Read a second time.
Ordered to a third reading.
Senator Decker, with unanimous consent, asked that the bill be considered for final action at this time.
Assembly Bill 5
Read a third time.
The ayes and noes were required and the vote was: ayes, 33; noes, 0; absent or not voting, 0; as follows:
Ayes - Senators Carpenter, Coggs, Cowles, Darling, Decker, Ellis, Erpenbach, S. Fitzgerald, Grothman, Hansen, Harsdorf, Holperin, Hopper, Jauch, Kanavas, Kapanke, Kedzie, Kreitlow, A. Lasee, Lassa, Lazich, Lehman, Leibham, Miller, Olsen, Plale, Risser, Robson, Schultz, Sullivan, Taylor, Vinehout and Wirch - 33.
Noes - None.
Absent or not voting - None.
Concurred in.
Senator Decker, with unanimous consent, asked that all action be immediately messaged to the Assembly:
Assembly Bill
5
Messaged.
Senate Bill 15
Senator Decker, with unanimous consent, asked that Senate Bill 15 be laid on the table.
__________________
Senator Wirch, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Jim Hawkins of Kenosha, and wished him a speedy recovery.
Senator Leibham,with unanimous consent, asked that when the Senate adjourn, it do so in honor of Lucy Schneider of Sheboygan who passed away on Sunday, January 4, 2009 after being blessed with 90 years of life.
Senator Leibham,with unanimous consent, asked that when the Senate adjourn, it do so in honor of his son, William Joseph Leibham, who was born on November 17, 2008.
Senator Kanavas, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Mr. Henry Nagy, founder of what became the Spancrete Group, Incorporated of Waukesha. Mr. Nagy, a great man, passed away last week at the age of 100.
Senator Darling, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Suzie Bradford, who passed away from colon cancer last week.
Senator Sullivan, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Joanne Benz who passed away on January 17th. Joanne dedicated her life to the service of others. She served on the board of directors of the Allis B. Kadish Foundation and as the National Secretary of the Clipped Wings. As the former president of the Wauwatosa Junior Woman's Club and founder of "Tosafest" she was an accomplished contributor to the community who continually worked to promote of the City of Wauwatosa. Senator Sullivan would like to extend his greatest sympathy to her children and husband, Jim Benz.
Senator Taylor, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Cordelia Michelle Bryant. Michelle, the Senator's former Chief of Staff, is a good friend and an invaluable member of the community. Her service in the Senator's office and for her constituents will forever be appreciated.
Senator Taylor, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Jasmine Holt. Jasmine, a high school student in Milwaukee, has just started her first day as an intern Senator Taylor's office. A bright student, she will utilize all that she learns from this experience to provide more opportunities for her future.
Senator Taylor, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Rev. Peter Narum, pastor at St. James Lutheran Church, in Verona, who delivered the day's opening prayer and did so in a fashion to remind the Senators and those assembled of their true calling of service and leadership to this august body.
Senator Jauch, with unanimous consent, asked that when the Senate adjourn, it do so in honor of Congressman Obey, who has used every bit of his forty years of leadership and experience as a member of the House Appropriations Committee to spearhead the American Recovery and Reinvestment Act, which passed out of the House of Representative today. The Act is clearly going to provide billions of dollars to help get America's economy back on track and provide help to families. No one has worked harder than Congressman Obey to provide the badly needed resources to state governments, but even importantly will infuse billions of dollars to help put people back to work. He is walking a thirty-thousand foot tightrope, balancing on one shoulder the needs of the American public and the desire to put four million people to work on one hand and on the other 534 people who have different views on how to do it. Senator Jauch is grateful for his leadership.
Senator Robson, with unanimous consent, asked that when the Senate adjourn, it do so in honor of our new President, President Barack Obama, who has inspired so many and challenged us all.
__________________
S39
President Risser appointed Senators Sullivan and Hopper to escort his excellency, the Governor, to the Joint Covention.
Senator Decker, with unanimous consent, asked that the Senate recess until 6:30 P.M., upon the rising of the Joint Convention.
2:40 P.M.
__________________
6:30 P.M.
The Senate reconvened.
President Risser in the chair.
President Risser, with unanimous consent, asked that the Senate recess for the purpose of awaiting the Governor's State of the State Address in Joint Convention in the Assembly Chambers at 7:00 P.M.
The Senate stood recessed.
6:35 P.M.
__________________
The Senate proceeded in a body to the Assembly Chamber to meet in Joint Convention to receive the State of the State Message.
__________________
6:53 P.M.
Senate President Risser in the chair.
The Committee to wait upon the Governor appeared with his excellency the Governor, who delivered his message as follows:
__________________
"Speaker Sheridan, Speaker Pro Tem Staskunas, President Risser, Majority Leader Decker, Minority Leader Fitzgerald, Minority Leader Fitzgerald, Supreme Court Justices, Constitutional Officers, tribal leaders, members of the Cabinet, distinguished guests, members of the Legislature, and fellow citizens of Wisconsin,
We meet tonight at a time of great difficulty in this country, which has been felt deeply in this state. A Wall Street meltdown as a result of eight years of bad economic policy and too many risky schemes has led to a national economic crisis we haven't seen in decades.
