Archive for April, 2010

Vukmir Calls for Special Session to Repeal Combined Reporting

MacIver News Service – [Madison, Wisc...] State Representative Leah Vukmir is hoping the Legislature can come back to work in Madison to repeal the combined reporting tax which was instituted in 2009.

“We must act now and we must be bold,” said Vukmir (R-Wauwatosa) “Of all the issues the legislature should be addressing in a special session this is the most important and one that will have an immediate impact on protecting  jobs.”

Under the combined reporting law, each member of an affiliated or “combined” group of corporations engaged in a unitary business reports on a combined report the unitary business income allocatable to the state Wisconsin. Each member of this combined group of corporations is treated as doing business in Wisconsin as long as any member of the combined group is doing business in the state.

Yesterday, motorcycle manufacturer Harley Davidson announced it was informing its employees of the need to cut the cost of manufacturing in Wisconsin by more than $50 million a year or it would have to consider moving operations to a different state.

The 2009 tax law change to combined reporting increased corporate taxes in Wisconsin by an estimated $1.2 billion and reportedly increased Harley Davidson’s Wisconsin tax burden by $22.5 million.

The bill which imposed Combined Reporting passed both houses of the Legislature and was signed into law by Governor Doyle four days after was first made public in mid-February 2009.

Republicans have bemoaned the tax since it was imposed and many have vowed to repeal it should they gain control of the Wisconsin Legislature next session.

Vukmir said Harley’s plight added urgency to the effort.

“We cannot afford to lose another company that made Milwaukee famous,” she said.

Opponents of the change warned an imposition of new taxes could have a profoundly negative impact on Wisconsin’s economy and employment situation.

In a February 2009 letter to Wisconsin Legislators, a coalition of Wisconsin employers wrote, “As you consider the revenue side of the equation, we encourage you to avoid adopting measures, such as combined reporting, that will harm investment and job growth
opportunities, the two critical pathways that will ultimately help Wisconsin move beyond its challenging fiscal situation. Combined
reporting is not the solution to improve Wisconsin’s overall business climate.”

Members of that coalition that formed in opposition to Combined Reporting included: Wisconsin Manufacturers and Commerce,   Metropolitan Milwaukee Association of Commerce, the Community Bankers of Wisconsin, Midwest Food Processors Association, Wisconsin Bankers Association, Wisconsin Economic Development Association, Wisconsin Engine Manufacturers and Distributors Alliance, Wisconsin Innkeepers Association, Wisconsin Insurance Alliance, Wisconsin Manufacturers & Commerce, Wisconsin Mortgage Bankers Association, Wisconsin Motor Carriers Association, Wisconsin Paper Council, Wisconsin Petroleum Council, Wisconsin Restaurant Association, Wisconsin Retail Council, and Wisconsin Utility Investors, Inc.

Under the organizing resolution for the current session, the legislature could reconvene next week for a limited floor session to possibly deal with some state contracts and technical corrections to previously passed legislation. In order for the legislature to consider repealing Combined Reporting, the governor would have to call them back for a Special Session.

Skyrocketing Labor Costs Force Job Cuts at MPS

MacIver News Service – [Milwaukee, Wisc...] Excessive fringe benefit costs, which have driven the average teacher compensation in Milwaukee Public Schools to more than $100,000 a year, could lead to the elimination of 682 positions within the district next year.

“We must control costs,” said MPS Superintendent William Andrekopoulos, “The benefit rate we project for next year is more than 74%. The district cannot sustain that. We are providing millions for benefits that we could be using to keep teaching staff and buy supplies.”

Andrekopoulos, who is retiring at the end of the school year, submitted his final budget to the MPS School Board Thursday.

MacIver News first broke the story of the $100,000 plus compensation level in early March. (See it here.)

According to the District, every job category will be cut. Of the 682 positions proposed to be cut, about 260 are teaching positions, amounting to 4.5% of the teaching staff. Other employee groups will take proportionally larger cuts. The number of general education assistant positions, for example, would decline by 87, or 32.7%; there would be 22.9 fewer assistant principal positions, a decline of 16.7%; the number of technical and administrative jobs would drop by 37.3, or 12.7%; and there would be 95.5 fewer paraprofessional positions, a drop of 10.1%.

“This is a painful chapter in MPS history,” said Andrekopoulos. “The decision to cut positions was made with great reluctance because of the pain it inflicts on families and the adverse effect on district services.”

