Progressive Thinking

MADISON - I’m all about celebrating our victories, whenever they occur.

And one just occurred yesterday when the Department of Health Services shelved its plan to let private insurance companies run the programs for the elderly and the disabled in Wisconsin. You can read all about it here:

A win for disability rights activists!

While I’m on the subject of people with disabilities, a report came out this week that noted some difficulties that they, too, were having with Voter ID:

Voters with disabilities in Wisconsin faced problems

This week we also reported on the Koch Brothers throwing their weight around down ticket in our state:

Koch group targets two Wisconsin State Senate seats

And Congressman Mark Pocan is focusing his sights on the dark money group that calls itself Wisconsin Alliance for Reform, though “reform” is the last thing this group is about. It ran nasty ads against Judge JoAnne Kloppenburg and Russ Feingold, and it was founded by the person who led the campaign to ban gay marriage in Wisconsin. Pocan has put donors to this group on notice:

Pocan warns donors to dark money group

I’m headed out for a brief vacation next week, so I’ll get back to you in a couple.

Meantime, please send us a tax-deductible gift by clicking here or by mailing it in the old-fashioned way to 203 S. Paterson St. Suite 100, Madison WI 53703.

We really appreciate your support.

ALTOONA, WI - American politics is in system failure. In a democratic republic, the definition of system failure is when a clear public consensus emerges that we the people are being ruled, not represented. Current conditions fit that definition.

The latest polling by The Associated Press shows nearly all Americans now believe that neither major political party represents the views of your average voter. A mere 14% say the Democratic Party is responsive to the voters while just 8% say the same about the Republicans.

An overwhelming majority of voters told AP in no uncertain terms that neither party is receptive to fresh perspectives. Only 17% of the public say the Democratic Party is open to new ideas for dealing with the country’s problems, and a meager 10% say that about the Republican Party.

A whopping 90% of voters lack confidence in the country’s political system while upwards of half go so far as to say that the two-party structure is “seriously broken.” Seventy percent of voters, including equal proportions of Democrats and Republicans, admit to feeling frustrated about the 2016 presidential election and 55% say they feel “helpless.”

The AP is hardly alone in finding evidence of boiling public discontent with the major parties and ruling class. Pew Research Center found most Americans believe elected officials from both parties don’t care what we think, are out of touch, bought off, and put their own interests ahead of the country’s. Princeton University researchers provided a jolting explanation for why everyday Americans have good reason for feeling this way, with a study showing that public opinion has “near-zero” impact on what Congress does.

Pew has been surveying American public opinion for three-quarters of a century and has never before found such alienation from the two major parties as its polls are detecting right now. And according to Gallup polling, close to 60% of Americans want a new major party to emerge because they feel the Republican and Democratic parties do such a poor job of representing them.

All of these findings are akin to tremors that foreshadow a coming earthquake. Seismic events have been rare in American politics. Never in our lifetimes has a major party splintered and disintegrated. Never in living memory has a new major party taken shape and seriously threatened the ruling parties. But it has happened before. On multiple occasions, as a matter of fact. The birth of the Republican Party coincided with the death of the Whig Party as the country wrestled with the evil institution of slavery. The Progressive movement produced major political upheaval in the Gilded Age at the end of the 19th Century, causing massive fractures within the major parties at the time and ultimately transforming both of them.

For the first time in a very long time, the signs are again unmistakable. You can feel the tremors. America is on the brink of the political equivalent of an earthquake. The landscape is going to be dramatically altered. No one has a crystal ball capable of showing us exactly when the quake will hit or where the largest chasms will open. But what is clear is that the conditions are ripe for the emergence of a new major party. Chances are the majority of Americans will get their wish soon enough.

— Mike McCabe

The Legislative Audit Bureau’s recently released audit of the DNR Wastewater Permitting and Enforcement efforts should raise concern about how well that agency is protecting water quality in Wisconsin. The problems identified by the nonpartisan auditors could be remedied with adequate staff and close adherence to policies established in partnership with the federal Environmental Protection Agency to assure compliance with the Clean Water Act.

KEWAUNEE, WI - We all drink water. We expect the water to be clean when it comes out of the facet. We also expect that someone is looking over the safety of our water.

