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News & Press: Legislative Updates

2017-19 WI State Budget Update

Friday, September 8, 2017   (0 Comments)
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Update from Tim Hoven, Hoven Consulting

In February, Governor Scott Walker introduced his 2017-19 biennial budget proposal.

On May 1, the Joint Committee on Finance (JFC) began voting on the budget proposal agency by agency. Yesterday, on September 7, the JFC committee finished voting on the amended budget. By a vote of 12 to 4, with all Republican members voting in favor of passage while the four democrat members voted against passage. In total, the voting process took over 4 months, which is past the statutory deadline of June 31, 2017. A number of reasons for the delay in passing the budget proposal included Republican legislative leaders in both the Assembly and Senate were in disagreement over education and transportation funding.

In total, the state budget spends roughly $76 billion on state programs over the next two years. During the entirety of budget deliberations, the committee amended and deleted specific initiatives in the governor's proposal.

Below is a summary of the final motions that passed the JFC committee yesterday as they relate to issues important to WMGMA. The final three motions included Shared Revenue/Local Government #418, General Fund/Revenue#419 and Budget Modifications #421. View the language for motion 419 and motion 421

Motion #418-Shared Revenue/Local Government

Page 1, #1-- Personal Property Tax Exemption-Cut local property taxes on business machinery. “For purposes of the exemption, define machinery as structure or assemblage of parts that transmits force, motion, or energy from one part to another in a predetermined way by electrical, mechanical or chemical means and specify that machinery does not include a building.”

Motion #419-General Fund/Revenue

Page 4, #12-Office of the Inspector General(OIG) to audit MA reimbursement for family planning services provided by certain providers. “Requires the DHS, OIG to conduct an audit of all family planning services reimbursements paid to covered entities under the medical assistance program for the period Jan. 1 2013 to December 31, 2016”. The team at Hoven Consulting will be conducting further research on this issue going forward and provide updates when available.

Page 6, #29--Penalty for over collection of sales tax. Delete the Gov. recommendation to provide a penalty for seller’s over collection of sales tax and failure to return refunded sales tax to buyer.

Motion #421-Budget Modifications

Page 5, #14-Medical Assistance coverage of complex rehabilitation technology. “Establish complex rehabilitation technology as a MA benefit. Specify that durable medical equipment that is considered complex rehabilitation technology is covered service under the medical assistance MA program”. The team at Hoven Consulting will be conducting further research on this issue going forward and provide updates when available. .

Page 7, #15-Ambulatory surgical center assessment and access payments under medical assistance. Modify the JFC previous action and adopt the Governor’s position with respect to the ambulatory surgical center (ASC) assessment and ASC access payments, which would eliminate both the assessment and the access payments.

The amended budget proposal now goes before the State Legislature. Both the State Senate and Assembly must pass the bill, and the governor must sign it, before it becomes law. This is expected to take place in the next few weeks.

The government affairs team at Hoven Consulting will provide updates on the process as they become available.  

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