February 6, 2015

Governor's Budget Proposal Announced

On Tuesday, February 3rd, Governor Walker announced his budget proposal for 2015-2017. Within it, he proposed several initiatives to aid in growing our economy, developing our workforce, transforming education and reforming government. Governor Walker has pushed to again lower property taxes, freeze tech college and UW tuition statewide, and increase funding for transportation and technology to help our rural schools.

The Governor has included several proposals in his budget that would aid rural schools in a variety of ways including:

Transforming Education:
 o Provide additional resources for rural schools by increasing funding for:
o The Sparsity Aid Program by $8.4 million over the biennium.
o The High-Cost Pupil Transportation categorical aid program by $5 million over the biennium.
o The reimbursement rate under the pupil transportation aid program for districts transporting students more than 12 miles will be raised from $275 to $300 per pupil.
 o Promote efficiencies by allowing school districts to enter into whole grade sharing agreements and consolidate individual grades offered at multiple school sites into one educational program for the grade. Whole grade sharing agreements will allow districts to reduce costs and pool resources in order to meet the needs of their communities.

I am proud that Governor Walker has listened to the feedback from our district and decided to address the hardships faced in the northwoods. In his budget, Governor Walker has proposed $6 million to increase broadband infrastructure, additional funding for counties to provide mental health services, and $5 million for additional grants for shelters that aid victims of domestic abuse.

The Governor also included several ideas in his budget proposal to reform the DNR. These include the possibility of moving the Forestry Division headquarters to northern Wisconsin, rather than its present location in Madison. This change would bring our state forestry staff closer to the timber industry that is so vital to our Northwoods. The Governor also included Managed Forest Law (MFL) proposals that would streamline the cutting notice process; this is critical to helping area mills and manufacturing to stabilize wood product levels. I will be studying these proposals closely and I am encouraged to see that forestry, which is our state’s second-largest manufacturing industry, is a priority in this state budget.

State Budget Process - The Five W's

The biennial State Budget bill is the single largest piece of legislation we will work on over the two year legislative session.  Amidst all the policy and proposals, the basic details of the budget can sometimes get lost in the shuffle.  As we gear up for the 2015-17 budget cycle, here are the Five W’s of the state budget:

Who
Now that the Governor has unveiled his budget proposal, it has been sent to the Joint Committee on Finance. This Committee is comprised of 16 members from both the State Senate and Assembly. Republicans hold the majority by a 12-4 margin. It is co-chaired by Sen. Alberta Darling (R-River Falls) and Rep. John Nygren (R-Marinette). This session I am grateful to have been appointed to serve as one of the JFC members.

The JFC will be receiving a great deal of input from the Legislative Fiscal Bureau. The LFB is a non-partisan agency, which analyzes all budget provisions and provides financial estimates to the Legislature. Currently, LFB is in the process of reviewing of the Governor’s major proposals. This process will take about 4 weeks. The LFB will break the Governor’s 1,800+ page budget bill and summarize the proposals in simpler language. LFB will release its Summary of Govenor’s Budget Recommendations in early March, and these findings will be extremely helpful to our work on the committee.

What

The Executive Budget Proposal lays out the Administration’s vision for the fiscal years of 2015-17. It is a wide-ranging document, covering everything from the appropriations of each state agency to school funding and municipal aids. This bill will be the primary focus of the Legislature in the coming months.

A complete summary and additional budget information may be found here.

Where
The Joint Finance Committee will be holding a series of public hearings across the state, in order to receive citizen feedback.  These hearings are held during each budget process, and are tentatively scheduled to begin in mid-March. To date, the exact times and locations have not been announced. Once we receive that information, I will be sure to pass along the details to you. These hearings are an excellent opportunity for the Committee to receive input from folks all around the state.

When
The fiscal year in Wisconsin runs from July 1st- June 30th. In every odd-numbered year, the Governor proposes a two-year budget to cover the biennium. The plan that Governor Walker recently laid out covers the dates of July 1st, 2015 - June 30th, 2017.

In Wisconsin, our State Constitution requires a balanced budget. Unlike the federal government, our state cannot simply run a deficit and continue to print money. Therefore, the Legislature has a deadline of June 30th to approve a new budget, and ensure that Wisconsin remains financially solvent for the next two years.

Why
Wisconsin has a greatly improved financial outlook from where we stood four years ago.  We have paid off long-standing debts, to both the Patients Compensation Fund and to the state of Minnesota on overdue tax-reciprocity payments. We have invested in the Rainy Day Fund, which now stands at its highest balance in recent years. And, during the last state budget, we delivered over $1 billion in tax relief.  

Due to those fiscal reforms, we will have opportunities in this state budget to continue investing in our state’s workforce, infrastructure, and economy.

In the coming weeks, there will be lots of activity on the budget and certainly many vigorous debates. My JFC colleagues and I will give due diligence to each and every proposal in the budget. As always, I welcome your thoughts and ideas.

13 Not-to-Miss Wisconsin February Events

Tourism plays a major role in our state, not only in terms of revenue, but also in offering many activities that cannot be found anywhere else. Learn more about the 13 not-to-miss February events offered in all areas of the great state of Wisconsin.

Have a good weekend and stay warm!

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E-Update, please feel free to contact me.

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State Capitol Room 15 West- PO Box 8952, Madison, WI 53708
(608) 266-7694
Email: Rep.Czaja@legis.wi.gov