The budget allots up to  $1 million for outplacement services and retraining for employees who lose their jobs.

The MPS Board will review the budget and deliberate during the month of May, with expected adoption of a spending plan sometime in June.

Complicating matters, the one-time federal stimulus dollars which filled the holes left by state aid cuts, have created a dangerous funding cliff for MPS and school districts across Wisconsin. (See our previous funding cliff story here.)

“The state, in dealing with its own financial problems, used federal stimulus funding to fill holes in the equalization aid budget,” said Andrekopoulos referring to $47 million in one time stimulus funding. “We don’t know what the state’s revenue picture will be in FY12 or whether current aid levels will be maintained.”

The Board’s Committee on Strategic Planning and Budget is scheduled to hold public hearings on the Superintendent’s proposed FY11 budget at 6:30 p.m. on Tuesday, May 4, 2010, and Thursday, May 6, 2010, and at 7:30 p.m. on Tuesday, May 11, 2010, and Thursday, May 13, 2010.

Thursday, May 20, 2010, is the tentative date for the Board’s statutory public hearing on the FY11 proposed budge and the Board is tentatively scheduled to adopt a final budget on Thursday, June 3, 2010. Meetings begin at 6:30 p.m., and are held in the auditorium of MPS Central Services, 5225 W. Vliet Street

Vice President Touts Free Market, Huge New Regulations

MacIver News Service - [Milwaukee, Wisc..] During his visit to Milwaukee this week, Vice President Joe Biden spoke at length about the strengths of a free market economy. He then went on to explain how sweeping, new, government regulation would ensure a free market economy.

Congresswoman Gwen Moore (D-Wis 4th) and Treasury Secretary Timothy Geithner didn’t seem to share his fondness for free markets. They want the power to regulate bank lending and to takeover and terminate failing firms, with Moore proudly touting the ability for Washington to “kill these huge failing banks.”

See more in this video report:

 

An Open Letter to Wisconsin Tea Partiers

April 27, 2010

Dear Tea Partier,

Thank you.

I think it is important for those of us who have been engaged in conservative public policy battles for decades to thank you and give credit where credit is due.

While your opponents try to belittle you…smear you…ridicule or ignore you, it is evident to anyone who is paying attention that your efforts are already being felt all across the state.

Despite the story line your detractors are attempting to forward through the mainstream media, it is clear that your interest in politics and policy is informed, deep and goes far beyond attending public rallies every few months.

Because of your continued engagement, legislators in Madison are receiving record levels of contacts from their constituents. Because of your continued engagement, legislative and Congressional town hall meetings across Wisconsin are packed to the brim.

Finally, let me make the following point as clearly as I can.

Because of your continued engagement, three awful pieces of legislation were derailed last week during the waning hours of the final regular floor period of the Wisconsin Legislature. 

As I wrote in the current installment of ‘That’

s Debatable,’ exchange on WisOpinion.com:

Scot, for months the left, you and the Alinsky Brigade over at OWN have been trumpeting the virtues of efforts to address global warming, the election deform bill and the creation of regional taxing authorities for transit. The governor and both houses of the Legislature are controlled by Democrats. These bills should have been a slam dunk for passage. But, thankfully, like those who attempted to foist New Coke on us a quarter century ago, your side failed. “Epic Fail,” as the kids say these days. Let me save your side the cost of conducting post-implosion focus groups. I have a two-word answer for why the Democrats caved this week: Tea Parties. You see, the growing number of people who keep showing up at events across Wisconsin are smarter, more determined and more active than you give them credit for being. They also called their legislators and encouraged others to call when the left fringe of the Democratic Party tried to choke off the remaining manufacturing jobs in the state, attempted to facilitate greater election fraud, and tried to push a pro-tax, pro-train agenda down their throats. So, thank you, tea partiers. Keep it up. It helps Wisconsin on her road to recovery and it drives Scot and his buddies crazy! Cheers to sweet TEA.

There is no doubt that the defenders of job providers like WMC were diligent in their efforts and helped focus the public debate in opposition to the global warming bill. Similarly, local election officials and established anti-tax groups helped derail the election fraud and RTA bills. But your engagement provided the extra effort that was required to win those battles. You have become the ultimate variable in the political equation in Wisconsin.

The pundits who wondered if the Tea Party movement would amount to anything more than occasional pep rallies do not have to wait until November to find out. They got their answer last week, right here in Wisconsin.

