Posts Tagged ‘Regulations’

Governor Walker Calls Another Special Session on Jobs

MacIver News Service | September 28, 2011

[Madison, Wisc...] Governor Scott Walker has called the Wisconsin State Legislature back to Madison to focus on job creation. On Wednesday morning Walker issued an executive order calling the “Back to Work Wisconsin” special session.

According to Walker’s office, the legislation in the special session includes items to improve access to capital and loans, worker training, the regulatory process and tort reform measures.

Gov. Walker

“Wisconsin has outperformed the nation this year in job creation, but we aren’t immune to what is happening nationally.  That’s why it’s important we do even more to help get Wisconsinites back to work,” said Governor Walker.  “In traveling the state, I’ve listened to the concerns of job creators and those still looking for work.  The one thing that I hear more than anything else is that employers and workers want a sense of certainty.  That is the main goal of this special session – to create as much certainty as we can for employers and workers at the state level so that they can create jobs.”

The special session call drew immediate reaction from a co-chair of the powerful Joint Committee on Finance.

“The top priority in the Assembly has been job creation since day one,” said State Representative Robin Vos (R-Rochester). “I welcome this second special session; it reaffirms our commitment to revive our state’s economy.  It shows our citizens, job creators and the country that Wisconsin means business.”

The list of legislation included in the special session includes six proposals authored by legislative Democrats, a move welcomed by at least one lawmaker whose proposal was included.

“I was pleased to see that my job creation bill, Assembly Bill 211, is included,” said State Representative Rep. Louis Molepske, Jr. (D-Stevens Point. “It is not just important but necessary for job creation, economic growth and the stability of families and communities in Wisconsin.”

Walker’s announcement received immediate praise from Wisconsin’s business community.

“Wisconsin businesses welcome the renewed focus on job creation at the Capitol, and the special session on jobs is a positive development,” said Wisconsin Manufacturers and Commerce President and CEO Kurt Bauer. “Governor Scott Walker is to be commended for reaching out to Democrats and Republicans to forge consensus on the top issue in our state – jobs. Now, the Legislature needs to act swiftly to pass common sense reforms that will improve our business climate so businesses will create jobs here.”

Despite the optimistic tone of job creators and even a Democratic lawmaker, the Democratic Party of Wisconsin leadership expressed disapproval of Walker’s efforts.

“Wisconsin is in a job mire that’s been exacerbated by the empty posturing that Scott Walker has shown again today,” said DPW Chair Mike Tate, “No rhetoric can hide the glaring fact that unemployment has risen on his watch.”

Despite some nay-saying, Senate Majority Leader Scott Fitzgerald (R-Juneau) voiced optimism for the upcoming session.

“For both sides of the aisle, the issue of jobs should be a goal, not a political weapon,” said Fitzgerald. “We should be focused on progress, not politics, so I’m glad this special session includes bills from Republicans and Democrats both.”

Proposals included in the “Back to Work Wisconsin” special session:

Access to Capital

Assembly Bill 20–Rep. Barca and Sen. Lassa, allowing refunds for the early stage seed and angel investment tax credits and making an appropriation.

Assembly Bill 90 and Senate Bill 40–Rep. Clark and Sen. Lassa, entrepreneurial tax credit access grants, providing an exemption from emergency rule procedures, granting rule-making authority, and making an appropriation.

Assembly Bill 179–Rep. Weininger and Sen. Cowles, authorizing the creation of a multijurisdictional tax incremental financing district.

Assembly Bill 211–Rep. Molepske, Rep. Williams and Sen. Lassa, an income and franchise tax credit for investments in a community development financial institution.

LRB 1875–Rep. Petryk, Bernier and Larson and Sen. Leibham, small business loan guarantees by the Wisconsin Housing and Economic Development Authority.

LRB 1877–Rep. Nerison and Sen. Schultz, changes to agricultural production and loan guarantee programs administered by the Wisconsin Housing and Economic Development Authority.

LRB 2861–Sen. Wanggaard and Rep. Marklein, creation of the Wisconsin Next Generation Reserve Board and Wisconsin next generation reserve fund, authorizing the State of Wisconsin Investment Board to provide certain advice, services, facilities, and loans to state agencies and others, and making appropriations.

