Conservatively Speaking

The state Senate today referred Senate Bill 380 (SB 380), the ethanol mandate bill back to the Senate Committee on Organization. The bill could still be scheduled for state Senate floor debate before the current legislative session ends in mid-March.

SB 380 requires that gasoline sold in Wisconsin contain the following percentages of ethanol:

(a) In 2009 to 2014, 10 percent.
(b) In 2015 to 2019, 15 percent.
(c) In 2020 to 2024, 20 percent.
(d) In 2025 and thereafter, 25 percent.

There are penalties for refiners who fail to comply.

A refiner may be required to forfeit not more than $10,000 for a first offense, not less than $500 nor more than $50,000 for a second offense, and not less than $1,000 nor more than $100,000 for a third and subsequent offense.

This is bad legislation for many reasons.

The state Senate, without a reliable crystal ball, is legislating into the year 2025 and beyond. Applying these mandates without knowledge of what our energy capabilities or technology will look like decades from now is irresponsible.

The bill is a mandate. Government should refrain from mandating the kind of gasoline consumers put in their automobiles. The free market should make this decision instead of state government.

The jury is still out on the benefits of ethanol. There are too many unknowns. We are unsure ethanol will cost less, we are unsure ethanol will be more fuel-efficient, and we are unsure ethanol will be good for the environment.

I recognize there is not a groundswell of support from the general public for an ethanol mandate that is a perfect example of legislation driven by special interests.

For all of these reasons, I will vote no on SB 380 if it ever comes to the floor of the state Senate.

As I write this at 4:00 p.m., the state Senate is in recess while Senate Democrats huddle behind closed doors in a closed caucus.

The Senate has completed most of its calendar, but has not taken up Senate Bill 380, the ethanol mandate bill.

Rumors are circulating throughout the Capitol that Senate Democrats called for the closed caucus to discuss the ethanol bill because they don’t have the necessary votes for passage and are now engaged in some serious arm twisting.

Senate Democrats would not say how long this closed door session would last. At the moment, the ethanol bill hangs in the balance while Senate Democrats battle with one another.

If and when the Senate comes to the floor for a vote on Senate Bill 380, I will be voting no.

Imagine getting a letter from the state Department of Revenue (DOR) declaring that you overpaid your taxes and you receive a check for $3,000.

Four months later, you get a letter from the Department of Revenue that you underpaid, and now owe the state thousands of dollars plus interest.

You pay the original refund, but not the interest because a Department employee tells you that you do not have to.

A few weeks later, another letter arrives, saying you owe interest and the state is going to charge a collection fee.

It happened to a Waukesha resident who contacted me and questioned why he had to pay for the Department erroneously mailing him a refund check.

The story has a happy ending. I looked into the matter and discovered the Department mailed incorrect tax refunds due to a computer problem. The Waukesha man and many other taxpayers with the same predicament, a total of 199, no longer have to pay interest because of the Department’s mistakes.

There are more details in today’s Milwaukee Journal/Sentinel. You can read the article here.

I have drafted legislation prohibiting the DOR from charging interest to taxpayers for DOR mistakes. The legislation will be introduced soon.

The Wisconsin Department of Revenue (DOR) is urging income taxpayers to file electronically for quicker returns and fewer mistakes.

For those who file with a paper return, the DOR offers suggestions.

Here are more details, along with changes for this year’s forms.

A bill mandating the sale of ethanol is back before the state legislature.

The state Senate Committee on Campaign Finance Reform, Rural Issues and Information Technology will hold an executive session Tuesday, January 29 at 10:00 a.m. on Senate Bill 380 (SB 380).

SB 380 requires that gasoline sold in Wisconsin must contain the following percentages of ethanol:

(a) In 2009 to 2014, 10 percent.
(b) In 2015 to 2019, 15 percent.
(c) In 2020 to 2024, 20 percent.
(d) In 2025 and thereafter, 25 percent.

There are penalties for refiners who fail to comply.

