- We defeated all of the attacks on state and municipal collective bargaining laws.

- We defeated all attacks on public employee pensions, health care and sick leave benefits, and rolled
    back efforts to privatize public services.

-  UW System: gets nearly $400 million in additional funding, in spite of efforts by some Assembly
   Republicans to cut $100 million from the UW System. This includes funding for the UW’s "Growth
   Agenda" which calls for investing nearly $30 million to revitalize UW campuses across Wisconsin.

-  Public schools: the State continues its commitment to pay for 2/3 the cost of education, funneling some
   $341 million into schools over the two-year budget cycle. State aid for schools is about $6.2 billion a
   year.

-  State Employee Compensation Reserves: efforts to gut the Comp Reserves were defeated. The
   actual amount is less than what the Governor had originally proposed because increases in State health
   insurance costs are less than expected when the budget was introduced 10 months ago.

-  Child care (Wisconsin Shares): Senate Democrats and the Governor worked with AFSCME to secure
   a $69 million increase in funding for child care subsidies, filling a deficit in child care services to low-
   income families.

-  Nursing homes: for the first time in a long time, nursing homes will get an increase of 5% in
   reimbursement rates; the increase goes into effect in the 2008-09 state fiscal year.

-  Juvenile corrections: the Governor had recommended $27 million in new money to help counties pay
   the cost of incarcerating youth offenders in the State’s three correctional institutions. The increase was
   tied to the proposed hike in the "real estate transfer fee". Although the fee hike was eliminated,
   legislators approved $23 million for county juvenile corrections.

-  Transportation funding: the budget provides:
    - A 3% increase or $31 million for General Transportation Aids
    -  A 2% increase or 2.8 million for the Local Roads Improvement Program
    -  A 2.5% increase or $44 million for State Highway Maintenance services
    -  $12.8 million more for Mass Transit services ($8 million will go to Milwaukee County)

-  Corrections: the corrections budget is nearly identical to what was adopted by the Joint Finance
   Committee in the spring. That includes $310 million in new funding, 50 new security staff positions,
   staffing and funding for the GPS tracking of sex offenders program, plus new funding for inmate health
   care services. It added funding and staff for the "earned release" program adopted by the State Senate.

THE DOWNSIDE TO THE BUDGET:

AFSCME’s primary concern is that there is NO new money for Shared Revenue (state aid to local
governments to offset the costs of local services) and a 2% cap on local government’s ability to increase
revenue. Governor Doyle’s original budget had recommended a $15 million boost for Shared Revenue,
which unfortunately did not survive the final budget. AFSCME remains concerned about the State’s
shortfall in commitments for local services, which we already know will have serious impacts on the City
of Milwaukee.

This is why we are continuing our lobbying efforts with the Governor to eliminate or significantly alter the
2% cap on levy limits. While the Governor cannot increase funding for Shared Revenue with his line-item
veto, he does have the ability to free local governments to raise revenue for themselves should they need
it to fund public services.

HEALTH CARE IN THE BUDGET:

Lawmakers approved the Governor’s proposal to expand BadgerCare Plus health care services to low and
moderate-income families. "BC+" not only helps working families get affordable health care coverage, but
it seeks to streamline the maze of Medicaid eligibility rules to make it easier for plan participants and
county economic support staff (AFSCME members!).

Earlier this fall, Senate Democrats withdrew "Healthy Wisconsin" but pledged to keep pushing their health
care plan through separate legislation.

The budget provides a phased-in tax deduction for working people who have to pay some portion of their
health insurance premiums. However, it does not create a state tax break for health savings accounts.

A FINAL WORD ON THE BUDGET:

It is not possible to list all of the provisions of the new $60 billion 2007-09 State budget. For more
information, the Legislative Fiscal Bureau prepares a handy summary of the budget. The document is
available online at www.legis.state.wi.us/lfb (look under "publications"). Also, contact your AFSCME
lobbyists at 608-836-6666 or your AFSCME Council staff.



LEGISLATIVE WEBSITES. . .For those "online", here are some good info spots:

Wisconsin Legislative Fiscal Bureau: www.legis.state.wi.us/lfb/