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".

I opined a few weeks ago about the state of newspapers across our country.  Much has gone into causing the problems faced by most of the major newspapers in the United States.  Increased costs for much of what makes up a newspaper are largely the fault of this dilemma.

This morning the "new" Milwaukee Journal Sentinel debuted in its 'smaller' size.  The Business section has been reduced largely be eliminating the full financial report in favor of stocks of local interest.  The 'B' section that was formerly tailored to various locales has been changed to the "Local" section providing a little news about most of the outlying area.  Other changes have been made but these struck me as the most visible.

Marty Kaiser, Editor, was featured on the cover page explaining the changes and the reasons for those changes.  The essence is that revenues continue to decline while expenses continue to climb.  That combination obviously cannot be permitted to continue if the newspaper is to have any hope of survival.

My intent is not to "pick on" newspapers in general or the Journal Sentinel in particular.  I believe that Journal Sentinel leaders are doing that which they think will help stem the tide of red ink.  I'm not sure they have any other choices.  Two rounds of voluntary buy-outs and involuntary lay-offs have already come and gone.  I suspect that at least one more will come again before this has been finished.  Whether or not those actions will be good or bad ultimately remains to be seen.

Similarly, the reduction in size/content may or may not be part of the solution.  It could prove to have been part of the problem before all is said and done.

This effort is meant to recognize that much of the content has been available on websites for some time.  It recognizes that advertising dollars are moving to where the readers are and leaving those places where readers are frequenting less and less.

I wonder if the latest changes in content on the printed page will help stem the flow or if it will end up exacerbating the problem by moving more people to the Internet more quickly?

We'll not know that answer for sometime, but I suspect that we will ultimately learn the answer.  I am happy about one thing:  I do not have the responsibilities of trying to operate a newspaper on my shoulders.  I would not wish that on my enemy at this point in time.

Traffic Signals...

It looks as though the traffic signals in front of the new Sendik's Food Market should be in operation by the time of the store's Grand Opening on September 4th at 10:00AM.  The work seems to have been progressing very nicely.

That intersection appears to have become more dangerous even though the store is not yet open.  Likely the construction itself has caused much of that with restricted visibility once in awhile coupled with gawkers looking at the new lights, etc.

Having seen their advertisements for some of their other locations, I confess that I'm really excited to see our new shopping venue!  Of course, Pick 'n Save will get better, too, or it'll begin to slip in volume.

River Lane...

Similarly, it looks as though River Lane is about to be opened with the second layer of bituminous topping having gone down and the paint striping being completed.  If the traffic light work involved with that reconstruction is progressing at similar or faster rates, then opening day on Tuesday should be fine.

Hats off to the contractors and village officials for pushing both projects along so nicely.  Weather has certainly cooperated.

Waste Management...

I note that our garbage, normally picked up on Friday of each week has been picked up.  That would appear to indicate that the company has recovered, at least so far as Germantown is concerned, since it seemed to be at least a day or more behind as of yesterday afternoon.

On that same note, a special Village Board meeting has been called for Tuesday afternoon at 5:30PM with one of the latest agenda items to be added that of a discussion about the termination of the Waste Management contract which would permit retaining of Veolia as the replacement firm for Germantown.  I understand this was added at the direction of President Kempinski.

I detected no hint of this during my visit yesterday with President Kempinski who told me that he had talked with Veolia but mentioned nothing of any intent to pursue this action in that conversation.

I may have my facts incorrect, and trust that I'll be corrected if that is the case, but I believe the village's agreement with Waste Management requires a period of five days during which garbage hasn't been picked up before the village has the ability to terminate the agreement.

Harley Visitors...

Our guests from all over the globe seem to be having a great time, and have been very nice visitors.  Fortunately it seems that most drivers have adopted extra courtesies and vigilence...and maybe just a little more patience.

All in all, we seem to be headed for another tremendously successful Harley Davidson Anniversary celebration.  I've not seen any estimates of the economic impact for the area but it has to be in the multiple millions of dollars.

News reports indicate that Village President Tom Kempinski is considering asking the Board to approve a referendum that would appear on either the September ballot or the November ballot.  This referendum would deal with just how Germantown voters desire to fund some $2,000,000 per year in road repairs, if they desire to do so.  The choices apparently would be borrowing, increasing property taxes or a combination of both or none.

