Downing, Karley - GOV

From: Sent: To: Subject: Attachments: Schrimpf, Chris - GOV u~>uov. February 01, 2011 8:49 AM

DraftStateoftheStateTuesday.doc

I changed the trouble line to "Throughout Wisconsin's history we have faced great challenges; each time it looked like we might falter and lose our momentum, we turned back to our Constitution's call for frugality and moderation and marched forward."

The draft is below

Speaker Fitzgerald, Speaker Pro Tern Kramer, President Ellis, Majority Leader Fitzgerald, Minority Leader Miller, Minority Leader Barca, Supreme Court Justices, Constitutional Officers, tribal leaders, members of the Cabinet, distinguished guests, members of the Legislature, and most importantly, fellow citizens of Wisconsin, it is an honor to be with you tonight to report on the state of our state. Yesterday, Trooper Gary Markowski was struck by a vehicle in the line of duty and seriously injured. I spoke to his wife yesterday, and am grateful to report that tonight he is resting in the hospital on his way to recovery. Let us pause for a moment to offer our thoughts and prayers to the Markowski family, and all those who serve to keep us safe ... In the gallery, we also have the First Lady of the Great State of Wisconsin, my wife, Tonette Walker and our sons Matt and Alex, my parents Llew and Pat Walker and my brother and sister-in-law David and Maria Walker. Next to them is General Dunbar and several members of the Wisconsin National Guard. General, we cannot thank you and the brave men and women from Wisconsin who wear our nation's uniform enough. To you, your families and to all of our other veterans, we say a hearty thank you.
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Every year the Governor of Wisconsin comes before this body to report on the state of the state. This year the state of the state is - well- pumped up about out Packers. I've asked a representative of the Packers to be with us live from Arlington tonight, so that we can wish them well. (Satellite connection with Packers President Mark Murphy)

We're honored that Packers President Mark Murphy could be with us tonight from Texas. Mark, thank you for taking the time to join us, I know you're busy preparing for the big game against the Steelers, so we won't keep you long. Congratulations on making it to the Super Bowl, what a tremendous victory you had on the road two weeks ago.
[Mr. Murphy thanks everyone for their support, thanks for including us in your state of the state, we're excited about Sunday]

Mark, on behalf of the state of Wisconsin, I want you to know that the entire state is rooting for you and we wish you the best of luck. Win or lose we're proud of you. [Satellite disconnects]

Here in Wisconsin, we don't need a seating chart to bring Republicans and Democrats together- all we need are the Green Bay Packers. In fact, we are sitting under evidence of that right now. Thanks to the help of Senators Risser and Hansen, we worked together to illuminate the dome of this Capitol tonight with green and gold lights.
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Over the course of this season, our pride for the Green Bay Packers has brought this state together. I believe we need that same unity to get Wisconsin working again.

Tonight, I will layout a clear picture of the state of our state. We will be realistic about the challenges we face while optimistic about our solutions. First, let me be clear: we have an economic and fiscal crisis in this state that demands our immediate attention. The solutions we offer must be designed to address both job creation and our budget problems. Wisconsin's once strong economy is in need of repair. Too many of our people are hurting and too many of our employers are struggling. The unemployment rate in December dropped to 7.5% but that is still3 points worse than it was just three years ago at this time. We must do better.

As I travel the state, I hear too many stories of families struggling to put food on the table; I see too many young people who can't find a job having to move in with their parents; and I learn of too many small businesses who are forced to layoff workers because oftheeconomy. Coach Vince Lombardi once said, "Success demands singleness of purpose." We are defining success for this administration by our ability to shape an environment where 250,000 jobs are created. Every action of our administration should be looked at through the lens of job creation. That is why - moments after taking the oath of office as your Governor - I called a special session of the Legislature to focus on jobs. Already, we are sending a clear message that Wisconsin is open for business!

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That singleness of purpose is why we hit the ground running on our very first day and why by our second day we had already introduced legislation to improve Wisconsin's economic environment. All told, we introduced 8 pieces of legislation to instill in our state an environment that encourages job creation, and to send the message to employers that now is the time to start hiring. We challenged the Legislature to move swiftly and decisively on our Jobs Plan. You accepted that challenge- in many cases with bi-partisan support. On behalf of the people of Wisconsin, I say thank you.

Creating jobs shouldn't be a partisan issue. These are not Republican or Democrat jobs, these are Wisconsinjobs. In less than 30 days, I have already signed four pieces of legislation into law that will help the private sector create jobs. And on my desk is another bill giving tax relief to small businesses that I intend to sign on Friday. The first act I signed as governor eliminated the taxes on health savings accounts, making health care more affordable for small business owners, blue-collar workers and family farmers. I want to thank Representatives Kaufert, Ziegelbauer and Stone and Senators Darling, Olsen and Vukmir for their leadership on HSAs. This change was a long time coming for Wisconsin and brings us into line with the rest of the nation.

Our second act reduced frivolous lawsuits in Wisconsin. The litigation environment in a state is one of the key drivers for business and unfortunately we were once known as "Alabama North" because of our poor lawsuit climate. Now, we've turned the page on lawsuit reform and offer one more sign that Wisconsin is open for business.
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Thanks to Senator Zipperer and Representative Jim Ott for their leadership on this important issue.

Yesterday, I signed an expansion of our relocation and economic development tax credits. These measures will help our state attract and retain businesses and jobs. More thanks to the Legislature for your swift action - and particular appreciation to Representatives Klenke, Williams, Knilans, and Jim Ott and Senators Moulton and Wanggaard for your leadership on these bi-partisan measures. Although we have accomplished a lot in a short time, we should not celebrate too much the bills that have already passed. We are under no illusion that simply calling a Special Session and passing legislation means that all is better in Wisconsin. The fact that we needed to call a special session at all is a sobering reminder of all the work we have left to do.

We still must change the regulatory environment in Wisconsin. From talking with families and businesses across this great state, I sense a spirit that we can grow again when our people are freed from government mandates, rules, regulations and taxes; freed to create jobs, to grow their businesses, to live their lives. That is why I introduced, and you are working on, regulatory reform legislation. The smallest change in a rule can have unintended consequences that drive up costs for businesses and stand in the way of job growth. Our regulatory reform bill will help get government's hands off our job creators and make it easier for employers to put people to work in Wisconsin.

Two weeks ago, the Assembly Speaker and Senate Majority Leader joined me in writing a column for the Chicago Tribune. We made the case that employers in Illinois should escape to Wisconsin, not only because of Illinois' massive tax hike, but because of the two opposite directions our states are heading.
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You see, businesses make decisions based on trends. Before locating a facility or adding jobs somewhere, they look to see what the future there looks like. That's why the budget and budget repair bills we will introduce in the coming weeks will be even more important than our Special Session legislation.
It is in those budgets where rhetoric meets reality, where we will show that we will make the tough decisions now to lay the foundation for future economic growth.

During the present downturn, Wisconsin's proud tradition of responsible budgeting gave way to repeated raids on segregated funds, excessive borrowing for operations and an addiction to one-time federal dollars. These are no longer options, and their use has only delayed and worsened the difficult decisions we must now make. These factors, along with the decline in the global economy that started several years ago, have combined to create a 3 billion dollar deficit for the state budget that starts on July 1. And they are contributing factors to why the state government faces more than a 200 million dollar shortfall for the rest of this fiscal year.

Like Wisconsin, states across the nation are facing major fiscal challenges. More than forty states face immediate budget shortfalls totaling 26 billion dollars, with an even larger shotifall of 82 billion looming next year. Nationwide, states face a trillion dollar funding shortfall in public-sector retirement benefits. 814 billion dollars of one-time federal stimulus funding to the states is going away. States face a total mandated growth in Medicaid of 51 billion dollars. And state and local governments have a collective 2.4 trillion dollars in debts. As the Governor ofNew York said, "there's no Democratic or Republican philosophical dispute here. The numbers have to balance, and the numbers now don't balance .. .it's painful but it is also undeniable." He is right.
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Wisconsin is facing those same undeniable challenges that states across the nation are facing; both in this year's budget and in the next two-year budget. Throughout Wisconsin's history we have faced great challenges; each time it looked like we might falter and lose our momentum, we turned back to our Constitution's call for frugality and moderation and marched forward.
It is time to return to our founding principles again. We can no longer afford to tum a blind eye to the tough decisions ahead.

Without swift corrective action, entitlement programs and legacy costs will eat up more and more of the operating budget. Failure to act only makes the problems worse in the future. Last week, our Secretary at the Department of Health Services, Dennis Smith, testified before Congress on some of the challenges we are facing in Medicaid. In that program alone, we face a more than 150 million dollar shortfall over the next 6 months and, over the next biennium, the shortfall exceeds 1.8 billion dollars. These are challenges that cannot be ignored.

In addition to the deficits facing these critically important areas of state government, bill collectors are waiting on the doorsteps of our capitol. Due to a past reliance on short term fixes, one-time money, delayed payments, and fund raids, we owe the State of Minnesota nearly 60 million dollars and we owe the Patient's Compensation fund for a past raid of $200 million. The decisions we face are not easy and the solutions we must approve will require true sacrifice. But, the benefit of finally making these tough decisions and being honest wHh the citizens of this state will help us to balance the budget in a way that creates a permanent, structurally sound state budget.

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If we are going to move our state forward, we have to be honest and agree that we no longer can afford to rely on sholi-term fixes that only delay the pain, compound the problems, and lead to ongoing financial unce1iainty. States, like Wisconsin, are left with two choices: one is to raise taxes, continue to hinder our people with burdensome regulations, and kick the difficult choices down the road for our children and grandchildren; the other is to do the heavy lifting now and transform the way government works in Wisconsin. Some states will choose the easy way out.

As I mentioned, our neighbors to the south chose to deal with their budget crisis with major income and business tax increases. At the same time, they pushed the most challenging decisions off for another day- and, probably, another tax mcrease. We quickly saw the result of their actions. States, including our own, which are committed to holding the line on spending, began circling Illinois as soon as the tax increase passed. Their lack of action will ultimately lead to fewer jobs and higher taxes. But there is another way.

We can use our budget challenge as an oppoliunity; an oppoliunity to reduce government and to increase flexibility. To ensure that all sectors of our economy contribute equally, so that the entire state benefits. We are Wisconsin, we can lead the way. In the coming weeks, I will introduce a budget repair bill focusing on the most immediate fiscal challenges our state must address to avoid massive layoffs or reductions in critical services. Our budget repair bill will lay the foundation for a structurally sound budget that doesn't rely on sholi-term fixes and other stop-gap measures that only delay the pain and create perilous unceliainty.
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This is the right moment in time, our moment in time, to refocus government to better serve the taxpayers of this state. To do this, we must provide flexibility to our leaders at all levels.

One area we will have to look at is public employee benefits. Now let me be.clear: we have good and decent people who work for government at the state and local level. As Coach Lombardi said, "the measure of who we are is what we do with what we have." For years, our employees have been asked to do more with less. However, the difficult reality is that healthcare costs and pension costs have risen dramatically and that has created a benefit system that is simply unsustainable. Government benefits have grown while so many others in the private sector have seen their benefits adjusted in order to protect jobs.

Currently, most state employees pay next to nothing from their salaries toward their pension, while the state's taxpayers pay more than $190 million each year on state employees' behalf. Similarly, most state workers only pay about 6% of their premium costs for their health care plan. Asking public employees to make a pension payment of just over 5% (which is about the national average) and a premium payment of 12% (which is about halfof the national average) would save the state more than $30 million over three months. Most workers outside of government would love a deal like that- particularly if it means savingjobs.

Private sector workers have already responded to the tough economic times. When Mercury Marine was on the verge of moving nearly 2,000jobs to Oklahoma, the company said that "comprehensive changes to wages, benefits and operational
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flexibility [were] necessary for Mercury to effectively compete in a smaller and fundamentally changed marketplace." After a difficult struggle, the workers agreed to major concessions.
It wasn't easy for the workers, but the jobs stayed in Wisconsin. In fact the company said it would move some new jobs from Oklahoma to Wisconsin.

I took special note of the words of one of the workers who had lost his job during the economic downturn and who had the opportunity to gain it back. He said, "They have treated me and my family more than fairly over the years, and now they are in difficult times. I understand it's time to give back so that we can keep all of the jobs here in town." That worker was one of350 new hires by Mercury over the last two years. While state government can't pick up and move, I hope that our state employees feel as if they've been treated fairly over the years, but -like all of us- they should recognize that we are in difficult economic and fiscal times.

