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Newsroom
Under the Dome - July 20, 2015
BIENNIAL BUDGET UPDATE
After approval of the biennial budget by the Senate and Assembly, Governor Walker signed the 2015-2017 state budget into law on Sunday, July 12 and in the process, issued 104 vetoes.
There were two vetoes of particular interest to MEUW members:
PREVAILING WAGE (AB 32/SB 49)
After weeks of back and forth, the issue of prevailing wage was inserted into the budget. The legislature passed, and the Governor signed, the “Lasee Plan” that exempts all local governments, technical colleges, schools, municipal utilities, and off-site trucking from Wisconsin's prevailing wage laws. The exemption is effective on January 1, 2017.
This is a huge win for MEUW members as it will lower your construction costs and provide additional dollars for infrastructure replacement. We would like to thank the many members that reached out to their legislators in support of repeal for municipal utilities, The Kammer Group for their extraordinary work keeping us engaged in the process, and our many coalition partners, including the Wisconsin Rural Water Association.
LOCAL GOVERNMENT PROPERTY INSURANCE FUND
The Governor's budget proposal included elimination of the Local Government Property Insurance Fund (LGPIF). MEUW and The Kammer Group worked very hard to educate Joint Finance Committee members on the importance of maintaining the LGPIF. Ultimately, the Joint Finance Committee voted to delay elimination of the Local Government Property Insurance Fund for two years, and to adopt the policy rates and structure recommended by the fund's Advisory Committee (85% increase effective July 1, 2015).
Subsequently, a floor amendment to the budget was adopted by the legislature which included a provision to retain the LGPIF and delete the adoption of the new policy rate recommended by the Advisory Committee. The impetus behind the reversal was several concerned senators. Although the fund remains in place, significant rate increases are expected in order for it to remain sustainable.
We would like to remind our members that the League of Wisconsin Municipalities has partnered with Cities and Villages Mutual Insurance Company and the Wisconsin Municipal Mutual Insurance Company to form a new local government property insurance company. The new Municipal Property Insurance Company (MPIC) was approved by the Wisconsin Insurance Commissioner on May 28 and is expected to start later this fall.
LEGISLATION MEUW IS CURRENTLY FOLLOWING
There were no bills introduced since the July 7 edition of Under the Dome and no updates to previous legislation.
AB 251/SB 168 – Administrative Rules: This bill, introduced by Sen. LeMahieu (R-9) and Rep. Neylon (R-98), makes various changes to administrative rule promulgation process including legislative approval of rules with a cost impact exceeding $10 million. MEUW is concerned about this bill because the threshold is sure to affect future promulgation of rules to comply with the final EPA Clean Power Plan. We have worked with WUA and WECA to voice our concerns to the bill's authors and have been told they are comfortable with an exemption for Federal rules. The bill has been referred to the Assembly Committee on State Affairs but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 269 – Funding Postretirement Health Care Benefits: This bill, introduced by Rep. Thiesfeldt (R-52) and Sen. Vukmir (R-5), would require funding, on an actuarial basis, postretirement health care benefits of local government employees hired after January 1, 2016. The bill has been referred to the Assembly Committee on Urban and Local Affairs but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 122/SB 80 – Road Access for Utility Trucks in Emergencies: This bill, introduced by Sen. Jerry Petrowski (R-29) and Rep. Mary Czaja (R-35), exempts public utility vehicles from special or seasonal weight limits on class B highways in order to allow these vehicles to operate legally to restore service outages. MEUW registered in support of this bill. The bill was approved by the Assembly on April 14 and the Senate on April 21. The bill was signed into law by the Governor on June 30 and became 2015 Wisconsin Act 44.
AB 156/SB 134 – Wisconsin Retirement System (WRS): This bill, introduced by Rep. Thiesfeldt (R-52) and Sen. Petrowski (R-29), provides municipalities interested in participating in the WRS the option to join incrementally by applying the benefit to only newly hired employees while allowing current employees to finish their careers under their existing retirement plan. The Assembly Committee on Urban and Local Affairs unanimously approved this bill on May 5. The bill has been referred to the Joint Survey Committee on Retirement Systems where a study will be completed to assess the potential impact on the WRS. MEUW has registered in support of this bill.