A refiner may be required to forfeit not more than $10,000 for a first offense, not less than $500 nor more than $50,000 for a second offense, and not less than $1,000 nor more than $100,000 for a third and subsequent offense.

Here is a copy of SB 380.  

I understand the importance farmers place on ethanol. The Wisconsin Farm Bureau Federation says, “The use of grain for ethanol adds up to 10-15 cents for every bushel of corn for Wisconsin farmers.”

Certainly we all wish success for our hard-working farmers. However, the market should decide ethanol sales to consumers, not the government. The government should not interfere with the lives of consumers by determining the fuel they put in their gasoline tanks.

For that reason, I made the successful motion on the Senate floor in the previous legislative session to kill the bill that would have mandated gasoline sold in Wisconsin contain 10 percent ethanol.

As I have stated in the past, if ethanol is of great benefit, then the market should decide. At this time, I do not see a groundswell of support among consumers demanding this product.

The Secretary of the Wisconsin Department of Health and Family Services (DHFS) says the Department is not going to use Social Security numbers to identify recipients of state healthcare programs. Department Secretary Kevin Hayden told the state Assembly Committee on Consumer Protection and Personal Privacy that DHFS is working with  Electronic Data Systems, the Texas-based company that erroneously printed the Social security numbers, to change identification numbers to a unique 10 digit number rather than using Social security numbers.

DHFS Secretary Hayden said the current 10-digit number system includes Social Security numbers. The system will be replaced with a fake identifying number that is not based on Social Security numbers.

The news is less reassuring from state Department of Revenue (DOR) Secretary Roger Ervin. Ervin told the same committee that, according to the Janesville Gazette, state agencies are moving away from using Social Security numbers as identifiers except when absolutely necessary.

After three breaches of privacy in the past 13 months, I am unable to fathom a situation where it is absolutely necessary to publish the Social Security number of any recipient of a state service.

The Social Security numbers of hundreds of thousands of state residents were exposed in recent mailings. The numbers were clearly visible, putting thousands of Wisconsin residents in jeopardy of identity theft. The Texas-based EDS is providing free credit monitoring to affected residents and will cover all expenses incurred because of the mistake.

This is interesting.

Secretary Hayden is asking Wisconsin Attorney General J.B. Van Hollen to think about legal action against EDS.

“Confidential information should never have been printed, and this failure has exposed our members (recipients of state services) to identity theft,” said Secretary Hayden. 

If confidential information should never have been printed, as Secretary Hayden suggests, then it stands to reason that all state agencies should refrain from using Social Security numbers for identification. Wisconsin is the only Midwest state that still uses Social Security numbers as identification numbers. It is time for that practice to end.

State Senate Democrats have pledged they will resurrect their $15.2 billion government health care plan in the current legislative session. The proposal was rejected, and wisely so, during last year’s state budget deliberations. Wisconsin should once again examine what is happening in the state of Massachusetts as a learning experience that government health care is a fiscal disaster.

The Boston Globe is reporting the cost of Massachusetts’ health care program has increased astronomically. Spending on the program will increase by more than $400 million next year. The Globe says it is “one of the largest increases in the $28.2 billion state budget the governor proposed.”

The reason for the large increase in the cost is simple and not surprising. The number of people registering for government health care is far greater than previous estimates. State and federal taxpayers are now responsible for practically all of the unexpected sticker shock.

The Globe reports, “The long-term cost of the insurance initiative continues to concern policy makers and analysts, who are worried that it may become unaffordable. This year the state is expected to exceed the initial budget for the health insurance initiative by about $245 million, and next year's budget would boost spending by another $400 million.”

There is a great deal of uncertainty swirling around the Massachusetts government health care debacle. The announcement of the plan resulted in far more people signing up that drove up the cost substantially that the state may be unable to pay. Wisconsin would be wise to learn a valuable lesson from Massachusetts and refuse to go down the same nightmarish path of government  health care.

The state Senate last week approved the Strangulation Prevention Enforcement Act, legislation that I co-sponsored.