The referendum could be advisory or binding in nature.  Obviously, if advisory, the Board would then decide what, if any action it would take, but it would do so with some idea of the public's mood.  If binding, the results would stand as the electorate decided at least until the Board was reconstituted or until the Board found some other approach to achieve the end if that were possible.

If property taxes were increased by $2,000,000 annually, the increase in village taxes over 2008 would be some 20.5% without consideration for any other line item increases in the village budget. It is unrealistic to assume that all other expenses will remain constant.  If the amount were to be borrowed, the debt service would be part of the tax increase each year so that both the amount spent each year plus interest would be added to the tax bills over a number of years.

The village's portion of our total tax bill in 2008 was 24.52%; that share would climb to 30.67% if all other taxing units remained at 2008 levels which, unfortunately, is very unlikely.  The actual increase in total property taxes due to the village's portion of the total could be something in the range of 1% to 2% I would suspect.

Use of a referendum will please some people and anger others.  Some will say that this gives the voter the direct voice on specific items that they otherwise lack in representative government.  Others will say the referendum gives the Board a place to hide; still others will say that there should be no referendum.

There are several questions that come to mind about which you may wish to make your views known:

1.  Do we need $2 million worth of road repair every year?  For how many years?

2.  What portion of the village's road surfaces need to be repaired today? 

3.  Have past Boards avoided their responsibilities and not funded road repairs properly?

4.  Is a referendum a good idea or is it a convenient tool for a Board that doesn't wish to stake out a position that may be very unpopular?

5.  If this referendum appears on the ballot, what impact will that have on any issue the School Board may advance at the same time?

6.  If we are to see a referendum, should it be simply an advisory referendum or should it bind the Board to a specific direction?

What think you G'town?

Barley Pop Pub closing?  Say it ain't so! 

I had the opportunity to get clarification on the story below from the Village Clerk several hours after posting the blog below.  She advised that the license for the Barley Pop Pub had been renewed earlier this month along with all the other establishments' licenses.  The issue concerning taxes owed must be resolved by the owners not later than June 30th according to Village Ordinance to prevent the loss of the current license.  Any establishment that has a liquor license must remain in good standing so far as building codes, taxes and fees and so on in order to avoid the suspension or loss of the license.  Village officials are powerless to make any concessions since the ordinance governs the situation.  Discussion did occur on the subject of amending the ordinance, however that did not result in any action being taken. 

My thanks to the Village Clerk for her clarification.

* * * * * * * * * * 

The liquor license of the Barley Pop is being threatened with non-renewal by the village unless back property taxes are paid by the end of June, and the owners say the Barley Pop may close if that happens.

The Barley Pop has been a fixture for nearly as long as I can remember.  I wonder how many of G'town's citizens have been in the Barley Pop at one time or another?  Probably a significant percentage and probably more than just once in awhile.

I don't recall hearing or reading of the occasional bar fight that I see reported every so often for other G'town establishments.  My food has always tasted fine; the portions are good; it isn't a gourmet stop, but it is a really good pub.  The non-smoking accommodations certainly point the way for an alternative to banning all smoking and the owners did that because they knew it would cater to most all the public.  I've always thought of the Barley Pop as being a well run business.

This business has been around for more than two decades.  I've not heard of this type of situation (unpaid taxes) regarding this business before.  I wonder just what the problem could be?  Could it be that the rising cost of food has slowed the business?  Could the cost of gasoline have depressed the business?  Every time I go into a grocery store, I'm reminded that food costs are rising regularly, and I know this has hit restaurants, as well.  It is not at all unusual to sit down and to be handed a freshly printed menu...with new higher prices.

We don't eat out as often as we did because the costs are going up and our budget is squeezed by other needs.  Maybe that has been the primary cause, or a major part of the problem, at least.

I hope that the owners and the village trustees can resolve this issue before we lose the Barley Pop.  It has become one of the icons of Germantown.  Our 'downtown' area doesn't need more empty store fronts.  Blight tends to lead to more blight and that isn't the mark of one of the thirty best places to live.

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.

Communities are fragile.  They are interdependent on so many disparate pieces as to be capable of being degraded quickly.  Maybe we can learn something from this morning's General Motors announcement concerning Janesville.