Our upcoming budget is built on the premise that we must right size our government. That means reforming public employee benefits- as well as reforming entitlement programs and reforming the state's relationship with local governments. Most importantly, our budget will focus on items that will help create an environment where the employers of this state can put 250,000 people to work. The state's facing a fundamentally changed marketplace to which we have to respond. Like Wisconsin companies, our competition isn't just next door in Michigan, Illinois, or Minnesota but also across the world in China, Germany, and India. As a result, we must transform our government and business environment to compete globally.
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With global competition also comes global opportunity. For instance, 96 percent of the world's population live, purchase and consume products outside of the United States. Wisconsin businesses who want to grow, expand and create new, goodpaying jobs need to be able to get their products out to the worid in a cost-effective manner. That means a strong transportation network in Wisconsin; re-prioritizing our transportation investments. I challenged the Wisconsin Department of Transportation to look at new ways to reconstruct our state's busiest interchangethe Zoo Interchange- which is used by 350,000 people a day. Our transportation leaders met the challenge and developed a plan that will start the project ahead of schedule and save the taxpayer's 600 million dollars.

And while we've done big things and we'll continue to do big things to help business grow jobs in Wisconsin, the quiet things matter too. In today's global economy small changes, even on the margins, matter. We'll continue to pursue the big and small changes necessary to get Wisconsin working again. In my inaugural address, I quoted Article I, Section 22 of the state constitution which reads, "The blessings of a free government can only be maintained by a firm adherence to justice, moderation, temperance, frugality and virtue, and by frequent recurrence to fundamental principles." Our new budget and government will affirm these values and fundamental principles. As I said when I was sworn in, "it is through frugality and moderation in government that we will see freedom and prosperity for our people."

That's really what this administration is all about: frugality and jobs. It is only through a more frugal government, that our economy can grow faster than others across the nation and around the globe. I want Wisconsin to lead the economic recovery.
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That's why our special session Jobs Plan is important. We want to lower the cost of doing business in this state - through lower taxation, regulation and litigation costs and more relief from health care costs - so that more employers are able to create jobs for our people. And it's why our budget repair bill, and then our budget are even more important. Each will demonstrate to the nation that Wisconsin is ready to meet the challenges of today and capitalize on the opportunities of tomorrow.

By making the tough choices we will send a message loud and clear thoughout our state, in Illinois, across the rest of the nation and around the world: Wisconsin is open for business. We are ready to grow. We will tackle the big issues. We will lead the way. Recently, a national news organization did a story about how fast we are getting to work in Wisconsin. They asked why. The reason is simple: I spent the past two years in a job interview with the people of Wisconsin telling you what I would do as your next CEO to get this state working agam. As you all know, I was pretty specific on our plans and even on the day I'd start implementing those plans, so I saw no reason to wait a year, or six months or even a month to get to work. Now is the time to take action.

You hired me to put Wisconsin back to work. I love this state and I know that you do too. I know that we can transform our state and- in turn- become a national leader in fiscal and economic reform.

It won't be easy, but the past 30 days have shown that we are ready to turn this state around.

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Throughout the football season, the Packers were able to unite the people of our great state. Now, we need to use that same unity to show that we are ready to get Wisconsin working again. Acting together, I know we can ... because I believe in Wisconsin. Thank you. God bless you, God bless our Armed Forces and may God bless Wisconsin.
Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

From:--

Sent: 'FlieScraY,"'f'e!JrUcirY''1h, 2011 8:44AM

To: Schrimpf, Chris - GOV Subject: Re:

Can u email me the latest so I can nias it on the plane? Thx.

From: Schrimpf, Chris - GOV

Sent:
To:

February 01, 2011 07:48AM

Updated draft.

Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

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Downing, Karley - GOV

From:
Werwie, Cullen J - GOV Tuesday, February 01, 2011 Grinder, Jennifer- GOV Media call for tomorrow

Sent:
To:

Schrimpf, Chris - GOV

Subject:

7:55-B:lOam Wednesday February 2 Back-u Melanie Trottman I reporter for the Wall Street Journal wants to talk to the Governor about public sector 'unions. She wants to know what role public sector unions should play in state government. Her questions will be along the line of: Do you think public sector unions should have the ability to collectively bargain? What role should unions play in our society?

Cullen Werwie

Press Secretary Office of Governor Scott Walker Press Office: {608} 267-7303 Email:

www. walker. wi.qov

From: Trottman, Melanie [mailto Sent: Monday, January 31, 2011 To: Werwie, Cullen J - GOV Subject: RE: Info on Public Sector Unions
Yes.

From: Werwie, Cullen J - GOV [mailto:Cullen.Werwie@wisconsin.gov] Sent: Monday, January 31, 2011 2:44 PM To: Trottman, Melanie Subject: RE: Info on Public Sector Unions
Hey MelanieCan you do a phone call Wednesday from 7:55-8:10am our time, so probably 8:55-9:10am your time?

Cullen Werwie

Press Secretary Office of Governor Scott Walker Press Office: {608} 267-7303 Email: Cullen. Werwie@WI.Gov

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www. walker. wi. qov

From: Trottman, Melanie Sent: Friday, January 28, 2011 To: Werwie, Cullen J - GOV Subject: RE: Info on Public Sector Unions Got it. Thank You. l'lllook over all this and look forward to hearing from you about when the governor is available next week. Best, Melanie

From: Werwie, Cullen J - GOV [mailto:Cullen.Werwie@wisconsin.gov] Sent: Friday, January 28, 2011 5:36 PM To: Trottman, Melanie Subject: Info on Public Sector Unions MelaniePer our phone conversation here's the info we discussed. Governor-elect Walker was able to convince a lame-duck, complete democrat controlled Legislature to reject union contracts. It started by Governor-elect Walker sending a letter to. legislative leadership (attached). Then the unions approved the contracts. http://www.weau.com/news/headlines/Wis state union approves contract 111779449.html?ref=449 Lame-duck legislature calls itself into extraordinary session to take up contracts http://www.jsonline.com/news/statepolitics/111808334.html Democrats bring down a republican-turned-independent state rep who was in jail for his 3' drunk driving (along with one marijuana possession charge as well) to cast the deciding vote for passage in the State Assembly. State Senate Democrat majority leader votes no on the contracts, arguing they should have been passed prior to the election. AFSCME head calls the democrat leader "a whore." http ://host.mad ison.com /wsj/news/loca 1/govt-and-poI itics/article e836d c7 6-0862 -11e0-a4 76-001cc4c03286. htm I In addition to this, along the way major state newspapers editorialized in favor of Walker's position on public sector benefit reform, in part because of information we disseminated: http://www.jsonline.com/news/opinion/111561299.html http://host.madison.com/wsj/news/opinion/editorial/article c3ff9072-03f4-11e0-a66a-001cc4c03286.html http://www.sheboyganpress.com/article/20101214/SHE06/12140352/Editoriai-Give-Walker-a-shot-at-unionconcessions http:/fwww.thenorthwestern.com/article/20101130/0SH0602/11300363/Editoriai-Walker-deserves-maximumflexibility-to-balance-budget Thanks, Cullen Wen,yie

Press Secretary Office of Governor Scott Walker Press Office: {608} 267-7303 Email: Cullen. Werwie@ WI. Gov

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www. walker. wi.qov

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Mohr, Mark - GOV

From: Sent: To: Subject:
Schrimpf, Chris - GOV Friday, January 28, 2011 3:47 PM Werwie, Cullen J - GOV FW: From Governor Walker

I don't understand how this went full circle to me. I originally sent this to dorothy

Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

From: Volz, David J - COMMERCE

Sent: Friday, January 28, 2011 3:38PM

To: Schrimpf, Chris - GOV Cc: Moore, Dorothy J - GOV; Fadness, Joseph F- GOV; Delaney, Molly A - COMMERCE

Subject: FW: From Governor Walker

Dorothy, we've handed the details of this project to Chris; Chris, please keep Molly Delaney or me in the loop so we may attempt to have Sec. Jadin available for any event.

From: LADCO- James Hill/ Jennifer Kuderer [mailto:ladco@centurvtel.netl

Sent: Friday, January 28, 2011 9:30 AM

To: Moore, Dorothy J - GOV; Volz, David J - COMMERCE Cc: 'Greg Inda' Subject: RE: From Governor Walker
Good morning Dorothy & David, We wanted to follow-up with you regarding Governor Walker and/or Secretary Jadin's visit to City Brewing in La Crosse to announce the Department of Commerce Tax Credit Award. If a specific date and time are beginning to take shape for this event, please let us know as soon as you can so that we can make sure to make this an excellent visit! We look forward to hosting Governor Walker and/or Secretary Jadin in La Crosse soon! Thank you,

James P. Hill, Executive Director Jennifer A. Kuderer, Associate Director La Crosse Area Development Corporation 712 Main Street, La Crosse, WI 54601 P: 608-784-5488 F: 608-784-5408 ladco@centurvtel.net www.ladcoweb.org

From: Moore, Dorothy J- GOV [mailto:Dorothy.Moore@wisconsin.govl

Sent: Tuesday, January 25, 2011 3:06 PM

To:
'ladco@centurytel.net'
1

Cc: Volz, David J - COMMERCE Subject: From Governor Walker Mr. lnda: Thank you for taking my call today. I am ccing Dave Volz (608.266.8976), Executive Assistant to Commerce Secretary Paul Jadin. If you should have any questions or concerns regarding your new project, please feel free to call him or I and we will be happy to assist. Have a good evening. Dorothy

Dorothy J. Moore Executive Assistant to Governor 115 East State Capitol

WI 53702

Downing, Karley - GOV

From: Bai, M"tth,pw Thursday, January 27, 2011 7:24AM Schrimpf, Chris - GOV Re: Walker

Sent:
To:

Subject:

yup, thanks. On Jan 27, 2011, at 7:55AM, Schrimpf, Chris- GOV wrote:

Is this the best number?

From: Bai, Matthew [mi3iltJ<

Sent: Wednesday, January

To: Schrimpf, Chris - GOV Subject: Re: Walker

thanks, big help. On Jan 26, 2011, at 5:38PM, Schrimpf, Chris- GOV wrote:

Matt- Although your story is about Christie and public sector unions, I wanted to give you a quick overview of the major things that have been happening here, so you know when you speak to the Gov in the morning. The four stories are a pretty good outline. He also greeted the President when he came to Wisconsin today. The third story down outlines Gov Walker's actions with the unions here.

Wisconsin's New GOP Gov., Lawmakers In Hyperdrive

by The Associated Press MADISON, Wis. January 20,2011, 03:43am ET On Wisconsin's highways, work crews are still changing the road signs that feature his predecessor's name. But in the state Capitol, Scott Walker is already breaking the speed limit. In the last few days, the new Republican governor has been rannning through the state Legislature an agenda that changes the state's tax structure, provides new legal protections for businesses and reorganizes a major state agency. In rapid-fire fashion, complicated issues that normally occupy months of debate are going from bill to hearing to law. "Everything's coming out in a breakneck pace," said Robert Kraig, a lobbyist since 1999. "I've never seen anything like it." Walker is among the new governors who assumed power this month after the Republican midterm election sweep last fall. But his legislative blitz is unlike the scene in other state capitols, where the gears of government are just beginning to tum. In Michigan, where new Republican governor Rick Snyder has taken charge, lawmakers have just started introducing bills. Walker's march reflects his approach to the job- brash and unconcerned about stepping on toes as he puts in place a pro-business platform he says will create 250,000 jobs in Wisconsin and attract new business. He also
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benefits from the fact that Republicans also won control of both houses of the legislature, and Democrats are still reeling. "I didn't want to waste any time," Walker said in a Wednesday interview. "This is not the only thing we're going to do on the economy. This is just the first big wave, in terms of symbolism of the speed of our action, combined with substance." Democrats, relegated to the minority, say Walker's ability to race through mf\ior legislation doesn't mean it's a good idea. "The problem with moving too fast too soon is that you have unintended consequences," said state Sen. Fred Risser, a Democrat from Madison who is his 55th year in the Legislature and is the longest-serving state lawmaker in the country. "I would predict that we'll be back later this spring correcting some of the mistakes that are obviously going to be enacted." The Senate passed a sweeping lawsuit reform bill Tuesday that makes it more difficult for plaintiffs to sue companies and limits damage awards. The Assembly is expected to give its approval Thursday. Also Thursday, both chambers are expected to vote to eliminate state income taxes on contributions to Health Savings Accounts, a long-stalled Republican health proposal. Other measures teed up for next week would cut taxes on businesses that relocate to Wisconsin and provide a tax deduction for every new job created. Walker also has reached agreement on a plan for cutting small business taxes and is working on reorganizing the Commerce Department to better attract businesses. As the bills march by, supporters, opponents and everyone else are scrambling to keep up. Lawmakers who only went into session on Jan. 3 are presiding over hearings while their offices are still full of unpacked boxes. They receive briefings on bills only hours before they vote, not days or weeks in advance. There is little time for feedback from constituents. "The public couldn't possibly know about all of these changes," said Rep. Peter Barca, the top-ranking Democrat in the Assembly. Interest groups and advocates barely have time for their press conferences. Kraig, a lobbyist for Citizen Action of Wisconsin, threw together three news conferences in eight days to comment on bills under consideration. Typically, he holds one every few months. "Although I don't agree with the policy, it is impressive how much they're getting done," he said. Compare this pace to 2007 when Wisconsin was the last state to pass its budget- nearly four months overdue. When Democrats held power, enact priorities like a statewide smoking ban took several years. Walker defends the rapid pace, saying he was talking about his ideas during his campaign so they're well known by now. GOP Sen. Mark Ellis, who is in his 41st year in the Legislature, says the reason for Republicans to rush to judgment is obvious: Because they can. "Now that we have the majority, what do they expect us to do?" he said.

