Progressive Thinking

Assembly Bill 554 does away with the mandatory referendum now required prior to the sale of public water and sewer systems to private companies. It comes at the request of the out of state company Aqua America, which has a poor record of providing services in several other states.

MADISON - “Keep private water companies OUT of Wisconsin,” Glory Adams of Eau Claire wrote. She wants to stop a bill that would allow cities to sell water and sewer systems to out-of-state companies without even a community vote.

Assembly Bill 554, introduced by Rep. Tyler August (R - Lake Geneva), would do away with the mandatory citizen referendum prior to the sale of public water and sewer utilities. It would also eliminate the ban on selling to out-of-state companies.

The bill is moving quickly. It passed the full Assembly and a Senate committee in a few weeks. All that’s needed for final passage is a full Senate vote.

In a follow-up conversation, Glory said AB 554 scares her. “Look at the company that wants to get in. Their record is abysmal.”

I learned Representative Tyler August introduced the bill at the request of a company called Aqua America that does have an “abysmal” record.

Lee Bergquist of the Milwaukee Journal Sentinel reported that Representative August wrote the bill after Aqua America approached him. Mr. Berquist reported the company met first with the Public Service Commission (PSC) and was told that 161 Wisconsin public utilities had operating losses in 2014. Presumably, these financially strapped cities might make good Aqua America customers.

Aqua America has a long list of problems. Bruce Murphy of Urban Milwaukee recently wrote, “There has been 170 instances since 2005 where Aqua North Carolina did not comply with state and federal laws regarding contamination levels, and customers there have complained about poor water quality, dry wells, high rates and subpar service.”

Mr. Murphy described problems in Texas where customers were required to boil water; Pennsylvania where customers saw rates rise from $153 to $707; Florida where Aqua charged residents twice as much as neighboring local water utilities. Serious problems in Florida included many violations and consumer complaints that water “was smelly, discolored, contaminated and undrinkable.”

Senator Lasee offered arguments for the bill in a public hearing: “We want to give our local partners one more tool in the toolbox to budget prudently, protect taxpayers, and take advantage of the open market principles which are driving down tax and energy costs around the nation. We can realize the same benefits of the free market innovation here in Wisconsin.”

I found no evidence the sale of a public water utility to a private company lowered rates or provided higher quality service.

“I’m really concerned people will think this won’t happen in Wisconsin,” Glory Adams told me. “The problem is, they’ve taken so much away from the DNR and they’ve changed so many rules.”

She continued, “I get really concerned the PSC would be voting to approve these sales. Look at the members of the PSC, they are all appointed by the governor.”

The PSC does play a critical role in the sale of public utilities. Under current law, a city that wanted to sell its water or sewer utility would pass a resolution or adopt an ordinance and send a proposal to the PSC. If the PSC determined the sale was in the best interest of the municipality and its people, they would set a price and other terms of the sale. A majority of citizens in a referendum must then approve the sale.

As amended, AB 554 would allow (not require) a citizen vote only before action by the PSC and only if 10% of the voting population signs a petition asking for a vote. These strange rules set up a situation ripe for shenanigans by local officials.

Senator Dave Hanson, in a recent Green Bay press conference, described what happens after a community sells off its water.

“As the residents in communities where Aqua takes over their water soon find out, Aqua and corporations like them are not responsive to the people they serve. They are not accountable to anyone. They make their profits by cutting staff, cutting corners and raising rates—knowing full well that their “customers” have nowhere else to turn to get their water.”

Selling off water utilities to unaccountable out-of-state companies is a bad idea. The people own water and sewer utilities for a reason. Clean water and functioning sewer is essential to life. Let’s stop this bill now.

Sen. Kathleen Vinehout writes about Ag Day at the Capitol. Farmers from across the state came to the Capitol to share ideas and perspective on what needs to be done to benefit agriculture and keep local communities thriving, not on partisan politics.

MADISON - “Just get it done!” The farmer was referring to a bill to change rules on high capacity wells. I listened. The chances of passing the bill are dim. Solving groundwater problems in Wisconsin is complex.

Farmers from all over our Senate District recently came to visit me as part of Ag Day at the Capitol. They came to share thoughts, seek answers and spur me to action.

The farmers wanted a bill to protect high capacity wells already drilled. However “just get it done” is not that easy.

Many different problems related to groundwater exist around the state.

Legislative action in recent years compounded the problems. Groundwater monitoring data around parts of the state were inadequate. In his budget, the governor instituted a policy to forbid DNR scientists from considering the cumulative effects of high cap wells. This means wells were permitted that maybe should not have been allowed. Recent court decisions made the problem even more complex.

