April 18, 2014
From journaltimes.com: “Gateway property taxes cut in half” — BURLINGTON — The property taxes local residents will pay for Gateway Technical College next year are to be cut in half thanks to an act of the Legislature passed this year, according to officials and Gateway’s proposed 2014-15 budget presented Thursday.
The total amount taxpayers are budgeted to pay next year for Gateway is $28.98 million, down from $60 million this year.
“Homeowners will see a reduction in their local property taxes which gives them the relief they are looking for and Gateway has been able to demonstrate good performance, so we’ll see an increase in the revenue streams to support ongoing training,” Gateway President Bryan Albrecht said following a budget presentation Thursday at the Gateway Technical College District Board meeting in the HERO Center, 380 McCanna Parkway, in Burlington.
Under Act 145, the property tax relief act passed this year, the state will pick up a large portion of what local property taxpayers usually pay for technical colleges throughout the state, explained Conor Smyth, a spokesman for the Wisconsin Technical College System. It doesn’t mean a new pool of money for technical colleges, he said. It means local taxpayers will pay less, while statewide taxpayer dollars, now part of the state surplus, will be more heavily relied upon.
The surplus is the result of holding down spending, Act 10 savings, and the growing economy, according to state Rep. Robin Vos, R-Rochester.
Change in state funding
Statewide, local property taxpayers used to pay 68 percent of the cost of technical colleges. That is now reduced to 33 percent, and the amount the state pays is going from 9 percent to 44 percent, Smyth said.
For Gateway, approximately $32 million is being moved from local property taxes to the state. That means about $83 in property tax relief for someone with a $100,000 home.
Vos, the Assembly speaker, said the biggest complaint he hears from constituents is about taxes and this provides relief, but state Rep. Cory Mason, R-Racine, said instead of simply swapping out property taxes more money should have gone to technical colleges for worker training, and he had proposed a bill that would have done that.
Mason said he voted against Act 145 not because he thinks the property tax cut is bad, but because technical college funding needs to be restored to prior levels.
“All the money they put into the technical college went to property tax relief, nothing from that bill went for job training or getting people back to work … If jobs really is the No. 1 issue, we should be investing in things that get people back to work.”
Albrecht said the college is getting additional state funding through a new performance-based calculation that rewards the school for doing well. The college has also applied for an additional $2.7 million through what is being called the Blue Print for Prosperity, according to Albrecht. That includes money for more boot camps, among other things.
Additional budget items
Overall, Gateway’s proposed total budget is down from $161.62 million to $156.76 million. Albrecht attributed that in part to Act 10, which essentially eliminated collective bargaining for public employees. It allowed Gateway to make changes to benefits such as retirement and health insurance, he said. Also he said over the last three years there were approximately 85 retirements, which contributed to the college’s savings because employees who had been with Gateway used to receive longevity pay based on the number of years they were with the college. Now he said instead of budgeting for longevity pay, they have funds budgeted for merit-based pay increases.
“We certainly want to be an employer of choice and recognize employees for the great work they are doing,” Albrecht said.
February 14, 2014
From leadertelegram.com: “Candidate tours tech: Democrat running for governor discusses worker education, jobs” — By Joe Knight Leader-Telegram staff – Wisconsin Democratic gubernatorial candidate Mary Burke said Thursday she supports a proposal by her opponent, Gov. Scott Walker, to spend $35 million to help the state’s technical colleges provide additional training for high-demand jobs.
She also supports the governor’s initiative to find work for people with developmental disabilities.
However, Burke said the proposal would require future funding for technical colleges to keep those efforts ongoing.
Burke spoke briefly with reporters during a tour of high-tech industrial programs at Chippewa Valley Technical College’s Gateway Campus. She criticized Walker for cutting $71 million from technical colleges in the first budget he oversaw as governor “just at the time when our technical colleges needed a boost.”
At the time Walker said budget cuts were needed because of a $3 billion state budget shortfall.
Burke said the types of high-tech manufacturing skills being taught at CVTC would help the middle class and would help grow the state’s economy. She spent time speaking with CVTC students, asking them about their career aspirations.
Jamie Rasmussen, a 35-year-old CVTC welding student, said more funding for CVTC programs will help more of them receive the training they need to find jobs.
Asked whether the process she observed Thursday could help build bicycles, Burke, a former Trek Bicycle executive and a former commerce secretary under Democratic Gov. Jim Doyle, said she wasn’t sure but noted Trek works closely with technical colleges in southern Wisconsin.
