Friday, May 29, 2009

Joint Finance Committee Funds Wisconsin Shares Despite Large Deficit

The Joint Finance Committee finished their work on the state budget pretty early this morning after an all night session. The Committee adopted a motion that funded the Wisconsin Shares child care subsidy program, authored by Senator Mark Miller (D-Monona) and Representative Tamara Grigsby (D-Milwaukee). The motion eliminated the creation of waiting lists for the program, eliminate increases in family co-payments, and fixed a bad attendance-based policy to determine payments to providers.

The motion does create procedures for establishing the number of hours authorized for a child to utilize child care that includes the following:
(a) track hourly usage of child care authorizations over a six-week period;
(b) automatically adjust authorizations where usage is less than 60% of the authorized hours in all three of the consecutive two-week periods;
(c) adjust the authorizations to reflect 90% of the maximum number of hours attended during that six-week period;
(d) provide written notification to the parents, child care providers, and local child care administrative agencies regarding the proposed adjustment;
(e) provide a grace period of six weeks such that the child care subsidy amount would not change during six weeks after the authorization hours are adjusted;
(f) require DCF to allow one week of vacation for child care providers and two weeks of vacation for parents without adjusting authorization hours;
(g) require DCF to allow one week of sick time for child care providers without adjusting authorization hours; and
(h) require DCF to promulgate rules that would specify how these requirements would be implemented.

The motion eliminates the funding for a Quality Rating System and instead requires the Department of Children and Families to return to the Joint Finance Committee with a specific plan that includes:
(a) various options for a quality rating system, with each option requiring certified child care providers to be included in the rating system;
(b) various options for quality assurance monitoring;
(c) details of estimated program expenditures, including financial incentives for providers to achieve a higher rating;
(d) the information and training for child care providers that specifies steps for improvement that are not restricted to new licensure or certification requirements;
(e) how the system would ensure that the quality rating information is accessible and presented in a way that is valuable to families and providers;
(f) the process for ongoing evaluation, which must consider input from child care providers and other participants; and
(g) any other relevant information.

What Lies Ahead for Children and Families: The President’s FY 2010 Budget

As everyone struggles with the reality of current fiscal deficits at the local, state, and federal levels, the President has recently released the federal budget for FY2010. An analysis of that budget's impact on children and families, titled Imperfect Progress: An Analysis of the President’s FY2010 Budget and its Impact on Children’s Services, was recently completed by Voices for America’s Children. The analysis provides information about the upcoming budget related to children’s health care, foster care, child safety, disproportionality in both the child welfare and juvenile justice systems, and juvenile delinquency.

Friday, May 22, 2009

More on Governor's New Budget Plan and its Impact on Kids and Families

Gov. Doyle announced the general outline of his plan yesterday for closing the new $1.6 billion hole in the state budget caused by the sharp drop in tax collections. It calls for deep cuts in state agency budgets, furloughs and layoffs of state workers, and a 2.5 percent cut in state aid to schools, counties and municipalities.

The Governor reiterated Thursday that he would not raise taxes beyond the targeted changes he proposed back in February, when the deficit was much smaller. He was joined at the press conference by the co-chairs of the Joint Finance Committee, who have agreed to the general framework of the Governor’s plan, though it appears that many details still need to be resolved.

The Governor and legislative leaders said repeatedly that the new budget plan will protect Wisconsin’s “core values” and “core services,” including education, health care and public safety. And they have suggested that safety net services for disadvantaged families and vulnerable children would be protected. Yet it’s unclear at this point whether the sketchy plan they have unveiled will truly protect those services and meet the needs of the growing ranks of unemployed parents and their children as the recession deepens.

The budget cuts are likely to reduce the number of intake workers for public benefit programs at a time when caseloads and new applications are soaring and far surpass the ability of the current intake workers to keep up. Another concern is that it appears that the state plans to keep funding for W-2 benefits and services at the same level as two years ago, when the unemployment rate was half its current level, even though the economic stimulus bill provides 80 percent federal funding for increased W-2 spending.

One source of great frustration for anyone who hopes to contribute to the public discourse regarding how to balance the budget is that the specific cuts and their consequences aren’t clear. It could be weeks or months before we learn how agencies will allocate the new 5 percent cuts they have been directed to make. Since some areas can’t be cut (because of federal mandates, for example), other areas will take much bigger hits. The same is true at the local level, and it will take even longer for local governments to decide where the deep cuts will be made in K-12 education, county human services, and municipal services.

