Author: Michelle Felber

Governor Walker Reaffirms Support of Tuition Freeze

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Governor Scott Walker visited four University of Wisconsin System campuses last week, touting his support for a two-year tuition freeze. Speaking to students in Green Bay, Eau Claire, La Crosse, and Racine, Walker said if elected he would support an additional two-year tuition freeze. Tuition was frozen in 2013 after UW System was found to have about $1 billion in reserve.

UW-Eau Claire Chancellor Jim Schmidt told the Eau Claire Leader-Telegram that an extended tuition freeze would have a detrimental impact on his campus:

“Another two-year tuition freeze would certainly have a major impact on the finances of UW-Eau Claire. We are already anticipating an additional cut of at least $3 million in the coming year to address the current tuition freeze.”

In Green Bay, Walker told students that he supported affordability over additional financial aid to students:

“We know it’s not just about providing more financial assistance, it’s about providing a great price for a UW education that’s low to begin with.”

At UW-Madison, tuition revenue funds approximately one-quarter of the cost-to-continue. UW System is currently working with the Department of Administration on an estimate of cost-to-continue as part of the state biennial budget process.

State Budget Shortfall Projection Rises to Almost $2 Billion

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The Legislative Fiscal Bureau announced in a memo to legislators the projected state budget shortfall, or structural deficit, for 2015-17 has risen to $1.77 billion. The LFB projected a deficit of $642 million in May. The revised figures are the result of lower state tax collections and global economic projections.

LFB 2015-17 deficit memo

LFB 2015-17 deficit memo, page 2

Legislative Update

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2015-17 Biennial Budget

Last month, Governor Scott Walker directed state agencies to prepare their 2015-17 biennial budget requests, and the Board of Regents approved UW System’s budget proposal last week. The proposal includes $95.2 million for the “Talent Development Initiative,” the implementation of new performance measures, and statutory language changes related to compensation, including the ability to offer merit pay increases.

Budget request highlights:

  • $30 million for a competitive grant program targeting six areas critical to the state’s economy: agriculture, finance, insurance/real estate, healthcare, manufacturing, transportation, and water research.
  • $27.3 to cover a pay plan funding gap. Historically, UW System funds about 30 percent of a pay plan increase with tuition dollars. The two-year tuition freeze has led to a funding gap, with many campuses holding insufficient reserves to cover the pay plan.
  • $24.4 million to increase the number of college graduates statewide, with much of the funding directed to the Course Options program, a program that allows high school students to earn college credits. Additional funding would expand the Flex Option degree program, improve the credit transfer system, and assist working and first-generation college students.
  • $22.5 million in one-time funding to assist with the creation of STEM (science, technology, engineering, and math) jobs. The money will be available to individual campuses through a competitive grant process.

The budget process is lengthy, beginning with formal introduction in January and final passage in late June. PROFS will be involved throughout the entire process and communicate regularly with faculty.

Tuition Freeze
Last spring, Governor Walker announced an additional two-year freeze on University of Wisconsin System tuition. The governor said his proposal was a direct result of the disclosure that UW System would finish 2013-14 fiscal year with almost $1 billion in reserve. The governor first called for a tuition freeze after UW System was found to have just over $1 billion in reserve.

Fall Elections
Governor Scott Walker faces challenger Mary Burke, former Secretary of Commerce and Madison School Board member. Earlier this week, former UW-Madison professor Charles Franklin released a new poll showing the race continues to be a toss-up.

The legislature will experience its largest turnover since the 1970’s. Six state senators and 21 members of the assembly announced their retirement earlier this year. The fall primary was held earlier this month, and the outcome of one primary — the 17th Senate District — is still unclear.

Voter ID
Governor Walker and Attorney General J.B. Van Hollen recently asked a federal court to reinstate the voter identification law that was passed two years ago, but never enforced as a result of several state and federal court challenges. Many legal experts believe the current federal challenge will keep the law on hold through the fall elections. PROFS lobbied against voter ID legislation.

State Revenue Collections Down

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The Department of Revenue announced today that General Purpose Revenue (GPR) collections for fiscal year 2014 are $281 million less than projected. All tax categories were lower than projected except for public utility; liquor and wine; and insurance.

The shortfall means the state faces a $115 million deficit at the start of fiscal year 2015-16, and all but guarantees that the state budget process will be more difficult than expected.

fy 2014 state revenue collections

Regents to Discuss UW System Budget Proposal

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uw system logoThe University of Wisconsin System Board of Regents is meeting at UW-Oshkosh today and tomorrow, August 21 and 22. Livestream coverage of the full board meeting is here.

Regents committees will meet Thursday morning, while the full board will meet Thursday afternoon and Friday.

The board will consider UW System’s state budget request Thursday afternoon. The proposal includes $95.2 million for the “Talent Development Initiative,” the implementation of new performance measures, and statutory language changes related to compensation, including the ability to offer merit pay increases.