Governor Scott Walker uses Illinois tax increase to bolster Wisconsin

BY SCOTT BAUER ASSOCIATED PRESS JANUARY 13,2011 MADISON- From unpleasant acronyms to describe Illinois residents, to the deep hatred of the Chicago Bears, people in Wisconsin openly express disdain for their neighbors to the south.
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Gov. Scott Walker, taking advantage of a golden political opp01tunity after Illinois lawmakers passed dramatic tax increases, piled on Wednesday by welcoming any Illinois businesses to move north. But absent from Walker's sales pitch was the fact that Wisconsin's top income tax rates remain higher than those in Illinois, even under the increase. Even so, Walker and fellow Wisconsin Republicans are reveling in drawing a comparison between Illinois, which has a Democratic governor, and his agenda to cut taxes. Walker said he planned to visit Chicago to make his pitch and unveil a marketing campaign targeting Illinois next week. He made the rounds of Chicago television and radio stations on Wednesday, by calling in or through satellite video, and is working to spread the word in Wisconsin. He even dug up a vintage Wisconsin bumper sticker with its old slogan "Escape to Wisconsin." Holding it up at a news conference, Walker said it's being repurposed to target Illinois businesses. Wisconsin lawmakers were quick to jump in. "For years, Illinois families have been spending their weekends and vacations in Wisconsin," said Senate Majority Leader Scott Fitzgerald, R-Juneau. "Now it looks like Illinois is trying to squeeze their jobs out and across the border as well." Walker said that even though Wisconsin's top personal income tax rate is still higher than in Illinois, what's important is the contrast in message. While Illinois is raising taxes, Walker is pushing for tax cuts and other changes to make the state more business friendly. "It just makes Wisconsin look more attractive relative to our neighbor to the south," said James Buchen, a vice president at Wisconsin Manufacturers and Commerce, the state's largest business group. Walker has already called for eliminating taxes for companies that move to Wisconsin from Illinois or anyplace else. He also wants to cut taxes on small businesses already in the state. He even promised to lower the state's personal and corporate income taxes in his first term, but not in his first budget, which will come out next month. Wisconsin has a graduated income tax rate that goes from 4.6 percent to 7.5 percent. Illinois has a flat rate that would increase from 3 percent to 5 percent under the move passed by the Legislature to help plug a $15 billion budget hole. Lawmakers there also approved raising the state's corporate income tax rate, effectively moving it from 7 percent to 9.5 percent. Wisconsin's rate is 7.9 percent. Walker has adopted .the mantra that "Wisconsin is open for business" and has repeated it at nearly every turn ever since his election in November. He's pledged to add 250,000 jobs in Wisconsin by 2015.

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Wisconsin faces a two-year $3 billion budget shortfall. Walker has said his budget will balance even with the business tax cuts he's already proposed.

From during the transition: Dems end lame duck session after failure to pass union contracts
Dejected Democrats quietly ended a messy lame duck session to approve state contracts Thursday, hours after one of their key leaders unexpectedly turned on them and voted the deals down. Senate President Fred Risser gaveled the Senate in and gaveled it out seconds later to officially end the session. No one was in chamber besides Risser, 'Sen. Mike Ellis, R-Neenah, Senate Minority Leader Scott Fitzgerald, RJuneau, new Senate Majority Leader Dave Hansen, D-Green Bay, and the Senate chief clerk's staff, who didn't even bother to tum on the chamber's lights. "Now it's up to Gov. Walker to deal with it in the future," Hansen said, referring to Republican Gov.-elect Scott Walker. "We'll see what happens." Democratic Gov. Jim Doyle's administration announced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored in 16 furlough days Doyle ordered state employees to take in the current state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shortfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board. The first signs of dissension surfaced on Tuesday, when Assembly Democrats approved a lame-duck session to vote on the contracts. Decker would not follow suit, though, and offered no explanation why. Irritated members of his caucus planned to approve the session without his consent, but on Wednesday morning Decker relented and allowed the session to begin. He then took his place on the Legislature's employee relations .committee and voted to approve the contracts and send them to both houses for a full vote. Everyone thought he was ready to move ahead. Assembly Democrats convened first Wednesday evening and barely got the contracts through, approving 16 of them by one vote and the last by three votes. The swing voter was Rep. Jeff Wood, who convinced a judge to release him fromjaillong enough to travel to Madison and vote. Wood, a Chippewa Falls independent who often sides with Democrats, is serving 60 days for impaired driving in Marathon County. A gaggle of reporters chased Wood through the Capitol after the vote, but he ducked into an office without saying anything to them.

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The Senate convened moments later, with Republicans complaining that Democrats were so desperate to tie Walker's hands that they pulled a lawmaker out of jail. Then, moments before the vote on the first contract, Decker got up and said he couldn't support any of the deals. He said Doyle should have had the contracts ready months ago and the next Legislature should deal with them. He and Sen. JeffPlale, D-Milwaukee, voted against the contract, creating a 16-16 tie with Republicans. A tie vote meant the contract failed. Emaged Democrats immediately recessed to a closed door meeting, stomping angrily out of the chamber. Decker seemed in good spirits on his way into the meeting, laughing when a trailing reporter joked he was getting more media attention than Wood. When Democrats remerged they had stripped Decker ofhls leadership post and handed it to Hansen. They returned to the floor and voted on the remaining 16 contracts, but Decker and Plale didn't change their minds and every one of the agreements failed, 16-16. Decker, a 20-year Senate veteran, sat in his chair as the votes went on, looking unaffected. He had nothing to lose; he lost his re-election bid in November and will be out of the Legislature in three weeks anyway.

"I have no regrets," he said before he ducked into his office after the vote.
Plale, meanwhile, also lost re-election in the September primary. He said Democrats should let the next Legislature deal with the contracts rather than try to ram them through. But all eyes were on Decker, whom Democrats painted as a traitor. Sen. Bob Jauch said he was "dumbfounded" by Decker's move. No one saw it coming, he said. Decker has never gotten along with Doyle, Jauch said, but it was selfish to use state workers to hurt the govemor one last time. "It's really offensive," Jauch said. "No matter what his motive is, he's sticking it to a lot of middle class people." Wisconsin State Employees Union executive director Marty Beil wasn't so polite. He called Decker "a whore." Walker, meanwhile, declared victory, issuing a statement saying he'd won the flexibility he needed to balance the state budget.

From during Transition: High-speed rail funds scatter to other states

Wisconsin won't have to repay money already spent; California gets lion's share By Larry Sandler of the Journal Sentinel Dec. 9, 2010 IC1976) Comments Wisconsin will keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation announced Thursday. Governor-elect Scott Walker had vowed to kill the plarmed 110-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect
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John Kasich had issued a similar promise for a plarmed 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash. Now, almost all of the $1.2 billion from the two projects will be divided among other states. California is the big winner, with up to $624 million, followed by Florida, up to $342.3 million; Washington, up to $161.5 million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana. The announcement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may not be on the hook for all of the $9 million or so it has already spent on the project, plus more than $5 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with these states to determine whether they have already spent money under their contracts that should be reimbursed," the announcement said. Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent. Wisconsin also was allowed to retain up to $2 million to fund unspecified upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover all of the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new maintenance base for two newly purchased trains, two projects that would. have been paid for out of the $81 0 million in federal funds. Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal armouncement made no mention of withdrawing that money. No regrets In a meeting with reporters in Waukesha, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending. "That's the decision they've made and we're going to move forward," the Republican governor-elect said. Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80% to 90% of the taxpayer share. The Milwaukee-to-Madison line would have been an extension of the Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains. It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond duLac, Neenah and Stevens Point. Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin." "Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said. "Bogus arguments that this money can be used for roads have been
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proven Together with many others I have worked hard to move Wisconsin . . . false. into the future. I obviously am deeply saddened to see us take a major step backward." The state Department of Transportation had projected that rail-relatedjobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy. Lost opportunity "My congratulations to the workers in California and Florida. As a result of this decision, you will have a merry Christmas," Milwaukee Mayor Tom Barrett said at a news conference. "I'm just sad the same won't happen here in Wisconsin." The unsuccessful Democratic gubernatorial candidate said Wisconsin taxpayers still would pay $140 million for high-speed rail, applying this state's share of federal income taxes to the $8 billion in stimulus rail spending. But now this state won't get the $810 million return it otherwise would have received on its investment, and nearly all of the Wisconsin tax dollars will go elsewhere, Barrett said. Barrett joined Ald. Willie Wade in voicing concern about the future of the Talgo Inc. plant in Wade's north side district. The Spanish train manufacturer expects to have 125 workers on board bynext year, but has said it could leave in 2012 ifthe high-speed rail line is canceled. Talgo has contracts to build two trains for the Hiawatha and two trains for Oregon. It had hoped to build two more trains for the Milwaukee-to-Madison line. Statements from other elected officials broke down along party lines. U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress." Madison Mayor Dave Cieslewicz said at a news conference that he tried numerous times to talk to Walker about the train line but got no response. "I was met with a blank wall," he said. Cieslewicz, a Democrat, said he was willing to have his city put money toward the operating cost of the train, and Dane County Board Chairman Scott McDonell said the county was willing, too. Cieslewicz said he had also asked Barrett about a Milwaukee contribution. Barrett said Cieslewicz was making a good-faith effort to salvage the deal, but Walker wasn't interested. State Rep. Robin Vos (R-Rochester), an incoming co-chairman of the Legislature's budget-writing Joint Finance Committee, welcomed the federal decision. He said it would allow the state to put more money into other areas that would have a more immediate impact on helping the economy. U.S. Rep. Gwen Moore, a Milwaukee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites."

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Countered state Rep. Steve Nass (R-Whitewater): "It's great news that Wisconsin taxpayers won't be fleeced for many decades to come by paying for a liberal pipe-dream in high-speed rail. Unfortunately, the $810 million will now be wasted on high-speed boondoggles in other states."

Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

Times I www.mattbai.com

Matt Bai The New York Times www.mattbai.com

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Downing, Karley - GOV

From: Sent: To: Murray; Ryan M - GOV Wednesday, January 26, 2011 6:24 PM Gilkes, Keith - GOV; Schutt, Eric - GOV; Huebsch, Mike - DOA; Archer, Cynthia - DOA; Jensen, Jodi - DOA Matejov, Scott- GOV; Schrimpf, Chris - GOV; Werwie, Cullen J - GOV; Hagedorn, Brian K - GOV; Hurlburt, Waylon - GOV; Liedl, Kimberly- GOV; Culotta, Jason - DOA; Polzin, Cindy M- GOV Daily Policy and Legislative Briefing

Cc:

Subject:

Policy and Legislative Daily Briefing for Wednesday, January 26, 2011 Legislative Liaison Update Legislator Meetings Met with Amy Loudenbeck regarding the Rules bill - concerning legal process & expansion of choice/charter in Beloit - does not want expansion there just yet Met with Mary Williams regarding Prevailing Wage and goals of working group Met with Pam Galloway staff regarding Prevailing Wage and goals of working group Met with Neil Kedzie, John Gard, Paul Kent, et al regarding the Wetlands Bill and answered all questions and concerns he had to move forward. Hearing next week. Met with Luther Olsen regarding Rules bill and exempting DPI & DOJ, the FMLA, open enrollment, and BadgerNet. Met with Representative Marklein and Senator Schultz on their request to include $1 million in the budget to assist Sauk City in costs associated with updates to Highway 12. Met with Representative Zamarripa who was mainly concerned with anti-immigration and anti-Planned Parenthood legislation potentially. Executive Sessions -Thursday, 1/27 Assembly Jobs Committee - WEDC Senate Econ Development Committee- WEDC Assembly Natural Resources -Wetlands Assembly Judiciary- Rules Bill Confirmation Executive Session- Thursday, 1/27 Senate Labor, Public and Urban Affairs- Secretaries Gary Hamblin and Dave Ross Senate Session -Thursday, 1/27 Special Session Bill 7- Small Business Tax Credit Secretaries Mike Huebsch and Paul Jadin final confirmation Economic Development and Regulatory Reform Team Stakeholder Meetings WI Petroleum Marketers & Convenience Store Assoc (Matt Hauser) WI Automobile and Truck Dealers Assoc (MaryAnn Gerard) Ron Kuehn on behalf of Herzing University, ASP and WI Blue Line Assoc WI Bicycle Federation (Greg Hubbard) WSTA (Bill Esbeck, Chris LaRowe) Credit Union League (Tom Liebe) Energy Center of Wisconsin Alliant Energy (Bill Jordahl)

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Support an "economic development rate" legislation proposal (will promote economic development and industry expansion, and reduces per unit costs for customers overall by spreading energy utilities' fixed costs over greater# of sales) Working with Speaker Fitzgerald's office on drafting legislation

Met with WISPIRG Focused and interested in transparency in government o WISPIRG has point-of-view that creation of the WEDC lacks transparency and that implementing 2007 Act 125 standards is not transparent enough

Human Services and Education Team Assembly Committee on Labor and Workforce Development Rep. Ballweg held an informational hearing with invited guest to speak. DWD Secretary Perez gave a brief presentation on the services the agency has available to the job seekers and employers of Wisconsin. AFL-CIO also spoke on how WI needs to create jobs and not just look for jobs in other states to steal. Met with Rep. Weininger on UW-GB Entrepreneurship Proposal Proposes $1 OOk in seed money to be matched by private foundations that promote business & entrepreneurship. Rep. Weininger feels the Institute for Entrepreneurship and Innovation is affordable and would be well received with the business community in NE Wisconsin. Received Proposal From DPI for a Statewide Student Information System ISIS) Currently each district contracts out for its own SIS. Each district pays for licensing and, in most cases, the cost of manually reentering data into the correct format for state and federal reporting requirements since none of the systems are compatible with each other or with the state's systems. Statewide this costs an estimated $38 million annually. Such a system would be the foundation for many of the efforts outlined in the governor's education plan including teacher performance pay, grading schools, and ending social promotion for third graders who can't read at a basic level. Milwaukee, Kenosha, Waukesha, and Green Bay will all require new SIS in 2012 so development of such a system would need to be done sooner rather than later. DPI estimates the development and implementation of such a system would cost roughly $15 million and cost $8 million annually. Justice and Local Governments Team
Waste, Fraud, and Abuse Commission: Met with Brett Healy from the Mciver Institute. He offered his staff to assist in identifying waste, fraud, and abuse and gave us some ideas such as MPS substitute teacher pay, WI Shares, and local government consolidation incentives. He also said they may testify if we asked them to. Automobile Insurance Repeal: Automobile insurance repeal is scheduled to be voted on in both Senate and Assembly committees tomorrow. Voter ID: The Senate Committee held a hearing on the Voter ID bill authored by Senator Leibham. It was well attended and no surprises came up. The working group to iron out differences between the Assembly and the Senate has not met. ACLU. Opposes voter ID proposal GAB. Information about voter photo ID One Wisconsin Now. Diverse voices register opposition to unneeded voter ID bill DOJ. Van Hollen testifies in favor of bill to require photographic identification to vote RPW. Photo ID bill deserves support Milwaukee Journal Sentinel Veterans: Met with various VSO's to discuss budget ideas and get their feedback. They were also informed that Representative Petersen will be drafting a bill to reorganize the board. They seem to approve of this idea and just want to stay informed. I will relay this to Petersen. I spoke to David Kurtz (Legion) and Anthony Hardie (DAV) about budget issues surrounding the VTF and the board changes. They both seem approving.
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Special Session: Patrick Marley is scheduled to release a column regarding tort reform to coincide with the bill signing tomorrow. A statement from the Governor is supposed to be approved by our legal counsel addressing the open records issue related to DHS reports and included in the column. After speaking to Kevin Moore at DHS and WHA, we believe that nothing will change at DHS regarding these misconduct incident reports or whether they are subject to open records. WHA even prepared a memo laying out why this is the case.

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Downing, Karley - GOV

From:
Schrimpf, Chris - GOV

Sent:
To:

27, 2011 6:55 AM

Subject:

Is this the best number?

202.237.1218
From: Bai, Matthew

Sent: Wednesday, January

To: Schrimpf, Chris - GOV Subject: Re: Walker

thanks, big help. On Jan 26, 2011, at 5:38 PM, Schrimpf, Chris - GOV wrote:

Matt- Although your story is about Christie and public sector unions, I wanted to give you a quick overview of the major things that have been happening here, so you know when you speak to the Gov in the morning. The four stories are a pretty good outline. He also greeted the President when he came to Wisconsin today. The third story down outlines Gov Walker's actions with the unions here.

Wisconsin's New GOP Gov., Lawmakers In Hyperdrive

by The Associated Press MADISON, Wis. January 20,2011, 03:43am ET On Wisconsin's highways, work crews are still changing the road signs that feature his predecessor's name. But in the state Capitol, Scott Walker is already breaking the speed limit. In the last few days, the new Republican governor has been rarmning through the state Legislature an agenda that changes the state's tax structure, provides new legal protections for businesses and reorganizes a major state agency. In rapid-fire fashion, complicated issues that normally occupy months of debate are going from bill to hearing to law. "Everything's coming out in a breakneck pace," said Robert Kraig, a lobbyist since 1999. "I've never seen anything like it." Walker is among the new governors who assumed power this month after the Republican midterm election sweep last fall. But his legislative blitz is unlike the scene in other state capitols, where the gears of government are just beginning to turn. In Michigan, where new Republican governor Rick Snyder has taken charge, lawmakers have just started introducing bills. Walker's march reflects his approach to the job- brash and unconcerned about stepping on toes as he puts in place a pro-business platform he says will create 250,000 jobs in Wisconsin and attract new business. He also benefits from the fact that Republicans also won control of both houses of the legislature, and Democrats are still reeling.

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"I didn't want to waste any time," Walker said in a Wednesday interview. "This is not the only thing we're going to do on the economy. This is just the first big wave, in terms of symbolism of the speed of our action, combined with substance." Democrats, relegated to the minority, say Walker's ability to race through major legislation doesn't mean it's a good idea. "The problem with moving too fast too soon is that you have unintended consequences," said state Sen. Fred Risser, a Democrat from Madison who is his 55th year in the Legislature and is the longest-serving state lawmaker in the country. "I would predict that we'll be back later this spring correcting some of the mistakes that are obviously going to be enacted." The Senate passed a sweeping lawsuit reform bill Tuesday that makes it more difficult for plaintiffs to sue companies and limits damage awards. The Assembly is expected to give its approval Thursday. Also Thursday, both chambers are expected to vote to eliminate state income taxes on contributions to Health Savings Accounts, a long-stalled Republican health proposal. Other measures teed up for next week would cut taxes on businesses that relocate to Wisconsin and provide a tax deduction for every new job created. Walker also has reached agreement on a plan for cutting small business taxes and is working on reorganizing the Commerce Department to better attract businesses. As the bills march by, supporters, opponents and evetyone else are scrambling to keep up. Lawmakers who only went into session on Jan. 3 are presiding over hearings while their offices are still full of unpacked boxes. They receive briefings on bills only hours before they vote, not days or weeks in advance. There is little time for feedback from constituents. "The public couldn't possibly know about all of these changes," said Rep. Peter Barca, the top-ranking Democrat in the Assembly. Interest groups and advocates barely have time for their press conferences. Kraig, a lobbyist for Citizen Action of Wisconsin, threw together three news conferences in eight days to comment on bills under consideration. Typically, he holds one every few months. "Although I don't agree with the policy, it is impressive how much they're getting done," he said. Compare this pace to 2007 when Wisconsin was the last state to pass its budget- nearly four months overdue. When Democrats held power, enact priorities like a statewide smoking ban took several years. Walker defends the rapid pace, saying he was talking about his ideas during his campaign so they're well known by now. GOP Sen. Mark Ellis, who is in his 41st year in the Legislature, says the reason for Republicans to rush to judgment is obvious: Because they can. "Now. that we have the majority, what do they expect us to do?" he said.

Governor Scott Walker uses Illinois tax increase to bolster Wisconsin

BY SCOTT BAUER ASSOCIATED PRESS JANUARY 13, 2011 MADISON- From unpleasant acronyms to describe Illinois residents, to the deep hatred of the Chicago Bears, people in Wisconsin openly express disdain for their neighbors to the south. Gov. Scott Walker, taking advantage of a golden political opportunity after Illinois lawmakers passed dramatic tax increases, piled on Wednesday by welcoming any Illinois businesses to move north.
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But absent from Walker's sales pitch was the fact that Wisconsin's top income tax rates remain higher than those in Illinois, even under the increase. Even so, Walker and fellow Wisconsin Republicans are reveling in drawing a comparison between Illinois, which has a Democratic governor, and his agenda to cut taxes. Walker said he planned to visit Chicago to make his pitch and unveil a marketing campaign targeting Illinois next week. He made the rounds of Chicago television and radio stations on Wednesday, by calling in or through satellite video, and is working to spread the word in Wisconsin. He even dug up a vintage Wisconsin bumper sticker with its old slogan "Escape to Wisconsin." Holding it up at a news conference, Walker said it's being repurposed to target Illinois businesses. Wisconsin lawmakers were quick to jump in. "For years, Illinois families have been spending their weekends and vacations in Wisconsin," said Senate Majority Leader Scott Fitzgerald, R-Juneau. "Now it looks like Illinois is trying to squeeze their jobs out and across the border as well." Walker said that even though Wisconsin's top personal income tax rate is still higher than in Illinois, what's important is the contrast in message. While Illinois is raising taxes, Walker is pushing for tax cuts and other changes to make the state more business friendly. "It just makes Wisconsin look more attractive relative to our neighbor to the south," said James Buchen, a vice president at Wisconsin Manufacturers and Commerce, the state's largest business group. Walker has already called for eliminating taxes for companies that move to Wisconsin from Illinois or anyplace else. He also wants to cut taxes on small businesses already in the state. He even promised to lower the state's personal and corporate income taxes in his first term, but not in his first budget, which will come out next month. Wisconsin has a graduated income tax rate that goes from 4.6 percent to 7.5 percent. Illinois has a flat rate that would increase from 3 percent to 5 percent under the move passed by the Legislatm-e to help plug a $15 billion budget hole. Lawmakers there also approved raising the state's corporate income tax rate, effectively moving it from 7 percent to 9.5 percent. Wisconsin's rate is 7.9 percent. Walker has adopted the mantra that "Wisconsin is open for business" and has repeated it at nearly every tum ever since his election in November. He's pledged to add 250,000 jobs in Wisconsin by 2015. Wisconsin faces a two-year $3 billion budget shortfall. Walker has said his budget will balance even with the business tax cuts he's already proposed.