Regulatory Streamlining

Wetland and Habitat Restoration–Sen. Kedzie and Rep. Mursau, Changes to wetland water quality certifications which will help streamline the permitting process while maintaining protections for our most valuable wetland resources

LRB 1446–Sen. Kedzie and Rep. Mursau, information required to be published on the Department of Natural Resources Internet Web site; identification of areas of significant scientific value for purposes of regulating the placement of deposits and structures on the beds of navigable waters and the removal of materials from the beds of navigable waters; requirements for the placement of certain piers and wharves; repair and maintenance of boat houses and fixed houseboats; permit exemptions for land grading activities and for persons who place piers and wharves in navigable waters; placement of fill or structures within a bulkhead line; procedures for issuing individual permits, contracts, and general permits and contracts for structures, deposits, and other activities in or near navigable waters; expedited procedures for plan approvals for dams and for water and sewerage systems; and granting rule−making authority.

LRB 2769–Rep. Strachota and Sen. Zipperer & Galloway, various duties of the Department of Revenue, including issuing declaratory judgments, conducting audits and assessments, asserting liability, allowing claims for refunds, awarding the costs of litigation, imposing penalties related to a taxpayer’s negligence, and requiring the exercise of rule−making authority.

LRB 2854 – Governor Walker, the film production services tax credit application fee.

Workforce Development

Assembly Bill 97–Rep. Ripp and Sen. Lassa, advanced manufacturing skills grants for technical colleges.

LRB 2221–Rep. Radcliffe, authorizing a school board to grant a vocational high school diploma.

Tax Relief

Assembly Bill 145 and Senate Bill 102–Sen. Leibham and Rep. Klenke, authorizing the Public Service Commission to approve temporary electric rates to promote economic development.

Assembly Bill 220–Rep. Murtha and Sen. Moulton, an income and franchise tax credit for workplace wellness programs, granting rule-making authority, and requiring the exercise of rule-making authority.

AB 277 and SB 203–Rep. Strachota and Sen. Wanggaard, adopting federal law as it relates to excluding from an employee’s income certain payments from an employer related to medical care.

Senate Bill 171—Sen. Taylor and Rep. Toles, exempting from income taxation certain employer-paid fringe benefits for mass transit expenses.

Transportation and Infrastructure

Assembly Bill 252 and Senate Bill 195–Rep. Petrowski and Sen. Lazich, seasonal weight limitations for certain vehicles transporting agricultural crops

Assembly Bill 253 and Senate Bill 189–Rep. Petrowski and Sen. Lazich, the maximum permissible length of vehicles carrying poles, pipe, girders, and similar materials on highways

Assembly Bill 254 and Senate Bill 190–Rep. Petrowski and Sen. Lazich, the maximum permissible length of single vehicles operated on a highway without an overweight permit

LRB 2900–Rep. Petrowski and Sen. Lazich, permits for overweight vehicle combinations transporting sealed containers or vehicles in international trade

LRB 2901–Rep. Petrowski and Sen. Lazich, annual or consecutive month permits for certain overweight vehicle combinations transporting agricultural commodities

Litigation Certainty

LRB 2670–Rep. Vos and Sen. Zipperer, factors for determining the reasonableness of attorney fees.

LRB 2890–Rep. Kooyenga and Sen. Zipperer, providing immunity from liability to drug and device manufacturers and sellers under certain circumstances

LRB 2939–Rep. Williams and Sen. Galloway, duty of care owed to trespassers

LRB 2966–Rep. Paul Farrow and LRB 2838 – Sen. Rich Zipperer, interest rates on judgments in certain civil actions

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Posted in News | September 28, 2011 | | Comments Off

Average Length of Time Unemployed Reaches New Heights

The average length of time people spend unemployed has increased drastically. The Heritage Foundation’s Rea Hederman, Jr. and James Sherk have identified five key policy decisions the Obama administration has made that either raise business costs or are expected to raise them in the near future:

  • The health care reform legislation raises the costs of employer-sponsored health insurance;
  • The new financial regulations make accessing capital difficult for smaller businesses;
  • The pending Environmental Protection Agency (EPA) regulations of carbon dioxide and coal-fired power plants will raise the cost of energy;
  • The promised tax increases on successful businesses discourage entrepreneurs from taking risks on new ventures; and
  • Obama’s activist National Labor Relations Board (NLRB) seeks to foist unions on employers and employees, despite the fact that unionized businesses create fewer jobs.

