Friday, January 29, 2010
Raise the Age Effort in Wisconsin Begins Again!
WCCF is pleased that Representative Fred Kessler has taken the lead in drafting a bill to raise the age of adult court jurisdiction in Wisconsin back to age 18 - beginning with misdemeanor and less serious offenses as early as July 2010 and for all youth as of July 1, 2011. A press conference in Milwaukee today, Representative Kessler announced the plan to circulate a bill draft next week for introduction in February. View the WCCF press release and watch for further information about the details of the proposal in the coming weeks.
Thursday, January 28, 2010
Bad Budget News That’s Better Than expected
For the last several months I was fearfully thinking ahead to a day sometime in January when the Legislative Fiscal Bureau would issue its annual report on state revenue projections and the state’s economic and fiscal outlook. My trepidation about the report was fueled by the monthly tax collection figures from the Department of Revenue – which have been lagging well behind the FY 2009 numbers – and by very large budget holes that have been reported in other states. Against that backdrop of worrying, the bad news in the LFB’s annual update finally issued yesterday was actually a relief, though it’s no cause for celebration.
The Fiscal Bureau reported that the state’s closing balance (at the end of the 2009-11 biennium) will be $219.5 million less than previously anticipated. Because of a veto the Governor made, which had the effect of restoring a requirement for agencies to find an additional $200 million to lapse to the General Fund, the estimated balance was previously expected to be about $275 million. That has now dropped to $55.7 million, which still leaves the state in the black – although that amount is about $9 million short of the minimum statutory balance ($65 million) that the state is supposed to have at the end of each fiscal year. Nevertheless, these fiscal developments do not trigger the requirement for the Governor to propose a budget repair plan, which is far better news than what I was expecting.
That said – the new figures do not account for a projected $120 million - $150 million deficit in the Medicaid/BadgerCare Plus (BC+) budget and an estimated shortfall of almost $10 million in the Public Defender budget. Although Medicaid and BadgerCare Plus are both entitlement programs (except for the BC+ Core Plan), I’m not surprised that the LFB pushed that issue to the side – at least for now – because the budget bill directs DHS to find cuts to keep MA and BC+ spending in balance. Also, the state might get a significant boost in that area from an extension of the temporary increase in the federal matching rate for Medicaid (approved by the House, but not by the Senate).
The $219 million drop in the projected closing balance is the net result of numerous adjustments in the LFB’s revenue and spending estimates. The primary factor is a $295 million reduction in estimated tax revenue. That can be attributed mostly to:
• $160 million less sales tax revenue over the next two years (relative to the previous estimate),
• $85 million less from cigarette taxes, and
• $25 million less from corporate income taxes.
On the positive side, the individual income tax estimate has only dropped by about $3 million over the next two years. In fact, the individual income tax projections would have actually increased by about $88 million if Minnesota hadn’t unilaterally decided to drop its tax reciprocity agreement with Wisconsin – causing a short-term loss of $91 million for our state. (Keep that unfriendly change in mind if you need any additional motivation to take pleasure in the Viking’s loss last weekend.)
On balance, the state looks almost $220 million poorer today, relative to the estimates last July, but the continued slump in employment and the downturn in revenue hasn’t pushed the budget into the red. The Doyle Administration has some very painful decisions to make – needing to unveil $200 million more in lapses, and perhaps also another round of cuts in Medicaid reimbursement – but the state doesn’t face a divisive battle over another budget repair bill.
The Fiscal Bureau reported that the state’s closing balance (at the end of the 2009-11 biennium) will be $219.5 million less than previously anticipated. Because of a veto the Governor made, which had the effect of restoring a requirement for agencies to find an additional $200 million to lapse to the General Fund, the estimated balance was previously expected to be about $275 million. That has now dropped to $55.7 million, which still leaves the state in the black – although that amount is about $9 million short of the minimum statutory balance ($65 million) that the state is supposed to have at the end of each fiscal year. Nevertheless, these fiscal developments do not trigger the requirement for the Governor to propose a budget repair plan, which is far better news than what I was expecting.
