Progressive Thinking

Sen. Kathleen Vinehout writes about how stagnant shared revenue payments cause problems for local units of government as they try to address increasing costs.

ALMA, WI - “I just hope the county doesn’t cut the budget,” a local judge told me. We were discussing how effectiveness of his alternative treatment court program and how much he needed money to keep the program operating.

Across the State, local governments – counties, cities, village and towns – are preparing budgets for their 2019 operations. A major source of their income is shared revenue from the state.

“Shared revenue” has been a fixture in Wisconsin since 1911. The state sends money to local units of government at the end of July and again in mid-November. These payments help offset the property taxes folks pay to operate local government.

The system of sharing of revenue began as a way to return a portion of the new state income tax to local governments in order to offset the property tax exemptions that were enacted at that time. The state sent the money back to locals based on how much residents of each city, village, town or county paid into the state.

At first, ninety percent of the income taxes collected were sent back to the local governments from which they came. Called “return to origin,” the payments were higher to wealthier areas as those residents paid more in income taxes on their higher incomes.

During the 1970s, the system was changed to match local need. Lawmakers created a complex formula that included population, property values and local revenue efforts. Communities that had a utility, which didn’t pay property taxes, received additional payments. The policy objective was to provide a minimum amount of money from the state even if a community had many costs and low property values.

Changes over the years ‘tweaked’ the formula. Automatic increases were eliminated, and even though the formula was still law it wasn’t followed. During the 2008-2010 recession shared revenue was cut by three and one-half percent.

In Governor Walker’s first budget, funding was cut by over nine percent. Since 2012, annual shared revenue aid to local government has remained unchanged.

In addition to not increasing shared revenue payments, the state asked more of local government in the form of mandates. Many of these mandates were unfunded, leaving local governments with more to do without additional resources.

State law limits local governments’ ability to raise revenue from property taxes by imposing levy caps. The combination of levy caps and decreased shared revenue from the state leaves local officials asking ‘What do we cut?’

On this one-way street where the state makes the rules, limits what local government can spend, and doesn’t share increasing revenue, local folks are stuck paying more of the cost and have few options to get extra money.

Many local governments have spent their reserves and are forced to consider borrowing money to cover needed improvements or unexpected costs, like repairing flood damage.

As discretionary programs are eliminated, more of local government budgets are taken up by public safety. Police and fire protection costs are increasing. But neither the levy cap nor the state shared revenue payments cover the increase.

Local officials are forced to choose whether to cut: public safety, repairing the roads, and/or community mental health and drug addiction programs.

Local officials are looking at increasing deficits in coming years. Next year state budget writers must address the shortfall or residents may face dire cuts in local programs.

In a memo I requested from the nonpartisan Legislative Fiscal Bureau, shared revenue would need to increase by about 30% just to keep up with inflation since 2004. That would require an investment of $415 million in the next state budget.

That sum compares to the estimated $464 million payment promised by the Governor to Foxconn for building a factory in Racine.

As local governments cut their programs this fall, we will be reminded that we can’t spend the same dollar twice. What goes to Foxconn won’t be available for shared revenue.

Local governments faced with decreased shared revenue and Wisconsin Medicaid payments are hard pressed to combat addiction with community-based treatment alternatives instead of incarceration. Sen. Kathleen Vinehout describes the challenges and offers solutions.

ALMA, WI - “Let me tell you a story,” the county supervisor said.

A man I’ll call Frank was picked up for drunk driving. Frank faced a felony charge. Frank was sent by our local judge to a county-based program funded with a grant. Over the years, the county supervisor helped the county get funding from the Treatment Alternatives and Diversion (TAD) program.

“The drug counsellor asked the man why he drank a quart of vodka a day,” the supervisor told me. The man said, “My teeth hurt.”

Counsellors worked to get Frank BadgerCare, and medical care. They got him to a dentist, who pulled all his teeth. Frank spent two months on antibiotics. He’s now sober and able to do some fishing – something he loves and hadn’t done in years. The supervisor thanked me for my help, saying the TAD program saved money and saved lives.

In county court rooms, judges have alternatives to sending those suffering from mental health and addiction issues to prison. But not all judges and counties are able to use this life changing program. In the current budget, the state funds only a tenth of what is needed to expand TAD statewide. In the alternative I wrote to the Governor’s budget, I showed how to pay for fully expanding the program with the same state dollars by rearranging priorities.

Folks like Frank need treatment, not prison. Our state mental health system is not adequate. As a consequence, law enforcement and prison costs are increasing, as lives are wasted.

For example, the new Secretary of Corrections recently told the Audit Committee seventy percent of Wisconsin inmates suffer from addiction and over eighty percent of women in prison have mental health conditions.

Minnesota has a very different approach to mental health and addiction recovery. Minnesota is called by some the Land of Ten Thousand Treatment Centers. Years ago, the state invested in a community-based mental health and addiction recovery system. Now, with a similar crime rate and similar population, our neighbor to the west has less than half its residents in prison compared to Wisconsin.

The key to helping those with addiction and mental health challenges are community-based resources. For two decades, the state cut or level funded local governments in the “shared revenue” counties and cities received. In addition to facing decreased funding, state officials piled on more requirements with less help.

When the state adds more requirements but no more money, locals describe the combined effect of less money and spending caps as “the vise squeezing counties.”

“Relationships work when they share purpose and responsibility,” a local county health official recently wrote. “The State-County partnership delivering health and human services to Wisconsin residents falls short on many fronts.”

For example, he said, mental health services are coordinated through a system called Comprehensive Community Services. Like the help Frank received, many mental health and addiction recovery services are paid for through Medicaid (MA).

“MA revenues are billed services vulnerable to disallowances [non-payment],” the local official said. “When this occurs, the county provider is responsible for paying funds back.” With mental health care “the State has taken back hundreds of thousands of dollars but refused to provide guidance to counties … the State provides little technical assistance.”

We can and must do better. Wisconsin must treat local governments like the full partners they are in delivering needed mental health services. We must invest in expanding services as the state works with locals to find the best path forward.

To address the struggle families face across our state, Wisconsin must take the Medicaid expansion money from the feds, cover 79,000 additional people with healthcare and use the freed-up state dollars - almost $300 million estimated for this budget – to make a down payment on a community-based mental health and addiction recovery system.

Locals should be at the table when decisions are made. Flexibility is important. One-size does not fit all. Incentivizing local creativity would improve service delivery.

People are suffering. But there is hope. Comprehensive treatment can be available – just like in Minnesota. Wisconsin can become the Land of Fifteen-Thousand Treatment Centers. Now is the time to act to solve the problems of mental health and addiction. This saves lives and saves money.

Candidate for Governor Kathleen Vinehout argues the state should enact her Badger Health Benefit Marketplace legislation after state and federal actions impact health insurance premiums for Wisconsinites.

MADISON - Recent news on the health front should give Wisconsinites pause when considering the direction our state is headed related to affordable health coverage.

Earlier this year, the Governor signed Special Session bills into law that limit access to needed healthcare. For example, one provision of the new law will essentially require cash strapped farmers to sell their cows or essential farm equipment to obtain BadgerCare. Another example is a provision that will set in place outside work requirements for caregivers (who already have a full-time, non-paying job) but rely on BadgerCare.

For the state to enforce these new provisions, the federal government, through a waiver process, must grant approval. The state filed its waiver request, which is pending approval by the Trump administration. However, a recent federal court ruling stopped similar plans in Kentucky. The legal wrangling leaves uncertainty for the Governor who hopes to save costs by eliminating BadgerCare coverage for some Wisconsinites.

Those who may lose BadgerCare cannot afford commercial policies. Folks without insurance often delay needed care, end up sicker, and seek care in the Emergency Room. Those without insurance frequently cannot pay for care even though hospitals are required to provide it. To make ends meet, hospitals raise rates for everyone else. Thus, more uninsured folks mean higher costs for all of us.

A recent poll, reported last week in The Hill, found 49% of those surveyed said it is more difficult to afford health insurance premiums, doctor visits and prescription drugs this year, compared to last year. In addition, almost 80% of respondents believe the government should be doing more to make health care more affordable.

However, action at the federal level is making health care less affordable.

The nonpartisan Congressional Budget Office (CBO) pegged the GOP repeal of Affordable Care Act (ACA) individual mandate as accounting for an average ten-percent rise in insurance premiums next year.

The Trump administration abruptly stopped payments under the ACA to help even-out costs faced by health plans. The payments are made to plans that incur high costs from unusually sick patients. The idea behind the policy is similar to the basic idea of insurance – sharing the costs by sharing the risk. The interruption of “risk adjustment” funds brings higher premiums as some health plans face higher than expected medical bills.

Federal officials also announced they were cutting funds for navigators, or outreach nonprofits that help people sign up for health coverage under the ACA. Less money for this important work means less people covered – and fewer people in the pool results in higher costs for the rest of us.

Last month the Trump administration announced it would stop defending the ACA from a constitutional challenge that could affect protections for people with pre-existing conditions. This decision has significant implications for folks in our state. Kaiser Health News reported last week that residents in GOP-led states opposed to the ACA have the most to lose if pre-existing conditions are not protected.

