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DATE: |
May 18, 2005 |
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TO: |
Wisconsin Arts Leaders |
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FROM: |
George Tzougros, Wisconsin Arts Board |
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RE: |
Joint Committee on Finance 5-17-05 Executive Session |
EXECUTIVE SUMMARY
Yesterday, the Legislature's Joint Committee on Finance took the following action related to the Wisconsin Arts Board’s 2005-2007 Biennial Budget:
- Unanimously approved the Governor's recommendation to provide $25,200 Program Revenue annually to pay for contracts with, or grants to, American Indian groups or individuals, funded from tribal
gaming revenues.
- Approved a free-standing motion (#531), which was moved to require that the Arts Board lapse (return) a total of 5% of the biennial funding amount from each of their GPR appropriations in the
2005-07 biennium. The GPR appropriations are: General Program Operations, State Aids for the Arts, the Arts Challenge Initiative, and the Wisconsin Regranting Program.
- Approved the Arts Board's Summary Items—Standard Budget Adjustments and Position Reduction—by unanimous consent.
BACKGROUND
The meeting began with a discussion of a recent memo written by Bob Lange, Legislative Reference Bureau Director, which revised the fiscal estimates upon which the Governor based his budget. The
Committee was told that the state would have more money, not less.
The Committee received this information with mixed emotions. They were glad that the State’s economy is doing well, but they knew that these additional dollars had already been used to "plug holes
in the Governor's budget." Reference was continually made to the projected $1.6 billion shortfall in this budget.
The Committee then struggled with proposals for the Departments of Veterans Affairs and Health and Family Services. The rhetoric was about funding for veterans who have put their lives on the line
for this country and services for autistic children. The legislators kept speaking of priorities and making cuts in other programs to fund these priorities.
Then came the discussion of the Arts Board's budget.
American Indian Arts Development and Tribal Gaming Funding
(Click here to view paper #155)
The Legislative Fiscal Bureau had prepared one paper on the Arts Board. It concerned the Governor's proposal to provide $25,200 in tribal gaming revenue (Program Revenue) for support of American
Indian arts. The paper suggests that the Committee had two alternatives: either adopt or reject the Governor's recommendation. The motion was made to adopt the Governor's recommendation. It passed
unanimously.
Analysis: This program has been viewed as an acceptable use of tribal gaming funding by legislators and tribal leaders alike since it was first included in Governor Thompson's 97-99
biennial budget. It is one of the state’s only uses of tribal gaming funding that directly benefits the tribes and bands.
Free-Standing Motion to Reduce Arts Board GPR Funding by 5%
Free-standing motion #531 was then offered by Assembly Co-Chairperson Dean Kaufert (R-Neenah) and seconded by Senate Co-Chairperson Scott Fitzgerald (R-Juneau). It moved to require that the Arts
Board lapse a total of 5% of the biennial funding amount from each of their GPR appropriations in the 2005-07 biennium. The GPR appropriations are: General Program Operations, State Aids for the
Arts, the Arts Challenge Initiative, and the Wisconsin Regranting Program.
Co-Chairperson Kaufert spoke about the importance of the arts, the good work of the Arts Board, and the importance to Wisconsin's communities of the work of the Arts Board, Humanities Council, and
Historical Society. However, it was felt that the Arts Board could not go untouched in this budget when the legislature was asking everyone else (women, children, the elderly, the handicapped
and disabled, autistic children, other family services) to do their part and share in the pain. Co-Chairperson Kaufert said that the proposed reduction could have been worse, but that this was an
appropriate level.
A discussion ensued, with Rep. Mark Pocan (D-Madison) comparing the $242,000 cut to the Arts Board to an action previously taken by Committee to set aside $200,000 for a consultant to study two
veterans homes. Co-Chairperson Fitzgerald noted that the funds for the consultant came out of funds paid to the State by veterans.
Rep. Jeff Stone (R-Greendale) commended the Co-Chairpersons’ efforts to reach a compromise, but indicated he would have to vote against the motion. He said that he viewed things differently; that
the arts play a role in the State's future economic development and tourism, and that the State should keep up its commitment to the arts through the Wisconsin Arts Board.
State Senator Joe Leibham (R-Sheboygan) noted the meeting’s previous conversations, especially the health care related ones, and said that funding decisions are a matter of priorities.
The role was called and the motion carried 11 - 5. The following committee members voted in the affirmative: Representatives Kaufert, Ward, Jensen, Rhoades, Meyer and Senators Fitzgerald, Lazich,
Darling, Cowles, Leibham, and Olsen. The following members voted in the negative: Representatives Stone, Pocan, and Colon and Senators Decker and Taylor.