AB 20/SB 176 - Made in America Act: This bill, introduced by Rep. Jorgensen (D-43) and Sen. Hansen (D-30), would require contractors to use materials made in America for all public works projects. The bill has been referred to the Assembly Committee on State Affairs and Government Operations but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 66 - Wisconsin Renewable Energy Development Authority: This bill, sponsored by Rep. Shankland (D-71) and Sen. Miller (D-16), creates an independent public entity, governed by an 11-member board, to steer and expand investment in renewable energy and energy efficiency in Wisconsin. The bill has been referred to the Assembly Committee on State Affairs and Government Operations but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 105/SB 72 - High-Capacity Wells: This bill, introduced by Sen. Mark Miller (D-16) and Rep. Cory Mason (D-66), establishes standards and a process for designating areas of the state as groundwater management areas, to ensure sustainable use of surface and ground water. The bill has been referred to the Senate Committee on Natural Resources and Energy but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
Absent any developments impacting MEUW members during the remaining extraordinary session, this is the last issue of Under the Dome until later this fall when the legislature resumes.After approval of the biennial budget by the Senate and Assembly, Governor Walker signed the 2015-2017 state budget into law on Sunday, July 12 and in the process, issued 104 vetoes.
There were two vetoes of particular interest to MEUW members:
- Veto 43 – Alternative Telecommunications Utilities (ATU) – The Joint Finance Committee approved a repeal of the PSC's authority to require ATUs to obtain commission approval before abandoning or discontinuing a line, extension or service under current law. Governor Walker's veto restored the PSC's authority, saying “I am vetoing this provision because I do not believe the commission's authority regarding alternative telecommunications utilities should be modified in this manner. These changes would shift responsibility for removing abandoned lines and poles to land owners and municipalities, which may create cost and safety issues. In addition, decisions by providers to abandon service may affect service to customers of interconnected providers. With this veto, the commission's current authority is retained.”
- Veto 44 – PSC Intervenor Compensation (IC) – The Joint Finance Committee repealed the $300,000 annual grant, received historically by the Citizens Utility Board (CUB), and reduced the compensation rate for IC from 100% of the cost of participating in a PSC hearing to 50% of the cost. The total impact of the Joint Finance Committee's actions was a $671,000 decrease of annual IC. Governor Walker's veto restored the $300,000 grant and removed the 50% cap; however, IC funding cannot be restored through his veto powers. The Governor said “I am vetoing these sections because they are unnecessarily prescriptive. Under current law, the commission has the flexibility to compensate for some or all of the reasonable costs of participation in commission proceedings. With this veto, the commission can continue to ensure only reasonable costs are reimbursed by its intervenor compensation appropriation and prescribe a match as it deems appropriate.” Total IC for the 2016 state fiscal year is $371,200, including the $300,000 grant restored in the veto. Total IC in the 2015 state fiscal year was $1.04 million.
PREVAILING WAGE (AB 32/SB 49)
After weeks of back and forth, the issue of prevailing wage was inserted into the budget. The legislature passed, and the Governor signed, the “Lasee Plan” that exempts all local governments, technical colleges, schools, municipal utilities, and off-site trucking from Wisconsin's prevailing wage laws. The exemption is effective on January 1, 2017.
This is a huge win for MEUW members as it will lower your construction costs and provide additional dollars for infrastructure replacement. We would like to thank the many members that reached out to their legislators in support of repeal for municipal utilities, The Kammer Group for their extraordinary work keeping us engaged in the process, and our many coalition partners, including the Wisconsin Rural Water Association.
LOCAL GOVERNMENT PROPERTY INSURANCE FUND
The Governor's budget proposal included elimination of the Local Government Property Insurance Fund (LGPIF). MEUW and The Kammer Group worked very hard to educate Joint Finance Committee members on the importance of maintaining the LGPIF. Ultimately, the Joint Finance Committee voted to delay elimination of the Local Government Property Insurance Fund for two years, and to adopt the policy rates and structure recommended by the fund's Advisory Committee (85% increase effective July 1, 2015).
