June 8, 2007                                                               Volume #29, Issue #18


JOINT FINANCE WRAPPING UP - The Legislature’s Joint Committee on Finance is fast approaching the
end of its work on the Governor’s budget.

Last Thursday the committee voted on the DOT budget in the wake of good news that the proposed 2.5%
oil company profits tax will generate about $70 million more than originally forecast. Republicans offered
an amendment that would eliminate the oil profits tax, while the Democrats’ amendment kept the oil tax.

Both parties’ amendments would have provided a 2.5% boost in aid to local governments for road projects.
The Democrats’ motion reduced the state’s bonding debt and would have implemented "combined
reporting" taxing of corporations, which would require corporations to pay income taxes on all of their
subsidiaries. The GOP amendment would have funded road projects but at a high price - a $160 million
hole in the state’s general fund.

Both motions failed on 8-8 votes, so the Governor’s DOT budget prevailed. It is likely that the Senate will
take up a version of the Democrats JFC package and the Assembly will take up a version of the
Republican package when the budget moves on to each house.

Also this week the Finance Committee took up the Department of Corrections budget. AFSCME has been
lobbying committee members to support the Governor’s proposal relating to the implementation of GPS
tracking of serious child sex offenders, instead of privatizing the service, as some lawmakers have been
promoting. We also have been pushing for adequate staffing and funding for the adult and juvenile
institutions.

The committee unveiled a comprehensive package for corrections. The package highlights:

-- Raises the population estimate for juvenile corrections (from 560 to 583);

-- Boosts the daily rates charged to counties from $209 to $259 in ‘08 and $268 in ‘09, which is slightly
    lower than what the Governor had recommended;

-- Rejects the Governor’s call to eliminate 30 long time vacancies in the JCIs, and kept 15 vacancies to
    deal with increased population in the juvenile institutions;

-- Requires DOC to respond to the upcoming audit of the effect of providing juvenile court jurisdiction for
   17 year olds (The audit is being done by the Legislative Audit Bureau and is expected in the fall of
   2007);

-- Provides additional funding and 50 new security staff positions to deal with overtime in the adult
    institutions;

-- Provides more funding and staff for inmate health care (positions for Taycheedah, Dodge and Fox
    Lake);

-- Modifies the Governor’s plan to fund the state’s new GPS tracking of serious child sex offenders which
    keeps the service in-house and creates 70 new positions;

-- Expands the community corrections alternative to revocations program;

-- Requires DOC to report to lawmakers on the effectiveness of treatment alternative and division
    programs by May 1, 2008.

On Friday, June 8, the Joint Finance Committee will vote on nursing home funding, the proposed increase
in the cigarette tax, state employee compensation reserves, taxes, and more. AFSCME has been hovering
over committee members to urge them to vote for an increase in funding for nursing homes and to support
the compensation reserves.

DEPARTMENT OF EMPLOYEE TRUST FUNDS (ETF) - The committee voted 12-4 to add 14.5
permanent positions at ETF. The new positions were created to deal with the increase in retirements of
public employees in the Wisconsin Retirement System.

DEPARTMENT OF NATURAL RESOURCES - The committee adopted the Governor’s recommendation
to add 10 LTE positions to serve as boat ambassadors to help manage aquatic invasive species.
AFSCME lobbied to have the $215,000 associated with creating these LTE positions reallocated to fund
additional overtime for DNR Conservation Wardens, and have the Conservation Wardens take on the
work the department planned for these LTE’s. AFSCME will continue our efforts in this regard when the
budget reaches the Senate and Assembly.

CREDITABLE MILITARY SERVICE UNDER THE WRS - AB-43 and SB-19, which would give those who
served in the military credit under the WRS, have been recommended for passage by the respective
Assembly and Senate veterans’ committees, and are now before the Joint Survey Committee on
Retirement Systems. In previous legislative sessions, this legislation has been stalled due to lack of
information about the potential cost of the new benefit to the WRS. This week the Joint Finance
Committee approved an amendment authored by Rep. Scott Suder (R-Abbotsford) and Sen. Bob Jauch
(D-Superior) to pay for an actuarial study to identify the costs of AB-43/SB-19. This way, lawmakers can
have the information they need to deliberate over this legislation.



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

Wisconsin State Legislature: www.legis.state.wi.us/

"Who Are My Legislators": www.legis.state.wi.us./waml/

State of Wisconsin: www.wisconsin.gov/state/home

Wisconsin Legislative Reference Bureau: www.legis.state.wi.us/lrb/

Wisconsin Legislative Council: www.legis.state.wi.us/lc/

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

Wisconsin Ethics Board: http://ethics.state.wi.us


LEGlSLATlVE HOTLINE NUMBERS:
In Madison, call 266-9960 / Outside Madison, call 800-362-9472