Sources: InsiderOnline.org and The Heritage Foundation

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Posted in mi fast facts | July 18, 2011 | | Comments Off

Governor Walker Signs Balanced Budget with No Tax Increases

Fifty Vetoes Include Provisions on Milwaukee Police Pay, Access Restrictions on Public Officials’ Financial Connections, Spaceport Earmark

MacIver News Service | June 26, 2011 | Updated 5:30 pm

[Green Bay, Wisc…] Stressing the desire to create a better jobs climate in Wisconsin, Governor Scott Walker today signed the 2011-13 budget at a Green Bay manufacturing plant.

The budget balances a $3.6 billion deficit without raising taxes and, Walker says, continues to support critical services, while promoting job growth and investing in education.

“Our balanced budget makes tough choices while providing a path to recovery and prosperity for our state and our people,” Governor Walker (R) said at Fox Valley Metal-Tech.  “Through honest budgeting, we are showing the way forward.”

Walker’s plan received high praise from Wisconsin’s business community.

“Governor Walker and legislative Republicans deserve tremendous credit for making tough decisions to balance the state budget without raising taxes,” said Kurt R. Bauer, President/CEO of Wisconsin Manufacturers & Commerce. “The budget provides greater certainty for business executives and that should encourage job growth.”

Still Photo Captured from YouTube Video of Budget Address

The budget eliminates the state’s $3.6 billion deficit. Only seven states in the nation faced larger per capita deficits than Wisconsin.

“Just as any parent would dread leaving their kids in debt, it is the dream of every father and mother to leave their children a little better off, and that’s what our budget will do,” said Governor Walker.

The governor issued 50 revisions to the plan legislators sent him, although the controversial restrictions on craft brewers survived his veto pen.

In part, Walker:

  • Vetoed a provision allowing Milwaukee police officers to be paid while appealing dismissal
  • Eliminated the provision restricting public access to officials’ economic interest statements
  • Cut the $10,000 in segregated fees earmarked to the Aerospace Authority in Sheboygan
  • Issued a partial veto regarding WiscNet that will prohibit UW System from competing with private sector businesses in telecom services and removes the ability of the Joint Committee on Finance to waive deadlines
  • Vetoed the requirement that all child care providers submit fingerprints to state and instead will seeks rule change to mandate for those providers participating in Wisconsin Shares

The governor’s full veto message can be found, here:

Walker highlighted the plan’s property tax freeze, which he says will save the average homeowner over $700 dollars over the next two years.

“It is my hope that due to this budget, thousands of Wisconsinites can breathe just a little bit easier and not worry about how they’re going to stay in the home they love,” said walker.

The budget also includes a manufacturing tax credit and capital gains tax credit aimed at creating jobs in Wisconsin.

While legislative Demcorats were critical of the spending cuts in the plan, Republicans were adamant that the budget continues support for BadgerCare, Medical Assistance, and SeniorCare. They say the budget allocates an additional $1.2 billion into the state’s Medicaid program and the note that nearly all new revenue the state receives over the next two years will go to the Department of Health Services.

“The budget signed into law today by Gov. Walker that shamelessly attacks Wisconsin’s shared values and middle class families is certainly a dark chapter in our state’s proud history,” said Assembly Minority Leader Peter Barca (D-Kenosha) in an online post Sunday. “We must continue to tell the stories of struggling middle-class, working Wisconsinites that will suffer additional hardships as a result of Gov. Walker’s poor budget choices and his assault on worker rights.”

Despite $800 million in cuts to aid to local school districts, Walker says the budget continues to prioritize education.  Public K-12 schools are the single largest expenditure in the budget, he notes, and the state will also begin a new statewide student information system which will allow for real-time state-wide data collection from schools on everything from course grades to attendance.  That will allow for better tracking of students and better accountability metrics for teachers, administrators, and schools, supporters argue.

The Governor’s budget also expands Choice and Charter schools, removing the enrollment caps on the state’s online public virtual charter schools and the Milwaukee Parental Choice Program, while beginning a choice program in Racine.

In his budget remarks, the Governor expressed optimism that the tumult of recent months in Madison could be a thing of the past.

“The recent debates in Madison found us spending too much time focused on our differences, rather than our similarities,” Walker said. “But today we turn the page.”

Barca, however, signaled that the acrimony is likely to continue.

