Under current law, the acquisition costs to be used in calculating the amount
of a grant under the stewardship program equal the fair market value of the land
being acquired plus any other acquisition costs if the land has been owned by the
person conveying the land for three years or more. If the land has been owned for
one year or more but less than three years, the acquisition costs equal the sum of the
current owner's acquisition price and an annual adjustment increase (adjusted
price). If the land has been owned for less than one year, the acquisition costs equal
the current owner's acquisition price.
Under this bill, the acquisition costs for land that has been owned for one year
or more but less than three years equal the adjusted price or the current fair market
value, whichever is lower. The acquisition costs for land that has been owned for less
than one year equal the current owner's acquisition price or the current fair market
value of the land, whichever is lower.
Other natural resources
Under current law, land that DNR purchases is not subject to property taxes.
Instead, DNR makes annual payments to municipalities for each parcel of land that
the DNR has purchased in those municipalities. This bill eliminates those payments
for land purchased after the bill's effective date.
Under current law, DNR administers a financial assistance program for
projects that increase dam safety and may contract public debt to fund the program.
This bill increases DNR's bonding authority for the program, the debt service on
which is paid from the general fund, by $4,000,000.
Also, under this program, dam owners, including municipalities, generally are
eligible to receive a grant only if DNR has issued a directive to the owner to take
action to increase the dam's safety and the dam owner requests the grant within six
months after having received the directive. This bill eliminates the deadline for
making a grant request under the grant program.
Under current law, a person who owns a snowmobile that is not registered in
this state or that is exempt from registration must display on the snowmobile a trail
use sticker issued by DNR. Current law also requires DNR to calculate an amount
equal to the number of those trail use stickers issued by DNR in the previous fiscal
year multiplied by $15 and to credit this amount to an appropriation for aids to
counties for activities such as trail development and maintenance. This bill
increases the amount by which DNR must multiply the number of trail use stickers
to $32 for purposes of determining the amount to be credited to the appropriation.
occupational regulation
Under current law, DRL directly administers the regulation of real estate
practice in Wisconsin. DRL's duties and powers include issuing licenses to real estate
brokers and sales persons; approving forms for use in real estate practice;
promulgating rules regulating real estate practice; and conducting investigations,
holding hearings, and making findings regarding an alleged violation of real estate
law. Currently, the real estate board (board) conducts disciplinary proceedings and
may discipline licensees. The board also reviews and comments on administrative
rules relating to real estate practice that DRL proposes and advises the secretary of
regulation and licensing regarding real estate practice among other powers.
This bill eliminates the board, creates the Real Estate Examining Board, and
transfers most of DRL's duties and powers regulating real estate practice to the
examining board.
Current law defines the practice of pharmacy to include making therapeutic
alternate drug selections, if made in accordance with written guidelines or
procedures established by a hospital's pharmacy and therapeutics committee and
approved by the hospital's medical staff and approved for a patient by the patient's
physician or advanced practice nurse prescriber.
The bill requires that therapeutic alternate drug selections may also be made
by a skilled nursing facility or an intermediate care facility for persons with mental
retardation. The bill deletes the requirement that the written guidelines or
procedures be approved by the hospital's medical staff and the patient's physician or
advanced practice nurse prescriber.
Under current law, DRL, and various boards in DRL, administers Wisconsin's
professional credentialing laws. DRL is charged with ensuring the safe and
competent practice by credentialed professionals in Wisconsin, such as doctors,
nurses, cosmetologists, real estate agents, and veterinarians. This bill changes
DRL's name to the Department of Safety and Professional Services (DSPS).
Retirement and group insurance
Currently, the Group Insurance Board (GIB) must offer to state employees and
annuitants long-term care insurance policies that have been approved for offering
under contracts established by GIB if an insurance company requests that the policy
be offered. This bill eliminates the authority of an insurance company to require GIB
to offer its long-term care insurance policy.
This bill specifies that the Health Insurance Risk-Sharing Plan Authority
(HIRSPA) is not required to pay employer contributions for any benefits related to
the sick leave conversion program or the supplemental health insurance premium
credit program, which are administered by DETF. Employees of HIRSPA are not
eligible for these programs.
