Posted:
April 3, 2003
Updated: August 11, 2003
Updated: August 11, 2003
GRAFT TAX SCORECARD
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Two Wisconsin Democracy Campaign reports issued earlier this year detailed how tax breaks, loopholes and other state spending decisions benefit special interests who make large campaign contributions to state policy makers at the expense of taxpayers.
“The Graft Tax” issued in January showed that these perks cost Wisconsin taxpayers $4.6 billion a year, or $1,199 each. A follow-up report, “Graft Tax (Part 2),” issued in March upped the ante to $5 billion in breaks and loopholes that cost each Wisconsin taxpayer $1,305 a year. The latest report was issued after Democratic Gov. Jim Doyle issued his 2002 budget repair bill and proposed 2003-05 state budget in response to deficits totaling nearly $3.7 billion from 2002-05. Doyle proposed eliminating only $1 million of the $5 billion in special interest breaks identified by WDC while cutting programs and increasing fees and other costs hundreds dollars per year on the elderly, disabled, homeowners and other sectors of the general public. In a continuing effort to shed light on the policymaking process and how cash constituents often fare better than voting constituents, WDC intends to track the action taken on items identified in the “Graft Tax” reports and other sources at each juncture of the budget process. We also will reveal the amount of campaign contributions the decision makers have accepted from the special interests that are affected by the proposals. The following tables identify the budget items WDC intends to track and the action to be taken during the budget process. After the budget is proposed by the governor the Legislature's Joint Finance Committee, which is dominated 12-4 by Republicans, spends several weeks making changes it deems necessary before sending it on to the Senate and Assembly, which also are dominated by Republicans, for revisions and passage. If both houses fail to agree on each other's changes, a committee of legislative leaders, known as a conference committee, crafts a compromise budget and submits it again to the full Legislature for approval. The budget is then sent to the governor who can use his veto power to remove or change policy and spending items before signing it. A down-loadable Microsoft Word version of this document is available. |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
|---|---|---|---|---|
| Shrinking Corporate Tax Burden | All sectors of the business community | Left unchanged an $839.7 million a year tax break based on the difference between its 2002 share of the tax burden, versus its peak share in 1979. (Doyle has received nearly $1.5 million in campaign contributions from these groups since 1995.) | Joint Finance | No change. (JFC members have received nearly $2 million in campaign contributions from these interests since 1993.) |
| Senate | No
change. (Senators have accepted $4.9 million in campaign contributions
from these special interests since 1993.) |
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| Assembly | No
change. (Assembly members have accepted $4.8 million in campaign
contributions from these special interests since 1993.) |
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| Final by Governor | No Change. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Road Construction | Road builders and associated unions | Spends about $1.6 billion on state highway construction and maintenance in 2003-05 - 30 percent higher than the national average over two years - to maintain a pressing road-building schedule and even increases projects. (Doyle has accepted $257,625 in contributions from road builder interests since 1995, nearly $128,000 of which he got in the last four months of his campaign for governor.) | Joint Finance | Increases
spending on state highway construction and maintenance to about $1.94
billion in 2003-05 by reviving 99 highway projects worth $250 million
that were delayed by Doyle, among other items. Also cuts highway maintenance
aid to local governments by $15 million and adds $50 million a year to
the major road building budget by diverting sales tax paid on cars from
the general fund to the Transportation Fund. Also adds four long-term
major road projects worth $500 million. (JFC members have received $89,550
from road builders and related unions since 1993.) |
| Senate | Adopts
Joint Finance proposal. (Senators have accepted $311,903 in campaign
contributions from these special interests since 1993.) |
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| Assembly | Adopts
Joint Finance proposal. (Assembly members have accepted $318,360
in campaign contributions from these special interests since 1993.) |
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| Final by Governor | Uses vetoes to cut legislative proposal on major road building and rehabilitation in 2003-05, but still spends $77 million more than was spent on road building and rehabilitation in 2001-03. Vetoes legislative plan to divert $49 million a year in auto sales taxes from the general fund to the Transportation Fund. Fails to restore $15 million in local roads maintenance aid and allows 83 of 99 previously delayed road projects to move ahead. Declines to veto $500 million in future major road projects added by Legislature. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Loopholes in Farmland Use Value Tax | Agriculture, developers and real estate interests | No change to existing law which provides ever increasing property tax cuts that totaled $251 million in 2002 to farm property owners, but fails to require more accountability by farmers claiming the credit, or to close loopholes that also give breaks to non-farming owners of agricultural land. (Doyle accepted $22,250 since 1995 from agricultural interests which traditionally support Republican candidates.) | Joint Finance | Orders study of changes to use-value assessment formula. (JFC members have received $475,855 from these interests since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $1.3 million in campaign contributions from these special interests since 1993.) | |||
| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $1.3 million in campaign contributions from these special interests since 1993.) | |||
| Final by Governor | Uses
veto to require the Department of Revenue to study and implement changes
in use-value assessment formula, rather than a legislative review process.
