percent of the GPR expenditures. After that, excess GPR would be used for property tax credits for residents as provided by law. Distribution of the revenues could not vary based on income or age of the person provided the credits and would not be subject to the uniformity clause of the Constitution. Stabilization fund money could be appropriated for allowable expenditures as needed.

“For local units, the proposal would limit the year-to-year percentage increase in final budgeted spending for each type of local government to 80% of statewide personal income growth, if positive. The Legislature could allow for a variation in the rate of allowable increases among individual local governments, provided the statewide allowable increase for each type of local government does not exceed the percentage. Excess allowable expenditures could be carried forward for budgeting purposes. Spending above the limit would be allowed only by local referendum.

“The limit would apply to spending by each local governmental unit, except those specifically excluded by the Legislature in enabling legislation. The proposal would specify that the Legislature would not be allowed to exclude expenditures, other than for debt service or TIF districts, that are funded form any revenue derived from a local tax, fee, license, tuition or charge for services imposed or authorized by a local government.”

Recent Committee Hearings

The Assembly Committee on Labor met this week to discuss the recent strike activities of the Teaching Assistants Association (TAA) at UW-Madison.

UW-Madison Provost Peter Spear spoke to the committee about the impact of the strike. He said the university communicated to the TAA that it did not support an illegal strike and that the state’s offer to the TAA’s was fair. University policy is that if an instructor misses a class, the class is to be rescheduled or alternative work assigned. Provost Spear indicated the action was over, grades were not withheld, the disruption was minimal, classes in many were schools unaffected (action centered in L&S and Education) and UW-Madison did not see value in punitive action (nor could it implement action because it did not know which TAs had engaged in the illegal activity).

In response to these statements, Committee Chair Rep. Steve Nass (R-Whitewater) hinted at negative action toward the UW budget request for 2005-07. “And when we look ahead to the budget, there clearly is no accountability up there. They didn’t know who walked off. They don’t know who made up classes.”

Other News

Nick Voegeli of Sun Prairie will seek the Republican nomination for the 46th Assembly District, where incumbent Democrat Tom Hebl is leaving the Assembly to run for the 16th Senate District. Voegeli is currently an alderman in Sun Prairie and is a former deputy state treasurer.

Former Sen. Gary Drzewiecki will run again for the 30th Senate District, now held by Sen. Dave Hansen (D-Green Bay). Drzewiecki, of Pulaski, lost to Hansen in the 2000 election.