Shared revenue
This bill reduces the total amount of county and municipal aid payments
beginning in 2012. The total amount of the reduction for all counties is $36,500,000
and the total amount of the reduction for all municipalities is $59,500,000. The
reductions are allocated, generally, based on population and limited for each county
and municipality to the lesser of a percentage of the entity's property value or 50
percent of the entity's county and municipal aid payment in 2011.
Under current law, a municipality may receive an expenditure restraint
payment if its municipal budget has not increased from the previous year by more
than the sum of an inflation factor and a valuation factor. The valuation factor is,
generally, 60 percent of the change in the municipality's property value resulting
from new construction. The inflation factor is the average annual percentage change
in the U.S. Consumer Price Index, but not less than 3 percent. Under this bill, the
inflation factor cannot be less than zero.
State government
State finance
This bill requires the secretary of administration to lapse to the general fund
from the unencumbered balances of general purpose revenue (GPR) and program
revenue appropriations to executive branch state agencies, other than sum sufficient
appropriations and appropriations of federal revenues, an amount equal to
$145,000,000 in the 2011-13 fiscal biennium and $145,000,000 in the 2013-15 fiscal
biennium, subject to a 14-day passive review process by JCF. Under the bill, all
executive branch state agencies, except for the UW System with respect to its
program revenue appropriations, are subject to the lapse provisions. The bill further
requires the secretary to make additional lapses to the general fund from GPR and
program revenue appropriations to most executive branch state agencies and the
courts during the 2011-13 and 2013-15 fiscal biennia.
The bill requires the cochairpersons of the Joint Committee on Legislative
Organization to take actions during the 2011-13 and 2013-15 fiscal biennia to
ensure that from GPR appropriations to the legislature an amount equal to
$9,232,200 is lapsed from sum certain appropriation accounts or is subtracted from
the expenditure estimates for any other types of appropriations, or both, during each
fiscal biennium.
This bill authorizes the building commission to contract before July 1, 2013, up
to $364,300,000 in state public debt to refund any unpaid indebtedness used to
finance tax-supported or self-amortizing facilities.
Current statutes contain a rule of proceeding governing legislative action on
certain bills. Generally, the rule provides that no bill directly or indirectly affecting
GPR may be adopted if the bill would cause the estimated general fund balance on
June 30 of any fiscal year to be less than a certain amount of the total GPR
appropriations for that fiscal year. For each of fiscal years 2011-12 and 2012-13, the
amount is $65,000,000. For each fiscal year thereafter, the amount is 2 percent of
total GPR appropriations for that fiscal year.
This bill changes the amount for each of fiscal years 2013-14 and 2014-15 to
$65,000,000. For 2015-16 and each fiscal year thereafter, the amount remains at 2
percent of total GPR appropriations for that fiscal year.
Currently, the statutes contain a rule of proceeding that limits the increase in
moneys that may be appropriated from GPR during a fiscal biennium, based on
changes in the state's aggregate personal income. This bill repeals this provision.
Currently, the College Savings Program Board, which is attached to the Office
of the State Treasurer, administers the EdVest program, which is a college savings
plan established to enable families to contribute moneys to accounts for the college
expenses of dependents. This bill attaches the College Savings Program Board to
DOA, as well as requires DOA to administer the other college savings program,
which is closed to new participants and currently administered by the state
treasurer.
Under current law, the local government pooled-investment fund (fund)
consists of moneys placed in the state investment fund by local governmental units.
The state treasurer has several duties relating to the fund, which include prescribing
the mechanisms and procedures for deposits and withdrawals into and from the
fund. This bill transfers these duties to DOA.
State employment
This bill authorizes the secretary of administration to abolish any full-time
equivalent position at any executive branch state agency if the position is vacant and
the secretary determines that filling the position is not required for the state agency
to carry out its duties and exercise its powers.