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Forest, Swamp and Wasteland Tax Cut | Agriculture | Not applicable; added by JFC. | Joint Finance | Requires
those lands located on farm property to be taxed at 50 percent of assessed
value. No estimate of total statewide reduction is available at this time.
(JFC members have received $475,855 from these interests since
1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $1.3 million in campaign contributions from these special interests since 1993.) | |||
| Assembly | Adopts
Joint Finance proposal. (Assembly members have accepted $1.3 million
in campaign contributions from these special interests since 1993.) |
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| Final by Governor | Approves proposal but uses vetoes to require that the break only apply to land owned by farmers. Estimated value is $26 million annually. (Doyle has received $28,250 from these interests since 1993.) | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Sales and Property Tax Exemptions | Commercial business, manufacturing finance, agriculture and numerous professional service providers | Preserves $2.5 billion worth of sales tax exempt property and services; $717 million worth of property tax exemptions. (Doyle has accepted $3 million since 1995 from special interests who benefit from these exemptions.) | Joint Finance | No change. (JFC members have received $2.3 million from these interests since 1993.) |
| Senate | No change. (Senators have accepted $3.6 million in campaign contributions from these special interests since 1993.) | |||
| Assembly | No
change. (Assembly members have accepted $3.4 million in campaign
contributions from these special interests since 1993.) |
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| Final by Governor | No
change. |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Ethanol Subsidies | Agriculture | Cuts by $1 million the $3 million a year state subsidy for ethanol producers. (Doyle accepted $22,250 since 1995 from agricultural interests which traditionally support Republican candidates.) | Joint Finance | Restores $1 million cut and adds another $1 million per year. (JFC members have received $63,912 from agriculture interests since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $230,123 in campaign contributions from this special interest since 1993.) | |||
| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $260,540 in campaign contributions from this special interest since 1993.) | |||
| Final by Governor | Uses veto to cut ethanol subsidies to $1.9 million a year. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Qualified Economic Offer | Public school teachers | Elimination of the 3.8 percent limit on salary and benefit increases that teachers may receive. ($4 million in campaign contributions, issue ad and independent spending since 1995 to Doyle and mostly Democratic candidates.) | Joint Finance | Rejects governor's proposal. (JFC members have received $33,370 from teachers unions since 1993.) |
| Senate | Adopts Joint Finance proposal. (Mostly Democratic senators have accepted $228,895 in campaign contributions from this special interest since 1993.) | |||
| Assembly | Adopts
Joint Finance proposal. (Mostly Democratic Assembly members have accepted
$302,493 in campaign contributions from this special interest since
1993.) |
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| Final by Governor | No
action because proposal was removed by Legislature. |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Nursing Home Assessments and Forfeiture Surcharges | Nursing Homes | A $101.7 million increase in nursing home bed assessments to leverage more federal funds and pay for a 3.3 percent increase in the nursing home reimbursement. (Doyle accepted $2,100 in campaign contributions since 1995 from the industry.) | Joint Finance | Reduces
bed assessment increase to $54.6 million and provides $8 million
in taxpayer dollars to help fund a 3.2 percent increase in the nursing
home reimbursement rate. Rejects the governor's proposed forfeiture increases
for nursing home violations. (JFC members have received $14,468
from the industry since 1993.) |
| Senate | Adopts
Joint Finance proposal. (Senators have accepted $26,950 in campaign
contributions from this special interest since 1993.) |
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| Assembly | Adopts
Joint Finance proposal. (Assembly members have accepted $42,074
in campaign contributions from this special interest since 1993.) |