Wisconsin and Texas led the list of twenty governors and state attorneys general that filed a challenge to the constitutionality of the ACA in court last February.

The new Kaiser Family Foundation study estimated at least one in four Wisconsinites under age 65 have one or more pre-existing conditions that could cause them to be denied health coverage, or have a condition excluded from coverage or would be forced to pay exorbitant rates to keep coverage. These conditions could include anything from acne to migraines to pregnancy.

Just living to age sixty means one has a pre-existing condition. Not surprisingly, the study reported data from 2008, which was prior to enactment of the ACA, those of ages 60-64 were most likely to experience insurance denials based on pre-existing conditions.

One answer to rising health costs is to create our own health care marketplace. I authored the Badger Health Benefit Marketplace and introduced it as Senate Bill 359. This uniquely Wisconsin marketplace provides lower cost insurance to owners and employees of small businesses and those who buy insurance on their own.

While Wisconsin rates for individual insurance went up an average of 38% in 2018 over 2017, a system similar in Minnesota dropped costs an average of ten-percent in 2018. Minnesota’s costs for an average low-cost silver plan are expected to drop another 11% in 2019.

Our state must do better at creating policy to provide affordable health care for all.

Sen. Kathleen Vinehout writes about the importance of honoring Wisconsin veterans by providing quality care at our state veterans’ homes and the work the LAB did to investigate staffing problems and maintenance issues at the King Veteran home in Waupaca.

ALMA, WI - “How are things at our veterans’ homes?” the Korean War vet asked me at a forum on veterans’ issues. The man was particularly concerned about what he heard about care at our Veterans Homes.

Veterans issues are personal for so many, including my family. Both my parents were veterans. My nephew serves now. My dad was a medic who flew rescue missions into Korea. Like so many, his experiences haunted him. He never talked about the trauma until he was dying.

On July 27th, we will celebrate the 65th anniversary of Korean War Armistice Day. Wisconsin is required by law to issue a proclamation for the observation of this day, asking the public to contemplate the sacrifices members of the U.S. Armed Forces made during the Korean War.

This commemoration, and a similar recognition for Vietnam Veterans Day on March 29th, exists because of the efforts of Alan Wright and many others who worked with me in 2009 to establish these important commemorations.

Veterans served us and it’s our obligation to serve them. When we strive to provide the best service to our veterans, we show our deep gratitude for their service. Correcting the deficits at our state veterans’ homes is a moral imperative in our service to veterans.

Wisconsin has three veterans’ homes: King in Waupaca County, Union Grove in Racine County and Chippewa Falls. Through these homes and other programs, Wisconsin made a commitment to care for our veterans. State officials are not keeping our promise.

Several audits, conducted by the nonpartisan Legislative Audit Bureau (LAB), including one released in the past year, provide details on what must be done to improve care at our homes, especially at King.

Our veterans are more in need. For example, over nine years of the audit study, there was a 28% increase in the number of residents at King with dementia and a 262% increase in the residents diagnosed with PTSD. Staffing, although increased a few years ago, hasn’t kept up with the increased needs of seriously ill veterans. Neither has staff training. Vacant positions are increasing. Mandatory overtime may be causing unsafe conditions.

Regular staff shortages pulled caregivers to other areas, leaving veterans without the consistent care they needed.

LAB conducted a survey of staff. Among those who participated, eighty-six percent of staff said they “disagreed” or “strongly disagreed” that King was adequately staffed; three-quarters of staff reported morale as being “poor” or “very poor.” Almost forty percent said they planned to look for another job in the next six months.

These results indicate very serious management problems. At the audit committee hearing, members pleaded with leaders to take these issues seriously. I left the hearing unconvinced changes would happen.

Auditors looked at concerns related to deteriorating facilities and found the Department of Veterans Affairs did not develop a systematic process for comprehensively identifying and assessing building projects. Auditors detailed a long list of needed projects including several related to potential resident safety.

Auditors documented money transferred from King to other programs. A lack of funds likely led to delayed maintenance, poor salaries and staff vacancies.

Especially serious was the way potential abuse, neglect and misappropriation of residents’ property were handled by management. In the LAB survey, thirty-seven respondents said they experienced negative consequences when they reported neglect, abuse, or misappropriation of property. Over one-third of respondents who witnessed abuse, neglect or misappropriation of property did not “always” report it – likely because they were afraid of negative consequences.

State and federal laws exist to protect our residents. Wisconsin must protect veterans and their families by protecting workers from retaliation when they report problems. We must better train managers so they understand the legal and moral problems of retaliating against workers who speak up. We must discipline and remove managers who retaliate.

To fix our veterans’ institutions, officials must stop treating King like a “cash cow” and siphoning money away from the home. Instead, wages should be raised, more staff should be hired, and facilities should be repaired.

We must engage staff, residents, and family members in finding solutions, by creating councils or regular, decision-making bodies that involve everyone in problem solving.

We face solvable problems. As stewards of our veterans’ sacrifices we must fix them.

The Wisconsin Budget Project recently provided insight into state school aid, which has not been restored to the funding level in 2011 when Gov. Walker made historic cuts. With schools struggling with less aid and increasing needs, resolving funding issues and the school funding formula are a priority.

BIRCHWOOD, WI - How can a rural school meet critical needs when money for schools is less than adequate?

“A school board member went door-to-door asking for support,” Birchwood Superintendent Diane Johnson said to members of the Blue Ribbon Commission on School Funding. “He raised $3,000 to get the front doors locked.” The money raised was for purchase of a long-needed intercom system at the front door. “The doors were not locked during the day until this month,” Dr. Johnson told Commission members in May.

Dr. Johnson went on to say next would come an effort to buy key fobs for the staff and re-key the doors. The school didn’t lock the doors or change the locks for over 50 years. With a population of less than 500 in Birchwood, “everyone has a key to the school.”

School funding is not adequate for students in many communities across our state. Mounting mental health and school safety issues are just some of the problems facing superintendents, school boards and bookkeepers like Birchwood’s Bonita Basty.

Ten percent of Birchwood’s tight school budget must be transferred to cover required costs for students with special needs, Ms. Basty explained. In addition, the small district is depleting its reserve funds to cover increasing costs for students with special needs.

The state pays only about a quarter of the costs for special education despite the legal requirement that school districts must provide these services. Both federal and state special education reimbursement dropped over the years, while the needs of students grew.

Across the state, the Commission heard testimony regarding impossible trade-offs school districts are forced to make between basic building maintenance, school safety, achievement, accountability and student needs.

A new study released by the Wisconsin Budget Project, an initiative of the nonpartisan advocacy group Kids Forward, provided insight into why Wisconsin schools face such difficult challenges and what options exist to make changes in budget priorities.

“In 2019, the state will invest less in public schools than it did in 2011, something that has been true of every year in between as well. In 2019, Wisconsin school districts will receive $153 million less in state aid than in 2011 in inflation-adjusted dollars, or 2.6% less,” noted the Budget Project.

The series of cuts made to schools over the years add up. The Budget Project reported that between 2012 and 2019, Wisconsin spent a cumulative $3.5 billion dollars less in state aid to schools than if the state had retained the 2011 funding level.

Looking at where dollars moved in Wisconsin’s budget, the Budget Project reported the share of tax dollars used for schools dropped since 2011. In that year, Wisconsin spent almost forty percent of tax revenue on school districts. By 2019, this percent is estimated to drop to 32 percent.

The report provided some answers to the question, if WI didn’t spend money on schools, where did the money go? Since 2011, majority lawmakers enacted more than 100 tax changes.

“… some of which are extremely slanted in favor of the wealthy and well connected. One example is the Manufacturing and Agriculture Credit which in 2017 gave 11 filers who each earned over $30 million an average estimated tax cut of $2 million each, according to figures from the Legislative Fiscal Bureau. The Manufacturing and Agriculture Credit will reduce state revenue by an estimated $324 million in 2019.

“The combined cost of the new tax cuts has climbed each year, starting from a low of $57 million in 2012, and reaching $2 billion in 2019 in inflation-adjusted dollars. The combined total cost of the tax cuts adds up to $8.7 billion over eight years.”

Wisconsin needs to increase funding for schools. One place to go to find dollars without increasing total spending, is the expensive corporate cash subsidies and tax breaks given out in the past eight years.

However, the state also needs to change how money is distributed to districts. We need a new funding formula based on student needs. Much public testimony given to the Commission detailed greater student needs because of having parents suffering from addiction, and students with challenges related to mental illness and trauma. Additionally, there are increasing needs and less state support for students in poverty, with special needs, and English learners.

The Wisconsin Budget Project study makes it clear – money is available if lawmakers are willing to change priorities.

Wisconsin farmers are facing challenges starting the new industrial hemp pilot program. Now confidentiality roadblocks are generating a new organization to connect growers, processors, retailers and consumers to establish and promote a dynamic hemp market.

ALMA, WI - “I, as a licensed hemp grower, cannot get a list of hemp processors in Wisconsin,” wrote Butch Mondeau. He stressed the problem is "a state road block.”