I’ve said it before and will say it again and again: Despite the left’s attempt to paint you as a bunch of toothless, Fox News-brainwashed, GED-correspondence school dropouts who dance to the tune of your Big-Oil and GOP puppet masters, I’ve found you to be informed, skeptical and frustrated at the ever-expanding cost and reach of government. You are not going away, and you are growing in numbers everyday.

I know you don’t do this for adulation or publicity. But again, thanks, and keep up the fantastic work.

Lord knows, there is a lot more to do!

Sincerely,

Brian

By Brian Fraley
A MacIver Institute Perspective


The Good, the Bad and the Ugly of ’09-’10 at the Capitol

The MacIver Institute’s Brett Healy aptly described the end of the legislative session as the “Silly Season.”

Silly Season came to a crashing halt on Thursday as the State Senate adjourned without taking up many of the major items of the Democratic agenda.

With the close of the legislature also came the effective end of Governor Jim Doyle’s power in office. Doyle ruled out calling a special session of the legislature, saying that he only believed in doing it if the bills had a chance of passing. It’s a tacit admission the global warming bill, the online voter registration bill, and the proposed regional transit authorities are dead for this year.

The legislature will only meet briefly in May to consider vetoes, technical corrections and state employee contracts.

When Clint Eastwood would ride into a town in the spaghetti westerns, everyone knew there would be trouble. Now that “Silly Season” is over, the legislature rode out of town leaving a trail of bodies in its wake.  Let’s take a moment to assess the Good, the Bad, and the Ugly.

The Good:

This was in desperate short supply during the legislative session just ended. Good was more likely found in what did not pass than what passed.

The Democrats did not pass the global warming bill, also known as the Clean Energy Jobs Act, which would have imposed new mandates for renewable energy. This bill, the result of the governor’s Global Warming Task Force, would have resulted in thousands of jobs lost and higher utility bills for everyone over a ten-year period.

The legislature also avoided the passage of changes to our election laws to allow the Government Accountability Board (GAB) to use the state drivers license list to put people on the voter registration list without their knowledge, with the registrations available for confirmation online. The same bill would have allowed the GAB to share that information with ACORN-like organizations.

Despite majorities in both houses, the Democrats were also unable to find the votes to create new taxing authorities unaccountable to the voters to fund trains and buses. State Representative Leah Vukmir’s amendment to require a referendum was essential in killing the bill.

There was one positive moment when the legislature clarified their smoking ban to allow taverns to have smoking-allowed patios as long as two walls are open to the outside. It’s still confusing, raising the question why they didn’t just repeal the smoking ban.

The Bad:

The legislature conducts more nocturnal activity than former President Bill Clinton. The public deserves a legislature that conducts business in broad daylight.

Speaking of loving the nightlife, Assembly Speaker Mike Sheridan’s relationship with a lobbyist for the payday loan industry gave the public new lessons on how a bill does not become a law. Sheridan’s relationship and conflict of interest attracted more coverage than the particulars of the bill itself.

On education, the legislature did not enact any meaningful reforms this term. However, they were able to spend a great deal of time on reforming the mascot names for local schools instead of trusting local school boards to make those decisions. Perhaps someone should ask the Democrats if they plan on being sensitive to Native Americans by canceling their dinners named after President Andrew Jackson.

As the clock was running out, the Democrats essentially punted and put more power in the hands of the State Superintendent for Public Instruction, a position traditionally under the thumb of the teachers union. This was the substitute plan for giving control of the Milwaukee Public Schools to the Milwaukee Mayor’s office. Neither plan offered any program for reform and therefore did not help the state’s Race to the Top application.

The legislature also did not do anything to lift the cap on enrollment for the state’s online charter schools, even though the evidence is in that these schools do work. But we did learn the state lied on the application for Race to the Top funding saying there were no limits on enrollment in the state’s charter schools. Perhaps someday the legislature’s actions will match their words.

BadgerCare Plus Basic was created to handle the waiting list from the BadgerCare Core Plan. This big government solution will likely fall short of its goals and would not be as effective as reducing the state mandate burden on insurance providers selling policies to low-income people.

