The 2009-2011 State Budget has been signed into law by Governor Doyle.
At our last WCA eNews report, the budget had been passed by both houses of the Legislature but a conference committee version of the bill had not yet been agreed to. Since that time action on the budget came very, very quickly.
The rush for action was motivated by a need for Governor Jim Doyle to sign the budget no later than June 29 if it were to be effective before the end of the state's fiscal year on June 30.
If the bill had not been effective by June 30, millions of dollars in federal Medicaid dollars would have been forfeited. In addition, millions more in federal highway aid would have been lost if Wisconsin had not ratified primary enforcement of seat belts by June 30 - a provision that was included in the conference committee version of the bill.
The federal aid lost would have been a loss for Wisconsin, but it is also important to remember that the 2009-2011 state budget was constructed and was defined as "balanced" on a set of assumptions that include the state's collecting these aids from Washington.
With swift action essential, a conference committee on AB 75 (the budget bill) was convened by legislative leadership. The committee met and approved a version of the bill on Thursday evening, June 25. That same evening, the State Senate approved that conference report (actually, the vote came around 12:30 a.m. early Friday morning, June 26) and the State Assembly approved the conference report on Friday evening, June 26 around 7:00 p.m..
Governor Doyle signed the budget bill Monday, June 29, just as state leaders had hoped and had planned. It was the first time since 1977 that a state budget in Wisconsin was signed into law prior to the end of the previous biennial budget on June 30.
WCA is now preparing a comprehensive summary of the final, post-vetoes version of the state budget - the version that has become law. We hope to have this document ready next week, the week of July 6. Until then, WCA is happy to assist county officials in understanding the details of the budget and its many provisions.
A summary of the conference committee provisions is available online here.
Governor Doyle's veto message (including a list of items vetoed wholly or in part) is available online here.
Items of note from the final version of the budget include:
INCREASED COURT FEES
Senate/Conference Committee: Include provision to increase the $5 fee collected by clerks of courts for judgments, writs, executions, liens, warrants, awards, and certificates to $10. [Revenue is wholly retained by the county or municipality.] VETOED BY THE GOVERNOR.
INDIGENT LEGAL DEFENSE
The final legislative budget included a provision to increase the indigency standard and make related changes effective June 30, 2011. VETOED BY THE GOVERNOR.
FOSTER CHILDREN AND FOSTER PARENT BILL OF RIGHTS
This package of provisions VETOED BY THE GOVERNOR.
COUNTY NURSING HOMES -- SUPPLEMENTAL PAYMENTS
Conference Committee: Increase, from $37,100,000 to $39,100,000, the annual amount of funding budgeted for DHS to provide as supplemental MA payments to municipally-owned nursing homes. Provide $2,000,000 ($2,000,000 GPR, $1,409,000 FED and -$1,409,000 SEG) in 2009-10 and $2,000,000 ($2,000,000 GPR, $1,311,000 FED and -$1,311,000 SEG) in 2010-11 to reflect the net cost of this item. Reduce estimates of SEG revenue to the MA trust fund by $1,409,000 in 2009-10 and by $1,311,000 in 2010-11 to reflect estimated reductions in revenue that would be generated from the certified public expenditure (CPE) program. These revised estimates are based on lower anticipated operating deficits at municipally-owned nursing homes associated with the higher supplemental payments. AMOUNT OF ADDITIONAL FUNDS REDUCED BY GOVERNOR'S VETO BUT RETAINED IN PART.
COUNTY SHARE OF COSTS OF CARE FOR CHILDREN AND ELDERLY PATIENTS AT THE MENTAL HEALTH INSTITUTES Senate/Conference Committee: Provide $1,301,300 in 2009-10 and $1,296,300 in 2010-11 to permit counties to benefit from the enhanced federal medical assistance percentages (FMAPs) that apply under the American Recovery and Reinvestment Act of 2009 (ARRA) as it relates to DHS charges for the care of children and elderly patients at the state mental health institutes (MHIs). Require DHS to calculate the counties' share of these costs by using the FMAP that is applicable when the service is provided. Currently, the GPR savings assumed in the substitute amendment reflect the assumption that DHS would retain the additional federal matching funds associated with the enhanced FMAPs.
Allowing counties to retain the benefit from the enhanced federal matching rate would reduce county costs incurred for care provided to individuals at the MHIs in the 2009-11 biennium. In addition, modify the provisions relating to the emergency detention of individuals by permitting a law enforcement officer or other person authorized to take an individual into custody to transport the individual to a treatment facility only if the local county department of community programs in the county in which the individual was taken into custody approves the individual's detention in the state facility. SIGNED INTO LAW.
911 GRANT PROGRAM AND SURCHARGE
After the Joint Finance Committee initially approved a program in this area largely as one had been agreed to by WCA and various telecommunications providers, the Finance Committee reversed its action. The committee created a new surcharge on telecommunications services; the surcharge was defined as a police and fire protection fee and the proceeds were redirected to the shared revenue program. The Senate and the Conference Committee retained this language but adjusted it to stipulate that in two years the surcharge would, in fact, be ended, re-created as a funding source for a county 911 grant program, and that this county 911 grant program would be created in 2011. VETOED THE RESTORATION OF THE 911 GRANT PROGRAM IN TWO YEARS.
MAINTENANCE OF EFFORT FOR POLICE AND FIRE PROTECTION SERVICES
When the 911 grant program was changed, a maintenance-of-effort requirement for police and fire protection services was added to the budget that would affect county and municipal government. The Senate and Conference Committee adjusted the requirement to add capital expenditures to onetime expenses as items that may be excluded from the maintenance of effort requirement. The provision specified that the Department of Revenue may adjust the reported amounts to ensure that excluding any one-time expenses or capital expenditures does not compromise the level of service for providing emergency services. In addition, it specified that the definition of emergency services under this provision includes only those emergency services expenditures that are funded with payments under the county and municipal aid program. SIGNED INTO LAW.
MODIFICATIONS TO PREVAILING WAGE PROVISIONS
Senate definitions and adjustments were adopted by conference committee, see document for details. The Governor's veto adjusted these provisions further. WCA is working with legal counsel and the Wisconsin County Highway Association (WCHA) to interpret and summarize the full meaning of these provisions. We will continue to provide information as it becomes available.
PUBLIC WORKS CONTRACTS AND BIDS -- LIMITATION ON WORK PERFORMED BY COUNTY HIGHWAY DEPARTMENTS
This provision originated in the Senate version of the budget and was quite controversial as it greatly limited county highway crews' abilities to work for municipalities. The Conference Committee changed it to simply prohibit counties from performing construction work, including road work, for a project that is directly or indirectly owned, funded, or reimbursed, in whole or in part, by a private person. THIS ITEM VETOED BY THE GOVERNOR.
PETROLEUM INSPECTION FUND TRANSFER TO TRANSPORTATION FUND
Conference Committee: Transfer $10,000,000 in 2009-10 and $17,800,000 in 2010-11 from the petroleum inspection fund to the transportation fund and $9,200,000 in 2010-11 from the petroleum inspection fund to the general fund. Under the Conference Committee amendment, the estimated biennium-ending balance in the petroleum inspection fund would be approximately $5 million. SIGNED INTO LAW.
DELETE TRANSFER FROM THE TRANSPORTATION FUND TO THE GENERAL FUND
Conference Committee: Delete a provision of the Joint Finance substitute amendment that would transfer $139,712,200 from the transportation fund to the general fund. Reduce general fund revenue by $69,775,100 in 2009-10 and $69,937,100 in 2010-11 to reflect this change. SIGNED INTO LAW.
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