Progress on other issues looked more positive. For example, legislation to make it easier for farmers to bring produce to food pantries would soon pass. One farmer asked me about legislation to fix definitions of farm equipment (known as Implements of Husbandry). He said, “Even with the new bill, things won’t be fixed.”

I asked for details so I could work with the author of the bill.

These farmers knew the system. They realized progress was slow and sometimes involved several different bills over several years.

“What are your thoughts on fixing the transportation fund?” one farmer asked. Others chimed in about the poor state of roads. These farmers played several roles in their community and understood things were related. Good roads and good schools are necessary to sustain a thriving community. That means we need to consider tax increases and spend state money on local needs.

Several of the farmers served on the town board. They understood when other local officials were forced to turn blacktop roads back into gravel due to a lack of funds for road improvement. “Gravel is cheaper to maintain.”

I explained the transportation fund spends more money than it takes in, which anyone knows is unsustainable. We talked about the choices I made to put together my alternative transportation budget. I balanced the budget without historic borrowing called for by the governor. It’s a matter of spending less and raising more money.

Years ago lawmakers voted to remove the ‘indexing’ (fluctuating with inflation) of the gas tax. If indexing were in place, the tax would be about six cents higher. I support bringing back indexing and raising the tax by a nickel. Farmers agreed. “No one would notice a five-cent increase with gas at $1.65 a gallon.”

A farmer asked “What about dyed fuel? Shouldn’t that be taxed?” Dyed fuel, which is not currently taxed, is literally dyed with coloring to distinguish it from taxed fuel. Use of the fuel is limited.

“What about tractor registration?” another farmer asked. “Tractors drive on the roads, they should help pay for them.” Consensus in the group was good roads are necessary to do business and everyone should pay their fair share.

A young man asked a pointed question. “What are you going to do about rural schools?” He changed schools just so he could gain access to the agriculture program.

I explained that in my alternative budget I laid out a different way to balance the budget and fix rural schools, which included getting rid of some tax loopholes.

In recent years, lawmakers in the majority and the governor gave away millions in tax credits. The consequence is not enough revenue to afford major changes needed to fix rural schools.

When the state does not pay its share for schools, local people pay more through property taxes. Referenda are passed just to keep schools open.

As folks left, a farmer said he was headed right home to get to work on a school referendum. He also served as chair of his local school board.

These farmers play many roles in their communities. They want to solve problems. Their earnestness, honesty and complete lack of partisanship help them focus on getting the job done.

During the Senate debate to pass the bill dismantling our 100-year-old civil service system, senators told of secret meetings held with state workers where supervisors intimidated employees and forbid them to talk with their elected representatives. A LAB Hotline established is valuable in cases of intimidation.

MADISON - One by one Senators stood on the Senate floor and told of secret meetings held with state workers. Supervisors had forbid employees to talk with their elected representatives. Employees felt intimidated. They wanted to improve state services but were afraid of losing their jobs if they raised questions of mismanagement.

Late in the evening, the Senate passed a bill to dismantle our over 100-year-old civil service system put in place by Governor La Follette to ensure that ‘the best shall serve the state’.

The dismantling of protections for state service workers seemed already done as I listened to debate on AB 373. Prior to the vote, I heard some of the most disturbing testimony I’ve ever heard on the Senate floor. Testimony shared by Senators who spoke directly to intimidated workers with knowledge of mismanagement and abuse.

Corrections workers told a Senator about an inmate strangling a psychiatrist such that the doctor would probably never work again. State workers forced to work so much overtime, it stressed their marriages because workers were never home. Employees were afraid to speak up about wrong doings and dangerous situations. Workers were fearful supervisors would spy on them if they participated in meetings with their own elected representatives.

The climax of the evening came with the testimony of Senator Bewley from Ashland. She described the chilling effect employee intimidation had on her ability to represent her constituent.

“…As I was sitting here and I was thinking of sharing a story with the body, Mr. President about a constituent who told me please don’t tell anybody. And I was going to say a little bit about his circumstances but I realized I better keep my mouth shut in this body, with my colleagues that I’m supposed to trust, because if I say too much he could lose his job. In front of my own colleagues, we are setting up an atmosphere where I worry about my constituent’s job lest someone here find out who he is and get him fired.

…This is not the state we want to be in. I do not want to be afraid of discussing the concerns of my constituents with my colleagues for fear that someone will overhear something, have too much information, find out who that employee was and have him lose his job. That is what we are setting up. And, this is what you are going to have to defend to your own constituents after you take this vote today”.