“To take back our state legislature and to build our case for recalling Gov. Walker and Republican senators in the months ahead, we must continue to pull back the shroud of darkness and secrecy they have imposed on our state – we have to provide the sunlight that will ultimately disinfect Wisconsin of their radical and misguided agenda,” he wrote.

Yet, Walker said his experiences hearing from the families of Wisconsin gives him reason to be optimistic.

“We may disagree on the issue of the day, but we always find a way to unite and reach out when it means helping our neighbors in need; or inspiring our children to achieve success,” said Walker.

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Posted in News | June 26, 2011 | | 5 Comments

Ten Ways the Budget Could Be Better

The 2011-2013 Budget for the State of Wisconsin is the most fiscally responsible two-year Badger State spending plan in at least a generation. It pays the bills, is short on accounting gimmicks, restrains spending and includes measures that will improve government efficiency and invigorate the private marketplace in order to help individuals and businesses here create jobs.

It is a good budget.

That being said, it could be better.

The document forwarded by the legislature still contains onerous interference into the private market. Program cuts that could have been made were modified for political expediency. And, although it has a dramatic decrease in earmarks over budgets past, is not pork free.

In a perfect world, we would see vetoes on the following items:

1. Craft brewers are gaining market share because they are meeting a consumer demand. The Legislature has no business restricting the production and marketing of a good or service on the basis of the size or scope of the actors involved.

2. On SeniorCare, the governor got it right the first time. The legislature’s moves added unnecessary expense to the budget. There is no sound reason Wisconsin’s seniors enrolled in the program shouldn’t first exhaust federal remedies, such as Medicare Part D. We are the only state in the nation with a stand-alone drug entitlement program for the elderly.

3. At a time when we are empowering management in their dealings with government labor, tying the hands of the Milwaukee Police Department makes neither fiscal nor ideological sense. The proposal that mandates that suspended officers receive pay during termination appeals has no place in state law, or this budget.

4. The legislature meddled when it decided to create an individual income tax deferral for investments in Wisconsin businesses. Why do they insist on picking winners and losers? Does the Legislature really believe an investor will commit his/her retirement savings to a Wisconsin business because the government will hand out a modest break on the capital gains? Investment of capital flows to attractive projects and businesses regardless of geographic boundaries.

5. The recycling mandate and its 19 million dollar price tag should end up back on the scrap heap. If a government entity believes a service is necessary, it should pay for it.

6. State taxpayers should not subsidize high-speed broadband internet access. WiscNet should not be a government priority. Private service providers are fully capable of meeting this need without government competition.

7. We would have preferred to see zero dollars in bonding authority for the purchase of more land via the Stewardship Fund. The legislature significantly cut Walker’s request but they should have eliminated it all together. The state owns enough land.

8. And while it will not happen, you would not hear us howl if the veto pen was used to make the School Choice plan available to all families statewide. We need an education system whose sole focus is the education of the child, not artificial boundaries or the status quo.

9. This budget modifies state law to make it easier and less expensive for government to exercise eminent domain in a few specific cases. It’s a needless increase in the ability of the state to interfere with property rights. If changes to the state’s eminent domain law are truly warranted, they should be considered as a separate piece of legislation, not in the budget.

10. Finally, the pork and earmarks remain a thorn. As we said earlier, this is hardly a pork-laden document like the Doyle budgets of the last decade. Nonetheless the habit has proven hard to break. And while this list is not comprehensive, worthy or not, these projects deserve to be line-itemed out.

  • The elimination of the state per diem limit for sewerage district officials
  • The new position at Crex Meadows Wildlife Education Center
  • The $10,000 for the Sheboygan Aerospace port
  • $300,000 for the Bay Area Medical Center in Marinette
  • $25,000 for the Copper Falls State Park in Oconto

The State Budget is a solid plan. The best this state has seen in decades. It eliminates the structural deficit that has plagued this state for the last three administrations. But why settle for good?

Governor Walker will announce his vetoes on Sunday. Clearly he could make the plan even better.

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Posted in News, mi perspectives, mi reports | June 23, 2011 | | 5 Comments

Packers Forced to Play on Sloppy Field of Politics

The Green Bay Packers are playing in the Super Bowl next Sunday, but efforts by several Wisconsin Democratic legislators and an environmentalist group may have damaged the team’s bottom line. Just when the team thought it was nearing the end zone, a blind-side blitz set back team efforts to develop a 20-acre property at the corner of Hwy. 41 and Lombardi Avenue.

