These sections increase the dollar threshold requiring bids or competitive sealed proposals for procurements made by the Board of Regents of the University of Wisconsin System or the University of Wisconsin-Madison to $50,000, effective July 1, 2013.
I am partially vetoing these sections to remove the language specific to the University of Wisconsin and the delayed effective date because I object to limiting this higher threshold to the University of Wisconsin System and the University of Wisconsin-Madison and delaying the effective date of this change. My budget recommendations to the Legislature in March included this change in the bid threshold for all agencies. With this veto, my original intent to provide all state agencies with the flexibility for more efficient and cost-effective procurement of goods and services will be met immediately.
41.
Build and Lease Back Program
Section 9101 (5q)
This provision directs the Department of Administration to explore the feasibility of instituting a program for private construction of buildings for the purpose of leasing those buildings to the state. The study results would be submitted to the Joint Committee on Finance by December 1, 2011.
I am vetoing this provision because it would be duplicative of existing practices. The department, through the State Building Commission, already engages with private contractors to construct buildings with lease/purchase agreements for state government operations.
42.
Energy Efficiency Heating, Ventilating and Air Conditioning Systems Study
Section 9101 (1u)
This provision directs the Department of Administration to conduct a study on the feasibility of installing energy efficient systems in state buildings and to submit the study results to the Joint Committee on Finance by December 1, 2011.
I am vetoing this provision because it is unnecessary. The Division of State Facilities in the department is already responsible for addressing energy efficiency in state buildings. The department is working with the State Building Commission to continually improve energy efficiency throughout state-owned facilities.
F.
TAX, TRANSPORTATION AND OPERATIONS
REVENUE
43.
Weight-Based Taxation for Moist Snuff Tobacco Products
Sections 2637n, 2637p and 9441 (3u)
These sections convert the tax on moist snuff tobacco products from an ad valorem tax equal to 100 percent of the manufacturer's list price to a rate of $1.76 per ounce and at an equivalent rate for any fractional part in excess of 1.2 ounces. These sections also specify that the tax on a can or package of moist snuff weighing less than 1.2 ounces shall be equal to the tax on a can or package weighing 1.2 ounces. The weight-based tax would take effect on January 1, 2012.
I am vetoing these sections because it may encourage the use of these products by children. Wisconsin's current ad valorem tax on moist snuff tobacco products maintains a level playing field and minimizes the attractiveness to youth, helping to improve public health.
44.
Sharing of Loss Carry-Forwards under the Corporate Income and Franchise Tax Incurred Before 2009
Section 1894d
A428
This section allows combined groups under the provisions of the corporate income and franchise tax to share net business loss carry-forwards that were incurred by group members prior to January 1, 2009. Beginning with the first tax year beginning after December 31, 2011, and each of the 19 subsequent tax years, a corporation that is a member of a combined group and had business loss carry-forwards incurred prior to January 1, 2009, may use up to 5 percent of its remaining business loss carry-forwards to proportionally offset the net income of other members of the combined group, to the extent such income is attributable to the unitary business. If the full 5 percent of the loss carry-forwards cannot be fully utilized in a given tax year, the remainder may be added in a subsequent tax year to the portion of loss carry-forwards that may offset group members' income in that year. A member of a combined group can continue to utilize its loss carry-forward until its loss carry-forward is completely used or expired except that pre-2009 loss carry-forwards may not be used in any taxable year that begins after December 31, 2031.
I am partially vetoing this section to remove the word "remaining" as it relates to the eligible loss carry-forwards that can be shared by a combined group member because the language in the bill is not consistent with the intent. The intent of this provision is to allow a business to use the full amount of the pre-2009 loss carry-forward over a period of 20 years, or until that group member's loss carry-forward is completely used or expired. The remaining amount of pre-2009 loss carry-forward will decrease each year, and because the percentage would be calculated on this decreasing amount, the business would never be able to share the full amount of its losses.
45.
County and Municipal Levy Limits
Sections 1722b, 1722c and 1722d
Section 1722b changes the current law valuation factor percentage for use in setting county and municipal operating levies from the greater of 3 percent or the percentage change in equalized value due to net new construction to the greater of the percentage change in equalized value due to net new construction or one of two minimum valuation factors depending on the property tax year. Section 1722c establishes a 0 percent minimum valuation factor for levies set in 2011 and 2012. Section 1722d establishes the minimum valuation factor at 1.5 percent for levies set in 2013 and all subsequent years.
