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February 11, 2009 Outline of Plan From Governor Jim Doyle

JIM DOYLE

GOVERNOR STATE OF WISCONSIN
P.O. BOX 7863, MADISON, WISCONSIN 53707-7863 (608) 266-1212 FAX: (608)
267-8983

WWW.WISGOV.STATE.WI.US

February 11, 2009

The Honorable Russell Decker The Honorable Mark Miller, Co-Chair
Senate Majority Leader Joint Committee on Finance 211 South, State
Capitol 317 East, State Capitol Madison, WI 53702 Madison, WI 53702

The Honorable Michael Sheridan The Honorable Mark Pocan, Co-Chair
Assembly Speaker Joint Committee on Finance 211 West, State Capitol
309 East, State Capitol Madison, WI 53702 Madison, WI 53702

Dear Senator Decker, Speaker Sheridan, Senator Miller and
Representative Pocan: 

Our nation faces a severe economic downturn. Millions of jobs have
been lost, the stock market has dropped precipitously from its peak
and consumers have cut back on spending. Current economic conditions
are having a dramatic affect on state revenue forecasts, with nearly
every state forecasting large budget deficits in this year and the
next two years.

Wisconsin is also seriously affected by the economic downturn.
Department of Revenue and Legislative Fiscal Bureau forecasts have
projected declining revenue in this year and the next. The November
20, 2008, budget deficit forecast of $5.4 billion by June 30, 2011,
has now increased to more than $5.7 billion. This figure represents
over 18 percent of general fund appropriations.

As a first step toward investing in Wisconsin's economy and improving
the state's finances, we have been working together to develop state
economic stimulus and budget repair legislation. These discussions
have required each of us to make
compromises toward addressing these challenges. This compromise
legislation includes the following provisions:

Authorize the Department of Administration secretary to lapse or
transfer $125 million to the general fund, including $500,000 from the
Legislature, between fiscal years 2008-09 and 2010-11. This provision
will be used to reduce state operations and grant appropriations by
$38 million this year. The bill prohibits any reductions to highway
construction activities associated with this lapse authority.

Secure $900 million in new federal revenues over the biennium to
support a Medicaid rate increase for hospitals through implementation
of an assessment on hospital revenues. The new federal revenues will
help to reduce state taxpayer
support for Medicaid by over $300 million GPR in state fiscal years
2008-09 through 2010-11. In addition, provide targeted supplemental
payments to rural hospitals, adult level 1 trauma centers and
pay-for-performance initiatives.

Ensure clear legislative oversight and rapid deployment of federal
stimulus funding in support of job creation:

-- Authorize the first $300 million of federal economic stimulus funds
for transportation projects. The bill includes a specific list of
projects that the Department of Transportation has identified as
"shovel-ready" for 
implementation using federal stimulus funding. Additional federal
stimulus funds for transportation that are not contained in a bill
introduced at the request of the Governor will be reviewed and
approved by the Joint Committee on Finance through an expedited
process.

-- Create a process for expedited review by the Joint Committee on
Finance of plans for allocating all other federal stimulus funding not
related to transportation and not included in legislation introduced
at the request of the
Governor.

Foster job creation and entrepreneurial development through new and
upgraded tax credits:

-- Enhance the Accelerate Wisconsin tax credit for angel and venture
investors in support of start-up technology companies. Increase the
aggregate per business cap from $4 million to $8 million and the cap
on angel investments from
$1 million to $4 million; delete the per angel investment cap for an
individual business; expand eligibility to a broad array of leading
edge technologies and related processes, including clean energy and
nanotechnology; allocate 
$500,000 annually for investments in nanotechnology businesses; allow
a one-time transfer of early stage seed credits to attract a much
larger group of potential investors; improve utilization of the tax
credits by authorizing the
Department of Commerce to prequalify the amount of creditable
investment allowed in each business; allow early stage seed credits to
be claimed against gross premiums tax; and allow more of the credits
to be claimed in the year the
investment is made. Starting January 1, 2011, increase the angel and
early stage seed investment tax credit annual allocations by $12.5
million each.

