State government operations will absorb the largest share of the belt-tightening with an 11.5 percent reduction in spending. Incidentally, the Governor's Office budget is reduced 16.5 percent.
The Budget Reform Act reduces the Department of Corrections budget by 6 percent. This was a difficult decision, and the cuts are deep. But I stress that we will continue to keep Wisconsin safe from the criminals who want to ruin our quality of life.
New institutions that were authorized in the budget must be delayed. While elimination of out-of-state contract beds remains a priority, eliminating the budget deficit must come first.
The Budget Reform Act also will reduce the University of Wisconsin and Technical College System budgets by 4.5 percent each. I don't want these reductions passed on to students, so tuition increases above the already-approved 10 percent level must be passed by the Legislature's Joint Finance Committee.
The final component is a 4 percent reduction to local government budgets in calendar year 2002.
These are tough decisions, but they ARE manageable, and more importantly, the right thing to do. When implemented, they will set the stage for an even greater and more vibrant Wisconsin.
My plan does contain a warning, however. Because we are reigning in spending, you are going to hear a new kind of defeatism from the Big Spenders who believe government spending can only go up, never down.
Have you heard the term "Buyer, Beware?" I offer a slightly different twist: "Taxpayer, Beware!" the spenders will make claims of big property tax increases and the elimination of vital services.
But don't be fooled by their rhetoric. Don't let the defeatists defeat you.
When you hear the complaints of Big Spenders, realize that my Budget Reform Act places strict property tax limits on local governments. Spending reductions will not mean property tax increases. Let me repeat, because this is critical: my Budget Reform Act places strict property tax limits on local governments. Spending reductions will not mean property tax increases.
And let me say this to the Big Spenders: If you can't live without a property tax increase, take your case directly to the taxpayers with a referendum. Let the working people decide.
When you hear the complaints of Big Spenders, recognize that I am not asking local government to do anything different than what state government is expected to do - and what families and businesses have been doing for months: Live within their means.
State government operations budgets are being reduced 11.5 percent, and we will continue to deliver essential services. Local government budgets are being reduced only a third of what state government is absorbing… they should not have to stop essential services like fire and police protection and garbage collection. To the contrary. My Budget Reform Act includes language that directs local governments to protect the health and safety of our citizens.
Every taxpayer fully expects local government to handle these reductions responsibly and continue to provide essential services.
The Budget Reform Act balances the budget for this biennium, but I will not stop there. The budget shortfall allows us to look at costly decisions that we can no longer afford. We must learn from this, or we will be right back in a financial predicament next year. So today, I am forwarding to you a bold plan that completely restructures the state and local financial partnership… a plan that forces a major examination of how local governments are funded, organized and provide services.
Here's what I'm talking about.
Within a 10-mile radius of downtown Appleton, there are over 50 units of government - including 3 counties… 4 cities… 5 villages… 8 school districts
… 16 towns… and 19 sanitary districts.
Who do you suppose is paying for all this? The hard-working families of Appleton are footing this bill for this overlap.
The Kettl Commission set the stage for changing the state and local government relationship, but many circumstances prevented the Commission report from being adopted. The greatest barrier to the Kettl Commission recommendations was lack of urgency. We just didn't have to do it. We could afford to do everything. We could afford more government. We could afford to be the third-highest tax state. We could afford to have too much government.
Well, fellow Wisconsinites, we can't afford it anymore.
My Budget Reform Act takes Kettl from debate to ACTION by recommending that we:
∅ Phase out the current shared revenue program over the next three years
∅ Borrow $794 million from tobacco endowment revenues as a bridge only to replace a portion of shared revenue in the transition period
∅ develop A REPAYMENT SCHEDULE FOR THE ENDOWMENT
∅ Establish within my Administration a mandate appeals process for local governments
∅ Create a Blue Ribbon Commission on local government finances to review local government spending, delivery of services, state mandates and local revenue sources.
The goal of the commission is accountability, efficiency and the best return for the taxpayers' dollar.
Proceeds from the sale of tobacco revenue bonds provide a unique opportunity to help in the transition to a new relationship between local government and the citizens they serve.
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The spenders will say there is no support for cutting local government. If that is your argument, then I ask: Is there support for breaking promises to our schools that will result in larger class sizes and reduced services for special education?
