Progressive Thinking

It's the beginning of the Christmas holiday season so Senator Kathleen Vinehout shares some of the special events that make western Wisconsin the place to enjoy holiday traditions and special events.

ALMA - “It’s the holidays,” the Buffalo County man told me. “It’s time to enjoy all we have here.” This farmer will be joining many others who take time to travel the Great River Road during the Holiday Season.

Communities along the Mississippi River are rolling out the welcome mat for holiday travelers. They want you to come and enjoy the season in the snow covered hills and historical river towns.

This month’s Midwest Living features a story about Christmas along the river. Writer Jeff Hoffert and photographer John Noltner explore Minnesota and Wisconsin towns along more than 100 miles of the river.

Alma, Pepin, Stockholm, Maiden Rock and Fountain City are mentioned in the magazine’s review of great places. But the article just touches the tip of what the Coulee and Chippewa Valley communities offer visitors. Many of the seasonal festivities begin Saturday and Sunday December 6th and 7th.

Your Wisconsin River trip begins at Prescott. The Friends of Freedom Park host the Holiday Bazaar at the Great River Road Visitors and Learning Center. The breathtakingly beautiful park is located high above the St. Croix River. Local artists date their tradition back to the 1930s with the founding of the Prescott Little Colony Art Group. Many artists and craftspeople will show and sell their art including the current artists of the Little Colony.

A little way down river, the Old Fashioned Christmas celebration in Maiden Rock offers carriage rides, food and good cheer. Demonstrations and workshops on knitting and textile crafts and a free ornament making workshop for children are just a few of the opportunities. Travel further down the road to the famous little village of Stockholm where Santa roams and fresh holiday pies are baking. Your horse drawn wagon awaits and around every corner fresh local food, art, crafts and other treasurers abound.

A few miles south, St. Nick hosts the Pepin’s Home Town Holiday. There are church bazaars, wagon rides and a cookie walk that will sell out by noon. Up the road, Wisconsin celebrates in Durand and Downsville at the galleries of Jean Accola and John Thomas.

In Alma you can tour historic homes and buildings decked out for the holidays, visit more than a dozen galleries and shops, a medieval museum and view the eagles while surrounded by warmth and art at Wings Over Alma.

The Christmas joy continues down river in Fountain City at what is boasted to be the largest Holiday Craft Fair in the area and The Taste of an Irish Christmas at the Monarch – the longest serving pub in Wisconsin.

Though not part of the 100 miles of Christmas, many other communities gather for their traditional holiday celebrations. Parade goers will bundle up and enjoy festivities in Trempealeau, Whitehall and Menomonie. Black River Falls and Eau Claire celebrate the delight and charm of holiday season this weekend with Old World Traditions in Black River Falls and sleigh rides, tree lighting and caroling along the confluence of the Chippewa and the Eau Claire Rivers in beautiful Eau Claire.

Opportunities to enjoy holiday music and festive theatre productions abound in Eau Claire, Stockholm and at the Old Main in Galesville. And you can take time to relax from the holiday bustle at one of the fantastic wineries in our area. They will offer wine tastings and special treats throughout the month of December.

Listed below is a small sampling of local events. Check area newspapers and local media outlets for other holiday events and festivals. Businesses and communities can post events and travelers can contact locals for more details at http://100milesofchristmas.org

December 3:

Alma Christmas House Walk (2:30pm-7:30pm)

December 5:

Whitehall Festival of Trees Parade

Pepin Hometown Holidays (also December 6 and 7)

Black River Falls Christkindl Festival (also December 6)

December 6:

Whitehall Santa Day and Craft Fair

Stockholm Country Christmas (10am-6pm)

Maiden Rock Old Fashioned Christmas

Prescott Holiday Bazaar at Freedom Park

Eau Claire Christmastime in the City (12:00 – 5:00pm)

Fountain City Holiday Craft Fair (9am-4pm) and Taste of Irish Christmas

Trempealeau Holiday Parade

December 6 – 13:

Wisconsin Celebrates in Durand and Downsville (10am-5pm)

December 11:

Menomonie Winterdaze Parade

Voters across the state decided to raise their property taxes in order to save their schools. The use of referenda for continuation of school operations is the result of less state aid coming into school districts.

MADISON - “I voted for the referendum,” the Mondovi woman told me. “I don’t have kids. I know it’s going to raise my property taxes. I don’t want to pay more, but I think we need to keep good schools.”