General Motors is closing the Janesville GM plant and that will put something in the range of 2,600 to 2,800 employees out of work.  This could happen as late as 2010 or as soon as next week, dependent only upon the marketplace.  There have already been over 2,000 jobs lost simply as the result of GM's slowdown in production.  This announcement will, unfortunately, cause many, many more announcements over the next months.

The economy of South Central Wisconsin is at risk.  Chrysler operates a similar facility in Belvidere, IL and many Wisconsinites work at that facility, too.

Communities either have or do not have spirit and vitality about them.  Those that do not seem to fit into one or the other categories are simply in transit from one to the other.  There can be no indefinite in-between in the life of communities.

Communities can move all too quickly from vitality to despair.  The trip back to vitality from despair takes much longer...often several decades if that quickly.

Germantown is not immune.  No matter that it was determined one of the thirty best places to live.  That distinction is solely in the eye of the beholder.  If the spirit of a community is broken, you can see that by simply driving through.  And, driving through is what prospective new inhabitants and prospective new employers do in communities without vitality.

I had the opportunity to drive into Beloit several weeks ago.  It had been years since I drove into Beloit; it was always easier and, frankly, more pleasant to drive around Beloit.  But this time, I had to go to the heart of the community...and I was amazed at what I saw and what I felt.  Beloit had re-captured the spirit that had eluded it most of my adult lifetime, and it was palpable.  It was present where ever I looked.  It was present in the lively steps of its citizens.  It was present in the well-kept boulevards, and in the pride taken by its residents in their homes.

If you can imagine a brightly colored balloon that is full of air, and then picture that same balloon as it has lost some of its air pressure, that might be the exercise we need to take daily as we think about our own community.  Those full, bright balloons exude their own sense of well-being.  And the half-full balloons send out their message, as well.

I hope that Germantown hasn't started losing air.  If I missed it and the air is already beginning to leave our balloon, then I hope we'll realize that something needs to change so that we can restore our fullness and brightness before we've lost too much air pressure. 

It is not possible to touch politics, but it is possible to sense ebbs and flows caused by changing political scenes.  It is the addition or subtraction of spirit.  It is the spirit of the community that determines its future.  Communities with spirit just seem to overcome the obstacles put in their way, while those that lose their spirit go into nearly perpetual decline.

I hope that our spirit isn't being eroded with the political in-fighting that seems to be flourishing today.

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 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 received an email from a regular reader this morning asking me what my opinion was concerning the announcement that the elementary school bond issue will be back on the November ballot.  He forced me to give thought to something I had managed to push from my mind for about a week, but that hiatus is over.

First, let me say that I think the district has had a poor public relations week.  The announcement that the bond issue, apparently unchanged, is expected to be on the ballot in November was probably awkward enough.  Then, we learn of the expected budget deficit for the current year, and we learn that the proposed budget will require a property tax increase if approved as explained.

I've not engaged anyone from the district on the subject of the reappearance of the bond issue, and have had no contact regarding budget shortfalls.

There was some analysis done as the result of the spring election where the bond issue was defeated.  That apparently showed some interesting results when reviewed area by area.  Remember that the Germantown School District encompasses more than simply the Village of Germantown.  The most recent election apparently showed results indicating that some non-village areas were quite opposed while the village proper was more evenly split, or at least that is my recollection.

My supposition, and it is only that, is this:  November will see a significantly higher turn-out of voters.  The district may have reasoned that this will be a 'fairer' review of the proposal and it may have reasoned that the outlying non-village areas' votes might be outweighed by greater village turn-out, desiring to take its chances on that populations' decision this time around.

Beyond this, the budget deficit is understandable given the economic conditions we're experiencing.  Energy and food costs are up significantly and those are the primary areas identified as the 'culprits' in the budget shortfall.  The fact that preliminary budget numbers for the next period are reflecting the need for greater revenue is not surprising on its face.  The amount of the deficit and the amount of the need for the next period will be of more interest.  The tactics employed by the school board and the district administration in meeting these issues will be very informative.  We are in a superintendent 'lame duck' position and the new person selected will have had little, if any, substantial input by the time hiring decisions have been taken.

I must say that I'm disappointed with this confluence of events.  I don't know what, if any, press releases may have been issued on the bond issue decision.  If there were such releases, there is little indication of that fact since the news was simply dropped in our laps without forewarning or preparation for receipt of the news.  Then, to see the news about the current and prospective budgets pop up within days, citizens were subjected to what in our small world is tantamount to a 'media blitz'.

