I am partially vetoing sections 140 [as it relates to s.
20.292 (1) (eh)] and 217m to rename the program "Training Program Grants." I am also partially vetoing section 724m to more closely align these grants with the mission of the Wisconsin Technical College System Board. Under current law, the board does not make grants to individual businesses and does not have the expertise or staff to evaluate grant proposals on their business merits. The mission of the board is to ensure that the Wisconsin Technical College System is serving the needs of all Wisconsin businesses, primarily through its education and training programs.
The Department of Commerce was established, in large part, to provide more coordinated development assistance to Wisconsin businesses. I am vetoing section 2357m to retain the department's authority to award grants to small businesses to assist them in upgrading the skills of their workforce. The focus of Wisconsin's technical colleges needs to remain on their educational mission. My veto authorizes the Wisconsin Technical College System Board to award grants to technical college districts to be used for skills training or other education related to the needs of Wisconsin businesses.
WORKFORCE DEVELOPMENT
23.
W-2 Contracts and Oversight
Sections 1059g, 1059t, 1059u, 1059v, 1059w, 1060m, 1060p, 1085f, 9154 (1f) and 9354 (4f)
A392
Section 9154 (1f) requires the Department of Workforce Development to report to the Joint Committee on Finance on W-2 agency success regarding job placement, former participants' earned wages, job retention, W-2 staff training outcomes, and the appropriateness and effectiveness of work, education, and training activities.
I am vetoing this section because it is unnecessary. As part of W-2 agency performance standards, the department currently compiles information for job placement, earned wages and job retention, and is authorized to collect other pertinent information. All reported information is available for review by both the Legislature and the Governor.
Sections 1059g, 1059t, 1059u, 1059v and 1059w require the department to review W-2 agencies' contracts and financial records to ensure compliance with state and federal laws; be responsible for conducting quarterly reviews of W-2 agencies in the ten most populous counties and annual reviews for all other W-2 agencies; review the financial records for all subcontracting entities with W-2 agencies; and be responsible for W-2 agency auditor selection and for enforcing financial penalties with W-2 agencies that fail to serve W-2 participants.
I am vetoing these sections because they are unnecessary. I recognize the critical importance of maintaining oversight and enforcing accountability standards for W-2 agencies. Current W-2 contract language already specifies periodic reviews and monitoring of W-2 agency financial records to ensure compliance with existing laws and regulations. In addition, contract regulations give the department authority to select an agency auditor if needed and enforce financial penalties.
Sections 1085f and 9354 (4f) specify that W-2 agencies are responsible for reimbursing the state for the cost of W-2 benefit overpayments made as a result of agency error or oversight.
I am vetoing these sections because they are unnecessary. The department already requires W-2 agencies to reimburse the state for instances of agency error.
Sections 1060m, 1060p and 9354 (4f) require individuals who are assigned to W-2 Transitions or W-2 Community Service Jobs to engage in a minimum of 20 hours of work activities each week. The department would be responsible for monitoring W-2 agencies to ensure compliance with these specifications.
I am vetoing these sections because it is unnecessary to define minimum work hours for W-2 Transitions or W-2 Community Service Job placements. Existing federal regulations for the Temporary Assistance for Needy Families program require a minimum of 20 work hours per week for these placements.
24.
Child Care Quality Improvement Programs
Sections 1075, 1095c and 1106
Sections 1075 and 1095c decrease total funding for various child care quality improvement programs from the $8,603,500 annual amount proposed in my budget to $3,378,500. These programs include the Teacher Education and Compensation Helps (TEACH) program, which provides scholarships to child care providers to assist them with the cost of pursuing additional postsecondary education in child care, and the Rewarding Education with Wages and Respect for Dedication (REWARD) program, which provides a stipend to child care providers who achieve a specified educational level or who have remained in the field for several years. These two programs link education, commitment and compensation to increase the number of highly-qualified child care staff and to reduce staff turnover. Funding is also used for child care resource and referral centers, training and technical assistance grants for providers, and pass-through grants to local entities to improve the quality and availability of child care.
I am partially vetoing these sections because I strongly object to further underfunding these programs. These programs provide services to both child care providers and parents that ultimately result in increased access to adequate care and improved quality of care for children across the state. Quality care in the early years is critical to a child's development, and research has consistently linked high-quality early childhood experiences to positive emotional, social and academic outcomes later in life. My partial veto will restore $4,000,000 annually for these programs, which are essential to ensuring that Wisconsin's families have access to the child care they need.