January 17, 2014
From lacrossetribune.com: “Wisconsin budget surplus nears $1 billion” — By Scott Bauer -Wisconsin’s budget surplus was projected Thursday to reach nearly $1 billion, money that Gov. Scott Walker and Republican legislative leaders are eyeing for income and property tax cuts.
But news of the $977 million surplus, which was expected for weeks but larger than many anticipated, set off a feeding frenzy in the Capitol among lobbyists, special interest groups and lawmakers.
“Everybody and their cousins from other states will be coming home to get a piece of the money,” said Republican Senate President Mike Ellis, who has served through several budget booms and busts since he took office in 1971.
Walker and Republican leaders tried to dampen expectations for more spending, saying the money generated mostly through higher-than-anticipated tax collections should be returned to taxpayers. But Democrats and other liberal advocacy groups said it should be used for everything from aid to public schools and higher education, Medicaid and worker training grants.
“The additional revenue should be returned to taxpayers because it’s their money, and my administration will work with the Legislature to determine the most prudent course of action,” Walker said in a statement.
Walker has been talking with Republicans who lead the Senate and Assembly about tax cut proposals he plans to release in his State of the State speech next Wednesday. Walker’s spokeswoman Jocelyn Webster said the governor wants to adjust income tax withholding tables to put more money in taxpayers’ pockets immediately and is also eyeing income and property tax reductions.
The question will be how any tax cuts are structured.
Walker’s getting pressure from Republican Assembly Speaker Robin Vos to use the surplus to reduce property taxes levied and collected by technical colleges in Wisconsin. Republican Senate Majority Leader Scott Fitzgerald said he wasn’t convinced that was the only approach that could be taken. Fitzgerald said some in his caucus will want to save a portion of the surplus to be used for ongoing spending commitments.
Still, the pressure to send some of the surplus back to taxpayers will be strong.
“My members wouldn’t sit still for doing nothing,” Fitzgerald said.
Meanwhile, Walker isn’t saying much about what he will propose.
“The governor is focused on property and income tax relief and not necessarily other broad policy decisions at this point,” Webster said.
Democrats called for using the money to spur job creation and programs like worker training that would help the middle class.
“Taxpayers need a balanced approach that rebuilds the rungs on the ladder of success, provides tax relief directed to the middle class and long-term financial security,” said Assembly Democratic Minority Leader Peter Barca.
The net total surplus of $977 million was fueled by $893 million in tax collections above earlier projections, the nonpartisan Legislative Fiscal Bureau reported. Net tax collections are projected to increase by 2.2 percent by July and another 4.3 percent by mid-2015.
Vos is pushing for replacing the technical college property tax levy with general state tax dollars.
The 16 technical college districts in Wisconsin cover the entire state, so supplanting property tax revenue with state money would lower property tax bills for homeowners statewide. The average property tax levy this year was $1.76 per $1,000 of assessed value.
Depending on how it’s structured the amount any individual homeowner would save would vary based on the value of their home and the amount of the local technical college district levy.
“I want to make sure we do something that everybody in Wisconsin feels,” Vos said.
Replacing a portion of the technical college property tax levy with state money is the most equitable way to provide property tax relief statewide, Vos said. Technical colleges levied about $796 million in property taxes this fiscal year. That is the fourth most behind school districts at $4.8 billion, municipalities at $2.6 billion and counties at $2 billion.
Conor Smyth, a spokesman for the Wisconsin Technical College System, had no comment on Vos’s idea.
“We’re looking forward to learning more about what the proposal is,” Smyth said.
Vos said he did not know if Walker would be proposing an income tax rate reduction in addition to changing income tax withholding tables. Changing withholding tables would result in taxpayers getting more money back in their paychecks immediately, instead of receiving a larger income tax refund. The tables have not been updated since 2009.
From wxow.com: “State budget outlines K-12 funding” — Governor Walker made a stop at Western Technical College Monday, as part of what he’s calling his “Working for Wisconsin Tour.” The governor’s speech focused on the newly signed budget and what he sees as the benefits for the state, including a $650 million income tax cut. The budget also includes K-12 education funding for the next two years.
“We want to continue to transform education in this state so we put more money in our public schools, about $300 per student over the next two years, in our public schools,” Gov. Walker said. “We provide more educational options for our families.”
All Democrats in the Senate and Assembly voted against the budget, in part because the K-12 education funding. Rather than $300 dollars per pupil over the two years, Democrats hoped for close to $550 per, money they say could have come from other portions of the budget.
“We don’t think that the income tax break is a really logical thing because most people won’t even notice the couple dollars a week that it’s going to benefit them,” said Rep. Steve Doyle, a Democrat from 94th Assembly District. “That money we think would have better gone to K-12 education so that we really can fund our schools to the level they need to be funded. Talking with my local school superintendents, they’re not sure what they’re going to do to make ends meet in this next budget.”
But the governor says schools are finding ways to operate within their state mandated means, citing a Wisconsin Center for Investigative Journalism report released last week, that shows many districts in the state maintained the same amount of full time staffers or close to it over the last few years. The governor says the funding Democrats wanted just wasn’t in the numbers.
“The last time the Democrats had control of the budget process, they raised taxes more than $1 billion, they raised taxes via local property taxes, and they still cut money from public education,” Gov. Walker said.
Still it’s not all disagreement between the two parties, one portion of the budget garnering bipartisan support is a two-year tuition freeze for UW-System. Both the governor and Rep. Doyle say that will be boost for students and the state.
During the Assembly budget debate, Democrats didn’t bring up any amendments. Rep. Doyle says Republican leadership told the caucus they would reject the democrats proposed changes anyway. Rep. Doyle says instead, they will bring up the reforms in various pieces of legislation next session.
From jsonline.com: “Scott Walker signs bill providing $15 million in work force training grants” — Madison – The state will distribute $15 million in worker training grants under a bill Gov. Scott Walker signed into law on Wednesday.
The measure will also create a system to better and more quickly track jobs data in an attempt to guide workers to in-demand professions. The jobs database is scheduled to be in place by next year.
The measure has broad bipartisan support, passing the Senate unanimously and the Assembly 94-4 in recent weeks. Despite minority Democrats’ support for the bill, they said it fell short and lawmakers should do more to develop workers’ skills.
“We all agree we need to continue to do everything we can to ensure workers have the necessary skills for the jobs available today,” Walker said in a statement. “This bill will help address the skills gap by investing in worker training grants and developing a Labor Market Information System. Altogether, these investments will focus a concerted effort to connect workers with jobs.”
The jobs database and training grants are part of the Republican governor’s platform of improving the skills of the state’s aging labor force and boosting the state’s economy in an increasingly competitive global marketplace. The training plans draw on reports by Competitive Wisconsin and Tim Sullivan, the former Bucyrus International chief executive officer.
Democrats, however, have noted that Walker has proposed far less new money for training workers than the hundreds of millions of dollars that he and GOP lawmakers cut two years ago from the University of Wisconsin System and the Wisconsin Technical College System to help balance the state budget.
Walker made those cuts, as well as ones to local governments and school districts, just after approving a measure that all but eliminated collective bargaining for most public workers and required them to pay more for their pensions and health care. He has argued that those savings and the added flexibility offset the cuts, saying the bill he signed Wednesday amounts to new money.
The governor’s proposed budget would provide additional money for state universities and technical colleges, though the increase would be less than the amount he cut in 2011. Lawmakers will decide this summer whether to keep or alter Walker’s proposal on higher education spending.
The competitive grants available under the new law would go to technical colleges, local workforce boards and regional economic development organizations working in partnership with state businesses, which could provide matching funds.
February 11, 2013
From jsonline.com: “University, college funding would be tied to job-readiness efforts” — Madison – To respond to global competition and an aging workforce, Gov. Scott Walker wants to invest nearly $100 million to build a faster system to track jobs data, tie technical school and university funding to filling high-demand professions and require nearly 76,000 people to train for work to collect food stamps.
The sweeping proposals – some of the biggest in worker training in more than a decade – would expand the Medical College of Wisconsin to Green Bay and Wausau and draw in millions of dollars in added federal money toward the goal of equipping the workforce for needed jobs as welders, nurses, accountants, machine operators and rural doctors.
The measures encompass big parts of the Republican governor’s 2013-’15 budget being introduced on Feb. 20, as well as separate legislation to be introduced on Monday.
Many of the proposals will likely find bipartisan support in the Legislature, while others will likely be greeted with dissatisfaction from Democrats pushing for bigger investments from the governor to backfill the cuts he has made in the current budget to the state’s technical colleges and universities.
One potentially contentious plank – and one with big implications for Milwaukee – is Walker’s proposal to require able-bodied adults without dependent children to train or search for work to receive benefits under the state FoodShare program. Providing the training will cost the state $17 million a year and won’t save money directly on the federally funded food benefits.
But in an interview, Walker said he believes the recipients will gain confidence and move into the workforce and off other costly state benefits.
“I want to provide a hand up, not a permanent handout, and I think the idea here is it’s not enough to just say, ‘You should go find a job.’ We’re willing to put our money where our mouth is and say we’ll train you,” Walker said.
The scope of the proposed changes is ambitious, reaching from 4-year-old kindergarten through university study and into training in the workplace. The measure draws on reports by Competitive Wisconsin, former Bucyrus International executive Tim Sullivan and Walker’s Read to Lead Task Force.
More investments in education will likely come in the budget, but likely not be enough to placate Democrats. They’ve stewed about Walker’s higher-education cuts in the current budget, which included some $300 million over two years to the University of Wisconsin System alone.
“Governor Walker made the biggest cuts to education and worker training in our state’s history,” said budget committee member Sen. Jennifer Shilling (D-La Crosse). “It has widened our skills gap and resulted in waiting lists (at technical colleges) of up to three years in some high-demand professions.”
Walker made the UW cuts – as well as ones to local governments and school districts – just after approving a measure that all but eliminated collective bargaining for public workers and required them to pay more for their pensions and health care.
He argued Friday that those savings and the added flexibility offset the cuts, and that to him his proposed spending in the next budget amounts to new money.
The FoodShare proposal would not affect the elderly, disabled or those with minor children. It would limit able-bodied recipients’ benefits to three months over any three-year period unless they are working or doing at least 20 hours per week of job training or searches.
The state will attract federal matching funds for the training costs for a total of $33 million over two years.
The proposal will face skepticism from advocates such as Sherrie Tussler, executive director of Hunger Task Force in Milwaukee. Tussler remembers previous state requirements as creating more jobs for social workers than it did for FoodShare recipients, who she said were taught just basic skills.
“There’s this huge bureaucracy to get people to do the work and make sure they’ve done it. It ends up costing more to mandate the work than the good you get. . . . You’re trying to take away people’s food to get them to get a job,” she said.
Currently, the training element to the program is voluntary, and Tussler said she has struggled to get state funding for a proposal to pay FoodShare participants $10 an hour to work at a farm growing vegetables for the needy. That’s because of tight federal restrictions, she said.
The governor is also proposing linking current state funding to technical schools with their performance at placing their more than 78,000 students in the right jobs.
Starting in 2014, Walker wants 10% of the general state aid to technical colleges to be awarded based on job placement and how well the schools do at catering to fields that are in high demand.
That percentage would ramp up in future years, until all state funds would be allocated on a performance basis, starting in 2020.
The technical colleges would see a $5 million boost in general state aid, bringing it to $88.5 million a year. That’s a 5.9% boost in its current funding, but does not come close to replacing all the money Walker cut from technical colleges in 2011.
That year, funding for technical schools dropped by 30%, from $119.3 million to $83.5 million.
The $88.5 million Walker will propose for technical colleges accounts for just a sliver of overall funding for those schools, which also receive property taxes, tuition and federal aid.
For state universities, Walker is proposing awarding $20 million for programs that help the economy, develop a skilled workforce and make higher education more affordable.
He also plans to give $2 million to the UW System to start up its flexible degree program – about two-thirds of the $3 million the system had requested.
The program is meant to allow people already in the workforce to get degrees in programs such as nursing, information systems or medical imaging more quickly by getting credits for knowledge they already have, whether they learned it on a job site or through online courses.
Walker’s budget would also require the university and technical college systems to establish a core set of 30 college credits that can be transferred between all public institutions in the state.
Private colleges would have a chance to opt into that system.
In a provision that could rankle GOP lawmakers, Walker wants to allow the UW-Madison chancellor to determine the pay plan for employees without going through the Legislature.
Similarly, the UW Board of Regents would be able to set pay for other campuses without getting sign-off from lawmakers – flexibility that UW System President Kevin Reilly said was essential to closing a pay gap with salaries at other institutions.
“Over time, if we can’t give our people hope we’ll be able to close that 18 percentage point gap, people who are mobile and attractive to other universities will leave,” Reilly said. “The biggest threat to students of the future is that they will not be taught by the best and brightest.”
Walker’s budget would also seek to increase the number of doctors and dentists in Wisconsin, particularly in rural areas.
- Provide $7.4 million in bonding so the Medical College of Wisconsin could establish campuses in the Green Bay and Wausau areas. In addition, the college would receive $1.75 million over two years to add 12 more family medicine residents.
- Give $3 million over two years to the UW School of Medicine so it can expand training for doctors who will serve rural areas and inner cities.
- Provide $4 million for rural hospitals so they can receive national accreditation and take on medical residents, along with $1 million in grants to hospitals so they can take more doctors in training.
- Give $520,000 to the Marquette Dental School so it can expand.
- Provide $5 million to the Wisconsin Health Information Organization, which is meant to make health care costs more transparent and make people wiser health care consumers.
Education, other items
Walker’s budget would also expand testing in schools so by the 11th grade teachers can identify and better prepare students who are ready for college or a career when they graduate.
The testing would cost $11.5 million over two years and would be covered by the state. The proposal would also screen the reading readiness of students in 4-year-old kindergarten and first grade in the fall of 2013. The following year, screening would also be used for second-graders. The plan would cost $2.8 million over two years.
Starting in sixth grade, students could develop an academic and career plan, under Walker’s budget. The plan would be updated throughout a student’s school career so he or she can graduate from high school with a job plan. Schools would receive about $1.1 million starting in the fall of 2014.
The second set of Walker’s proposed workforce changes will be stand-alone legislation that will be introduced on Monday, said Assembly Speaker Robin Vos (R-Rochester). He said he hoped to pass the measure by the end of March.
That bill would cost $20 million over two years and would:
- Spend $15 million over two years in grants to organizations that train workers.
- The competitive grants would go to technical colleges, local workforce boards and regional economic development organizations working in partnership with state businesses, which could provide matching funds.
- Create a four-person state Office of Skills Development to coordinate the scattered worker-training systems of the state and adapt them to the needs of employers.
- Spend roughly $5 million to develop a system to better track the state’s labor market by some time in 2014.
If successful, it would more quickly deliver to students, guidance counselors and businesses data from the state’s unemployment system that currently takes six months to become public.
The system would link jobless workers to openings they are qualified to fill and provide students and guidance counselors with better information about career opportunities. If successful in getting the unemployed back to work even a week sooner, the system could save the state tens of millions of dollars.
Walker, who has struggled to meet his pledge to create 250,000 private-sector jobs in his first term, said the system wasn’t an attempt to gloss over the current figures, just deliver the same data more quickly.
February 1, 2013
From wkow.com: “Democrats say Gov. Walker is interested in their jobs ideas” — MADISON — Senate and Assembly Democrats are trying to get ahead of the game on job creation in an attempt to make themselves more relevant this legislative session.
“Representative Barca and I have had two meetings already with the Governor, and we’ve talked about some of our initiatives and some of the things that we want to see,” said Sen. Chris Larson (D-Milwaukee), the Senate Minority Leader.
One of those initiatives is a competitive grant training program.
That allows businesses or economic development agencies to partner with local technical colleges to develop projects that focus on increasing skills in high employment areas.
The best ideas get the grants.
“These are jobs that are advertised, if only they had the training. So we believe we need to focus on workforce training,” said Rep. Peter Barca (D-Kenosha), the Assembly Minority Leader.
Another proposal would allow out-of-state investors to receive refundable tax credits for supporting high-tech start-ups and entrepreneurs. Sen. Julie Lassa (D-Stevens Point) said expanding those credits beyond Wisconsin’s borders will only boost the economic growth they’ve already created.
“For $11 million in tax credits, those funds leveraged in Wisconsin a total financing of $152 million for our entrepreneurs and small businesses in our state,” said Sen. Lassa.
But Rep. Fred Clark (D-Sauk City) says existing small businesses also need financial help. That’s why he is proposing an up-front tax credit which would help a business owner secure a loan for expansion or equipment.
He said many current small business tax credits for things like that go unused.
“I worked with a business owner who actually could have benefited from a provision that we passed in 2009, giving a tax credit for purchase of harvesting equipment in forestry. What the owner said to me was, ‘what good is it if nobody will borrow me the money to operate the thing,'” said Rep. Clark.
The Governor’s office confirmed that they are looking at the Democratic proposals, and say they will discuss them further after the full budget is released on February 20th.