Credit has frozen. Markets have plunged. Consumer confidence has hit all-time lows. Retirement accounts have been cut in half.
And most importantly, unemployment has soared. Employers big and small have cut back. Even our flagship companies, companies that were doing well as recently as August, companies like Harley-Davidson, Kohler, Quadgraphics, and GE, have been forced to lay people off. Many more people are living anxiously, uncertain whether they will lose their jobs in the coming weeks and months.
Wisconsin, the state of our state, like the state of our union, is tough. But the state of our character and the state of our resolve is even tougher.
As difficult as the realities are before us, I know who we are. I know we can work together, meet any challenge and come through stronger than ever.
Some of you are just taking office. Congratulations on your election and welcome to public service. There were probably easier times you could have come into your new jobs. But tough times are opportunities to show who we are.
When I was first elected governor, I inherited a $3.2 billion budget deficit. My own party did not have control of either house of the Legislature - which meant, among other things, that more people remained seated through speeches like this one. But, in the spirit of Wisconsin cooperation, I was able to work with many of you here to solve our financial challenges.
We showed our commitment to Wisconsin's working families. We took on the deficit without raising taxes. We did it without damaging schools, or giving up on those who needed medical care.It wasn't easy. Everything had to be on the table for cuts. But we were able to move forward in ways that mattered most for middle class families. We went on to cut taxes by making health care insurance premiums tax deductible. We expanded the deductions for tuition and childcare payments. We eliminated the tax on Social Security. We held hard limits on property taxes. And we moved Wisconsin off the list of the top 10 taxing states for the first time in decades.
We showed our commitment to Wisconsin's working families. We took on the deficit without raising taxes. We did it without damaging schools, or giving up on those who needed medical care.It wasn't easy. Everything had to be on the table for cuts. But we were able to move forward in ways that mattered most for middle class families. We went on to cut taxes by making health care insurance premiums tax deductible. We expanded the deductions for tuition and childcare payments. We eliminated the tax on Social Security. We held hard limits on property taxes. And we moved Wisconsin off the list of the top 10 taxing states for the first time in decades.
When I stood before you last year at this time, I warned of an uncertain economy. But through most of 2008, even though our country had officially entered a recession, we were doing all right - not great, but all right. Despite continued bad economic policy from Washington, here in Wisconsin we were seeing job growth. Our exports were growing to nearly double what they were six years ago. Our high-tech economy was really taking off. Agriculture was strong.
And in state government, we effectively dealt with the demands of the sluggish national economy. In a bill I signed last spring, I kept the state's commitment to schools, but cut state spending by an additional $270 million. I refused to raise taxes, but I directed more money into the state's reserve funds.
If our country's economy had continued on that course, those kinds of steps would have seen us through. We were planning conservatively for a slow, sluggish economy to continue.
S40
Unfortunately, no one saw how hard this country would be hit in the fall. What the national economy dealt us in September was in many ways unprecedented. And the effects continue to be shocking. We saw leading businesses announce 71,000 jobs cut in the United States and around the world on Monday alone. Giants like Caterpillar announced 20,000 jobs cut. 8,000 jobs were lost at Sprint and 7,000 at Home Depot.
I want to share with you some charts that illustrate the problem we are facing. First, you can see the job losses our country and our state have had. In the last year, the United States has lost about 2.8 million jobs and the national unemployment rate has gone to 7.1 percent. Wisconsin's unemployment isn't as bad, but it follows the same pattern. From December 2007 to December 2008, the state lost 62,600 jobs and the unemployment rate went up to 5.8 percent.
The second chart shows what has happened to consumer spending and sales tax revenue. When people lose jobs and lose confidence, spending goes down. In the fall, it happened dramatically, as you can see.
Here's what that means for states across the country: almost all are facing severe budget gaps. The explanation is pretty simple: almost all states have to pass balanced budgets. So when people lose their jobs and stop buying things, and the demand for state services go up, states have deficits. And that's the case almost everywhere.
The final chart shows how the state deficit was created by the economic crisis. The first bar shows our projected revenue over the next two years if the country had continued the pace it had been on for the last five years. The second bar shows the conservative, or even pessimistic, outlook that we had used to budget. In either of those cases, we would not have the budget challenge we face today. The third bar shows our revenue projections after the economic collapse. That revenue projection is actually below our current revenue levels, and many fear it will get worse.
Because of this situation, Wisconsin is facing a budget gap that had been estimated at $5.4 billion, or 17 percent of our biennial budget. That figure, unfortunately, is going to grow with the latest data.States everywhere are looking at similar pictures, and the responses are dramatic. The deficits are threatening the most essential functions of state government. We see major cuts proposed to education, to health care and to local government services. Washington State has already cut 12,000 people from its basic health care program for low income adults and is proposing an additional 42 percent reduction. California is bracing to run out of cash in March, and is considering IOUs to cover its obligations. In Nevada, the governor is asking for a 36 percent cut to higher education funding. In Utah, they are talking about decreasing the number of school days and laying teachers off. In state after state, the stories are the same. Everyone has tough choices to make.
