February 23, 2012

State budget clears JFC

File Photo: Andrew Beckett Members of the Joint Finance Committee have put their finishing touches on the state budget.

The budget-writing committee took its final vote on the proposal at about 5:30 Friday morning, passing it on a 12-4 party line vote. Committee co-chair Mark Pocan (D-Madison) says he's pleased with the final product, which he says met their goals of protecting working families and education, despite the national economic crisis and a massive state budget deficit.

The package approved by lawmakers includes measures designed to plug a $6.6 billion budget hole.

Republicans on the committee voted against the plan. State Representative Robin Vos (R-Racine) says the bill will be costly for Wisconsinites by raising taxes and fees and increasing spending by 7-percent.

Provisions approved Thursday morning include an early release program for non-violent offenders, a 75-cent increase in the cigarette tax, and a tax on Big Oil.

Pocan says they're hoping the full Legislature will move swiftly on the plan, with action in Assembly expected during the second week of June. The Madison Democrat says the bill should be done before a June 30th deadline, marking the first time that will have happened since 1974. 

AUDIO: Andrew Beckett reports (MP3 1:12)

Taking on payday lenders

 A new effort to crack down on the payday loan industry in Wisconsin. State Representative Gordon Hintz would set a 36 percent cap on annual interest rates for payday loans in Wisconsin.

"Wisconsin's a gold mine (for payday lenders)," says Hintz, a Democrat from Oshkosh. "We're totally unregulated." Jackie Austin with Madison Area Urban Ministry says even at the 36 percent rate in the proposed legislation, she couldn't recommend a payday loan to her clients, although she stops short of saying there's no place for the payday loan industry. "We are not saying there should be no such loans ever, because there are unusual circumstances, and extreme circumstances, that may arise," says Austin.

But, George Klaetsch with the Wisconsin Coalition for Consumer Choice, says payday lenders have essentially been driven out of states which have adopted regulations similar to what's being proposed here. "What the consumers are saying within this debate is, do not eliminate my choice," says Klaetsch, adding that people deprived of access to payday loans may turn to bouncing checks or selling plasma to make ends meet.

Advocates of the bill say Wisconsin is the only state that doesn't regulate the payday loan industry, and that payday loan clients often become trapped in a cycle of debt, with interest rates far above what banks and credit unions charge.

AUDIO: Bob Hague reports (:55 MP3)

JFC debate becomes "theater of the absurd"

Debate on a major amendment to the state budget bill broke down into partisan attacks Thursday night, after nearly five hours of majority Democrats rejecting amendments offered by Republicans.

Tempers flared after State Representative Robin Vos (R-Racine) began reading listings for attorneys out of a phone book, claiming they were the only people who would benefit from the budget plan being considered.  When co-chairs on the committee challenged Vos, he launched in to reading from the actual amendment.

An attempt by JFC Co-chair Mark Pocan (D-Madison) to stop the demonstration resulted in a heated argument about trying to obstruct debate on the budget motion.

State Representative Jennifer Shilling (D-La Crosse) told Vos it was quickly becoming “theater of the absurd,” and the whole process risked becoming a joke if he were to continue.  She urged the Racine Republican to let debate continue.

Eventually, Vos relented after saying his intent was not to obstruct passage of the budget, but to give other Republicans on the committee time to review the amendment.

The measure dealt with a large portion of the budget, in areas such as school aids, a tax on cell phone service, medical assistance programs, and shared revenue to local governments.  It passed on a 12-4 party line vote.

AUDIO: Listen to the exchange (MP3 17:01)

Baldwin gathers info to revamp health care

Congresswoman Tammy Baldwin meets with Wisconsin experts to discuss health care (Photo: Jackie Johnson) Working to revamp the stressed health care system.

As the national health care debate moves forward, one goal of Congresswoman Tammy Baldwin is to have a public option in the plan. And, the Democrat from Madison says Wisconsin's success with SeniorCare proves public options work, and ideas on the state level are worth sharing with the rest of the nation.

"A public option can insure more people at lower costs and compete fairly with private insurance plans. And actually we've experienced in the state of Wisconsin that not only do we have a public option, but we have more private options in Medicare Part D than any other state in the union."

Baldwin cites the efficiencies, cost savings and improvements that come from SeniorCare.

Baldwin, who sits on two health committees, is gathering information as she helps to draft new health care reform legislation. She's quick to add, if you're already happy with your health insurance, you get to keep it.

"We're not changing the system for everyone. We're looking at addressing the needs of the uninsured, the underinsured, and those who are sort of at the limits of being able to afford the policies that they currently have."

Baldwin meets in Madison with Wisconsin experts, getting their opinions on "health care for all," which she says is "in our grasp." Those offering advice include advocates of public, private, urban, and rural health, as well as patient advocates, insurers, business leaders and labor representatives.

AUDIO: Jackie Johnson report (1:35 MP3)

Doyle talks furloughs in Wausau

What will furloughs mean for state workers? Governor Jim Doyle addressed the issue during a visit to Wausau on Thursday. "In some cases, a state office may just say that the best thing to do is to shut down for a couple of days, or a Friday here and a Friday there," Doyle said. "In some cases where you have fifteen people doing a job . . . they may need to rotate through the furloughs and have eleven people doing the job." Doyle's efforts to close the state's $6.5 million budget shortfall also include layoffs for some 400 state employees, a number he has said could increase to as many as 1000, if union workers don't agree to salary decreases. Doyle ordered state employees to be furloughed for eight days each of the next two years, and says things could be worse. "Look at other states, where the furloughs are much greater and the cuts are much deeper. Look at the private sector. It's not like somebody's getting rich in the economy right now, I think everybody is feeling this pain." As for the public, Doyle says they may need to wait in longer lines, or use the Internet to access state services.

AUDIO: Bob Hague reports (:55 MP3)