June 18, 2013

Senate Dems reach out to GOP ‘moderates’

With the Wisconsin state Assembly set to begin budget deliberations, Democrats in the Senate are seeking Republican support for changes they believe should be made in the state’s spending plan. State Senate Minority Leader Chris Larson (D-Milwaukee) on Monday extended an invitation to moderate Republicans in the Senate, asking them to oppose the budget as approved by the Joint Finance Committee. Larson thinks there’s an opening, with GOP members like Dale Schultz (R-Richland Center) and Rob Cowles (R-Green Bay).

“There’s been a lot of verbiage by these more moderate Republicans, when they’re talking to their press and talking to their constituents,” said Larson. “It’s a matter of if they are just saying that, or if they actually want to vote that way if we take the budget up on Thursday,” The Assembly is scheduled to begin budget debate today and could have its work completed in time for the Senate to take it up Thursday.

Schultz does have a laundry list of things he believes can be improved in the budget. “I haven’t been coy. I’ve listed a lot of things where I think considerable improvement can be made, and I know Senator Cowles has done the same,” he said. “I think that’s the way it should be.”

Senate Majority Leader Scott Fitzgerald, (R-Juneau) said there will be a technical amendment in the Assembly to make small changes before the bill moves to the Senate, with the goal of keeping the finance committee’s version intact. ”That’s our goal right now,”  Fitzgerald told WISC.  “I’d like to know everything will go just as planned, but sometimes it doesn’t.”

While Democrats and Schultz think the budget can be improved in the Senate, any changes made there would then have to go back to the Assembly – where they would likely be a tough sell among more conservative Republicans in that chamber.

Governor Scott Walker downplayed the prospect of any significant changes to the budget approved by the Joint Committee on Finance. “There may be some tweaks, there’s a couple of issues with things that Senator Cowles has,” Walker said. “I think those are things we could more than accommodate and work through, but I don’t think you’re going to see a substantive change.”

Evers calls for education budget changes

As the Legislature prepares to begin debating the two year state budget, State Superintendent of Public Instruction Tony Evers is asking members to consider changes to the proposal. Evers wants majority Republicans to remove provisions that would expand a private school voucher program statewide and to use a projected surplus to increase per pupil funding at public schools.

Evers says the state already has a difficult time paying for the schools it has, and the expansion of vouchers would essentially have Wisconsin trying to support two schools systems. He says “our kids are caught in the middle of an ideologically driven expansion of school vouchers, and it’s financially reckless and academically unproven.”

Evers is also criticizing a tax credit for parents with children in private school, which carries an estimated price tag of $30 million. It would allow parents of children in K-8 to claim tuition of up to $4,000, while parents of high school students could claim up to $10,000.

AUDIO: Tony Evers (:13)

While Assembly Republicans have shown few signs of being open to stopping the voucher expansion, the plan is seeing some push back from the Senate GOP. Evers and Democrats on Monday called on those members to come forward and side with them in efforts to remove the provision from the budget.

The budget approved by the Joint Finance Committee would increase per pupil funding at public schools by $150 a year. Evers says that figure falls short of what’s needed to make up for hundreds of millions of dollars in cuts made under the last state budget. He says the “small bump provided in the budget bill for public schools doesn’t make up for those cuts, nor does it come close to covering the rising costs.”

Evers and Democrats are asking the GOP to increase that figure to $275.

The state Assembly will open the budget debate Tuesday. GOP leaders have so far indicated they plan to approve the JFC version of the bill with minimal changes.

Budget cuts $685 million in taxes

Tax collection would drop by almost $700 million under the proposed state budget.

According to a report from the nonpartisan Legislative Fiscal Bureau, state taxes would be cut by a total of $685 million over the next two years. When combined with a proposed $7.7 million increase in fees, the state would see a net decrease in tax collections of $677 million.

Among other things, the budget includes stronger enforcement efforts to collect overdue taxes, which the fiscal bureau says would bring in an extra $92 million over the two-year budget period.

Democrats argue the proposed tax cut favors the rich, although Republican supporters say all income brackets would see reductions.

The state Assembly starts debate on the two-year spending package on Tuesday.

UW officials talk budget cuts

University of Wisconsin System Regents hear details about expected budget cuts. David Miller, head of the system’s fiscal affairs, said under Governor Walker’s proposal, campuses had unfunded liabilities of $47 million over two years; however, the legislature’s budget panel rejected Walker’s $181 million suggested increase and shaved off an additional $2.5 million. Lawmakers also ordered the UW to use its reserves to pay for $90 million in planned expenses.

Miller says, in total, the system is now facing $202.6 million in cuts and lapses. Some of that would’ve been offset by anticipated revenue from a proposed tuition hike, an increase that has since been frozen.

The cuts came after it was realized the system was sitting on hundreds of millions of dollars in reserves. The discovery led to a visceral response by some policy makers.

“They have their own issues,” said Jeffery Bartell one of several regents who urged better communication with those at the Capitol. “But it’s our job and our challenge and our responsibility to convince them that we are the solution.”

The full Legislature will take up the budget later this month.

 

WEDC reforms advance

A plan to reform Wisconsin’s closely scrutinized economic development agency is advancing at the Capitol, despite some concerns by Democrats that it doesn’t go far enough. The legislation is a response to a highly critical audit of the Wisconsin Economic Development Corporation released in May.

“Wisconsin . . . needs to stay committed to economic development, give the corporation a second chance, and make sure these issues are fixed moving forward,” said Senator Rob Cowles (R-Green Bay), co-chair of the legislature’s Joint Audit Committee. “Wisconsin’s economic incentives need to be measurable and accountable to ensure the effectiveness of our efforts and to make sure our money is spent wisely.”

The bill creates a new position, Lead Director, on the WEDC Board of Directors. “This change is modeled after many private sector boards, and this member will give the WEDC board the focus it needs, we believe,” Cowles explained during Wednesday’s Audit Committee hearing.

Audit committee member, Senator Kathleen Vinehout (D-Alma) had some misgivings over the reform package. “I would like to go on record as saying this is a first step, and the problem isn’t completely solved,” she said. “We have a board that was not aware that there were policies that were not in place. And we have an administration that really was not competent. And it was in their incompetence and the board’s lack of oversight that many of the findings in the audit came to pass.”

Democrats want the WEDC board to have the authority to hire and fire top officials within the public-private partnership – a role currently reserved for the governor. They also want to require board approval of all agency policies.

“I’m wondering why we’re going in the direction of creating a lead director, rather than actually appointing a chairman of the board that has that position,” said Representative Melissa Sargent (D-Madison). “I just worry that right how we’re very top down.”

Despite those misgivings, Democrats were on board when the committee voted unanimously on Thursday to approve the reform incorporated in identical Senate and Assembly companion bills (SB 205/AB 228).

Other provisions in the bills, as outlined in a press release from Cowles’ office:

- increase the frequency of financial audits of WEDC to an annual basis.

-require that WEDC adopt transparent and appropriate procurement procedures

-set term limits for members of the WEDC board

-create a governance committee on the WEDC board, led by a new lead director

-subject most WEDC employees to state ethics laws

-require that WEDC include additional information it its annual report to the Legislature about its economic development programs