AB343: Bill Text

LRB-2739/2

PG&MES:cjs:jf

2011 - 2012 LEGISLATURE

2011 Assembly BILL 343

October 28, 2011 - Introduced by Representatives Mason, Grigsby, Pocan, Zamarripa, Roys, Clark, Milroy, Bewley, Turner, Steinbrink, Toles, Vruwink, Zepnick, E. Coggs, Fields, Ringhand, Berceau, Hebl, Young, Kessler, Hulsey and Jorgensen, cosponsored by Senators C. Larson, Carpenter, S. Coggs, Erpenbach, Hansen, Holperin, Risser and Wirch. Referred to Joint Committee on Finance.

AB343,1,6 An Act to amend 38.28 (1m) (a) 1., 71.06 (1p) (e), 71.06 (2) (g) 5., 71.06 (2) (h) 5., 71.06 (2e) (b) and 71.09 (11) (f); and to create 20.292 (1) (cr), 38.31, 71.06 (1p) (f), 71.06 (2) (g) 6. and 71.06 (2) (h) 6. of the statutes; relating to: grants to technical college districts to reduce unemployment; creating a new individual income tax upper bracket; providing an exemption from emergency rule procedures; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill directs the Wisconsin Technical College System (WTCS) Board to award grants to technical college districts for programs that assist in reducing unemployment. To be eligible for a grant, a technical college district must meet certain eligibility criteria relating to the unemployment rate of areas within the district or recent increases in the unemployment rate of areas within the district. Grants are available for three specified purposes:

1. To recruit, enroll, instruct, provide support services to, and pay the tuition and fees of dislocated workers who enroll in the district. A dislocated worker is a person who has been laid off or terminated from employment and meets certain additional criteria; a person who was self-employed but is currently unemployed as a result of economic conditions or natural disasters; or a displaced homemaker.

2. To recruit, enroll, instruct, and provide support services to adults who enroll in the district in a program leading to a certificate of general educational development (commonly referred to as a GED) or a high school equivalency diploma.

3. To expand existing capacity or create capacity in district programs for which there are student waiting lists or that address projected workforce needs in the district.

The bill authorizes the WTCS Board to modify the grant eligibility criteria and the purposes for which grants may be awarded in order to ensure the eligibility of district boards for grants awarded by the federal government for programs that improve completion rates and train workers for skilled occupations.

The bill directs the WTCS Board to give preference in awarding grants to programs that serve persons who reside in areas with the highest unemployment rates. The board must also submit annual reports to the governor and to the legislature regarding the programs that have been awarded grants.

Under current law, there are five income tax brackets for single individuals, certain fiduciaries, heads of households, and married persons. The brackets are indexed for inflation. The rate of taxation under current law for the lowest bracket for single individuals, certain fiduciaries, heads of households, and married persons is 4.6 percent of taxable income; the rate for the second bracket is 6.15 percent; the rate for the third bracket is 6.5 percent; the rate for the fourth bracket is 6.75 percent; and the rate for the highest bracket, which was created in the 2009-11 biennial budget act, 2009 Wisconsin Act 28, is 7.75 percent.

For taxable year 2011, the highest bracket applies to taxable income exceeding $224,210 for single individuals, certain fiduciaries, and heads of households. For married persons, the highest current bracket applies to taxable income exceeding $298,940 for joint filers and $149,470 for separate filers.

For taxable year 2012 and thereafter, this bill creates a sixth bracket with a taxation rate of 8.75 percent. For single individuals, certain fiduciaries, and heads of households, this bracket applies to taxable income exceeding $1,000,000. For married persons, this bracket applies to taxable income exceeding $1,000,000 for joint filers and $500,000 for separate filers. This bracket is indexed for inflation.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB343, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB343, s. 2 Section 2. 20.292 (1) (cr) of the statutes is created to read:

AB343,3,3 20.292 (1) (cr) Grants to reduce unemployment. The amounts in the schedule for grants to technical college districts to reduce unemployment under s. 38.31.

AB343, s. 3 Section 3. 38.28 (1m) (a) 1. of the statutes is amended to read:

AB343,3,13 38.28 (1m) (a) 1. "District aidable cost" means the annual cost of operating a technical college district, including debt service charges for district bonds and promissory notes for building programs or capital equipment, but excluding all expenditures relating to auxiliary enterprises and community service programs, all expenditures funded by or reimbursed with federal revenues, all receipts under sub. (6) and ss. 38.12 (9), 38.14 (3) and (9), 118.15 (2) (a), and 118.55 (7r), all receipts from grants awarded under ss. 38.04 (8), (20), (28), and (31), 38.14 (11), 38.26, 38.27, 38.31, 38.33, and 38.38, all fees collected under s. 38.24, and driver education and chauffeur training aids.