I am vetoing section 1722d and partially vetoing sections 1722b and 1722c to remove the scheduled increase in the minimum valuation factor for property tax years beginning after 2012 because I object to creating an automatic increase in the minimum valuation factor without knowledge of conditions in future years for taxpayers, counties and municipalities. The ongoing minimum valuation factor would continue to be 0 percent as a result of these vetoes. While these vetoes do not sunset the county and municipal levy limits for property tax years after 2012, it is my intention that the structure of county and municipal levy limits should be revisited in each budget in conjunction with state aid policies as well as current and projected economic conditions for taxpayers, counties and municipalities. I remain committed to protecting property taxpayers through strong property tax levy controls for counties, municipalities, school districts and technical college districts.
46.
Property Tax Exemption for Certain University of Wisconsin–Madison Student Housing Facilities
Sections 1747n, 1748d, 9341 (4d) and 9441 (4d)
These sections repeal the property tax exemption for real and personal property of a housing facility that: is owned by a nonprofit organization; 90 percent of its residents are University of Wisconsin-Madison students; there are no more than 300 students living at the facility; and the facility offers support services and outreach programs to its residents, the public or private institution of higher education at which the student residents are enrolled, and the public.
I am vetoing these sections because the repeal of the property tax exemption for these student housing facilities would place a substantial financial burden on current and potential future student housing facilities at the University of Wisconsin–Madison that provide unique services to students attending the university, including scholarships for residents, student worship groups, and volunteer services not available at university or commercial student housing facilities.
TRANSPORTATION
47.
County Highway Department Funding
Section 2221i
Section 2221i requires the Department of Transportation to work cooperatively with county highway departments to determine an appropriate level of state work sufficient to fully utilize the manpower and equipment needed for winter maintenance, and to submit, with each biennial budget request, a funding proposal for maintenance activities performed by counties that is no less than the base amount appropriated plus an inflationary factor, if the department determines that funding for county maintenance activities is inadequate.
I am partially vetoing this section to remove the requirement that the department submit budget requests that include funding equal to the amount appropriated in the base year plus an inflationary factor, for maintenance activities performed by counties, if the department determines that funding for county maintenance activities is inadequate. I am partially vetoing this section because funding amounts included in budget requests should be determined by available revenue and transportation priorities.
48.
Department of Transportation 10-year Financing Plans
Section 2200m
Section 2200m requires the Department of Transportation to submit, with each biennial budget, a 10-year plan outlining transportation revenue estimates, proposed bonding and debt service.
I a
m partially vetoing this section to remove the requirement that the department submit this plan with each biennial budget, because requiring the department to repeat the plan every two years prevents implementation of any recommendations from the plan on a long-term basis. Long-term transportation finance planning is a valuable activity, at less frequent intervals than this section requires.
49.
Southeast Wisconsin Freeway Megaprojects
Sections 9148 (7f) and 9148 (8f) (b)
A429
Section 9148 (7f) requires the Department of Transportation to determine, by July 1, 2011, the portion of unencumbered funds in the department's expiring southeast Wisconsin freeway rehabilitation appropriations that are designated for southeast Wisconsin freeway megaprojects.
Section 9148 (8f) requires the department to provide the Joint Committee on Finance with a detailed project funding plan for the Zoo Interchange by December 1, 2011.
I am partially vetoing these sections to remove the dates because the department will not be able to comply with the requirements by the specified dates. Fiscal year 2010-11 expenditures and encumbrances will still be in the process of being finalized on July 1, 2011. Once expenditures and encumbrances have been finalized, the department will make the required determinations and transfers. In addition, the department has not selected a preferred design alternative for the Zoo Interchange project and will not have enough information for a detailed expenditure plan by December 1, 2011. The department will provide the Zoo Interchange plan when sufficient information is available.
50.
Astronautics Funding
Section 373 [as it relates to s.
20.395 (2) (mq)] provides $10,000 SEG in fiscal year 2011-12 to the Wisconsin Aerospace Authority for Web site design.
I am partially vetoing section 373 [as it relates to s.
20.395 (2) (mq)] to reduce funding for this appropriation to $0 in fiscal year 2011-12 because I object to earmarking these funds. By lining out s.
20.395 (2) (mq) and writing in $0, I am vetoing the part of the bill that funds this provision. I am also requesting the Department of Administration secretary not to allot these funds.
