In the past two years, we've worked with the University to add 300 instructional staff to meet the demands of a growing enrollment and increase the number of college degrees. Now, we'll reduce the number of administrators by 200 … but increase faculty by another 125.
With a new Star Faculty initiative, the University will be able to pay more competitive salaries so we don't lose our best and brightest to other institutions.
The University of Wisconsin system is the finest in the nation … and we need to make sure it also remains one of the most affordable.
That's why this budget will hold tuition increases between 5 and 7 percent.
My budget ensures that Wisconsin will rank near the bottom in the Big Ten. Not in football, but in tuition.
To protect students whose talent exceeds their ability to pay, financial aid will increase at an even faster rate – a 34 percent increase, or $23 million.
Together with the last budget, we will have more than doubled financial aid for UW students since I took office.
On top of that, my budget significantly expands the college tax deduction, so Wisconsin families can deduct the full cost of college up to the average price of tuition at the University of Wisconsin.
I came to the Governor's office after 12 years as Attorney General. But I think the experience that prepared me the most was being a parent.
Any parent can tell you that there is no more life-altering experience than looking into your child's eyes for the first time, and understanding the awesome responsibility you have for their future.
As a parent, you have take stock of your priorities, plan ahead, sacrifice and save money for their education. You do whatever it takes to keep them safe, healthy, happy, and ready to seize all the opportunities of life.
Those are the priorities of Wisconsin's families, and they should be the priorities of Wisconsin's budget.
As part of our Kids First plan, we'll make the investments that support families and help children get off to the right start.
Nine Wisconsin counties offer home visits and parent education services to new families as part of a pilot program. Kids in this program were 30 percent more likely to be immunized, half as likely to go to the emergency room, and one quarter as likely to be abused. It's time to take this effort statewide.
My budget funds a new initiative that, when fully implemented, will make home visits available to every new parent in Wisconsin. In the first phase, we are investing $1.2 million to provide home visits to families of children most at risk.
We're increasing mental health and substance abuse screening for families in the Child Welfare system, and expanding access to treatment.
We're increasing reimbursements for foster families, and expanding Medicaid coverage so that foster children don't lose their health insurance when they turn 18. We're creating an independent Ombudsman for Milwaukee Child Welfare – to bring the system more oversight and accountability.
This budget implements my Quality Care for Quality Kids initiative. We will rate the quality of child care centers on a five star system, and make those ratings available to parents. We'll use those ratings in the state's subsidized child care program for low-income families – creating a powerful incentive to provide high quality child care.
My budget also protects Wisconsin's bedrock commitment to SeniorCare and BadgerCare.
Because of the way Medicaid is structured – and because Washington wants to back away from its commitments – SeniorCare and BadgerCare face real dangers in the coming years.
The federal government is forcing states to choose between funding education or funding Medicaid – and that is dead wrong.
Medicaid is supposed to be a partnership between states and the federal government to provide health care to our most vulnerable people. Unfortunately for Wisconsin taxpayers, "partnership" means about as much to the federal government as "sportsmanship" means to Randy Moss.
For some people in Washington, Medicaid "reform" means making it easier for states to cut people off. That's not reform; it's retreat …and America deserves better.
Along with Governors of both parties, I'm going to keep fighting for national Medicaid reforms that will make the system more flexible and provide the resources our people need.
In the meantime, we're doing everything possible to manage this difficult problem in Wisconsin.
We created a preferred drug list to save money on prescriptions. We saved money on medical equipment though bulk purchases. We went to a single provider for eyeglasses, and a single provider for hearing aids. We expanded the use of managed care. We moved people out of costly institutions so they could live independently in the community. And we saved taxpayers $93 million by re-bidding a costly Medicaid contract – something previous administrations hadn't done in a decade.
But even with all these reforms, we still face a significant deficit in Medicaid.
To balance this deficit – and avoid cuts in education – my budget does the following:
First, we're launching a new initiative to reduce medical errors. In a system that still relies on handwritten prescriptions and medical records, mistakes are all too common. By investing $10 million to promote the use of technology, like computerized medical records, we'll help avoid mistakes that end up costing taxpayers and sometimes costing lives.
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Second, we'll generate an additional $122 million in new federal revenue by imposing an assessment on providers. Many providers will benefit because those funds will be used to raise reimbursement rates.
Like dozens of other states, we have been forced to take this action because of the bizarre rules the federal government has set up for Medicaid. Unfortunately, it's one of the only ways a state can get additional funding and avoid having to cut people off.
Third, we'll transfer about $180 million from the Patients' Compensation Fund, which will have grown by almost $220 million over four years. An independent analysis recently showed that the fund has at least $200 million more than it needs to cover any imaginable claims.
Again, this is a choice I'd rather not make. But without those funds, we'd be faced with alternatives like ending SeniorCare and BadgerCare for more than 180,000 people. It's simply indefensible to say we have three quarters of a billion dollars sitting in a fund that's totally off limits – even the interest is totally off limits – and so as a result we're going to take people's health care away.
