Today we'll explore the WEAC insurance companies called WEA Insurance Group.

The WEA Insurance Group is composed of five organizations:

• WEA Insurance Trust
• WEA Insurance Corporation
• WEA Tax Sheltered Annuity Trust
• WEAC Member Benefit Trust
• WEA Property & Casualty Insurance Company

These organizations are used to provide coverages such as health insurance, dental insurance, long term disability insurance, long term care insurance, automobile insurance, homeowners insurance and tax-sheltered annuities.

This is a spectacular picture from the WEA Trust that was created in 1970 with initial capitalization of $5,000 that was provided by WEAC.  By 1977, this Trust had become the thirteenth largest health insurer in Wisconsin.  By 1989, it employed 140 people, and now employs some 500 people and serves over 200,000 public school employees and family members.

It, as is its parent, is the 800 lb. gorilla so far as insurers providing coverage to school districts in Wisconsin.  It takes pride in the ways in which it developed new coverages for its members and in its record of few member complaints.

Among the breakthroughs it claims credit for are these:

• The trust was the first in the state to offer a disability plan that replaced 90% of a disabled employee's income.  (Typical insurance policies offer up to two-thirds of the employee's compensation to encourage those who are able to return to work as soon as possible, and to help hold insurance premium cost down for employers.)
• The Trust was the first insurer in Wisconsin to cover transplants as a standard benefit.  (Such breakthroughs have had to add costs to these plans that caused increases in premiums to employers.  Most insurers were hesitant to offer such coverage unless and until forced to do so by state mandate since they would've been priced uncompetitively with other insurers.)
• The Trust health plan covered psychiatric and chiropractic services "long before the law required insurance companies to offer such benefits".  (Again, we see marketplace differentiation that made it nearly impossible for other insurers to compete for school district business while it made the employers pay more due to these increased levels of service.)

We discussed Jane Doe's coverage cost to the district in a recent Blog.  Jane's cost to the district was $19,279 during the most recent school year, and she paid another 3% of the premium from her pocket as her contribution toward that cost.  Given the coming school year and plan changes that have been made by WEA Insurance Trust, the cost to the district for the most comparable program will go up to some $22,400 for an increase of about 16% in its cost.  (This is contrasted with an average increase in Wisconsin for other employers of about 4% this year according to a survey by the Mercer consulting firm released today.)

That same announcement based on the Mercer survey pointed out that $1,000 deductibles are now commonplace across America.  I would be amazed if a single school district in Wisconsin could be identified that has such a deductible in place.  Premium sharing by employees is often done on a 25%-75% or a 50%-50% basis in Wisconsin's workplaces, but in Jane's case there is a 3%-97% sharing arrangement.  It is not at all uncommon for employees of firms with fewer than 50 employees to have no health insurance coverage provided by their employer today.  That percentage is in the range of 50% to 60% in Wisconsin today.

WEA Insurance Trust points to its success with the following statistics:

• Health plan enrollment was 138,024 for 2007, or 71% of eligible school districts.
• Dental plan enrollment was 149,961 for 2007, or 78% of eligible school districts.
• Long term disability enrollment was 60,063 for 2007, or 75% of eligible school districts.
• Life plan enrollment was 36,237 for 2007, or 46% of eligible school districts.
• Long term care enrollment was 21,251 in 2007, or 23% of eligible school districts.

This is what the insurance industry calls "penetration" of a marketplace, and it points to the dominance that WEAC has in negotiating on behalf of its insurance companies.  I have spoken with people who have attempted to compete against the WEAC/WEA Insurance Trust insurance programs.  They have made presentations to Boards showing significant decreases with relatively little in the way of plan benefit reductions and few are ever successful in getting the business.  The union dominates this world.  Some question why the teachers would permit this to happen since the premium costs impact their pay due to the QEO rules, but I suspect any teacher who would voice his or her concern might feel uncomfortable in his or her peer group as the result.  And, it is great if you're in the cat bird's seat with the 'Cadillac' coverage.

If you read yesterday's piece, you may've noted that WEAC has universal health care as one of its legislative goals.  That would be great since they could then shift costs to all the state's citizens instead of just to those citizens in a district they provide coverage for.  And, most interesting of all is this overlooked fact:  WEAC had already obtained favorable treatment for its members in the Healthy Wisconsin program that was defeated last year.  Universal health care is great but they must still have better coverage for their members...and the party in control of state government was willing to cause that to happen.

Some have questioned the people costs of a school district but this kind of information helps us better understand where some of those costs originate. 

I want to shift the focus now to the Wisconsin Education Association Council, or WEAC as it is commonly known.  Following this, we'll look at the WEAC affiliate that delivers health and other insurance coverages.

WEAC is among the state's 800 lb. gorillas so far as labor organizations are concerned.  It touts having some 98,000 members.  Its history shows a start in 1853, some 8 years after Wisconsin became a state.  It became known as WEAC in 1972 following adoption of collective bargaining laws for public employees in Wisconsin.

WEAC represents the following segments of education today: teachers, education support professionals, custodians, university students, state education employees, paraprofessionals, retired education support professionals, retired educators, library media specialists (one of whom, Mary Bell, is the current WEAC President), nutrition employees, school safety personnel, Wisconsin Technical College faculty and support staff, clerical staff, counselors, secretaries, teacher aides, bus drivers, cooks and state-employed education and information professionals.

WEAC's structure begins at the local level with the local unions such as the Germantown Education Association (GEA).

The local unions are members of a unified services unit, or UniServe unit, in their local area.  That unit includes the professionals required to support the locals, and is typically limited to some 1,200 to 1,500 individual union members.  Five of the largest school districts have their own UniServ units (Milwaukee, Madison, Racine, Kenosha and Green Bay).  The staffs of each UniServ provide locals with collective bargaining, member rights, public relations, professional development, and political action assistance.

The UniServ entities are tied to WEAC in Madison and WEAC is a member of the National Education Association, or NEA located in Washington, D.C.