All across Wisconsin voters chose to raise property taxes in support of their schools by passing school referenda.

Ten years ago only 24% of school referenda passed. This year 68% passed. No year in the past 20 comes close to that percentage except 2012.

Following the 2011 historic cuts in state school aid, Wisconsin voters passed 53 of 77 school referenda in 2012. This year, voters faced 120 referenda and passed 82.

Why did voters across the state vote to raise their own property taxes?

Voters believe in the importance of strong local schools. People saw how schools consolidated; how school districts share services, staff, even football teams. Voters know fewer dollars mean fewer opportunities for children.

Voters see schools as the heart of their community and their schools require funding. Eight out of ten of the referenda passed this year provide for continued operations of the schools, including safety and maintenance. Some of these schools faced closure – for example elementary schools in Eleva and Strum. Others faced leaky roofs, potholes in parking lots, staff cuts, aging technology and increased class sizes.

Rural schools are especially hard hit, as the state’s funding formula doesn’t recognize the cost structure of many schools. When schools lose students, they lose state aid - which drops faster than the school’s ability to cut expenses.

School board members tell me it takes so much money just to open the doors and heat the building. State aid doesn’t account for these high fixed costs. The state pays on a per student basis, but more than 60% of schools have fewer students every year. Fewer students and less state aid means more costs pushed on property taxpayers.

At what point do we reach the limit of a community’s ability to pay increased property taxes? Soon, local people tell me. I’m reminded of a Pepin resident who rode a school bus to Madison to tell me that he loves his school but he can’t pay any more in property tax.

That is why Republican Governor Tommy Thompson invested in state support for schools by providing 2/3rds state funding for schools. As a result, property taxes dropped over 3% each year for two years in a row.

But state support as a percent of total school costs has eroded ever since.

Recently huge sums of state dollars were subtracted from the public school budget. Over the past four years, a cumulative one billion in state dollars were removed from the budget of local schools across the state. At the same time hundreds of millions in new dollars went to state subsidized private schools in one of the largest new state sponsored entitlements we’ve seen in years.

Private school parents tell me they don’t even like the idea of private schools getting large sums of taxpayer dollars – in some Milwaukee private schools 100% of their school budget is taxpayer money.

Behind the push for state subsidized private schools is a national movement made up of some very wealthy groups who see dollar signs when it comes to state subsidized private schools.

And caught holding the bag are folks in districts where referenda passed who all will be writing checks in the next few weeks to pay property taxes.

Great schools make for great communities. You can’t have one without the other. Folks know schools are the heart of the community. We see all those who attend a school function and realize in no other place do so many gather. Everyone benefits from an investment in education.

I heard of a school district with a failed referendum now considering cuts to science classes. Imagine the future doctor who doesn’t get the science she needs and the lost potential to cure your loved one’s ailment 15 years from now.

This is why we must invest in public schools now.

More than one out of ten Wisconsinites participates as a current or former state or local government employee.  Senator Kathleen Vinehout writes about the Wisconsin Retirement System and the State of Wisconsin Investment Board.

MADISON - “What’s going on with the state retirement system?” the retired woman asked me. She’d started a business but needed retirement income to keep things going. “Wisconsin’s system is the best funded in the country,” I told her. “But we’ve got to carefully watch what happens there.”

More than one out of ten Wisconsinites participates in the Wisconsin’s Retirement System (WRS) either as a current or former state or local government employee. Countless more family members depend on a well-run system to keep their aging relatives out of poverty.

As reported by the La Crosse Tribune in June of 2012, “Wisconsin is the only state in the nation to receive high marks for its public employee pension system.” The article commented on work of the Pew Center for States. Over the years Pew has released several reports analyzing states’ obligation to their employees. Many states have a large funding gap but not Wisconsin.

Much confusion exists as to why Wisconsin is so far ahead of other states. The La Crosse Tribune article reminds us, “The ‘solid performer’ ranking is for fiscal year 2010. That’s before Republican Gov. Scott Walker and the Legislature required public employees to contribute more to their pensions.” Some of the action to protect funds happened late in the last decade despite the recession.

The answer to why Wisconsin is so far ahead of other states in funding retirement lies in the unusual ‘self-righting’ WRS formula that adjusts based on investment returns. Another success factor is the strict discipline WRS follows in collecting contributions. A third factor is action taken in 2003 when the Governor and Legislature authorized General Fund bonds to eliminate the WRS unfunded liability.