-- Consolidate five existing tax credit programs (development zones,
enterprise development zones, agricultural development zones,
technology zones and airport development zones), increasing the
ability to target those credits to businesses that create jobs, invest
capital, provide training and retraining to new and incumbent workers,
and retain jobs in companies with corporate headquarters in Wisconsin.
Recognizing the need to support economic growth in rural areas and for
small businesses, the bill allocates a portion of the creditsfor these
purposes.

-- Encourage the continued growth of Wisconsin's agricultural economy
through the creation of two new income tax credits. First, the dairy
cooperative investment credit will allow members of a dairy
cooperative to claim a credit for
10 percent of the amount paid for dairy manufacturing modernization or
expansion expenses. Second, the meat processing facility credit will
allow meat processors to claim a credit for 10 percent of the amount
paid for meat
processing modernization or expansion costs.

Protect Main Street businesses by adopting the Main Street Equity Act,
which accepts standards from the national Streamlined Sales and Use
Tax Project to simplify sales and use tax provisions among state and
local governments. The standards also clarify that all prewritten
computer software packages are subject to the sales tax. Adoption of
this national model legislation will increase general fund tax
revenues by $9.4 million in fiscal year 2008-09 and $61.3 million over
the 2009-11 biennium. In addition, further protect Main Street
businesses by extending the sales tax to digital personal property if
the related tangible personal property is subject to the sales and use
tax. Incorporating digital products into the Main Street Equity Act
provisions is expected to increase general fund tax revenues by $10.9
million over the 2009-11 biennium.

Authorize combined reporting of corporate income. Combined reporting
treats corporations and their divisions, subsidiaries and affiliates
as a single entity for corporate income tax purposes. This is expected
to increase general fund tax
revenues by $27.7 million in fiscal year 2008-09 and by $187.3 million
over the 2009-11 biennium.
Provide $2.6 million GPR in fiscal year 2008-09 to provide job
training and retraining programs, including training in green building
and the installation of alternative energy systems.

Provide $1 million GPR in fiscal year 2008-09 to increase Workforce
Advancement Training Grants awarded by the Wisconsin Technical College
System. This program enables small, medium and large businesses to
receive short-term, customized training services from Wisconsin’s
technical colleges providing the state’s workers and employers with
the competitive edge they need to be successful in a global economy.
The additional funding will be allocated to advanced
manufacturing skills training with a priority to welding.

Increase the fiscal year 2008-09 allocation under the Temporary
Assistance for Needy Families (TANF) program for direct child care
services by $20,384,400 to address a projected shortfall in funding
for state child care subsidies. Fiscal year 2008-09 child care
subsidies are expected to exceed original 2007-09 biennial budget
estimates by an estimated 6 percent.

Increase the appropriation for federal block grant aids received under
the Temporary Assistance for Needy Families (TANF) program by
$47,175,000 in fiscal year 2008-09 to reflect the receipt of a TANF
contingency fund supplemental grant.

Allocate $500,000 GPR in fiscal year 2008-09 to the Department of
Children and Families to implement a system to monitor child care
attendance in licensed child care centers. Significant concerns have
been identified regarding reimbursement of child care providers for
children who are not receiving child care or who have parents that may
not be legitimately employed.

Provide $337,500 FED in fiscal year 2008-09 to fund an additional 5.0
FTE positions for the program integrity unit in the Department of
Children and Families. This unit is responsible for ensuring that
parents and providers receiving
state child care subsidies comply with state and federal statutes and
rules. In addition, the unit monitors billing and attendance activity
and implements overpayment prevention strategies. Additional resources
are needed to expand and
enhance state oversight of the subsidy program.
Increase the allocation under the Temporary Assistance for Needy
Families (TANF)
program for emergency assistance grants by $1 million in fiscal year
2008-09.

Emergency assistance grants are available to needy families with
dependent children to help keep their home. To be eligible, families
must be facing impending or actual homelessness related to the
inability to make mortgage, rent or utility
payments; or due to a fire, flood or other natural disaster. The
current economic
downturn increases the likelihood that more families will face a
homelessness crisis.

Expand access to capital for scientific, medical and technological
research by allowing the Wisconsin Health and Educational Facilities
Authority to issue federal tax-free bonds to finance projects and
outstanding debt related to research facilities.

Increase funding for the Medicaid program to offset higher than
projected increases in caseloads and to fund a prior period cost
settlement for the University of Wisconsin Hospitals and Clinics.

Provide a $200,000 grant in fiscal year 2008-09 for statewide
foreclosure education and assistance to tenants.

Ensure protections for tenants of properties under foreclosure by
requiring plaintiffs in a residential rental property foreclosure to
provide tenants with notices of foreclosure actions and providing
tenants with the ability to recover damages if notices are not given.
Provide tenants with the ability to retain residency for up to two
months after the sale of a foreclosed property.

Authorize the Wisconsin Housing and Economic Development Authority to
issue bonds and make loans for refinancing qualified subprime loans
for single-family residential mortgage loans made after December 31,
2001, and before January 1,
2008.

Modify the loan program administered by the Board of Commissioners of
Public Lands to expand the prepayment period for local government
borrowers; increase access to funds for counties wishing to improve
energy efficiency; and clarify conditions under which a school
district may receive short-term loans.

Increase the regulation of foreclosure reconveyances, foreclosure
purchasers and
foreclosure consultants. Specify penalties for violation of provisions
by foreclosure
purchasers, authorize courts to order punitive damages and allow the
foreclosed homeowner to bring action for damages. Specify actions by
foreclosure consultants that are violations, and the forfeiture and
fine amounts for violations.

Comply with the federal Secure and Fair Enforcement for Mortgage
Licensing Act of
2008 by conforming to certain nationwide standards for mortgage loan
originators,
including their registration through the National Mortgage Licensing
System and Registry. In addition, establish minimum annual fees for
loan originators and loan solicitors.

Provide $4 million GPR to the Wisconsin Housing and Economic
Development Authority to establish a loan loss reserve fund that will
leverage private investment in a single-family residential
first-mortgage refinancing program, including
refinancing of single-family residential first mortgages.

Suspend the general fund statutory balance requirements for fiscal
year 2008-09 in order to adopt the economic stimulus legislation and
reflect anticipated action in the biennial budget bill that will
address the remaining deficit.

Taken together, the $125 million cut in state spending, revenue
enhancements and investments proposed in this bill will reduce the
estimated general fund deficit by over $700 million by the end of the
2009-11 biennium. Provisions in the bill will reduce the general fund
deficit in the current year (fiscal year 2008-09) by approximately
$167 million.

The following table demonstrates how the proposed economic stimulus
legislation will improve the general fund condition for fiscal year
2008-09, beginning with the deficit identified in the January 29,
2009, Legislative Fiscal Bureau memo regarding generalfund revenue and
expenditure reestimates. The remaining deficit for fiscal year
2008-09 and the 2009-11 biennium will be addressed in my budget
recommendations
for the 2009-11 biennium.

Fiscal Year 2008-09 General Fund Impact
($ in millions)

2008-09
Estimated June 30, 2009, Balance (Legislative Fiscal Bureau) -$593.8

Current Law Required Ending Balance 65.0

Shortfall (excluding statutory balance) -$528.8

State Agency Lapses and Transfers (amount allocated to FY09) $38.0

Hospital Assessment 78.5

Combined Reporting 27.7

Temporary Assistance for Needy Families (TANF) Provisions 22.5

Main Street Equity Act and Related Provisions 9.4

Worker Training-Related Programs -3.6

Medicaid Changes and Other Transfers -1.0

Housing-Related Programs -4.2

Total of Actions $167.3

Remaining FY09 Balance (excluding statutory balance) -$361.5

I look forward to rapid passage of this legislation.

Thank you for consideration of this important measure.

Sincerely,

Jim Doyle

Governor

cc: Members, Joint Committee on Finance

Michael L. Morgan, Secretary of Administration

Bob Lang, Legislative Fiscal Bureau

David Schmiedicke, State Budget Director

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  • October 21, 2009 Governor Doyle Announces Over 100 Communities Support “25x25” Clean Energy Goal
  • October 19, 2009 16.5% of land in WIS is publicly owned
  • October 19, 2009 Rumors fly about offline wind turbines
  • October 19, 2009 Serious problems from manure run-off
  • October 19, 2009 Learn Before you Burn - October Air Quality Tip of the Month
  • October 19, 2009 Spread of ash borer still pestering officials
  • October 17, 2009 Editorial: Ban on new nuclear power plants should be lifted
  • October 15, 2009 Wisconsin Public Service Commission's phase-in for 10-digit dialing in 715 area code begins Saturday
  • October 14, 2009 SIX WORKING LANDS INITIATIVE WORKSHOPS SCHEDULED
  • October 13, 2009 Panel approves election plan; balks at voter ID
  • October 13, 2009 SUBMIT AGRICULTURAL ENTERPRISE AREA PETITIONS
  • October 12, 2009 Judge backs Wisconsin law aimed at managed forest lands
  • October 11, 2009 Utility fee to pay for district attorneys around state
  • October 9, 2009 AGRICULTURAL CENSUS INFORMATION NOW AVAILABLE
  • October 8, 2009 Governor Doyle Announces $300,000 Grant for Wisconsin Counties Association
  • October 7, 2009 Fond du Lac County Board of Supervisors Meeting Notice
  • October 7, 2009 NOTICE OF PUBLIC BUDGET HEARING FOR TOWN OF ASHFORD, FOND DU LAC COUNTY
  • October 6, 2009 Town of Ashford Meeting Notice
  • October 6, 2009 Appeals Court to consider whether local governments have authority to protect water quality from large livestock facilities
  • October 1, 2009 MATC, Johnson Controls to build state's largest solar power project
  • September 30, 2009 Governor Doyle Signs Bill Strengthening Wisconsin’s Wind Industry
  • September 30, 2009 Governor signs wind farm siting bill
  • September 28, 2009 County Board of Supervisors Meeting
  • September 23, 2009 Assembly panel wants DNR to reconsider shoreline rezoning
  • September 23, 2009 New Fond du Lac County Treasurer Sought
  • September 23, 2009 State Assembly passes bill making DNR secretary appointed by board, not governor
  • September 22, 2009 ASSEMBLY ADVANCES ELECTRONICS RECYCLING BILL
  • September 21, 2009 715 and 920 area code changes mean 10 digit dialing starting Oct. 17
  • September 15, 2009 Fond du Lac County Air Quality Tip of the Month: Turn off the lights and breath easier
  • September 11, 2009 Critics say wind turbines hurt land values
  • September 9, 2009 Fond du Lac County Economic Development Corporation's Answers to Frequently Asked Questions Regarding the Mercury Marine Incentive Package
  • September 1, 2009 New Wisconsin phone fee starts today
  • August 27, 2009 Fall harvest weight limits
  • August 26, 2009 Stewardship FUnd purchase
  • August 24, 2009 Calumet County awaits wind turbine energy ruling
  • August 23, 2009 Governor Doyle Announces Stewardship Fund
  • August 23, 2009 Towns slowly embrace Internet as means of communication
  • August 18, 2009 FDL County Healthy Air Tip of the Month - Let the "check engine" light work for you
  • August 13, 2009 DNR proposes new water screening
  • August 12, 2009 CONFIRMATION OF EMERALD ASH BORER IN KENOSHA COUNTY
  • August 11, 2009 Government Accountability Board report finds public opposes early voting proposal
  • August 10, 2009 State requires bldg contractors to register
  • August 10, 2009 Study of voting changes endorsed
  • August 6, 2009 USDA: Value of farm real estate in Wis. dips
  • August 5, 2009 State officials ask for patience over voter checks
  • August 4, 2009 Wind Siting Reform Gains Strong Bipartisan Vote in Committee
  • August 3, 2009 Agriculture contribution to economy study
  • August 2, 2009 Wisconsin works to verify voter information
  • July 28, 2009 Voting by mail must precede phone, Internet options, state says
  • July 27, 2009 Governor Doyle Announces $1 Million to Help Prevent Water Pollution
  • July 24, 2009 Many Wisconsin workers will get raise today when federal minimum wage goes up
  • July 24, 2009 New phone fees start in September
  • July 24, 2009 Five-Year Election Plan to Be Reviewed
  • July 22, 2009 Rosendale Dairy expands despite low milk prices
  • July 21, 2009 Emerald ash borer contained to two areas - for now
  • July 17, 2009 Emerald Ash Borer Monitoring
  • July 15, 2009 Fond du Lac County Air Quality Tip for July
  • July 13, 2009 Wisconsin's minimum wage to rise 75 cents next week
  • July 13, 2009 State towns make the grade as most livable
  • July 10, 2009 Governor Doyle Signs Bill to Protect Wisconsin’s Natural Resources Also Awards Grant Providing Further Protections to Totogatic River
  • July 9, 2009 NEW WEBSITE SHOWS WHERE LIVESTOCK SITING PERMITS ARE REQUIRED
  • July 8, 2009 Governor Jim Doyle today signed into law SB 126 and SB 216 at the State Capitol in Madison
  • July 7, 2009 Video On Living With Wind Turbines
  • June 24, 2009 American TV launches electronics recycling program
  • June 24, 2009 Resources board approves shoreline regulation changes
  • June 23, 2009 Fond du Lac County Airport Terminal Open House/Dedication
  • June 23, 2009 Ag land assessment 'loophole'
  • June 23, 2009 DNR spends nearly $9 million to preserve land
  • June 23, 2009 Changes to Wisconsin voting ???
  • June 22, 2009 New park-and-ride lot planned north of Oshkosh
  • June 22, 2009 FDL County Air Alert for Tuesday June 23, 2009
  • June 22, 2009 State Budget Work To Resume
  • June 22, 2009 FCEDC receives $437,899 grant to help grow regional economy
  • June 19, 2009 Dept of Employee Trust Funds. 2010 Rate increase
  • June 19, 2009 Doyle signs three bills
  • June 18, 2009 Budget changes proposed
  • June 18, 2009 AB 256 Wind Siting passes Assembly
  • June 17, 2009 McNeilus Steel, Inc. breaks ground on new facility
  • June 17, 2009 Wisconsin Reports Record Export Growth
  • June 17, 2009 Fond du Lac County Business Development News
  • June 17, 2009 Sign Up To Receive Air Alerts for Fond du Lac County
  • June 12, 2009 State Budget Bill AB75 Update; June 12
  • June 10, 2009 DNR Proposal to change Shoreline Regs
  • June 9, 2009 Governor signs 3 bills into law
  • June 8, 2009 Wi Windpower opportunities blowing away
  • June 8, 2009 Proposed legislation re public land use
  • June 4, 2009 Hunting Ash Borers
  • June 3, 2009 Haulers garbage fees to be passed to consumers
  • June 1, 2009 New landfill charges
  • May 27, 2009 Trash haulers worry about tipping fee hike
  • May 5, 2009 Panel OKs closing walk-in centers for hunting, fishing licenses
  • May 1, 2009 Legislators introduce wind siting bill
  • April 29, 2009 Citizens file appeal of Rosendale Dairy Permit
  • April 27, 2009 Rural residents w/o high speed internet
  • April 26, 2009 New broadband technologies can connect even the most remote places
  • April 23, 2009 Emerald Ash Borer
  • April 21, 2009 Governor Doyle Approves Transit Projects for Federal Recovery and Reinvestment Funding
  • April 21, 2009 Prevailing wage measure worries municipalities
  • April 20, 2009 Mowing the Lawn and What To Do With Grass Clippings
  • April 20, 2009 Stimulus money could bring broadband to rural homes - Complete an Online Survey To Help Distribute Grant Money
  • April 20, 2009 Town of Ashford Liquor Applications for 2009-2010 Licensing Period
  • April 14, 2009 Officials: Landfill plan stinks
  • April 13, 2009 Uniform siting rules for wind power projects sought
  • April 11, 2009 Wind turbines complicate weather monitoring
  • April 9, 2009 Legislation regarding wind energy production being circulated
