Dear WH&LA Lodging Member:
Now that the Governor's proposed 2017-19 State Budget came out in early February and earlier this month the Legislative Fiscal Bureau has provided the comprehensive Summary reports for legislators and the public to view, the next stage of deliberations on the Governor's proposed Budget begins with Joint Finance Committee hearing testimony by most agencies next week followed by Public Hearings around the state as follows:
- Monday, April 3 at UW Platteville's Ullsvick Hall in Platteville
- Wednesday, April 5 at State Fair Park's Exposition Center in West Allis
- Friday, April 7 at Berlin High School's Auditorium in Berlin
- Tuesday, April 18 at Spooner High School's Auditorium in Spooner
- Wednesday, April 19 at Ellsworth High School's Gymnasium in Ellsworth
- Friday, April 21 at Marinette High School's Auditorium in Marinette
A key item in the Budget impacting the tourism industry is the State Tourism Budget, which was proposed to have a reduction of $260,000 the first year and $210,000 the second year, with a portion of that to cover the shifting of one finance position to DOA. The WH&LA, along with our partners in the Tourism Federation of Wisconsin, will continue to seek a $3 million increase over 2 years, meaning that the Joint Finance Committee would need to increase the Tourism Budget, but make a cut elsewhere to balance the funding change - not an easy ask when everyone wants more funding. HOWEVER, investing more in tourism does have a documented 8 to 1 Return on Investment (ROI) - one of the few investments that can help generate more state sales tax revenue for other funding needs in the Budget! It is important that we consistently reinforce this message when we speak with legislators - along with the fact that Wisconsin's lodging industry delivers over $98 million in state sales tax revenue annually - which helps to fund so many services the state offers.
Another key item will be the state Transportation Budget, which continues to be very controversial not only in the level of funding but in the proposed sources of funding. We will be watching closely as negotiations among state leaders escalate, as we have already shared with them that our industry finds it imperative that safe roads are available to travelers throughout the state to ensure that they continue to travel in our state and invest in our economy.
We have received a number of requests for updates on the School Start Date bills (SB 96 and AB 103), which propose eliminating the current no earlier than September 1 school start date for K-12 public schools. We are anticipating that there will be a public hearing at some point, likely in the Assembly Education Committee, however there has been nothing announced to date. The WH&LA, along with our Tourism Federation partners, has had a very active presence at the Capitol expressing our opposition. If there are any new developments, we will be sure to share them with our members.
NEW ISSUES
While there are too many bills and proposed bills to list here, the following are a few that will be of interest to many of our members:
Employment of Minors
SB 11/AB 25
introduced by Sen. Chris Kapenga (R-Delafield) and Rep. Amy Loudenbeck (R-Clinton) removes the requirement that 16 and 17 year olds must have a work permit. This was designed to remove a barrier to some minors who face difficulty in gaining authorization from a parent or guardian to work and to increase the number of workers in this age group who want to work. An obstacle in this proposal is the elimination of the permit fees revenue to the DWD, currently $350,000 in funding that pays for staff to oversee child labor questions and complaints. This already passed the Assembly Committee and is being considered in an executive session by the Joint Finance Committee on Monday.
A separate proposal awaiting introduction ("LRB-2211/P1") would allow 15 year olds to be hired as Lifeguards, with the ability of the DWD to require completion of a course on life saving first.
UW System Lodging Per Diems
The UW System currently has the ability to allow UW System employees and authorized representatives to pay above the State Lodging Per Diem rate (for other state employees) up to the Federal Lodging Per Diem rates for Wisconsin for their overnight lodging. A bill is being circulated for co-sponsors by Rep. Ed Brooks (R- Reedsburg) ("LRB-2155/1") that would eliminate the authority of the UW System to allow their employees/authorized representatives to pay rates above the State Lodging Per Diem rate for other state employees.
Creative Economy Grant Program
Sen. Sheila Harsdorf (R-River Falls) and Rep. Warren Petryk (R-Eleva) are circulating a bill draft "LRB-2325/1" that would re-introduce a concept from last session (which did not pass) that creates a new Creative Economy Grant Program administered by the state Arts Board in the Department of Tourism. These grants would be for businesses, local governments and organizations to promote
1) individuals/organizations affiliated with artistic, cultural, creative or aesthetic content 2) job creation 3) Economic development 4) Arts education 5) Workforce training & development. Grand amounts would be up to $40,000, which must be doubled in locally matched funding.
Elimination of Water Ski Observer Requirement
SB 69
introduced by Sen. Terry Moulton (R-Chippewa Falls) authorizes the operation of a motorboat towing a person on water
skis, aquaplane, or similar device, without requiring a second person in the boat to observe the person being towed, if the boat is equipped with a mirror enabling the operator with a wide view to the rear.
Overtime and Minimum Wage Bills
SB 87
was introduced March 2 by Sen. Lena Taylor (D-Milwaukee), which would raise the minimum wage paid to tipped employees by 95 cents each year until it reaches the general minimum wage rate, making tipped employees subject to the general minimum wage.
SB 103
was introduced by Sen. Dave Hansen (D-Green Bay) on March 9, which would increase the compensation threshold for exempt employees to $970/week ($50,440 annually) and would add an annual adjustment based on the Consumer Price Index (CPI), as well as modify the requirements for exempt status.
WH&LA ACTION DAY
Please plan on attending
WH&LA's Action Day April 5 at the Sheraton in Madison
to get more in depth information on the top issues for Wisconsin's lodging industry and to have an opportunity to meet with your state elected officials. For more information go to:
We look forward to seeing you there!
Best,
Trisha