The bill, if signed into law, will provide law enforcement guidelines to address the severity of strangulation and prosecute as a felony.

Under this bill, Senate Bill 260 (SB 260)  anyone who intentionally impedes the normal breathing or blood circulation of another person by applying pressure on the throat or neck, or by blocking the nose or mouth, of the other person is guilty of a Class H felony. Violators could be fined up to $10,000, be imprisoned up to six years, or both.SB 260 expands the definition of a “dangerous weapon” to include a ligature or any other instrument used on the throat, neck, nose, or mouth of another person to impede, partially or completely, breathing or circulation of blood, and includes strangulation and suffocation in the definition of a “violent crime.”

The Executive Director of the Wisconsin Coalition Against Domestic Violence, Patti Seeger says in a news release, "All too often domestic abusers strangle their victims as they escalate the violence, but strangulation often leaves no visible injury and is not treated as the serious and dangerous crime that it truly is. This legislation will be a powerful tool for intervening in a potentially lethal form of domestic violence and prevent it from intensifying."

The Association of State Prosecutors, the Wisconsin Chapter of the International Association of Forensic Nurses, WCADV, the Wisconsin Coalition Against Sexual Assault, the Wisconsin District Attorneys Association, the Wisconsin Sheriff's and Deputy Sheriffs Association, and the Wisconsin Victim/Witness Professionals have all publicly supported the Strangulation Prevention Enforcement Act. Attorney General J.B. Van Hollen has also expressed his support for the bill.  

Here’s an update on my blog from last week on the shaky future of virtual schools.

Legislators have reached a compromise that would keep virtual schools in operation. The schools’ status was in jeopardy because of a lawsuit brought against the schools by the state teacher’s union.

If the Legislature can agree on a compromise before the current legislative session ends in March, virtual schools that I support will be saved. 

Here are more details.

Following the Governor’s State of the State speech, I was one of several legislators to offer reaction on WisconsinEye.

Click Part Two under Reactions from Various State Legislators.

My remarks are 4:57 into the video.  

Stateline.org is keeping track of State of the State speeches being given by the nation’s governors.

Even though many states are now seeing large deficits, governors are still proposing large spending projects.

Some governors are going the other route, calling for tax and spending cuts. As stateline.org puts it, “Governors are shying away from tax increases.”

Here’s the stateline.org report.

UPDATED JANUARY 28

One of the elements of Governor Doyle’s annual State of the State address that has received little attention is his plan to, as he put it, “invest in a compensation system that rewards teachers who take on the hardest assignments, who advance their skills, and who help their students achieve success,” because “the system is broken.”

The Governor does not provide specific details about how he will pay for his plan.

He also claims that Wisconsin teachers are under-funded, saying in his speech, “Teachers in Minnesota, Illinois, Michigan, and Iowa all make more than Wisconsin teachers.” I am unsure where the Governor is getting his information to make that claim because he does not attribute a source.

The American Federation of Teachers (AFT) released a state-by-state ranking of teacher salaries in 2005, and teachers in Minnesota, Illinois, and Michigan have a higher average salary than Wisconsin teachers, and Iowa teachers make less than Wisconsin teachers.

The Governor also said in his speech, “Starting teachers in 48 other states make more than Wisconsin teachers.” According to the AFT study, that is true. However, Wisconsin teachers quickly climb up the salary ladder. The average teacher salary in Wisconsin ranks number 26 among the states at $43,099.

A report by the Wisconsin Policy Research Institute that examined school spending during the 2000-2001 school year notes that a significant area of K-12 spending was employee salaries and benefits. Wisconsin school districts paid benefits totaling 36.4 percent of salaries and wages, higher than the national average of 25.5 percent and regional average of 28 percent.

The report also revealed that the higher benefits could be compensating for lower pay. Average teacher pay and benefits during 1999-2000 in Wisconsin were 7.2 percent above the national average, however the average Wisconsin teacher salary was $41,153 or 1.4 percent below that national norm.

