State Budget Update July 2013

On June 30th Governor Walker signed the 2013-15 State Budget Bill (Wisconsin Act 20) and announced his vetoes. AGC of Wisconsin, along with at least 24 other trade associations, asked the Governor to veto the large unemployment insurance (UI) tax increase that was included in the Budget, as well as the $250 million cut in bonding authority that the legislature made to the Building Commission’s original recommendation of $1.14 billion of bonding in the Capital Budget. The Governor did not veto either proposal.

On June 30th Governor Walker signed the 2013-15 State Budget Bill (Wisconsin Act 20) and announced his vetoes.  AGC of Wisconsin, along with at least 24 other trade associations, asked the Governor to veto the large unemployment insurance (UI) tax increase that was included in the Budget, as well as the $250 million cut in bonding authority that the legislature made to the Building Commission’s original recommendation of $1.14 billion of bonding in the Capital Budget.  The Governor did not veto either proposal.

Because the UI tax increase does not occur until January 2015, the Governor’s office and Speaker Vos both agreed in meetings with AGC that they would consider supporting an alternative to the increase if the UI Advisory Council can develop an acceptable proposal before the rates change.  The UI Advisory Council has already formed a subcommittee and scheduled meetings to look at the UI rates and overall funding formula. AGC will work closely with the Council in their efforts.

While leaving the $250 million reduction in bonding authority intact, the Governor did veto some language that limited where those cuts can come from.  Several Building Commission members have indicated that most of the reduction can be achieved without affecting many new construction projects that are scheduled over the next two years. AGC will closely monitor the Building Commission and report on their final recommendations.