That said – the new figures do not account for a projected $120 million - $150 million deficit in the Medicaid/BadgerCare Plus (BC+) budget and an estimated shortfall of almost $10 million in the Public Defender budget. Although Medicaid and BadgerCare Plus are both entitlement programs (except for the BC+ Core Plan), I’m not surprised that the LFB pushed that issue to the side – at least for now – because the budget bill directs DHS to find cuts to keep MA and BC+ spending in balance. Also, the state might get a significant boost in that area from an extension of the temporary increase in the federal matching rate for Medicaid (approved by the House, but not by the Senate).
The $219 million drop in the projected closing balance is the net result of numerous adjustments in the LFB’s revenue and spending estimates. The primary factor is a $295 million reduction in estimated tax revenue. That can be attributed mostly to:
• $160 million less sales tax revenue over the next two years (relative to the previous estimate),
• $85 million less from cigarette taxes, and
• $25 million less from corporate income taxes.
On the positive side, the individual income tax estimate has only dropped by about $3 million over the next two years. In fact, the individual income tax projections would have actually increased by about $88 million if Minnesota hadn’t unilaterally decided to drop its tax reciprocity agreement with Wisconsin – causing a short-term loss of $91 million for our state. (Keep that unfriendly change in mind if you need any additional motivation to take pleasure in the Viking’s loss last weekend.)
On balance, the state looks almost $220 million poorer today, relative to the estimates last July, but the continued slump in employment and the downturn in revenue hasn’t pushed the budget into the red. The Doyle Administration has some very painful decisions to make – needing to unveil $200 million more in lapses, and perhaps also another round of cuts in Medicaid reimbursement – but the state doesn’t face a divisive battle over another budget repair bill.
Wednesday, January 27, 2010
Wisconsin Receives High Marks for Transparency in Use of Recovery Funds
According to a new report released by Good Jobs First, a non-profit research center, Wisconsin's Recovery Act website ranked 4th best in the country in terms of the quality and quantity of information on how recovery funds were spent. Here is their press release about the report.
More than $200 billion from the American Recovery and Reinvestment Act (ARRA) is flowing through state governments to help counteract effects of the economic downturn. The public deserves accountability and transparency in the use of these funds, and we are pleased to note that Wisconsin has improved in that regard. Wisconsin moved up from 8th place in the previous report card, issued in July 2009.
The report notes that Wisconsin is one of just three states with a website that uses maps to compare the geographic distribution of spending with patterns of economic distress or need within the state. Other aspects of the Wisconsin website that helped the state earn high marks include: detailing allocations in broad and narrow program categories; showing award amounts on a county-by-county basis; mapping the locale of individual projects; describing the projects undertaken; publishing contractor names and award amounts; and projecting the number of jobs created by each project.
The report makes a number of recommendations for ways Wisconsin and other states can improve their Recovery Act websites:
• Providing comprehensive data on wage or benefit levels in ARRA jobs or on the demographics of the workers in those jobs.
• Putting a summary of key information about ARRA spending at the top of the home page of the site.
• Reporting the share of ARRA contracts going to minority, women-owned or other disadvantaged business enterprises.
• Providing the full texts of at least some ARRA contract awards.
Although we are very pleased that Wisconsin now ranks among the best in the nation in providing information about how stimulus funds are spent, there is still a lot more to be done. WCCF is very fortunate to be participating with a number of other Wisconsin nonprofits in an initiative funded by the Open Society Institute to track and analyze ARRA spending in our state, encourage public participation in state-level decisions, and advocate for an equitable distribution of recovery funds.
More than $200 billion from the American Recovery and Reinvestment Act (ARRA) is flowing through state governments to help counteract effects of the economic downturn. The public deserves accountability and transparency in the use of these funds, and we are pleased to note that Wisconsin has improved in that regard. Wisconsin moved up from 8th place in the previous report card, issued in July 2009.
