The Good: Both houses approved language enabling creation of a Dane County Regional Transit Authority.  Passage of enabling legislation will allow our region to continue an open, productive public discussion on regional transportation.  More good news came when both houses removed language that would have changed Wisconsin’s joint and several liability laws, putting businesses, governments, health care providers and everyone else deemed a “deep pocket” at risk because they have financial resources or insurance.

The Bad: The Joint Committee on Finance attempted to resolve an issue of critical importance to non-profits that provide housing for low-income individuals and families by clarifying state law to retain their tax exempt status, which was lost based on a December 2007 Dane County Circuit Court ruling.  Without this property tax exemption, most if not all of these non-profit entities would no longer be able to afford to provide low-income housing. Unfortunately, the resolution was taken out of the Assembly version.  Given the critical nature of this issue as well as municipal budget assessment timelines, the Legislature needs to include corrective language in the budget bill, or introduce and pass stand-alone legislation before the end of Summer.  Another provision facing criticism from statewide businesses associations is a provision in the Senate budget that would eliminate tax exemptions on capital gains.  Currently, investors can exclude 60% of capital gains from taxes.  The Governor proposed lowering the exemption to 40%, and the State Senate eliminated it entirely, which would cost investors nearly $500 million.     

The Ugly: Of particular concern to GMCC members is a budget item approved in the Senate budget that would permanently index the state’s minimum wage to inflation.  This policy item was not included in any of the previous budget proposals (Governor, Joint Finance or Assembly), and could wreak havoc on business in Wisconsin if passed.  The proposal would automatically adjust the minimum wage regardless of current state or local economic conditions.

Your elected officials need to understand the real financial harm that automatic minimum wage indexing would have on your business.   

Please contact your State Senator and Representative today and urge them to support removing the minimum wage index provision from the state budget bill! 

Click here to find out who your state legislators are.  It is important to explain the economic reality this proposal would have on your business.  Here are some other points to consider:

·        Before the minimum wage is adjusted, statewide economic factors should be reviewed and discussed to ensure that a rate increase is the best way to impact the financial status of low-skilled workers, as opposed to providing additional funding for job training or temporary living assistance. 

·        The indexing formula does not consider Wisconsin’s statewide economy or its regional or metropolitan economies and therefore is not a true indicator of need. 

·        Indexing of the minimum wage will result in reduced job growth, fewer job opportunities for limited skilled workers, less entry level employment, and create constant inflationary pressure throughout the states’ economy.

·        You are strongly encouraged to remove the minimum wage index provision from the state budget bill.