Mr. Mondeau is an Eau Claire County hemp farmer. He was planning to sell his crop to the company that supplied seeds but recently learned the company will only buy back certified organic hemp crops. Mr. Mondeau’s farm is not certified organic. Looking for someone to buy the crops growing in his field proved a more complex task than expected.

The new law legalizing hemp keeps confidential all contact information for hemp growers and processors in the state. This makes it difficult for farmers to find buyers for their crops in Wisconsin.

I recently spoke with Rob Richard of the Wisconsin Farm Bureau Federation (WFBF). “We were concerned growers would be harassed by people who didn’t understand hemp,” said Mr. Richard, who serves as Senior Director of Government Relations. We worked together during the passage of the bill.

Perhaps lawmakers should rethink keeping hemp growers and processors confidential. Mr. Richard suggested one option is to allow farmers and processors to “opt in or opt out of public information so growers can access the list.”

Meanwhile, farmers with hemp crops in the field whose marketing plan fell through need immediate help.

Mr. Richard’s advice is to proceed with caution. “You have to find a buyer and have a plan on what to do with the product.” He noted processors are coming into the state to “manufacture and sell CBD [oil]. Processors are also coming in to deal with grain and fiber, but this is slower.”

Mr. Richard is working with former Legislative Council attorney Larry Konopacki to create the Wisconsin Hemp Alliance (WHA), which will work to bring processors, retailers and consumers together with farmers.

The organization is just getting off the ground. Connecting farmers and processors is one of the biggest challenges now.

“There are a lot of people who want to make money, but not a lot doing advocacy, education and marketing,” Mr. Konopacki told me. “Growing pains’ is a good way to describe it. There are the regular farming problems; equipment, harvesting, and growing conditions. But there are added problems with varieties and markets.”

“There are so many different kinds of hemp,” Mr. Konopacki pointed out. “It’s like saying there are vegetables for sale. I don’t want your cauliflower, but I’ll buy your tomatoes. There is a lot of seed growing but most of it is starting out organic. This is a market that really likes organic.”

Advocacy is needed to assure retailers, consumers, processors and farmers that hemp and products made from hemp are legal. Some District Attorneys around the state still want to prosecute those in the hemp industry. Uncertainty about transporting raw hemp also creates problems.

“There is still uncertainty about crossing state lines, even though this is allowed under the federal and state hemp pilot program,” said Mr. Konopacki. “A nationwide market wouldn’t have these problems. There’s not a lot of flexibility.”

Efforts to add hemp as a commodity to the national farm bill could help resolve transportation problems and, perhaps, ease marketing concerns. U.S. Senate Majority Leader Mitch McConnell introduced bipartisan language to the Senate version of the 2018 Farm Bill that would legalize growing the plant and allow states to set up the best system for regulation. Both Wisconsin U.S. Senators cosponsored the proposal.

Hemp is one of the few bright spots in Wisconsin’s agriculture community. WFBF’s Rob Richard noted, “The economic hardship and morale of farmers is really low right now.” Farmers are looking for alternatives and hemp provides some hope for better cash flow.

Some farmers are sitting on the fence watching their neighbors solve problems related to agronomy and marketing. “I really think you are going to see big growth in Year Two and Year Three,” Mr. Richard said.

Farmers looking for help finding a market for their product or folks interested in being advocates should contact the Wisconsin Hemp Alliance. Especially helpful are people willing to buy hemp.

“If you are a processor or buyer, we know of farmers who would like to connect with you!” Folks can reach Larry Konopacki and the Wisconsin Hemp Alliance at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

At a recent Committee hearing, members made it clear the UW must enact Legislative Audit Bureau (LAB) recommendations regarding the UW and affiliated organizations. Regardless of the audit, the recommendations provide a roadmap to resolving issues found by the auditors.

MADISON - What should we do if the folks in charge don’t fix things they know are broken?

At a recent public hearing of the Joint Committee on Audit, on which I serve as ranking minority member, lawmakers publically pondered how to hold government accountable if they repeatedly ignored audit findings.

The audit of the University of Wisconsin System came about from the alleged illegal transfer of public money to a private foundation by former UW-Oshkosh administrators. Two former administrators recently appeared in court on felony charges.

The recently released audit by the nonpartisan Legislative Audit Bureau (LAB) did not address the court case but provided details on the relationship between UW, its foundations, and other affiliated organizations.

Auditors found an array of problems. For example, a UW-Oshkosh employee placed public money in an affiliated organization and did not return all the money despite being instructed to by the Chancellor. In other situations, UW employees received full-time UW salaries, but they worked part-time at an affiliated organization. UW foundations did not always reimburse the UW for the public space or staff.

Most disconcerting for lawmakers was the apparent lack of compliance by the UW in correcting recurring problems and a lack of full access to records to complete the audit. As a consequence, auditors could not fully answer lawmakers’ questions.

Lawmakers on both sides of the aisle publically explored what to do to force compliance with audit recommendations.

Over and over again, lawmakers repeated some version of “sending as strong a message as we can” to hold the UW accountable. I explored the possibility of using subpoena powers to require agencies to turn over documents. My colleague, Senator Chris Kapenga (R-Delafield), suggested we take a much stronger approach to compelling agencies to release necessary information and comply with LAB recommendations.

Senator Kapenga proposed the UW and any other noncompliant agency should face strict financial penalties for either withholding information or refusing to comply with audit recommendations. He shared that when companies did not provide information to the Securities and Exchange Commission (SEC) - the federal financial watchdog would assess financial penalties. Senator Kapenga suggested a $50,000 fine for every instance of repetitive noncompliance.

All members of the Joint Audit Committee share Senator Kapenga’s frustration with agencies not providing auditors complete and accurate information and agencies not complying with audit recommendations. Too often, audits include recurring findings that should have been resolved when the agency complied with the LAB recommendations.

Our recent hearing dealt, in part, with recurrent computer security issues at the UW. For many years, auditors found problems with IT controls over accounting, payroll and student data. Without protections, data is vulnerable. The state could suffer losses.

Unresolved, recurring problems that leave the state vulnerable affect many agencies.

Other audits found that the Department of Health Services failed to enact recommendations to address poor compliance with required computer matches to stop inmates from receiving FoodShare benefits. The Department of Employee Trust Funds had repeated findings related to internal financial controls in seven of the prior ten years.

One of the most egregious repeated audit finding was with the state’s economic development programs. The Wisconsin Economic Development Corporations (WEDC) did not independently verify whether companies that promised to create jobs with public money actually created those jobs. Further, auditors called into question the job numbers released by WEDC.

These examples of noncompliance, repeated year after year, are only known because of the continual auditing conducted by the LAB.

The steadfast work of auditors to evaluate the effectiveness and efficiency of state government is critical to the public and to our legislators. Reports provide us reliable information about the action (or inaction) of state government, an assessment of whether or not programs met their purpose and whether money was properly spent. Moreover, the recommendations offered by the LAB provide a roadmap forward in addressing problems.

How seriously agencies take these recommendations falls on lawmakers. The clear message to the UW from the members of the Joint Audit Committee was “get the job done.”

The audit recommendations are the means to the end, which is better government. If we are going to be better stewards of the peoples’ money, lawmakers must now hold government accountable.

The Trump administration invited states to create new policies with more strict work requirements and barriers for people to qualify for Medicaid and FoodShare. A new court case challenges the harmful effect of these new policies.

MADISON - Do new strict requirements for Medicaid adopted by states violate the law? A federal court is set to decide after recent arguments presented by policy experts who said the requirements do violate law.

The case arose from Kentucky’s decision to create strict work requirements for getting healthcare through Medicaid. In January, the Trump administration invited states to submit “demonstration proposals” that make it much harder for people to qualify for or remain on Medicaid.

Experts say the Kentucky case could have implications for Wisconsin and six other states that have pending application for the restrictive Medicaid policy changes.

Wisconsin acted quickly to take advantage of the change. Governor Walker touted the changes stating, “public assistance should be a trampoline not a hammock.” In just a few weeks, GOP leaders passed nine bills as part of the new policy initiative. The bills added work requirements and other strict limitations to our state’s version of Medicaid known as BadgerCare.

I dubbed the effort, kicking people when they are down. The bills created strict work requirements for people with children, created insurmountable barriers for some trying to get help and restricted coverage. At risk were poor families, hungry children, and the disabled.

For example, one bill had the effect of forcing the wheelchair bound to sell their wheelchair accessible van, if it was valued at more than $10,000, in order to keep their BadgerCare and FoodShare (the modern version of the old Food Stamps program). The same bill had the effect of forcing dairy farm families to sell their cows before obtaining BadgerCare.

The federal court will decide if similar Kentucky requirements violate federal law and, according to Kaiser Health News, could determine “how far the Trump administration can go in changing Medicaid without Congressional action.”

In the same article, published in Governing Magazine, Kaiser reported that most legal experts say the administration’s approach is “backward because enrollees need health coverage so they are healthy enough to work.” Many scholars agreed and supported the Medicaid enrollees.