In the weeks ahead, we urge policymakers to create a transparent budget process, which enables the public to understand what’s being cut and what the alternatives are, including revenue options. The impact of the new cuts that are being proposed is likely to far surpass the negative consequences of the previously proposed cuts, and the public deserves to understand those impacts before policymakers finalize their budget-balancing choices.

More State Budget Cuts Announced

The Governor and the co-chairs of the Joint Finance Committee, Sen. Mark Miller (D-Monona) and Rep. Mark Pocan (D-Madison), held a press conference late Thursday to announce additional cuts in the state budget due to a much larger deficit than originally expected. These include additional 5% cuts across the board to all state agencies, and 2.5% cuts in school aids and shared revenues to local governments, totaling $669.7 million. WCCF will be analyzing the impact of these additional cuts on children and families. Safety net programs already have waiting lists and now there will be reduced services available to help people that have lost their jobs. The cuts to schools are also of concern because revenue limits have made schools eliminate services over the years and there is just not much left to cut from school budgets.

The Joint Finance Committee, which has not met since May 5, now plans to meet today at 11 AM and Saturday at 10 AM. Today’s calendar consists of Veterans Affairs Health Facilities, District Attorneys, Public Defender, Employee Trust Funds and the University of Wisconsin System. WCCF has not taken positions on votes for today, but will be watching more closely on Saturday when Joint Finance will vote on the Department of Health Services and the Medical Assistance Programs. Sen. Miller and Rep. Pocan want Joint Finance to be done with their work by the end of May. I expect them to meet multiple times next week starting on Tuesday, May 26. All of the Budget Papers released to date are available online. The Department of Children and Families (DCF) Budget Papers have not been released yet, so they are not on that list. WCCF will be taking positions on votes for DCF items; we'll keep you posted on those votes.

Wednesday, May 20, 2009

Press Conference to Promote Balanced Approach to Fixing Budget Deficit

WCCF and a whole bunch of partners convened a press conference on Tuesday, May 20 to send the message to the Governor and legislators that it is not acceptable to fix the state budget deficit through spending cuts alone. Our aim was to raise awareness of the fact that deep cuts to critical programs would have a devastating effect on the state's most vulnerable populations, and therefore policy makers must explore options for generating additional revenue as part of the budget solution. At latest count, 67 organiziations had signed on to the statement of support for the position articulated at the conference. The Senate parlor was packed for the event, and most of the capital press corps was in attendance. The press conference resulted in quite a bit of coverage, perhaps the best of which was the Milwaukee Journal Sentinel's story. Here's the press release that was put out about the press conference.

Wednesday, May 13, 2009

Increased Deficit Magnifies Importance of Revenue Options

The Legislative Fiscal Bureau (LFB) issued new estimates on May 11 of tax collections this year and in the next biennium. According to the LFB, the state deficit over the next 2 years will be $1.6 billion greater than previously estimated.

This grim news could get even worse in the coming weeks. The new LFB figures look only at the revenue trends, not at increased spending needs. The Fiscal Bureau has yet to project how much BadgerCare spending is likely to exceed the budgeted funding level, as the recession swells the ranks of unemployed families who are losing employer-sponsored health care. BadgerCare Plus enrollment has already jumped by 7% over the first 4 months of 2009, compared to December 2008.

WCCF is extremely concerned about many of the initial cuts in the budget bill, and even more worried about the much greater cuts that will be proposed to close the $1.6 billion increase in the deficit. With those concerns in mind, we prepared a brief paper about four options for additional revenue or savings that we think legislators should consider. The four options are:

Treating capital gains as ordinary income;
Restoring the state's estate tax;
Eliminating the personal property tax exemption for business computers (and the state reimbursement of local governments for the lost revenue); and
Increasing tax collection efforts at the Dept. Of Revenue (DOR).

The Joint Finance Committee voted on May 12 for a version of the fourth option that would fund 30 DOR positions. The LFB estimates those postions will generate $70 million in 2009-11 – a net gain (after paying for the positions) of more than $58 million GPR. That’s a very welcome step in reducing the $1.6 billion deficit, but the Governor and legislators will have to include other revenue uppers in the budget if they are going to avoid relying almost exclusively on cuts to close the increased budget deficit.

