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January 6, 2004 e-newsletter

In this issue...

Arbitration Law: Needs to be Fixed

The 'Freeze' is Back

Yes, Editorial Board, There is a Madison

Why Electric Deregulation Won't Work

Resolutions Pour in Opposing Anti-Muni. Telecom Bill

News Briefs Upcoming Events

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Arbitration Law Broken; Needs Fix

By Rich Eggleston

A review of recent arbitrators' decisions in collective bargaining impasses across Wisconsin proves the current system is broken and needs a legislative fix, Milwaukee attorney Robert W. Mulcahy, a partner in the Michael, Best & Friedrich law firm, writes in the latest issue of Wisconsin Counties magazine.

 

A case involving West Allis and its police union, which was handed down after the magazine's deadline, reinforces that assessment.

Arbitrator Edward B. Krinsky on Nov. 12 ruled that more than 20 years of contract parity between fire fighters and police officers in West Allis did not warrant awarding the police union a contract with substantially the same terms that fire fighters and other unions had voluntarily accepted. He chose a more generous plan proposed by the police union.

Alliance Endorses Arbitration Fix

At their Nov. 7 meeting in Wauwatosa, members of the Wisconsin Alliance of Cities unanimously endorsed AB 598, a bill to begin fixing Wisconsin's binding arbitration law for municipalities, providing several shortcomings are amended out of the proposal.

The action came after members of the Milwaukee Area Municipal Employers Association explained their unanimous support for the measure.

"We're trying to level the playing field," Menomonee Falls Village Administrator Barb Blumenfield told Alliance city leaders. "Is (the bill) perfect? Absolutely not. Is it a start? Absolutely."

However, in an April 17 decision against Cudahy, arbitrator Herman Torosian ruled that the historic parity between benefits for police and fire personnel outweighed that city's deteriorating financial picture, and decided against a city offer that would have instituted a 5% health insurance premium contribution for fire fighters, which had not been part of a settlement negotiated with the police in 2002.

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Mayor Glowacki

Cudahy Mayor Ray Glowacki said the different standards applied to two Milwaukee suburbs by arbitrators working under the same law shows why the law must be changed.

"It is a law whose time has come to be re-examined," Mayor Glowacki said. "The big argument for arbitration is that it stops strikes. At what cost?" The cost is significant to local budgets and property taxes, he said.

"I think we'd be better off with strikes," the mayor declared. "I really do."

In Cudahy, the cost of health insurance increased from $790 per month per employee in 2001 to $1,475 in 2003. Cudahy, by the way, shouldered a more than $250,000 cut in shared revenue last year.

"Since wages and benefits comprise approximately 60 to 80 percent of the (local) budget, it's no wonder that these decisions are now the subject of rigorous review and analysis," Mulcahy wrote. According to Mulcahy, health insurance has been at the top of issues taken to arbitration since 2001.

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Property Tax Freeze Resurrected

By Rich Eggleston

Some of the same state legislators who predicted massive property tax increases across Wisconsin  in December — a prediction that failed to materialize  —  are again calling for a property tax freeze. Again, their "freeze" wouldn't really be a freeze, but like the "freeze" that Gov. Jim Doyle vetoed, it could have unintended consequences that hobble the state's economy and hinder new job growth.

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Freeze supporter

The latest version is a two-year "freeze" rather than a three-year limit on tax increases, and contains the same allowances for growth as the vetoed measure.

The freeze vetoed by Gov. Jim Doyle, combined with shared revenue cuts, would have forced spending reductions of up to 6.7% in medium-sized cities, and of more than 11% in the largest towns, Andrew Reschovsky of UW-Madison and Steven Deller of UW Extension estimated.

 

Police and fire costs are likely to face the budget ax in the future as local officials continue to comply with the wishes of taxpayers, freeze or no freeze, just as personnel and overtime were trimmed in cities across the state despite the governor's vetoes.

The effect won't be uniform statewide, Reschovsky and Deller wrote.

"The proposed freeze presumes that all new development will pay for itself, and the increase in levy attributable to...new construction can be used to finance ongoing municipal services," they wrote. "Unfortunately, this is not always the case, and for smaller rapidly growing communities this is seldom the case."