Analysis: Information provided just prior to the Joint Committee on Finance's discussion of the Arts Board indicated that the free-standing motion that would be offered was a great
compromise given the discussions prior to the meeting. The day began with the Arts Board completely eliminated. There was also talk of the agency incurring a 50% reduction. In addition, a reference
was made to some legislators wanting to use the Artistic Endowment Foundation in some way.
This motion was written as a lapse; that the dollars would return as the Arts Board builds its 07-09 budget. However, a Committee staff person indicated that the funds would be cut from our budget
and would therefore permanently reduce our base budget by 5%. We will be work with the DOA budget people to clarify this issue.
The discussion of "priorities" is a slippery slope for the Arts Board because our work is not viewed as a priority by some, whose focus is to spend as little as possible and return the rest to the
taxpayers or by others who view other basic needs as more of a priority.
The work ahead continues to be to make everyone aware of the dividends paid by an investment in the arts and the work of the Wisconsin Arts Board. These investments help to build authentic vibrant
communities that attract the talented workforce necessary for the Creative Economy. This, in turn, incubates, retains, or attracts businesses. All of which grows the tax base and provides the state
with the funds it needs to operate and fund the so-called priorities.
Arts Board Summary Items
These items were approved by unanimous consent. They included basic budget adjustments and the elimination of a federal position. This position only existed on paper and was harvested by DOA in
order to meet the Governor’s targets in State workforce reduction.
The Endowment
A discussion took place during this meeting that was instructive as the efforts begin to establish the Wisconsin Artistic Endowment Foundation. The discussion concerned the "Injured Patients and
Families Compensation Fund,” which falls under the Department of Health and Family Services. This fund provides excess medical malpractice coverage for health care providers. It is funded by the
providers and through investment income. The Governor has recommended a transfer of some of these funds.
During the discussion, Rep. Kitty Rhoades (R-Hudson) said that she tells her constituents that, "There is no such thing as a segregated fund except that which you keep in your shoe." She went on
to say that, “The state must prove we can leave these dollars alone by creating a ‘lock box,’” which is a fund a governor and legislature can't raid to fix other budget problems.
During the last biennium the legislature created and the governor signed a bill to protect this fund from being raided. It is now the law. And they are doing it anyway!
Analysis: Caution: what guarantee is there that a governor or legislature will not raid the Wisconsin Artistic Endowment Foundation to make the state budget whole? The answer is that there
is no guarantee.
ACTION
The Joint Committee on Finance’s actions regarding the Arts Board’s 2005-2007 Biennial Budget will be discussed by the Wisconsin Arts Board and its budget committee and appropriate scenario plans
will be created.
NEXT STEPS
Once the Joint Committee on Finance completes its deliberations on the entire budget, their version will be forwarded to the Assembly and Senate for passage. A Conference Committee will be formed
to iron out any differences between the resulting Assembly and Senate versions of the budget bill. The final bill proceeds to the Governor once both houses have agreed.
All of this work should be completed and the budget signed by the Governor by July 1. If past biennia are any indication, this work will actually be completed by the fall of 2005.
FOR YOUR INFORMATION
List of members of the Joint Committee on Finance
Senator Scott Fitzgerald, Co-Chair (R-Juneau)
sen.fitzgerald@legis.state.wi.us
Senator Mary Lazich (R-New Berlin)
sen.lazich@legis.state.wi.us
Senator Alberta Darling (R-River Hills)
sen.darling@legis.state.wi.us
Senator Robert Cowles (R-Green Bay)
sen.cowls@legis.state.wi.us
Senator Joe Leibham (R-Sheboygan)
sen.leibham@legis.state.wi.us
Senator Luther Olsen (R-Ripon)
sen.olsen@legis.state.wi.us
Senator Russ Decker (D-Schofield)
sen.decker@legis.state.wi.us
Senator Lena Taylor (D-Milwaukee)
sen.taylor@legis.state.wi.us
Representative Dean Kaufert, Co-Chairperson (R-Neenah)
rep.kaufer@legis.state.wi.us
Representative David Ward (R-Fort Atkinson)
rep.ward@legis.state.wi.us
Representative Scott Jensen (R-Waukesha)
rep.jensen@legis.state.wi.us
Representative Jeff Stone (R-Greendale)
rep.stone@legis.state.wi.us
Representative Kitty Rhoades (R-Hudson)
rep.rhoades@legis.state.wi.us
Representative Dan Meyer (R-Eagle River)
rep.meyer@legis.state.wi.us
Representative Mark Pocan (D-Madison)
rep.pocan@legis.state.wi.us
Representative Pedro Colon (D-Milwaukee)
rep.colon@legis.state.wi.us
Fax: 608/267-0380