Overall average worker earnings in Wisconsin were 14.8 percent below the national average, revealing that teachers do considerably better than most Wisconsin workers.

Education is a priority for me and for the state legislature.  I care very much about student learning, and I, and other Republicans, voted for significant education funding over the years. Historically, Wisconsin’s education generosity has been consistent and growing.

The Wisconsin Policy Research Institute report reveals statewide K-12 spending averaged $9,228 per student during the 2000-2001 school year. That amount is above the national average of $7,985 per student and above the regional average of $8,602 per student. Wisconsin’s teacher pupil ratio is higher than in other states. According to the report, Wisconsin school districts employ 11.6 percent more teachers than the national average, and 13.9 percent more than the surrounding states. Wisconsin had 1.73 teachers for every 25 students compared to the national average of 1.55 during 2000. Wisconsin had more than twice the national average of instructional coordinators, 43 percent more school librarians, 40 percent more support staff and three percent more principals and assistant principals.

Wisconsin has a long-standing tradition of being very generous to education because education is the key to personal success, and individual personal success is the key to our country's success. I look forward to hearing the Governor give specific details about how he intends to fix what he perceives to be a broken teacher compensation system. 

During his annual State if the State address, Governor Doyle expressed some worry about Wisconsin’s economy. Pointing his finger squarely at the nation’s capital, the Governor said, “Many of the challenges we face today in Wisconsin can be traced to years of bad decision making in Washington.”

I believe the Governor is in denial. Wisconsin is to blame for the economic peril the state finds itself in, due to horrible budgeting and a failure to control spending. There is plenty of evidence to demonstrate how Wisconsin is responsible for digging a massive budget hole.

No matter the methodology used to examine our state finances, the final tally is alarming. The next state budget deficit, according to government accounting, is $900 million. Using real world accounting, Generally Accepted Accounting Principles, the state’s general fund deficit for fiscal year 2007 is $2.44 billion.

The 2007-09 budget the Governor signed and that I voted against increased taxes and fees by $763 million.  The Governor tampered with Indian gaming funds and the Patient’s Compensation Fund. Because of the Governor’s actions, millions of dollars budgeted on a hope and a prayer are now in jeopardy.

The current state budget assumes that a court will order the Ho-Chunk tribe to make payments to the state that the tribe says it does not owe. The state Department of Administration estimates the tribe will owe about $72 million in fees under its gambling compact by June 30, 2009. A lawsuit over the money is pending in federal court. There are no guarantees that the state will win the lawsuit, receive as much as it is seeking, or that payment will be received during the current budget cycle. 

The State Medical Society has filed a lawsuit in an attempt to prevent $200 million from being transferred from the Patient’s Compensation Fund to the Medical Assistance trust fund to pay for Medicaid costs. The budget raid by the Governor is not uncommon. Remember, in the 2005-07 state budget, the Governor used his veto pen to transfer $427 million from the transportation fund to the general fund.  

Wisconsin is suffering from a shortfall in tax collections. Collections are far below the three percent they were projected to be, coming in at only 0.8 percent. Blaming Washington is wrong. Wisconsin has taxed and spent itself into budget oblivion. If this trend continues, the state budget will be thrown into greater chaos. I fear the Governor will embrace tax increases and more funding raids. The Governor and the Legislature need to be more straightforward about the state of our state economy and the necessary solutions. With revenues down and a state in a huge deficit, we need to put the brakes on spending.

Governor Doyle began his State of the State address by saying we must make cuts. He proceeded to recognize and validate a looming recession. He then proceeded to light up the Christmas tree and place many new gifts under it. He did not explain how he would pay for the gifts.

The condition of state finances is that the next budget deficit, according to government accounting, is $900 million.

Using real world accounting, Generally Accepted Accounting Principles, the state’s general fund deficit for fiscal year 2007 is $2.44 billion.