At issue is 1.6 acres of wetlands on the site that would have to be filled in out of the 9.34 acres of wetlands on the site. Under an agreement between auto dealer John Bergstrom, acting on behalf of the Green Bay Packers, and the Department of Natural Resources, the remaining wetlands would be “enhanced” by the development. Among the enhancements on the remaining 7.69 acres of wetland: management and removal of invasive plant species, signage posted to educate the public on the importance of wetlands, a walking path, and deed restrictions protecting the remaining wetlands. In addition, Bergstrom agreed to create four additional acres of wetlands on a nearby property, a net increase in wetlands.

DNR Water Division Administrator Bruce Baker, said to WBAY-TV that the agreement was a big win. “In addition to them changing the building and the configuration of it, they also agreed to restore the wetland that would be impacted because that wetland is currently has a number of invasive species in it.”

Baker said in another interview that if nothing were done on the site, invasive species would take over, destroying the wetlands.

In other words, if the deal with Bergstrom and the Packers went through, the state would be able to preserve 7.69 acres of wetlands and add four more. If the deal did not go through, the state would lose all 9.34 acres.

That was not good enough for the Wisconsin Wetlands Association who decided to challenge the DNR decision in court. Such a challenge could take months. Meanwhile, a development project that was to probably include a Bass Pro Shop creating 300 jobs would continue to be on hold.

Governor Scott Walker intervened and asked the legislature to pass a law to exempt the property from the court review provided the developers adhered to the terms laid out by the DNR, the terms that resulted in more wetland acreage and most of the current acreage protected from invasive plant species.

As the Natural Resources Committee in the Assembly was passing the bill on a 9-6 party-line vote, five Democrats decided to take matters into their own hands and sabotage the development. State Representatives Brett Hulsey, Louis Molepske, Chris Danou, and Nick Milroy wrote to the founder of Bass Pro Shop, John Morris, and the current CEO, Jim Hagale, asking for a meeting to discuss the development site. In the letter, the legislators said, “As you know, wetlands are vital for bass and other fish species to spawn, rear their young and grow their populations. Without wetlands, there are no fish.”

(Apparently the five Democrats believe that a species of bass has evolved on this particular site that allows the fish to crawl up onto the marshy land, breathe the open air, fight off the cranes, and build nests for their eggs.)

Faced with a potential public relations problem, Bass Pro Shop announced they were not interested in building a store at that site.

Here was a chance for the Democrats’ talk of a “Green Jobs” agenda to match their actions. The agreement with the DNR would actually have increased the total acreage of wetlands near Lambeau Field while protecting nearly eight acres from destruction by an invasive plant species. The project would have created at least 300 full-time permanent jobs for the area, plus construction jobs for the building. Instead of talking about hypothetical jobs that might result as side effect of some costly government mandate, here was an opportunity for a private sector solution to public environmental problem that would have created jobs.

The five Democrats chose instead to engage in hyperbole rather than reasoned debate, and may have cost the city real jobs.

Fortunately, Governor Walker and the state legislature are pressing forward. Walker said he would talk to the CEO of Bass Pro Shop about possibly continuing forward with the development. The Assembly is still scheduled to take up the bill on Wednesday.

Meanwhile, the Packers and John Bergstrom are still continuing with plans to develop the site. To which the rest of us should say, “Go, Pack, go!”

By James Wigderson
 Special Guest Perspective for the MacIver Institute

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Posted in mi perspectives | January 31, 2011 | | 5 Comments

Tort Reform Measure Signed Into Law

MacIver News Service | January 27, 2011

[Madison, Wisc...] A key component in Governor Scott Walker’s plan to improve Wisconsin’s business climate fell into place on Thursday, when he signed tort reform into law.

“Improving Wisconsin’s litigation climate is vital to reviving our economy,” said Walker. “This important part of our special session legislation sends a message directly to job creators that Wisconsin is open for business.”

The new law protects businesses from frivolous lawsuits, and exemplifies Walker’s overall strategy to create 250,000 jobs in Wisconsin by 2014. Rather than target specific businesses, tying incentives to solid job numbers, Walker hopes to create incentives to all businesses to grow and prosper in Wisconsin. He believes the key to doing that is creating a stable environment with less government intrusion.