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Yes, Virginia, there is a Madison

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Mayor Cieslewicz

After the Wisconsin State Journal ran several pieces on its editorial pages over the last few months suggesting that some ideas emanating from City Hall in Madison were too avant-garde, too far out front, too...well, too liberal, Mayor Dave Cieslewicz decided to respond in a good-natured way.

The State Journal seemed to be suggesting that Madison should be more like Peoria, Ill., or maybe Des Moines, Ia. (The State Journal's parent company, Lee Enterprises, is headquartered in Davenport, Ia.)

The mayor penned a response to Tim Kelley, State Journal editorial page editor, in the form of a parody of New York Sun editor Francis P. Church's immortal reply to Virginia O'Hanlon's entreaty about whether there is a Santa Claus.

"Yes, Tim, there is a Madison!" Mayor Cieslewicz wrote. "Our little town has a long history of not being content with the national status quo. You might even say that it is fundamental to who we are as a city.

"Madisonians see war and they question why it is necessary. They see poverty and they want to do something about it. They see injustice and they want to correct it. They see their state and national governments in the hands of the far right and they look to their local government to represent them..."

For the entire text of the mayor's Op-Ed piece, click here.

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Why Electric Deregulation Won't Work
Have you noticed all the electric rate increases occurring lately in Wisconsin? A 9.5% increase for Wisconsin Public Service Corp., an 11.8% increase for Wisconsin Power & Light, just to name two examples. Businesses are paying 18.3% more for electrical energy than they were in 1997, according to the Milwaukee Business Journal.

What's happening is a property tax for homeowners, a job tax for employers and a regressive tax on the poor, says A.J. (Nino) Amato, president of the Wisconsin Coalition of Energy Consumers and the Wisconsin Industrial Energy Group.

And the solution isn't deregulation of the energy market, Amato says.

"Electricity is not like pork bellies, corn or Bucky Badger sweatshirts. It cannot be stored for future sale," he says. "...As a result, traditional price and market-clearing signals don't work."

He says the state should focus on generation, transmission, renewables and conservation, restore energy conservation money seized to balance the state budget, strengthen the Public Service Commission, include consumer groups in wholesale energy negotiations and involve energy users in long-term planning.

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A.J. (Nino) Amato

"Let's not repeat the California debacle or head down the East Coast-blackout road," he says. "With the right level of engagement from all parties involved, and the voice of the consumer clearly heard, we can move forward again."

See a fuller explanation of Amato's ideas in his Op-Ed piece on the subject here. See the Milwaukee Business Journal story on how companies are being zapped by rate increases here.

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Friends of Municipal Broadband Are Busy

By Scott Meske
Municipal Electric Utilities of Wisconsin

City councils, county boards, village boards and utility commissions across Wisconsin continue to pass resolutions opposing SB 272, the bill that would hamstring local governments in their effort to provide reasonably priced high-speed Internet service in areas the telecommunications and cable companies have ignored.

The support for the “muni position” continues to pour out.  At this point, the bill is in the Assembly Energy and Utilities Committee awaiting a vote. Copies of resolutions along with letters to the committee members should be sent to their legislative offices. If you prefer to send a quick email message, in addition to a formal letter with a news story or resolution, that method works as well. Here are the committee members’ contact information:

Biography Dist Pty Hometown Office Phone E-Mail Address
Fitzgerald, Jeff 39 R Beaver Dam 608.266.2540 rep.fitzgerald@legis.state.wi.us 
Friske, Don 35 R Merrill 608.266.7694 rep.friske@legis.state.wi.us 
Gottlieb, Mark 60 R Port Washington 608-267-2369 rep.gottlieb@legis.state.wi.us 
Honadel, Mark 21 R South Milwaukee 608-266-0610 rep.honadel@legis.state.wi.us
Jensen, Scott 98 R Waukesha 608.264.6970 rep.jensen@legis.state.wi.us 
Krug, Shirley 12 D Milwaukee 608.266.5813 rep.krug@legis.state.wi.us 
Montgomery, Phil 4 R Ashwaubenon 608.266.5840 rep.montgomery@legis.state.wi.us 
Nischke, Ann 97 R Waukesha 608.266.8580 rep.nischke@legis.state.wi.us 
Powers, Mike 80 R Albany 608.266.1192 rep.powers@legis.state.wi.us 
Schooff, Dan 45 D Beloit 608.266.9967 rep.schooff@legis.state.wi.us 
Steinbrink, John 65 D Pleasant Prairie 608.266.0455 rep.steinbrink@legis.state.wi.us 
Travis, David 81 D Madison 608.266.5340 rep.travis@legis.state.wi.us 
Turner, Robert 61 D Racine 608.266.0731 rep.turner@legis.state.wi.us 
Ziegelbauer, Bob 25 D Manitowoc 608.266.0315 rep.ziegelbauer@legis.state.wi.us