The recently approved 2007-09 state budget that I voted against increased taxes and fees by an incredible $763 million. Keep in mind there are millions of dollars at risk due to the Governor tampering with Indian gaming funds and the Patient’s Compensation Fund, not to mention the $427 million transportation raid. Tax collections are rapidly falling and expected to further decline during 2008.

The true state of the state economy is that every economic ranking shows Wisconsin in the top ten in taxes around the country. The Governor and the Legislature need to fully understand that the state cannot afford to continue its spiral of falling revenues and increased spending. That’s a recipe for economic disaster that will keep Wisconsin as one of the highest taxed states in the nation.

You can hear an audio clip of my reaction to the State of the State on badgerblogger.com.

 

Governor Doyle delivers the annual State of the State address tonight to the state Legislature.

Watch my blog tonight. I will post my reaction to the State of the State following the Governor’s speech.

You get to vote on April 1, 2008 if you want to see an end to the Frankenstein veto.

I co-sponsored the constitutional amendment that will prohibit Wisconsin governors, Republican or Democrat, from using their expansive veto power to form new words, phrases or sentences to authorize spending the Legislature never approved. Here are more details.

Here’s a reminder of what prompted the constitutional amendment and why the Frankenstein veto must go.

Governor Doyle used his partial veto 139 times on the 2005-07 state budget. One of his Frankenstein vetoes increased a transfer from the transportation fund to the general fund from $268 million to $427 million.

Look at how Doyle did it. 

The vote on April 1 is to get rid of the Frankenstein veto.

Once again, women from the Silent No More Awareness campaign were in the state Capitol last week to spread their message of the impact abortion has on women and men.

The campaign has three stated goals:

1) Educate the public that abortion is harmful emo­tionally, physically and spiritually with lasting con­sequences.

2) Reach out to those hurting after their abortion and let them know help is available.

3) Invite those who are ready to share their stories to join us in being silent no more.

The women talk about this controversial subject because, as they put it, “Abortion is the most common medical procedure performed in America, but the experience is rarely discussed.”

The co-founder of the Silent No More Awareness campaign, Georgette Forney has written a piece entitled, “What’s so bad about abortion?”

Forney provides the answers.

Learn more about the campaign here. 

January 22, 2008 marks the 35th anniversary of the U.S. Supreme Court decision in Roe v. Wade that legalized abortion.

Wisconsin has had three separate incidents of a breach of privacy in the past 13 months.

December 29, 2006, the Wisconsin Department of Revenue mailed out about 170-thousand income tax forms to taxpayers with their Social Security numbers printed on the address labels for anyone to see.

This month, about 260,000 state residents who participate in Medicaid, BadgerCare or SeniorCare had their Social Security numbers printed on a mailing from the state Department of Health and Human Services. Also this month, a portion of 5,000 taxpayers in northeastern Wisconsin had their Social Security numbers exposed in a state mailing. A folding error enabled some of the recipients' Social Security numbers to be seen in the windows of envelopes containing federal 1099-G tax forms.

These breaches of private information open the door to identity theft.

As identity theft skyrockets, with as many as 750,000 Americans victimized each year, experts unfortunately say there is not a surefire prevention plan. There are some simple methods that can be used for protection, according to small business and personal finance writer, author, and MSN.money contributor Jeff Wuorio:

“1. Tear up -- or, if you prefer, shred -- credit card statements, solicitations and other documents that contain private financial information.

2. Empty your mailbox quickly, lock it or get a P.O. box so criminals don’t have a chance to snatch credit card pitches. Never mail outgoing bill payments and checks from home. They can be stolen from your mailbox and the payee's name erased with solvents. Mail them from the post office or another secure location.

3. Never carry your Social Security card with you, or any other card that may have your number, like a health insurance card. And don’t put your number on your checks. It's the primary target for identity thieves because it gives them access to your credit report and bank accounts.

4. Don't leave a paper trail. Never leave ATM, credit card or gas station receipts behind.

5. Never let your credit card out of your sight. Worried about credit card skimming? Always keep an eye on your card or, when that's not possible, pay with cash.