State building program
Currently, with limited exceptions, each state agency, including the UW
System, must submit for approval of the Building Commission any contract for the
engineering, design, construction, reconstruction, remodeling, or expansion of a
building, structure, or facility if the project cost exceeds $150,000. Currently, DOA
manages all engineering, design, and construction work for state agencies, including
the UW System and, with limited exceptions, must provide public notice of proposed
work and let contracts to the lowest responsible bidder. Plans and specifications for
all work on UW projects are subject to approval of DOA. DOA may assess and collect
from state agencies, including the UW System, a construction project management
fee to cover its costs in managing each project. With limited exceptions, each
engineering, design, or construction contract for a state building, structure, or
facility is subject to approval of DOA and, if the contract involves an expenditure of
more than $60,000, the approval of the governor.
This bill deletes DOA's and the governor's responsibility for managing and
approving plans, specifications, and contracts for, any building, structure, or facility
to be constructed, reconstructed, remodeled, or expanded for the University of
Wisconsin-Madison authority created in this bill if the project is funded entirely
from sources other than state general purpose revenue or general fund supported
bonding. The bill also deletes the requirement for approval of the Building
Commission on any such project if the cost does not exceed $500,000. Under the bill,
the requirements that currently apply to DOA do not apply to the authority with
respect to any such project, and DOA may not assess the authority for its
construction management services.
State procurement
Current law generally authorizes state agencies to purchase materials,
supplies, or equipment under certain circumstances. With some exceptions,
purchases for which the estimated cost exceeds $25,000 require bids to be invited or
proposals to be solicited. This bill increases that $25,000 threshold to $50,000.
Under current law, DOA must generally approve and monitor contractual
services that agencies purchase. No agency may purchase contractual services that
involve an estimated expenditure of more than $25,000 without first conducting a
uniform cost-benefit analysis; each agency entering into a contract must submit to
DOA justification for the contract, and DOA must be satisfied that the justification
conforms to current law before approving the contract; and the Office of State
Employment Relations must review contracts to ensure that the purchasing agency
properly uses the services of state employees, to evaluate the feasibility of using
limited term appointments prior to entering into a contract, and to ensure that the
contract does not conflict with any collective bargaining agreement covering state
employees. This bill repeals these provisions.
Under current law, a state agency purchasing equipment that consumes
energy, such as equipment to provide heating, lighting, ventilation, cooling, or
refrigeration, must meet certain energy efficiency standards. This bill exempts from
the standards purchases that cost $5,000 or less per unit.
This bill requires DOA to maintain a list of parties who have violated a state
procurement contract or a statutory provision governing state procurement. Any
party on the list is ineligible to be a party to a state contract unless DOA, after
determining that the party complies with the statutory provisions and has adequate
safeguards to prevent future contractual or statutory violations, removes the party
from the list.
This bill also defines the University of Wisconsin-Madison authority created
in this bill, as a state agency for state procurement purposes except that the bill
provides the authority the authority to enter into contracts for items not commonly
purchased by entities other than universities and allows the authority to be party to
purchasing agreements with other higher education institutions.
Other state government
Currently, eligible candidates for the office of justice of the supreme court may
receive state grants funded from general purpose revenue, which is provided to the
democracy trust fund when individual income tax filers designate $2 to be deposited
into the fund. If the designations for the fund do not generate sufficient revenue for
all candidates to receive full grants, the deficiency is paid from a general purpose
revenue (GPR) appropriation. An eligible candidate for the office of justice of the
supreme court may also receive supplemental grants from the fund under certain
circumstances. This bill deletes the GPR supplement to the democracy trust fund;
if there are insufficient moneys available to pay the full amounts of grants to which
candidates are entitled, the grants are prorated. The bill also deletes the
supplemental grants. The bill permits candidates who accept grants to also accept
additional private contributions in an amount sufficient to cover any deficiency in
the public grants to which they would otherwise be entitled.