It is easy to see that this organization is very well developed for the functions it has carved out for itself.  That is among the reasons that education is such an effective political force.  I have made earlier references to the fact that WEAC has spent millions of dollars to assure an attentive audience in the halls of Wisconsin government and in the Governor's mansion.

WEAC has identified its major initiatives for the period 2008-2010 and those are:

School Funding  They state: "It is evident that school funding is broken.  It is at the center of discussion from local to local.  The WEAC Board of Directors has identified measures of success for school funding reform, and they are offering a comprehensive education to kids and fair compensation for members."

Health Care  They state:  "We know that under the Qualified Economic Offer we've been sacrificing salary increases for health insurance.  But WEAC's commitment to health care reform is much bigger.  We care deeply for kids and their families because we all know that health care is also a learning issue."

Professional Development & Licensure  They state:  "Educators are required to focus more attention than ever on licensing and professional development, and WEAC is stepping up to provide quality support and services.  You are the best person to manage your professional development, with support from your union and financing from your district."

Achievement Gaps  They state:  "This issue is very close to the hearts of WEAC members.  The frustration of not being able to meet the needs of all our students drives us to do more - demanding needed resources and bringing the issue forward into a public conversation.  We will continue our work to involve communities, corporations and government in closing the achievement gap."

Membership  They state:  "We are listening to what you need and value, and connecting your union to your daily work.  We are focusing on groups who are already organized - and those who are not yet - in order to fulfill the promise of public education for future generations."

I'll close this piece with the 2009-2010 WEAC legislative agenda.  Their printed material says:

"WEAC Supports Legislation To:

• Repeal the Qualified Economic Offer law.
• Repeal revenue caps.
• Make preparation time for educators a mandatory subject of collective bargaining.
• Increase funding for SAGE to provide $2,500 per low income pupil beginning in the 2009-2010 fiscal year.
• Implement voucher accountability.
• Make attendance of 5-year-old kindergarten mandatory and a prerequisite to admission to first grade.
• Treat education support professionals the same as teachers under the Wisconsin Retirement System in terms of qualifying for coverage and for early retirement calculations.
• Establish WTCS pay equity by requiring that the salary and fringe benefits of part-time technical college instructors be prorated based on the salary and fringe benefits of full-time staff.
• Create a loan forgiveness program for teaching math, science, special education and ELL in high-poverty districts.
• Repeal residency requirements.
• Provide a tax deduction for non-reimbursed classroom purchases.
• Adopt the 'Wisconsin Indoor Environmental Quality in Schools Act' for public school buildings.
• Require school boards to adopt anti-bullying policies.
• Allow parents to take leave time from work to attend school conferences and activities."

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Several things jump out at me as I write this but I'll use another piece to explore those.  The one major thing that occurs is that virtually everything about WEAC means higher costs of education which translates into restructuring school financing laws and that will ultimately translate into more tax dollars.

A few short weeks ago, our governor mentioned that we would be contending with as much as a $3 billion budget shortfall in the next biennium.

A few days ago, that number was escalated to as much as $4 billion.  At that time, the governor was quoted as saying that he would do everything possible to avoid having to increase taxes.

Today, we appear to be staring a $5 billion budget shortfall in the eye, and, while he says he will do everything possible to avoid tax increases, there is some mention of income tax and sales tax.

I am reminded of that age old 'frog in the water' story.  We're the frog and the State of Wisconsin is the water and the elected masses will prove to be the hand that turns the heat up so that we boil under the strain of tax increases.

In the intervening few weeks, there has been no talk about how the budget can be cut to accomplish the magic 'balancing' act.  The state budget has been rigged for this failure for awhile.  Handy dandy accounting games have been used to continually push a significant shortfall into the next biennium in order to help "balance" the current biennium. 

That and the use of funds 'stolen' from every little rainy day money pot the governor could find have, to mix metaphors, kept the wolf from the door; but the 'big, bad wolf' has just huffed and puffed and the door is about to cave in on top of us taxpayers.

There is no other money available.  There are only budgetary cuts or tax and fee increases.  Guess which will be used to get the majority of the shortfall covered.  Oh, there will be some marginal cuts for our consumption but nothing even approaching what is required.

What will they cut?  Education?  Are you joking?  The new health care program they're trying to foist on us?  Are you joking?

I'm sorry to tell you that I think we all better buckle our chinstraps; we've a rough ride ahead and the Democrats are in control.  They haven't been too anxious to reduce spending as I recall.

Maybe I'll be surprised; I certainly hope so.  I'd love to take a bite of that crow!

First, thank goodness that the elections are essentially over this morning.  This seemed a particularly grueling election season although I don't quite understand why.

From a personal perspective, I won some and lost some; probably like many of you.  Now, I'm trying to determine what I think will be happening as the result of the votes made yesterday and earlier by absentee ballot.  I haven't even thought about the national implications, but have some ideas about our state and local implications.

The Democrats achieved the 'trifecta' they have desired by taking control of the Assembly, and keeping control of the Senate and statehouse.

Some of the results that I foresee are these...

• The state budget is in a three to four billion dollar shortfall situation,  I think we'll see an increase in the sales tax statewide, and that we could see an increase in our income taxes, as well.
• The municipalities have long complained about the limitations they face on local property tax increases.  I think those limits will either be removed or significantly increased so that we will almost certainly see property tax increases at our village level.
• The state teachers' union, WEAC, has long advocated the removal of the QEO (qualified economic offer) rules in Wisconsin.  I think we'll see QEOs gone and that will result in some very large increases in teacher compensation and benefits thus increasing our local property taxes on that score, as well.

Among the other hot button issues will be the discussions concerning a state run health care plan for virtually all citizens.  This has been happening incrementally in the various BadgerCare plans, but I expect to see a real push in the coming year.

Given the budget shortfall and the pain that will cause, I suspect that other programs will have to be put on the 'back burner'.

Other things, such as the ban smoking movement will be much more visible.