Residents in Kewaunee County wonder more than most if the water they drink is really safe. Well water tested in a random sample last November found a third of Kewaunee wells were contaminated with bacteria or unsafe levels of nitrates.

The likely culprits of well contamination are large livestock farms known as concentrated animal feeding operations (CAFOs). Kewaunee County has more CAFOs permitted by the Department of Natural Resources (DNR) than any other county except Brown.

The nonpartisan Legislative Audit Committee (LAB) recently reviewed the DNR’s work related to our state’s pollution discharge elimination system. The DNR staff is charged with watching over about 1,250 industrial and municipality-owned wastewater treatment plants and the discharge of over 250 large farms – mostly large dairies.

This system is a partnership between the state and the federal government to make sure Wisconsin meets its goals for clean water. The federal Environmental Protection Agency (EPA) relies on Wisconsin’s DNR to assure compliance with the Clean Water Act.

State law sets Wisconsin’s policy, “to restore and maintain the chemical, physical, and biological integrity of its waters to protect public health, safeguard fish and aquatic life and scenic and ecological values, and to enhance the domestic, municipal, recreational, industrial, agricultural, and other uses of water.”

Inspections and a permit system exist to make sure those who discharge into our environment do so following the rules.

But auditors found serious problems.

For example, the DNR issued a notice of violation in only 33 of 558 instances (5.9%) for which such a notice should have been issued based on DNR policies. A notice of violation is part of the required enforcement system. The official letter may include steps required by the permittee to come into compliance with the law.

Wisconsin has experienced significant growth in CAFOs. From 2005 to 2014, there was an 80% increase of CAFO permits.

Farmers are required to send in annual reports including any manure spills and required testing. Auditors found that the DNR electronically records as received only a fraction of these reports. DNR staff told auditors they do not record report submissions because they are too busy with other duties. Staff also indicated they did not have time to thoroughly review the reports.

Inspections provide the oversight to enforce the law. The DNR strategy is to inspect CAFOs at least twice in a five-year period. Auditors found that while the number of CAFO inspections increased, the percentage of CAFOs inspected twice within a five-year period never exceeded 48%.

With the DNR inspecting less than half of CAFOs twice within a five-year period, you might think the DNR Secretary would be calling for more staff and more inspections.

Instead, Secretary Stepp, in her written response to the audit, changed the rules. She wrote the Department would commit to only one inspection of each CAFO during a five-year period.

In what sport, or business, does a team who cannot make a goal move the goalpost?

The Secretary did acknowledge the number of staff conducting review and inspections was below what was needed, but she never made a request to increase staff. In the most recent budget, the Department actually eliminated 66 positions, although none were inspectors.

The Secretary also wrote that almost 30% of the Bureau of Water Quality staff retired in 2010-11. One effect of lack of staff is a backlog in reviewing permits. Auditors found in the 11-year study period the DNR never met its goal of having no more than a 10% backlog for industrial permits. Only in 4 of 11 years reviewed did DNR meet this goal for municipal permits.

In July 2011, the federal EPA notified the state of 75 issues requiring DNR action. LAB auditors pointed out details yet to be resolved related to the EPA notice.

Wisconsin had a tradition of clean water. The DNR has both a legal and a moral responsibility to protect our water. Auditors uncovered details that should concern us all. We need to call on DNR leaders to take steps necessary to protect our water.

MADISON - Our “Influence Peddler of the Month” is none other than John Menard Jr., owner of the hardware store chain and the richest man in Wisconsin. He’s not shy about throwing his money around in the Wisconsin political arena, as you’ll see in the following post:

Influence peddler of the month - John Menard, Jr.

And here’s an item that might interest you in a week when it was confirmed that Prince died of an opioid overdose: One group of Wisconsin chiropractors is lobbying the legislature to allow them to prescribe painkillers. Interestingly, another group of chiropractors opposes this. You can read about the split here:

Chiropractors split on proposal to let them prescribe painkillers

I’m still buzzing about last week’s federal court case on the rigging of our electoral maps. Final arguments took place late last Friday, and the plaintiffs’ lawyer did a masterful job, as I explain in this posting:

Why GOP map in Wisconsin may get shot down

By the way, if you’re going to the Farmers’ Market in Madison tomorrow, stop by our table across from the Inn on the Park. I’ll be there from 8:00 a.m. – 10:00 a.m., so please say hi.

