Health Care Coverage and Energy Independence are Major Issues in Doyle Budget

By Joan Sanstadt, News Editor
Thursday, February 15, 2007 11:09 AM CST

Nearly universal health care coverage, a new Office of Energy Independence, a tax credit for dairy plants that expand and a 50 percent increase in state support for school breakfast programs are all parts of Gov.

Jim Doyle's 2007-09 Biennial Budget.

Agri-View spoke with Rod Nilsestuen, secretary of the Department of Agriculture, Trade and Consumer Protection (DATCP), specifically on the budget items that will most impact agriculture and rural residents.

Nilsestuen verified there would be no proposed changes in use value assessment of farmland in the governor's budget.

"Overall the budget is very good for agriculture. It addresses many of the goals rural Wisconsin people have expressed and this includes health care and bio-energy," Nilsestuen said.

Calling Doyle's proposed spending plan for the next two years "bold and far-reaching," Nilsestuen said the governor was committed to "doing everything the state can do to bring health care access and affordability to more people."

Recognizing the importance of health care coverage to Wisconsin residents, Nilsestuen estimates that "98 percent of state residents can have some health care coverage. The governor's budget puts a great deal of emphasis on access, which is a big problem in rural areas. There will also be a number of steps taken to reduce overall health insurance costs," he added.

"Everybody is caught up in trying to do something about health insurance, but the state can't by itself solve everyone's health care problems. Other states such as California and Massachusetts are also trying to address this same issue," he added.

Energy

Building on what agriculture, rural people, ethanol leaders and farm organizations have recommended Doyle is advancing a major energy independence effort through the budget process.

"Ethanol and biofuels represent the biggest opportunity in our lifetime to build new industries and strengthen ownership," Nilsestuen said.

Just returned from a meeting with other ag secretaries in Washington D.C., Nilsestuen said "it is clear we are on the right track in trying to use Wisconsin's greatest strengths - agriculture, forest products and the UW - to build new bio industries. These are areas where we can compete most effectively."

The Energy Independence Office Doyle is planning to establish will coordinate energy issues across all levels of state government. The governor wants that office to be able to dispense $15 million in renewable fuel and energy grants each year of the next biennium - $30 million in all.

Nilsestuen pointed to the "interest and attention" garnered from the one million in similar grants provided last year. "We were able to do 12 grants with that one million and we can reach a lot farther with $15 million each year," he said.

Another million in tax credits will be available to help install renewable fuel pumps and equipment. "If we're going to produce it, producers have to be able to get it," Nilsestuen said.

Investment tax credits

Building on the successful dairy and livestock investment tax credits, Doyle wants to extend the same opportunity to the state's dairy plants. During the past four years producers have taken greater than expected advantage of income tax credits for investments made in their dairy and livestock operations.

"This has done a tremendous amount to make Wisconsin as competitive as possible in its dairy and livestock industries. Wisconsin dairy plants have really been squeezed because of federal dairy policy," Nilsestuen said. "With the overall goal of Growing Wisconsin's dairy industry that means growing the milk supply particularly at the high end of the market for products such as specialty cheeses. The governor is proposing a new income tax credit of 10 percent, up to $200,000, for dairy plants that will expand and reinvesting the money (from the tax credits) into renovation of the plant's facilities. This will not only help expand the state's dairy industry, it will help make Wisconsin competitive with other states."

Breakfast program

There's been a long held alliance between agriculture and nutrition programs. Sad to note, Wisconsin ranks dead last among the states when it comes to participation in school breakfast programs.

"When West Virginia has twice the rate of participation that our state does - and we're a dairy and ag state - then it's time to do something about it, Nilsestuen emphasized.

"That's why the governor's budget includes a 50 percent increase in support for school breakfast programs," the DATCP secretary explained.

Other items

Other ag-related items in Doyle's budget include:

Working Lands Initiative and Farmland Preservation Program - Nilsestuen said, "we still have to work on the Working Lands Initiative a bit and there is no change in the budget on this. We will be continuing discussions and we will make progress." There are no changes in the Farmland Preservation Program in the budget.

Budget process

Wisconsin's 2007-09 Biennial Budget covers the two-year period from July 1, 2007, through June 30, 2009.

The budget Doyle presented on Feb. 13 was many months (actually almost a year) in the making. By last fall, state agencies had to submit their budget requests to the Department of Administration (DOA).

These funding requests had to include not only estimates of the cost of existing services over the next two years, but also had to include any proposed changes the agencies would like to make in any of their programs.

The DOA then compiles the data it receives from the state agencies and submits it to the governor for his review.

The Biennial Budget bill, which goes to the Legislature after the governor delivers his Budget Address is the longest and most complex bill with which the Legislative Branch of government will have to deal.

The budget bill goes first to the Joint Committee on Finance, which will hold hearings on the different departmental requests and the governor's program initiatives. When the hearings are completed the budget bill will go to the house of the Legislature that introduced it. It will follow the traditional legislative procedure through both houses of the legislature and will ultimately be submitted to the governor for his approval.

The governor can sign the budget bill, veto it in its entirety (very unlikely), or use his partial veto power to make changes. (One of the bills the Legislature is expected to take up this session is one that would curb the governor's veto power.)

Budget negotiations are usually needed to ensure the document that goes back to the governor is one he can sign.

Theoretically the budget should be signed into law before July 1, 2007. Many times budget signings have been delayed for several months until agreement between the governor and lawmakers can be achieved.

 

Comments »

---

Comment on this story

Comments will be approved within 48 hours

Name:

Email: (optional)

Comments:

Image Verification: (Case sensitive)