The report notes that Wisconsin is one of just three states with a website that uses maps to compare the geographic distribution of spending with patterns of economic distress or need within the state. Other aspects of the Wisconsin website that helped the state earn high marks include: detailing allocations in broad and narrow program categories; showing award amounts on a county-by-county basis; mapping the locale of individual projects; describing the projects undertaken; publishing contractor names and award amounts; and projecting the number of jobs created by each project.
The report makes a number of recommendations for ways Wisconsin and other states can improve their Recovery Act websites:
• Providing comprehensive data on wage or benefit levels in ARRA jobs or on the demographics of the workers in those jobs.
• Putting a summary of key information about ARRA spending at the top of the home page of the site.
• Reporting the share of ARRA contracts going to minority, women-owned or other disadvantaged business enterprises.
• Providing the full texts of at least some ARRA contract awards.
Although we are very pleased that Wisconsin now ranks among the best in the nation in providing information about how stimulus funds are spent, there is still a lot more to be done. WCCF is very fortunate to be participating with a number of other Wisconsin nonprofits in an initiative funded by the Open Society Institute to track and analyze ARRA spending in our state, encourage public participation in state-level decisions, and advocate for an equitable distribution of recovery funds.
Governor Proposes Child Care Quality System
Governor Doyle gave a boost to a child care Quality Rating and Improvement System when he announced a $10 million proposal in Milwaukee January 22. The Governor is sending his proposal to the Joint Finance Committee for action in this session. He has proposed different versions of quality rating system three times before, but in the 2009-11 budget the Legislature directed the administration to come back with a detailed proposal by the end of the biennium. Here are links to the Governor's press release, WCCF's reaction statement, and coverage in the Milwaukee Journal Sentinel.
Monday, January 25, 2010
State Capitol Update – Week of Jan. 25
The legislature will be in session on Tuesday and Thursday and there are many committee hearings on Tuesday, Wednesday and Thursday. Here are some highlights to watch for:
Ban on bisphenol A legislation is moving in both houses – On Tuesday, Jan 26, the Assembly Consumer Protection Committee will vote on Assembly Bill 405, which would ban the manufacture and sale of baby bottles and cups that contain bisphenol A. WCCF supports this legislation. Please use this link to encourage your state legislators to support AB 405. If you do not know who your state legislators are, the link will connect you to them.
Last week, the Senate Small Business, Emergency Preparedness, Technical Colleges, and Consumer Protection Committee voted 5-0 to recommend passage of SB 271, the companion bill to AB 405. The state Senate will vote on SB 271 on Tuesday, January 26 on the Senate floor. Please use this link to ask your State Senator to support SB 271.
There are also several other committee hearings this week in the capitol. You can follow the state Assembly and Senate when they are in session via WisconsinEye.
Feel free to contact me with any questions at sgentile@wccf.org.
Ban on bisphenol A legislation is moving in both houses – On Tuesday, Jan 26, the Assembly Consumer Protection Committee will vote on Assembly Bill 405, which would ban the manufacture and sale of baby bottles and cups that contain bisphenol A. WCCF supports this legislation. Please use this link to encourage your state legislators to support AB 405. If you do not know who your state legislators are, the link will connect you to them.
Last week, the Senate Small Business, Emergency Preparedness, Technical Colleges, and Consumer Protection Committee voted 5-0 to recommend passage of SB 271, the companion bill to AB 405. The state Senate will vote on SB 271 on Tuesday, January 26 on the Senate floor. Please use this link to ask your State Senator to support SB 271.
There are also several other committee hearings this week in the capitol. You can follow the state Assembly and Senate when they are in session via WisconsinEye.
Feel free to contact me with any questions at sgentile@wccf.org.
Saturday, January 23, 2010
Raising the Age Attracts National Attention
As we hope to gear up to raise the age of adult court jurisdiction to 18 in Wisconsin, this issue is attracting national attention as well. A recent item by CNN.com, titled States Rethink 'Adult Time for Adult Crime' highlights progress in Illinois and Connecticut as well as discussions going on in New York and North Carolina. Too often it is a tragic incident that finally garners the attention of the public, just as here in Wisconsin the recent arrest of a 13 year-old for allegedly killing his father has raised concerns about Wisconsin's laws related to original court jurisdiction.
