36. Inclusion of an Institutional Pharmacist on the Pharmacy Examining Board
VETERANS AFFAIRS
37. Regional Veterans Claims and Benefits Coordinators
38. Veterans Outreach Initiative
39. Veterans Emergency Aid Pilot Program
F. TAX, FINANCE AND LOCAL GOVERNMENT
ADMINISTRATION
1. Division of Gaming – License Requirements for Simulcast Racing
BUDGET MANAGEMENT
2. Budget Stabilization Fund, Cash Building Projects Fund and "Buy Down" of School Aid Payment Shift
3. Statutory Minimum Balance
EMPLOYMENT RELATIONS COMMISSION
4. Qualified Economic Offer
Department of Financial Institutions
5. Regulation of Rent-to-Own Agreements
GENERAL FUND TAXES
6. Internal Revenue Code Update
7. Sales Tax Exemption for Water Slides
8. Individual Income Tax Exclusion for Military Pensions
9. Estate Tax
10. Artistic Endowment Foundation Tax Credits
11. Baseball Park District Income Tax Checkoff
PUBLIC SERVICE COMMISSION
12. Promulgation of Rules to Facilitate the Production of Distributed Energy
13. Technical Veto – Telecommunications Regulation
14. Voice Mail for the Homeless
15. Wisconsin Advanced Telecommunications Foundation Contributions
DEPARTMENT OF REVENUE
16. Volunteer Income Tax Assistance Program
SHARED REVENUE AND TAX RELIEF
17. Municipal Shared Revenue Payments
18. Exclude Lafayette County from Maximum Constraint
19. Special Charges for Municipal Services
20. Automatic Teller Machines
21. Area Cooperation Compacts
22. Annexations Creating Town Islands
23. Classification of Certain Property as Swamp and Waste
State Treasurer
24. Changes in Statutory Appropriations
TOBACCO SECURITIZATION PERMANENT ENDOWMENT FUND
25. Technical Veto to Remove Erroneous Cross-Reference
TRIBAL GAMING ALLOCATIONS
26. Health and Family Services – Minority Health Program
27. Office of Justice Assistance – County-Tribal Law Enforcement Grants
28. Natural Resources – Trout Management
29. Natural Resources – Wild Crane Study
30. Tourism – Kickapoo Valley Reserve, Law Enforcement Services
31. University of Wisconsin-Extension – Grazing Education Grants
32. Workforce Development – Trade Masters Pilot Program
A.
EDUCATION AND TRAINING
HIGHER EDUCATIONAL AIDS BOARD
1.
Minority Undergraduate Retention Grant Program
Section 1382r
This section amends 39.44 (1) (b) by expanding the eligibility requirement for the Minority Undergraduate Retention Grants program to include freshmen.
I am vetoing this section because the original intent of this program is to retain students who are making satisfactory progress at postsecondary institutions. Expanding the program to freshmen significantly alters this intent and is likely to reduce grants to those students who are meeting the original intent of the program. Furthermore, freshmen students are eligible to receive grants from the Wisconsin Higher Education Grant and Tuition Grant programs, as well as the federal Pell Grant program.
2.
Study on State Payment of Two Years of Postsecondary Education
Section 9101 (21g)
This section would require the Department of Administration to study the development and implementation of a tuition grant program that would pay the cost of two years of postsecondary education.
I am vetoing this provision because the Legislature does not need to create a statutory mandate to study this issue. The Legislature has the authority to direct the Joint Legislative Council, Legislative Fiscal Bureau or the Legislative Audit Bureau to undertake such a study.
3.
Academic Excellence Scholarships for International Baccalaureate Degree Students
Section 1381m
S293
This provision would permit local school boards and the governing board of each private high school to award an Academic Excellence Scholarship to the senior with the highest grade point average in the International Baccalaureate Degree program.
I am vetoing this provision because it could potentially deny Academic Excellence Scholarships to students who have higher grade point averages in demanding curricula other than the International Baccalaureate Degree program. The intent of the scholarships is to reward students with the highest grade point average in their respective schools. Although I support participation in the International Baccalaureate Degree program and recognize its challenging curriculum, I do not believe it is fair to single out one program in state statute for favored treatment.
MEDICAL COLLEGE OF WISCONSIN
4.
Domestic Abuse Training Requirements
Section 1379t
This provision requires the Medical College of Wisconsin to increase the amount of domestic abuse training it provides to medical students.
I am vetoing this provision because the Medical College of Wisconsin already provides domestic abuse training to medical students. The provision also does not define increased training or demonstrate that current training by the Medical College is inadequate. This provision could have an unintended impact on curriculum development that could raise accreditation concerns.
In addition, the provision was apparently added to the budget bill without the involvement of the Wisconsin Coalition Against Domestic Violence, the Wisconsin Women's Health Foundation or the Department of Health and Family Services. These organizations are currently involved in a two-and-one-half year project to review domestic violence standards and protocols. It is appropriate to wait until the project is completed before considering changes to existing training efforts.
PUBLIC INSTRUCTION
5.
Delay of $115,000,000 of School Aids to July 2003
These sections delay $115,000,000 of school aids that should be paid in fiscal year 2002-03 until fiscal year 2003-04. In addition, $700,000 GPR is appropriated for interest due on the delayed aid payment.
I am vetoing these provisions because the Legislature cannot increase the amount of delayed payments without placing the state's financial future at considerable risk. Previous budgets have delayed over $940,000,000 in payments to local governments to allow for more spending. Further increasing the amount of delayed payments weakens our standing in the eyes of financial markets, increasing the potential for higher interest costs to state and local governments due to downgrading of the creditworthiness of the state's general obligation bonds.
