We made tremendous progress two years ago, and we've made even more progress since.
We're rebidding costly state contracts. In our first year, my Administration reduced contracting out by $32 million - the first reduction in at least a decade. Since then, we saved $93 million on a single contract under the Medicaid program, and $46 million on an information technology contract.
We're trimming the state's vehicle fleet back to its level a decade ago. Since July, we have sold 651 vehicles, generating more than $2.1 million - and we will eliminate more than 1,000 state vehicles by April.
For the first time, we're asking state employees to pay a portion of their health insurance, just like workers in the private sector.
We've cut discretionary pay bonuses by 92 percent. We've eliminated more than 1,500 cell phones and sold seven airplanes.
We used to lead the nation in exporting prisoners to other states, but not anymore. Because of reforms we're making in Corrections, we'll have every inmate back in Wisconsin by this summer.
In the last two years, we've had a chance to look at state government from top to bottom. And at times, I've been shocked by the things we've found.
The state never took advantage of its buying power in purchasing desktop computers or software. Now we are - and we've reduced the average price of a computer by $1,000, saving the state $3 million per year. We've also reduced the cost of software by $125 per computer, saving another $2.5 million.
The state also wasn't negotiating volume discounts when employees traveled for state business. Now, we're moving forward with consolidating state travel across agencies, negotiating discounted airline and hotel prices - and saving the state $4 million a year.
State government used to have 220 email servers, and each agency paid separately to operate email. Now, we're consolidating those servers, and we're going to lower the cost of an email account from as much as $15 a month to $3 - saving $1.6 million a year.
Earlier today, we took another step forward. Taking advantage of lower interest rates - and proving that Democrats and Republicans can work together - we saved the taxpayers $19 million. I want to thank the leadership -- Majority Leader Schultz, Minority Leader Robson, Speaker Gard, and Minority Leader Kreuser -- for working with me to get this done.
Unfortunately, even with the progress we've made, Wisconsin still faces a deficit of about $1.6 billion - about half of what we faced two years ago, but still a very significant hole. Not surprisingly, the culture of overspending that developed over two decades couldn't be completely fixed in just two years. And so we must continue our work.
Next month, I will outline my budget for the next two years. I will balance this budget the way I balanced the last one - trimming overhead, cutting wasteful spending, and reforming and redesigning the way Wisconsin does business. And tonight, I renew my pledge to the people of Wisconsin: I will balance this budget without raising taxes.
Taxpayers have done their part, and now it's time for us to do ours.
Speaking of fiscal responsibility, there's someone here who has been showing a lot of it lately - Mayor Tom Barrett of Milwaukee.
While the Legislature has wasted time arguing over a complicated and unworkable Constitutional amendment that would gut education and stifle job growth, Mayor Barrett has actually accomplished something. He cut spending. Under his budget, the city increased its levy by just 2 percent -- less than inflation.
He did it not because politicians in Madison mandated it, but because it was the right thing for Milwaukee.
Property taxes are too high, but let's work together to lower them without harming education, economic development, police and fire protection, and local control.
Some of those who are complaining the most about the increase in property taxes are the most responsible. They tried to cut shared revenue, which would have caused the largest property tax increase in a generation.
By overspending, they nearly bankrupted our state, leaving us with too little money to help our schools.
Tonight, I am announcing that my budget will fulfill the state's responsibility to the taxpayers by living up to our commitment to local government and our schools.
First, we will fully fund shared revenue.
Second, we will significantly increase aid to education.
Third, we will provide over a billion dollars in property tax relief through the homestead credit and the school levy credit.
Fourth, from prescription drugs to cell phones, we'll allow local governments to take advantage of the buying power of the state.
Fifth, we're simplifying the application form for the Homestead Credit - going from 17 pages to a single sheet of paper. The goal is simple: to make sure that families get the tax relief they deserve.
And finally, we'll make significant reforms to the Expenditure Restraint Program. State government spends about $60 million a year to encourage municipalities to hold the line on spending, but loopholes allow some communities to get the incentive even with large property tax increases. In my budget, I will close the loopholes - so we reward communities that actually hold down property tax increases. We will expand it to cover counties as well as municipalities. And instead of just giving incentives to achieve a target property tax increase, we will provide bonuses for municipalities and counties that hold their property taxes even lower.
These are the things that state government must do, and we will. Then, it will be up to local governments and their citizens to determine what's best for their own communities. And if elected officials fail to follow the wishes of the people, citizens should hold them accountable.
What we don't need is bumper sticker politics, or more mandates from Madison. And we certainly shouldn't trade Wisconsin's education system - where students score the best in the nation on the ACT - with Colorado's, where students score near the bottom.
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The incredible progress we've made in Wisconsin over the past two years wouldn't have been possible without the hard work of our state employees.
They are the people who care for our seniors ... patrol our highways ... protect our forests, air, and water ... provide job training ... and teach the next generation at our universities. They come to work everyday with a single purpose: to make Wisconsin a better place to live, work, and raise a family.
