State Deficit Grows to over $5 Billion

Thursday, November 27, 2008 8:44 PM CST

Joan Sanstadt, News Editor

Gov. Jim Doyle said last week the state faces a budget deficit approaching $5.4 billion through mid-2011. The deficit amount has grown $400 million in just the past few days.

By June 30, the deficit will be $346 million. It is the two-year biennial budget that begins on July 1, 2009 through June 30, 2011 where the deficit is calculated to be more than $5 billion.

Doyle mentioned several steps he would take immediately to control the gap. These steps include selling 500 vehicles, not filling 2,800 current vacancies plus another 700 openings that would be created because of retirements. He also said he would delete giving bonuses to some workers and would cancel up to $30 million in grants.

In the near term, the governor has said he will do all he can to avoid raising sales or income taxes. He said his top priorities are in protecting education and public safety.

The governor said he will resurrect some of the tax proposals he made in his last budget, such as a tax on hospital revenue and a tax on oil companies. Hospital officials said they support the assessment because it would give them the first rate increase they’ve seen in years. It is expected the hospital tax would result in $200 million more a year in federal Medicaid dollars.

Michael Morgan, secretary of the Department of Administration, said the deficit is “the worst deficit in state history. For the first time in decades, revenue collections are expected to fall in two consecutive fiscal years.”

Senate Majority Leader Russ Decker (D-Weston) called the new numbers “disappointing, but not surprising given the state of the national economy.”

Speaker-Elect Michael Sheridan (D-Janesville) called the economic news “troubling. We need to make hard decisions and we need to make cuts.”

Signaling the need of a bipartisan solution, Sheridan said, “I trust the leadership of Gov. Doyle and hope that working together, with all members of the legislature, we can navigate our way through this current crisis. This is not a Democratic problem or a Republican problem; this is a Wisconsin problem and all of Wisconsin must be involved in the solution.”

Ripp wins in 47th

Republican Keith Ripp, Lodi, has won the 47th Assembly District seat over Democrat Trish O’Neill. A recount was completed late Friday.

“We’re really glad to see Keith Ripp come out victorious in this race,” said Casey Langan, public relations director for Wisconsin Farm Bureau Federation (WFBF).

“He was endorsed by our Volunteers for Agriculture prior to his primary election in September. We’re pleased he’ll be part of the new legislature in January. For an organization like WFBF and its members, it is vitally important we have farmers serving in our state legislature,” Langan continued.

“Keith Ripp is a real life farmer who understands the issues and challenges our members face; therefore he will serve them well and he will serve all of rural Wisconsin well,” Langan said.

Senate Committees

Senator Kathleen Vinehout (D-Alma) will again head the Senate Committee on Agriculture and Higher Education. Other Democratic members of the committee include Senators Pat Kreitlow (D-Chippewa Falls) and Jeff Plale (D-South Milwaukee).

Other ag-related committees include:

- Commerce Utilities, Energy and Rail n Senator Plale, chair; Senators Robert Wirch (D-Pleasant Prairie), Jon Erpenbach (D-Middleton), Pat Kreitlow (D-Chippewa Falls).

- Economic Development n Senator Julie Lassa (D-Stevens Point), chair; Senators John Lehman (D-Racine), Vinehout and Kreitlow.

- Environment n Senator Mark Miller (D-Monona), chair; Senators Robert Jauch (D-Poplar) and Wirch.

- Health, Health Insurance, Privacy, Property Tax Relief and Revenue n Senator Erpenbach, chair; vice chair is Senator Tim Carpenter (D-Milwaukee), Judy Robson (D-Beloit) and Lassa.

- Public Health, Senior Issues, Long Term Care and Job Creation n Senator Carpenter, chair; Senators Spencer Coggs (D-Milwaukee) and Vinehout.

- Rural Issues, Biofuels and Information Technology n Senator Kreitlow is chair; Senators Jauch and Jim Holperin (D-Eagle River).

- Transportation, Tourism, Forestry and Natural Resources n Senator Holperin, chair; Senators Jim Sullivan (D-Wauwatosa), Plale and Dave Hansen (D-Green Bay).