And in any event, I hope you enjoy the weekend!

P.S. Hey, if you liked that John Menard piece and if you appreciate the other work we do to expose the role of money in politics and to champion democracy, please send us a tax-deductible gift today by clicking here. Or mail it in the old-fashioned way to: 203 S. Paterson St., Suite 100, Madison, WI 53703. We really appreciate it!

Many indicators show that things are not as rosy as some would have you believe about Wisconsin’s financial health. Do we employ good budgeting practices as we struggle to pay our bills?

MADISON - “Is there any news on how the state is positioned for revenue growth?” Mr. Olsen inquired in his letter.

“How do our finances compare to other states?” Mrs. Adams asked.

People want to know about the health of Wisconsin’s finances. As I began my research, I spoke with the State Auditor and the chief financial analyst, both of whom work for nonpartisan legislative support agencies.

Wisconsin is midway through its two-year budget. The state’s fiscal year ends June 30th. By mid-August we should know how closely actual spending and revenue tracked with budgeted numbers.

Preparations are underway for the 2017-19 state budget. State agencies are putting together their budget requests. In November, Wisconsin’s Department of Revenue (DOR) is required to release estimates on money coming into the state to help inform decisions about the budget.

“The last couple of months have not been particularly strong,” the Legislative Fiscal Bureau (LFB) analyst told me.

Sales tax collections were down and the DOR reported that corporate income tax collections in April 2016 were about 9% below that of April 2015. The previous month was also down by 15% compared to March 2015 – off about $40 million – and March is a big month for corporations paying taxes.

Estimating corporate income tax is a difficult exercise because of the large number of tax credits and the long period companies have to claim the credits – many can be claimed at any time over a 15 or 20-year period – making it hard to estimate how low corporate tax collections will go. Over the past 10 years, the amount of business tax credits claimed has more than doubled.

Recently the nonpartisan LFB was informed that Governor Walker’s administration would not pay debt bills coming due. Refinancing debt to avoid making a payment is a way to keep more cash on hand.

However, not making those debt payments cost taxpayers more in interest and principal due down the road. The Administration’s recent action to delay $101 million in debt payments coming due results in $2.3 million in additional interest costs.

Delayed debt payments likely reflect concerns the Walker Administration has about the state’s fiscal health. In particular, concerns about the ending balance of the two-year budget. We won’t have a clear picture of how difficult the next budget will be until both the DOR and the LFB release their numbers in November 2016 and January 2017 respectively. Nevertheless, lower than expected corporate and sales tax collection should give us pause.

Earlier this year the LFB projected Wisconsin’s check book balance would be less than previously projected. They pegged the estimate at $70.2 million on a $73.3 billion budget. It is likely the Governor delayed debt payments to improve the balance and make sure he is not in the red.

Wisconsin’s debt – while growing – is sometimes cited as low compared to other states because of the strength of the state’s pension funds. However, if you set the pension fund success aside, debt has increased over the years. Current debt hovers around $14 billion – a mere $500 million less than the state’s tax revenue, which in fiscal year 2014-15 was $14.5 billion.

One reason debt is higher is because Wisconsin set very little aside in its ‘rainy day’ fund. While majority lawmakers and the governor added to the fund in recent years – a good thing – Wisconsin has a smaller rainy day fund compared to every Midwestern neighbor except Illinois. Equivalent numbers are hard to get because of the vagaries of state budgeting, but in a comparison of percent of the states’ general fund, Wisconsin held aside 1.2% of its general fund while Minnesota held aside about 7% of its general fund.

Debt also affects the state’s bond rating. Bond ratings tell us the likelihood of default on the state’s debt. A lower bond rating usually means the state would pay more for interest on debt. Wisconsin’s bond rating – Aa2 – is the lowest of all Midwest states except Illinois.

All of this indicates that Wisconsin’s financial health is not as rosy as some would have you believe. We can do better if everyone pays their fair share and if we grow our rainy day fund during the sunny times and save the credit card for emergencies.