Forty policy scholars submitted in an amicus brief supporting the Kentucky lawsuit. They found no evidence to support “depriving people of Medicaid will lead to greater levels of employer insurance.” Work requirements do not make people healthy. Work requirements have no long-term effects on employment or income. However, Medicaid does improve health, and healthy people are more able to work.

The scholars wrote in their brief the new federal policy goes against the “core mandate” of Medicaid to provide medical assistance to all eligible individuals.

The scholars noted that under the Trump administration policy, “States are thus encouraged to pile on new eligibility conditions and coverage requirements, erect barriers and push people out of the program, all in the name of making people healthy.” Experts estimate over 100,000 people in Kentucky will lose healthcare over the next five years.

Part of Wisconsin’s initiative is to increase premiums. The scholars wrote there is “extensive research showing the adverse impact of unaffordable premiums on low-income persons with little or no disposable income.” Not being able to pay premiums leads to fewer people with health coverage.

Wisconsin, and some other states, already has work requirements in place for FoodShare. The forty scholars reported studies of these requirements show as many as fifty percent to eighty-five percent of folks now receiving benefits could lose them. Parents, of course, face additional obstacles including a lack of affordable childcare.

Wisconsin’s policies are crafted in a completely backwards way. If we want a farmer to do better or a wheelchair bound person to succeed why would the state make them sell items essential to their livelihood?

All these requirements add up to a fundamental question we face; do we have public programs to give a hand-up to those facing hard times or do the policies exist to punish the poor?

We heard expert testimony at a recent hearing of the Blue Ribbon Commission on School Funding Reform that Wisconsin’s formula is an outlier in the US. and failure to change it leaves children vulnerable, taxpayers paying more in property tax and the state open to lawsuits.

MADISON - The way Wisconsin pays for schools is unfair, inequitable and antiquated.

Over the past few months, I heard parents, community members, business leaders, teachers, students, and school officials speak about the flawed school funding formula. I serve on the Blue Ribbon Commission on School Funding Reform.

We took public testimony across the state. Recently, these criticisms were validated by national experts who testified at the last scheduled public hearing of the Commission.

Our state is changing. These changes are reflected in student needs. Compared to years ago, we have more students in poverty, with special needs, English learners, students suffering from mental illness and experiencing trauma. These students facing challenging situations cost us more to educate.

The state has failed to keep up with changing student needs. As a consequence, the schools with those of greater need are forced to divert funds from all other students to pay for these needs.

For example, the state funds only 26 cents on the dollar for special education needs. But federal law requires all special education needs be met. As a result, general education money is used for students with special needs.

Peter Goff, Professor of Educational Leadership and Policy Analysis at the University of Wisconsin, Madison described the situation. “Huge chunks [of general education money] are getting torn off to pay for these special education mandates – that is the state’s responsibility but [the state] is not paying for it.”

“Wisconsin’s school funding system is inflexible, unpredictable, and not well designed to respond to changes in educational conditions,” said Zahava Stadler, Policy and Research Director for EdBuild, a nonprofit dedicated to school funding reform.

Commission members heard testimony about how Wisconsin’s approach to paying for public schools is unique in the US – and not in a positive way. Experts said Wisconsin’s method of paying for schools makes students more vulnerable. Using “categories” of aid makes these programs more vulnerable to budget cuts because of political winds and economic downturns.

Emily Parker, a Policy Analyst for the Education Commission of the States, tracks school legislation. Ms. Parker described the evolution of school funding across America. At first, schools were funded in a flat dollar amount. Then schools were paid based on community wealth as measured by property value. This is how Wisconsin’s main formula works.

Over the years, states added student need (Wisconsin includes only in limited grant-like categories), then states made funding flexible and, recently, more states are basing resources for schools on student needs.

The effect of our obsolete formula is harmful to all students, as schools are forced to take money from general aid to pay for the increasing needs of some students.

Dr. Goff, testified about the effects of Act 10, revenue limits and budget cuts.

“Without a doubt, there has been a net loss to school districts over time,” said Dr. Goff. At the same time, the costs school districts face increased over time. “Every year there isn’t a revenue limit adjustment, it is essentially a cut to schools’ spending.”

“Local districts are taking on more, asking for more, going to referenda more often and passing more… this is not a sustainable model for school funding. At the end of the day, education is a state right. When you can’t give more of local effort, that is when the state opens up to potential lawsuits as well as ethical issues of underfunding schools. … At some point, local districts will exhaust [resources] and that puts the state at risk,” said Dr. Goff.

“There is a glaring omission that the state that has the largest achievement gap in the nation has a funding system … [that] does not mention student disadvantage at all. Or ethnicity at all.”

We must fundamentally change the way we pay for schools. We should throw out the antiquated formula based on property wealth. Instead, schools need a flexible, consistent commitment from the state to pay districts based on student needs and the costs of educating the students of today.

At risk, are our children. At stake, is our future. It’s time for the Blue Ribbon Commission to earn its blue ribbon.

As roads and bridges continue to deteriorate, former DOT Sec. Gottlieb presented a comprehensive long-term transportation funding solution that was rejected by Governor Walker. Sen. Kathleen Vinehout takes it to build an alternative state budget that provides solutions, not continued borrowing.

MADISON - Farmers in western Wisconsin are worried new bridge weight limits will add time and cost to their already stressful lives.

“This is a very serious concern for us,” Farm Bureau spokesman Rob Richard told Chris Hubbuch of the La Crosse Tribune. “We want to make sure farmers can get to and from their fields. If they can’t make the quickest, most efficient route they’re just adding wear and tear to other roads.”

The Department of Transportation recently lowered the weight limit on 184 bridges, mostly in western Wisconsin. This action met a 2018 federal deadline requiring a state evaluation of bridges.

Engineers looked at what is known as short-haul vehicles. These are vehicles defined by the feds as “closely spaced, multi-axle, single unit” trucks like dump trucks, milk trucks and manure hauling tankers. The vehicles have closely spaced axles that “concentrate weight in a much smaller footprint”, which can put more stress on, and possible damage to, the bridges.

Local bridges were low on the Governor’s spending priority list. In his first budget, the Governor cut money to local bridges by over 8% compared to the prior (Recession) budget, then provided no increase in the next four years. This year, his election year budget did provide new bridge funds.

Perhaps budget cuts are partly to blame for the results of a recent study by the American Society of Civil Engineers that reported Wisconsin has over 1,200 structurally deficit bridges.

The same study reported 27% of roads in Wisconsin are in poor condition. Motorists pay an average of $637 per year on vehicle repairs due to roads in need of repair.

“Our roads are all junk,” farmer Clint Sampson was quoted in the La Crosse Tribune story. “These county roads are worn out. The roads haven’t been touched for 30 years. Some of them are beyond patching up.”

Perhaps this is why county officials tell me they have turned asphalt roads into gravel for years.

The underfunding of roads comes in spite of several studies showing a decline in road conditions and a shortfall in state resources, just to maintain current conditions. For example, the 2014 Commission on Transportation Finance and Policy found, without additional highway funding, 42% of Wisconsin roads will be in poor or worse condition by 2023. The 2016, the study No Easy Answers found rural roads are twice as deadly as other roads in Wisconsin and more than twice as deadly as the national average.

I learned a great deal by reading the budgets of former Department of Transportation (DOT) Secretary Mark Gottlieb. Many of the ideas I used in my Alternative Budgets came from these documents, especially his 2015-17 budget request submitted in November of 2014. In this document, Mr. Gottlieb included 24 issue papers discussing solutions to the crisis facing DOT.

Reporter Katelyn Ferral of the Capitol Times recently interviewed the former Secretary. In the interview, former Secretary Gottlieb talked about how the Governor signaled that in 2016, Gottlieb should not submit another budget that “contained a comprehensive solution.”

“I think it was done because they didn’t want a repeat of what was done in 2014. They didn’t want the department to submit a budget that seriously dealt with this issue.” Instead, the administration wanted a budget that “pretended if we just went along like we were going along, everything would be fine. … That is not the budget I would have submitted based on my judgement of what was needed.”

“We got to the place where the facts were being ignored in favor of political spin”, former Secretary Gottlieb continued. “It is easy enough to evaluate statements about how much the state is investing or not investing by looking at historical budget data. We are not investing.”

Looking at state transportation budgets, one can see that Walker chose borrowing more money over developing a long-term transportation funding solution.

Potholes are real. Deteriorating bridges are real. Wrecked axles and other unexpected repairs are real. I agree with former Secretary Gottlieb, it’s time we have an honest conversation about how to fix transportation.

The recent Hi-Crush Mine spill highlights how the poorly regulated sand mining industry has consequences on local communities. Wisconsin can do better to protect the public and the environment.

WHITEHALL, WI - “A really unfortunate series of circumstances,” was how Kevin Lien described a recent spill of ten million gallons of orange sludge from a sand mine processing facility.

A bulldozer and its operator slid into a deep settling basin at the Hi-Crush mine and sand processing plant in Whitehall, Wisconsin. Mine workers, working with emergency responders, dug through an earthen berm and intentionally released the thick, orange sludge.