Cost to taxpayers is kept low – according to a 2012 state report – “the portion of state and local government budgets allocated to retirement costs was only 1.26%”. Compare this to 2.9% nationally using US Census Bureau data.

Recently the Audit Committee, of which I am ranking minority member, held a public hearing reviewing the agency that manages money in the state’s retirement system. We learned details of an important but relatively unknown part of government that oversees investments known as the State of Wisconsin Investment Board or SWIB.

The Investment Board is to – by law - “manage investment assets with the care, skill, prudence, and diligence that a prudent person would exhibit acting in a similar capacity with similar resources, and for similar types of funds.” As of calendar year 2013, SWIB had an operating budget of $34.9 million and managed assets totaled $101.3 billion. This is by far the largest fund in any part of state government.

Because the retirement system is a ‘mature’ system – meaning the number of retirees is expected to be increasing – the money in the system is necessarily very large. WRS funds make up most of the fund SWIB manages. WRS funds total $93.7 billion.

The role of the Audit Committee in overseeing the activities of the Investment Board took on new meaning when the Governor and the Legislature reduced legislative oversight of SWIB. Those voting for the 2011 budget gave SWIB power to create staff positions and set its own budget. This is highly unusual.

At the recent hearing, members quizzed SWIB officials about rising operating and investment costs, increased risky and expensive investments and poorer performance as measured by one-year and three-year returns compared to nine other states’ pension investments.

Money going to salaries, bonuses and other expenses comes out of investment earnings. SWIB saw a 55.7% increase in operating expenses over a 4 year period (from 2009 to 2013). This increase was during the Great Recession when many public employees saw no raises, took unpaid furloughs, and retirees took deep cuts.

A large part of the increase in the operating budget was due to increases in bonuses – one totaled $660,400! Officials argued that keeping good employees requires an investment.

I’d argue investing in good employees includes helping them through retirement. Changes in the autonomy of the Investment Board makes it doubly important the public and the Legislature keep a close eye on the money invested and those doing the investing.

This week Senator Kathleen Vinehout writes about the upcoming deer hunt and changes made to deer hunting rules.

ALMA, WI - “What happens if I have a public permit because I’m not rich enough to afford a private one?” the deer hunter asked me. “I shoot a deer and it runs across the road. There’s my deer. It’s not dead. But I don’t have a private permit to go get it.”

“It just seems to me that the new rules are set up to force people to lease hunting land because there are more permits on private land than public land.”

Deer hunters taking to the woods in Wisconsin are facing a slew of new hunting rules. Hunters will experience the long-talked-about rules of the Texan ‘Deer Czar’ James Kroll.

In the DNR’s words, the new rules change the “season framework, management units and antlerless deer hunting permits”. DNR press releases tout their “robust public outreach” and the “Deer Trustee Report” guiding this year’s changes.

Gone are “management zones” setting deer overwinter population goals. Gone are free tags & $2 tags in highly populated or CWD areas; gone are landowner deer tags. Soon-to-be gone is registering your deer at the local bar or convenience store.

Deer management units – usually set by natural boundaries and major highways – are replaced by county borders and four major ‘management zones”. Urban areas have their own “metro units”. DNR is pilot testing deer registration on-line. Next year all registration will be on-line.

Rules about antlerless tags are the biggest rule changes affecting hunters. Everyone who purchases a license will receive one buck and one doe or youngster (antlerless) tag. Many hunters, including our family, hunt for food. Filling the freezer with many critters, especially with hamburger prices rising, can make a real difference in the food budget. Buying tags was easy, cheap and –when deer were plentiful – families could easily fill up freezers for the year.

Now those ‘extra tags’ are limited. First, you do not get an extra tag when you buy archery and then a gun license. The new deer-hunting license is not weapon specific – meaning you can shoot an antlerless deer in archery season - that’s it for the year.

Second, tags are more expensive (6 times more expensive), limited, and depend on whether you hunt a private or public area.

Many times Secretary Cathy Stepp repeated, “The rules have changed, but the tradition remains.” Hunters whom I’ve spoken with wonder if all we’ll have years from now is the fond memory of what used to be Wisconsin’s very equal deer hunting tradition. Many things are changing. New rules could hasten the loss of our populist deer hunt.

