LRBs0174/1
PG/MES/CMH:lmk&wlj:rs
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 462
August 24, 2005 - Offered by Representative Ziegelbauer.
AB462-ASA1,1,10
1An Act to repeal 111.70 (1) (dm), 111.70 (1) (fm), 111.70 (1) (nc), 111.70 (4) (cm)
25s., 111.70 (4) (cm) 8m. b., 111.70 (4) (cm) 8p., 111.70 (4) (cm) 8s. and 118.245;
3to consolidate, renumber and amend 111.70 (4) (cm) 8m. a. and c.;
to amend
4111.70 (1) (b), 111.70 (4) (cm) 6. a., 111.70 (4) (cm) 6. am., 111.70 (4) (cm) 7r. d.,
5111.70 (4) (cm) 7r. e., 111.70 (4) (cm) 7r. f., 111.70 (4) (cm) 7r. h., 111.70 (4) (d)
62. a., 119.04 (1) and 121.91 (2m) (e) 2.; and
to create 65.95, 111.70 (4) (c) 2m.,
7111.70 (4) (jm) 4m. and 111.77 (6) (dm) of the statutes;
relating to: spending
8limits for cities, villages, towns, counties, school districts, and technical college
9districts; school district revenue limits; and qualified economic offers under the
10Municipal Employment Relations Act.
Analysis by the Legislative Reference Bureau
This substitute amendment establishes spending limits for cities, villages,
towns, counties, and technical college districts beginning in 2006. The limit is the
amount spent in the previous fiscal year plus the average percentage increase in the
consumer price index (CPI) over the three previous fiscal years plus 1 percent. The
limit for a city, village, town, or county is also increased by the percentage increase
over the previous fiscal year in its population; the limit for a technical college district
is also increased by the percentage increase over the previous fiscal year in its
enrollment.
An entity may exceed its spending limit in any fiscal year if a referendum
approves the amount of the proposed excess.
Current law generally limits the increase in the total amount that a school
district may receive from general school aids and property taxes in a school year to
the amount of revenue increase allowed per pupil in the previous school year
increased by the percentage change in the CPI. Beginning with the revenue limit
calculated for the 2006-07 school year, this substitute amendment indexes the per
pupil increase allowed to the percentage increase in the CPI plus 1 percent.
Under current law, in local government employment other than law
enforcement and fire fighting employment, if a dispute relating to the terms of a
proposed collective bargaining agreement has not been settled after a reasonable
period of negotiation and after mediation by the Wisconsin Employment Relations
Commission (WERC), either party, or the parties jointly, may petition WERC to
initiate compulsory, final, and binding arbitration with respect to any dispute
relating to wages, hours, and conditions of employment. If WERC determines, after
investigation, that an impasse exists and that arbitration is required, WERC must
submit to the parties a list of seven arbitrators, from which the parties alternately
strike names until one arbitrator is left. As an alternative to a single arbitrator,
WERC may provide for an arbitration panel that consists of one person selected by
each party and one person selected by WERC. As a further alternative, WERC may
also provide a process that allows for a random selection of a single arbitrator from
a list of seven names submitted by WERC. Under current law, an arbitrator or
arbitration panel must adopt the final offer of one of the parties on all disputed
issues, which is then incorporated into the collective bargaining agreement.
Under current law, however, this process does not apply to a dispute over
economic issues involving a collective bargaining unit consisting of school district
professional employees if WERC determines, subsequent to an investigation, that
the employer has submitted a qualified economic offer (QEO). Under current law, a
QEO consists of a proposal to maintain the percentage contribution by the employer
to the employees' existing fringe benefit costs and the employees' existing fringe
benefits and to provide for an annual average salary increase having a cost to the
employer at least equal to 2.1 percent of the existing total compensation and fringe
benefit costs for the employees in the collective bargaining unit plus any fringe
benefit savings. Fringe benefit savings is that amount, if any, by which 1.7 percent
of the total compensation and fringe benefit costs for all municipal employees in a
collective bargaining unit for any 12-month period covered by a proposed collective
bargaining agreement exceeds the increased cost required to maintain the
percentage contribution by the municipal employer to the municipal employees'
existing fringe benefit costs and to maintain all fringe benefits provided to the
municipal employees.