I'd like to introduce one of them - Trooper Les Boldt. If you watch TV news, you've probably seen him before. Thanks to the video camera in his patrol car, we could all marvel at the sight of him racing to stop a woman from jumping off a bridge.
Trooper Boldt represents the very best of Wisconsin. Please join me in saluting him and all of Wisconsin's state employees for the tremendous work they do.
Tonight, I have delivered my report on the state of our state. But that report would be incomplete without acknowledging the service of our brave men and women in uniform.
Right now, more than 1,700 members of our National Guard are deployed overseas, and countless more sons and daughters of Wisconsin are serving on active duty in regular and reserve units.
Thirty-three Wisconsin service members have laid down their lives in Iraq and Afghanistan. Some were parents, some were college students, some were just 18 years old. All of them are heroes.
I've gotten to know these families. I've met parents who were burying a son or a daughter, and children saying a last goodbye to their father. In churches and community centers and crowded gymnasiums, I've seen the incredible mark that these 33 men and women left on our communities.
Would you please join me in saluting these fallen heroes and their families?
Tonight, we are joined by Deb Kiser, whose husband, Army Reserve Staff Sergeant Chuck Kiser, was killed in Iraq on June 24. Since then, Deb has reached out to other families of the fallen, to help them cope with their loss. Like many of the families I have met, in her greatest moment of grief, Deb has summoned the grace to help others.
Deb, Alli, and Mark Kiser - you are heroes, too, and we honor you tonight.
As I have seen people like Deb Kiser help others deal with a loss ... as I have seen entire communities mourn the death of one of our troops ... I am constantly reminded that Wisconsin really is a family. And in our respect and admiration for those who have served and fallen, we stand united -- and we have them in our prayers.
As we face the challenges of the next two years, let us draw inspiration from these and all the hardworking families of Wisconsin. Let's give them a government worthy of their character and values.
From growing our economy to investing in health care and education to restoring fiscal responsibility ... yes, Wisconsin is on the move.
With a deep admiration for the great people of this state, and a sincere commitment to do their work, let us continue to move Wisconsin forward.
On Wisconsin.
__________________
Read first time and referred:
Senate Bill 5
Relating to: creation of a Joint Committee on State Mandates and required funding of state mandates.
By
Senators
Darling, Leibham, Kapanke, Brown, Kanavas, A. Lasee, Stepp, Lazich, Lassa and Harsdorf; cosponsored by Representatives Stone, McCormick, Gunderson, Gronemus, Musser, Jeskewitz, Rhoades, Gundrum, Hahn, Lothian and Mursau.
To committee on Veterans, Homeland Security, Military Affairs, Small Business and Government Reform.
Senate Bill 6
Relating to: the number of pupils eligible to participate in the Milwaukee Parental Choice Program.
By
Senators
Darling, Plale, Kanavas, Stepp, Reynolds and Lazich; cosponsored by Representatives Vukmir, Fields, Ziegelbauer, Huebsch, Montgomery, McCormick, Nischke, Stone, Jeskewitz, Nass, Honadel, Gottlieb, Towns, Vrakas, Kaufert, Hundertmark, Gundrum, Ott, Wood, and Gunderson.
To committee on Education.
__________________
State of Wisconsin
Ethics Board
January 11, 2005
The Honorable, The Senate:
The following lobbyists have been authorized to act on behalf of the organizations set opposite their names.
For more detailed information about these lobbyists and organizations and a complete list of organizations and people authorized to lobby the 2005 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us
Altenburg, Rana Marquette University
Babcock, William Wisconsin Society of Architects
Bartlett, Robert Petroleum Marketers Assn of WI / WI Assn of Convenience Stores
Bauman, Lee Wisconsin Automobile & Truck
Dealers Association Inc
Beattie, Tom Association of Wisconsin School Administrators
Benforado, David J Municipal Electric Utilities of Wisconsin
Benske, John Amgen
Bentley, Marc S Wisconsin Engine Manufacturer
& Distributor Alliance (WEMDA)
Birkley, Michael Wisconsin Property Taxpayers Inc
Bloch, Jodi Wisconsin Hospital Association
Inc (WHA)
Borgerding, Eric Wisconsin Hospital Association Inc (WHA)
Boryczka, Nicole Wisconsin Alliance of Cities Inc
Boycks, Brad Wisconsin Builders Association
Boycks, Katie Wisconsin Association of Life & Health Insurers Inc
Boyer, Amy 3M
Boyer, Amy Alliance of Automobile
Manufacturers
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Boyer, Amy American Red Cross
Boyer, Amy Enterprise Rent-A-Car
Boyer, Amy Wisconsin Economic
Development Association
Boyer, Amy Wisconsin Mortgage Bankers
Association
Breedlove, Lynn Wisconsin Coalition for Advocacy
Brenton, Steve Wisconsin Hospital Association
Inc (WHA)
Broydrick, Cynthia Bad River Band of Chippewa Indians
Broydrick, Cynthia ING America Insurance Holdings Inc
Broydrick, William 3M
