April 21, 2015
Dear WH&LA Lodging Member:
This will be another active week at the State Capitol, with the state Joint Finance Committee holding another Executive Session this Wednesday, this time discussing and reaching decisions on the Department of Tourism budget, some components of the DNR and Transportation budgets, and more.
RECENT STATE BUDGET DEVELOPMENTS
- The Governor issued an "errata memorandum" that notes a few changes in the budget proposal that revise what they basically state are errors in the proposal. Most notable to our industry is the re-instatement of two of the five "earmarks" removed in the original budget proposal from the state tourism budget: $125,000 per year for Marketing Sports Activities & Events and $200,000 each year to Promote Travel to Tribal Areas/Events. This means that $375,000 of the just over $500,000 originally cut from Tourism each year has been re-instated; however, they are earmarked for these projects only. Tourism funding is still slated to be down more than $125,000/year.
- The Legislative Fiscal Bureau (LFB), a non-partisan state agency that prepares papers and options for Joint Finance Committee for their budget meetings, has created Paper #626 on "Marketing Earmarks (Tourism)" which outlines more than 24 different options for their deliberation on Tourism Earmarks. Due to the complexity of the paper, WH&LA has crafted a Tourism Earmarks Chart that breaks down each earmark along with the LFB options for each - both individually and collectively - referencing their official option numbers that the Committee will reference in discussions this week. For your reference, WH&LA will continue to advocate for a full restoration of the $500,000/year that was cut from the budget, but will not advocate for any earmarks. If you wish to contact Joint Finance Members to ask for full restoration of the over $500,000 cut without any earmarks, you can click on links to the Joint Finance members here: http://docs.legis.wisconsin.gov/2015/committees/joint/1384.
- The budget components that converted both the Natural Resources Board and the Board of Agriculture, Trade & Consumer Protection to Advisory Councils, limiting their authority and shifting the authority to the DNR and DATCP Secretaries, was removed from the Budget as part of the "Non-Fiscal Policy Items" the Joint Finance Committee voted to remove, along with the proposed requirement that property assessments would be handled at the county (versus municipal) level, which was also removed.
- A lot of input the Committee has received has been strongly against the removal of General Purpose Revenue (GPR) funding of the State Parks. What many are not aware of is that there were fee increases included in the budget for camping at state parks and for vehicle annual state park passes that will not offset all of the $4.66 million cut, but will generate $1.89 million in additional funding. That still leaves State Parks with an approximately $2.77 million net cut, however.
- AB 144 was introduced earlier this month by Rep. Jim Ott, which will widen the opportunities for school districts to opt-out of the after September 1 School Start Date. A companion bill by Sen. Alberta Darling is anticipated shortly in the Senate. While a hearing has not yet been scheduled in the Assembly Education Committee, it is anticipated soon. The exception allowed would be for a school district in which more than 20 percent of the high school students took at least one Advanced Placement (AP) exam. Based on 2014 data from the DPI, we have learned that this could impact more than 40 school districts in the state. If this impacts you, contact your Assembly Representative to let them know that retaining the current start date is important to the tourism industry in Wisconsin, both from a more time for family travel and from a seasonal employment of high school students perspective.
- SB 94 and AB 121 relating to special regulations for "Camping Units" in campgrounds have had Committee hearings in both the Assembly and State Senate. We understand that an amendment or two may be pending that could make important clarifications, such as tightening the definition of "Camping Unit;" however, they have not yet been released. An Executive Session by the Assembly Committee on Housing and Real Estate has been scheduled for April 30, at which point the amendments will likely be introduced and action will occur on the Assembly bill. These bills are being pursued by the Wisconsin Association of Campground Owners (WACO) to enable the expansion of cabins under 400 square feet at campgrounds by providing less regulations than for a tourist rooming house. Other than concerns raised by WH&LA and member Ann Maletzke at both hearings, Committee members have heard almost solely from WACO voices in support. We will share the anticipated amendments once they become available.
There are many more developments moving in the state legislature which we will continue to feature as possible. Thank you as always for your attention and support in protecting Wisconsin's lodging industry.
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