The sludge ran into Poker Coulee, making its way downstream into the Trempealeau River. Eventually the material made its way to the Mississippi River.

Mr. Lien is the Director of Land Management for Trempealeau County. He spent nearly the past decade at the epicenter of sand mining in Wisconsin. Using the regulatory powers of the county, he worked with county board members to develop protections for the environment, communities and public health. The county continues to monitor many mines.

But the mine that discharged the orange sludge is out of his jurisdiction.

“The county has no jurisdiction,” Mr. Lien told me. “And, the city is unregulated.” The county has no jurisdiction because the mine is in both the cities of Independence and Whitehall. Several years ago, the mine sought and received approval to annex into the two cities – some five miles apart – to avoid county regulation.

Annexation was approved in late 2013 by the Whitehall and Independence City Councils.

A lack of regulation allowed the mine to avoid expensive but necessary protections.

“We would have required safety measures,” said Mr. Lien. “There should be fail-safe protections downstream.” For example, a check dam downstream would contain any spills. The settling basin contains a large amount of sludge—water, mixed with sand and chemicals.

“But the discharge is in the county, and that’s my jurisdiction.” After the spill, the county sent the sludge out for testing but won’t receive the results for several days. “Now, its Memorial Day weekend. Families are headed to the beaches along the Mississippi River. We have no idea how hazardous [the sludge is].”

Sand companies use the chemicals – a proprietary mix including polyacrylamides – to treat sand destined for use in hydraulic fracturing. The sand acts as a proppant to allow oil and natural gas to flow from the well.

For years, I’ve worked with Mr. Lien and many other constituents on “balloon on a string” shaped annexations that allow cities to avoid county regulations.

The bills I wrote relating to mine operations and annexations never received a hearing. Since 2010, the state made it easier for companies to avoid penalties through the “Green Tier” program.

In the summer of 2017, Hi-Crush applied for exemptions from some state regulations through the “Green Tier” Program. In November, the state approved the application promising “protection from any civil penalties that the DNR might otherwise impose.”

Hi-Crush has a history of violations that resulted in penalties. For example, in 2014 the company was fined $52,500 for operating two high capacity wells without required permits according to WKOW. In 2017, the Whitehall site reported 8 worker injuries. According to Chris Hubbach, of the La Crosse Tribune this rate is more than 10 times the national average. The company received 18 fines related to worker safety since 2014.

Hi-Crush Proppants operated facilities in Trempealeau, Jackson, Eau Claire and Monroe Counties. The “Green Tier” regulatory exemptions apply to all of its Wisconsin mines.

“I don’t have faith in the system,” Kevin Lien concluded. Neither do citizens. And, they are concerned about the consequences. As one woman wrote to me from Eau Claire:

I watched in horror as the events of the recent Hi-Crush breach. It is prime nesting season for waterfowl. …Once the sediment settles and covers the vegetation on the bottom of the River and backwaters, that vegetation will die. The mallards and other bottom-feeding ducks and Canada geese will lose their food supply… fish… will cease as a food source for diving ducks such as mergansers, loons, canvasback, ring-necks, and scaup. Frogs and other crustaceans will suffocate and no longer be a food source for the already declining herons and egrets.

Who truly pays for a poorly regulated industry? The simple answer is: we all do.

When a AG memo muddies the waters on the possession and distribution of CBD oil, local Ag officials, hemp growers and farm groups move to clarify the issue. Wisconsin used to be a leader in hemp production and many farmers are hoping to make us a leader again.

RIVER FALLS, WI - Abbie Testaberg is a soon-to-be Wisconsin hemp farmer. She and her husband will be planting, growing, harvesting and processing hemp this year at the Kinni Hemp Company near River Falls. They are among the many farmers who received a license to grow hemp this year.

Two children with chronic conditions led Abbie to learn more about hemp and the oil extracted from the hemp plant called cannabidiol or CBD oil.

CBD oil is used for many purposes. There is evidence the oil helps those with autism, Parkinson’s Disease and Multiple Sclerosis. A few years ago, parents of children suffering from severe seizures lobbied lawmakers to eliminate the legal gray area so they could use CBD oil to help control seizures.

Farmers recognize the value of hemp and are eager to expand their farming practices.

Last fall, in a bill that unanimously passed through the Legislature, Wisconsin created the Industrial Hemp Pilot Research Program. According to the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), the state received 368 applications for hemp growing or processing licenses. This is the first growing season for hemp. According to the National Council of State Legislatures, 38 states allow farmers to grow hemp.

Just as farmers were gearing up for planting, the Wisconsin Attorney General (AG) issued a memo saying the possession and distribution of CBD oil was illegal.

“Scared us beyond belief,” Abbie confided. The family already invested in a 4-acre outdoor field and created a separate building for an indoor hydroponic system.

“[We are using the farm] as a showcase facility for our system,” she told me. Abbie’s husband Jody created a proprietary technology to grow plants indoors. The couple intended the indoor/outdoor plots as a research project to highlight the differences between the two growing systems. The family is working with a local farmer and collaborating with two University of Wisconsin-River Falls professors on hemp research.

Abbie’s long-term goal is to manufacture the trays used for indoor growing out of hemp. She told me only four or five companies in the world produce the type of plastic from hemp she needs for the growing trays.

Short term, Abbie and her husband plan to grow and harvest hemp plants for CBD oil. Processing the oil from the plant is a time-consuming, detailed process but provides a high-value product much in demand. Not being able to process the plant and extract CBD oil would have thrown a huge monkey wrench in their plans.

Abbie’s reaction to the AG’s opinion? “That’s a bunch of bananas. I spent a long week after the DOJ announcement, reading and re-reading the bill, the CBD bill, the farm bill, the hemp bill. There was a clear mechanism [for processing CBD oil].”

Abbie’s research along with the efforts of the lead Republican authors, Agriculture officials and members of the Farm Bureau, caused AG Brad Schimel to change his original position. He announced that farmers who process CBD oil would not be prosecuted.

The Wisconsin hemp law, Act 100, clearly states processing hemp is legal. But those who buy CBD oil seem to still be in a legal gray area.

“I’m confident this is legal but the [administrative] rules don’t fully articulate the bill language,” Abbie said. “The local co-ops will be worried.”

Wisconsinites can buy CBD oil without going to a doctor for a certificate, as it should be. CBD oil is a supplement, like ginseng.

Wisconsin farmers are hurting. Dairy prices are well below the cost of production and other commodity prices seem locked in the basement. A late planting season as a result of late April snow and May rains has farmers worried.

The USDA forecasts this year’s net farm income in real dollars will drop over 8% from 2017. If realized, this forecast would be the lowest real-dollar level since 2002.

Hemp is a bright spot in a gloomy agriculture economy. For many years, Wisconsin was a leader in hemp production. With our climate, farm support system and ingenious farmers we can again rise to become a leader.

It’s time for the state to get out of the way and let farmers grow and process hemp. If you want to help make Wisconsin hemp history, you can volunteer to help Abbie plant the first hemp crop May 31 through June 2. Learn more at the Kinni Hemp Company Facebook page.

Sen. Vinehout writes about attending her son’s graduation ceremony. She describes the lessons learned by commencement speakers and how our graduates can use their education to play roles in the communities they serve.

ST. PAUL, MN - “Can’t you be a toddler again, just for a day?” the mom asked her son. I stood with other moms drinking tea. The moms shared stories about children growing up.

Children grow up so fast. When my son Nathan was a toddler, I thought the stage would never end. Now, I watch Nathan, the toddler-become-man, walk across the stage in his cap and gown.

We were in the field house at Macalester College in St. Paul. Several thousand people from all over the world were packed into the cavernous space. Despite the cold, rainy weather, the room was quite warm. The bagpipes played as five hundred students processed into the hall.

The energy was palpable. It rolled off the black-clothed young men and women in waves, infecting everyone. Folks held their cell phones high, trying to catch an image of the procession. Young ones climbed on chairs looking for a familiar face in the sea of black robes. The bagpipes lent an air of solemnity.

Mom wiped away a tear.

The Senior Speaker, Myhana Kerr, took the stage. She was both beautiful and articulate. And, clearly loved by her classmates.

She spoke of community and its obligations. “Community requires a constant effort for its construction and maintenance.”

How often do we think of the constant effort people around us make to build community? Be thankful for those who pay attention to roads and bridges, parks and art, schools and hospitals. Everyone has a role to play in building community.

Ms. Kerr talked about how we create, discover and maintain different communities. Intentionally contribute to these communities, she told the graduates. Embrace them. Delight in their value.

I looked around the diverse crowd, and thought, clearly this college community created something much greater than “job ready” graduates. As if to reinforce my thought, a handsome African man took the stage.

“A living embodiment of the hashtag #dohardthings, you are a champion of resisting and reimagining the way things have always been done,” said the college President, as he introduced the keynote speaker, Fred Swaniker.

The man from Ghana devoted his life to answering the question, what will it take to make Africa prosper? Among many accomplishments, he created the African Leadership Academy. Through higher education, the Academy sought “nothing less than to develop 3 million ethical and entrepreneurial African leaders by 2060, and create a more prosperous and peaceful Africa.”