The budget request notes that Governor Scott Walker directed state agencies, including UW System, to submit proposals that assumed no new funding, but UW System discussed its intention to request an budget increase with members of Governor Walker’s staff.

Budget request highlights:

  • $30 million for a competitive grant program targeting six areas critical to the state’s economy: agriculture, finance, insurance/real estate, healthcare, manufacturing, transportation, and water research.
  • $27.3 to cover a pay plan funding gap. Historically, UW System funds about 30 percent of a pay plan increase with tuition dollars. The two-year tuition freeze has led to a funding gap, with many campuses holding insufficient reserves to cover the pay plan. 
  • $24.4 million to increase the number of college graduates statewide, with much of the funding directed to the Course Options program, a program that allows high school students to earn college credits. Additional funding would expand the Flex Option degree program, improve the credit transfer system, and assist working and first-generation college students.
  • $22.5 million in one-time funding to assist with the creation of STEM (science, technology, engineering, and math) jobs. The money will be available to individual campuses through a competitive grant process.

UW System also plans to implement several accountability measures:

  • To meet or exceed the current goal of 80,000 undergraduate degrees conferred by 2025-26
  • To enroll at least 32 percent of Wisconsin high school graduates immediately after graduation
  • To meet or exceed the current plan to improve second-year return rate
  • To meet or exceed the current plan to improve the six-year graduation rate.

 

August 2014 UW System Board of Regents Budget Request

Wisconsin Partisan Primary Election Tomorrow

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election dayWisconsin’s partisan primary election will be held tomorrow, Tuesday, August 12. Polls are open statewide from 7 am to 8 pm. Information on voting and how to locate polling places is here. Photo identification is not required to cast a ballot.

Many legislative races are uncontested, but there will be statewide primaries for Governor, Attorney General, Secretary of State, and State Treasurer:

Most incumbent legislators in Dane County face token or no opposition. However, first term Representative Dianne Hesselbein (D-Middleton) will face Middleton Republican Brent Renteria in the 79th Assembly District.

Two Democrats are vying to represent Assembly District 78: Alders Mark Clear and Lisa Subeck. The winner will be unopposed in the November general election and will almost certainly be elected. PROFS hosted a forum with both candidates last month.

Two Democrats are on the ballot in the 17th Senate District, the seat left open after Dale Schultz, a moderate Republican, announced his retirement. Voters will choose between Ernie Wittwer, a retired administrator with the Wisconsin Department of Transportation, and attorney and former legislative aide Pat Bomhack. The winner faces State Representative Howard Marklein in November.

Tomorrow’s election will also determine the Republican candidate for Wisconsin’s 6th Congressional District. Congressman Tom Petri announced his retirement in April. Four Republicans are on the ballot tomorrow, including State Senators Glenn Grothman and Joe Leibham, Representative Duey Stroebel, and technical college instructor Tom Denow. The winner faces Democrat Mark Harris, Winnebago County Executive.

State Supreme Court to Rule on Voter ID, Act 10 and Domestic Partnership Registration Thursday

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The Wisconsin Supreme Court will issue opinions on three extremely high profile cases tomorrow morning, Thursday, July 31:

Act 10  The court will rule on the constitutionality of Act 10, a law that severely restricted collective bargaining by most public employees. Several lawsuits followed passage of the bill, but the law has been upheld every time, including in federal court. The state court is considering whether Act 10 violates workers’ rights to free assembly and equal protection under the law.

Voter ID  The court will consider two cases that argue the state’s voter identification law is unconstitutional. One lower court struck down the law, while another has upheld it. Tomorrow’s ruling will not affect an earlier federal ruling that found the law unconstitutional and is being appealed.

Domestic Partnerships  The court will rule whether or not the state’s domestic partner benefits passed in 2009 violate Wisconsin’s constitutional ban on gay marriage and civil unions passed three years earlier.

 

When Does the University of Wisconsin Cease to be a Public University?

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Mike Brost, a University of Wisconsin-Madison senior from Shorewood, asks in Friday’s Milwaukee Journal Sentinel at what point does a state university cease to be a university?

Brost writes that state spending on higher education has fallen 28 percent since 2008, and UW-Madison receives just 15 percent of its budget from the state. Nationally, as state funding drops, tuition increases — 231 percent over the past 30 years.

At the same time, Brost observes investment in public higher education is a good for the state’s economy:

With $1.2 billion in state funding, the UW System contributes more than $15 billion to Wisconsin’s economy.

Brost argues that if current trends continue, Wisconsin’s funding of higher education will end in 2040.

The full article is here.

 

78th Assembly District Candidate Forum

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PROFS hosted Democratic candidates in the primary election for the 78th Assembly District on campus Monday evening. Political science professor Kathy Cramer, Interim Director of the Morgridge Center for Public Service, served as moderator. Candidates Mark Clear and Lisa Subeck, both Madison alders, responded to questions from the audience.

The primary election will be held Tuesday, August 12. More information on the fall primary, including absentee and early voting, is here.

Video courtesy of WKOW.

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