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From during the transition: Derus end lame duck session after failure to pass union contracts
Dejected Democrats quietly ended a messy lame duck session to approve state contracts Thursday, hours after one of their key leaders unexpectedly turned on them and voted the deals down. Senate President Fred Risser gaveled the Senate in and gaveled it out seconds later to officially end the session. No one was in chamber besides Risser, Sen. Mike Ellis, R-Neenah, Senate Minority Leader Scott Fitzgerald, RJuneau, new Senate Majority Leader Dave Hansen, D-Oreen Bay, and the Senate chief clerk's staff, who didn't even bother to turn on the chamber's lights. "Now it's up to Gov. Walker to deal with it in the future," Hansen said, referring to Republican Gov.-elect Scott Walker. "We'll see what happens." Democratic Gov. Jim Doyle's administration announced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored in 16 furlough days Doyle ordered state employees to take in the current state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shmtfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board. The first signs of dissension surfaced on Tuesday, when Assembly Democrats approved a lame-duck session to vote on the contracts. Decker would not follow suit, though, and offered no explanation why. Irritated members of his caucus planned to approve the session without his consent, but on Wednesday morning Decker relented and allowed the session to begin. He then took his place on the Legislature's employee relations committee and voted to approve the contracts and send them to both houses for a full vote. Everyone thought he was ready to move ahead. Assembly Democrats convened first Wednesday evening and barely got the contracts through, approving 16 of them by one vote and the last by three votes. The swing voter was Rep. Jeff Wood, who convinced a judge to release him fiomjaillong enough to travel to Madison and vote. Wood, a Chippewa Falls independent who often sides with Democrats, is serving 60 days for impaired driving in Marathon County. A gaggle of reporters chased Wood through the Capitol after the vote, but he ducked into an office without saying anything to them. The Senate convened moments later, with Republicans complaining that Democrats were so desperate to tie Walker's hands that they pulled a lawmaker out of jail. Then, moments before the vote on the first contract, Decker got up and said he couldn't support any of the deals. He said Doyle should have had the contracts ready months ago and the next Legislature should deal with them.
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He and Sen. JeffPlale, D-Milwaukee, voted against the contract, creating a 16-16 tie with Republicans. A tie vote meant the contract failed. Emaged Democrats immediately recessed to a closed door meeting, stomping angrily out of the chamber. Decker seemed in good spirits on his way into the meeting, laughing when a trailing reporter joked he was getting more media attention than Wood. When Democrats remerged they had stripped Decker of his leadership post and handed it to Hansen. They returned to the floor and voted on the remaining 16 contracts, but Decker and Plale didn't change their minds and every one of the agreements failed, 16-16. Decker, a 20-year Senate veteran, sat in his chair as the votes went on, looking unaffected. He had nothing to lose; he lost his re-election bid in November and will be out of the Legislature in three weeks anyway. "I have no regrets," he said before he ducked into his office after the vote. Plale, meanwhile, also lost re-election in the September primary. He said Democrats should let the next Legislature deal with the contracts rather than try to ram them through. But all eyes were on Decker, whom Democrats painted as a traitor. Sen. Bob Jauch said he was "dumbfounded" by Decker's move. No one saw it coming, he said. Decker has never gotten along with Doyle, Jauch said, but it was selfish to use state workers to hurt the governor one last time. "It's really offensive," Jauch said. "No matter what his motive is, he's sticking it to a lot of middle class people." Wisconsin State Employees Union executive director Marty Beil wasn't so polite. He called Decker "a whore." Walker, meanwhile, declared victory, issuing a statement saying he'd won the flexibility he needed to balance the state budget.

From during Transition: High-speed rail funds scatter to other states

Wisconsin won't have to repay money already spent; California gets lion's share By Larry Sandler of the Journal Sentinel Dec. 9, 2010 10976) Comments Wisconsin will keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation armounced Thursday . . Governor-elect Scott Walker had vowed to kill the planned 110-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect John Kasich had issued a similar promise for a planned 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash. Now, almost all of the $1.2 billion from the two projects will be divided among other states. California is the big winner, with up to $624 million, followed by Florida, up to $342.3million; Washington, up to $161.5

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million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana. The announcement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may not be on the hook for all of the $9 million or so it has already spent on the project, plus more than $5 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with these states to determine whether they have already spent money under their contracts that should be reimbursed," the announcement said. Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent. Wisconsin also was allowed to retain up to $2 million to fund unspecified upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover all of the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new maintenance base for two newly purchased trains, two projects that would have been paid for out of the $810 million in federal funds. Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal announcement made no mention of withdrawing that money. No regrets In a meeting with reporters in Waukesha, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending. "That's the decision they've made and we're going to move forward," the Republican governor-elect said. Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80% to 90% of the taxpayer share. The Milwaukee-to-Madison line would have been an extension of the Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains.

It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond duLac, Neenah and Stevens Point.
Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin." "Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said. "Bogus arguments that this money can be used for roads have been proven Together with many others I have worked hard to move Wisconsin . . . false. into the future. I obviously am deeply saddened to see us take a major step backward." The state Department of Transportation had projected that rail-related jobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would
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be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy. Lost opportunity "My congratulations to the workers in California and Florida. As a result of this decision, you will have a merry Christmas," Milwaukee Mayor Tom Barrett said at a news conference. "I'm just sad the same won't happen here in Wisconsin." The unsuccessful Democratic gubernatorial candidate said Wisconsin taxpayers still would pay $140 million for high-speed rail, applying this state's share of federal income taxes to the $8 billion in stimulus rail spending. But now this state won't get the $810 million return it otherwise would have received on its investment, and nearly all of the Wisconsin tax dollars will go elsewhere, Barrett said. Barrett joined Ald. Willie Wade in voicing concern about the future of the Taiga Inc. plant in Wade's north side district. The Spanish train manufacturer expects to have 125 workers on board by next year, but has said it could leave in 2012 if the high-speed rail line is canceled. Taiga has contracts to build two trains for the Hiawatha and two trains for Oregon. It had hoped to build two more trains for the Milwaukee-to-Madison line. Statements from other elected officials broke down along party lines. U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress." Madison Mayor Dave Cieslewicz said at a news conference that he tried numerous times to talk to Walker about the train line but got no response. "I was met with a blauk wall," he said. Cieslewicz, a Democrat, said he was willing to have his city put money toward the operating cost of the train, and Dane County Board Chairman Scott McDonell said the county was willing, too. Cieslewicz said he had also asked Barrett about a Milwaukee contribution. Barrett said Cieslewicz was making a good-faith effort to salvage the deal, but Walker wasn't interested. State Rep. Robin Vas (R-Rochester), an incoming co-chairman of the Legislature's budget-writing Joint Finance Committee, welcomed the federal decision. He said it would allow the state to put more money into other areas that would have a more immediate impact on helping the economy. U.S. Rep. Gwen Moore, a Milwa11kee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites." Countered state Rep. Steve Nass (R-Whitewater): "It's great news that Wisconsin taxpayers won't be fleeced for many decades to come by paying for a liberal pipe-dream in high-speed rail. Unfortunately, the $810 million will now be wasted on high-speed boondoggles in other states."

Chris Schrimpf
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Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpf@wisconsin.gov

Matt Bai The New York Times www.mattbai.com

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Downing, Karley - GOV

From:

Sent:
To:

Subject:

Bai, M a t t h e w . _ . _ . _ , Wednesday, January 26, 2011 4:48 PM Schrimpf, Chris - GOV Re: Walker

thanks, big help. On Jan 26,2011, at 5:38PM, Schrimpf, Chris- GOY wrote:

Matt- Although your story is about Christie and public sector unions, I wanted to give you a quick overview of the major things that have been happening here, so you know when you speak to the Gov in the morning. The four stories are a pretty good outline. He also greeted the President when he came to Wisconsin today. The third story down outlines Gov Walker's actions with the unions here.

Wisconsin's New GOP Gov., Lawmakers In Hyperdrive

by The Associated Press MADISON, Wis. January 20, 2011, 03:43am ET On Wisconsin's highways, work crews are still changing the road signs that feature his predecessor's name. But in the state Capitol, S.cott Walker is already breaking the speed limit. In the last few days, the new Republican governor has been ramming through the state Legislature an agenda that changes the state's tax structure, provides new legal protections for businesses and reorganizes a major state agency. In rapid-fire fashion, complicated issues that normally occupy months of debate are going from bill to hearing to law. "Everything's coming out in a breakneck pace," said Robert Kraig, a lobbyist since 1999. "I've never seen anything like it." Walker is among the new governors who assumed power this month after the Republican midterm election sweep last fall. But his legislative blitz is unlike the scene in other state capitols, where the gears of government are just beginning to turn. In Michigan, where new Republican governor Rick Snyder has taken charge, lawmakers have just started introducing bills. Walker's march reflects his approach to the job- brash and unconcerned about stepping on toes as he puts in place a pro-business platform he says will create 250,000 jobs in Wisconsin and attract new business. He also benefits from the fact that Republicans also won control of both houses of the legislature, and Democrats are still reeling. "I didn't want to waste any time," Walker said in a Wednesday interview. "This is not the only thing we're going to do on the economy. This is just the first big wave, in terms of symbolism of the speed of our action, combined with substance." Democrats, relegated to the minority, say Walker's ability to race through major legislation doesn't mean it's a good idea. "The problem with moving too fast too soon is that you have unintended consequences," said state Sen. Fred Risser, a Democrat from Madison who is his 55th year in the Legislature and is the longest-serving state lawmaker in the country. "I would predict that we'll be back later this spring cmTecting some of the mistakes that are obviously going to be enacted."
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The Senate passed a sweeping lawsuit reform bill Tuesday that makes it more difficult for plaintiffs to sue companies and limits damage awards. The Assembly is expected to give its approval Thursday. Also Thursday, both chambers are expected to vote to eliminate state income taxes on contributions to Health Savings Accounts, a long-stalled Republican health proposal. Other measures teed up for next week would cut taxes on businesses that relocate to Wisconsin and provide a tax deduction for every new job created. Walker also has reached agreement on a plan for cutting small business taxes and is working on reorganizing the Commerce Department to better attract businesses. As the bills march by, supporters, opponents and everyone else are scrambling to keep up. Lawmakers who only went into session on Jan. 3 are presiding over hearings while their offices are still full of unpacked boxes. They receive briefings on bills only hours before they vote, not days or weeks in advance. There is little time for feedback from constituents. "The public couldn't possibly know about all of these changes," said Rep. Peter Barca, the top-ranking Democrat in the Assembly. Interest groups and advocates barely have time for their press conferences. Kraig, a lobbyist for Citizen Action of Wisconsin, threw together three news conferences in eight days to comment on bills under consideration. Typically, he holds one every few months. "Although I don't agree with the policy, it is impressive how much they're getting done," he said. Compare this pace to 2007 when Wisconsin was the last state to pass its budget- nearly four months overdue. When Democrats held power, enact priorities like a statewide smoking ban took several years: Walker defends the rapid pace, saying he was talking about his ideas during his campaign so they're well known by now. GOP Sen. Mark Ellis, who is in his 41st year in the Legislature, says the reason for Republicans to rush to judgment is obvious: Because they can. "Now that we have the majority, what do they expect us to do?" he said.

Governor Scott Walker uses Illinois tax increase to bolster Wisconsin

BY SCOTT BAUER ASSOCIATED PRESS JANUARY 13,2011 MADISON- From unpleasant acronyms to describe Illinois residents, to the deep hatred of the Chicago Bears, people in Wisconsin openly express disdain for their neighbors to the south. Gov. Scott Walker, taking advantage of a golden political opportunity after Illinois lawmakers passed dramatic tax increases, piled on Wednesday by welcoming any Illinois businesses to move north. But absent from Walker's sales pitch was the fact that Wisconsin's top income tax rates remain higher than those in Illinois, even under the increase. Even so, Walker and fellow Wisconsin Republicans are reveling in drawing a comparison between Illinois, which has a Democratic governor, and his agenda to cut taxes.

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Walker said he planned to visit Chicago to make his pitch and unveil a marketing campaign targeting Illinois next week. He made the rounds of Chicago television and radio stations on Wednesday, by calling in or through satellite video, and is working to spread the word in Wisconsin. He even dug up a vintage Wisconsin bumper sticker with its old slogan "Escape to Wisconsin." Holding it up at a news conference, Walker said it's being repurposed to target Illinois businesses. Wisconsin lawmakers were quick to jump in. "For years, Illinois families have been spending their weekends and vacations in Wisconsin," said Senate Majority Leader Scott Fitzgerald, R-Juneau. "Now it looks like Illinois is trying to squeeze their jobs out and across the border as well." Walker said that even though Wisconsin's top personal income tax rate is still higher than in Illinois, what's important is the contrast in message. While Illinois is raising taxes, Walker is pushing for tax cuts and other changes to make the state more business friendly. "It just makes Wisconsin look more attractive relative to our neighbor to the south," said James Buchen, a vice president at Wisconsin Manufacturers and Commerce, the state's largest business group. Walker has already called for eliminating taxes for companies that move to Wisconsin from Illinois or anyplace else. He also wants to cut taxes on small businesses already in the state. He even promised to lower the state's personal and corporate income taxes in his first term, but not in his first budget, which will come out next month. Wisconsin has a graduated income tax rate that goes from 4.6 percent to 7.5 percent. Illinois has a flat rate that would increase from 3 percent to 5 percent under the move passed by the Legislature to help plug a $15 billion budget hole. Lawmakers there also approved raising the state's corporate income tax rate, effectively moving it from 7 percent to 9.5 percent. Wisconsin's rate is 7.9 percent. Walker has adopted the mantra that "Wisconsin is open for business" and has repeated it at nearly every tum ever since his election in November. He's pledged to add 250,000 jobs in Wisconsin by 2015. Wisconsin faces a two-year $3 billion budget shortfall. Walker has said his budget will balance even with the business tax cuts he's already proposed.