Is there support for turning our backs on your most vulnerable neighbors - the elderly, the disabled and the poor who covet dignity and independence?
Is there support in your community for increasing taxes to feed a government that spends too much as it is?
While funds are short, I realize there will not be a shortage of critics of my Budget Reform Act. I welcome the discussion, but I also say this to the Big Spenders who want to spend more money: Tell me specifically where you will get that money. A critic without a solution is of no value in this debate.
My Budget Reform Act is the right thing to do. My Budget Reform Act is fiscally responsible, and more importantly, it is right for Wisconsin.
This is a pivotal time in Wisconsin's fiscal history, and I urge this Legislature to act quickly and without hesitation for the future of Wisconsin's families. There is much work to be done.
Join me in being creative, determined and unafraid to face the critics. Join me in answering the critics who say it can't be done. Join me in protecting the taxpayers, not the Big Spenders.
The people we represent are ready to chart a new course. They want a government that serves them well - not a government that obstructs common-sense solutions.
They want a government that will validate their trust, not engage in petty politics and spread distrust.
I will meet this great challenge…. I will reach beyond the commonplace and not fall short for lack of courage.
Working together, we will reduce government spending at every level and begin living within our mean….
We will bring the most sweeping, fundamental reforms in our government structure since Wisconsin became a state…
And we will do this WITHOUT RAISING TAXES!
Thank you.
11:45 A.M.
The Senate reconvened.
Senator Risser in the chair.
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Read and referred:
Senate Joint Resolution 55
Relating to: recognizing and congratulating Terry Mulcahy for his long service to the people of the state of Wisconsin and the United States of America.
By
Senators
Panzer, S. Fitzgerald, Zien, Rosenzweig, Darling, Kanavas, Breske, Ellis, Welch, Grobschmidt, Huelsman, Jauch, Erpenbach, A. Lasee, Risser, Cowles, Harsdorf, Roessler, Lazich and Schultz; cosponsored by Representatives Jensen, Stone, Petrowski, McCormick, Ryba, Kestell, Rhoades, Walker, Gronemus, Gunderson, Lippert, Black, Jeskewitz, Bies, Hahn, Ladwig, Olsen, Pettis, Musser, Urban, Plouff, Starzyk, Turner, Owens, Plale, Miller, Coggs, J. Lehman, Lassa and Vrakas.
To committee on Senate Organization.
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Read first time and referred:
Senate Bill 393
Relating to: electric personal assistive mobility devices, granting rule-making authority, and providing penalties.
By
Senator
Breske
; cosponsored by Representative Stone
.
To committee on Insurance, Tourism, and Transportation.
Senate Bill 394
Relating to: withholding from public inspection information about public utility security.
By
Senators
Cowles, M. Meyer, A. Lasee, Huelsman and Darling; cosponsored by Representatives Huebsch, Duff, Meyerhofer, Hahn, Krawczyk, Olsen, Musser, M. Lehman, Hines, Lassa, Vrakas, Sykora and Ott.
To committee on Health, Utilities, Veterans and Military Affairs.
Senate Bill 395
Relating to: temporary supplemental unemployment insurance benefits and certain other changes to the unemployment insurance law.
By
Senators
Hansen, A. Lasee, Jauch, Plache, Baumgart, Robson, Wirch, Erpenbach, Breske, M. Meyer, Burke, Grobschmidt, Moen, Decker, Shibilski, George, Moore, Risser and Chvala; cosponsored by Representatives Hundertmark and Turner.
To committee on Labor and Agriculture.
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State of Wisconsin
Ethics Board
January 22, 2002
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 2001 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us/
Forester, John D Wisconsin Council for Administrators of Special Services
Forester, John D Wisconsin Association of School District Administrators
Forester, John D Wisconsin Association of School Business Officials
Forester, John D Association of Wisconsin School Administrators
Kammer, Peter EDS - Electronic Data Systems Corporation
Mason, Cory Wisconsin Federation of Teachers
Toma, Albert Georgia-Pacific Corporation
Watson, Joshua Golden Rule Insurance Company
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Also available from the Wisconsin Ethics Board are reports identifying the amount and value of time state agencies have spent to affect legislative action and reports of expenditures for lobbying activities filed by organizations that employ lobbyists.
Sincerely,
Roth Judd
Director
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Senator Robson, with unanimous consent, asked that the Senate recess until 2:20 P.M..