Approaching college with a fresh vision, the Academy focused students’ attentions on challenges facing Africa. Taking down the barriers between disciplines, students chose a mission of service. They asked big questions. They worked to tackle big problems like poverty, clean water, and economic development.

Students responded to the speech. They nodded, cheered and laughed. They empathized as he spoke of assumptions about Africa made by rich guys in Silicon Valley.

“A passion for service infected me,” Mr. Swaniker told the crowd. As you go into the world, bring with you a sense of mission, a higher purpose, a global perspective. Carry curiosity, humility, fairness and justice.

“Play the long game. Look out at the horizon.” Paraphrasing Bill Gates, Mr. Swaniker said, “Most people overestimate what they can do in a year and underestimate what they can do in ten years.” Look forward to what might be done in ten years.

I watched my son cross the stage with a grateful heart. I treasure so many benefits of a liberal arts education. How college ignites our curiosities. How learning invites us to ask questions and more questions. How we now see in ways we hadn’t imagined. How we love knowledge and the search for wisdom for its own sake. How we learn more skillful ways of interacting as humans.

The ceremony ended with a prayer, spoken in five languages. I share the prayer for all of us to send with our graduates as they head out into the world.

As we depart along our separate roads, may we be nourished by our years of friendship and learning. And may we draw upon them to create a more just and peaceful world, a world filled with fellowship and kinship, with respect and kindness for one another and with the hope of a better tomorrow.

The non-partisan Legislative Audit Bureau found deficiencies in the management of State Fair Park and made recommendations to address them. Park officials must report back to the Audit Committee by June 1st on their progress.

MADISON - “The State Fair is greatly loved by people all over the state,” Senator Alberta Darling (R-River Hills) said at a recent Audit Committee hearing. “But the back-office operations need to be improved.”

Most certainly, improvement must be made to resolve problems revealed by an audit conducted by the nonpartisan Legislative Audit Bureau (LAB).

The Joint Legislative Committee on Audit recently held a public hearing on the operations of the agency that oversees the Wisconsin State Fair and the operations of the Park. Like all of state government, State Fair Park is subject to state laws, standards and transparency. However, auditors found laws were not always followed and accurate records were not kept.

Members learned of disturbing trends in the management of the state’s resources: expenses growing faster than revenue, contracts not tracked, procurement laws not followed, environmental laws violated and needed planning not conducted.

Auditors reported that, over a five-year period, expenses grew by 20%, while revenue grew at a slower rate of 17.8%. If the fair is not able to balance its books, state dollars might be diverted from other programs. Already, state taxpayers make payments on the fair’s debt. In Fiscal Year 2017, taxpayers paid $3.4 million in debt payments.

Both revenue and expenses involve contracts. For example, State Fair Park earns much of its revenue from commissions on food, beverage and midway vendors. In addition, vendors pay State Fair Park for leased space. Each vendor has a contract with the state governed by state law.

Auditors reported examples of improper or poorly managed procurement (state purchasing). For example, contracts were signed or amended before gaining board approval, as required under the board’s bylaws. The LAB made several recommendations on remedying these problems.

Despite months of effort by auditors, State Fair Park officials were unable to provide accurate and complete information regarding contracts. Further, officials provided different contract information to the Department of Administration than it provided to auditors. These findings deeply disturbed lawmakers.

“How can the agency accurately do budgeting when they cannot account for either revenue or spending contracts?” I asked agency officials.

Senator Rob Cowles (R-Green Bay) asked, “How could this happen? How could the train have come off the rails so badly? How could we not have a list of all the contracts?”

He then asked if anyone lost their job. Executive Director Kathleen O’Leary answered that one person was fired and several financial and business positions are now filled. “We knew we needed to work closer with DOA (Department of Administration),” said Ms. O’Leary. Officials explained the agency is now in constant contact with Administration officials.

Auditors also reported on untreated manure and human waste getting into the sewer system and a nearby creek. “We concreted the barns, put in new sewer inlets and formed teams to clean out the barns,” State Fair Park board member Susan Crane told us. She also reported the fair has an antiquated sewer system that will need to be replaced.

State Fair Park officials have not conducted a comprehensive review of grounds and facilities since 2000. In addition, no major racing events were held at the state-owned Milwaukee Mile since 2015 and none is planned for the future.

Further, several state-owned facilities at State Fair Park could be better used year-round to raise money for the operations of the Park. For example, consumer and trade shows accounted for more than 70% of the revenue of the leased facilities, but represented just a little over a quarter of all the leased events.

Audit committee members were united in their interest to obtain answers from those who now administer State Fair Park. Thankfully, officials were very cooperative and appeared interested in working collaboratively with Audit Committee members to remedy problems identified by auditors.

State Fair Park officials are required to report back to the Audit Committee by June 1st on the status of the many recommendations and findings delineated by auditors.

Following the audit hearing, I spoke with leaders of State Fair Park. I was impressed by the urgency they felt in correcting the problems identified. I share their enthusiasm for the fair. I want the fair to succeed long into our future. Careful planning and record keeping is something every exhibitor at the fair knows well. We need to take this careful approach to the management of the fair so future exhibitors can enjoy the same amazing experiences.

At a recent public hearing of the Blue Ribbon Commission on School Funding, the message coming through loud and clear was that rural schools are struggling and the current funding formula exacerbates the problem. This situation must be changed.

MADISON - “Where kids live should not determine their education,” rural school administrators told members of the Blue Ribbon Commission on School Funding Reform.

Recently the Commission traveled to Southwestern Wisconsin. We heard from representatives of 20 rural school districts. Administrators, board members, teachers, parents and community members all testified about the struggles rural schools face and the need for change in the way Wisconsin pays for schools.

For decades state policies created hardships for rural schools. Superintendent Nancy Hendrickson of Highland School District explained that spending caps in the 1980s locked in low spending districts. A need for new buildings led to borrowing and increased property taxes in the ‘90s. In 1993, revenue caps locked schools into unequal spending. With school aid tied to the number of students and, with a declining rural population, aid is dropping faster than the cost to educate children.

Administrator Jill Underly of Pecatonica School District affirmed that school segregation still exists. “It may not be based on race necessarily, but it is still to an extent based on income inequality… Public schools, a cornerstone of our democracy, were supposed to equalize opportunity. It shouldn’t matter where you go to school, but in Wisconsin, let’s be honest, it DOES matter.”

Superintendent Doug Olsen of Kickapoo Area School District explained some of the challenges. “We are a consolidated school district of three communities in one building. … Our district consistently serves an economically disadvantaged population that comprises over half of the student body.”

Olsen noted that with poverty come needs. “… only 48% of poor students are ready for school at age 5, compared to 75% of students from moderate to high income families. From vocabulary and pre-literacy skills, to numeracy, emotional regulation, and trauma, kids in poverty are more at risk to come to school less prepared.”

In addition to increases in student poverty, there are more students with Special Education needs, English Language Learners, and students grappling with mental health challenges. All these students need help – provided by staff that must take on many other tasks.

“Cut, cut, cut,” said Superintendent Hendrickson. “We had to cut so many things.”

Rural schools did not recover from deep cuts made in Governor Walker’s first budgets. Across the state, school funding, in real dollars, for this school year is less than a decade ago.

Without resources, buildings and systems maintenance is deferred. School districts see fewer applicants for vacant teaching jobs, a shortage of substitute teachers and problems with a flattening pay scale for teachers making it hard to keep veteran teachers.

Because rural schools struggle with fewer teachers, administrators and support staff, everyone is forced to do multiple jobs. Jamie Nutter of Cooperative Educational Service Agency (CESA) 3 said much sharing of services already exists across districts. “We share hearing, vision, school nursing, curriculum, education development all through the CESA.” Cost for basic services, i.e. transportation, utilities, electricity are increasing.

New costs are added including technology, school safety, testing.

Legislative leaders decided if schools need more funding, voters should decide through referendum.

Administrator Olsen pointed out that rural Wisconsin has many farmers who are struggling financially. “As you have heard, Western Wisconsin leads the nation in lost farms due to bankruptcy and farmer suicide. In which community does a referendum to override the revenue limit have a better chance of passing?”

How does the current funding system keep things unequal? To summarize Superintendent Olsen’s testimony: money for schools comes primarily from the state and property tax. State aid is supposed to make things more equal, but the current school funding formula uses real estate (including land values) as a measure of wealth. Thus, the formula often overestimates a rural community’s ability to pay. The situation is made worse when GOP leaders bypassed the funding formula and gave wealthy suburban districts the same money as cash-strapped rural and urban districts.

“Add to this,” said Administrator Olsen, “the rural crisis going on in our farming communities. … Should we be enacting policies that exacerbate inequality?”

“If we value rural people, you will find a way to fund rural schools.” challenged community member Kriss Marion.

Our schools are unequal and this must change. The Blue Ribbon Commission on School Funding travels next to the Fox Valley and north central Wisconsin. I encourage folks to come and share their stories.

