All of these measures are important to citizens, and I am pleased they have been adopted. It should be noted that the tax reductions and improvements in services are made possible by an economy that has succeeded as never before. Our record low 2.4% unemployment, expanding numbers of manufacturing jobs, and expansions of exports and high-tech endeavors have been achieved in part as a result of state government policies. We have encouraged businesses to locate and expand in Wisconsin, cut taxes, and implemented programs that encourage people to live independently. This bill continues those policies.
I have a special concern with one area in the bill. The bill provides that 100% of any projected improvement to the net general fund balance for both years of the biennium beyond $20 million, as certified by the Legislative Fiscal Bureau by September 4, 1998, is to be dedicated to expanding the property tax rent credit for 1998, with this change to be continued in future years. The Department of Revenue must propose how this tax reduction is to be structured and the proposal would need the approval of the Joint Committee on Finance but not of the entire Legislature.
Signing this provision in its entirety is not good public policy. Ideally, decisions on major permanent changes in tax policy should be made by the full Legislature in the biennial budget or in budget adjustment bills, when all other tax and spending issues can be addressed. To make a permanent tax policy change contingent on a possible surplus without regard to other budget and tax issues is short-sighted. It is also not prudent or appropriate to use revenues received over two years to fund a permanent change to our ongoing annual commitments. I have therefore partially vetoed this provision to make the change in the property tax rent credit one-time and not permanent and to provide that the increase in the credit for 1998 be funded with the increase in the balance for fiscal year 1997-98, with a maximum change of $125 million. Permanent changes to these and other tax provisions should be considered by the entire Legislature in future budgets. Under the bill as I am signing it, the property tax rent credit is likely to be increased by approximately 50%, a very generous tax reduction that I am pleased to sign into law.
I commend the leadership of both the Assembly and the Senate for providing bipartisan support for this bill. With the help of the Legislature, Wisconsin continues to build an even better future for our citizens.
Respectfully submitted,
Tommy G. Thompson
Governor
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VETO MESSAGE
TABLE OF CONTENTS
A. EDUCATION AND TRAINING
Public instruction
1. National Teacher Certification Program
2. Professional Teaching Permits
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B. ENVIRONMENTAL AND COMMERCIAL RESOURCES
Agriculture, Trade and Consumer Protection
1. Fish Farming
2. Soil and Water Resource Management Engineering Positions
Natural Resources
3. Nonpoint Source Water Pollution Abatement Program
4. Landfill Remediation Study
5. Brownfields Fee for Petroleum Environmental Cleanup Fund Administration (PECFA) Related Services
Tourism
6. Marketing Appropriation
Transportation
7. License Plate Reissuance
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C. HUMAN RESOURCES
Health and Family Services
1. Milwaukee County Child Welfare Services
2. Kinship Care
3. Community Options Program
4. Caretaker Supplement
5. Provider Assessments
Insurance
6. Specialist Physicians
7. Prior Authorization for Diagnostic Procedures
Workforce Development
8. Wage Claim Liens
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D. JUSTICE
Justice
1. Governor's Appointment of Special Counsel
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E. TAX, FINANCE AND LOCAL GOVERNMENT
General Fund Taxes -- Individual Income Tax
1. Part-Year and Nonresident Deductions
2. Property Tax Rent Credit
General Fund Taxes -- Sales and Excise Tax
3. Sales Tax Exemption for Auction Sales
Revenue
4. Delinquent Tax Warrant
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VETO ITEMS
A. EDUCATION AND TRAINING
Public Instruction
1. National Teacher Certification Program
Section 361
This section establishes a pilot program to provide annual payments to teachers who earn certification from the National Board for Professional Teaching Standards (NBPTS).
I am partially vetoing this section by: (1) deleting the provision limiting program participation to 20 teachers; and (2) eliminating annual $2,500 state grants to teachers beyond the 1999-01 biennium. These vetoes will permit an unlimited number of teachers to receive a state grant if they earn NBPTS certification and will provide each teacher earning NBPTS certification with $2,000 in 1999-00 and $2,500 in 2000-01. The state's role in national teacher certification should be to encourage as many teachers as possible to seek certification rather than to provide an ongoing bonus payment to a select few.
I recognize that state incentives related to this program will need periodic review. Further changes to this program can be considered in the 1999-01 biennial budget to permit additional teachers to continue to receive grants beyond those who earn certification by July 1, 2000. In addition, I encourage all school districts to also provide financial and other incentives to teachers who are able to meet the NBPTS' rigorous standards.