Friday, January 22, 2010
WCCF Releases 2009-10 WisKids Book, "Jobs Count"
Yesterday, WCCF released its 2009-10 WisKids Count data book, "Jobs Count: Helping Wisconsin Families Thrive Through New Opportunities." In addition to the usual array of data on many key indicators of child well-being, this year's book features an essay on employment, access to training and postsecondary education, work supports, and related issues. The essay contains a number of recommendations aimed at addressing the state’s employment challenges, including:
• updating the state’s UI system so that those seeking part-time work will qualify;
• putting more emphasis on education and training in the welfare reform legislation (TANF) coming up for reauthorization soon;
• indexing the minimum wage to inflation; and
• extending the increased funding for Pell Grants that was provided in the American Recovery and Reinvestment Act (ARRA).
The book was released at a panel discussion--“Employment Challenges in the Milwaukee Area: The Recession and Beyond” -- which took place at the Italian Community Center in Milwaukee and featured local experts speaking on workforce issues.
For more information, see our press release about the "Jobs Count," and of course, READ THE BOOK.
• updating the state’s UI system so that those seeking part-time work will qualify;
• putting more emphasis on education and training in the welfare reform legislation (TANF) coming up for reauthorization soon;
• indexing the minimum wage to inflation; and
• extending the increased funding for Pell Grants that was provided in the American Recovery and Reinvestment Act (ARRA).
The book was released at a panel discussion--“Employment Challenges in the Milwaukee Area: The Recession and Beyond” -- which took place at the Italian Community Center in Milwaukee and featured local experts speaking on workforce issues.
For more information, see our press release about the "Jobs Count," and of course, READ THE BOOK.
Wednesday, January 20, 2010
Report estimates ARRA created or saved 44,000 jobs in Wisconsin
The American Recovery and Reinvestment Act (ARRA) created or saved 44,000 jobs in Wisconsin, according to a new report. The Council of Economic Advisors (CEA) released an analysis last week detailing the national and state impact through the end of 2009 of ARRA funds.
In the last quarter of 2009, the federal government outlayed $84.4 billion in ARRA funds, bringing the total for the year to $263.3 billion. That represents one-third of the funding appropriated by ARRA. The CEA concluded that another $149.7 billion had been obligated by the end of 2009, bringing the total spent or obligated to a little more than half of the total.
Although it is difficult to determine how the economic situation would have developed without ARRA, the CEA estimates that the federal stimulus increased the number of jobs nationwide by 1.5 to 2 million by the end of 2009. Forty-four thousand of those jobs are in Wisconsin.
The CEA estimates that the stimulus added between 2 and 3 percentage points to real GDP growth in the second quarter of 2009, between 3 and 4 percentage points in the third quarter, and between 1.5 and 3 percentage points in the fourth quarter.
On January 30, a second round of job reports by recipients of ARRA grants, contracts and loans will be posted on www.recovery.gov. That website and the reports account for just a small portion of total ARRA spending. It does not include individual and business tax credits or other direct assistance, such as the increases in Food Share benefits and unemployment insurance. The CEA report, on the other hand, bases its estimates on the full range of ARRA expenditures.
In the last quarter of 2009, the federal government outlayed $84.4 billion in ARRA funds, bringing the total for the year to $263.3 billion. That represents one-third of the funding appropriated by ARRA. The CEA concluded that another $149.7 billion had been obligated by the end of 2009, bringing the total spent or obligated to a little more than half of the total.
Although it is difficult to determine how the economic situation would have developed without ARRA, the CEA estimates that the federal stimulus increased the number of jobs nationwide by 1.5 to 2 million by the end of 2009. Forty-four thousand of those jobs are in Wisconsin.
The CEA estimates that the stimulus added between 2 and 3 percentage points to real GDP growth in the second quarter of 2009, between 3 and 4 percentage points in the third quarter, and between 1.5 and 3 percentage points in the fourth quarter.