Many Wisconsinites are concerned about our natural resources and particularly water, and a recent audit that focused on DNR enforcement of water quality found we are not doing enough.

MADISON - “What can we do to protect our water?” This is a question I am often asked. Many Wisconsin residents are concerned about protecting our precious natural resources, and much of the concern is focused on water quality.

This week we celebrate Earth Day. Forty-eight years ago, Wisconsin’s own Gaylord Nelson first gathered with 20 million Americans in support of environmental issues. Celebrating the earth means being mindful stewards of all its natural resources, including water. Over 70% of the earth’s surface is covered in water. Less than 3% of this water is fresh; most fresh water is tied up in ice. Scientists estimate somewhere between a half and three-quarters percent of all water on earth is liquid fresh water.

In Wisconsin, we are blessed with many lakes, rivers, streams and aquifers. The Public Trust Doctrine contained in Wisconsin’s Constitution designates these waters as belonging to all of us. Our state and federal governments are charged with protecting waters.

At the heart of the state’s water quality program is a permitting and inspection system that allows water discharge into our lakes, streams and rivers. Inspections, reporting and enforcement actions impose the laws.

Two years ago, the Legislative Audit Bureau (LAB) found that 94% of the time the Department of Natural Resources (DNR) failed to take necessary action against industries and municipalities, which violates its own enforcement policies.

Auditors found ample evidence of inconsistencies, overlooked reports, and incomplete or missing inspections. For example, less than half of CAFOs (Concentrated Animal Feeding Operation) were inspected twice in five years. In a two-year period, only two out of ten industries were inspected as required.

CAFOs are required to send in annual reports that include any manure spills and required testing. Auditors found almost 98% of the required reports were not electronically recorded as being received. This lack of oversight meant DNR had no way of knowing or tracking problems. Staff said they were too busy to review reports.

While the former DNR Secretary acknowledged staffing was a problem, she made no promises to correct the situation. The most recent budget eliminated the Bureau of Science Services and eliminated 49 fulltime positions.

Wisconsin must invest in DNR staff and scientists to oversee water quality. We must hire back the scientists and inspectors, let them do their work, and allow them to speak freely about their findings.

Kewaunee County provides a lesson to everyone on the effects of poorly regulated CAFOs. Private well testing showed a majority of Kewaunee wells sampled as contaminated with bacteria found in human and bovine waste. However, problems in water quality and quantity exist across the state. For example, animals died from exposure to toxic substances, likely from sand mine activity; lakes are drying up because of excess irrigation; surface water experienced dangerous algal bloom because of excess nutrients.

A recent study by the Wisconsin Land and Water Conservation Association provides direction on how to move forward. The study suggests many smart actions including increasing groundwater monitoring, protecting the public’s right to groundwater, providing assistance for well owners affected by contaminated water, and action to address acute problems with water contamination.

Improving water quality from agriculture contamination includes conservation easements, state support of diverse agriculture, better nutrient management and erosion control. These improvements work best if farmers have cost-share incentives. Right now, Wisconsin’s farmers, especially dairy farmers, are experiencing serious financial hardship. Now is a time when help must come from many sources.

County conservation officers provide our frontline for water protection. Unfortunately, these hard-working men and women must beg lawmakers to preserve their meager budgets. Too often, officials blame tight budgets for a lack of resources to protect our environment. There are many ways to rearrange budget priorities, and, if necessary, raise new revenue.

For example, ten years ago Minnesota passed the Clean Water, Land and Legacy Amendment to their state constitution. Money from the sales tax increase is used in part to protect and enhance natural resources through projects as watershed restoration, on-farm pilot programs, farmer watershed certificate programs, water monitoring and pollution reduction.

It is this type of legacy former Senator Gaylord Nelson hoped for when he founded Earth Day. He said, “The ultimate test of man’s conscience may be his willingness to sacrifice something today for future generations whose words of thanks will not be heard.”

Is the State IT system at risk? A recent audit had several recurring findings related to IT security, which showed agencies had not implemented past recommendations to fix them.

MADISON - Is the state of Wisconsin at risk for a cyber-attack? A new audit from the Legislative Audit Bureau (LAB) shed light on what may be vulnerabilities in the state’s Information Technology (IT) system that could affect every business, taxpayer, student or recipient of state services.

In some cases, problems are so serious that LAB auditors could not reveal details in fear of creating additional vulnerabilities for hackers to exploit.

The audit described problems related to a lack of protection in computer security, a lack of adequate security policies, procedures and standards, which increased the risk of fraud.

Disturbingly, many of these weaknesses are recurring. In several cases, past audits found similar problems.

For example, to protect student data, and keep accurate financial records, auditors recommended remedial actions at the University of Wisconsin System. University officials took some action, but auditors reported they had not taken significant steps to cover critical areas, which increases the risk of unauthorized or erroneous changes in payroll, accounting and student information.

Similarly, auditors reported on weaknesses in security at the Department of Administration (DOA). Officials did not do a comprehensive risk assessment to identify security concerns and vulnerabilities since 2012. Because regular “penetration tests” were not completed, the state could not find and evaluate the risk of vulnerabilities and did not know how safe or unsafe all servers and systems were in the state’s network.

When reporting on what caused some of these problems, auditors wrote that “agency management is resistant to the development of IT policies and standards.” It is unclear why agency management is resistant.

Similar to the UW, auditors found some recurring IT security problems at DOA. In one finding, auditors wrote DOA did not take any of the additional steps outlined in its own corrective action plan.

Another finding related to a lack of control over IT security could result in unauthorized changes related to vendor payments or payroll. These problems were too serious to publically detail but might result in undetected financial misstatements, fraud or theft.

As a side note, auditors also found evidence of mistakes in the state’s financial statements, which were not related to IT security. The audit described problems in cash management. In auditing the state’s financial records, auditors traced errors back to mistakes in monthly reports, in bank reconciliations and in payroll.

Because of these errors, the state showed a net amount of $21 million more than the actual cash. When trying to understand the cause of errors, auditors wrote staff “did not always understand the effect of the errors on financial reporting and did not take steps to communicate them to the appropriate agencies.”

Audit findings showed many mistakes in the financial report of the state’s capital transportation assets. Problems related to how DOT used different types of computer records. Multiple factors contributed to the errors, including poor planning and inadequate written documentation.

Evidence of other errors was found in the state infrastructure reports. For example, the Department of Transportation erroneously classified $27.2 million as bridges that should have been classified as roads.

Five years ago, Wisconsin embarked on a large IT purchase and system conversion. There was no dispute the new system was needed; however, the costs were massive, estimated at $139 million.

I serve on the Joint Committee on Information Policy and Technology. In one of the very few public hearings held on the IT investment, DOA officials repeatedly told lawmakers the project was “on time and within its budget”.

While questioning DOA officials, we also learned the system involved thousands of staff hours not recorded nor budgeted. Hundreds of employees were moved from various agencies, in which they worked to DOA, which increased that agency’s staff by nearly fifty percent. We learned about delays in the project implementation and delayed payments to vendors, which resulted in late fees that cost the state five times more than late fees charged in the previous year.

For years, my Democratic colleagues and I called on GOP leaders to exercise their legislative oversight of the state’s IT system. Both the Audit committee and the Information Policy committee must get to the bottom of IT security problems and insist, under threat of budget reductions, that things are fixed.

The audits are a “wake-up” call for state IT officials. The best way to protect is to prevent risk.

At a recent public hearing in De Pere, the Blue Ribbon Commission on School Funding heard from school districts in that area, including Green Bay, about the challenges they face, which are exacerbated by funding issues.

DE PERE, WI - Linda Brown recently passed away in Topeka, Kansas. Ms. Brown was the student at the center of the landmark Supreme Court case Brown v. Board of Education that struck down school segregation. Ms. Brown’s father, Oliver Brown, tried to enroll his nine-year old daughter in the all-white Sumner School.

The day after Ms. Brown’s passing, I joined other members of the Blue Ribbon Commission on School Funding to explore inequities in Wisconsin’s public schools at a public hearing in De Pere.

The stories we heard wove a tale of struggle, innovation, inequity and challenge.

Major changes are happening in our state’s public schools. Compared to twenty years ago, we have more minority students, students who are English Language Learners, and students whose families are experiencing poverty.

In Brown County, four of 10 students live in poverty. The district has three times as many homeless students as it did in 2003. Children come to school hungry. They carry the burden of family conflict to their seat in the classroom.

Todays’ students have more mental health needs, including depression, anxiety and suicide. “Nearly 50% of girls and 30% of boys report anxiety,” said Christine Gingle, Social Work Coordinator at the Green Bay Area Public School District. “Almost 50% is a staggering number, but not overly surprising given the immense pressures students encounter during their school career… Many have suffered losses…are concerned about safety, or are experiencing grief. Safety concerns have a significant ripple effect on our community.”

Commission Member and UW Professor Julie Underwood asked, “What happens when you don’t have the resources to serve students?” Ms. Gingle answered, “The work falls back on the classroom teacher.”