I am partially vetoing section 1106 to reduce the amount of Temporary Assistance for Needy Families (TANF) funding for the state earned income tax credit (EITC). I fully support this tax credit, which provides a refundable tax credit to low-income working families. Since earned income tax credits are funded from a combination of TANF funds and a sum sufficient GPR appropriation, my veto to redirect TANF funds from the earned income tax credit to child care quality improvement and to the Children First program (see Item #26) will not affect the total amount of funding for these credits, thereby preserving this important program for hard-working Wisconsin families.
25.
Child Care Subsidy Program Family Copayments
Section 9154 (1k)
This section increases the family copayment for the Wisconsin Shares Child Care Subsidy program by 15 percent.
I am vetoing this section to eliminate the family copayment increase of 15 percent, because I object to increasing the financial burden on low-income families throughout Wisconsin. The Department of Workforce Development has determined that by implementing additional efficiencies through a more equitable rate allocation, sufficient savings will accrue to offset revenues that would have been collected by a 15 percent increase in family copayments.
A393
If signed into law, the impact of the Legislature's increase on low-income families would have been substantial. A family of three with an income at 185 percent of the federal poverty level earns $29,800 annually. Under the Legislature's 15 percent copayment provision, a family of three with two children in subsidized care would pay over $500 more a year for annual child care costs. The state's economic support and child care budget should not be balanced on the backs of low-income working families who struggle daily to make ends meet. This veto will help ensure that low-income parents can continue to afford quality child care, without sacrificing their ability to provide for their families and maintain Wisconsin's strong work ethic tradition.
26.
Children First
Section 1092
This section decreases the amount of total funding for the Children First program from $1,140,000 that was provided in fiscal year 2004-05 to $834,000 each fiscal year, beginning in fiscal year 2005-06.
I am vetoing this section to restore funding back to current levels because the Legislature's funding cuts to the Children First program would decrease opportunities for parents who do not directly care for their children, but who are responsible for paying child support, to find and maintain jobs. Children First is a court-ordered program that assists noncustodial parents who have fallen behind in making their child support payments for a variety of reasons including unemployment, underemployment or noncompliance. This program helps these parents obtain gainful employment through a variety of training programs, enabling them to maintain consistent employment and fulfill their child support obligations. Helping noncustodial parents to become more financially responsible and involved in their children's lives is a critical component for ensuring the financial stability and emotional well-being of Wisconsin's children and families.
B.
ENVIRONMENTAL AND COMMERCIAL RESOURCES
AGRICULTURE, TRADE AND CONSUMER PROTECTION
1.
Fish Hatcheries
Sections 140 [as it relates to s.
20.115 (2) (k)], 143i, 245n, 557t, 557v, 587e, 587g, 657f, 657h, 657L, 1756d, 1756e, 1756g, 1756h and 1756L
These provisions create a new annual appropriation for the Department of Agriculture, Trade and Consumer Protection to receive funds from the Department of Natural Resources for activities related to fish hatcheries. The provisions also repeal the authority of the Department of Natural Resources to remove fish from a self-contained fish rearing facility or preexisting fish rearing facility that is an artificial body of water, unless requested by the Department of Agriculture, Trade and Consumer Protection. In addition, the provisions require the Department of Natural Resources to obtain a fish health certificate for its fish hatcheries from the Department of Agriculture, Trade and Consumer Protection, but exempts the Department of Natural Resources from the related fees.
I am vetoing these provisions because they are unnecessary and remove vital enforcement authority to keep aquatic invasive species out of Wisconsin's waters. This provision opens the door to importation or retention of nonnative fish such as the Asian Carp that pose a threat to wild native fish populations. Aquaculture is a growing business that is important to Wisconsin, but in order to protect our native species, we need to ensure that the growth occurs responsibly. Under my Administration, the departments will continue to work together to ensure that all fish raised in the state meet health standards and will not be detrimental to the native populations that play an important role in maintaining biodiversity and providing economic opportunities statewide.
2.
Bioindustry Grant Program
Section 1751v [as it relates to the total grant awards per fiscal year]
This provision limits the total amount of funds the Department of Agriculture, Trade and Consumer Protection may award in a fiscal year for grants under the Agricultural Diversification and Development, and Sustainable Agriculture programs.
I am vetoing this provision because I object to the restriction of funding for these important programs. The department is best equipped to determine the appropriate split of funding for projects under these programs and the new Bioindustry Grant Program. I am disappointed that the level of funding for the new program was cut in half, but do not believe that the reduction should limit spending on the existing programs if significant opportunities arise.
COMMERCE
3.
Petroleum Environmental Cleanup Fund Award (PECFA) Program Changes
Sections 1829p and 9108 (1v)
Section 1829p reduces the current level of revenue obligation authority to support the payment of claims under the PECFA program from $436,000,000 to $386,924,000. Section 9108 (1v) requires the Department of Commerce to include in its 2007-09 biennial budget submission a proposal to phase out the PECFA program.
