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The State Budget: It's Time to Focus on Feeding The Revenue Stream
(5/27/09)


    Economic gloom continues to consume policy shapers’ thoughts and lawmakers’ time. It’s certainly doing a number on the general public’s confidence. The good news? There are people in high places who get it. Particularly at the state level.

    It began with Gov. Jim Doyle’s 2009-2011 budget proposal, which provided some potential pain for public employees but also some relief, as reported in the February issue of AFSCME 48. Then there’s the new-look Legislature, where working family friendly lawmakers –– many of whom you helped elect –– now rule. They get it, too. Then there’s all the work you’ve been doing, from participating in events like Lobby Day 2009 to living your increasingly activism-oriented lives. It’s all helped put working family issues front and center.

    “The great thing is that we have complete access to the people who are in charge of reviewing the budget legislation,” says AFSCME lobbyist Susan McMurray. “The access is incredible, and it’s a two-way street. We’ve never experienced this before.”

    Not that it’s all hunky dory. Far from it. The budget deficit is scary and getting scarier by the minute. In early May, Gov. Doyle announced that the state’s budget deficit –– originally pegged at $5.9 billion — has increased by as much as $1.6 billion, due to the declining economy and rapidly falling income tax collections. Shortly thereafter, the Legislative Fiscal Bureau came out with a slightly higher number.

    Meanwhile, the governor said he’d be invoking the state’s authority to implement furloughs of up to eight days per year as allowed under the current state contract. Other cuts also would be considered, he added.

    As of late May, the budget ball was in the Joint Committee on Finance’s (JFC) court.

    “Everything is on the table for consideration at this time,” as noted in the May 6 edition of Wisconsin AFSCME Legislative Report.

    A possible silver lining. But if there is a “silver lining,” as McMurray put it an a legislative report to attendees of Council 40’s annual convention last month in Stevens Point, it’s this: “The Governor and lawmakers realize and are taking action to close the loopholes and increase select fees because they realize that Wisconsin cannot eliminate the deficit by relying on cuts and federal aid alone,” she said. “These new revenue sources are essential to preserve public services and AFSCME member jobs, and will help our state achieve tax fairness for Wisconsin’s working families.”

     AFSCME lobbyists –– all who are concerned about this state’s future, really –– will continue to promote and preach the “new revenue stream” mantra in the months, even years, ahead. How effective we are at coming up with new sources will determine where Wisconsin rates on the quality-public-services meter.

     In the meantime, there have been more than a few AFSCME budget-writing-related victories in recent weeks. Here’s what you’ve helped your Union accomplish in Madison through mid-May:

     Automatic deduction for retiree union dues. On April 21, JFC voted to amend the state budget to require the state Department of Employee Trust Funds (DETF) to allow annuitants to voluntarily select to have monthly union dues paid from their pension checks.

     The proposal was authored by state Rep. Cory Mason (D-Racine) and Sen. Dave Hansen (D-Green Bay). AFSCME had worked for years to advance legislation to authorize an automatic dues deduction option for retirees, and faced a variety of obstacles –– political as well as logistical. But Rep. Mason and Sen. Hansen worked with AFSCME and others to craft a proposal that will enable retirees to select automatic dues deduction starting on Jan. 1, 2010.

     Minority party members on the committee attempted to derail the proposal by offering amendments to the budget amendment, which were successfully fought off.

     “AFSCME members owe thanks to Rep. Mason, Sen. Hansen, Rep. Mark Pocan, Sen. Mark Miller and Sen. John Lehman for their efforts to gain the dues deduction amendment for union retirees,” noted the authors of the April 22 edition of Wisconsin AFSCME Legislative Report.

    Retirement benefits parity for school support staff. On April 21, JFC Committee voted to adopt an AFSCME-supported budget proposal that expands eligibility for retirement benefits to school support staff.

     Under current law, to be covered under the Wisconsin Retirement System (WRS), an individual must work for at least one-third of full-time employment, which is defined as 600 hours per year. However, for teachers, one-third employment is only 440 hours per year. The governor’s proposal would apply the 440-hour rule to school support staff, as well.

     The DETF estimates there are 8,424 educational support staff workers who do not currently work at least 600 hours and are not eligible for the WRS. This proposal will go into effect when the budget becomes law, and would not be retroactive.

     John Doe. In addition to approving the aforementioned Income Maintenance legislation (see page 1), the Senate and Assembly approved the long-awaited (and AFSCME-backed) John Doe reform measure (AB 78 and SB 51) on April 28.

     The bill was passed with one amendment, which contains three parts: it directs judges to go to special prosecutors rather than district attorneys in John Doe complaints involving district attorneys; it authorizes judges to require law enforcement agencies to provide any investigative reports to the judge that the agency might have that relate to the John Doe petition; and it clarifies the indemnification language for payment of attorney fees for state employees who are the subject of John Doe investigations. The amended measure passed on May 13.

    Labor history. In early April, the Assembly Labor Committee took up AB 172, which would require the teaching of labor history. Authored by Rep. Andy Jorgenson (D-Fort Atkinson), it’s a measure AFSCME and the AFL-CIO had been pushing for years. On April 28, the Assembly approved with a last-minute substitute amendment that “slightly changes the bill,” according to the April 29 edition of Wisconsin AFSCME Legislative Report. It now requires that schools incorporate, in the academic standards for social studies, the history of organized labor and the collective bargaining process.

     Two good JFC calls. On May 12, JFC began crafting a plan that would consolidate most of the state’s Human Resources functions under the Office of State Employee Relations. Under JFC’s action, the Department of Administration Secretary will have to submit a plan for the consolidation for approval to JFC. Once enacted, the provision should help create a more uniform implementation of state rules and regulations across various state agencies, as well as more cohesive understanding of collective bargaining agreements on the employer’s side, AFSCME lobbyists believe. Additionally, JFC adopted a provision to increase the number of tax auditors working for the Department of Revenue. The 31 new auditors will help collect $68 million over the biennium of unpaid or under-reported taxes, JFC projects.

     That $68 million’s drop in the bucket, of course, but it’s a revenue-stream start. Your Union will continue deliver the revenue message –– and offer up ideas regarding same –– in the weeks and months ahead.

     Specifically, AFSCME’s been lobbying for taxing 100 percent of capital gains (instead of 60 percent per Gov. Doyle’s recommendation). We’ve also asked for a repeal of the ATM/computer property tax exemption and the restoration of the estate tax on estates valued over $1 million. AFSCME believes these items would bring in an additional $480 million in this biennium.

     Again, the good news is we’re being heard –– in the Governor’s office, in the Senate and Assembly, and within the JFC. Although the committee’s co-chairs — Rep. Pocan and Sen. Miller –– say cuts are coming, they’ve also clearly stated that cutting more corporate tax loopholes and developing new revenue-raising options are on the table, too.

     No question, we’re at a critical juncture. At Lobby Day, AFSCME lobbyists for the day applauded Gov. Doyle for “having the courage” to close some loopholes and find ways to raise revenue, something that’ll be even more critical when we’ve tapped all the federal stimulus dollars we’re going to get, as McMurray told Council 40 convention-goers.

     We’ll need to keep on applauding the courageous in the weeks and months ahead. It also wouldn’t hurt to exhibit a little of it ourselves.

     “You can expect that those businesses and individuals are going to holler, and use their corporate mouthpieces to bash those legislators who voted on the side of working families,” she said. “The least we can do is to be there for those legislators who are going to be the targets of those negative corporate ad campaigns.”

     We’ll be there.


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