The Ugly:

Governor Doyle said to WisPolitics the legislature should be proud of passing the state budget on time and not having to pass a budget adjustment this spring. What Doyle did not mention is that the state budget had a new provision that allowed the legislature to avoid putting the books in order even though revenue collected is falling far short of what the budget required.  For a more complete analysis of just how bad that budget and other fiscal mismanagement from 2009 was, see MacIver’s $13 Billion of Bad.

The Pew Center on the States listed Wisconsin as one of nine states facing a fiscal crisis most similar to California. Despite passing a state budget that included $3 billion in tax increases, the next budget starts out $2 billion in the red before new spending is added. This legislature spent federal stimulus money, borrowed, and raided segregated funds to fill this budget cycle’s gaps. By not enacting real reforms to Wisconsin’s big spending habits, the legislature kicked many of its fiscal problems to local units of government who raised local property taxes to cover the cuts in state funding and higher state fees.

This was also the session that saw the Public Service Commission risk its reputation for independence by supporting Governor Jim Doyle’s global warming bill. Its analysis of the bill was deeply flawed, as were the conclusions. Democrats and Republicans came to their own judgments about the bill rather than trust the word of the Public Service Commission.

Perhaps the legislature’s best example of dysfunction this session was its failure to deal with State Representative Jeff Wood.  Wood was arrested three times in one year for Operating While Intoxicated, five times overall. The first of the three arrests also included possession of marijuana. However, because of the slim majority for the Democrats in the Assembly, the Democrats effectively shielded Wood from expulsion. Wood himself cast the deciding vote to table the expulsion resolution.

Unfortunately when the legislature left Madison, they did not leave a treasure of gold hidden in a grave anywhere to pay for the mess. Where are Blondie, Angel Eyes and Tuco when we need them?

By James Wigderson
Special Guest Perspective for the MacIver Institute.

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Legislature Adjourns

MNS – [Madison, Wisc...] The Wisconsin Legislature adjourned its regular session without passing controversial legislation to regulate energy production, revamp the  election process or establish non-elected taxing authorities for transit across the state. The Senate and the Assembly most likely will only reconvene next month to take up state contracts and technical corrections to previously-passed legislation.

The State Senate met and adjourned early Thursday afternoon before the State Assembly even began to tackle the bulk of their calendar. This move effectively killed the global warming bill as well as efforts to change the election law and establish several regional transit authorities.

“The Legislature did what was best for families and employers by not voting on the global warming bill,” said James Buchen, Vice President of Wisconsin Manufacturers and Commerce. “The bill would have increased utility bills, energy taxes, and hampered job creation without making an impact on global warming.”

The Senate’s action left Assembly Democrats visibly, and quite publicly, upset with their Senate colleagues.

Democrat Helen Kelda Roys (D-Madison) displayed her anger in a post on her Twitter feed. “Wow…I guess Senators get too tired to work more than a 2-hour workday.Tough life for them,” she wrote to her followers on the social media site.

After taking up some initial pro-forma matters in the morning The Assembly remained off the floor until around 5 pm Thursday, took a nearly four hour break beginning at 10:30 pm, and did not conclude their work until after 4 am Friday.

Assembly Republican Leader Jeff Fitzgerald (R-Horicon) called the entire session a failure and said the Democrats embarrassed themselves with how they ran the legislature and what they accomplished the last two years.

“With unemployment still ravaging the Wisconsin economy, Assembly Democrats ended the legislative session without meaningful action on jobs” said Fitzgerald. “The session started with $5 billion in tax increases and continued with an agenda popular only in Madison.”

The Assembly was able to pass a few measures onto the Governor for his signature, including a bill to give sweeping new powers to the Wisconsin Superintendent of Public Instruction to intervene in some failing schools, a proposal to regulate payday lenders and a bill which legalizes farm-to-consumer sales of untreated, raw milk.

Black and other supporters of the global warming bill said they hope to convince Governor Doyle to call the legislators back for a Special Session to deal, specifically, with that bill. However, Capitol observers believe such an option appeared unlikely given the public outcry in opposition to the legislation.

The Bad Ideas Are Hard to Kill

When playing football against Zombies, don’t reach for the celebratory Gatorade bucket until all the time has run off the clock.

Blame it on a combination of the lack of sleep as a result of monitoring late-night legislative sessions and a healthy cynicism from two decades of working around the Capitol in Madison, but that sentence made complete sense to me as I wrote it this morning.

What’s of primary concern to our readers/viewers/followers/friends/fans today?