I am vetoing these sections because it is premature to remove support for claim payments and require phase out of the program. The department is actively monitoring activity in the program and is best equipped to determine when the program has met its goals. In addition, it is unclear how many outstanding claims have not been submitted and of what magnitude those claims are. Sufficient funding must be available for these claims to avoid a significant delay in payments.
4.
Increase in Enterprise Development Zones
Section 2419
This section authorizes the Department of Commerce to create additional enterprise development zones up to a total of 85 zones.
A394
I am partially vetoing this section because I object to the unreasonable restriction on the number of businesses that could benefit from this program. This partial veto gives the department the authority to create a total of 98 enterprise development zones as opposed to the 85 zones authorized by the Legislature. This reasonable increase in the number of zones will allow the department to continue to provide incentives for businesses to create and retain jobs in Wisconsin.
5.
Small Business Requirement for Enterprise Development Zones Program
Section 2419m
This section requires that at least 50 percent of businesses in new enterprise development zones be businesses with 100 or fewer employees.
I am vetoing this section because I object to the significant limitation it places on the Department of Commerce's flexibility to determine the best use of the tax credits to maximize the positive impact on the surrounding communities. In addition, tax credit assistance for small businesses is provided by the department through the Community Development Zone program, which is currently active in 22 areas throughout the state. I support small businesses, but the department must have the flexibility to assist businesses and communities of varying sizes with this program.
6.
Small Business Requirement for the Wisconsin Development Fund
Sections 2376j, 2376L, 2376m, 2407L [as it relates to small businesses] and 9308 (1z) [as it relates to ss.
560.275 (8) and
(8) and
560.60 (15)]
These provisions require that at least 50 percent of grants and loans made under the Wisconsin Development Fund be made to businesses that have fewer than 100 employees and annual gross receipts of $10,000,000 or less.
I am vetoing sections 2376j, 2376L and 2376m and partially vetoing sections 2407L and 9308 (1z) to remove the requirement because it is unnecessary. The Department of Commerce already makes over 50 percent of grants and loans from the Wisconsin Development Fund to small businesses. In order to continue to grow Wisconsin's economy, the department must retain its flexibility to fund deserving businesses that will have a significant impact on local economies throughout the state. The department must also continue to be able to respond to local crises in a timely manner and make our state an attractive place for major economic development projects. Section 9308 (1z) erroneously contains two references to s.
560.275 (8). In order to correct this typographical error, I am striking "(8) and (8)." This may unintentionally affect applicants to the Technology Commercialization Grant and Loan program, and I am requesting that the department work with applicants to minimize any effects of this veto.
7.
Biomedical Technology Alliance Earmark
Section 9108 (3k)
This section requires the Department of Commerce to make a grant of $2,500,000 from the Technology Commercialization Grant and Loan program portion of the Wisconsin Development Fund to the University of Wisconsin System Board of Regents for the University of Wisconsin-Milwaukee to establish a Biomedical Technology Alliance in Southeastern Wisconsin.
I am partially vetoing this section to reduce the grant for this purpose by $2,000,000 in order to allow the department the flexibility to continue to award grants and loans under this program. These funds are available to start-up businesses across the state that are in-between rounds of venture capital financing or are awaiting receipt of federal grant awards.
Adopted with bipartisan support,
2003 Wisconsin Act 255 provided $2.5 million for technology commercialization grants and loans to start-up businesses. In addition, a portion of these funds support the four entrepreneurial and technology transfer centers that opened last fall. The proposed earmark would have consumed all of these funds.
I am requesting that the department continue to consider this project for additional assistance in the future, and am willing to work with the Legislature to identify appropriate sources of funding for this initiative.
8.
City of Green Bay Earmark
Section 9108 (3m)
This section requires the Department of Commerce to award an annual grant of $1,400,000 from the Wisconsin Development Fund to the city of Green Bay for a downtown redevelopment project during the period of fiscal year 2005-06 to fiscal year 2007-08.
I am partially vetoing this section to reduce the amount of the grant because it is excessive. The Wisconsin Development Fund has limited resources with which it attempts to provide assistance throughout the state. This partial veto will provide $1,400,000 to the city of Green Bay while allowing the department the flexibility to determine the best timing for the grant to ensure that other worthwhile projects are not adversely impacted. In addition, there are several other sources of assistance for which this project may qualify.
9.
Minority Business Finance Program Earmark
Sections 154m, 155r and 9108 (8k)
These sections require the Department of Commerce to award a grant of $375,000 in each fiscal year of the biennium to the Bishop's Creek redevelopment project in Milwaukee from the Minority Business Finance Program.
