Government Relations

Legislative Update

July 13, 2007

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STATE UPDATE

Biennial Budget

The Assembly completed action on the state budget on Tuesday night. 

The package offered by Assembly Republicans passed, as expected, on partisan lines (with the exception of Republican Rep. Jeff Wood joining Democrats) by a vote of 51-44.  See the summary of the Assembly Republican budget.*  

Debate started shortly after 2pm and concluded with a vote shortly after 9 pm. The Democrats offered no amendments and Republican legislator Rep. Jeff Wood (R-Chippewa Falls) offered two amendments related to ethanol that were later withdrawn. Higher education was among the first items to be discussed, with Democratic Representatives Jennifer Shilling, Spencer Black, Gary Hebl, Gordon Hintz, Kim Hixson, and, Jeff Smith making favorable statements towards UW System, the capital budget, and the Growth Agenda. Opposing statements were led by Republican Representative Steve Nass.  

See Wisconsin Eye  archived video of Assembly debate.   For additional coverage, please visit the wispolitics.com public blog.  

Regent President Mark Bradley and System President Reilly issued this statement in response to the Assembly budget’s impact on UW System. The following statements from UW campus chancellors are linked on the same page, and additional links may be added.

  • UW-Madison:  Chancellor John D. Wiley's statement on proposed Assembly budget
  • UW-Green Bay: Chancellor Bruce Shepard: Assembly budget hurts UW-Green Bay, Growth Agenda
  • UW-Milwaukee:  Chancellor Carlos Santiago: Assembly's budget imperils UWM's plan for regional economic development
  • UW-Oshkosh: Note from Chancellor re: Assembly budget

Finally, a resolution to create the conference committee (AJR 59) has been introduced, and will be voted on Tuesday, July 17th.  As expected, it will be comprised of 8 members total; 4 from each house; 3 from the majority party; and one from the minority party.  Speaker Huebsch and Senate Majority Leader Robson have indicated that they have reserved the right to appoint “rotating” members to the panel as it deliberates.

On July 12th Senate President Fred Risser issued a news release appointing Senators Robson, Decker and Bob Jauch as the Senate Democrats on the Conference Committee.  Assembly Conference Committee members include Representatives Huebsch, Rhoades, Fitzgerald, and Kreuser.

* A comprehensive analysis of the fiscal impacts of the Assembly budget on UW-System is nearing completion and will be sent separately.

NOTE:  The Board of Regents will meet in early August to approve the annual operating budget and set tuition rates for the fall 2007 semester.  See news release.

 

Budget Tools/Resources

Growth Agenda for Wisconsin –   This site has been updated with new printable fact sheets, and a list of Growth Agenda endorsements.

Biennial Budget Bulletin – UW System Summary of the 2007-09 Governor’s Budget

LFB Summary of Governor’s Budget

LFB Informational Paper on the UW System

History of Biennial Budgets 1997-2007 shows the timeline of the passage of budgets since 1997. 

FEDERAL UPDATE

On July 11, the U.S. House of Representatives approved its version of the FY08 reconciliation bill, the College Cost Reduction Act of 2007 (H.R. 2669).  H.R. 2669 would cut more than $18 billion from lender subsidies over five years and use the savings to raise the maximum Pell Grant to $5,200 in 2011 and support other student aid and institutional assistance programs.   View press release. The White House issued a veto threat against the bill on July 10, arguing that the measure fails to target the neediest students and creates new mandatory federal programs that would have significant long-term costs for taxpayers. 

* * *

The House FY08 Labor-HHS-Education appropriations bill will be considered on the House floor for three days next week, beginning on Tuesday, July 17.  View a summary of the measure.   

For student aid, the bill would raise the Pell Grant maximum award to $4,700.  The current level is $4,310 and the Administration requested $4,600.  Funding for TRIO would increase to $868 million, or $40 million above both the FY08 request and FY07 funding, while funding for GEAR Up would rise to $323 million, or $20 million above both the FY08 request and FY07 funding.

Other programs would be held at their FY07 levels, including the Supplemental Educational Opportunity Grant, Federal Work Study, and Leveraging Educational Assistance Partnerships programs, as well as Perkins Loan cancellations.  You will recall that the President proposed eliminating SEOG and Perkins Loan funds.

The bill would provide the National Institutes of Health (NIH) with $29.65 billion, or $1.03 billion more than the Administration’s FY08 request and $750 million more than FY07 funding.   

The bill also includes “limitation” language that would prevent the Department of Education from issuing any final regulations on accreditation until the reauthorization of the Higher Education Act becomes law.

* * *

The House Appropriations Committee approved the FY08 Commerce-Justice-Science appropriations bill with no changes from subcommittee for the National Science Foundation (NSF) and a $3 million addition in education for NASA.  The added funds for NASA education were not subtracted from NASA research programs. 

Of particular note to UW System institutions, the measure would provide $6.5 billion for the National Science Foundation (NSF), an increase of $80 million over the President’s request and $593 million over FY07 funding.  Within that total, Research and Related Activities (R&RA) would receive $5.14 billion, an increase of $8 million over the request and $474 million above FY07 funding.  The increase above the request is allocated to the Experimental Program to Stimulate Competitive Research program, which, as the Administration requested, would be moved from the education directorate to R&RA.

NSF’s Education and Human Resources directorate would receive $822.6 million, an increase of $72 million above the request and $122 million above FY07 funding.  The Major Research Equipment and Facilities Construction account would receive the requested funding level of $244.7 million, an increase of nearly $11 million above FY07 funding.

NASA would receive $17.6 billion overall, or $290 million above the Administration’s FY08 request and $1.35 billion more than FY07 funding.  Within that total, science would receive about $5.7 billion, or about $184 million above the FY08 request; aeronautics would receive $704 million, or $150 million above the request; and education programs would receive $220 million, or $67 million above the request. 

* * *

In terms of other appropriations measures, the House Appropriations Committee has now approved ten of its twelve FY08 appropriations bills.  The last two – Agriculture and Defense – are scheduled for full committee consideration next week.  The full House has approved eight FY08 funding bills, with a final vote on the Energy and Water Development bill (and the Labor-HHS-Education bill as indicated above) expected next week. 

The Senate Appropriations Committee has also approved ten of twelve FY08 appropriations bills, with just Agriculture and Defense still to be marked up in subcommittee.  None of the Senate appropriations bills has reached the Senate floor.

President Bush has threatened to veto several appropriations measures.

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