Democrats disagree strongly with this approach. They believe Walker’s proposals will cost the state in lost tax revenue to give handouts to companies, while asking nothing in return. When it comes to tort reform, Democrats argued the state shouldn’t try to stop people from suing businesses.

Rep. Gary Hebl (D-Sun Prairie) said “this new law will put all Wisconsin consumers at risk by letting corporations that maim or kill our citizens off the hook.”

 “The largest sections of this new tort law have nothing to do with business development in Wisconsin as proponents claim, said Rep. Peter Barca (D-Kenosha). “Worse, it harms victims of abuse and wronged consumers by depriving them of their rightful access to justice.”

On the other hand, the business trade association Wisconsin Manufacturers and Commerce, was pleased with the new law.

“These reforms will add certainty, fairness and predictability to our legal system,” said James A. Buchen, WMC vice president of government relations. “Governor Walker and all of the legislative supporters of these new laws deserve tremendous thanks and praise because these reforms will improve our business climate.”

Another item on Walker’s agenda passed the legislature on Thursday. The Senate passed a bill that will give a $4 thousand tax credit for every job created by businesses grossing less than $5 million annually, and $2 thousand to businesses that make more han that.

Democrats claimed that would actually mean between $92 and $269 per job for employers, while continuing their argument that tax cuts are the same as increased state spending. They would rather put the emphasis on public sector employment.

““This latest bill adds far more to our deficit than it does to job creation efforts. A $92 taxdeduction isn’t going to get a business to create a job they otherwise would not have. But adding $67 million to our deficit means more cuts to education, job training, health care and critical community services like police and fire protection,” said Sen. Mark Miller (D-Monona)

Senator Scott Fitzgerald, Majority Leader, fired back.

“It seems like every time the Democrats say ‘you’re not doing anything about jobs,’ we pass another jobs bill. They were out of touch in the majority, and now they’re out of touch in the minority. I hope the Democrats realize soon that the problems we’re facing are too severe for this kind of partisanship,” Fitzgerald said.

The Assembly passed that bill last week, and it will now head off to Governor Walker to sign.

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Posted in News | January 27, 2011 | | Comments Off

PSC Hits Consumers with Grinchian Rate Hikes

‘Twas the week before Christmas and all through the state, it’s time for a visit from the PSC, to jack up your water rate.

The jolly bureaucrats at the Public Service Commission may be adverse to coal, but they are leaving something worse in your stocking this December,  a nice new, larger, water bill—especially if you get your water from Milwaukee.

The PSC approved a 20.8 percent overall increase in annual revenues for the Milwaukee Water Works. This is a 23.1 percent rate increase for retail customers and a 7.9 percent increase for wholesale customers.

To be contemporary, Parker Brothers is going to have to raise the price of the Water Works utility in their Monopoly game, that’s for sure.

Milwaukeeans in single-family homes will see their average water bill jump from $145 to $182 annually. Commercial consumers can expect a 23 percent increase and industrial customers can expect a 26.5 percent increase.

Most of Milwaukee’s suburban water customers were adversely affected by the rate increases as well. Mequon will see a 32.6 percent increase in their rates and New Berlin will see a 25 percent increase.

On the other hand, Butler won the lottery and will actually see a 21.3 percent decrease in their rates.

Milwaukee Water Works officials pointed to a slightly negative rate of return last year by the utility, -.69 percent, the result of increased costs of the chemicals used for water treatment and less demand for water.

The city of Milwaukee also took $3 million of “surplus earnings” last year from the Water Utility and put it in the city’s general fund for 2010. This was part of a plan to increase rates overall to generate revenue for the city of Milwaukee that was not property based.

The city of Milwaukee’s Budget Summary for 2010 said, “In 2009, the Water Works received Common Council approval to pursue a two part plan to increase Water Works revenue. This plan will stabilize the utility finances, preserve enough positive cash flow to transfer $3 million of surplus earnings to the city General Fund, while keeping water rates highly competitive.”

However, after the $3 million was taken for the 2010 budget and the intended rate increases were announced, Milwaukee’s suburban customers balked. The issue even became an issue in the 2010 race for governor when Milwaukee County Executive Scott Walker questioned whether the sudden proposed jump in rates would be detrimental to employers such as Cintas that were heavily affected by water rate increases.