Current law creates the Office of Energy Independence (OEI) in DOA to work
on and facilitate initiatives regarding the state's energy independence, bioindustry
and biorefineries, renewable energy markets, alternative energy research, and
motor vehicle fuels that blend gasoline and certain biofuels. This bill eliminates OEI,
requires DOA to develop and implement a cost-effective, balanced, reliable, and
environmentally responsible energy strategy to promote economic growth, and
requires DOA, whenever feasible and cost-effective, to encourage, rather than
require, state agencies to take certain actions regarding hybrid-electric motor
vehicles and using gasohol and other alternative fuels.
Under current law, DOA must require that, by 2015, state agencies collectively
reduce the usage of gasoline by at least 50 percent below the total used in 2006 and
reduce the usage of diesel fuel by at least 25 percent below the total used in 2006.
Under this bill, DOA must encourage, rather than require, that, by 2015, state
agencies collectively reduce the usage of gasoline by at least 20 percent below the
total used in 2006 and reduce the usage of diesel fuel by at least 10 percent below the
total used in 2006. The bill also eliminates a requirement for DOA to submit an
annual report to the legislature regarding the state's usage of hybrid-electric motor
vehicles and gasohol and alternative fuels.
Under current law, DOA makes grants from the utility public benefits fund
(UPBF) to provide assistance to low-income households for the following: 1)
weatherization and other energy conservation services (weatherization and
conservation assistance); and 2) payment of energy bills and early identification or
prevention of energy crises (bill and crisis assistance). In each fiscal year, DOA must
ensure that the amount spent under the program on grants for weatherization and
conservation assistance is equal to 47 percent of a specified sum. As a result, 53
percent of the specified sum is available to be spent on grants under the program for
bill and crisis assistance.
In fiscal years 2009-10 and 2010-11, DOA was authorized to subtract no more
than $10,000,000 from the amount that must be spent on weatherization and
conservation assistance under the program. As a result, any amount subtracted by
DOA was available to be spent on bill and crisis assistance. This bill allows DOA to
make the same $10,000,000 subtraction in fiscal years 2011-12 and 2012-13.
Under current law, the chancellor of the UW-Madison and the vice chancellor
who serves as deputy are subject to the standards of conduct under the code of ethics
for state public officials as well as the requirement to file annual statements of
economic interests. Other employees of the UW-Madison are subject to a code of
ethics established by the Board of Regents of the UW System. Under the bill, the
chancellor and vice chancellor are still subject to the code of conduct but not to the
filing requirement, and the Board of Trustees of the University of
Wisconsin-Madison authority created in the bill must establish a code of ethics for
other employees of the authority.
Currently, DOA manages the state's risk management program, including
worker's compensation and liability insurance, and annually assesses each state
agency, including the UW System, for its risk management costs. This bill permits
the University of Wisconsin-Madison authority, with six months' notice, to opt in or
out of the state's risk management program for any fiscal year.
Under current law, certain administrative services functions are performed in
the Office of the Secretary of State and certain management services functions are
performed in the Office of the State Treasurer. This bill transfers those functions,
as determined by the secretary of administration, to DOA. The bill, however, does
not transfer any positions relating to those functions. The bill also eliminates from
the unclassified service one stenographer appointed by the secretary of state and one
stenographer appointed by the state treasurer.
This bill creates an Office of Business Development in DOA to perform the
functions determined by the secretary of administration. The office is headed by a
director outside the classified service who is appointed by the governor to serve at
his or her pleasure.
Currently, DOA may maintain a federal-state relations office in Washington,
D.C., for the purpose of promoting federal-state cooperation. The director and one
staff assistant are appointed by the governor, subject to concurrence of the Joint
Committee on Legislative Organization. This bill deletes the requirement for
concurrence in these appointments by the joint committee.
Currently, DOA must contract with one or more child care providers to
supplement the cost of providing suitable space for child care services provided to the
children of employees of state agencies whose work stations are located in the central
Madison area. This bill eliminates DOA's authority to enter into these contracts and
to provide child care facilities for state employees.
Currently, with limited exceptions, any person who brings a civil lawsuit
against a state employee on account of any act growing out of or committed in the
course of the employee's duties must give the attorney general notice of the claim
within 120 days of the act giving rise to the lawsuit, and liability is limited to
$250,000. In addition, with certain limitations, this state must pay damages
assessed against a state employee for acts committed while carrying out his or her
duties as an employee within the scope of employment.