For years those who live in the Northwoods have hunted paper mill land. Now the companies don’t need the pulp and they are selling off the land. Hunters concerned about the deer rule changes reminded me, “open for public hunting” is different than “public land”. Mostly land up north is corporate owned but “open to the public”.

What happens when the land is sold?

Cash strapped counties up north are contributing to the problem. As one Eau Claire hunter whose family hunts up north told me, “Starve local government and things suffer. Local government looks for cash. The state isn’t giving them enough to keep up with the demand for services. So they clear-cut the county forest. The deer are driven out of the forest because the forest isn’t there anymore.”

Convenience store owners and hunters are also concerned about on-line registration. Storeowners are worried folks won’t stop for coffee and a doughnut if they register deer on-line. Hunters tell me: change the rules, make it hard to get public tags, expensive to hunt in private land and leave folks on their own to register a deer? Isn’t this asking for trouble?

Murmuring among hunters I’ve heard deals with the ‘artificial’ boundary between public and private. Deer don’t know who owns what. “If I shoot a deer on public land and he wanders across to private land, do I go get him and break the law, or let him suffer?” The general consensus was…. You can imagine.

Senator Kathleen Vinehout writes about a question she is often asked on the state’s budget – is it in the red or in the black. She explains the process by which the estimate is generated and has been for decades.

ALMA - Are we in the red or in the black? What’s the truth? What’s the reality?” The rural Trempealeau County woman was clearly frustrated.

“What do the figures really mean?” she asked me. “Is there a big hole? Or not? Is it all smoke and mirrors?”

Fresh off the rhetoric of the campaign trail, people are rightly confused about where the state is headed and what numbers are real. It’s hard to find someone who is not just outright frustrated at what they see as intentional distortions.

But when spring comes, lawmakers will be working hard trying to balance what is sure to be a $70 billion-plus spending plan. Somehow, they will have to balance the books.

How can we tell what’s real?

Let us begin with hard cash: money coming into state coffers. In a two-year budget, what’s real – money actually coming in – can be found in the tax returns of the first year. The state’s budget year runs July 1 through June 30. It takes a while to tally things and pay year-end bills. So numbers change a bit while accounts are tallied and then audited.

Preliminary tax returns show that individual income tax collection is down by about 2½% and corporate income tax is down by over 9%. Individual income tax makes up over half of the general fund. This puts the actual total down about 2% over the budget estimate.

A sharp drop in corporate income tax collection is important. There are different theories why. Perhaps companies are not making money; or too many dollars were given away in corporate tax breaks.

Just one tax break – the manufacturing and ag tax credit – cost taxpayers almost half the amount by which corporate income tax collection dropped. (Tax breaks passed in the last four years total over 50 separate items and will cost taxpayers an estimated $1.1 billion next fiscal year.)

So we know things did not go well in the last fiscal year. Will they get better?

This depends on with whom you talk – but let’s take the least politically minded entity in the state budget process – the nonpartisan Legislative Fiscal Bureau (LFB).

When allowed to do the math without any partisan driven assumptions – and this is important – the LFB estimates Wisconsin will begin the next budget process in the red by about $1.766 billion. You may have heard this number rounded up to $1.8 billion.

This is how much money is needed to fund the commitments in the coming budget.

The number is an estimate – as all budget numbers are estimates. But it is based on the best nonpartisan assumptions going forward and follows the conventions used in estimating past budget ‘starting points.’

In the final weeks of the campaign there were several other numbers tossed around. One used by the Governor was that Wisconsin was $535 million in the black.

The Governor used a memo prepared by LFB to buttress his claim. In this memo the nonpartisan LFB was directed by Finance Co-Chair John Nygren to make several assumptions. Namely, “let us assume Wisconsin brings in more money and spends less.” Not surprisingly, the numbers were better.

Politifact in the Milwaukee Journal Sentinel analyzed the ‘$535 million in the black’ and rated it False.

Other factors loom large in balancing the next state budget. Not included in this analysis is the mismatch between money coming in for roads and bridges and money going out.

The Governor and lawmakers voting for the last budget put nearly a billion in new spending on the state’s credit card. The transportation fund cannot support this level of borrowing.

Balancing the next budget will be a challenge. Needs are great. Tax money given away in the form of tax breaks cannot be spent on vital services.

To begin an honest budget discussion, let’s start with the best information and agree on the facts. To paraphrase Ambassador and former US Senator Daniel Patrick Moynihan: You can have your own opinion but not your own set of facts.