Milwaukee originally requested in September 2009 a 28.5 percent in water revenue. An audit by the staff of the PSC reduced the request to 25.3 percent. PSC commissioners expressed concern about such a dramatic increase in the rates in a poor economy and settled on the 20.8 percent overall increase in annual revenues. The Milwaukee Water Works will collect $19 million more in revenue.

Milwaukee is not planning on any revenue from the water utility for the city’s general fund in 2011. However, if the city of Milwaukee’s budget takes another hit, such as a need to increase funding for the city’s pension liability, will the city be tempted to go to the well again for more “surplus earnings?”

The other question is whether this is just the beginning of spiraling rate increases. Milwaukee has drained the cash reserves of the Water Works. The Water Works has double the capacity it needs, and therefore has more to maintain. Will the new revenue stream be enough, and could the higher rates actually mean a decrease in water sales?

The PSC’s decision came in the same week that the Joint Finance Committee approved the PSC’s plan to dramatically increase the assessment on energy utilities to pay for more energy conservation projects. The assessment will jump from $94 million to $256 million in just four years.

The legislature rejected a plan earlier in the year to create a renewable energy mandate because the mandate would have increased energy rates for consumers. Dubbed the “Clean Energy Jobs Act,” the PSC endorsed-plan would have raised energy rates between 6.4 percent and 12.5 percent.

Unable to force an increase in the cost of energy through the legislature, the PSC pushed a new energy assessment through the backdoor as a regulatory measure.

These large increases in the cost of energy and water are coming at a bad time for the economy. A new poverty report indicates 18 percent of Milwaukee County residents are living in poverty. November employment figures show 4800 fewer private sector jobs in Wisconsin.

Unfortunately, because of the staggered six-year terms commissioners serve, legislators will have to contend with a liberal majority on the PSC for some time yet. The legislature will need to find out who’s naughty and nice as they watch the PSC puruse policies that run counter to Governor-elect Scott Walker’s pro-growth agenda.

Because, left unchecked, the naughty little elves at the PSC intend on soaking Wisconsinites.

Bah. Humbug.

By James Wigderson
 Special Guest Perspective for the MacIver Institute

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Posted in mi perspectives | December 21, 2010 | | Comments Off

Toys are hereby declared illegal, immoral, unlawful AND anyone found with a toy in his possession will be placed under arrest and thrown in the dungeon. No kidding!

In a scene right out of Santa Claus is Coming to Town, a modern day Burgermeister Meisterburger is coming to take the toys out of your kids’ fast food meals.

“It’s a difficult responsibility / That you accept from the number one lawmaker, me / Let it known across the land from sea to sea / That there’ll be no more toymakers for the (Burger) king.”

In Superior, WI, City Councilor Greg Mertzig wants to pry the toys out of your tots’ kids meals at fast food restaurants just in time for Christmas. Mertzig is proposing copying the ordinance recently passed in San Francisco that would ban the inclusion of toys in kids’ meals at fast food restaurants that have 600 calories, 10 percent fat and or have any trans fats.

The City Council will meet Tuesday to consider Mertzig’s proposal. The Council could decide to send the proposal to committee, have it drafted into an ordinance, or reject the idea completely. With any luck, a stop-action Chris Kringle will speak on behalf of the toy giveaways and leave Mertzig some coal.

In an interview Sunday, Mertzig claimed he is not anti-business and he is not anti-McDonalds. Mertzig sees the matter as a national security issue. Military recruiters are having a hard time recruiting physically fit young people, a symptom of what some have described as an “Obesity Epidemic” affecting our country’s youth.

In other words, if there’s a yo-yo nestled among the chicken nuggets, the terrorists will have won.

Mertzig says this proposed ordinance, “in no way is intended to tell parents what they can or can’t feed their children.” Instead he wants to stop parents from being forced by their children into buying unhealthy meals because children want the toys. He said parents often “have no choice” because of circumstances to buy kids meals, and the toys in the kids meals act as reward for bad dietary choices.

He said the proposed ordinance, “in no way dictates what a restaurant can serve.”

“If you sell unhealthy food and it is targeted to children you can’t reward them with food or games.”

Mertzig does not put the blame for fat kids on the parents. “I don’t want to say parents are irresponsible. The vast majority are responsible.”

“Marketing makes it nearly impossible to go to these places and not order unhealthy food.”