On January 30, a second round of job reports by recipients of ARRA grants, contracts and loans will be posted on www.recovery.gov. That website and the reports account for just a small portion of total ARRA spending. It does not include individual and business tax credits or other direct assistance, such as the increases in Food Share benefits and unemployment insurance. The CEA report, on the other hand, bases its estimates on the full range of ARRA expenditures.
Friday, January 15, 2010
Capitol Notes – Week of January 18
Next week, the legislature is back in session. Both houses will be in session on Tuesday, January 19. They may also be in session on Thursday, January 21.
On Tuesday, the State Senate will vote on Senate Bill 43, bipartisan campaign finance reform legislation requiring disclosure of the donors and regulation of the money utilized by outside special interest groups and individuals that run so called “issue-ads” during the period of 60 days or less prior to an election. The Wisconsin Council on Children and Families supports SB 43 and urges you to contact your legislators by clicking on this link and expressing your support for SB 43.
Also, on Tuesday, the State Assembly will vote on Assembly Bill 496, which would prohibit text messaging while driving and would create a penalty provision.
On Wednesday, there are many committee hearings. Please click on the following links to view the legislative committee hearing schedule and the calendars for the floor sessions for next week.
Committee Schedule
Assembly Calendar
Senate Calendar
On Tuesday, the State Senate will vote on Senate Bill 43, bipartisan campaign finance reform legislation requiring disclosure of the donors and regulation of the money utilized by outside special interest groups and individuals that run so called “issue-ads” during the period of 60 days or less prior to an election. The Wisconsin Council on Children and Families supports SB 43 and urges you to contact your legislators by clicking on this link and expressing your support for SB 43.
Also, on Tuesday, the State Assembly will vote on Assembly Bill 496, which would prohibit text messaging while driving and would create a penalty provision.
On Wednesday, there are many committee hearings. Please click on the following links to view the legislative committee hearing schedule and the calendars for the floor sessions for next week.
Committee Schedule
Assembly Calendar
Senate Calendar
Wednesday, January 13, 2010
Madison to Launch 4K in 2011-12
After a multi-year campaign to start 4-year-old kindergarten in Madison, the Madison school board voted on Monday to join the 80% of Wisconsin school districts with a universal 4K program. The first year of implementation will be 2011-12, and it will be a community collaboration between MMSD and accredited ECE providers. As Supt. Dan Nerad stated, there were three key components needed to make 4K a reality. First was an implementation plan; this was the result of a yearlong effort by the 50+ person 4K Collaboration Committee facilitated by Kathy Hubbard from United Way of Dane County and Jim Moeser of WCCF. Second was an agreement in the teacher contract to permit some of the licensed 4K teachers to be ECE center employees. This was obtained in September when the 2-year MTI contract was settled. Third was the funding. This last piece is still falling into place, but it looks like it will include borrowing about $4 million along with a tax increase of about $40 per household in Madison. That is because start-up costs are borne by the district for the first two years (the state formula reimburses 1/3 the first year, 2/3 the second, and only gets to 100% in the third year).
WCCF has long advocated for collaborative 4K initiatives and funding throughout the state. Locally, Dane County United, the Madison Area Accredited Early Childhood Association, and the Bright & Early public education campaign have worked tirelessly over the past 5+ years to make this kindergarten readiness program a reality for Madison's children. The United Way reports that only 56% of kids entering 5-year-old kindergarten are able to pass the screener that assesses their learning abilities. It is our hope that quality, play-based, developmentally appropriate 4K will help to raise that percentage.
WCCF has long advocated for collaborative 4K initiatives and funding throughout the state. Locally, Dane County United, the Madison Area Accredited Early Childhood Association, and the Bright & Early public education campaign have worked tirelessly over the past 5+ years to make this kindergarten readiness program a reality for Madison's children. The United Way reports that only 56% of kids entering 5-year-old kindergarten are able to pass the screener that assesses their learning abilities. It is our hope that quality, play-based, developmentally appropriate 4K will help to raise that percentage.