We've taken many steps in Wisconsin so far to address this crisis, including $500 million in spending cuts this year, and many more are to come. As soon as the magnitude of this deficit became clear, I said everything would be on the table for cuts and I ordered state government to find savings wherever it could. I halted employee bonuses, put the brakes on grants and started auctioning 500 vehicles. I am working across state borders and political parties with Minnesota Gov. Tim Pawlenty to make government more efficient and effective.
But the economic crisis is a problem bigger than any state. Early on, I went to Washington to work with President Obama's team and key members of Congress. It was obvious that without federal help, states would face the choice between massive cuts in education or massive tax increases. Without federal action, states could be left standing in the way of our nation's recovery.
This is a national problem, so I started working closely with a bipartisan group of governors across the country to call attention to the unique situation states are in. We worked to be sure everyone knew what state governments must do. Most of our budgets go toward education, health care and basic needs like police and fire protection. They pay for jobs at nursing homes, schools and police departments.
Washington recognized what states are facing. I want to thank Wisconsin's Congressional delegation. And I especially want to recognize Congressman Dave Obey, chairman of the House Appropriations Committee.
Congressman Obey and President Obama recognized early on that states must be key partners in moving this country forward. It's clear a major stimulus package is going to pass. And the American Recovery and Reinvestment Act is going to get people to work on new projects that add value to our economy.
One of the major responsibilities we will have in the coming weeks and months is being swift and able partners in the recovery plan. I have created the Wisconsin Office of Recovery and Reinvestment, and I am pleased to have one of Wisconsin's leading executives - Gary Wolter, the CEO of MG&E heading it up. We are sure that our partnership with the federal government in moving this country forward will be effective and responsible.
We can repair our roads and bridges; we can raise the next buildings for groundbreaking research. We can fix crumbling schools, find new sources of energy and clean our water. We can improve our electrical grid, broaden our internet lines and build rail lines. We will become more competitive and efficient in the long run and put people to work today.
But the stimulus package is not the answer to all our challenges. It will not solve the state's deficit. And as we move toward recovery, we will do so facing tough decisions in this state. As hard as the federal government is working with us, this will be a time of sacrifice. It is a time when we will be responsible with what we have. This is not a time for big new programs.None of what's ahead will be easy. What isn't needed will be cut. And unfortunately, some of what is needed will be cut, too. But that is tough, honest work. Staying even is the new increase, and my priorities are no secret: Good schools for our children, affordable and available health care, police and fire protection for our communities - these are basic expectations people have of their government.
A second grader is not going to be able to come back when the economy is better and pick up where she left off if we fail her today. An older person can not check out of a nursing home and come back in a few years. There are basic needs our state has always met, and just as our predecessors met them in the most difficult times, we have a responsibility to meet them today. My parents were educated in Wisconsin schools that were kept strong through the Great Depression. We can demonstrate that same resolve again today.
It is a difficult time. But these are the moments of challenge and even opportunity. They take the measure of who we are. They force us to face hard truths and make gut-wrenching decisions. They help us clarify what is most important to us. They leave us no easy way out.
S41
Next month, I will stand before you to deliver a budget that will determine our course for the next two years. And I am not going to say education funding is off limits. But I will not allow cuts that ruin the quality of our classrooms or make universities and technical colleges out of reach for working families. I am not going to say we won't make reductions in Medicaid, but I will not allow cuts to undermine our ability to get a sick kid to a doctor. We may have to do more with less, but I will not allow this state to abandon its efforts to create jobs and make Wisconsin a great place to do business.
And let me be clear about what we must never lose sight of. For many, the most serious consequence of the economic collapse is not the budget deficit Wisconsin or any other state faces. The worst consequence of our country's economic condition is that, through no fault of their own, many of our best workers - here and across the country - have lost their jobs. It means that highly skilled men and women who months before were the foundation of leading companies are suddenly unemployed.
Behind unemployment numbers are real families who have built their lives around jobs that are now gone.
This year, I met with many of the Janesville autoworkers who had built their company's best product at its best manufacturing plant. They were, for decades, the heart of the company they worked for. Now, they are some of the people we have to think of first as we rebuild this economy.
Let me introduce you to four Janesville assembly plant workers - four workers our economy needs: Lenette Holden, Jim Koeberl, Todd Brien and Leo Carillo.
We can not squander the abilities of our most valuable workers as we wait for the economy to get better. We need to rebuild strong Wisconsin businesses that can put people like Lenette, Jim, Todd and Leo to work.
For us to succeed, we have to find ways to innovate, and to do more with what we have. We can never doubt that great possibility is all around us.
I want to recognize someone who exemplifies that spirit, someone who shows how creativity and hard work can provide us with more than we thought possible. I am going to introduce you to someone who saw urban Milwaukee as an unlikely center for agriculture - someone who found a way to raise fish and fresh vegetables in a home-made ecosystem alive on the north side of Milwaukee.Here is the latest Catherine T. MacArthur Foundation "genius grant" winner - a professional basketball player before he hit the big time - Will Allen, CEO of Growing Power.
Will was able to do incredible things with almost no resources.
