Improving Our Business Climate A Policy Agenda for the Top 10 2013-2014 Legislative Session
Improving our Business Climate • Wisconsin has made significant progress in business climate rankings: • CEO Magazine: 20th (43rd in 2008) • CNBC: 17th (37th in 2008) • Site Selection Magazine: 13th
State Budget • After years of multi-billion dollar deficits, Wisconsin entered the 2013-2015 budget cycle with a surplus. • The surplus will enable income tax reductions and additional funding for public schools and the UW System.
State Budget – Summary • Total spending over the 2-year cycle is $68.24 billion – a 2.7% increase over the current budget. • The spending increase is driven by: • $2.05 billion increase in DHS • $393 million increase in UW System • $288 million increase in DPI
Budget - Taxes • General fund tax collections over the 2-year cycle are estimated at $28.5 billion. • Individual Income Tax - $15 billion (52.8%) • Sales & Use Tax – $9.1 billion (31.9%) • Corporate Income Tax - $1.8 billion (6.4%) • Budget proposes $1.03 billion in bonding, or 1.5% of revenue.
State Budget – FTE Positions • The budget proposes an additional 300 full-time state employee positions funded by GPR, driven by: • 183 positions at Dept. of Health Services • 66 positions at Corrections • 17 positions at Dept. of Justice • 16 positions at Dept. of Revenue
State Budget – Tax Policy • $340 million income tax reduction over the 2-year budget, targeted at taxpayers earning less than $161,180. • Continues implementation of manufacturing & agricultural production tax credit. • “Prior Audit” tax reform • Maintain property tax controls
State Budget - Medicaid • Governor proposed to set Medicaid eligibility at 100% of federal poverty level (FPL), as opposed to 133% (FPL) under “full” Obamacare expansion. • 133% FPL is equivalent of $15,282 for a single person, $20,628 for a married couple, or $31,322 for a family of 4.
State Budget – Worker Training • Governor already signed $15 million worker training package, including Labor Market Information System. • Budget proposes additional $5 million for tech colleges, with a funding tie to skills gap. • Frees up $22 million in existing funding for areas of high demand.
State Budget - Transportation • Revenue projected at $3.3 billion over the 2-year cycle: • $2 billion gas taxes • $1.2 billion vehicle registration fees • Budget also proposes $944 million in bonding for road projects.
Regulatory Reform • Retroactively review and repeal obsolete regulations • Harmonize state and federal regulations • Ensure agencies regulate by rule instead of guidance
Civil Justice & Legal Reform • Prevent plaintiffs from recovering phantom damages • Enact the Personal Injury Trust Claims Transparency Act • Provide transparency in government contingency contracts • Place reasonable limitations on lawsuit lending • Remove felons as a protected class under the Fair Employment Act
Environment & Energy • Enact comprehensive iron mining reform • Align state and federal environmental standards • Streamline air permitting • Repeal the mining moratorium
Environment & Energy • Avoid expensive energy mandates • Hold the line on energy taxes • Repeal the moratorium on nuclear energy
Jobs & Economic Development • Establish an effective venture capital program • Accelerate Technology Transfer • Establish a pro-jobs culture in government agencies
Affordable Health Care • Promote consumer-driven health care and access to cost and quality date • Repeal or reform the federal Affordable Care Act • Avoid mandates that increase insurance costs • Maintain an employer-based system
Human Resources & Employment Law • Reform Wisconsin’s Family and Medical Leave Act (FMLA) • Reform Wisconsin’s Wage and Hour laws • Strengthen restrictive covenant protections • Strengthen cost controls for workers compensation
WMC Contacts(608) 258-3400 Kurt Bauer President/CEO email@example.com Scott Manley Vice President, Government Relations firstname.lastname@example.org Jason Culotta Director, Tax and Transportation Policy email@example.com