2. Professional Teaching Permits
Sections 362c and 362p
These provisions would expand the fields covered by the alternative teacher training program to include the subjects of music, art, foreign language and computer science. In addition, these provisions would delete the following requirements related to the alternative teacher training program: (1) that the training program be conducted in the summer; (2) that applicants would need to pass the national teacher's exam before applying to the Department of Public Instruction (DPI), and instead, require that applicants demonstrate competency in their subject area before the State Superintendent; and (3) that a licensed teacher may supervise no more than one person holding an alternative teaching permit. These sections would also specify that an alternative teaching permit would be renewable for five years and require DPI to renew a permit or issue a permit holder a regular teaching license if the school board employing that person certifies to DPI that the person is a successful teacher.
I am partially vetoing the section requiring DPI to renew a permit or issue a regular teacher license at the direction of a local school board. Since DPI is the legal entity responsible for issuing teacher licenses and permits, the department should retain the final authority on renewal decisions.
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B. ENVIRONMENTAL AND COMMERCIAL RESOURCES
Agriculture, Trade and Consumer Protection
1. Fish Farming
Section 9236 (2c)
Section 9236 (2c) deletes 5.0 GPR FTE positions related to fisheries management and habitat protection from the Department of Natural Resources (DNR), and decreases the appropriation amount under s.
20.370 (4) (ma) by $265,000 GPR for fiscal year 1998-99. An equal increase in positions and funding is provided to the Department of Agriculture, Trade and Consumer Protection (DATCP) under section 9204 (1c) to perform duties related to fish farming for which responsibility was transferred from DNR to DATCP under
1997 Act 27.
I am vetoing section 9236 (2c) to restore the positions and funding to DNR because further consideration of the number of positions and amount of funding needed by both DNR and DATCP is necessary. I am also requesting the Department of Administration Secretary to take administrative action to freeze two of the five positions provided to DATCP and two of the five positions restored to DNR. Based on a review of program needs and appropriate level of fee supported activities, any further changes to position levels and funding in the two agencies can be addressed in the 1999-01 biennial budget.
2. Soil and Water Resource Management Engineering Positions
Section 9204 (1wx) and (1wy)
These provisions appropriate $100,700 GPR in fiscal year 1998-99 and authorize 2.0 GPR FTE positions in the Department of Agriculture, Trade and Consumer Protection to provide training, consultation and oversight to county conservation staff. The provisions also decrease funding for the Soil and Water Resource Management Grant Program by $100,700 GPR in fiscal year 1997-98.
I am vetoing these provisions because a decision to create and fund 2.0 GPR FTE positions should be made in the context of other priorities during development of the 1999-01 biennial budget. The Soil and Water Resource Management Program received an additional $2,000,000 GPR in fiscal year 1997-98 in
1997 Act 27. The department has the authority to use a portion of that additional funding to contract with a public or private entity to supply necessary services to county conservation staff.
Natural Resources
3. Nonpoint Source Water Pollution Abatement Program
Sections 9131 (1p) and 9136 (2v)
Section 9131 (1p) requests the Joint Legislative Audit Committee to direct the Legislative Audit Bureau to perform a financial audit of the Nonpoint Source Water Pollution Abatement Program and the long-term state financial obligations related to the program. The Legislative Audit Bureau must file its report by January 1, 2000. Section 9136 (2v) provides up to an additional $33,000 for cost-share grants to landowners in the Sugar-Honey Creek priority watershed project in Racine and Walworth counties. The additional funding must be provided by June 30, 1999.
I am vetoing the audit request because it is unnecessary. The Nonpoint Source Water Pollution Abatement Program is in the preliminary stages of implementing the restructuring adopted in
1997 Act 27. This restructuring is being done in response to several audits of the program that have been completed in recent years. Another audit of the program is premature and could slow efforts to implement necessary changes.
I am also vetoing the Sugar-Honey Creek earmark because it diverts funding from other priority watershed projects. These projects are implemented over several years. At the direction of the Legislature, the Department of Natural Resources has been working to allocate funding on the basis of available revenue. I am concerned that a funding earmark of this nature will undermine attempts to bring Nonpoint Source Pollution Abatement Program expenditures in line with available funding.
4. Landfill Remediation Study
Section 9136 (2d)
This provision requires the Department of Natural Resources (DNR) to use existing resources to contract for a study identifying all closed landfills and the estimated cost of their remediation. In addition, DNR must identify potential funding mechanisms for these remediation projects.
I am vetoing this provision because it does not address the problems of landfill cleanup in a comprehensive manner. Furthermore, it directs the DNR to use existing resources to identify all closed landfills and remediation alternatives. In order to address the issue in an effective manner, funds would be needed that the department does not currently have available. However, I do recognize the importance of this issue and request the department to develop approaches for identifying, assessing, and cleaning up closed landfills in a cost-effective and balanced manner.
5. Brownfields Fee for Petroleum Environmental Cleanup Fund Administration (PECFA) Related Services
Sections 486p, 9136 (1c) and 9236 (3g)