Subsequently, a floor amendment to the budget was adopted by the legislature which included a provision to retain the LGPIF and delete the adoption of the new policy rate recommended by the Advisory Committee. The impetus behind the reversal was several concerned senators. Although the fund remains in place, significant rate increases are expected in order for it to remain sustainable.
We would like to remind our members that the League of Wisconsin Municipalities has partnered with Cities and Villages Mutual Insurance Company and the Wisconsin Municipal Mutual Insurance Company to form a new local government property insurance company. The new Municipal Property Insurance Company (MPIC) was approved by the Wisconsin Insurance Commissioner on May 28 and is expected to start later this fall.
LEGISLATION MEUW IS CURRENTLY FOLLOWING
There were no bills introduced since the July 7 edition of Under the Dome and no updates to previous legislation.
AB 251/SB 168 – Administrative Rules: This bill, introduced by Sen. LeMahieu (R-9) and Rep. Neylon (R-98), makes various changes to administrative rule promulgation process including legislative approval of rules with a cost impact exceeding $10 million. MEUW is concerned about this bill because the threshold is sure to affect future promulgation of rules to comply with the final EPA Clean Power Plan. We have worked with WUA and WECA to voice our concerns to the bill's authors and have been told they are comfortable with an exemption for Federal rules. The bill has been referred to the Assembly Committee on State Affairs but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 269 – Funding Postretirement Health Care Benefits: This bill, introduced by Rep. Thiesfeldt (R-52) and Sen. Vukmir (R-5), would require funding, on an actuarial basis, postretirement health care benefits of local government employees hired after January 1, 2016. The bill has been referred to the Assembly Committee on Urban and Local Affairs but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 122/SB 80 – Road Access for Utility Trucks in Emergencies: This bill, introduced by Sen. Jerry Petrowski (R-29) and Rep. Mary Czaja (R-35), exempts public utility vehicles from special or seasonal weight limits on class B highways in order to allow these vehicles to operate legally to restore service outages. MEUW registered in support of this bill. The bill was approved by the Assembly on April 14 and the Senate on April 21. The bill was signed into law by the Governor on June 30 and became 2015 Wisconsin Act 44.
AB 156/SB 134 – Wisconsin Retirement System (WRS): This bill, introduced by Rep. Thiesfeldt (R-52) and Sen. Petrowski (R-29), provides municipalities interested in participating in the WRS the option to join incrementally by applying the benefit to only newly hired employees while allowing current employees to finish their careers under their existing retirement plan. The Assembly Committee on Urban and Local Affairs unanimously approved this bill on May 5. The bill has been referred to the Joint Survey Committee on Retirement Systems where a study will be completed to assess the potential impact on the WRS. MEUW has registered in support of this bill.
AB 20/SB 176 - Made in America Act: This bill, introduced by Rep. Jorgensen (D-43) and Sen. Hansen (D-30), would require contractors to use materials made in America for all public works projects. The bill has been referred to the Assembly Committee on State Affairs and Government Operations but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 66 - Wisconsin Renewable Energy Development Authority: This bill, sponsored by Rep. Shankland (D-71) and Sen. Miller (D-16), creates an independent public entity, governed by an 11-member board, to steer and expand investment in renewable energy and energy efficiency in Wisconsin. The bill has been referred to the Assembly Committee on State Affairs and Government Operations but has not been scheduled for a hearing. MEUW has not taken a position on this bill.
AB 105/SB 72 - High-Capacity Wells: This bill, introduced by Sen. Mark Miller (D-16) and Rep. Cory Mason (D-66), establishes standards and a process for designating areas of the state as groundwater management areas, to ensure sustainable use of surface and ground water. The bill has been referred to the Senate Committee on Natural Resources and Energy but has not been scheduled for a hearing. MEUW has not taken a position on this bill.