This bill provides that if this state enters into a valid agreement with the state
of Minnesota providing for interchange of employees or services, any employee of the
state of Minnesota who is named as a defendant in any civil lawsuit brought under
Wisconsin law as a result of performing services for this state under the agreement
and any employee of this state who is named as defendant as a result of performing
services for the state of Minnesota under the agreement has, for purposes of notice
of claim requirements and liability limitations, the same status as when performing
the same services for this state in any civil lawsuit brought under the laws of this
state. In addition, the bill provides that any employee of the state of Minnesota who
is found liable in a civil lawsuit as a result of performing services for this state under
the agreement shall be indemnified by this state to the same extent as an employee
of this state performing the same services for this state. The bill directs DOJ to
represent any employee of the state of Minnesota who is named as a defendant in any
civil lawsuit brought under Wisconsin law as a result of performing services for this
state under the agreement and any employee of this state who is named as a
defendant as a result of performing services for the state of Minnesota under the
agreement in any civil lawsuit brought under Wisconsin law.
taxation
Income taxation
Under current law, for claims filed in 2011, based on property taxes or rent
constituting property taxes from the prior year, the homestead tax credit threshold
income is $8,060; the maximum amount of property taxes, or rent constituting
property taxes, that a claimant may use in calculating his or her credit is $1,460, and
the maximum household income is $24,680. Under the current law formula, as a
claimant's income exceeds $8,060, the credit is phased out and equals zero when
income exceeds $24,680. Also under the formula, if the household income is $8,060
or less, the credit is 80 percent of the property taxes, or rent constituting property
taxes, accrued. For claims filed in 2011 and thereafter, the threshold income,
maximum property taxes, and maximum household income are all indexed for
inflation.
Under this bill, the indexing provisions are repealed and, for claims filed in
2011 and thereafter, the threshold income, the maximum property taxes, and the
maximum household income are the same as those for claims filed in 2011.
Under current law, for taxable years beginning after December 31, 2010, an
individual; an individual partner or member of a partnership, limited liability
company, or limited liability partnership; or an individual shareholder of a
tax-option corporation (claimant) may elect to defer the payment of income taxes on
up to $10,000,000 of the gain realized from the sale of any capital asset held more
than one year (original asset) that is treated as a long-term gain under the Internal
Revenue Code (IRC), if the claimant completes a number of requirements.
This bill creates another income tax deferral under which a claimant may elect
to defer the payment of income taxes on any amount of the gain realized from the sale
of any capital asset held more than one year (original new asset) that is treated as
a long-term gain under the IRC, if the claimant completes a number of requirements.
Current law requires that the claimant must place the gain from the original
asset in a segregated account in a financial institution, must invest all of the proceeds
in a qualified new business venture (QNBV) as certified by Commerce, within 180
days after the sale of the original asset that generated the gain, and must notify DOR
on a form prepared by DOR that the claimant is deferring the payment of income tax
on the gain from the original asset because the proceeds have been reinvested. The
amount of the investment must be equal to or greater than the gain generated by the
sale of the original asset.
The requirements under the bill are the same as current law with regard to
placing the original new asset in a segregated account in a financial institution and
notifying DOR, but under the bill a claimant must invest all of the proceeds in a
qualified Wisconsin business (QWB) as certified by the Wisconsin Economic
Development Corporation (WEDC), within 180 days after the sale of the original new
asset that generated the gain, instead of in a QNBV.
WEDC may certify a business as a QWB if it determines that, in the taxable
year ending immediately before the date of the business's application, at least 50
percent of the business's payroll is paid in Wisconsin and at least 50 percent of the
value of the business's real and tangible personal property is used by the business
in this state. The bill permits WEDC to adopt rules in consultation with DOR, and
it requires WEDC to make a list of certified businesses available at WEDC's Web site.