6. Know who you're dealing with. Whenever anyone contacts you asking for private identity or financial information, make no response other than to find out who they are, what company they represent and the reason for the call. If you think the request is legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data.

7. Take your name off marketers' hit lists. Sign up for the Wisconsin No Call List.

8. Be more defensive with personal information. Ask salespeople and others if information such as a Social Security or driver’s license number is absolutely necessary. Ask anyone who does require your Social Security number -- for instance, your insurance company -- what their privacy policy is and whether you can arrange for the organization not to share your information with anyone else.

9. Monitor your credit report. Obtain and thoroughly review your credit report at least once a year to look for suspicious activity. If you spot something, alert your card company or the creditor immediately.

10. Review your credit card statements carefully. Make sure you recognize the merchants, locations and purchases listed before paying the bill. “

Wuorio’s advice if something goes wrong:

“First, contact the fraud departments of each of the three major credit bureaus. Tell them that you're an identity theft victim. Request that a "fraud alert" be placed in your file, along with a victim's statement asking that creditors call you before opening any new accounts or changing your existing accounts.

Contact the creditors for any accounts that have been tampered with or opened fraudulently. Speak with someone in the security or fraud department of each creditor, and follow up with a letter.

File a report with your local police or the police in the community where the identity theft took place. Get a copy of the police report in case the bank, credit-card company or others need proof of the crime.

Keep records of everything involved in your efforts to clear up fraud, including copies of written correspondence and records of telephone calls.”

On Thursday, January 10, 2008, I appeared as a guest on Joy Cardin’s program on Wisconsin Public Radio to discuss Wisconsin’s ban on abortion. The state law is still on the books, but is overridden by Roe vs. Wade.

I oppose repealing the ban.

You can hear the entire program by clicking “Listen,” below.

Joy Cardin’s first guest is State Representative Therese Berceau (D-Madison) who supports a repeal of the ban on abortion. Listen to how Representative Berceau responds to her first male caller.

My interview follows Berceau’s.

 Listen

Do football stadiums have an impact on local economies?

If you ask Robert Baade, Professor of Economics and Chair of the Department of Economics and Business at Lake Forest College, he will say no.

Baade has done extensive research in this area, and muninetguide.com reports that Baade believes that, in general, the research indicates little or no support for the contributions of stadiums or other sports venues to local economies.

An exception is tiny Green Bay, Wisconsin.

Baade says that because the city is so small relative to other cities with NFL teams, it finds itself in the rather unique position of enjoying economic benefits. A rabid statewide following doesn’t hurt, either.

The Green Bay Press Gazette reports that the latest survey on the economic impact of a home Green Bay Packers game was done in 2000. The study was conducted for the Green Bay Area Chamber of Commerce by Pricewaterhouse Coopers and CFL International.

A green package game added $3.5 million to the local economy and a gold package game brought in $3.9 million. Green package ticket holders buy tickets for a preseason game and six regular season games. Former Milwaukee season-ticket holders get tickets for a preseason game and two regular season games as part of the gold package.

The Press Gazette asked Susan Farrell of Ashwaubenon-based Associated Bank to apply a three percent inflation rate to the 2000 figures. Farrell calculated that the green package games, adjusted for inflation, would have a local economic impact of $4,433,695, and the gold package games would go to $4,940,403.

Brad Toll, president and chief executive officer of Packer Country Visitor and Convention Bureau, believes that even those figures are conservative. Toll says a more updated economic impact study that is being considered would include data from hotels, restaurants, bars and other businesses that have opened since 2000.

The frozen tundra the Packers call home, Lambeau Field was recently named by Sports Illustrated the number 1 stadium in the NFL for the best fan value experience. The Packers’ opponent in the NFC Championship Game on Sunday, the New York Giants home stadium rates number 25.

The Green Bay Packers are a treasure to the state of Wisconsin.

We should all be proud. We’re lucky to have them.