At 5:30 a.m. on Friday, May 29, the Joint Finance Committee (JFC) wrapped up its review of Governor Doyle's biennial state budget proposal. JFC approved changes to the 1,700-page document on a 12-4 partisan vote.
The state budget is the single most important piece of legislation that is considered by the State Legislature. The following is an update on issues that people have contacted my office about.
Overall, the budget approved by JFC increases state spending roughly 7 percent, according to the nonpartisan Legislative Fiscal Bureau. Additionally, $285 million in debt payments will be delayed to help the immediate budget's bottom line, but will result in increases in long-term interest payments. The bill also includes about $3 billion in tax and fee increases, including:
• Cell phone fee increase: Cell phone users will see a 75-cent-per-month fee increase, however the money will not all go to the 911 and Universal Service Fund, but is being transferred to pay for other programs and balance the budget. In addition, the old 911 fund had a surplus of $20 million, which was supposed to be refunded to consumers this year, but is now being kept by the state.
• Cigarette tax increase: The state's tax on cigarettes will be increased by 75 cents.
• Creation of oil tax: The controversial oil tax was left in the budget, which likely will result in an increase in the price of gas by 6 cents per gallon.
• Tax credits delayed: JFC took action to delay state tax breaks for health insurance premiums and child care expenses.
Although the budget increases state spending and raises taxes and fees, it also includes cuts to education:
• K-12 education funding cuts: The budget bill will cut state money for schools by about $300 million; lower the current per pupil spending limits from $275 to $200 annually; reduce SAGE funding, which promotes smaller class sizes; repeals the Qualified Economic Offer (QEO) starting in 2010, which limits teachers' salary and benefit increases to 3.8 percent yearly; and does not allow an arbitrator to significantly consider local economic conditions and the revenue caps when deciding between the teacher's union offer and school district unless both sides agree. Repealing the QEO and changes to the mediation-arbitration law likely will lead to significant property tax increases over the next five years, or lead to cuts in spending on classroom programs.
• UW tuition increase: Tuition for the UW System will go up at least 5 percent in 2009, without an increase in financial aid funding from the state.
• In-state tuition break for illegal immigrant students: The bill will give illegal immigrant students lower in-state tuition at UW schools and technical colleges.
Finally, several non-fiscal policy items remain in the budget document, including:
• Joint-several liability changes: Under this provision, if defendants are found 20 percent responsible (down from current law of 51 percent), they will be liable for all costs of an accident in negligence lawsuits, which will make Wisconsin have the lowest threshold in the Midwest and raise insurance costs on small businesses.
• Auto insurance mandate: Minimum coverage amounts would be increased for auto insurance, which will likely increase auto insurance rates by up to 33 percent.
• Illegal immigrant drivers licenses: Illegal Immigrants who have lived in Wisconsin for at least six months and who do not have a Social Security number, will be given ID cards that will allow them to legally drive a vehicle.
• Prevailing Wage: The threshold for prevailing wage projects has been lowered to $25,000 for both single and multiple trade projects and for the first time in state history extends to publicly funded private contracts. I've heard from a number of small businesses and local governments that this provision will increase their business cost and hurt economic development in our area.
Now that JFC has recommended passage of the budget bill, it will come before a vote of the full State Assembly, where I will have an opportunity to vote on changes. I am interested in your thoughts and need to hear from you. If you support or oppose any of the issues listed above or other items in the state budget, please let me know.
- Rep. Brett Davis, R-Oregon, serves the 80th Assembly District, which includes all of Green County and parts of Lafayette, Rock and Dane counties.
The state budget is the single most important piece of legislation that is considered by the State Legislature. The following is an update on issues that people have contacted my office about.
Overall, the budget approved by JFC increases state spending roughly 7 percent, according to the nonpartisan Legislative Fiscal Bureau. Additionally, $285 million in debt payments will be delayed to help the immediate budget's bottom line, but will result in increases in long-term interest payments. The bill also includes about $3 billion in tax and fee increases, including:
• Cell phone fee increase: Cell phone users will see a 75-cent-per-month fee increase, however the money will not all go to the 911 and Universal Service Fund, but is being transferred to pay for other programs and balance the budget. In addition, the old 911 fund had a surplus of $20 million, which was supposed to be refunded to consumers this year, but is now being kept by the state.
• Cigarette tax increase: The state's tax on cigarettes will be increased by 75 cents.
• Creation of oil tax: The controversial oil tax was left in the budget, which likely will result in an increase in the price of gas by 6 cents per gallon.
• Tax credits delayed: JFC took action to delay state tax breaks for health insurance premiums and child care expenses.
Although the budget increases state spending and raises taxes and fees, it also includes cuts to education:
• K-12 education funding cuts: The budget bill will cut state money for schools by about $300 million; lower the current per pupil spending limits from $275 to $200 annually; reduce SAGE funding, which promotes smaller class sizes; repeals the Qualified Economic Offer (QEO) starting in 2010, which limits teachers' salary and benefit increases to 3.8 percent yearly; and does not allow an arbitrator to significantly consider local economic conditions and the revenue caps when deciding between the teacher's union offer and school district unless both sides agree. Repealing the QEO and changes to the mediation-arbitration law likely will lead to significant property tax increases over the next five years, or lead to cuts in spending on classroom programs.
• UW tuition increase: Tuition for the UW System will go up at least 5 percent in 2009, without an increase in financial aid funding from the state.
• In-state tuition break for illegal immigrant students: The bill will give illegal immigrant students lower in-state tuition at UW schools and technical colleges.
Finally, several non-fiscal policy items remain in the budget document, including:
• Joint-several liability changes: Under this provision, if defendants are found 20 percent responsible (down from current law of 51 percent), they will be liable for all costs of an accident in negligence lawsuits, which will make Wisconsin have the lowest threshold in the Midwest and raise insurance costs on small businesses.
• Auto insurance mandate: Minimum coverage amounts would be increased for auto insurance, which will likely increase auto insurance rates by up to 33 percent.
• Illegal immigrant drivers licenses: Illegal Immigrants who have lived in Wisconsin for at least six months and who do not have a Social Security number, will be given ID cards that will allow them to legally drive a vehicle.
• Prevailing Wage: The threshold for prevailing wage projects has been lowered to $25,000 for both single and multiple trade projects and for the first time in state history extends to publicly funded private contracts. I've heard from a number of small businesses and local governments that this provision will increase their business cost and hurt economic development in our area.
Now that JFC has recommended passage of the budget bill, it will come before a vote of the full State Assembly, where I will have an opportunity to vote on changes. I am interested in your thoughts and need to hear from you. If you support or oppose any of the issues listed above or other items in the state budget, please let me know.
- Rep. Brett Davis, R-Oregon, serves the 80th Assembly District, which includes all of Green County and parts of Lafayette, Rock and Dane counties.