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| Final by Governor | Vetoes using $8 million in taxpayer dollars to help fund state reimbursement increase, effectively setting the rate increase at 2.6 percent. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Annual Business Reports from Limited Liability Companies | Business | Collects $2.7 million a year through a new $25 annual filing requirement for LCCs. (Doyle has accepted $162,657 in campaign contributions since 1995 from the business community.) | Joint Finance | Retains governor's proposal. (JFC members have received $206,928 from the business community since 1993.) |
| Senate | Adopts governor's proposal. (Senators have accepted $544,728 in campaign contributions from this special interest since 1993.) | |||
| Assembly | Adopts
governor's proposal. (Assembly members have accepted $486,462
in campaign contributions from this special interest since 1993.) |
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| Final by Governor | Approves
proposal. |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Health Maintenance Organization Assessments | Health maintenance organizations | Collects $77.2 million a year through an assessment to increase federal aid and redistribute to certain HMOs. (Doyle has accepted $14,094 in campaign contributions since 1995 from HMO employees and PACs.) | Joint Finance | Rejects after governor pulled proposal. (JFC members have accepted $13,035 from this industry since 1993.) |
| Senate | No proposal. (Senators have accepted $59,387 in campaign contributions from this special interest since 1993.) | |||
| Assembly | No
proposal. (Assembly members have accepted $87,254 in campaign
contributions from this special interest since 1993.) |
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| Final by Governor | No
action because proposal was dropped. |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Health Data Collection Contract | WI Health and Hospital Association | Not applicable; added by JFC. | Joint Finance | Gives group a $750,000 no-bid contract to collect data. (JFC members have received $20,782 from hospital executives since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $77,599 in campaign contributions from the hospital industry since 1993.) | |||
| Assembly | Adopts
Joint Finance proposal. (Assembly members have accepted $93,916
in campaign contributions from the hospital industry since 1993.) |
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| Final by Governor | Approves data collection agreement. (Doyle has accepted $36,203 in campaign contributions from the hospital industry since 1993.) | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Recycling Fee Exemption for PCB Cleanup | Paper mills | Not applicable; added by JFC | Joint Finance | Approves a $1 million break from the $3 per ton recycling fee for paper companies removing PCBs from the Fox River. (JFC members have received $25,630 from the paper industry since 1993.) |
| Senate | Adopts
Joint Finance proposal. (Senators have accepted $57,650 in campaign
contributions from this special interest since 1993.) |
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| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $86,459 in campaign contributions from this special interest since 1993.) | |||
| Final by Governor | Approves fee exemption. (Doyle has accepted $35,830 in campaign contributions from the paper industry since 1993.) | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Lower Blood Alcohol Concentration (BAC) Standard | Beer distributors, tavern and restaurant industries | Lower BAC from 0.1 to .08 and retain existing penalties. (Doyle has accepted $26,760 in campaign contributions from these interests since 1995.) | Joint Finance | Deletes proposal in favor of a separate bill that lowers BAC to .08 but reduces first offense OWI penalties. (JFC members have accepted $77,541 from these interests since 1993.) |
| Senate | Adopts
Joint Finance proposal and approves separate .08 BAC legislation that
reduces first offense penalties. (Senators have accepted $272,468
in campaign contributions from these special interests since 1993.) |
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| Assembly | Adopts
Joint Finance proposal and approves separate .08 BAC legislation that
reduces first offense penalties. (Assembly members have accepted $376,976
in campaign contributions from these special interests since 1993.) |
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| Final by Governor | Proposal
dropped from budget by Legislature. Doyle signs separate legislation
that lowers BAC to .08 and reduces first offense penalties. (Doyle has
accepted $89,856 in campaign contributions from these interests
since 1993.) |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Weakening
of Video Gambling Machine Prohibition |
Taverns |
Not
applicable; added by JFC |
Joint Finance | Prohibits
Department of Justice and local law enforcement from enforcing laws that
prohibit video gaming in taverns and transfers enforcement authority to
the Department of Revenue. (The tavern industry has contributed $52,716