Under the bill, a claimant may not claim the deferral under this bill if the
claimant also claims the current law deferral or the capital gains exclusion for
Wisconsin-sourced assets, as created in this bill.
Under current law, there is an income tax exclusion for individuals for 30
percent of the net capital gains realized from the sale of assets held for at least one
year, except a farm asset is subject to an exclusion for 60 percent of such gains.
Under this bill, subject to some exceptions, for taxable years beginning after
December 31, 2015, a claimant may subtract from federal adjusted gross income the
lesser of the claimant's federal net capital gain as reported on the claimant's federal
tax return if, in that year, the claimant had a qualifying gain, or the claimant's
qualifying gain.
The bill defines "qualifying gain" as the gain realized by the sale of any asset
that is purchased after December 31, 2010, held for at least five consecutive years,
is a Wisconsin capital asset at the time of purchase and for at least two of the next
four years, and treated as a long-term gain under federal law. A "Wisconsin capital
asset" is real or tangible personal property that is located in this state and used in
a Wisconsin business, or stock or other ownership interest in a Wisconsin business.
Under current law, for each taxable year that a corporation that is a member
of a combined group has net business loss carry-forward from a taxable year
beginning on or after January 1, 2009, the corporation may, after using such net
business loss carry-forward to offset its own income for the taxable year, use the
remaining net business loss carry-forward to offset the income of all other members
of the combined group.
Under the bill, for each taxable year that a corporation that is a member of a
combined group has net business loss carry-forward from a taxable year beginning
prior to January 1, 2009, the corporation may, after using such net business loss
carry-forward to offset its own income for the taxable year, use up to 5 percent of the
remaining net business loss carry-forward to offset the income of all other members
of the combined group.
Under current law, a taxpayer may elect to include in its combined group, for
income and franchise tax reporting purposes, every corporation in its commonly
controlled group, regardless of whether such corporations are engaged in the same
unitary business of the taxpayer. If DOR determines that the election has the effect
of tax avoidance, DOR must disregard the election's tax effect or disallow the
election. Under the bill, DOR may not disallow such an election, or disregard its
effect, regardless of whether DOR determines that the election has the effect of tax
avoidance.
Under federal law, the earned income tax credit (EITC) is a refundable tax
credit for low-income workers. If the amount of the claim exceeds the worker's tax
liability, the claimant receives a check for the excess amount from the Internal
Revenue Service.
Under current law, an individual may claim the refundable Wisconsin EITC if
he or she has one or more qualifying children. The Wisconsin EITC is equal to 4
percent of the federal EITC if the claimant has one qualifying child, 14 percent if the
claimant has two qualifying children, and 43 percent if the claimant has three or
more qualifying children.
This bill changes for the Wisconsin EITC the percentages of the federal EITC
that may be claimed for taxable years starting after December 31, 2010, to 5 percent
if the claimant has one qualifying child, 8 percent if the claimant has two qualifying
children, and 40 percent if the claimant has three or more qualifying children.
The bill adopts, for state income and franchise tax purposes, recent changes
made to the federal IRC related to tax credit bonds, allowing Roth individual
retirement accounts in certain retirement plans, annuity contracts, and long-term
care annuities.
Under current law, the interest income from bonds issued by WHEFA is exempt
from income taxation if a health facility uses the bond proceeds to acquire
information technology hardware or software. Under the bill, the interest income
from bonds issued by WHEFA is also exempt from income taxation if the bonds are
issued to a person who is eligible to receive bonds from another issuer for the same
purpose and the interest income received from the other bonds is exempt from
taxation.
Other taxation
Under the bill, a percentage of the sales and use tax collected on the sale or use
of motor vehicle parts and accessories is deposited into the transportation fund.
Under current law, certain aircraft, motor vehicles, and truck bodies that are
sold in this state, but used outside this state, are exempt from state and local sales
and use taxes. The bill exempts from state and local sales and use taxes modular and
manufactured homes that are sold in this state, but used outside this state.
The bill exempts from state and local sales and use taxes vegetable oil or animal
fat that will be converted into motor vehicle fuel that is exempt from motor vehicle
fuel taxes because it is used by an individual in his or her personal motor vehicle.