Some have wondered if our current governor might be selected to become part of President Obama's leadership team.  Governor Doyle is actually less liberal than is the lieutenant governor, Barbara Lawton.  I won't be surprised if Governor Doyle is tapped for a role in Washington, but I'll grit my teeth at the thought of a "Governor Lawton".

Wow, voting day is finally here and my telephone will quit ringing so much, my mailbox will be less cluttered and I can either celebrate or cry in my proverbial beer.  This election 'season' has seemed to go on forever.  Several things are at top of mind this morning...

Milwaukee Police Unit Disbanded...

The special investigative unit of the Milwaukee Police Department that generated the 67 page election fraud report has apparently been disbanded some five days prior to today's election.  The detective who led that operation has, according to the Wall Street Journal, been relegated to the sidelines today.  John Fund of the Wall Street Journal reported this morning that Detective Michael Sandvick had predicted that Wisconsin could see as many as 55,000 illegal votes cast.  He cited the cross-border flow from Minnesota and Illinois since Wisconsin is one of only eight states that have 'same day' registration coupled with the weak verification of eligibility.  His estimate was that as many as 30,000 votes could be cast today in that manner. 

There are only two people of whom I'm aware who could've caused this 'stand down' and those are Milwaukee Mayor Tom Barrett and/or Police Chief Flynn.  Neither has been available for interviews today to my knowledge.

~~~~~~~~~~

My Voting Site...

I drove past the site where I vote at about 7:20AM today and was astounded at the number of vehicles parked and at the length of the line of people waiting to move into the building to vote.  I plan to vote in the 9:00AM range and we'll see if this surge was simply caused by people on their way to work as I suspect.

At any rate, it certainly seems that our voter turn-out will be in the range predicted by the Village Clerk's staff which I recall was in the 73 percent range.

On top of this was an inordinately high number of absentee ballots being cast based on my casual observations of parking lot loads during the preceding couple of weeks and of anecdotal comments from people working in village hall.

UPDATE:  I voted at about 9:20AM and was number 580.  The people were still streaming in and there was about a ten minute wait at that time.

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Media Hype...

I am angered with what now seems to pass for the mainstream media so far as their seeming promotion of Obama's 'inevitable' victory.

We have been fed the 'facts' for many days that there is no way for McCain to win.  There are, unfortunately, too many voters who are swayed by this 'stuff' and who don't think for themselves.  If just 1% of potential voters were dissuaded from 'wasting' their time voting, the swing could become a 'self-fulfilling' prophecy.

~~~~~~~~~~

Direct Legislation...

Finally, we are witnessing direct legislation in Milwaukee concerning mandatory sick days from employers.  This would create a burden for many businesses that would force them to close or move thus negatively impacting the residents.  But, there are too many who can't or won't think these issues through and simply vote because they like the idea that they can have sick days. 

We are witnessing some 25 to 30 communities across the state that have ballot questions concerning 'mandatory health care plans similar to those afforded state employees'.  These types of issues are done at the state level but grass roots groups have begun to work at the local levels to bring some pressure to bear on state legislators.  The simple fact is that there isn't enough money in the state to provide that level of health care coverage for all the residents.  We would bankrupt ourselves.

Having family members in Colorado, I am reminded of the folly that those voters are subjected to in the form of ballot initiatives.  There are something on the order of fifty individual questions on ballots in Colorado today that require some real effort to understand.  The majority of voters do not take the time to do their own research and, instead, follow the direction of their associations or unions or professional affiliations.

This is a very dangerous thing, in my opinion, that lends some credence to the old saw about us voters getting the government we deserve.

There has been much ado over the signing of a "No Tax" pledge by Rep. Wasserman and whether or not he violated his pledge.  This issue has been debated and both candidates have gone after the topic vigorously.

Rep. Wasserman appeared on the Mark Belling Show on WISN 1130AM last Friday to specifically refute the claim that he had violated his pledge.

The podcast of that discussion between Rep. Wasserman and Mark Belling is found here and you must go to Hour 2 Part 1 10-31-08 to find the correct podcast segment.

This podcast will only be available until 3:00PM today, so you'll need to listen to it soon if you intend to do so at all.  You can make up your own mind as to the answer to this campaign question.

I had intended to scan a copy of the sample ballot for Germantown however that wasn't sufficiently legible.  So, we'll list the offices for which there are candidate selections to be made by all of us who are registered to vote in the village.

You may elect to vote a straight ticket including, in the order found on the ballot:

• Democratic
• Republican
• Wisconsin Green
• Libertarian

The race for President and Vice President, in the order found on the ballot:

• Barack Obama/Joe Biden (Democratic)
• John McCain/Sarah Palin (Republican)
• Cynthia McKinney/Rosa Clemente (Wisconsin Green)
• Bob Barr/Wayne A. Root (Libertarian)
• Brian Moore/Stewart A. Alexander (Socialist Party USA)
• Gloria LaRiva/Robert Moses (Party for Socialism, & Liberation)
• Ralph Nader/Matt Gonzalez (Independent)
• Chuck Baldwin/Darrell L. Castle (Constitution Party)
• Jeffrey J. Wamboldt/David J. Klimisch (We, the People)
• Write-in________________

Representative in Congress District 5, in the order found on the ballot:

• F. James Sensenbrenner, Jr. (Republican)
• Robert R. Raymond (Independent)
• Write-in________________

State Senator District 8, in the order found on the ballot:

• Sheldon A. Wasserman (Democratic)
• Alberta Darling (Republican)
• Write-in________________

Representative to the Assembly District 24, in the order found on the ballot:

• Charlene S. Brady (Democratic)
• Dan Knodl (Republican)
• Write-in________________

District Attorney:

• Todd K. Martens (Republican)
• Write-in________________

County Clerk:

• Brenda J. Jaszewski (Republican)
• Write-in_________________

Treasurer:

• Janice Gettelman (Republican)
• Write-in_________________

Register of Deeds:

• Sharon Martin (Republican)
• Write-in_________________

Referendum - Germantown School District

Question #1:

Shall the following Initial Resolution be approved?

INITIAL RESOLUTION AUTHORIZING GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED $22,500,000

BE IT RESOLVED by the School Board of the Germantown School District, Washington County, Wisconsin that there shall be issued pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount not to exceed $22,500,000 for the public purpose of paying the cost of constructing a new elementary school on school district property next to Kinderberg Park; technology, safety and security initiatives District wide; and acquiring furnishings, fixtures and equipment.

Yes ____

No   ____

Question #2

Shall the following Resolution be approved?

RESOLUTION AUTHORIZING THE SCHOOL DISTRICT BUDGET TO EXCEED REVENUE LIMIT BY $500,000

FOR RECURRING PURPOSES

BE IT RESOLVED by the School Board of the Germantown School District, Washington County, Wisconsin that the revenues included in the School District budget for the 2010-2011 school year and thereafter be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $500,000 a year, for recurring purposes consisting of costs associated with the new elementary school.

Yes ____

No   ____

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The ballot is two-sided as you would expect from the many questions.

The Milwaukee Journal Sentinel featured an editorial this morning concerning the possibility that Germantown will pursue the secession effort from the Milwaukee Area Technical College district.  They spoke of 'outreach' by MATC and re-established their position that Germantown should remain in the MATC district.

The 'outreach' they spoke of consisted of the appointment of Victor Rossetti (then Superintendent of Germantown Schools) to a MATC Board vacancy, meetings held with Germantown officials, contribution of laptops to the library and a couple of 'free' programs.

This so-called 'outreach' seemed a lot like a feeble attempt to head off an embarrassing situation.  The addition of Mr. Rossetti did nothing to alter the course of MATC.  It continues to be, in my opinion, an out-of-control institution that answers to no one.  Germantown pays millions annually and we are supposed to take thirty laptops and shut our collective mouth.

The editors finally get to the last paragraph of this piece where they seem to catch a glimmer of a major reason for our angst.  They state, "And our guess is that until MATC does something to reduce its tax levy, not only will Germantown's efforts continue, but other communities may also start seriously considering secession."

The school board is scheduled to discuss this subject tonight.  I hope that it moves with all deliberate speed to push the secession from MATC.

The latest count on the race to replace Sue Jeskewitz is now standing at five.  Randy Melchert (R) and Jason LaSage (R) have been involved in our Assembly "Debate" series as you know.

The additional filed candidates are:

Ms. Charlene Brady (D), a Germantown resident who is currently serving on the Washington County Board of Supervisors

Mr. Torrey Lauer (D), a Germantown resident

Mr. Dan Knodl (R),  Germantown resident who is currently serving on the Washington County Board of Supervisors

We hope to obtain the agreement of the three additional candidates to participate in the Assembly "Debate" Blog series that has begun.  If one or more decide to do so, we'll ask them the same questions already published and print a 'catch-up' Blog to get all five on the same topics from that point forward.

There is still time for another candidate or two if I remember correctly.  I believe that July 8th is the final date for the Declaration of Candidacy filing.

We should have a spirited discussion as we move toward the primary election in early-September.

MATC has now ended the suspense.  Whew!  It has officially increased its tax take by the 4.9% that it miraculously managed to get down to from the original 'straw man' of 6.4%.  This codifies the fact that MATC's appetite for tax dollars has risen by some 30% over the past five years.  MATC's leadership, if it can be called that without demeaning the word, just can't seem to understand that, while it is impervious to the wants and needs of the citizenry it serves, it really has permitted its reach to exceed our grasp.

MATC strikes me as an iceberg looking for a ship to sink.  It is floating along with the tip showing while the bulk of the 'bloat' lies just under the waterline, out of sight and, too often, out of mind.  Until it hits the ship of taxpayers yet again.  The taxpayers on this 'ship of fools' have finally come to understand, at least in Germantown, that they would be better-served if they were permitted to disembark from the current ship that continues to be victimized by the MATC iceberg...year after year after year after year!

That disembarkation is, however, contingent on so many disparate factors as to seem nearly unachievable.  First and foremost is that failure to make the petition to the state technical college board seeking a move from MATC to another contiguous tech college district renders all the other points moot.  If that is filed, then we wait and see what the august state tech college board members decide is to be our fate.  The last such application was made in 2004 and was denied.  That doesn't necessarily mean that this petition would suffer the same fate...but it is probably a decent precursor.  The only other successful action of this nature involved Germantown's petition to be moved into the MATC district back in the early 1970s.  (Ironic, isn't it?)

Back to the basics, however.  This rate of increase could've been far better controlled if the governing board for MATC were subject to re-election.  It isn't.  It is subject only to the parochial appointment desires of MATC.  Talk about a great deal, huh?  If I'm going to be governed by someone, I'd love the opportunity to pick the person without any outside interference over things such as how effective they'd be in administering their responsibilities.  If I 'accidentally' picked someone that was in lock-step with my positions and goals, could I possibly be faulted?  Sure, but it would be meaningless because no one could do anything about it except maybe move away to escape.

Maybe more to the point, I could've used the euphemism of a polar ice mass, a glacier, grinding everything in its path into submission.  Pretty soon there'll be nothing left here to tax.  It'll have been destroyed by the taxes rendered.

I guess the good news is that you can't tax the same dollar for more than 100 cents, so there is some ultimate end point.  Yet, there are so many taxes being levied against each of our dollars that we get less and less while everything costs us more and more.

Maybe, IF we pursue the change in tech college districts, and IF the state tech college board approves, we can rid ourselves of MATC President Cole, his board and his kingdom of fire-breathing dragons that burn everything of value they can identify in their domain.

I believe a full scale audit of that institution is called for and I believe one or more of our elected officials at the state level needs to pick up that banner and carry it high for all to see.  This is way past the point of being mere Blog fodder, although it sure has been good for that!

The question for today in our 'debate' between candidates LaSage and Melchert is this:

What specific existing state programs can be cut to stop the ongoing issues of budget shortfalls?

LaSage:  The reason that I am running for State Assembly is to return the Republican Party back to being the party that stands for smaller government.  My philosophy of good government is one in which bureaucracy is reduced and local control is increased, which leads not only to a need for less tax revenue, but it returns control and ownership back to the local level, where the people that have first-hand experience with local needs reside.  So while I understand that this office carries a great deal of responsibility, it is not power that I seek, but rather empowerment for our citizenry.

Further, my core belief is that budgetary shortfalls occur because the state fails to operate like a business.  When examining a budget, a business looks at all programs that yield little value.  For example, ethanol has been proven to be an ineffective product and thus state subsidies to encourage its production should be abolished.  Gas blended with ethanol causes even more financial pain at the pump and reduces fuel economy.  Furthermore, taxpayer funded incentives to produce ethanol leads to a government sponsored heightened demand for corn, which in turn contributes to higher prices at the grocery store.  All of this for dubious positive environmental impact, as ethanol needs to be transported on trucks, which of course use gas.

Another item that needs to be addressed is wasteful pet pork project spending.  One example of such spending in the state budget would be $250,000 for a Hmong cultural center in La Crosse.  While I fully support and have worked for preserving cultural heritage in our community, this is simply absurd.  With the state's budget over 1600 pages long, examples such as these abound.

If a deficit still exists after such review, a business would also tell each of its departments to put together proposals that cut spending across-the-board.  Upon making this directive, bureaucratic administrators will say that taxpayers' most valued programs will need to be cut.  When this demagoguery occurs, your assemblyman should call them out on it, telling them to go back to the drawing board and work harder.

In the midst of cash flow problems, a business would also look at the revenue side of the equation.  Presidents ranging from Democrat John F. Kennedy to Republican Ronald Reagan understood that tax cuts for individuals and businesses spurs growth, creating jobs that in turn yield more tax revenue.  What has worked at the federal level (when employed) should be implemented in Wisconsin.  Thus, I support a lower gas tax, as well as individual and corporate income tax rate reductions.

Finally, rather than monolithically telling citizens every program I feel should be cut, I look forward to engaging in an ongoing dialogue with district residents who can share their experiences and frustrations with state government bureaucracy and excess spending.  You can reach me on either my cell phone: (262) 573-6360, or via emailing jason.lasage@gmail.com .  By working together to put Wisconsin on the right track, our collective 24th district voice will be heard.

* * * * * * * * * *

Melchert:  We need to seriously consider a spending freeze for the next biennium.  A spending freeze would keep existing government offices and services in place, but would prohibit new spending.  Rep. Pridemore states that "This budget could almost be balanced with an across the board spending freeze that would allow the level of expected revenue to catch up with spending without any of the tax increases that democrats are proposing."  (http://donpridemore.com/BudgetTaxes/IsNoBudgettheBestBudget/tabid/70/Default.aspx)  A spending freeze may be unpopular, but a $2.3 billion deficit is immoral.

In addition, the budget has grown so much that we need to re-examine every dollar of government spending.  While Wisconsin is already under a form of "base budget review reporting", we need to introduce a more aggressive culture of spending restraint.  Instead of simply justifying expenses, let's require agencies to rank their spending priorities.  What expenses would each department cut if they only had 90% of their existing budget?  Would we lose essential services or would the reduction even be noticed?  Let's have a televised hearing on Wisconsin Eye as we justify to the state why we are going to spend each dollar of the $20 billion of your money.  While Jack Welch was criticized for his cost-cutting, he took GE from a $14 billion market value in 1980 to $410 billion in 2004.

By re-evaluating every dollar of government spending and implementing a spending freeze, we can restore fiscal accountability.

Two candidates have declared, so far, for the Assembly 24th district seat being vacated by Sue Jeskewitz.  They are Republicans Randy Melchert and Jason LaSage.  I continue to hear that there will be other candidates declaring between now and the deadline on July 8th, however we want to begin the Assembly 'Debate' so as to help voters learn as much as possible about the candidates.  I have posed much the same questions to both candidates as were discussed in the Senate "Debate' series.

The initial question was this:  If you were to introduce yourself to a roomful of voters, what would you tell them of yourself?

Melchert:  I am Randy Melchert, and I am a 5th generation Menomonee Falls resident.  My great grandmother ran a small café near the corner of Main Street and Appleton Avenue.  My grandfather started his law practice near that same corner as well.  My mother practiced law there as well.  I have lived my entire life in this community and I enjoy it.  Except for one thing.

Taxes.  While we have "The Best Care in the Air" nearby, the Packers up the road, and a beautiful wonderland every winter, the tax situation in this state is hurting the families of the state.  The average Menomonee Falls family over the next ten years will send around $77,000 to Madison in state income and sales taxes.  In Germantown a little less, in Richfield a lot more.  We have the 7th highest state and local tax burden, the 8th highest gas tax, and the 11th worst business tax climate.  Unfortunately the tax bill may rise.  On top of our already large spending habit, we could have a $2.3 billion deficit.  That's $1,655 of debt for every family of four in the state.  We need change now.  We need legislators who are responsible, dependable, and accountable.

* * * * * * * * * *

LaSage:  I am a life-long resident, taxpayer and worker in the 24th district, truly grateful for the support I have received from this community throughout my entire life.  When I was a 5th grader at County Line School, residents, led by my Cub Scout Leader, Jim McNally, generously donated money to provide me with a scooter so that I would have a way to keep up with my friends.  At Kennedy Middle School, one of the many special teachers in my life, now principal, Steve Bold helped spark my interest in social studies by demonstrating how serving others is a rewarding enterprise.  While I was a high school student, area parents came to my aid, as I helped lead the way with a group of friends to promote drug and alcohol-free activities in the community through initiating Youth Future's 1st annual lock-in for middle school students-an event that recently celebrated its 14th year.

In 1998, residents embraced my eagerness for public service, by electing me to the Germantown School Board-an office I was re-elected to.  That same year, current outgoing state Representative Sue Jeskewitz was kind enough to take me to Madison for a day to see first-hand how state government works.  As a board member, the MacArthur Elementary School community welcomed me, as I tutored youngsters and volunteered at MacFest events.  I also worked with Keith Musolff's gifted and talented middle school students for two years.  Additionally, as I was focusing on my bachelor's degree in communication and political science from UW-Milwaukee, state Senator Alberta Darling gave me the opportunity to intern for her.

Menomonee Falls also accommodated me for four years at Guaranty Bank and six years at Strong Investments.  I have kept involved with area youth for the past six years (and counting) by part-time substitute teaching in the Menomonee Falls School District.  I am also thankful to have had the ability to learn even more about the area and enhance my leadership skills through participation in Leadership Germantown this past year.

Now, as a 24th district taxpayer and homeowner, I want to be your representative in the state Assembly, taking my rich experience from the area and championing our shared values-creating jobs through lower taxes, spending and regulation; working to achieve more local control of education and municipal government; addressing healthcare with free market, consumer solutions; protecting individual liberties-while being accessible and willing to listen to all constituents.  I realize that some politicians have the tendency to disappoint, letting the lure of outside money get in the way of doing the people's work.  Though, if given the opportunity to serve as your representative in Madison, I assure you that my values and character, my ties to the community, and my aspiration to deliver sound, conservative leadership are not for sale.

* * * * * * * * * *

As always, we thank both gentlemen for taking time to participate in this 'Debate' and welcome readers' questions for future 'Debates'.  Either email those or frame them as comments to this blog.

The move toward filing the documents necessary to seek secession from the Milwaukee Area Technical College tax district has begun to draw some debate amongst the politicos in Germantown.

Village President Kempinski has been quoted as being concerned with the seemingly slow movement in this process, and School Board President Erdmann says that we shouldn't worry because it is being taken up in July for ultimate filing in August.

Some have pointed to the earlier appointment of Superintendent Victor Rossetti as the death blow to any secession movement since Germantown is now directly represented on the MATC Board.

Mr. Rossetti will serve his last day as superintendent on June 30th.  What happens then?  Does he have to step down or is he permitted to serve out his term since he is then a 'former' superintendent.  What happens if he moves from the MATC district?  Is he immediately susceptible to removal if he doesn't resign?

Interesting questions all.  I have written earlier of some concern since the MATC discussion had been quiet for a seemingly long period of time.  Then we were advised that we shouldn't worry since the school board would resume its discussion in July. 

We are still a long way from the actual filing of documents and then we must await the decision of the state technical college board that is due within ninety days of the filing.  Then, even if we were to be successful...and that is far from a certainty...the actual secession wouldn't occur until the start of a new fiscal period for technical colleges.

And, of course, while this all plays out, we are being over-taxed and under-served by the money-eating monster that we know as MATC.

What we don't need are any artificial obstacles cropping up along the pathway to change.

MATC students along with all technical college and two-year college students in Wisconsin have a more difficult time gaining their education as the result of lenders leaving this marketplace.

MATC has nearly 5,300 students now at risk due to the fact that several lenders have decided to pull out of this market stating that it is unprofitable.  That supposedly is caused by too little money being borrowed for too short a time.

The total of loans that are affected by these pull-outs is more than $18 million, and involves five lenders for MATC students.

Several thoughts occur:

What other programs are available to these 5,300 students?  Supposedly there are from six to twenty other lenders available to the students if we are to believe the technical college system president, Daniel Clancy.  If that is the case, why would some big names pull out?  Those names included Chase, Citibank and TCF.  If there is money to be made, wouldn't they still want some of it?  Or is this indicative of some other more pervasive problem?

Will they qualify for replacement loans or is that really part of the problem that causes the lenders to want out?  Many of the students relying on these loans are low income people as you would presume could be the case.  It may not be possible for them to apply to other lenders and expect to be granted access to credit.  The federal government passed the College Cost Reduction and Access Act of 2007 and, contrary to what the name might suggest, this limited federal subsidies to those who lend money to students, and more than fifty such lenders left the market.  This suggests that we're talking about marginally-viable loans and that, without government guarantees, there will be fewer dollars available and those will go to better credit risks.

If there is a loss of significant numbers of MATC students, will MATC face up to the need to reduce budget?  There are nearly 5,300 students affected by this situation.  If half of those are unable to obtain different loans, there will likely be a similar number dropping out of MATC.  I don't know what the 'full time equivalent' student number is, but let's assume that these students are half-time.  So we would have a loss of half of the 5,300, or 2,650 and those would equate to 1,325 full time equivalent students.  That is about ten percent of the current total FTE students now attending MATC.  Will we see a ten percent reduction in the MATC budget?

Or, will MATC see this as forcing it to actually increase its tax take in order to offset the loss of student tuition?  Your guess is as good as mine, but I'll be amazed if we see a budget reduction as the result of this situation.  One cannot simply reduce staff because the student load has dropped, can one?  How does one manage to down-size when there are so many fixed costs, so many people relying on MATC for their livelihoods, so much left to do in the building of the empire?

What seems more likely is that this will be dragged out as alternatives are sought, and it will be talked about for awhile until we lose track of the issue.  Maybe state legislators will step up up and recommend new state guarantees.  After all, military veterans are given 100% tuition credits so it is only fair to begin providing everyone with 100% tuition to attend MATC.  It is only fair that MATC have this kind of support since the Milwaukee Public Schools are generating so few qualified graduates any longer.

The last paragraph was intended as 'tongue in cheek' in nature but I fear that it might be closer to reality than not. 

The president of the MATC teachers union, Michael Rosen, says he'll be in contact with Representative Gwen Moore (D-Milwaukee) to seek her help in assuring that students still have access to federal loans.  The dominoes have begun to fall and they threaten to crush us taxpayers yet again.  Why do they never topple in the other direction?

A name familiar to many Germantown people will become even more familiar.  Jason LeSage, a two-term Germantown school board member has filed as a Republican in the race for the 24th Assembly district seat.

In reading his press release, it appears we may have a choice between two conservative thinkers.  LeSage indicates that he favors lower taxes, fewer regulations and reduced government spending.

He also has agreed to participate in our 'debate' with Randy Melchert; as a matter of fact, he offered to participate since he claims to be a reader.  That may be the only soft spot we'll find in him :-)

He was an intern in Senator Alberta Darling's office, and holds a bachelor's degree in communications and political science from UW-Milwaukee.

We welcome Jason to the race and look forward to getting to know him and Randy Melchert better over the next few weeks and months.  I had actually wondered 'out loud' about Jason LeSage as a possible candidate over a cup of coffee with a friend the other day.

Will we find a Democrat candidate before this is all over?

Randall Melchert has announced that he is seeking election to the Assembly seat (24th District) being vacated by Sue Jeskewitz at the end of her current term.

He is the son of a prominent Menomonee Falls couple and the family has deep roots in the Falls.  Randy, as he calls himself, declares himself to be conservative and his stated positions suggest that he may be quite conservative.  His campaign site (www.randymelchert.com) contains position statements on a variety of subjects.  He is a member of the Waukesha Republican Party.

Among his areas of expertise is apparently that of debate skills.  That should serve him well in both his campaign and in the Assembly if he is victorious.

I have extended an invitation to him to engage readers by responding to questions that will be published on Curmudgeon's Corner much as we've begun doing in the Senate race.  I hope he will accept that invitation.

There is, so far, no indication of any opponents but that may develop over the coming weeks.

The MATC has developed yet another draft budget after the first such exercise produced the need for a 6.4% property tax increase (see Blog of April 23rd).  At the time of that budget draft, the governor apparently said he would not countenance such an increase.  MATC announced then that it would go back to the old drawing board and see what could be done to get down into the range of 'as little' as a 5.0% to 5.5% property tax increase.

Guess what?  They can now apparently declare victory in this onerous task since the finance committee is only proposing a revised draft budget that would consume another 4.9% increase in property taxes.  The proposed draft will come to a vote by the full board on May 27th.

MATC has developed budgets since 2004 that will have caused property tax increases of more than 30% if this draft is ultimately approved.

Has your personal income increased by 30% in the past four years?  Has your savings account grown by 30% in the past four years?  Has yours become a single income family instead of a dual income family in the past four years?  I doubt it.  But, if so, congratulations!  Even with such an increase, if that has happened for you, I'll wager that you have better places to put your hard-earned money.

The MATC finance committee says it has cut all it could cut from the budget.  Jeannette Bell, committee member and former West Allis mayor, was in favor of not only this 4.9% property tax increase, but also favors reducing the reserve account held by MATC which has been done as part of this draft. 

People costs are budgeted to increase significantly.  Wages and salaries will go up about $1.5 million.  Health care costs will rise by some $2 million.  Other 'fringe' benefits will add another $4.5 million, including  $2 million required to bring the recognition of accrued benefits onto the MATC books like any other 'business' must do today.  That is $2 million of 'funny money'; where else would we find accounting tricks employed if we were to subject this institution to the standards maintained by businesses?

I cannot accept the statement that MATC has cut 'everything possible' and still needs this kind of increase budget over budget.  The paragraph above suggests to me that people costs are way too high, and a very quick way to achieve reductions there is to have fewer people.  Maybe MATC should think about outsourcing certain functions.  Maybe they should think about 'tough love' negotiations with union representatives.  There are or ought to be limits even for tax-funded entities.

Maybe MATC needs to review its class demand and determine the bottom third by attendance and end those classes.  If there is insufficient demand, there is apparently not an identifiable 'significant' need.  MATC cannot be providing services to a market that doesn't exist in sufficient numbers to show demand.  That would free up space for other uses, and it would, or should, enable staff cuts that will reduce costs.

It is impossible to forget, in this debate over MATC, that there is a very real problem with the Milwaukee schools system and we must recognize that some of MATC's costs should rightfully be paid for by the Milwaukee school system since MATC is mopping up after that dismal performance.  Adult high school education classes and GED classes are an example of how the public education structure in Milwaukee fails its students and the residents of the community.  Interestingly enough, this may well be an intended consequence rather than an unintended consequence.  It gets non-Milwaukee taxpayers to pay more of the Milwaukee education costs than is already done through state tax distribution formula.

Finally, I suggest once again that MATC needs to clean up its many acts.  It needs to get out of the failed business incubator function.  It needs to quit building physical monuments to itself and its leaders.  It needs to look at sale and lease-back arrangements.  It needs to reduce staff. 

Frankly, it is becoming more and more apparent that significant leadership changes may be required, as well.  MATC leadership seems to be ignorant of the public's needs.  This is an institution answerable to no one other than the governor through his ability to appoint members to the state technical college board.  The state legislature and the governor must act to bring this renegade system under absolute control.  There must be a change in the manner in which the state board and the district boards are created; voters need to determine who sits on those boards.  The current incestuous approach simply doesn't work...for anyone other than the leaders and those who sit on the rubber stamp boards.

All this brings me to the next obvious question:  Where do we stand in the quest for permission to move to another technical college district?  There seems to have been a long delay in the process; maybe it is justified.  I hope it doesn't mean that the movement has been quietly put to sleep.

The next two questions in our 'debate' are posed below.  We'll reverse the order and feature Sen. Darling's responses to each question followed by Rep. Wasserman's responses.

What specific existing state programs can be cut to stop the ongoing issue of budget shortfalls?

Darling: 

During the 2003-05 budget process, I was the Senate Chair of the budget-writing Joint Committee on Finance.  In that budget, we cut spending on state government operations by 27.5%, without cutting core services such as programs upon which low-income citizens rely.

In addition to the types of spending cuts such as those made in that budget, it's worth discussing programs that were created or expanded in the state budget passed last fall.  In that budget, which I voted against, the Governor proposed increased spending of nearly $100 million of "general fund" revenue just for new or expanded programs.  Certainly each of those programs will will have supporters and the merit of this spending can be debated, but there ought to at least be a discussion on whether these spending increases can be set aside or delayed until we resolve the state's fiscal problems.

Earlier this May, the  Milwaukee Journal Sentinel ran an article about how some prison guards appear to be abusing the sick leave and overtime rules to inflate their salaries into the six figures.  Tightening up the sick leave and overtime policy at the Department of Corrections is just one specific example of where the state can still provide necessary services but at a lower cost to taxpayers.

Wasserman:

Instead of program closures we should have county closures.  There's no reason for Wisconsin to have 72 counties.  Counties are often just an extension of state government, and one of the primary reasons why taxes are so high in Wisconsin is because we have the third highest amount of government per capita in the nation.  For example, Appleton is in three counties; Wisconsin Dells is in four.  Bayside, in my district, is in two counties.  That means keeping multiple sets of tax records and voting lists and keeping track of different court systems, highway departments, sheriff's and veterans' offices.  I proposed legislation to downsize and streamline government by reducing the number of counties to 18 or less, a 75% reduction that would save taxpayers tens of millions of dollars.  Creating new county lines that do not divide communities artificially will consolidate services by ensuring that only one county serves each city, village or town.  It's time we changed our government structure from an 1848 model to one that meets the needs of the 21st century.

* * * * * * * * * * *

Do you support the repeal of state minimum mark-up laws?  If so, why and if not, why not?

Darling:

Yes.  The mandatory minimum markup on gasoline was enacted in Wisconsin in the 1930s to prevent large conglomerates from entering the gasoline market and driving "ma and pa shops" out of business.  The minimum markup law requires gas retailers to mark up the price of gas by 9.18%.  The Federal Trade Commission and economists have suggested the law restricts competition, hurts consumers and drives up the cost of gas.  This antiquated law makes it illegal for Wisconsin gas retailers to offer discounts on gasoline.

U.S. Magistrate Judge William Callahan ruled in October 2007 that Wisconsin's minimum markup law violates federal anti-trust laws.  However, he did not issue an injunction against the state's law, so the law is still in place until the Legislature acts to repeal it.  I am coauthor of a bill that would repeal the minimum markup law, but the session ended in March without a vote on the bill.

Wasserman:

I have voted for every single repeal of the minimum mark-up law since I've been in the legislature.  I have been very frustrated by legislators in both the Republican and Democratic party who would rather talk about the free market than support it and have refused to take up this issue.

In addition to supporting a full repeal, I introduced legislation that would repeal the minimum mark-up on prescription drugs.  Recently Wal-Mart and Target expanded their $4 a month discount drug programs, but the minimum mark-up law prevents such programs from taking full effect in Wisconsin.  You might think we'd have to go to Canada to buy cheap drugs but no, all we have to do is go to Illinois, where blood pressure medication that costs $28 here sells for $4 there.  It's bad enough that we're paying more for gas because of the minimum mark-up law, but paying more for medication becomes a life and death issue when people are facing such tough times with their budgets.  The minimum mark-up law in all forms has to go, but let's begin with my proposal, which will drastically reduce the cost of healthcare in Wisconsin.

* * * * * * * * * *

My thanks to both Sen. Darling and Rep. Wasserman for making this forum possible.  We have more questions already answered and will produce another of these 'debates' in the next week or so.

In the meantime, please help us by sending you questions or subjects you'd like to see addressed, and I'll gather the information from both the incumbent and the challenger so that all can share in the answers.  You can do so in the form of comments tied to this Blog or simply by clicking the email link at the top of this Blog to reach me that way.

I was very surprised to learn that Rep. Sue Jeskewitz had announced that she would not be a candidate for the 24th District seat in the Assembly this fall.  She will have served for 12 years, is 66 (although she doesn't look more than 55) and apparently has just decided it is time to stay home.  She is part of a 'political' family, so I know this decision could not have been taken lightly.

Some of her positions caused me angst as readers know.  I have heard others refer to her as a RINO (Republican In Name Only) and there have been those times when I felt that way as various issues came up and decisions were made.  I am obviously more conservative than she has been.  I understood that and still made visits to her offices in Madison whenever I was part of a lobbying group.  She and her staff were always very considerate although it is difficult to tell what the true position of virtually any politician is by simply visiting their office and chatting on talking points for 5 to 10 minutes.

There are probably several people out today with nomination papers seeking signatures that will enable them to run.  There may be some behind the scenes activity that has already led to a 'chosen one' on the Republican side.  I am not privy to any of that information.  There are certainly those in the Democrat party that are working feverishly to secure the best possible candidate since this seat had been quite safe for Rep. Jeskewitz.

I do hope that we will be given a candidate for whom we can vote that is decidedly conservative.  The Assembly must stay Republican if we conservatives are to have any hope of keeping the state on something even remotely resembling the straight and narrow we would prefer.  Can you imagine the damage that would've been done in the past couple of sessions if both the Senate and the Assembly had been under Democrat control with Governor "taxalot" in office?

I received a telephone call from Katie Prown late Friday afternoon.  I know...I had no idea who she was either.  But, she advised me that she was calling on behalf of Rep. Wasserman and virtually pleaded for me to permit him to participate in the 'debate' with Sen. Darling.  She apologized for him, said he had been so busy knocking on doors (up to something like 12,905 now), had received such great acceptance....blah, blah blah.  He was obviously too busy to call me himself...or too embarrassed if that is possible for a politician.

She indicated that she is his newly hired campaign manager.  Her email said, "I can assure you that you will receive prompt and timely responses in the future" and I wondered how she could assure me that he would change since she had just assumed her role, but that is for another day.  I told her that I was very disappointed in his performance to this point and that, if I relented, this would be the absolute last time there would be any slack cut for Rep. Wasserman.

She did precede the call with her email to which was attached the responses that I've sought for the past months.  I have her email address and her telephone numbers.  So, we're going to try this one more time.  The series will kick off early this coming week and I hope it will prove informative.

I decided to 'give the guy a break' since a one-person 'debate' isn't terribly stimulating for readers.