“Studies indicate that kids will prefer these places for reasons other than the food that they are eating.”

But Merzig fails to understand that while marketing targeted at children may make them want to visit McDonald’s, the choice is ultimately left to the parents. Even if this proposed ordinance goes nowhere, as is likely, parents still can say, “no,” and often do. “No” can apply to going to McDonald’s, or even to the food choices a child is allowed to make at McDonald’s.

If a parent finds that they are making too many trips through the drive-thru, the fast food restaurants have added healthy choices. Emphasis on “choices.” It’s part of being a parent. And if it is true that kids do not care about the food as much as they do the toy, as Merzig claims, then substituting the apple spears and low-fat milk will hardly cause the kids trauma.

Merzig was asked what’s wrong when responsible parents decide that they want to treat their children to a fun restaurant experience including a little unhealthy food and maybe a toy, he responded that it would be “okay for them” but that those would be unusual circumstances. But he said that he doesn’t think the question really applies. “Oftentimes parents don’t have the luxury of exercising that option.”

But it is the responsibility of parents to make the decisions of when and how they will treat their children to a special trip to get a kids meal and a toy. That responsibility is not a luxury, but a requirement of the job.

By needlessly interfering in the marketplace, Merzig would have the government assume the role of parent by taking on the decision-making role of what is best for the child. Parents should not be told by the government when and how they treat their children, any more than the government should regulate the content of a kid’s birthday cake.

Merzig, who has no children of his own, assumes he knows better than the parents who are slaves to children programmed by a 30 second commercial. That type of condescension towards his fellow human beings can only lead to more regulation of their lives because “it’s good for them.”

Merzig has failed to understand that what he thinks is good for the children of Superior is not necessarily what the parents think is good for the children. Outside of California, we still live in a society that allows parents to make those choices in the marketplace, and if the choice is a healthier diet, then the marketplace will respond.

Merzig’s proposal doesn’t address the issue, but what’s next? Banning birthday parties at McDonald’s because of the sugary orange drink? Will the McDonald’s Playlands be verboten by the Burgermeister? What about the school tours? And will Ronald McDonald go the way of Joe Camel?

Fortunately for the children of Superior, this is the Dairy State, not the village of the Burgermeister Meisterburger. It is unlikely that they will have to hope Ronald McDonald will slide down their chimneys to sneak the latest Dreamworks cartoon movie toy past Superior’s Burgermeister wannabe.

Superior Mayor Dave Ross said of the proposed restrictions on toys, “I don’t believe there is much support at all.”

“There is not much traction for this and it’s just another way for this individual to grandstand.”

By James Wigderson
Special Guest Perspective for the MacIver Institute

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Posted in mi perspectives | December 6, 2010 | | 1 Comment

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:

 

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Posted in News | April 29, 2010 | | Comments Off

Critics Warn PSC Global Warming Bill Analysis Flawed

Commission had said proposal would actually lower costs to consumers

MNS [Madison, Wisc…] The Public Service Commission’s analysis of a controversial environmental bill was based on a “serious methodological error, that distorts the actual cost impact of the bill” according to the Metropolitan Milwaukee Association of Commerce (MMAC).

MMAC sent a letter to Senator Jeff Plale, co-Chair of the Senate Select Committee on Clean Energy Jobs, in which they outline their concerns.

“As you can see, the results, using PSC’s own study numbers, indicate that the CEJA Sub proposal would increase electric rates between 6.4% and 12.5% above the status quo, depending on the assumption made for CO2 regulation costs,” MMAC warned. “This would be an improvement from the original proposed bill, in which rates would increase between 7.8% and 20.8%, but it would still be a significant increase above the status quo.” 

MMAC’s revelation comes on the heels of continuing criticism that the Public Service Commission has become advocates for the legislation, rather than impartial, nonpartisan regulators.

“We are extremely concerned that these increased rate costs would have a dampening effect on the economy as electricity would cost more for everyone.  Those concerns are heightened further in light of  the current challenging economic climate,” said Steve Baas, MMAC’s director of Government Affairs in the letter to Plale.

The legislation, dubbed the ‘Clean Energy Jobs Act’ by its supporters, is scheduled for a vote in the State Assembly later Tuesday.

Attempts to reach Senator Plale for comment this morning were unsuccessful.

See the letter, here.

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Posted in News | April 20, 2010 | | 3 Comments
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