This substitute amendment eliminates the QEO exception from the
compulsory, final, and binding arbitration process.
Under the Municipal Employment Relations Act, for labor disputes that go to
arbitration, the arbitrator or arbitration panel must consider a variety of factors,
some of which are given "greatest weight"; some of which are given "greater weight";
and some of which must simply be considered. Among the factors that must simply
be considered are the wages, hours, and conditions of employment of employees
providing similar services and of employees in public and in private employment in
the same and comparable communities. This substitute amendment provides that
the arbitrator or arbitration panel must consider the wages, hours, and conditions
of employment of the employees as a whole and not in isolation.
Under current law, school district professional employees are required to be
placed in a collective bargaining unit that is separate from the units of other school
district employees. This substitute amendment eliminates this requirement.
Finally, the substitute amendment eliminates a 3.8 percent cap imposed on
salary and fringe benefit annual cost increases for all nonrepresented professional
school district employees.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB462-ASA1,3,2
265.95 Spending and levy limits. (1) In this section:
AB462-ASA1,3,43
(a) "Excess levy" means the amount by which a local governmental unit's levy
4exceeds its previous levy without approval at a referendum under sub. (5).
AB462-ASA1,3,65
(b) "Excess spending" means the amount by which a local governmental unit's
6spending exceeds its spending limit under this section.
AB462-ASA1,3,87
(c) "Local governmental unit" means any city, village, town, county, or technical
8college district.
AB462-ASA1,3,11
9(2) Except as provided in sub. (3) and subject to sub. (4), a local governmental
10unit may not spend in any fiscal year more than the amount it spent the previous
11fiscal year increased by all of the following:
AB462-ASA1,3,1312
(a) The average percentage increase in the consumer price index for
13Milwaukee-Racine or its successor for the 3 previous fiscal years, plus 1 percent.
AB462-ASA1,4,3
1(b) For cities, villages, towns, and counties, the percentage increase over the
2previous fiscal year in the population of the city, village, town, or county, as estimated
3by the department of administration under s. 16.96.
AB462-ASA1,4,54
(c) For technical college districts, the percentage increase over the previous
5fiscal year in the enrollment of the district.
AB462-ASA1,4,15
6(3) (a) If a local governmental unit wishes to exceed the limit otherwise
7applicable to the local governmental unit under sub. (2) in any fiscal year, it shall
8promptly adopt a resolution supporting inclusion in its final budget of an amount
9equal to the proposed excess spending. The resolution shall be filed as provided in
10s. 8.37. The local governmental unit shall call a special referendum for the purpose
11of submitting the resolution to the electors for approval or rejection. In lieu of a
12special referendum, the local governmental unit may specify that the referendum be
13held at the next succeeding spring primary or election or September primary or
14general election, if such election is to be held not sooner than 42 days after the filing
15of the resolution.
AB462-ASA1,4,2016
(b) The local governmental unit shall publish type A, B, C, D, and E notices of
17the referendum under s. 10.01 (2). Notwithstanding s. 10.01 (2) (a), the type A notice
18shall include a statement of the amount of the excess spending specified in par. (a)
19and a copy of the resolution under par. (a). Section 5.01 (1) applies in the event of
20failure to comply with the notice requirements of this paragraph.
AB462-ASA1,5,321
(c) The referendum shall be held in accordance with chs. 5 to 12. The local
22governmental unit shall provide the election officials with all necessary election
23supplies. The form of the ballot shall correspond substantially with the standard
24form for referendum ballots prescribed by the elections board under ss. 5.64 (2) and
257.08 (1) (a). The question submitted shall be whether the limit under sub. (2) may
1be exceeded by a specified amount. The limit otherwise applicable to the local
2governmental unit under sub. (2) is increased by the amount approved by a majority
3of those voting on the question.