  1. The Global Warming Bill
  2. The Elections Fraud Facilitation Act
  3. The Madison Educational Bureaucracy Empowerment Plan
  4. The establishment of non-elected Regional Taxing Authorities for transit

As of this writing, all four of these proposals are on life support. But they are not dead yet.

As my colleague Brett Healy pointed out in his instant classic on the Silly Season, anything can happen in the waning days (and especially hours) of a legislative session.  Most of the action takes place behind the scenes and it will be weeks, if ever, before the citizenry of Wisconsin know exactly what deals were cut and why they were made.

The horse trading, deal making, ego stroking and amendment drafting could be fierce today.

Supporters of each of those aforementioned bills will be pursuing every plausible and many improbable avenues to get their ideas passed by both houses today. While it is possible that all four proposals could stall and die today, it’s also possible that all four could be in the mix with other pieces of legislation (like the wage lien bill) and that Democratic leaders could strike a massive deal behind the scenes at any point in the next few hours.

So, it’s a scary thought but entirely possible that all four proposals could pass in both houses, in rapid succession, over the course of less than an hour. The majority party has extraordinary parliamentary powers to limit debate, and we’ve seen these powers abused on more than one occasion.

At the same time, the Senate could whip through just their publicized calendar and adjourn by 1pm, before the Assembly ever gets to the floor today. The only certainty in Silly Season is uncertainty.

Today, the last day of the regular legislative session, has dawned. We’ll continue to track the zombies here and on our Twitter feed and Facebook page. If something happens today, we’

ll let you know.

The center-right coalition, the fiscal sanity caucus and others who are hoping to limit the damage coming out of Madison must forget about the victory celebration until the final gun sounds. The defensive coordinator must remain vigilant and shouldn’t get the Gatorade shower when the undead are on the field and there is time left on the clock.

Oh, and did I mention that even then, it may not be over? There is a limited floor period scheduled for May wherein bills that have passed one house may still be considered, with a little maneuvering*.

Taxpayers need a break, and I clearly need some sleep. Hopefully we can catch a little of both today.

Until it’s over, though, we’ll stay awake. You stay tuned.

By Brian Fraley
A MacIver Institute Perspective

 

*Clarification about May:

Under Senate Joint Resolution 1, the session schedule for the 2009-10 biennial session period, there are two floor periods in May. The first floor period, from May 4 to May 6, is a limited-business floor period.  Under SJR 1 and the joint rules, only the following items are eligible for action: revisor’s correction or revisor’

 s revision bills, reconciliation bills to correct mutually inconsistent acts of the session, proposals recalled because they cannot be properly enrolled, state employee contracts, and legislative citations. 

The second floor period, from May 25 to May 26, is a veto review floor period.  Under SJR 1 and the joint rules, only the following items are eligible for action: gubernatorial vetoes or partial vetoes, pending nominations requiring Senate confirmation, revisor’s correction or revisor’

s revision bills, reconciliation bills to correct mutually inconsistent acts of the session, proposals recalled because they cannot be properly enrolled, state employee contracts, and resolutions and joint resolutions introduced by either committee on organization.

But, and this is a big caveat, the Legislature always has the authority to extend a floor period, call itself into extraordinary session, or otherwise amend SJR 1 such as expanding the jurisdiction of a particular floor period (e.g., creating a list of bills which may be considered or allowing bills which have passed one house to be considered).  Moreover, the Governor could always call a special session. If we’ve learned anything it’s that in Madison, anyting (bad) is possible.

Jeff Wood Survives Close Vote

MNS – [Madison, Wisc...] The State Assembly voted to censure Representative Jeff Wood Wednesday morning after amending a resolution that would have expelled him.  The Chippewa lawmaker begins a 45 day jail sentence on Monday and faces additional legal proceedings stemming from two other incidents of driving while impaired.

Republicans say the vote on Wednesday was a case of lawmakers looking after their own instead of the state. Further, they contend that Democrats saved Wood because they still need his vote on Thursday for expected close roll calls on bills dealing with education reform, global warming and vote fraud.

See more in this video report:

The Latest on the Global Warming Bill

MNS- [Madison, Wisc...] As the legislative session winds down, Assembly and Senate leaders as well as the Democratic sponsors of the global warming bill (which they dub the ‘clean energy jobs act’) are certain of two things: 1) the fate of the bill is uncertain, and 2) they are not to blame for that uncertainty.

See this video report for more details:

 


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