Tuesday, January 12, 2010
New Study: Very Few Being "Taxed out of Their Homes"
One of the go-to arguments of the anti-tax camp is that high and growing property tax burdens are forcing lots of elderly people out of the homes they have lived in for decades. Well, according to a new study by Prof. Andy Reschovsky of UW's La Follette School of Public Affairs and economists Rebecca Boldt and Bradley Caruth of the WI Department of Revenue , that doesn't happen much at all.
While property taxes can mean economic hardship for some elderly homeowners, they are not being forced to move in large numbers as a result. The study found only a small increase in the probability of moving among older homeowners whose property taxes went up a lot. Among younger households, the impact was practically nonexistent.
Among all homeowners statewide, one in 1,600 homeowners chose to move in 2005 because of an above-average increase in property taxes. Of the 389 homeowners who moved, 85 were older than 79. The researchers conclude that while property taxes can certainly make things more difficult for some homeowners, particularly elderly homeowners, they have little effect on people's decisions to move. Like many other myths about taxes in Wisconsin, the notion that large numbers of state residents are being "taxed out of their homes" appears to be erroneous.
While property taxes can mean economic hardship for some elderly homeowners, they are not being forced to move in large numbers as a result. The study found only a small increase in the probability of moving among older homeowners whose property taxes went up a lot. Among younger households, the impact was practically nonexistent.
Among all homeowners statewide, one in 1,600 homeowners chose to move in 2005 because of an above-average increase in property taxes. Of the 389 homeowners who moved, 85 were older than 79. The researchers conclude that while property taxes can certainly make things more difficult for some homeowners, particularly elderly homeowners, they have little effect on people's decisions to move. Like many other myths about taxes in Wisconsin, the notion that large numbers of state residents are being "taxed out of their homes" appears to be erroneous.
Monday, January 11, 2010
State Capitol Report – Week of January 11, 2010
There will be lots of action in the Capitol this week. Right now, there are a dozen public hearings scheduled Tuesday through Thursday. Here is a list of all the committee hearings scheduled.
On Wednesday, the Joint Audit Committee will decide if an audit is needed for the Medical Assistance Program and Educational Programs for Working Adults at the Wisconsin Technical College System. The Wisconsin Council on Children and Families supports the proposed audits of these programs. Here is a link to the hearing notice.
Looking ahead, the Legislature will be in session from January 19 – 28. I will preview the session in a special Friday blog post.
On Wednesday, the Joint Audit Committee will decide if an audit is needed for the Medical Assistance Program and Educational Programs for Working Adults at the Wisconsin Technical College System. The Wisconsin Council on Children and Families supports the proposed audits of these programs. Here is a link to the hearing notice.
Looking ahead, the Legislature will be in session from January 19 – 28. I will preview the session in a special Friday blog post.
Monday, January 4, 2010
Big Week of Hearings on Tap at State Capitol
The State Legislature starts the new year with a busy week of hearings. On Tuesday, the Senate Education Committee, chaired by Senator John Lehman (D-Racine), will hold a hearing on Senate Bill 405, which changes the governance structure of Milwaukee Public Schools by making the superintendent a mayoral appointee. The hearing will be held in Milwaukee on Tuesday, January 5.
On Wednesday, January 6, the Assembly Consumer Protection Committee, chaired by Rep. Gordon Hintz (D-Oshkosh), will hold a hearing on AB 405, the BPA-Free Kids Act. This bill would ban the manufacture and wholesale in Wisconsin of bisphenol-A (BPA) in children’s bottles and cups. The hearing will begin at 10 AM in room 415 Northwest of the state capitol. The Wisconsin Council on Children and Families supports AB 405 and its companion bill SB 271. Please use this link to contact your legislator and ask them to support this bill.
On Wednesday, January 6, the Assembly Consumer Protection Committee, chaired by Rep. Gordon Hintz (D-Oshkosh), will hold a hearing on AB 405, the BPA-Free Kids Act. This bill would ban the manufacture and wholesale in Wisconsin of bisphenol-A (BPA) in children’s bottles and cups. The hearing will begin at 10 AM in room 415 Northwest of the state capitol. The Wisconsin Council on Children and Families supports AB 405 and its companion bill SB 271. Please use this link to contact your legislator and ask them to support this bill.
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