Fourth, we're launching a significant reform of long-term care, which accounts for more than half of Medicaid spending.
Right now we're taking people who could live happily in their own homes with just a little help, and we're forcing them into nursing homes. It makes no sense – not for our parents, and not for taxpayers.
Tonight, I'm setting an ambitious goal for our state: in the next eight years, let's reduce the number of people in nursing homes by 25 percent.
This transition won't happen overnight. While it ultimately will save us hundreds of millions of dollars, those savings won't come until future years.
In the meantime, to maintain nursing home services while we make this transition -- and to make the up front investments we need -- my budget calls for additional bonding authority – up to $130 million depending on how the economy does. That's less than 1 percent of our budget for next year, but it also represents nursing home care for 3,500 seniors.
If revenues improve over the next several months, as we hope and expect, we should set it aside for Medicaid. Depending on how well the economy does, some of the measures I've just outlined might not be necessary. But what's most important is that we have a Medicaid budget that is balanced, that doesn't rob education, and that protects health care for those who need it most.
I've spent much of my life in law enforcement. Keeping our communities strong and our families safe is one of the most important jobs we have. I've put bad people behind bars, some of them for life. I've been with families torn apart by senseless acts of violence. This is important to me. And it's personal.
The things we've done over the past few years are starting to pay off. Wisconsin is one of the safest states in the nation – and crime is at a 30-year low.
As Governor, I have the opportunity to do things I couldn't as Attorney General. We're setting a new direction for the Department of Corrections.
First, there's no question we need to lock up the most violent and hardened criminals. But when a nonviolent offender is ready to come forward to improve his or her life, we need to provide the help they need. Not only is it the right thing to do, but it's the wisest investment we can make.
My budget will create new alcohol and drug treatment programs at Taycheedah and Racine Correctional Institutions. Combined with the last budget, we will have increased our drug treatment capacity by more than 2,200 inmates a year.
My administration has also created an earned release program that allows judges to sentence offenders to shorter terms if they complete treatment. This budget expands the program with 200 beds at correctional centers in southern Wisconsin.
Next, when young people come into the Corrections system, we've must get to them early before they become hardened, career criminals.
My administration has instituted boot camps for young offenders to teach discipline and respect for authority … and give them a chance to change their lives.
Third, we need to improve our probation system. Right now, it's simply overburdened. We spend a lot of time supervising the least dangerous people … and we don't have the resources to properly supervise the most dangerous. We need to put the emphasis on protecting public safety. My budget cuts probation time for misdemeanors by half, so that agents can spend more time with serious offenders. The money we save will help us make a major investment in drug and alcohol treatment so we'll have less crime and fewer parolees in the first place.
Fourth, we need to take a hard look at how we sentence people who are non-violent and who are drug or alcohol dependent. That's why I am directing the Wisconsin Sentencing Commission to report back to us by the end of the year so we can reform the system to work better for everyone – including Wisconsin taxpayers.
Finally, the single best thing we can do to reform corrections is to support quality day care, education, foster care, and the fight against child abuse. It's estimated that for every dollar we spend on early education, we can save up to 17 dollars in social welfare costs, including the prison system. Quite simply, the best way to fight crime is to invest in kids.
They say your budget is the clearest reflection of your values.
This budget reflects not only my values, but the values I believe we share as citizens of this great state.
It is balanced and fiscally responsible. It makes an historic commitment to education. It reforms health care, protects our environment, invests in our great University System … and it does not raise a single tax.
Most of all, this budget protects our schools and the quality of local services, while freezing property taxes.
I've talked a lot about numbers tonight, but that's not what this budget is about.
It's about the people of Wisconsin, and I'd like you to meet some of them.
Stand up folks.
This budget is about Jeanne Gorman, who depends on Senior Care to afford her medicines. It's about Monica Williamson, who's studying marketing at Moraine Park Technical College. It's about Gary Welch, whose job is safe because we're investing $6 million to improve the harbor in Sturgeon Bay. It's about Barb and Ray Jones, who have been foster parents for 25 years and have cared for more than 60 kids. It's about Alex Wagner, a student at UW-Milwaukee, who attends with the help of financial aid. It's about Joan Davis, a four-year-old kindergarten teacher. It's about Mark Riechers, who raises livestock and hopes to upgrade his operation. And it's about Keith and Mary Louise Symon. They're senior citizens who struggle each December to pay that property tax bill. But they are also grandparents, and more than anything else, they want their grandchildren to have the very best education Wisconsin can provide.
These are the faces of Wisconsin. They are looking to us for leadership … and we cannot let them down.
Our success or failure won't be measured in charts or graphs or budget tables, but in the fulfillment of their dreams.
Let's be worthy of their trust, and now, let's get to work.
On Wisconsin.
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Adjourned.
7:55 P.M.