AB462-ASA1,5,5
4(4) In the case of a city, village, town, or county, the spending limit under sub.
5(2) does not apply to any of the following amounts:
AB462-ASA1,5,76
(a) Any amount contributed to a proprietary fund under s. 65.90 (3) (b) 5. that
7is not property tax revenues.
AB462-ASA1,5,108
(b) Any amount spent as a matching contribution that is related to a federal
9grant that is received by the city, village, town, or county that is not property tax
10revenues.
AB462-ASA1,5,1111
(c) Any amount of spending that derived from a federal grant.
AB462-ASA1, s. 2
12Section
2. 111.70 (1) (b) of the statutes is amended to read:
AB462-ASA1,5,1613
111.70
(1) (b) "Collective bargaining unit" means
a the unit
consisting of
14municipal employees who are school district professional employees or of municipal
15employees who are not school district professional employees that is determined by
16the commission to be appropriate for the purpose of collective bargaining.
AB462-ASA1, s. 6
20Section
6. 111.70 (4) (c) 2m. of the statutes is created to read:
AB462-ASA1,6,321
111.70
(4) (c) 2m. `Factors used in arbitration to settle disputes.' If the parties
22to a dispute agree to have the commission or any other appropriate agency serve as
23arbitrator to resolve the dispute and if the commission or any other appropriate
24agency compares the wages, hours, and conditions of employment of the municipal
25employees involved in the arbitration proceedings with the wages, hours, and
1conditions of employment of any other employees, the commission or other
2appropriate agency shall compare the wages, hours, and conditions of employment
3as a whole, rather than as individual elements.
AB462-ASA1, s. 8
5Section
8. 111.70 (4) (cm) 6. a. of the statutes is amended to read:
AB462-ASA1,6,216
111.70
(4) (cm) 6. a. If in any collective bargaining unit a dispute relating to one
7or more issues
, qualifying for interest arbitration under subd. 5s. in a collective
8bargaining unit to which subd. 5s. applies, has not been settled after a reasonable
9period of negotiation and after mediation by the commission under subd. 3. and other
10settlement procedures, if any, established by the parties have been exhausted, and
11the parties are deadlocked with respect to any dispute between them over wages,
12hours and conditions of employment to be included in a new collective bargaining
13agreement, either party, or the parties jointly, may petition the commission, in
14writing, to initiate compulsory, final and binding arbitration, as provided in this
15paragraph. At the time the petition is filed, the petitioning party shall submit in
16writing to the other party and the commission its preliminary final offer containing
17its latest proposals on all issues in dispute. Within 14 calendar days after the date
18of that submission, the other party shall submit in writing its preliminary final offer
19on all disputed issues to the petitioning party and the commission. If a petition is
20filed jointly, both parties shall exchange their preliminary final offers in writing and
21submit copies to the commission at the time the petition is filed.
AB462-ASA1, s. 9
22Section
9. 111.70 (4) (cm) 6. am. of the statutes is amended to read:
AB462-ASA1,8,1623
111.70
(4) (cm) 6. am. Upon receipt of a petition to initiate arbitration, the
24commission shall make an investigation, with or without a formal hearing, to
25determine whether arbitration should be commenced. If in determining whether an
1impasse exists the commission finds that the procedures set forth in this paragraph
2have not been complied with and such compliance would tend to result in a
3settlement, it may order such compliance before ordering arbitration. The validity
4of any arbitration award or collective bargaining agreement shall not be affected by
5failure to comply with such procedures. Prior to the close of the investigation each
6party shall submit in writing to the commission its single final offer containing its
7final proposals on all issues in dispute that are subject to interest arbitration under
8this subdivision
or under subd. 5s. in collective bargaining units to which subd. 5s.