The payment delay reflects an inability to prioritize spending. It conceals an unwillingness to fund two-thirds of local school costs within the state's fiscal year in order to allow more spending in other areas. As difficult as the choices in this budget have been, future budget choices will be much tougher if the delay is accepted.
We should not worsen our financial fundamentals by accepting this payment shift. According to generally accepted accounting principles, Wisconsin already has the worst budget imbalance in the country. The general fund must now regularly borrow hundreds of millions of dollars for operations just to pay bills on time. We have reached the point where further payment shifts place the state's finances at extreme risk.
Jeopardizing our financial future does a disservice to Wisconsin's local governments and its citizens. Delaying decisions on the tough choices only makes those choices more difficult. This puts those dependent on state government at even greater risk in the future. All are better served by truth-in-budgeting and ensuring the state can pay its bills on time.
While I cannot use my veto authority to increase school aid, I am still committed to meeting two-thirds of local school costs. Under current law, the Joint Committee on Finance is required to set the school aid funding level for fiscal year 2002-03 by June 30, 2002. I remain convinced that the state's economy will show increased vigor in the months ahead. However, in the event that revenues do not change from current estimates, the significant savings generated by my vetoes provides sufficient revenues for the Joint Committee on Finance to buy back the school aid payment delay.
6.
Revenue Limit Flexibility
This provision allows any school board, on a two-thirds vote, to increase its allowable revenue per student above the amount that would be permitted under current law. The provision also includes an adjustment linking the maximum size of the allowable increase, measured on a percentage basis, to a district's equalized property value per pupil; the lower the property value, the larger the increase. On a statewide basis, the average increase would equal 0.78 percent of the allowable revenue per student.
S294
I am vetoing this provision because it is likely to be inadequately funded, and it will have a negative effect on the state's overall fiscal condition. The Legislature included $15,000,000 in fiscal year 2001-02 and $30,000,000 in fiscal year 2002-03 to support this provision. The increase is based on the assumption that 37.5 percent of the available revenue limit flexibility will be used in 2001-02 and 75 percent in 2002-03. However, if the school boards representing the seventeen districts receiving the largest allowable increases make full use of their flexibility, the $15,000,000 provided in 2001-02 to cover the state's two-thirds share will be exceeded. Any shortfall could increase local property taxes. If all districts make full use of the available flexibility in both years, the state would fall $33,000,000 short of its commitment to fund two-thirds of the added spending. In addition, districts already have the authority to exceed limits through the referendum process.
This budget will include a $53,450,000 increase in funding for the Student Achievement Guarantee in Education (SAGE) program, which will greatly expand the state's efforts to reduce class size in grades kindergarten through three. This will bring total funding of the SAGE program to $95,029,600 in the 2002-03 school year. In addition, my veto of the provision that would have reduced funding for four-year-old kindergarten programs (see Department of Public Instruction, Item #7) will put more state resources into this important early learning program. Furthermore, the per student inflationary increases allowed under current law will add almost $600,000,000 in state and local school spending over the biennium. School districts will also be receiving an estimated $84,000,000 in credits under a premium holiday related to unfunded accrued liabilities within the Wisconsin Retirement System, authorized in
1999 Wisconsin Act 11. In addition, I have approved funding to allow small districts serving large geographic areas to exceed the allowable school revenue limits.
The most recent national survey of school spending by
Education Week magazine ranks Wisconsin sixth in spending per student. Clearly, this budget increases the state's already strong commitment to elementary and secondary education. Funding additional revenue limit flexibility, beyond these commitments, would severely strain the state's resources and increase local property taxes. By lining out the Department of Public Instruction's s.
20.255 (2) (ac) appropriation for general equalization aids and writing in a smaller amount that deletes $15,000,000 GPR in fiscal year 2001-02 and $16,000,000 in fiscal year 2002-03, I am partially vetoing the part of the bill which funds this provision. This partial veto retains $14,000,000 in fiscal year 2002-03 to fund the cost of my veto of changes to the four-year-old kindergarten membership count (see Department of Public Instruction, Item #7). I am also requesting the Department of Administration secretary not to allot these funds.
7.
Four-Year-Old Kindergarten Membership
Sections 2749m, 2761d, 2761g, 2764m, 2779 [as it relates to the amount of any revenue limit increase], 2788m, 2798L, 9140 (10f) and 9340 (8h)
This provision reduces state funding for four-year-old kindergarten programs, beginning in the 2002-03 school year, by reducing the maximum full-time equivalent (FTE) enrollment count that is eligible for state aid from 0.5 FTE to 0.3 FTE per enrolled pupil in a regular program and from 0.6 FTE to 0.4 FTE in an expanded program. The provision also includes a revenue limit exemption that would authorize school boards to increase local property taxes to offset the loss in state support.
I am vetoing this provision to restore the current level of state support for four-year-old kindergarten. Research has shown that early education is an important factor in academic achievement as students progress through the educational system. This is especially true for pupils from economically disadvantaged backgrounds. As we expect our children to learn more, we need to give them more opportunities to learn. Four-year-old kindergarten programs can serve as a valuable companion to the Student Achievement Guarantee in Education (SAGE) program, which reduces class size in grades kindergarten through three. Working together these programs can provide children with a solid foundation for continued achievement.
Under a separate veto of the revenue limit flexibility provision (see Department of Public Instruction, Item #6), I have also reversed the $14,000,000 reduction in general equalization aids related to this provision. By deleting only $16,000,000 of the $30,000,000 included by the Legislature to fund the revenue limit flexibility provision in fiscal year 2002-03, $14,000,000 is available to maintain the current level of support for four-year-old kindergarten programs.