to Finance Committee members since 1993.) |
| Senate | Adopts
Joint Finance proposal. (Senators have accepted $156,863 in campaign
contributions from this special interest since 1993.) |
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| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $227,706 in campaign contributions from this special interest since 1993.) | |||
| Final by Governor | Approves
Joint Finance proposal. (Doyle has accepted $23,505 in campaign
contributions from this special interest since 1993.) |
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| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| School Choice Program | Milwaukee area and out-of-state business interests | Not applicable; added by JFC. | Joint Finance | Lifts participation and eligibility requirements on the number of schools and pupils who can be in the program. (JFC members have accepted $13,800 from pro-school choice interests since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $52,425 in campaign contributions from school choice supporters since 1993.) | |||
| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $64,920
in campaign contributions from school choice supporters since 1993.) |
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| Final by Governor | Vetoes Joint Finance Committee proposal to expand participation and eligibility requirements. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Pharmacy Reimbursement Rate |
Pharmacists |
Governor proposes a $58 million cut in reimbursements to pharmacies
that dispense drugs to Medical Assistance, SeniorCare and BadgerCare program
participants. (Doyle has accepted $650 from pharmacists since 1995.) |
Joint Finance | Reduces governor's proposed reimbursement cut to $7 million. (JFC members have accepted $8,105 from pharmacists since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $21,235 in campaign contributions from this special interest since 1993.) | |||
| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $23,034
in campaign contributions from this special interest since 1993.) |
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| Final by Governor | Uses vetoes to cut pharmacy reimbursement rate by $10 million. | |||
| Item | Affected Special Interest(s) | Value of Benefit or Expense to Special Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Patient's Compensation Fund | Healthcare professionals | Doyle proposed drawing $200 million from the fund, which provides supplemental medical malpractice coverage, to help pay for Medical Assistance costs. (Doyle has accepted $331,257 from healthcare professionals since 1995.) | Joint Finance | Rejects governor's proposal. (JFC members have accepted $222,675 from healthcare professionals since 1993.) |
| Senate | Adopts Joint Finance proposal. (Senators have accepted $705,274 in campaign contributions from this special interest since 1993.) | |||
| Assembly | Adopts Joint Finance proposal. (Assembly members have accepted $833,866 in campaign contributions from this special interest since 1993.) | |||
| Final by Governor | Accepts Joint Finance proposal, saying he cannot change it with vetoes. | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
|---|---|---|---|---|
| Prison Construction and Cost of Operations | Taxpayers | A $79.2 million increase in tax dollars to state prison budget; spends $13.2 million to keep two state prisons closed that are too expensive to open; and spends $53 million a year to house inmates out of state. | Joint Finance |
Reduces governor's increase in tax dollars to the prison budget to a $54 million increase; spends $26.7 million to open two new prisons mothballed by the governor at a cost of $13.2 million in order to reduce the amount spent to house inmates outside the state. |
| Senate | Adopts Joint Finance proposal. | |||
| Assembly | Adopts Joint Finance proposal. | |||
| Final by Governor | Approves Joint Finance proposal to open the two newly built prisons at a reduced cost of nearly $13 million and reduce the amount spent to house inmates outside the state (no cost reduction estimate yet available.) | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Increased court fees | General public | A $20.9 million increase in circuit and appellate court filing, service and other fees. | Joint Finance | Approves $23.1 million in increases |
| Senate | Adopts Joint Finance proposal. | |||
| Assembly | Adopts Joint Finance proposal. | |||
| Final by Governor | Approves
Joint Finance proposal. |
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| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| SeniorCare, BadgerCare and Medical Assistance | Elderly and poor | A $39.2 million increase through eligibility, enrollment fee, drug co-payment, premium and deductible increases. | Joint Finance | Approves additional enrollment fee, drug co-payment and deductible increases to governor's SeniorCare plan to increase total proposed fee increases to $83.3 million. |
| Senate | Adopts Joint Finance proposal. | |||
| Assembly | Adopts Joint Finance proposal. | |||
| Final by Governor | Vetoes $10 million SeniorCare co-payment increase. | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Hunting and Fishing License Fee Increases | People who hunt and fish | A $23.3 million increase in hunting and fishing fees. | Joint Finance | Reduces fee increases to about $11.6 million. |
| Senate | Adopts Joint Finance proposal. | |||
| Assembly | Adopts Joint Finance proposal. |
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| Final by Governor | Approves Joint Finance proposal. | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Automobile Fees | Drivers - General Public | A $99.9 million increase in vehicle registration, titling and environmental impact fees. | Joint Finance | Approves an estimated $106.9 million in fees increases. |
| Senate | Adopts Joint Finance proposal. |
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| Assembly | Adopts Joint Finance proposal. |
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| Final by Governor | Approves Joint Finance proposal. | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| New General Equivalency Degree Fees | Recipients of High School Equivalency Degrees | Collects $168,900 through a new fee for issuing GEDs | Joint Finance | Adopts governor's proposal. |
| Senate | Adopts governor's proposal. |
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| Assembly | Adopts
governor's proposal. |
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| Final by Governor | Approves proposal. | |||
| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| University of Wisconsin Tuition Increases | UW students | A $150 million tuition increase, or as much as 19 percent or $700 a year at the Milwaukee and Madison campuses and $500 a year at the out-state campuses. | Joint Finance | Adopts governor's proposal. |
| Senate | Adopts governor's proposal. | |||
| Assembly | Adopts governor's proposal. |
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| Final by Governor | Approves
proposal. |
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| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Personal Needs Allowance Reduction | Medical Assistance recipients cared for in public institutions | An $8.2 million benefit cut that reduces from $45 to $30 a month the amount that MA recipients may keep for personal needs. The $15 cut goes to the institution for the cost of care. | Joint Finance | Rejects after governor drops proposal. |
| Senate | No proposal. | |||
| Assembly | No proposal. |
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| Final by Governor | No
proposal. |
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| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Children with Autism Program | Children with autism who receive in-home therapy | Eliminate the in-home therapy program to save $8.3 million a year in state funds. | Joint Finance |
Restores program at a cost of $8.7 million in state funds, but restricts how long a child may be in the program and requires some participants to pay costs. |
| Senate | Adopts Joint Finance proposal. |
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| Assembly | Adopts Joint Finance proposal. |
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| Final by Governor | Approves
proposal. |
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| Item | Affected Public Interest(s) | Value of Benefit or Expense to Public Interest in Governor's Proposed 2003-05 Budget | Subsequent Actions | |
| Local Government and School Aid Reductions | Homeowners and/or Children | Existing law and Doyle's budget cuts a total of $520 million local government and school aid that must be rectified by cuts in local services and school programs and/or property tax increases and larger class sizes. | Joint Finance | Reduces total cuts in school and local aids to an estimated $411 million. |
| Senate | Adopts Joint Finance proposal. |
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| Assembly | Adopts Joint Finance proposal. |
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| Final by Governor | Approves an estimated $361 million in cuts to school and local government aids. Restores $46 million in aid cut by the committee to fund four-year-old kindergarten programs, prevents school districts from opting out of a program to reduce class sizes, eliminates a $100 annual limit on per-pupil spending increases by school districts and eliminates proposed levy limits to restrict property tax increases. | |||
A down-loadable Microsoft Word version of this document is available.
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