- Joint Finance Committee co-chair will again be Senator Mark Miller (D-Monona), Other Democrats on the committee will be Senators David Hansen, Green Bay; Lena Taylor, Milwaukee; John Lehman, Racine; Judy Robson, Beloit; and Julie Lassa, Stevens Point.

Buyer Beware

If you are planning to give gift cards as holiday gifts, consumers need to be double check and be sure the cards will be honored after the holidays.

Stores that are planning to close after Christmas are still selling gift cards even though the cards will be worthless Jan. 1.

Apparently there is no law preventing stores from doing this n in fact some refer to it as “bankruptcy planning.”

Comment on transmission line

The Public Service Commission (PSC) is seeking public comment on a draft Environmental Impact Statement (EIS) for a proposed 345 Kilovolt transmission line from Rockdale to West Middleton.

In 2007, American Transmission Co. (ATC) filed an application with the PSC for permission to build between 32 and 55 miles of the new line, which included proposed substations and related facilities along four different route options, including routes along the Beltline in the City of Madison.

The draft EIS is a thorough study of the proposed project, outlining the potential for environmental, community and public health impacts. All public comments on the draft EIS will be considered when drafting the final EIS. Public hearings are expected in 2009.

Public comments on the draft report may be sent to the PSC by Dec. 29, 2008. Copies of the draft EIS are available upon request by calling 800-358-9246. The report may be reviewed on the PSC’s website at http://psc.wi.gov.

Electrician licensing

Last March, Gov. Jim Doyle signed Wisconsin Act 63, which requires the Department of Commerce (DOC) to establish a state electrical wiring code, generally requires electricians to be licensed and registered and provides for electrical construction inspections of buildings.

Beginning on Dec. 3, the DOC will be conducting a series of workshops around the state to discuss the major upcoming changes in electrical licensing and inspection requirements.

The first workshop will be held in Berlin on Dec. 3 from 3 to 6 p.m. at the Alliant Energy offices, 880 N. Wisconsin St. No advance registration is required.

Four other meetings will be offered throughout the state. They include Dec. 4 in Richland Center, Dec. 8 in Ashland, Dec. 9 in Rhinelander and Dec. 10 in Rice Lake.

The main topic of each workshop is the new statewide licensing system scheduled to take effect April 1, 2013.

Capitol Notes:

- If you are visiting Madison over the holidays you might want to stop by the Wisconsin Veterans Museum on the Square and view a Civil War exhibit called “Fishhook and Siege Line: Gettysburg and Vicksburg in Photographs and Battle Maps.” Admission is free. For more information contact Jeff Kollath, curator of programs, at 608-261-0541.

- Dane County Executive Kathleen Falk, who ran against Doyle for the Democratic nomination for governor back in 2002, is going to have a challenger in former Madison School Board member Nancy Mistele.

- Last week Jefferson County Judge Randy Koschnick announced he would challenge state Supreme Court Justice Shirley Abrahamson in the spring. Abrahamson has been on the high court for 32 years and chief justice since 1996. The Spring Primary Election is Feb. 17 and the Spring General Election is on April 7.

- If you want to get your land line and cell phone numbers on the next update of the state’s no call list you must sign up by the end of November. Registration for the list must be repeated every two years or your name will be dropped from the list. You can sign up 24-hours a day, seven days a week. If you wait until December to sign up your number won’t be on the list until April 2009. You can visit the Wisconsin No call List website: http://NoCall.Wisconsin.gov or call 866-966-2255.

- Members of the Wisconsin Congressional Delegation joined together to urge President-elect Barack Obama to renew the waiver for Wisconsin’s SeniorCare prescription drug program. In their letter, delegation members pointed out how SeniorCare saves money for both the federal government and seniors. They also noted that an AARP study showed that 94 percent of SeniorCare participants are better off under SeniorCare than under Medicare Part D. The current waiver will expire on Dec. 31, 2009.

- Gov. Doyle announced last week that Focus on Energy, Wisconsin’s energy efficiency and renewable energy initiative has helped Wisconsin residents and businesses who work with the program to save more than $193 million in annual energy costs during the past eight years while the program has been in existence. Doyle said the savings equaled the energy value of four million barrel of oil.

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