9applies. If a party fails to submit a single, ultimate final offer, the commission shall
10close the investigation based on the last written position of the party.
The municipal
11employer may not submit a qualified economic offer under subd. 5s. after the close
12of the investigation. Such final offers may include only mandatory subjects of
13bargaining, except that a permissive subject of bargaining may be included by a
14party if the other party does not object and shall then be treated as a mandatory
15subject. No later than such time, the parties shall also submit to the commission a
16stipulation, in writing, with respect to all matters which are agreed upon for
17inclusion in the new or amended collective bargaining agreement. The commission,
18after receiving a report from its investigator and determining that arbitration should
19be commenced, shall issue an order requiring arbitration and immediately submit
20to the parties a list of 7 arbitrators. Upon receipt of such list, the parties shall
21alternately strike names until a single name is left, who shall be appointed as
22arbitrator. The petitioning party shall notify the commission in writing of the
23identity of the arbitrator selected. Upon receipt of such notice, the commission shall
24formally appoint the arbitrator and submit to him or her the final offers of the
25parties. The final offers shall be considered public documents and shall be available
1from the commission. In lieu of a single arbitrator and upon request of both parties,
2the commission shall appoint a tripartite arbitration panel consisting of one member
3selected by each of the parties and a neutral person designated by the commission
4who shall serve as a chairperson. An arbitration panel has the same powers and
5duties as provided in this section for any other appointed arbitrator, and all
6arbitration decisions by such panel shall be determined by majority vote. In lieu of
7selection of the arbitrator by the parties and upon request of both parties, the
8commission shall establish a procedure for randomly selecting names of arbitrators.
9Under the procedure, the commission shall submit a list of 7 arbitrators to the
10parties. Each party shall strike one name from the list. From the remaining 5
11names, the commission shall randomly appoint an arbitrator. Unless both parties
12to an arbitration proceeding otherwise agree in writing, every individual whose
13name is submitted by the commission for appointment as an arbitrator shall be a
14resident of this state at the time of submission and every individual who is
15designated as an arbitration panel chairperson shall be a resident of this state at the
16time of designation.
AB462-ASA1, s. 10
17Section
10. 111.70 (4) (cm) 7r. d. of the statutes is amended to read:
AB462-ASA1,8,2218
111.70
(4) (cm) 7r. d. Comparison of wages, hours and conditions of employment
19of the municipal employees involved in the arbitration proceedings with the wages,
20hours and conditions of employment of other employees performing similar services.
21In making this comparison, the arbitrator or arbitration panel shall consider wages,
22hours, and conditions of employment as a whole, rather than as individual elements.
AB462-ASA1, s. 11
23Section
11. 111.70 (4) (cm) 7r. e. of the statutes is amended to read:
AB462-ASA1,9,424
111.70
(4) (cm) 7r. e. Comparison of the wages, hours and conditions of
25employment of the municipal employees involved in the arbitration proceedings with
1the wages, hours and conditions of employment of other employees generally in
2public employment in the same community and in comparable communities.
In
3making this comparison, the arbitrator or arbitration panel shall consider wages,
4hours, and conditions of employment as a whole, rather than as individual elements.
AB462-ASA1, s. 12
5Section
12. 111.70 (4) (cm) 7r. f. of the statutes is amended to read:
AB462-ASA1,9,116
111.70
(4) (cm) 7r. f. Comparison of the wages, hours and conditions of
7employment of the municipal employees involved in the arbitration proceedings with
8the wages, hours and conditions of employment of other employees in private
9employment in the same community and in comparable communities.
In making
10this comparison, the arbitrator or arbitration panel shall consider wages, hours, and
11conditions of employment as a whole, rather than as individual elements.
AB462-ASA1, s. 13
12Section
13. 111.70 (4) (cm) 7r. h. of the statutes is amended to read: