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Jan. 27, 2003 e-newsletter

In this issue:

Shared Revenues funded with one-time money

Freeway Alternative Pushed Lobbying Report

News Briefs

Upcoming Events

Health Insurance Costs:

Alliance Costs Up Remedies Eyed

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One-Time Money
McCallum Budget Adds to Doyle's Woes
While the Legislature did not cut shared revenues in former Gov. Scott McCallum's budget repair bill last year, it did retain  McCallum's plan to pay for a big chunk of shared revenues with one-time tobacco money. 

"As a result, these (shared revenue) programs will require a GPR funding increase of $608.6 million over the base," Rick Olin of the Legislative Fiscal Bureau said in a memo to Rep. Dan Schooff (D-Beloit).

Gov. Jim Doyle described the funding maneuver as a "pretty cynical play."  The governor has emphasized that in drafting the next state budget, he is aiming for the current shared revenue  funding level.

Local governments were informed last Sept. 15 of what their shared revenue payment would be in 2003, and built their budgets from that level.

The governor's team is crafting a budget bill that Doyle has said will include "enormous" cuts. See the Milwaukee Journal's story on Doyle's plight here.

Reaction to  Special  Session
on 2003 Deficit

Gov. Jim Doyle's plan to take a initial whack at a $452 million 2002-03 state deficit showed "leadership and resolve," Milwaukee Mayor John Norquist said.

But the Transportation Development Association noted that $22 million in cuts at the DOT "won't solve the state's fiscal problem."

For The Capital Times' reaction story, go here. For Doyle's press release, go here. For Mayor Norquist's, go here.

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Alliance members ante up for health insurance

Health insurance costs in 18 Alliance cities were collectively a $13 million bigger budget item this year than last, a 16% increase at a time wages in those cities rose 2.7%, according to preliminary results of a health-insurance cost survey we are conducting.

In La Crosse,  the city's three largest labor unions are heading toward arbitration over health insurance costs.

In Oshkosh, there's an employee premium contribution of between about $13 and $34 a month this year. There wasn't in 2002.

Waukesha has a premium contribution for non-represented employees in 2003; it didn't last year. And in Beaver Dam, employee premium contributions have increased.

The trend for new or increased employee contributions is widespread.  In Eau Claire County, for example,  employees represented by two of the county's largest unions will pay a portion of their health insurance premiums for the first time, the Eau Claire Leader-Telegram reported. See that story  here.

 

City

Premium
Increase*

Beaver Dam

17.2%

Beloit

23.0%

Cudahy

25.0%

De Pere

15.0%

Fond du Lac

28.1%

La Crosse

23.1%

Manitowoc

17.8%

Marshfield

25.2%

Oshkosh

10.0%

Sheboygan

14.6%

Stevens Point

8.0%

Waukesha

9.4%

Wauwatosa

9.4%

West Bend

17.6%

Wis. Rapids

19.0%

* Employer's share / family plan
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Health Cost Remedies Proposed

mccormick2.jpg (21193 bytes)
Rep. Terri McCormick

Rep. Terri McCormick (R-Appleton) has unveiled a series of proposals to hold down the cost of health insurance for local government.

Among the proposals: use the state's local government insurance pool as a "benchmark"  around which benefits would not be subject to bargaining as long as they are substantially similar; open up claims experience and bids received by local governments to public scrutiny; and offer more options through the state's local government pool. See the bill drafts prepared for her task force here.

Going to a statewide prescription drug management system alone could easily save state and local governments more than $26 million a year, McCormick estimated.  That includes more than a million dollars just for local governments currently in the state pool, $7.6 million in state employee benefits; and nearly $6 million for Badger Care and Senior Care coverage and $11.2 million for Medicaid coverage.

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Doyle  Eyes Freeway Alternative

Milwaukee Mayor John Norquist's plan to save $361 million in reconstruction of the Marquette Interchange is under serious consideration in the Doyle administration, the Milwaukee Journal Sentinel reported Jan. 26. Administration Secretary Marc Marotta told a community meeting in Milwaukee that a decision hadn't yet been made.

Marbquette Interchange
The Marquette Interchange

.Mayor Norquist's plan to rebuild the interchange would cost $550 million.  That's small only compared with the state's blueprints for the project. The mayor's plan would detour traffic around downtown Milwaukee, reduce construction traffic jams and eliminate plans to build a double-decked freeway segment on the city's west side. See the Jan. 26 story here. See an earlier Journal Sentinel story here.

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News Briefs
                                                      (Clicking on underlined test takes you to news stories cited.)

You can't slam Marshfield, but some telephone company may have tried. Long distance service at Marshfield  City Hall was switched from one provider to another earlier this month, and city officials want to know how it happened, the Wausau Daily Herald reported. See the story here.

The demands of homeland security are straining police and fire budgets in the Fox Valley, the Appleton Post-Crescent reports. Its story was prompted by a National League of  Cities survey in which one of four cities responding nationally predicted they would have to forego some of their normal public safety activities to meet the demands of anti-terrorism preparedness. See the Post-Crescent story here.

Menasha, Neenah, Oshkosh and Winnebago County officials are debating whether a health department merger would save taxpayers’ money. Some are optimistic, others are skeptical, the Oshkosh Northwestern reports. See the story here.

Rep. Michael Huebsch (R-West Salem) says he doesn't like Wisconsin's annexation or incorporation processes, so he is having a bill drafted to allow the town of Campbell outside of La Crosse to incorporate without going through the statutory process. Mayor John Medinger of La Crosse says chances are slim, but the bill could pass. See the La Crosse Tribune story here.

The state Department of Administration has ruled that folding the Marathon County town of Kronenwetter into the new village of the same name is "against the public interest." The state told local officials that using annexation law to swallow the town whole circumvents the municipal consolidation law, s. 66.0229, Stats.

The Nebraska Supreme Court has declared unconstitutional a state law similar to one the phone companies have tried to get enacted in Wisconsin that forbade municipal utilities from offering telecommunications services. The city of Lincoln wants to lease some of its excess capacity to promote economic development, including providing Internet services to residential and business customers. The court ruled that the 1996 Telecommunications Law prohibits barring "any entity" from the telecommunications business, and that applies to Nebraska cities. See the Omaha World-Herald story here.

Delegates to the Wisconsin Association of School Boards convention overhwelming defeated a plan to seek an exemption from Wisconsin's Open Records Law for e-mails to school board members. The Oshkosh Northwestern discovered that local school board members were violating the law by deleting e-mails involving a boundary dispute. After the story appeared, the City of Oshkosh posted a simple red-letter reminder on its web site: All e-mail sent to the City of Oshkosh is subject to the Wisconsin open records law.

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Upcoming Events

2003 (click on underlined text for more)
Jan. 28-30 Legislative Floor Periods begin
Jan. 30 Gov. Doyle State of the State address 7 p.m.
Feb. 6 (cq) DOT TEA-21 reauthorization meeting 1 p.m. Hill Farms S.O.B.
Feb. 12-14 2003 Gov's Econ. Dvlp. Conference Madison
Feb. 15 annual Superior Days reception 5 p.m. Inn on The Park
Feb. 18 Gov. Doyle budget address
March 12 Assembly for Local Arts - Arts Day Madison
March 20-21 Alliance meeting Madison
April 9 MEUW Legislative Rally Madison
May 22-23 Alliance meeting
June 26-27 Local Telecom Regulation Conference UW-Madison
Sept. 18-19 Alliance meeting Green Bay
Nov. 6-7 Alliance meeting Wauwatosa
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THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881