Following the night of disturbing debate, I spoke with State Auditor Joe Chrisman. I asked what he could offer to employees who were too afraid to confront state mismanagement. He offered the Fraud, Waste, and Mismanagement Hotline, staffed by the nonpartisan Legislative Audit Bureau (LAB), which investigate reports made to its Hotline.

“There are so many protections put in place that protect those who call the hotline,” Mr. Chrisman told me. Callers to the hotline are provided some of the strongest whistle-blower protections in state law.

“Statutes require the Bureau to maintain the confidentiality of the identity of the caller at all times,” Mr. Chrisman said. “This means more than just the name of the caller.” Protections may include keeping the person’s job title, position, gender, agency, institution, or campus confidential.

Anyone can reach the hotline at 1-877-FRAUD-17 (1-877-372-8317). During business hours, trained staff answers hotline calls.

People can call during off hours and leave a voice message. They can complete a web-based form, or they can print off the form, fill it out and send it by snail mail.

They can leave information without leaving their name. However, Mr. Chrisman cautions, in doing so it is more challenging for auditors to follow-up. “Sometimes all we need are answers to two questions to proceed in an investigation.”

Even if the problem identified by the caller becomes part of an investigative report, state law requires the caller, including any identifiable details, still be protected.

As we discussed the problems in key agencies like Corrections, Mr. Chrisman said, “Tools exist at the Bureau for these kinds of reasons.” I encourage people to contact the LAB Hotline to report confidentially any concerns with state government.

MADISON - Governor Walker and his GOP leaders are trying to fix what they broke over the last several years.

While the Governor talks about helping make college affordable and the importance of education, his feel good proposals do not undo the damage to higher education and our public schools.” Vinehout said.

According to the non-partisan Legislative Fiscal Bureau, in the last three budgets, Walker and legislative Republicans made over $1 billion in cumulative cuts to public schools and over $400 million in cumulative cuts to University of Wisconsin.

I am glad they are at least talking about fixing what’s broken. But it would have been much better not to break it in the first place.

This week as we prepare for Governor Walker’s State of the State address, Sen. Vinehout writes about the State of our State compared to Minnesota. Our neighbor to the west leads states in many rankings and Wisconsin lawmakers would be wise to follow Minnesota’s lead.

MADISON - “Yesterday, ahead of President Obama’s final State of the Union Address, Politico released its third annual analysis on ‘The States of the Union.’ For the third straight year, Politico ranked Minnesota one of the two strongest states in the nation,” touted the Office of Minnesota Governor Mark Dayton. Wisconsin ranked 11th moving up from 17th last year in Politico’s ranking.

Our 31st Senate District covers over a third of the 300-mile border between Minnesota and Wisconsin. Just how do we stack up against our western neighbor?

Differences between the two states have developed over decades and reflect policies that may have been put in place years ago. Public policy has an impact on the state of our states. I do not imply by this comparison that any one person or group is responsible for Wisconsin’s poor performance compared to Minnesota.

Big differences in the two states are related to the economy, education, state financial health and corrections.

A recent report by the Wisconsin Taxpayers Alliance compared the two states and mentioned the economic success of the Twin Cities over Milwaukee. Prosperity may be found in Minnesota’s revenue sharing policies, begun in the early 1970’s, which required communities in the Twin Cities to share growth in the commercial and industrial tax base.

Minnesota’s fairness and equality in taxes seems to be a more effective policy for growth than big tax breaks for certain types of industries like Wisconsin’s very expensive manufacturing tax credit.

Minnesota’s strong investment in education also contributes to the health of the state’s economy. With a healthy tax base and a financially sound budget, Minnesota committed to investments in the future through education.

In the early 70’s, Minnesota emphasized community-based treatment for mental health and drug dependency. The result is that, even though Minnesota’s crime rate is slightly higher than Wisconsin’s, Minnesota has less than half the number of prisoners.

An estimated three out of every four prisoners in Wisconsin suffers from alcohol or drug problems and a third have severe mental illness. We would be wise to look to our western neighbor for solutions to the high cost of addictions and subsequent incarceration.

Comparisons are used for many purposes and source matters. Ideological groups push certain policies that may have little evidence of effectiveness. For example, in researching for this column, I found the 2015 Heartland Institute’s “Welfare Reform Report Card” which ranked Wisconsin third for “welfare reform policies” but worst – 50th out of 50 states – for progress in easing poverty. Clearly the policies advocated by the group haven’t led to improved prosperity for the poorest among us.

I provide this overview as a challenge to civic-minded Wisconsinites to carefully consider the policy direction needed for 2016 and beyond. Our state would do so much better if leaders explored ideas that worked rather than pushing an ideological agenda.

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(All of my sources are available upon request.)