Under current law, generally, a railroad company pays public utility taxes
based on the value of its property in this state, rather than general local property
taxes. All such taxes paid by railroad companies are annually distributed to the
towns, villages, and cities in which railroad company property is located. The bill
provides that, beginning in 2011, the amount of such taxes distributed to each town,
village, or city may be no less than the amount distributed to each town, village, or
city in 2010.
transportation
Highways
Under current law, a major highway project is a project that costs more than
$5,000,000, meets other specified criteria, and must generally receive the approval
of the Transportation Projects Commission (TPC) and the legislature (generally
referred to as "enumeration"). DOT may not begin preparing an environmental
impact statement (EIS) or environmental assessment (EA) for a potential major
highway project, and the legislature may not enumerate any major highway project
without TPC approval. Major highway projects are funded from state, federal, and
local funds appropriations and bond proceeds.
Under current law, southeast Wisconsin freeway rehabilitation projects include
certain improvements to state trunk highways located in Kenosha, Milwaukee,
Ozaukee, Racine, Walworth, Washington, or Waukesha county. A project may not be
considered both a major highway project and a southeast Wisconsin freeway
rehabilitation project. Southeast Wisconsin freeway rehabilitation projects, which
include the Marquette interchange reconstruction project, the I 94 north-south
corridor project, and the Zoo interchange project in Milwaukee County, may be
funded only from appropriations specifically designated for such projects or from
bond proceeds. After June 30, 2011, funding under the state, federal, and local funds
appropriations for southeast Wisconsin freeway rehabilitation projects terminates,
but bond proceeds may still be used to fund these projects.
Currently, DOT administers a state highway rehabilitation program. This
program provides funding for state highway improvements that are not major
highway projects or southeast Wisconsin freeway rehabilitation projects and are
funded from state, federal, and local funds appropriations and bond proceeds.
This bill modifies the definition of "major highway project" to recognize two
categories of major highway projects. In the first category, a major highway project
is defined as under current law except that the total cost threshold is increased to
$30,000,000. In the second category, with certain exceptions, a major highway
project is a project that costs at least $75,000,000. For both categories of major
highway projects, DOT annually adjusts the total cost threshold based on an
inflation index. The bill creates a TPC review and approval process for major
highway projects in the second category. Under the bill, DOT may prepare an EIS
or EA for a major highway project in the second category without TPC approval but,
prior to construction of the project, must submit a report to the TPC and request TPC
approval to proceed with the project under a passive review process. Once approved
by the TPC, the project is considered enumerated as a major highway project under
the statutes.
The bill also creates a category of highway projects called "southeast Wisconsin
freeway megaprojects," which are projects on southeast Wisconsin freeways that
have a total cost of more than $500,000,000 as adjusted for inflation annually by
DOT. These projects may be funded only from newly created state, federal, and local
funds appropriations for these projects, along with bond proceeds and an existing
insurance cost-recovery appropriation. No funding for construction of these projects
may be provided without legislative approval by statutory enumeration. The bill
enumerates the I 94 north-south corridor project and the Zoo interchange project as
southeast Wisconsin freeway megaprojects. The bill also authorizes proceeds from
certain general obligation bonding to be used to fund southeast Wisconsin freeway
megaprojects.
Under this bill, southeast Wisconsin freeway rehabilitation projects may also
be considered major highway projects, eligible for major highway project funding, if
they satisfy all criteria and requirements for major highway projects. A southeast
Wisconsin freeway rehabilitation project that is not a major highway project and not
a southeast Wisconsin freeway megaproject may be eligible for state highway
rehabilitation funding.
Under current law, the state may contract up to $553,550,000 in public debt, in
the form of general obligation bonds, for DOT's funding of the Marquette interchange
reconstruction project and the I 94 north-south corridor reconstruction project. This
bill increases to $704,750,000 the limit for this authorized general obligation
bonding and allows proceeds from this bonding to also be used to fund the
reconstruction of the Zoo interchange.