“Students bring their problems to the classroom,” shared Dr. Michelle Langenfeld, Green Bay Area School Superintendent and a fellow member of the Blue Ribbon Commission.

“Teachers say to me, ‘I can’t do this anymore. When I close my eyes at night, I can’t sleep because I see all the children I cannot serve’,” Dr. Langenfeld continued. “We are blessed to be in a community that does help us. But every superintendent can share the same stories. We are all working the best we can. We also need to care for our caregivers.”

In the Green Bay Area School District, students speak 31 different languages. Minority students make up the majority of English Language Learners (ELL). The Green Bay Area School District has 600 Somali students who face not only language challenges. Many are orphaned. Some watched as family members were executed. Most have no formal education.

“In 1990, the reimbursement rate for ELL was 63%.” said Julie Seefeldt, Director of the English Learners Program at Green Bay. “The current reimbursement rate…is at approximately 7.9%.”

“This story is not unique to Green Bay,” Dr. Langenfeld told our Commission. “Somali families are grateful for the educational opportunities. They want their children to work hard and become American citizens.” In response to questions about the resulting challenges facing the district and teachers, Dr. Langenfeld replied, “Necessity is the Mother of Invention.”

Justin Millfox, a teacher at West High School in Green Bay and President of the Green Bay Education Association, told us about the necessity for invention. “West High School is the home of the Wildcats,” Mr Millfox said. “We have a Cat Closet for school supplies and clothes for kids who do without.” The struggles of students are very hard on teachers as they try, with few resources, to address the significant needs of children with big gaps in their learning.

Many folks testified about problems in the way the state pays for schools. Our Commission heard: Providing EQUAL dollars does not solve the problem because not all student needs are equal.

“Providing equal dollar amounts of per-student increases in funding does not provide the necessary equality to provide our low income and English Learner students the support necessary for success,” noted Brenda Warren, Green Bay School Board President.

The legacy of Linda Brown and her father’s fight for equality continues to challenge us today. Their bravery and courage opened doors for children across our nation. Today, these doors and the schools beyond them are in need of repair. Dr. Langenfeld acknowledged that challenge as the public hearing adjourned stating, “We have no time to lose. It’s Go time!”

The referendum question on next Tuesday’s ballot asks voters if they wish to amend Wisconsin’s Constitution to eliminate the Office of the State Treasurer. Sen. Vinehout shares some information about the functions of the office which should be helpful to voters.

MADISON - Spring Elections are here. Voters are going to the polls to elect a new Supreme Court Justice and many local officials, from county board to school board. Voters will also make a decision to change our Wisconsin Constitution. On the ballot will be a referendum question to eliminate the Office of State Treasurer.

From the time Wisconsin became a state, we had a Constitutional Officer to oversee finances – the State Treasurer. The purpose of this office can be summed up in the words of the nonpartisan Council of State Government, “Treasurers act as the watchdog of the people’s money and, in most states, are elected by their own constituents. This check and balance in the executive branch of government provides an effective oversight mechanism and increased transparency.”

Some believe, including the current State Treasurer, the office is outdated and a waste of money. However, far more is behind this vote.

Over the past twenty years, the Legislature at the request of the Governor, removed the duties of the Treasurer. Many of the duties were taken over by the Department of Administration (DOA). The last budget increased the size of this sprawling agency by nearly fifty percent, or just shy of 1,500 employees. The Governor and his appointee, the Secretary of Administration, control the agency.

Eliminating the Office of the State Treasurer consolidates more power in one agency; the greater the power, the greater the opportunity for corruption, and less transparency for citizens of the state.

Think of the way a civic organization or a company is organized. The person who buys things – procurement – is not the person who writes the checks – the treasurer nor the one who audits the books.

In advising all types of organizations, from local nonprofits to large multinational corporations, auditors tell their clients when it comes to handling money there must be a “segregation of duties.” In other words, the same person (or department in a large company) should not collect the money, deposit the money, spend the money, approve the contracts and keep the books.

The principle of segregation of duties disperses the critical functions of overseeing procurement, contracting, vendor payments, cash management and auditing. Following this principle is a basic building block of risk management and, what auditors call, internal controls. These are the systems that help prevent and identify fraud, mismanagement and errors. Segregation of duties also assures transparency and accountability in state government.

According to the Wisconsin Taxpayer, our State Treasurer is the only treasurer in the nation that does not oversee cash management. We are only one of two states that do not allow the State Treasurer to be responsible for the state’s bank accounts.

Over the years, Wisconsin has marched toward a consolidation of power in DOA. We do not have a separately elected Controller, like many other states. Our Secretary of State, like the Treasurer, has lost many duties. It is no wonder folks nicknamed DOA the “Department of All.”

Our state’s finances could use more oversight, not less. The most recently enacted state budget authorized the state to spend $76 billion over the two-year budget cycle. Misappropriation of just a small amount of this massive sum could involve millions of taxpayer dollars.

Elected officials serve as stewards of the taxpayers’ dollars. Our responsibility includes setting up systems that contain the “internal controls” which prevent and expose fraud and mismanagement.

I am voting “no” and I urge you not to eliminate the important function of the State Treasurer. Instead, I suggest we restore the duties of this Constitutional Office. This is why Representative Spreitzer (D-Beloit) and I wrote and introduced a bill to return the financial duties of the State Treasurer. Senate Bill 833 would restore many responsibilities of the State Treasurer including cash management functions that were removed in 2003.

Eliminating the State Treasurer is not a new idea. Over the past 100 years or so, three dozen such proposals were introduced. A constitutional change requires the Legislature to pass a resolution containing the exact same language in two consecutive sessions. The question then goes to voters for the final decision.

When you go to the polls, think of your local club, company or organization. Everyone wants the same or greater accountability and transparency over the massive $76 billion in state monies.

The vote next Tuesday is “no.”

The Senator's proposed Public Assistance Advisory Committee would give those most affected a seat at the table while changes to essential public assistance programs, such as FoodShare and Medicaid, are created and require input from policy experts at the UW.

MADISON - “Many people with disabilities depend on public programs so they can stay healthy and live, work and participate in the community,” Jason Endres wrote to me in favor of a bill I recently introduced.

My bill, Senate Bill 870, would create a Public Assistance Advisory Committee. I drafted this legislation in response to Special Session bills recently passed by the Legislature that modified public assistance programs.

People with disabilities, as well as those living in poverty, rely on key public assistance programs, such as FoodShare, Medicaid and public housing. It is important for those using the programs to have a voice at the table when legislation to change these essential programs is considered.

Jason and his wife Julie Endres traveled to the Capitol to join other citizen lobbyists participating in Disability Advocacy Day. They came to raise awareness about the critical programs designed to help those who live with disabilities.

In recent years, upwards of 800 folks, their caregivers, families and friends came to the Capitol in an effort to stop the Governor’s plan to put the IRIS (Include, Respect, I Self-Direct) program under the administration of a single large for-profit insurance company. IRIS assists disabled persons in self-directing the services they need. Ultimately, these citizen lobbyists successfully fought to maintain administration of IRIS through a state/non-profit partnership.

People shared their personal stories about how state programs fund critical assistance, such as personal care workers. These people are angels on earth who make a big difference in the lives of our disabled neighbors and their family members. The personal care workers had not received a wage increase since 2008. Even then, they only received a one-and-one-half percent increase. Personal care workers make around nine or ten dollars an hour according to the Wisconsin Personal Services Association.

The package of Special Session bills also makes changes in eligibility for basic assistance, including Medicaid and Foodshare. People could be required to sell their home, small business or their cows to obtain temporary help when they hit hard times. Physically disabled persons would be required to sell their wheel-chair adaptive van if the value is greater than $10,000.

These new rules worried Jason and his wife Julie. “When changes to these programs occur, we need to be at the table as stakeholders to explain how we use the programs and how even small changes often can result in unintended consequences that really impact us,” wrote Jason.

At the public hearing on the Special Session bills, the advocacy group Survival Coalition testified, “there are not consistent exemptions for people with disabilities across the legislative package and no clear public input process.” The Coalition went on to explain that people with disabilities as well as caregivers, have difficulty getting special exemptions under current requirements.

During the hearing, we heard many people testify about how the bills could leave more folks without needed food or health care. The bills could hurt farmers struggling with low commodity prices, young parents who need healthcare, small business owners who hit hard times and those with “invisible disabilities” like autism spectrum disorders.

Many advocates, who work with those facing difficult hurdles, testified that they were not provided any opportunity for input as the Special Session bills were crafted. New administrative red tape for the poor and disabled will mean more people falling through the cracks.

The Special Session bills include provisions that are currently not allowed under federal law. This means the Walker Administration will be required to seek a “waiver” – which is special permission from the federal government to implement the new law.

My bill would bring this waiver writing out of the dark. It would allow those affected by changes to essential public assistance programs to have a seat at the table while new details on the programs are created. Senate Bill 870 would also require input from policy experts at the UW.

Too often research is not a part of the public policy process. The work of the Population Health Institute and the Wisconsin Institute for Research on Poverty is internationally recognized. We need the expertise of these social scientists at the table when crafting policy related to assistance for those who most need our help.