From during the transition: Dems end lame duck session after failure to pass union contracts
Dejected Democrats quietly ended a messy lame duck session to approve state contracts Thursday, hours after one of their key leaders unexpectedly turned on them and voted the deals down.

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Senate President Fred Risser gaveled the Senate in and gaveled it out seconds later to officially end the session. No one was in chamber besides Risser, Sen. Mike Ellis, R-Neenah, Senate Minority Leader Scott Fitzgerald, RJuneau, new Senate Majority Leader Dave Hansen, D-Oreen Bay, and the Senate chief clerk's staff, who didn't even bother to turn on the chamber's lights. "Now it's up to Gov. Walker to deal with it in the future," Hansen said, referring to Republican Gov.-elect Scott Walker. "We'll see what happens." Democratic Gov. Jim Doyle's administration am1ounced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored in 16 furlough days Doyle ordered state employees to take in the current state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shortfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board. The first signs of dissension surfaced on Tuesday, when Assembly Democrats approved a lame-duck session to vote on the contracts. Decker would not follow suit, though, and offered no explanation why. Irritated members of his caucus plam1ed to approve the session without his consent, but on Wednesday morning Decker relented and allowed the session to begin. He then took his place on the Legislature's employee relations committee and voted to approve the contracts and send them to both houses for a full vote. Everyone thought he was ready to move ahead. Assembly Democrats convened first Wednesday evening and barely got the contracts through, approving 16 of them by one vote and the last by three votes. The swing voter was Rep. Jeff Wood, who convinced a judge to release him fromjaillong enough to travel to Madison and vote. Wood, a Chippewa Falls independent who often sides with Democrats, is serving 60 days for impaired driving in Marathon County. A gaggle of reporters chased Wood through the Capitol after the vote, but he ducked into an office without saying anything to them. The Senate convened moments later, with Republicans complaining that Democrats were so desperate to tie Walker's hands that they pulled a lawmaker out of jail. Then, moments before the vote on the first contract, Decker got up and said he couldn't support any of the deals. He said Doyle should have had the contracts ready months ago and the next Legislature should deal with them. He and Sen. JeffPlale, D-Milwaukee, voted against the contract, creating a 16-16 tie with Republicans. A tie vote meant the contract failed. Emaged Democrats immediately recessed to a closed door meeting, stomping angrily out of the chamber. Decker seemed in good spirits on his way into the meeting, laughing when a trailing reporter joked he was getting more media attention than Wood.
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When Democrats remerged they had stripped Decker of his leadership post and handed it to Hansen. They returned to the floor and voted on the remaining 16 contracts, but Decker and Plale didn't change their minds and every one of the agreements failed, 16-16. Decker, a 20-year Senate veteran, sat in his chair as the votes went on, looking unaffected. He had nothing to lose; he lost his re-election bid in November and will be out of the Legislature in three weeks anyway. "I have no regrets," he said before he ducked into his office after the vote. Plale, meanwhile, also lost re-election in the September primary. He said Democrats should let the next Legislature deal with the contracts rather than try to ram them through. But all eyes were on Decker, whom Democrats painted as a traitor. Sen. Bob Jauch said he was "dumbfounded" by Decker's move. No one saw it coming, he said. Decker has never gotten along with Doyle, Jauch said, but it was selfish to use state workers to hurt the governor one last time. "It's really offensive," Jauch said. "No matter what his motive is, he's sticking it to a lot of middle class people." Wisconsin State Employees Union executive director Marty Beil wasn't so polite. He called Decker "a whore." Walker, meanwhile, declared victory, issuing a statement saying he'd won the flexibility he needed to balance the state budget.

From during Transition: High-speed rail funds scatter to other states

Wisconsin won't have to repay money already spent; California gets lion's share By Larry Sandler of the Journal Sentinel Dec. 9, 2010 IC1976) Comments Wisconsin will keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation announced Thursday. Governor-elect Scott Walker had vowed to kill the planned 11 0-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect John Kasich had issued a similar promise for a planned 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash. Now, almost all of the $1.2 billion from the two projects will be divided among other states. California is the big winner, with up to $624 million, followed by Florida, up to $342.3 million; Washington, up to $161.5 million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana. The announcement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may not be on the hook for all of the $9 million or so it has already spent on the project, plus more than $5 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with these states to determine whether they have already spent money under their contracts that should be reimbursed," the announcement said.
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Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent. Wisconsin also was allowed to retain up to $2 million to fund unspecified upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover all of the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new maintenance base for two newly purchased trains, two projects that would have been paid for out of the $810 million in federal funds. Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal announcement made no mention of withdrawing that money. No regrets In a meeting with reporters in Waukesha, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending. "That's the decision they've made and we're going to move forward," the Republican governor-elect said. Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80% to 90% of the taxpayer share. The Milwaukee-to-Madison line would have been an extension of the Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains. It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond duLac, Neenah and Stevens Point. Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin." "Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said. "Bogus arguments that this money can be used for roads have been proven Together with many others I have worked hard to move Wisconsin . . . false. into the future. I obviously am deeply saddened to see us take a major step backward." The state Department of Transportation had projected that rail-related jobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy. Lost opportunity "My congratulations to the workers in California and Florida. As a result of this decision, you will have a merry Christmas," Milwaukee Mayor Tom Barrett said at a news conference. "I'm just sad the same won't happen here in Wisconsin."
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The unsuccessful Democratic gubernatorial candidate said Wisconsin taxpayers still would pay $140 million for high-speed rail, applying this state's share of federal income taxes to the $8 billion in stimulus rail spending. But now this state won't get the $810 million return it otherwise would have received on its investment, and nearly all of the Wisconsin tax dollars will go elsewhere, Barrett said. Barrett joined Ald. Willie Wade in voicing concern about the future of the Talgo Inc. plant in Wade's north side district. The Spanish train mam.,facturer expects to have 125 workers on board by next year, but has said it could leave in 2012 if the high-speed rail line is canceled. Talgo has contracts to build two trains for the Hiawatha and two trains for Oregon. It had hoped to build two more trains for the Milwaukee-to-Madison line. Statements from other eleCted officials broke down along party lines. U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress." Madison Mayor Dave Cieslewicz said at a news conference that he tried numerous times to talk to Walker about the train line but got no response. "I was met with a blank wall," he said. Cieslewicz, a Democrat, said he was willing to have his city put money toward the operating cost of the train, and Dane County Board Chairman Scott McDonell said the county was willing, too. Cieslewicz said he had also asked Barrett about a Milwaukee contribution. Barrett said Cieslewicz was making a good-faith effort to salvage the deal, but Walker wasn't interested. State Rep. Robin Vos (R-Rochester), an incoming co-chairman of the Legislature's budget-writing Joint Finance Committee, welcomed the federal decision. He said it would allow the state to put more money into other areas that would have a more immediate impact on helping the economy. U.S. Rep. Gwen Moore, a Milwaukee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites." Countered state Rep. Steve Nass (R-Whitewater): "It's great news that Wisconsin taxpayers won't be fleeced for many decades to come by paying for a liberal pipe-dream in high-speed rail. Unfortunately, the $810 million will now be wasted on high-speed boondoggles in other states."

Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

Matt Bai The New York Times

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www.mattbai.com

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Downing, Karley - GOV

From:

Sent: To: Subject:

Schrimpf, Chris - GOV Wednesday, January 26, 2011 4:39 PM Bai, Matthew Walker

Matt- Although your story is about Christie and public sector unions, I wanted to give you a quick overview of the major things that. have been happening here, so you know when you speak to the Gov in the morning. The four stories are a pretty good outline. He also greeted the President when he came to Wisconsin today. The third story down outlines Gov Walker's actions with the unions here.

Wisconsin's New GOP Gov., Lawmakers In Hyperdrive

by The Associated Press MADISON, Wis. January 20,2011, 03:43am ET On Wisconsin's highways, work crews are still changing the road signs that feature his predecessor's name. But in the state Capitol, Scott Walker is already breaking the speed limit. In the last few days, the new Republican governor has been ramming through the state Legislature an agenda that changes the state's tax structure, provides new legal protections for businesses and reorganizes a major. state agency. In rapid-fire fashion, complicated issues that normally occupy months of debate are going from bill to hearing to law. "Everything's coming out in a breakneck pace," said Robert Kraig, a lobbyist since 1999. "I've never seen anything like it." Walker is among the new governors who assumed power this month after the Republican midterm election sweep last fall. But his legislative blitz is unlike the scene in other state capitols, where the gears of goverurnent are just beginning to turn. In Michigan, where new Republican governor Rick Snyder has taken charge, lawmakers have just started introducing bills. Walker's march reflects his approach to the job- brash and unconcerned about stepping on toes as he puts in place a pro-business platform he says will create 250,000 jobs in Wisconsin and attract new business. He also benefits from the fact that Republicans also won control of both houses of the legislature, and Democrats are still reeling. "I didn't want to waste any time," Walker said in a Wednesday interview. "This is not the only thing we're going to do on the economy. This is just the first big wave, in terms of symbolism of the speed of our action, combined with substance." Democrats, relegated to the minority, say Walker's ability to race through major legislation doesn't mean it's a good idea. "The problem with moving too fast too soon is that .you have unintended consequences," said state Sen. Fred Risser, a Democrat from Madison who is his 55th year in the Legislature and is the longest-serving state lawmaker in the country. "I would predict that we'll be back later this spring correcting some of the mistakes that are obviously going to be enacted." The Senate passed a sweeping lawsuit reform bill Tuesday that makes it more difficult for plaintiffs to sue companies and limits damage awards. The Assembly is expected to give its approval Thursday. Also Thursday, both chambers are expected to vote to eliminate state income taxes on contributions to Health Savings Accounts, a long-stalled Republican health proposal.
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Other measures teed up for next week would cut taxes on businesses that relocate to Wisconsin and provide a tax deduction for every new job created. Walker also has reached agreement on a plan for cutting small business taxes and is working on reorganizing the Commerce Department to better attract businesses. As the bills march by, supporters, opponents and everyone else are scrambling to keep up. Lawmakers who only went into session on Jan. 3 are presiding over hearings while their offices are still full of unpacked boxes. They receive briefings on bills only hours before they vote, not days or weeks in advance. There is little time for feedback from constituents. "The public couldn't possibly know about all of these changes," said Rep. Peter Barca, the top-ranking Democrat in the Assembly. Interest groups and advocates barely have time for their press conferences. Kraig, a lobbyist for Citizen Action of Wisconsin, threw together three news conferences in eight days to comment on bills under consideration. Typically, he holds one every few months. "Although I don't agree with the policy, it is impressive how much they're getting done," he said. Compare this pace to 2007 when Wisconsin was the last state to pass its budget -nearly four months overdue. When Democrats held power, enact priorities like a statewide smoking ban took several years. Walker defends the rapid pace, saying he was talking about his ideas during his campaign so they're well known by now. GOP Sen. Mark Ellis, who is in his 41st year in the Legislature, says the reason for Republicans to rush to judgment is obvious: Because they can. "Now that we have the majority, what do they expect us to do?" he said.

Governor Scott Walker uses Illinois tax increase to bolster Wisconsin

BY SCOTT BAUER ASSOCIATED PRESS JANUARY 13, 2011 MADISON- From unpleasant acronyms to describe Illinois residents, to the deep hatred of the Chicago Bears, people in Wisconsin openly express disdain for their neighbors to the south. Gov. Scott Walker, taking advantage of a golden political opportunity after Illinois lawmakers passed dramatic tax increases, piled on Wednesday by welcoming any Illinois businesses to move north. But absent from Walker's sales pitch was the fact that Wisconsin's top income tax rates remain higher than those in Illinois, even under the increase. Even so, Walker and fellow Wisconsin Republicans are reveling in drawing a comparison between Illinois, which has a Democratic governor, and his agenda to cut taxes. Walker said he planned to visit Chicago to make his pitch and unveil a marketing campaign targeting Illinois next week. He made the rounds of Chicago television and radio stations on Wednesday, by calling in or through satellite video, and is working to spread the word in Wisconsin. He even dug up a vintage Wisconsin bumper sticker with its old slogan "Escape to Wisconsin." Holding it up at a news conference, Walker said it's being repurposed to target Illinois businesses.
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Wisconsin lawmakers were quick to jump in. "For years, Illinois families have been spending their weekends and vacations in Wisconsin," said Senate Majority Leader Scott Fitzgerald, R-Juneau. "Now it looks like Illinois is trying to squeeze their jobs out and across the border as well." Walker said that even though Wisconsin's top personal income tax rate is still higher than in Illinois, what's important is the contrast in message. While Illinois is raising taxes, Walker is pushing for tax cuts and other changes to make the state more business friendly.

"It just makes Wisconsin look more attractive relative to our neighbor to the south," said James Buchen, a vice
president at Wisconsin Manufacturers and Commerce, the state's largest business group. Walker has already called for eliminating taxes for companies that move to Wisconsin from Illinois or anyplace else. He also wants to cut taxes on small businesses already in the state. He even promised to lower the state's personal and corporate income taxes in his first term, but not in his first budget, which will come out next month. Wisconsin has a graduated income tax rate that goes from 4.6 percent to 7.5 percent. Illinois has a flat rate that would increase from 3 percent to 5 percent under the move passed by the Legislature to help plug a $15 billion budget hole. Lawmakers there also approved raising the state's corporate income tax rate, effectively moving it from 7 percent to 9.5 percent. Wisconsin's rate is 7.9 percent. Walker has adopted the mantra that "Wisconsin is open for business" and has repeated it at nearly every turn ever since his election in November. He's pledged to add 250,000 jobs in Wisconsin by 2015. Wisconsin faces a two-year $3 billion budget shortfall. Walker has said his budget will balance even with the business tax cuts he's already proposed.

From during the transition: Dems end lame duck session after failure to pass union contracts
Dejected Democrats quietly ended a messy lame duck session to approve state contracts Thursday, hours after one of their key leaders unexpectedly turned on them and voted the deals down. Senate President Fred Risser gaveled the Senate in and gaveled it out seconds later to officially end the session. No one was in chamber besides Risser, Sen. Mike Ellis, R-Neenah, Senate Minority Leader Scott Fitzgerald, RJuneau, new Senate Majority Leader Dave Hansen, D-Green Bay, and the Senate chief clerk's staff, who didn't even bother to turn on the chamber's lights. "Now it's up to Gov. Walker to deal with it in the future," Hansen said, referring to Republican Gov.-elect Scott Walker. "We'll see what happens."

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Democratic Gov. Jim Doyle's administration announced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored in 16 furlough days Doyle ordered state employees to take in the cmTent state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shortfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board. The first signs of dissension surfaced on Tuesday, when Assembly Democrats approved a lame-duck session to vote on the contracts. Decker would not follow suit, though, and offered no explanation why. Irritated members of his caucus planned to approve the session without his consent, but on Wednesday morning Decker relented and allowed the session to begin. He then took his place on the Legislature's employee relations committee and voted to approve the contracts and send them to both houses for a full vote. Everyone thought he was ready to move ahead. Assembly Democrats convened first Wednesday evening and barely got the contracts through, approving 16 of them by one vote and the last by three votes. The swing voter was Rep. Jeff Wood, who convinced a judge to release him fromjaillong enough to travel to Madison and vote. Wood, a Chippewa Falls independent who often sides with Democrats, is serving 60 days for impaired driving in Marathon County. A gaggle of reporters chased Wood through the Capitol after the vote, but he ducked into an office without saying anything to them. The Senate convened moments later, with Republicans complaining that Democrats were so desperate to tie Walker's hands that they pulled a lawmaker out of jail. Then, moments before the vote on the first contract, Decker got up and said he couldn't supp01t any of the deals. He said Doyle should have had the contracts ready months ago and the next Legislature should deal with them. He and Sen. JeffPlale, D-Milwaukee, voted against the contract, creating a 16-16 tie with Republicans. A tie vote meant the contract failed. Emaged Democrats immediately recessed to a closed door meeting, stomping angrily out ofthe chamber. Decker seemed in good spirits on his way into the meeting, laughing when a trailing reporter joked he was getting more media attention than Wood. When Democrats remerged they had stripped Decker of his leadership post and handed it to Hansen. They returned to the floor and voted on the remaining 16 contracts, but Decker and Plale didn't change their minds and every one of the agreements failed, 16-16. Decker, a 20-year Senate veteran, sat in his chair as the votes went on, looking unaffected. He had nothing to lose; he lost his re-election bid in November and will be out of the Legislature in three weeks anyway. "I have no regrets," he said before he ducked into his office after the vote.
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Plale, meanwhile, also lost re-election in the September primary. He said Democrats should let the next Legislature deal with the contracts rather than try to ram them through. But all eyes were on Decker, whom Democrats painted as a traitor. Sen. Bob Jauch said he was "dumbfounded" by Decker's move. No one saw it coming, he said. Decker has never gotten along with Doyle, Jauch said, but it was selfish to use state workers to hurt the governor one last time. "It's really offensive," Jauch said. "No matter what his motive is, he's sticking it to a lot of middle class people." Wisconsin State Employees Union executive director Marty Beil wasn't so polite. He called Decker "a whore." Walker, meanwhile, declared victory, issuing a statement saying he'd won the flexibility he needed to balance the state budget.

From during Transition: High-speed rail funds scatter to other states

Wisconsin won't have to repay money already spent; California gets lion's share By Larry Sandler of the Journal Sentinel Dec. 9, 2010 1(1976) Comments Wisconsin will keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation armounced Thursday. Governor-elect Scott Walker had vowed to kill the planned 11 0-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect John Kasich had issued a similar promise for a planned 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash. Now, almost all of the $1.2 billion from the two projects will be divided ainong other states: California is the big winner, with up to $624 million, followed by Florida, up to $342.3 million; Washington, up to $161.5 million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana. The anilouncement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may not be on the hook for all of the $9 million or so it has already spent on the project, plus more than $5 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with. these states to determine whether they have already spent money under their contracts that should be reimbursed," the armouncement said. Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent. Wisconsin also was allowed to retain up to $2 million to fund unspecified upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover all of the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new

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maintenance base for two newly purchased trains, two projects that would have been paid for out of the $810 million in federal funds. Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal announcement made no mention of withdrawing that money. No regrets In a meeting with reporters in Waukesha, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending. "That's the decision they've made and we're going to move forward," the Republican governor-elect said. Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80% to 90% of the taxpayer share. The Milwaukee-to-Madison line would have been an extension ofthe Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains. It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond duLac, Neenah and Stevens Point. Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin." "Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said. "Bogus arguments that this money can be used for roads have been proven Together with many others I have worked hard to move Wisconsin . . . false. into the future. I obviously am deeply saddened to see us take a major step backward." The state Department of Transportation had projected that rail-related jobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy. Lost opportunity "My congratulations to the workers in California and Florida. As a result of this decision, you will have a merry Christmas," Milwaukee Mayor Tom Barrett said at a news conference. "I'm just sad the same won't happen here in Wisconsin." The unsuccessful Democratic gubernatorial candidate said Wisconsin taxpayers still would pay $140 million for high-speed rail, applying this state's share of federal income taxes to the $8 billion in stimulus rail spending. But now this state won't get the $810 million return it otherwise would have received on its investment, and nearly all of the Wisconsin tax dollars will go elsewhere, Barrett said.

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Barrett joined Ald. Willie Wade in voicing concern about the future of the Talgo Inc. plant in Wade's north side district. The Spanish train manufacturer expects to have 125 workers on board by next year, but has said it could leave in 2012 if the high-speed rail line is canceled. Talgo has contracts to build two trains for the Hiawatha and two trains for Oregon. It had hoped to build two more trains for the Milwaukee-toeMadison line. Statements from other elected officials broke down along party lines. U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress." Madison Mayor Dave Cieslewicz said at a news conference that he tried numerous times to talk to Walker about the train line but got no response. "I was met with a blank wall," he said. Cieslewicz, a Democrat, said he was willing to have his city put money toward the operating cost of the train, and Dane County Board Chairman Scott McDonell said the county was willing, too. Cieslewicz said he had also asked Barrett about a Milwaukee contribution. Barrett said Cieslewicz was making a good-faith effort to salvage the deal, but Walker wasn't interested. State Rep. Robin Vos (R-Rochester), an incoming co-chairman of the Legislature's budget-writing Joint Finance Committee, welcomed the federal decision. He said it would allow the state to put more money into other areas that would have a more immediate impact on helping the economy. U.S. Rep. Gwen Moore, a Milwaukee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites." Countered state Rep. Steve Nass (R-Whitewater): "It's great news that Wisconsin taxpayers won't be fleeced for many decades to come by paying for a liberal pipe-dream in high-speed rail. Unfortunately, the $810 million will now be wasted on high-speed boondoggles in other states."

Chris Schrimpf
Communi9ations Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

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Downing, Karley - GOV

From:

Sent:
To:

Subject:

Schrimpf, Chris - GOV Tuesday, January 25, 2011 3:22 PM Dan Balz RE: Scott Walker

These 4 stories paint a pretty good picture of the major highlights of the transition and first 3 weeks.

Wisconsin's New GOP Gov., Lawmakers In Hyperdrive

by The Associated Press MADISON, Wis. January 20, 2011, 03:43 am ET On Wisconsin's highways, work crews are still changing the road signs that feature his predecessor's name. But in the state Capitol, Scott Walker is already breaking the speed limit. In the last few days, the new Republican governor has been ranuning through the state Legislature an agenda that changes the state's tax structure, provides new legal protections for businesses and reorganizes a major state agency. In rapid-fire fashion, complicated issues that normally occupy months of debate are going from bill to hearing to law. "Everything's coming out in a breakneck pace," said Robert Kraig, a lobbyist since 1999. "I've never seen anything like it." Walker is among the new governors who assumed power this month after the Republican midterm election sweep last fall. But his legislative blitz is unlike the scene in other state capitols, where the gears of government are just beginning to tum. In Michigan, where new Republican governor Rick Snyder has taken charge, lawmakers have just started introducing bills. Walker's march reflects his approach to the job- brash and unconcerned about stepping on toes as he puts in place a pro-business platform he says will create 250,000 jobs in Wisconsin and attract new business. He also benefits from the fact that Republicans also won control of both houses of the legislature, and Democrats are still reeling. "I didn't want to waste any time," Walker said in a Wednesday interview. "This is not the only thing we're going to do on the economy. This is just the first big wave, in terms of symbolism of the speed of our action, combined with substance." Democrats, relegated to the minority, say Walker's ability to race through major legislation doesn't mean it's a good idea. "The problem with moving too fast too soon is that you have unintended consequences," said state Sen. Fred Risser, a Democrat from Madison who is his 55th year in the Legislature and is the longest-serving state lawmaker in the country. "I would predict that we'll be back later this spring correcting some of the mistakes that are obviously going to be enacted." The Senate passed a sweeping lawsuit reform bill Tuesday that makes it more difficult for plaintiffs to sue companies and limits damage awards. The Assembly is expected to give its approval Thursday. Also Thursday, both chambers are expected to vote to eliminate state income taxes on contributions to Health Savings Accounts, a long-stalled Republican health proposal. Other measures teed up for next week would cut taxes on businesses that relocate to Wisconsin and provide a tax deduction for every new job created. Walker also has reached agreement on a plan for cutting small business taxes and is working on reorganizing the Commerce Department to better attract businesses.
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As the bills march by, supporters, opponents and everyone else are scrambling to keep up. Lawmakers who only went into session on Jan. 3 are presiding over hearings while their offices are still full of unpacked boxes. They receive briefings on bills only hours before they vote, not days or weeks in advance. There is little time for feedback from constituents. "The public couldn't possibly know about all of these changes," said Rep. Peter Barca, the top-ranking Democrat in the Assembly. Interest groups and advocates barely have time for their press conferences. Kraig, a lobbyist for Citizen Action of Wisconsin, threw together three news conferences in eight days to comment on bills under consideration. Typically, he holds one every few months. "Although I don't agree with the policy, it is impressive how much they're getting done," he said. Compare this pace to 2007 when Wisconsin was the last state to pass its budget - nearly four months overdue. When Democrats held power, enact priorities like a statewide smoking ban took several years. Walker defends the rapid pace, saying he was talking about his ideas during his campaign so they're well known by now. GOP Sen. Mark Ellis, who is in his 41st year in the Legislature, says the reason for Republicans to rush to judgment is obvious: Because they can. "Now that we have the majority, what do they expect us to do?" he said.

