• Encourages individual savings and investment by maintaining one of the most generous tax treatments nationally for capital gains income. The long-term capital gains exclusion from taxable income is reduced from 60 percent to 30 percent, increasing state revenue by $115.1 million in fiscal year 2009-10 and $127.4 million in fiscal year 2010-11. The long-term capital gains exclusion for farm assets is continued at 60 percent.
• Promotes tax equity by realigning tax treatment of nonresident members of pass-through entities with resident members and by eliminating the deduction for corporations' qualified domestic production activities, a deduction that provided a tax subsidy for business activity outside the state.
• Enhances debt collection efforts at the Department of Revenue by streamlining business processes and authorizing new partnerships for increased efficiency and revenue generation.
General Government
• Provides group health insurance and retirement survivor benefits to domestic partners of state employees and University of Wisconsin faculty and staff.
• Extends certain dependent and survivor protections to domestic partners.
• Provides the faculty, academic staff and research assistants of the University of Wisconsin System the right to collectively bargain.
• Allows for the consolidation of human resource services at executive branch agencies to gain efficiencies in delivering consistent and quality employee services.
• Reorganizes attorneys and legal support staff in order to improve the provision of legal services, including contract negotiations, in state government.
Building Program
A303
• Creates the Milwaukee Initiative program, providing financial support through general fund supported borrowing to attract federal and private funds to construct research and academic facilities to spur science education and research activities at the University of Wisconsin-Milwaukee in the areas of freshwater science, engineering, public health and integrated research.
• Authorizes $6.6 million general fund supported borrowing to aid Dane County in the construction of anaerobic digesters for the Dane County Yahara Watershed Project to protect water quality through reduction of nutrient loads from agricultural enterprises.
• Enumerates $250 million program revenue supported borrowing for the renovation of the Charter Street heating and cooling plant at the University of Wisconsin-Madison to increase fuel diversity through inclusion of renewable biomass fuels, thereby eliminating the use of coal.
• Enumerates $18 million program revenue supported borrowing for the University of Wisconsin-Stout Memorial Student Center renovation.
• Enumerates over $6.1 million Stewardship borrowing for a new park entrance and visitor station, and water and sewer utilities at Rib Mountain State Park in Wausau.
I have made 81 vetoes to the budget. These vetoes remove unnecessary reports and requirements, clarify program implementation timelines, and improve the intended focus of certain programs. These vetoes reduce spending by over $10 million.
This budget has been forged in the worst economic conditions in many years. Already gloomy revenue forecasts made in January were reduced by another $1.6 billion in May. Despite these challenges, the Legislature worked diligently to make the difficult decisions necessary to deliver a balanced budget on time.
I commend the leadership of the Legislature for maintaining a balanced approach to addressing the global and national economic recession. I know the process toward reaching this remarkable achievement required compromises and consensus. In the end, the goals I set out in February were achieved – protect the middle class, make deep cuts, implement targeted revenue increases and preserve education, critical local services and health care access.
I remain concerned about the fragility of the global and national economies and the impact of further weakness on Wisconsin's economy. The budget I introduced included a $270 million balance on June 30, 2011. This margin is critical given the continuing uncertain economic outlook.
The Legislature's budget has an ending balance of $65 million on June 30, 2011. In order to protect the budget from further global and national economic weakness, I have vetoed approximately $10 million in new GPR spending. I have also, through veto, restored authority from the 2007-09 budget to make an additional $200 million in state agency cuts during the 2009-11 biennium.
Taken together, these actions will set the general fund ending balance at approximately the $270 million level included in my budget recommendations to the Legislature.
Wisconsin is a great state. We help each other in tough times. We protect the most vulnerable. The budget I sign today, after vetoes, protects our priorities in the face of unprecedented financial uncertainty and sets the stage for a strong recovery for all Wisconsin citizens.
On Wisconsin.
Respectfully submitted,
Jim Doyle
Governor
__________________
Veto Message
Table of Contents
A.
AGRICULTURE, ENVIRONMENT AND JUSTICE
CIRCUIT COURTS
1.
Increased Court Fees
2.
Recompense
CORRECTIONS
3.
Council on Offender Reentry
4.
Felmers Chaney Pre-Release Transition Facility
5.
Conversion of Unit Supervisor Positions
6.
Date Explanation at Sentencing
7.
Sentencing Changes
JUSTICE
8.
Creation of the Crime Alert Network
9.
Assistant District Attorney and Assistant State Public Defender Compensation
OFFICE OF JUSTICE ASSISTANCE
10.
American Indian Tribal Community Reintegration Program
NATURAL RESOURCES
11.
Tipping Fees for Owners of Construction Landfills
12.
Dam Fishway Requirements
13.
Managed Forest Law Withdrawal of Tribal Land
14.
Nonresident Boat Sticker
STATE PUBLIC DEFENDER
15.
State Standard for Indigent Legal Defense Counsel
B.
EDUCATION, CHILDREN AND FAMILIES
CHILDREN AND FAMILIES
1.
Foster Children and Foster Parent Bill of Rights
2.
Bureau of Milwaukee Child Welfare Audit
3.
Promulgation of Emergency Rules
4.
Graduated Foster Care Licensing
5.
Notice to Relatives
A304
6.
Subsidized Private Sector Employment
7.
Child Care Authorizations
8.
Child Care Program Integrity
HIGHER EDUCATIONAL AIDS BOARD
9.
Education Benefits for Veterans
PUBLIC INSTRUCTION
10.
Aid Adjustments Relating to Funding Reductions in General School Aids
11.
Limit on Open Enrollment Payment
12.
Open Enrollment Hold Harmless Payments
13.
Milwaukee Parental Choice Program Payments to Schools Barred from the Program
C.
GENERAL GOVERNMENT AND ECONOMIC DEVELOPMENT
ADMINISTRATION
1.
Reimbursement for Legal Notices in Newspapers
2.
Access to State and Federal Surplus Property Sales
3.
Use of Private Contractor Positions
COMMERCE
4.
Grant to Pleasant Prairie Technology Incubator Center
5.
Area Development Manager
6.
Innovation and Research Grants
7.
Film Production Tax Credits Program Changes
8.
Rural Outsourcing Grants
FINANCIAL INSTITUTIONS
9.
Credit Union Service Organization
10.
Conversion of a Credit Union to a Mutual Savings Bank
GENERAL PROVISIONS
11.
Limitation on Construction Work Performed by County
12.
Required Reports
13.
Earmarks
LIEUTENANT GOVERNOR
14.
Constituent Services Position
MILITARY AFFAIRS