Charity's Column on QRIS in Janesville Gazette

An op-ed by WCCF Executive Director Charity Elson appeared in the Janesville Gazette on Tuesday, May 12. In the column, Charity argues the merits of a quality rating and improvment system (QRIS) for early care and education. Such a system was proposed in the last two budgets, but did not survive the budget process either time. QRIS has once again been proposed, but is still meeting with some resistance in the Legislature. WCCF strongly supports implementation of such a system. Contact us for more information.

Supreme Court to Hear Cases on Constitutionality of Juvenile Life Without Parole

On May 4, the U.S. Supreme Court agreed to take up two Florida-based cases to determine if sentencing a person who commits an offense while under the age of 18 to live without the parole (LWOP) is cruel and unusual punishment. In Roper v. Simmons (2005) the Supreme Court banned imposing the death penalty on youth who committed an offense before the age of 18, but to date there is really no other direction from the court on how to treat these rare, but serious offenders. Advocates, who use the term “sentenced to die in prison,” suggest that the adult system is ill-equipped to provide the kind of programming and meaningful protections these youth are entitled to. Many states are in the process of considering legislation that would provide these youthful offenders some opportunity for parole review at some point in the process. For more information about this pending case, see http://njjn.org/resource_1198.html.

Thursday, May 7, 2009

Celebrate Mother’s Day and Support WCCF!

WCCF invites you to honor your mother this year by making a contribution in her name. Your contribution will help ensure that children continue to have a strong voice in Wisconsin so they can reach their full potential. In many ways, the Council is like the grand matriarch for our state’s children. Our work mirrors what all mothers want for their kids: improved health care outcomes, higher educational achievement levels, enhanced child safety, better access to child care benefits and greater financial stability. These are just a few of the ways that WCCF benefits children, as well as families and communities, in our state. Please show your support for WCCF--and for mothers everywhere--by making a donation.

Wednesday, May 6, 2009

Green Bay Police Chief Supports Quality Rating System

In an op-ed column published on May 3 in the Green Bay Press Gazette, Green Bay Police Chief Jim Arts supported early childhood investments, including the Governor's Quality Rating System proposal. Arts indicated that "one of the most effective ways to reduce crime is to make sure young people get a great start." WCCF is strongly supports development and implementation of a quality rating and improvement system for early care and education programs, and is delighted to see members of the law enforcement community on board.

Tuesday, May 5, 2009

WCCF and Partners Release Vision 2020 Report Card

Yesterday, WCCF and its Vision 2020 partners, WISCAP and the WI Head Start Association, released the second edition of our Vision 2020 Report Card. The report card grades the state's progress in four key areas related to poverty: early care and education, access to family-supporting wages, healthy children, and safe and affordable housing. Both the report card and the full, detailed report are available online. Here's our press release about it.

We timed our release to coincide with the statewide poverty summit taking place in Milwaukee yesterday and today, be didn't manage to generate much media attention, party because the Institute for Research on Poverty released a big poverty report the same day, and they presented on theirs at the conference. However, there is an important difference between their report and ours. While the IRP report provides a good snapshot of poverty in Wisconsin and examines the strengths and weaknesses of how poverty is usually measured, it is silent on the matter of solutions to poverty. Our report card is all about finding systemic ways to combat poverty at its roots. We believe talking about the severity of poverty is only useful if it leads to productive conversations focusing on what to do about it.

JFC and Other Action in the State Legislature

The Joint Finance Committee will be voting on many important items this week. On Tuesday, May 5, the Committee will take action on the Department of Public Instruction, including Student Achievement Guarantee in Education Program and Four-Year-Old Kindergarten Grants. Also on Tuesday, the committee will be voting on FoodShare benefits for legal immigrants and income maintenance programs. These issues fall under the Department of Health Services (DHS) – Medical Assistance and FoodShare – Administration. WCCF has put out position papers on these DHS items. They are available at http://www.wccf.org/pdf/memo_income_maintenance_paper_444_050409.pdf and http://www.wccf.org/pdf/memo_food_share_paper_443_050409.pdf. They are also available via the Budget Essentials page of our website.


On Thursday, May 5, JFC will be voting on funding for the Homestead Tax Credit Program. This can be found under Shared Revenue and Tax Relief – Property Tax Credits. All of the JFC Papers can be accessed online at http://www.legis.wisconsin.gov/lfb/LFBPublications_ButtonPages/Budget_Papers.htm.

In addition to JFC action, Tuesday the Senate Health Committee will hold a public hearing on SB 181, statewide smoking ban. Here is the hearing notice.