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in the news...
Foes and supporters of banning smoking in Oshkosh restaurants are both circulating petitions, one side seeking the ban on smoking in restaurants that the Common Council rejected, the other seeking to prohibit Council action on a no-smoking ordinance. Each side needs just over 2,800 signatures on its petitions to force council action or a referendum.

Common Council President Marvin Pratt became acting mayor of Milwaukee Jan. 2, succeeding Mayor John O. Norquist, who resigned before his term expired to head the Congress for the New Urbanism in Chicago. Mayor Pratt is the first African American to command the helm of Wisconsin's largest city.

John O. Norquist wrote as he prepared to leave office that his legacy to Milwaukee is convincing the city that the way to succeed isn't to act like a suburb. "Downtown needed people living, working, shopping and dining close-by to come alive," he wrote in the Milwaukee Journal Sentinel. "In neighborhoods, the emphasis turned from destroying tax-generating buildings to create suburban-style, right-turn lanes and wider streets to bringing back traditional main streets like historic King Drive, Villard Ave. and Lincoln Ave...we recognized that the city needed to embrace urbanism and stop trying to turn the downtown into a sterile, suburban-style office park."

He said his team also reformed a city permitting process "that seemed designed to slow-torture developers." Story here.Can you imagine how former Mayor Henry Maier would have relished getting the last say in the old Milwaukee Journal?

Gov. Jim Doyle will hold the first in a series of town hall meetings in Stevens Point on Jan. 7 to sound out citizens' concerns, needs and priorities for the coming year. The meeting begins at 5 p.m. in the Portage County Annex, 1462 Strongs Ave.

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Blue Harbor Resort when finished

The Blue Harbor Resort and Conference Center in Sheboygan, where the Alliance is having its September, 2004 meeting, is about half finished, according to the Sheboygan Press. Story here.

The $54 million project is due to be completed by Memorial Day.  So far, the only other meetings for which we have definite dates are the March 11-12 meetings in Madison and the July 29-30 meetings in Marinette. Details here for Madison.

Happy 150th birthday, Green Bay! 2004 marks Green Bay's sesquicentennial, and Mayor Jim Schmitt is planning a birthday dinner Feb. 27, featuring the unveiling of a new city flag, a parade in August and other events. Story here.

Two Rivers lost $207,000 in shared revenues — a revenue loss equivalent to 5.5 percent of the city's total tax levy — but through attrition, layoffs and a management wage freeze, emerged without a tax increase. Story here.


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Upcoming Events   




(click on underlined text for more)
Jan. 7 Partners in Local Government Madison
Jan. 7 Gov. Doyle Town Meeting Stevens Point
Jan. 12 Jobs session may/may not begin this week Madison
Jan. 14 Hearing on SB 323, new annexation process 10 a.m. 330 SW
Jan. 20 Regular legislative session resumes Madison
Feb. 12-13 Governor's Conf. on Economic Dvlp. Madison
Feb. 13 Deadline for Brownfields grant applications statewide
Feb. 17 Spring primary, presidential primary statewide
Feb. 21 Gov. Doyle State-of-State speech Capitol
Feb. 24-25 Trans. Dvlp. Assn. Fly-In Washington, D.C.
Feb. 27 Green Bay's 150th birthday mouth of the Fox River
March 11-12 Alliance Meetings Madison
March 19 MASPA conference on state/local budgets Oshkosh
April 6 Spring general election statewide
May 19-21 Governor's   Conference: Grow Wisconsin Milwaukee
Sept. 26-28 Wis. Counties Assn. annual meeting Milwaukee

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THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881