AB343, s. 4 Section 4. 38.31 of the statutes is created to read:

AB343,3,15 38.31 Grants to reduce unemployment. (1) Definitions. In this section:

AB343,3,16 (a) "Dislocated worker" has the meaning given in 29 USC 2801 (9).

AB343,3,19 (b) "Micropolitan statistical area" means a geographic area defined by the federal office of management and budget for use by federal agencies in collecting, tabulating, and publishing federal statistics.

AB343,4,2 (2) Eligibility criteria. (a) Subject to par. (b) and sub. (6), a district board is eligible for a grant under this section if it meets one or more of the following criteria:

AB343,4,5 1. The district includes a county, city, or micropolitan statistical area with an unemployment rate of at least 6 percent in 2 or more months during the 12 months preceding the date of the grant application

AB343,4,9 2. The district includes a county, city, or micropolitan statistical area with an average unemployment rate equal to at least 120 percent of the statewide average unemployment rate during the 12 months preceding the date of the grant application.

AB343,4,12 3. The district includes a county, city, or micropolitan statistical area with an unemployment rate that has increased by at least 2 percent during the 12 months preceding the date of the grant application.

AB343,4,15 (b) The board may not award a grant to a district board under this section unless the district board demonstrates how the grant will serve the area or areas that established the eligibility of the district board for a grant under par. (a).

AB343,4,17 (3) Grants. Subject to sub. (6), the board shall award grants to eligible district boards for the following purposes:

AB343,4,21 (a) To recruit, enroll, instruct, provide support services to, and pay the tuition and fees of dislocated workers who enroll in the district in an associate degree program, collegiate transfer program, vocational diploma program, or vocational-adult program.

AB343,4,24 (b) To recruit, enroll, instruct, and provide support services to adults who enroll in the district in a program leading to a certificate of general educational development or a high school equivalency diploma.

AB343,5,3 (c) To expand existing capacity or create capacity in district board programs for which there are student waiting lists or that address projected workforce needs in the district.

AB343,5,6 (4) Preference. The board shall give preference in awarding grants under this section to district boards serving persons residing in areas with the highest unemployment rates.

AB343,5,10 (5) Limitation on use of funds. A district board may not use a grant awarded under this section to pay any portion of tuition that would otherwise be paid for by a tuition remission, tuition waiver, tuition reimbursement, or any other financial aid program of this state, another state, or the federal government.

AB343,5,15 (6) Compliance with federal law. The board may modify the eligibility criteria under sub. (2) and the purposes for which grants may be awarded under sub. (3) in order to ensure the eligibility of district boards for grants awarded by the federal government for programs that improve completion rates and train workers for skilled occupations.

AB343,5,18 (7) Report. (a) By January 15, 2013, and annually thereafter, the board shall submit a report to the governor and to the legislature under s. 13.172 (2). The report shall include all of the following:

AB343,5,20 1. The district boards awarded grants under this section and how they used the funds.

AB343,5,21 2. The rates of unemployment in the areas in which the grants were disbursed.

AB343,6,2 3. The number of people who were assisted with each grant awarded, the technical college programs in which they enrolled, the number of people who completed such programs, the number of people who found employment in the district and elsewhere upon completing such programs and their annual salaries, and the tax revenue generated as a result, as estimated by the department of revenue.

AB343,6,4 (b) Beginning with the report submitted in 2014, the board shall include longitudinal data.

AB343,6,6 (8) Rules. The board shall promulgate rules to implement and administer this section.

AB343, s. 5 Section 5. 71.06 (1p) (e) of the statutes is amended to read:

AB343,6,9 71.06 (1p) (e) On all taxable income exceeding $225,000 but not exceeding $1,000,000, 7.75 percent.

AB343, s. 6 Section 6. 71.06 (1p) (f) of the statutes is created to read:

AB343,6,11 71.06 (1p) (f) On all taxable income exceeding $1,000,000, 8.75 percent.

AB343, s. 7 Section 7. 71.06 (2) (g) 5. of the statutes is amended to read:

AB343,6,14 71.06 (2) (g) 5. On all taxable income exceeding $300,000 but not exceeding $1,000,000, 7.75 percent.

AB343, s. 8 Section 8. 71.06 (2) (g) 6. of the statutes is created to read: