2017-19 State Budget Webinar

Week of May 8, 2017

§ Rep. John Nygren (R-Marinette) Co-Chair§ Rep. Dale Kooyenga (R-Brookfield) Vice-

Chair§ Rep. Amy Loudenbeck (R-Clinton)§ Rep. Mary Felzkowski (R-Irma)§ Rep. Mark Born (R-Beaver Dam)§ Rep. Mike Rohrkaste (R-Neenah)§ Rep. Gordon Hintz (D-Oshkosh)§ Rep. Katrina Shankland (D-Stevens Point)

§ Sen. Alberta Darling (R-River Hills) Co-Chair§ Sen. Luther Olsen (R-Ripon) Vice-Chair§ Sen. Sheila Harsdorf (R-River Falls)§ Sen. Tom Tiffany (R-Hazelhurst)§ Sen. Leah Vukmir (R-Wauwatosa)§ Sen. Howard Marklein (R-Spring Green)§ Sen. Lena Taylor (D-Milwaukee)§ Sen. Jon Erpenbach (D-Middleton)

Assembly Members Senate Members

JOINT FINANCE COMMITTEE MEMBERS

• Mon, May 1• Tue, May 9• Thu, May 11• Tue, May 16• Thu, May 18• Tue, May 23• Thu, May 25• Tue, May 30

The following is the tentative calendar for JFC to exec on the state budget:

TENATIVE JFC EXECS ON BUDGET

WEEK OF MAY 1, 2017

Executive Session: May 1, 2017

• Judicial Commission• Judicial Council• Circuit Courts• Court of Appeals • Supreme Court• Employment Relations Commission• Administration- Division of Gaming• Insurance• Board for People with Developmental Disabilities• Board on Aging and Long-Term Care• Environmental Improvement Fund

JOINT COMMITTEE ON FINANCE

• Governor’s budget ceases operations of the Local Government Property Insurance Fund (LGPIF).• LGPIF prohibited from issuing new

insurance coverage after July 1, 2017.• No existing coverage may be renewed

after December 31, 2017.• JFC did not take any action on

the LGPIF on May 1. JFC is expected to revisit the issue in the coming weeks.

LOCAL GOVERNMENT PROPERTYINSURANCE FUND

• Governor’s budget would allow the Supreme Court to allocate funds into a new Program Revenue account for compensation.

• These funds, under the Governor’s plan, could come from the County Circuit Court appropriation.

• This proposal would jeopardize funding for the circuit courts. • Currently, state funding for circuit courts is less than 40%, down

from 46% in 2007.• If the Governor’s proposal were adopted, this would increase the

fiscal burden on counties to fund the circuit courts. • JFC did not take any action on judicial

compensation on May 1. JFC is expected to revisit the issue in the coming weeks.

JUDICIAL COMPENSATION

WEEK OF MAY 8, 2017

Executive Session: May 9, 2017

• Child Abuse and Neglect Prevention Board

• Secretary of State• Wisconsin Economic Development

Corporation• Military Affairs• Legislature• Justice

JOINT COMMITTEE ON FINANCE

MILITARY AFFAIRS

911 MODERNIZATION

• Representative Felzkowski and Senator Harsdorf authored a budget amendment regarding modernizing 911 in Wisconsin• Will be offered on Tuesday as part of the

Department of Military Affairs discussion

• The amendment will contain the following provisions:• RFP to procure a vendor to build a

statewide digital network (ESINet)• $7 million in the second year of the

biennium and ongoing• Creation of 911 Council• Phase out of the $0.40 landline fee

• Amendment will also include housing 911 at the Department of Military Affairs Division of Emergency Management along with other public safety programs/ operations• Goal is to have all public safety programs/

operations in one location overseen by one entity

911 MODERNIZATION

JOINT COMMITTEE ON FINANCE

Executive Session: May 11, 2017

• Financial Institutions• Public Service Commission• Safety and Professional Services –

Departmentwide• Safety and Professional Services –

Regulation of Professions• Health Services – Medicaid

Services Administration• Veterans Affairs

PUBLIC SERVICE COMMISSION

PRIVATE ONSITE WASTEWATER TREATMENT SYSTEMS (POWTS)

• The Department of Safety and Professional Services (DSPS) administers the Private Onsite Wastewater Treatment System (POWTS) replacement or rehabilitation grant program, also referred to as the Wisconsin Fund.

• The program provides financial assistance to low to moderate income home owners for rehabilitation or replacement of their POWTS. Under the program up to 60% of the rehab or replacement may be reimbursed to a particular home owner with a cap of $7,000 dollars.

• The Governor’s budget proposal maintains current funding of $840,000 PR in each of 2017-18 and 2018-19 for the POWTS grant program.

• The Governor’s budget proposal also converts funding from ongoing to one-time financing. There would be no base funding for the grant program in the 2019-21 biennium.

• Counties regardless if they participate in the Wisconsin Fund program are required to conduct, complete, and maintain an inventory of all POWTS located within the jurisdiction, and complete the initial inventory before October 1, 2017

PRIVATE ONSITE WASTEWATER TREATMENT SYSTEMS (POWTS)

• Counties are also required to develop and begin to implement a POWTS maintenance program before October 1, 2019, that includes the inventory, and a process for recording each inspection, evaluation, maintenance and servicing report for a POWTS.

• Finally, Counties are required to meet each of the two deadlines to maintain eligibility for the POWTS grant program as of October 1, 2019.

• The Department of Safety and Professional Services (DSPS) indicates 49 of 72 counties had reported their initial inventories were complete as of mid-March, 2017.

• It is widely accepted the the inventory for the Wisconsin Fund grant program is winding down. Questions remain regarding how much funding is necessary to complete the statewide inventory of the (POWTS) replacement or rehabilitation Wisconsin Fund grant program.

• At the DSPS budget briefing before the Joint Committee on Finance (JCF), the DSPS Secretary suggested the program has run its course.

• The WCA Government Affairs Staff has been in contact with the Wisconsin County Code Administrators (WCCA) to discuss the proper funding option to recommend to the Joint Committee on Finance (JCF).

HEALTH SERVICES – MEDICAIDSERVICES ADMINISTRATION

INCOME MAINTENANCE

• County income maintenance consortia perform eligibility determinations and management functions for state and federal economic support programs.• Functions funded through a combination of federal, state, and local levy

dollars.• Governor provided funding to fund county IM contracts throughout the

2017-19 biennium at the CY17 level.• FY16 and FY17 funding included one-time funding in the amount of

$2,365,000 to support increased workload associated with FoodShare work and training requirements for childless adults.• Decision to be made by the JCF on whether or not to maintain the one-

time funding moving forward.

INCOME MAINTENANCE CONTRACTS

• Ask JCF members to support Alternative 1 in Paper #337 (adopt Governor’s recommendation).• Oppose Alternative 2

• Reasons to support Governor’s recommendation:• IM workload has remained constant over the past several years.• If the funding is deleted counties will reduce IM services.• Counties already contribute $25 million annually in local funds to support the

10 IM consortia.

INCOME MAINTENANCE CONTRACTS

• County income maintenance consortia are required to operate a Fraud Prevention and Investigation Program (FPIP).• Program funded at $1 million annually.• Requesting an additional $1.5 million

annually.• Counties successfully utilizing increased

funding received last budget.

INCOME MAINTENANCE FRAUD

• Reasons why members of the JCF should support request• With the increased funding provided last

biennium, IM consortia have:• Increased the number of investigations

completed• Identified an increased number of cases in

which overpayments were made and intentional program violations (IPV) occurred• Future savings of $18 million in 2016• $22 million overpayments established• 1,263 IPVs established statewide

• Return on investment 23:1

INCOME MAINTENANCE FRAUD

VETERANS AFFAIRS

• The Governor’s budget returns the CVSO grant program back to a block grant (reimbursement program under current law)

• The CVSO’s requested additional changes to ensure that these dollars are being used effectively and efficiently

• Accountability measures will still be in place

CVSO GRANTS

• Additional changes include:

• Training – remove the language limiting the use of grant funds for trainings only provided by the WDVA and federal DVA

• Salary and fringe benefits –remove language limiting the use of grant funds for salary and fringe benefits

CVSO GRANTS

• These changes are supported by WCA, CVSOA-WI, Secretary of WDVA

• Representative Dale Kooyenga/ Senator Marklein will author the budget amendment

OTHER BUDGET NEWS

ASSEMBLY GOP RELEASES TRANSPORTATION PLAN

Highlights Include:

• Apply sales tax to motor fuel.• Reduce state gas tax rate by 4.8

cents per gallon.• Reduce gasoline minimum markup

from 9.18% to 3%.• Reduce bonding by $300 million.• Additional registration fees for hybrid

and electric vehicles.• 0.5% optional local road sales tax.• Preemption of local wheel tax

authority (require referendum).• Roundabouts preemption.• Public-private partnerships.• Federal Swap proposal.

BUDGET RESOURCES

LFB Website: www.legis.wisconsin.gov/lfb• Click on “Publications”

Ø 2017-19 State Budget PapersØ LFB prepares “budget papers” or

summariesØ Each budget paper includes:

ü Current law or current status of the item

ü A summary of the Governor’s proposal

ü Discussion pointsü Alternatives

LEGISLATIVE FISCAL BUREAU

Both The Wheeler Report and WisPolitics also have public websites.• The Wheeler Report: www.thewheelerreport.com

• Click on the “Finance” tab to see votes by JFC (password protected)• WisPolitics: www.wispolitics.com

• The WisPolitics Budget Blog covers budget issues in real time: www.budget.wispolitics.com

• WisconsinEye: www.wiseye.org• WisconsinEye shows committee meeting and the Legislature live.

• Wisconsin Counties Association: www.wicounties.org• All WCA budget documents and memos are available under the “Legislative” tab.

OTHER RESOURCES

QUESTIONS?