Governor Scott Walker uses Illinois tax increase to bolster Wisconsin

BY SCOTT BAUER ASSOCIATED PRESS JAI\'UARY 13, 2011 MADISON- From unpleasant acronyms to describe Illinois residents, to the deep hatred of the Chicago Bears, people in Wisconsin openly express disdain for their neighbors to the south. Gov. Scott Walker, taking advantage of a golden political opportunity after Illinois lawmakers passed dramatic tax increases, piled on Wednesday by welcoming any Illinois businesses to move north. But absent from Walker's sales pitch was the fact that Wisconsin's top income tax rates remain higher than those in Illinois, even under the increase. Even so, Walker and fellow Wisconsin Republicans are reveling in drawing a comparison between Illinois, which has a Democratic governor, and his agenda to cut taxes. Walker said he planned to visit Chicago to make his pitch and unveil a marketing campaign targeting Illinois next week. He made the rounds of Chicago television and radio stations on Wednesday, by calling in or through satellite video, and is working to spread the word in Wisconsin. He even dug up a vintage Wisconsin bumper sticker with its old slogan "Escape to Wisconsin." Holding it up at a news conference, Walker said it's being repurposed to target Illinois businesses. Wisconsin lawmakers were quick to jump in.
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"For years, Illinois families have been spending their weekends and vacations in Wisconsin," said Senate Majority Leader Scott Fitzgerald, R-Juneau. "Now it looks like Illinois is trying to squeeze their jobs out and across the border as well." Walker said that even though Wisconsin's top personal income tax rate is still higher than in Illinois, what's important is the contrast in message. While Illinois is raising taxes, Walker is pushing for tax cuts and other changes to make the state more business friendly. "It just makes Wisconsin look more attractive relative to onr neighbor to the south," said James Buchen, a vice president at Wisconsin Manufacturers and Commerce, the state's largest business group. Walker has already called for eliminating taxes for companies that move to Wisconsin from Illinois or anyplace else. He also wants to cut taxes on small businesses already in the state. He even promised to lower the state's personal and corporate income taxes in his first term, but not in his first budget, which wilf come out next month. Wisconsin has a graduated income tax rate that goes from 4.6 percent to 7.5 percent. Illinois has a flat rate that would increase from 3 percent to 5 percent under the move passed by the Legislature to help plug a $15 billion budget hole. Lawmakers there also approved raising the state's corporate income tax rate, effectively moving it from 7 percent to 9.5 percent. Wisconsin's rate is 7.9 percent. Walker has adopted the mantra that "Wisconsin is open for business" and has repeated it at nearly every turn ever since his election in November. He's pledged to add 250,000 jobs in Wisconsin by 2015. Wisconsin faces a two-year $3 billion budget shortfall. Walker has said his budget will balance even with the business tax cuts he's already proposed.

From during the transition: Dems end lame duck session after failure to pass union contracts
Dejected Democrats quietly ended a messy lame duck session to approve state contracts Thursday, hours after one of their key leaders unexpectedly turned on them and voted the deals down. Senate President Fred Risser gaveled the Senate in and gaveled it out seconds later to officially end the session. No one was in chamber besides Risser, Sen. Mike Ellis, R-Neenah, Senate Minority Leader Scott Fitzgerald, RJuneau, new Senate Majority Leader Dave Hansen, D-Oreen Bay, and the Senate chief clerk's staff, who didn't even bother to turn on the chamber's lights. "Now it's up to Gov. Walker to deal with it in the futnre," Hansen said, referring to Republican Gov.-elect Scott Walker. "We'll see what happens." Democratic Gov. Jim Doyle's administmtion announced last week it had completed negotiations on 17 contracts covering 39,000 state workers ranging from teachers to janitors. The deals included no pay increases, factored
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in 16 furlough days Doyle ordered state employees to take in the cunent state budget and called for 5 percent increases in health care contributions. The contracts have been a hot issue for Walker. He demanded Doyle's staff stop work on the agreements last month, saying they could hamstring him as he grapples with a $150 million deficit in the current fiscal year and a $3.3 billion shortfall in the next two-year budget. He wants state workers to make deeper concessions and even suggested he would consider abolishing state employee unions after he takes office. Democrats pushed on despite Walker's demands, saying he's not the governor yet. But no one realized that former Senate Majority Leader Russ Decker, D-Weston, wasn't on board. The first signs of dissension surfaced on Tuesday, when Assembly Democrats approved a lame-duck session to vote on the contracts. Decker would not follow suit, though, and offered no explanation why. Imtated members of his caucus planned to approve the session without his consent, but on Wednesday morning Decker relented and allowed the session to begin. He then took his place on the Legislature's employee relations committee and voted to approve the contracts and send them to both houses for a full vote. Everyone thought he was ready to move ahead. Assembly Democrats convened first Wednesday evening and barely got the contracts through, approving 16 of them by one vote and the last by three votes. The swing voter was Rep. Jeff Wood, who convinced a judge to release him fromjaillong enough to travel to Madison and vote. Wood, a Chippewa Falls independent who often sides with Democrats, is serving 60 days for impaired driving in Marathon County. A gaggle of reporters chased Wood through the Capitol after the vote, but he ducked into an office without saying anything to them. The Senate convened moments later, with Republicans complaining that Democrats were so desperate to tie Walker's hands that they pulled a lawmaker out of jail. Then, moments before the vote on the first contract, Decker got up and said he couldn't support any of the deals. He said Doyle should have had the contracts ready months ago and the next Legislature should deal with them. He and Sen. JeffPlale, D-Milwaukee, voted against the contract, creating a 16-16 tie with Republicans. A tie vote meant the contract failed. Emaged Democrats immediately recessed to a closed door meeting, stomping angrily out of the chamber. Decker seemed in good spirits on his way into the meeting, laughing when a trailing reporter joked he was getting more media attention than Wood. When Democrats remerged they had stripped Decker of his leadership post and handed it to Hansen. They returned to the floor and voted on the remaining 16 contracts, but Decker and Plale didn't change their minds and every one of the agreements failed, 16-16. Decker, a 20-year Senate veteran, sat in his chair as the votes went on, looking unaffected. He had nothing to lose; he lost his re-election bid in November and will be out of the Legislature in three weeks anyway. "I have no regrets," he said before he ducked into his office after the vote.

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Plale, meanwhile, also lost re-election in the September primary. He said Democrats should let the next Legislature deal with the contracts rather than try to ram them through. But all eyes were on Decker, whom Democrats painted as a traitor. Sen. Bob Jauch said he was "dumbfounded" by Decker's move. No one saw it coming, he said. Decker has never gotten along with Doyle, Jauch said, but it was selfish to use state workers to hurt the governor one last time. "It's really offensive," Jauch said. "No matter what his motive is, he's sticking it to a lot of middle class people." Wisconsin State Employees Union executive director Marty Beil wasn't so polite. He called Decker "a whore." Walker, meanwhile, declared victory, issuing a statement saying he'd won the flexibility he needed to balance the state budget.

From during Transition: High-speed rail funds scatter to other states

Wisconsin won't have to repay money already spent; California gets lion's share By Larry Sandler of the Journal Sentinel Dec. 9, 2010 IC1976) Comments Wisconsin will keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation announced Thursday. Governor-elect Scott Walker had vowed to kill the planned 11 0-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect John Kasich had issued a similar promise for a planned 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash. Now, almost all of the $1.2 billion from the two projects will be divided among other states. California is the big winner, with up to $624 million, followed by Florida, up to $342.3 million; Washington, up to $161.5 million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana. The announcement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may . not be on the hook for all of the $9 million or so it has already spent on the project, plus more than $5 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with these states to determine whether they have already spent money under their contracts that should be reimbursed," the announcement said. Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent. Wisconsin also was allowed to retain up to $2 million to fund unspecified upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover all of the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new

163

maintenance base for two newly purchased trains, two projects that would have been paid for out of the $810 million in federal funds. Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal announcement made no mention of withdrawing that money. No regrets In a meeting with reporters in Waukesha, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending. "That's the decision they've made and we're going to move forward," the Republican governor-elect said. Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80%to 90% of the taxpayer share. The Milwaukee-to-Madison line would have been an extension of the Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains.

It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond duLac, Neenah and Stevens Point.
Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin." "Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said. "Bogus arguments that this money can be used for roads have been proven Together with many others I have worked hard to move Wisconsin . . . false. into the future. I obviously am deeply saddened to see us take a major step backward." The state Department of Transportation had projected that rail-related jobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy. Lost opportunity "My congratulations to the workers in California and Florida. As a result of this decision, you will have a merry Christmas," Milwaukee Mayor Tom Barrett said at a news conference. "I'm just sad the same won't happen here in Wisconsin." The unsuccessful Democratic gubernatorial candidate said Wisconsin taxpayers still would pay $140 million for high-speed rail, applying this state's share of federal income taxes to the $8 billion in stimulus rail spending. But now this state won't get the $810 million return it otherwise would have received on its investment, and nearly all of the Wisconsin tax dollars will go elsewhere, Barrett said.

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Barrett joined Ald. Willie Wade in voicing concern about the future of the Taiga Inc. plant in Wade's north side district. The Spanish train manufacturer expects to have 125 workers on board by next year, but has said it could leave in 2012 if the high-speed rail line is canceled. Taiga has contracts to build two trains for the Hiawatha and two trains for Oregon. It had hoped to build two more trains for the Milwaukee-to-Madison line. Statements from other elected officials broke down along party lines. U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress." Madison Mayor Dave Cieslewicz said at a news conference that he tried numerous times to talk to Walker about the train line but got no response. "I was met with a blank wall," he said. Cieslewicz, a Democrat, said he was willing to have his city put money toward the operating cost of the train, and Dane County Board Chairman Scott McDonell said the county was willing, too. Cieslewicz said he had also asked .Barrett about a Milwaukee contribution. Barrett said Cieslewicz was making a good-faith effort to salvage the deal, but Walker wasn't interested. State Rep. Robin Vas (R-Rochester), an incoming co-chairman of the Legislature's budget-writing Joint Firtance Committee, welcomed the federal decision. He said it would allow the state to put more money into other areas that would have a more immediate impact on helping the economy. U.S. Rep. Gwen Moore, a Milwaukee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites." Countered state Rep. Steve Nass (R-Whitewater): "It's great news that Wisconsin taxpayers won't be fleeced for many decades to come by paying for a liberal pipe-dream in high-speed rail. Unfortunately, the $810 million will now be wasted on high-speed boondoggles in other states."

Chris Schrimpf
Communications Director Office of the Governor Press Office: 608-267-7303 Email: chris.schrimpj@wisconsin.gov

From: Dan Balz

Sent: Tuesday, January To: Schrimpf, Chris - GOV Subject: RE: Scott Walker
Chris, Thanks. If you have some background or clips on what he's been up do, that would be helpful. See you Saturday.
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Dan

From:

To:
Date: Subject:

Dan Balz 01/25/201 : RE: Scott Walker

Dan- I wanted to lock in 3 pm this Saturday for you to talk with Governor Walker; We were going to do it at RGA's offices 1747 Pennsylvania Avenue NW, Suite 250. In case you haven't been following what the Gov's been doing here, on the day he was sworn in he called a special session to "open wisconsin for business." He introduced 8 pieces of legislation, 4 of which have already passed. The ones that have passed include eliminating the state tax on HSAs, a major lawsuit reform package, creating a relocation tax credit, and expanding the economic development tax credit. The bills still outstanding include transforming the department of commerce into a public-private partnership, reforming the rules and regulation process, requiring a 2/3'ds majority to pass a tax increase, and a tax cut aimed at small businesses. The governor also created a commission to root out waste, fraud, and abuse in state government, and went on a bit of a media tour after the Illinois tax increase. And last, but not least the Packers are in the Super Bowl. Let me know if you have any questions or want any details on anything. Chris Schrimpf
Communications Director Office ofthe Governor Press Office: 608-267-7303 Email: chris.schrimp@wisconsin. gov

From: Dan Balz r~,.nc~t Sent: Thursday, January To: Schrimpf, Chris - GOV Subject: Re: Scott Walker

I think that will work. Sounds good, thanks. Dan

On Thu, Jan 20, 2011 at 2:45PM, Schrimpf, Chris- GOV <Chris.Schrimpf@wisconsin.gov> wrote:
Dan- Governor Walker is going to be in Washington on Saturday the 291" He has some free time on the calendar in the afternoon and we thought you might be interested in talking with him. I know it's a weekend, so you may be busy, but wanted to give you first dibs if you had any interest.
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Chris

Chris Schrimpf
Communications Director

Office of the Governor Press Office: 608-267-7303 Email: chris.schrimp@wisconsin. g-ov

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