I fear that some significant damage has been done to the district's credibility on both issues whether or not deserved.  Those opposed to the bond issue have a ready-made counter offensive dropped into their laps.  Those who favored the bond issue have been embarrassed, self included.

All the old bromides about school boards being more interested in buildings than students, etc., etc. will be front and center during the election season.  And, frankly, the district has brought that unto itself whether through arrogance or ignorance or simple mishandling.

SynergyHealth made its decision to go with the proposal from Progressive Health (Froedtert & Community Health and Columbia St. Mary's) as I had predicted a couple of months earlier.  It isn't that I'm such a great predictor.  This was the most logical decision that could've been taken given the circumstances that existed.

This means that there is a new alliance that will encompass much of the northern two-thirds of the greater Milwaukee market including portions of Milwaukee, Waukesha, Washington and Ozaukee counties.  Doctors in the West Bend Clinic were firmly opposed to becoming a part of the Aurora system.  Aurora worked for the better part of a year to try to convince the SynergyHealth group that it was their best choice.

In the end, Aurora pulled its proposals from the table when it became obvious they were not going to prevail (better to pull out than be beaten).

So, what does this mean for those of us in the West Bend/Jackson/Hartford/Germantown/Menomonee Falls area?  It means that we continue to have a choice in our healthcare system.  It means there are now essentially three systems serving our marketplace: ProHealth based in Waukesha (Medical Associates), Aurora (Advanced Healthcare) and Froedtert & Community.  Our community-based hospitals are given a new opportunity to maintain and grow their service offerings.  We will be able to take advantage of some of the best healthcare in the United States.

What will it cost us?  That remains to be seen.  Aurora is rapidly increasing its presence with new buildings and new hospitals.  Many of those are, in my opinion, unnecessary duplications that mean we're being 'over built'.  Decades ago, a Certificate of Need had to be completed and approved by state officials before a new healthcare facility could be built.  That was known as CON in 'governmentese'.  Since that law was repealed, the only things really necessary are local approvals and the ability to finance the project.

Examples would be the new Aurora complex being built in the Town of Summit between ProHealth's hospitals in Waukesha and Oconomowoc, and the new Grafton location being built less than ten miles away from a new Columbia St. Mary's facility.  The debt service is large and that means that rates may have to be increased to support the needs that were created by building.

Obviously, the remaining healthcare players are fighting for their continued existence.  But we healthcare consumers pay the price for those battles, so we have to remain aware and we need to become much better buyers of healthcare.  Too many people are blaming insurance companies for high health insurance costs when the real problem is the high cost of health care.  These kinds of building campaigns do nothing but hurt us more in my opinion. 

One of Germantown's commercial success stories has to be the company known as Cambridge Major Laboratories.  Its CEO is Michael Major and his company has been over-achieving since its founding by Major in 1999.  This company, now international in scope, is on the top of the wave of pharmaceutical company outsourcing.  The Milwaukee Journal Sentinel business section discusses the firm and its new expansion plans today.

The ground breaking ceremony will occur on June 5th and will feature a distinguished guest as the result of another Germantown resident's outreach.  Washington County Supervisor Peter Sorce issued an invitation to Governor Doyle asking that he attend this ceremony and has received confirmation from the Governor's office that the Governor will make the trip to Germantown to be present when ground is officially broken for the new Cambridge Major plant expansion.  Sorce has been active in and around Germantown having served as a Village Trustee and now as a County Supervisor.

We are well-served, in my opinion, by Pete Sorce's presence and his representation.  I may not always agree with his position, but I do recognize that he has Germantown's and Washington County's best interests at heart.

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.

It is expected that Corsair Capital, a New York based private equity group will sign a deal with National City today that will affect Germantown.  You've guessed by now, if you're a regular reader, that the effect is to keep our newest bank name, National City Bank, in Germantown, at least for the foreseeable future.  Corsair and some other individual investors will put around $6 billion into National City at a share price of some $5.00.

We earlier traced the evolution from St. Francis Bank to Mid America Bank to National City Bank in the first Blog that discussed the plight of National City.  It's shares closed at $8.33 on Friday and that marked a 52 week decline in value of 78%.

So, it appears that my friendly, efficient bankers in Germantown will continue to be there when I need them.  I'm happy for them and for me and the rest of their customers.  Changing banks is a nuisance.  If there are direct deposits, those must be changed.  If there are automatic withdrawls, those must be changed.  New checks and bank cards must be obtained, and decisions as to which of the numerous accounts offered is the right account need to be made.  If Internet banking is involved, there is another level of change, and if telephone banking is involved, yet another level.

We sometimes are oblivious to the things that happen on Wall Street and the world but many of those distant happenings directly involve us in one or another ways.  This whole subject has been one that most of us has not followed...and yet it has an impact on our nice little village.  Our economy has truly become a global economy whether for the better or not.  IBM sold its laptop computer business to a company in China.  The Jaguar and Range Rover nameplates are now owned by a company in India.  GM is building a new engine plant in Brazil.  Medical x-rays are read off shore.  When the Far East markets hiccup, Wall Street flinches.  The demand for gasoline and diesel fuel in India and China have thrown our prices into a seemingly unending upward spiral.

Perhaps more important, these changes have occurred in a relatively short span of time..in decades rather than centuries.

Our politicians are dancing along merrily plotting to see just how they can use your money and mine to reward less-than-desirable behavior.  They have forgotten, if ever they knew, that when we reward bad behavior, we get more bad behavior.  On the other hand, if we permit some kind of 'pain' to follow poor decisions, we tend to see modified behavior.

What has this to do with the sub-prime mortgage debacle?  Plenty!

First, our government swooped in to help save the mortgage bankers that had encouraged this irrational activity given the lax oversight of federal agencies.  And, it continues down that same path.  What lesson will be learned from this?  Simple: we can continue to do stupid things with money because the government will bail us out just like always.

Second, the politicians fell all over themselves to earn 'points' (also known as votes) from the people who had over-extended and gotten themselves into this mess voluntarily.

What will be learned when a couple earning less than necessary to support the payments, is 'given' a mortgage loan using the adjustable rate feature in spite of credit scoring?  And who, when the rates went up, were given a 'pass' on the deal?  The lesson being taken away when there is no 'pain' associated with the decision is this:  it's okay to do things like this because the government won't let us hurt ourselves!

The answer is that each of us has to pay the price for our decisions.  If we are not forced to pay a price, we will repeat the same behavior or worse.  We can all remember that 'little urchin' in the neighborhood who could do no wrong in the eyes of his or her parents.  They were the worst little kids in the neighborhood.  We can probably each remember how we 'got away' with something, and we can likely remember just how that experience tempted us to continue doing whatever it was that we had 'gotten away with'.

Why is it that politicians think the way too many of them do in these situations?  Because, if they can succeed in getting the majority to think like this, they will have achieved their goal.  What is that goal?  The goal is to get the majority to believe that without big government involved in every decision we take in our daily lives, even if we hurt ourselves, it doesn't matter; it doesn't matter because big government is there looking out for our best interests. 

This is a decidedly liberal point of view.  We don't often hear conservatives espousing this kind of action.  The solution to this 'slippery slope' mentality seems obvious to me: elect conservatives and re-elect other conservatives if the first group loses sight of reality from having been in office in Germantown, West Bend, Madison or Washington for too many terms.  This is how we influence the direction of our community, our county. our state and our country in a representative form of government!

Our ignoring such problems is how the politicians who want the 'nanny' state to evolve past the tipping point get that to happen.  And it will happen at the rate our country is moving down that pathway.  Once it happens, there will be no turning back.

Am I the only person who is exasperated with our state and national political/tax scene?  I doubt that very much. 

As I watch the 'Amazing Obama' versus 'Deserving Hillary' race unfold, I see a real race as to which can promise greater tax increases/profit confiscation to the tune of TRILLIONS of dollars.  What is even more amazing to me is the blatant approach both are taking...coupled with the seeming lack of perception their two groups of supporters have of what they're getting into.  These two people are socialist/populists so far as I can see.  There is the inevitable class warfare coupled with promises that neither will ever be able to keep...thank goodness!  And, it seems, with every passing day, that Barack Obama will wrest this nomination away from Hillary Clinton unless the Clinton 'machine' is able to do him in...and that cannot be discounted.

Then, I read of our state's revenue collection shortfalls totaling something in the range of $650 Million by the middle of next year.  And, I hear the 'solutions' offered by Governor Doyle and by the Republicans.

On the one hand, we are collecting $650 Million less than projected due to an economic downturn.  That economic downturn is, in large part, caused by heavy taxation in our state.  We have all learned, if we'll admit it to ourselves, that lower tax rates increase revenue collections since they stimulate the economy.  Let us keep more of what we earn, and we'll find ways to earn even more than we were before, and tax collections increase.

Governor Doyle would combine his already once-defeated tax on hospitals (which will exacerbate the health care cost crisis), and delay some of the tax decreases that were part of the so-called 'bipartisan' budget passed just a few short months ago.  In essence, his solution is to raise taxes to get us out of our economic slump.

Fortunately, the Republicans are, so far at least, saying there can be no new taxes and there must be spending reductions instead.  Sen. Alberta Darling is releasing today her "Stay In Wisconsin" program.  That program represents her agenda aimed at keeping seniors, students and working families in Wisconsin.  We talked just days ago about Wisconsin's outflow of population.  Her package of proposals would eliminate the Estate Tax, increase the Property Tax Credit for seniors, eliminate tax on Social Security income, increase Tax Exemption limits, make Student Loan interest fully deductible, along with a few other things including evidenced-based health care reform. 

Probably the biggest boost would come from what Sen. Darling calls 'Invest Wisconsin 2.0'.  That includes the following:

• a 1% across the board income tax cut for all Wisconsin taxpayers
• Capital Gains reinvestment
• Angel Investment tax credit
• Education tax credit
• Green Data Center tax credit
• NanoSTEM research initiative
• Nanotechnology tax credit
• Product liability reform
• Expert Witness reform
• Jobs Preservation

The Governor seems intent on raising taxes to increase revenue while many Republicans are pointing in the direction of economic stimulation as the solution. 

I don't know about you, but I am just about at my tax paying limit.  I'd much rather help pay for a new elementary school in Germantown than add more money to the state's tax collection coffers.  The return on investment seems much better if we invest locally while our state stimulates the economy instead of increase taxes.

By the way, the idea of reducing expenditures when income lags is something that just about everyone of us has had to to do at one time or another.  Isn't it the state's turn to practice that simple budget technique for awhile?

As we predicted a few days ago, SynergyHealth made its decision to pursue a formal affiliation with what will become known as Progressive Health.  That, as you'll remember, is the coming together of Columbia St. Mary's and Froedtert and Community Health.

This seemed, from a layman's perspective, to be the best outcome for SynergyHealth and its Board concurred.  The final negotiations remain to be finished and the target for that to be completed has been set at May 1st.  This should bode well for the Menomonee Falls/Germantown/West Bend/Hartford area since there was a very real possibility that Aurora would become the defacto sole choice available.  The results of our race to consolidate healthcare systems remains to be determined so far as price increases or moderation, etc.  Building will continue, and that cannot but help add to costs.  If over-building occurs, some organizations will suffer.  Of course, us patients are going to be caught in whatever happens.

There was, many years ago now, a requirement in Wisconsin for healthcare systems to need to prove that a new facility was, in fact, required if all were to be adequately served.  If that couldn't be proved, permission to build was denied.  That law was wiped off the books a couple of decades ago and the result is quite apparent.  The building boom has had a detrimental effect on the costs of healthcare, and that has caused an increase in the costs of health insurance since one drives the other.  Is it possible that we'll once again see actual controls placed over health facility construction?  I wouldn't be surprised if that were to occur.

Finally, since I got lucky with the last prognostication, what do I do for an encore?  Well, let's take another peek into the not too distant future.

I expect that ProHealth based in Waukesha, that just acquired Medical Associates in Menomonee Falls, will ultimately join in some way with the emerging Progressive Health organization.  ProHealth and Aurora have been in a pitched battle for some time now.  That alignment would result in a very competitive group that could thwart the potential Aurora takeover of healthcare in our part of the world.  It would help to keep both honest and it could help to moderate healthcare costs.  If one or both took the road to hold the rate of increase to cost-of-living and nothing more, that would auger well for us consumers.  Healthcare cost increases have historically been double or more the cost-of-living inflation rate.

I also expect that the few remaining smaller players in this marketplace will need to affiliate with one or the other or run the very real risk that they'll become non-entities...also rans...and will be driven out of business.