  • April 8, 2009 Managed Forest Law Getting Another Look
  • April 8, 2009 Spring Election Results
  • April 7, 2009 Emerald ash borer jumps across state
  • April 6, 2009 Town of Ashford Open Book Notice
  • April 6, 2009 Notice of Town of Ashford Board of Review Meeting 5/11/2009
  • April 6, 2009 Notice of Town of Ashford Board of Review Meeting 5/11/2009
  • April 6, 2009 Town of Ashford Annual Meeting April 11, 2009
  • April 5, 2009 Informational tools aim to protect wetlands, help landowners.
  • March 26, 2009 Update on State Budget by Senator Joe Leibham
  • March 25, 2009 Fond du Lac County Spring Roads Posting
  • March 25, 2009 Fond du Lac County Candidates and Referendum Questions for April 7, 2009 Election
  • March 23, 2009 Governor’s proposed budget includes farmland preservation
  • March 18, 2009 Wasps May Help Locate Ash Borers
  • March 17, 2009 Fond du Lac County Current Highway Projects
  • March 16, 2009 Mapping Wisconsin Communities Workshops
  • March 9, 2009 Gottlieb and Hopper Introduce Transportation Fund Protection Amendment
  • March 9, 2009 Government Accountability Board
  • March 9, 2009 DOT Implements Spring Thaw Restrictions
  • March 5, 2009 Bill Proposed That Would Eliminate Spring Electrions
  • March 2, 2009 DNR approves expansion of Rosendale dairy farm to 4,000 head
  • February 28, 2009 Shared revenue cut hits communities unevenly Wealthier areas to lose a larger portion, lower dollar amount
  • February 26, 2009 Online Voter Registration Suggested
  • February 26, 2009 Milw Journal on Fed Transportation monies
  • February 20, 2009 Old Shingles To Cover New Roads
  • February 19, 2009 Low turnout prompts call to move spring vote to fall
  • February 19, 2009 Low turnout prompts call to move spring vote to fall
  • February 16, 2009 Town Of Ashford and Auburn Water Testing
  • February 11, 2009 Outline of Plan From Governor Jim Doyle
  • February 2, 2009 Some lawmakers want to ditch spring elections
  • January 27, 2009 Oregon Farm Receives Dane County Agricultural Grant to Grow, Market Healthy Berry
  • January 26, 2009 Mega dairy hearing draws hundreds
  • January 26, 2009 WDOT Seeking Comment
  • January 25, 2009 PSC Final Report on Great Lakes Wind Energy
  • January 15, 2009 Minnesota, Wisconsin consider sharing to cut costs
  • January 12, 2009 Purchase ensures wetlands preservation
  • January 9, 2009 Southeast Wisconsin Woodland Owners Conference
  • January 7, 2009 KOHL & ISRAEL INTRODUCE WEEKEND VOTING BILL
  • January 5, 2009 Statewide Solar Power Project Possible
  • January 5, 2009 DNR Hearings on Proposed Rosendale Dairy
  • January 2, 2009 2009 IRS Mileage Rates
  • January 1, 2009 2009-10 Assembly GOP Committee Assignments
  • December 28, 2008 Midwest States May Work Together To Buy Road Salt
  • December 26, 2008 Wisconsin Manure To Energy
  • December 19, 2008 Rosendale Dairy denied variance
  • December 17, 2008 Frozen road law goes into effect Dec. 22
  • December 16, 2008 COMMERCE OFFERS WINTER SEASON MAINTENANCE TIPS FOR PRIVATE ONSITE WASTEWATER TREATMENT SYSTEMS
  • December 15, 2008 Cedar Ridge Wind Farm begins producing emissions-free energy
  • December 14, 2008 Give Wind Farms a Fair Chance - A Wisconsin State Journal editorial dated December 12, 2008
  • December 9, 2008 Waste Morphs Into Energy - More Methane Could Reduce Costs
  • December 9, 2008 Wisconsin Boasts Most Manure-To-Energy Projects
  • December 2, 2008 64 more acres sought for Harrington Beach State Park
  • November 11, 2008 Doyle: Deficit Could Reach $5 Billion or More
  • November 7, 2008 PSC Adds Two New Area Codes to Supplement the 715 and 920 Area Codes
  • October 29, 2008 New Factory Farm in Rosendale Threatens Significant Impact to the Environment
  • October 22, 2008 Governor Doyle Dedicates Major Addition to Kettle Moraine State Forest