I am vetoing these sections because I object to the limits this earmark placed on the department in its efforts to promote minority business development in Wisconsin. I support minority businesses in the state and feel that all minority businesses should have the chance to compete for funding from this program. This grant would take up two-thirds of the funds available in the biennium under the Minority Business Finance Program, greatly reducing the amount of funding available to other applicants.
A395
In the last biennium, this program made 45 awards to minority businesses. The majority of the dollars awarded were loans that are paid back to the fund over time. The repayments of the loans are then available to make future, new awards to minority businesses. No single award is larger than $100,000 by statute. A grant of this size from the fund would significantly reduce the amount of future funding available to make awards, unless the Legislature appropriated new funds to the program.
My Administration is supportive of this project and recently awarded a brownfields grant of $750,000 to remediate land at the proposed site for the redevelopment.
10.
Community Development Block Grant Earmarks
Sections 9108 (5k) and 9108 (6k)
These sections earmark funding from the Community Development Block Grant program for the village of Wonewoc for a water reservoir and town of Ithaca for a water well.
I am vetoing these sections because they compromise the award selection process and limit the Department of Commerce in its efforts to promote economic development in Wisconsin. The award selection process was designed to meet the strict federal requirements for the Community Development Block Grant program, and earmarks of this kind raise legal questions regarding use of these federal funds.
ENVIRONMENTAL IMPROVEMENT PROGRAM
11.
Clean Water Fund Bonding
Section 461
This section reduces the current level of general obligation bonding authority for the Clean Water Fund Program from $637,743,200 to $622,043,200.
I am vetoing this section because I object to the reduction of funding for important projects that assist local communities with improving the quality of Wisconsin's waters.
12.
Present Value Subsidy Limit
Section 2159
This section reduces the Safe Drinking Water Loan Program present value subsidy limit for the 2005-07 biennium from $12,800,000 to $10,800,000.
I am partially vetoing this section to restore the present value subsidy limit to $12,800,000 for the 2005-07 biennium because I object to the restriction on the ability of the program to help communities across Wisconsin ensure safe drinking water for their citizens.
LAND USE
13.
Comprehensive Planning and Land Information Aids
Sections 1c, 90t, 90u, 92 [as it relates to s.
16.967 (5) and the grants appropriation under s.
20.505 (1) (ij)], 140 [as it relates to s.
20.505 (1) (ie),
(ig) and
(ij)], 278 [as it relates to the transfer to s.
20.505 (1) (z)], 388h, 388n, 389, 389m, 390, 391, 400m, 695g, 1235z, 1238m, 1238n, 1242q, 1250e, 1250f, 1250g, 1250m, 1254m, 2118r and 9201 (1q)
These provisions repeal the current law comprehensive planning requirements and grant program. In addition, these provisions require that $2,000,000 annually of fee revenue from the state's portion of the deed recording fee be deposited in the general fund, with the remainder being credited to the appropriations under s.
20.505 (1) (ie) and
(ij). Lastly, the provisions require a lapse to the general fund of $464,100 on June 30, 2006, and $420,300 on June 30, 2007, from the appropriation under s.
20.505 (1) (ij).
I am vetoing sections 1c, 90t, 90u, 388h, 388n, 389m, 400m, 695g, 1235z, 1238m, 1238n, 1242q, 1250e, 1250f, 1250g, 1250m, 1254m, 2118r and 9201 (1q) and partially vetoing sections 92 [as it relates to s.
16.967 (5) and the grants appropriation under s.
20.505 (1) (ij)], 140 [as it relates to s.
20.505 (1) (ie),
(ig) and
(ij)], 278 [as it relates to the transfer to s.
20.505 (1) (z)], 389, 390 and 391 to restore the comprehensive planning requirement, grant program and funding because I object to the elimination of this vital program. The effect of the veto of section 389m and partial veto of sections 92, 140, 389, 390 and 391 is to deposit all deed recording fee revenue received by the state into a continuing appropriation, which allows the Department of Administration to allot available revenues to fund grants under the restored comprehensive planning grant program.
Communities and a wide range of interest groups throughout the state support a consistent approach to planning for growth, economic development, agriculture, preservation of cultural and natural resources, recreation, and transportation because they recognize the benefits provided by such an approach. The comprehensive planning law allows communities to determine how they want to grow while ensuring the protection of Wisconsin's precious natural resources. To date, 743 communities have used this program to ensure that investors, entrepreneurs and developers know where they can locate development, and local governments are able to prepare for the expansion of services. This knowledge and ability to prepare has a significant positive impact on the effective use of limited taxpayer resources. Unplanned growth leads to uncontrolled local service costs, which results in increased property tax bills for citizens and businesses.
