Status Update on Senate Bill 713/Assembly Bill 857

Thank you to everyone who took action to oppose Senate Bill 713/Assembly Bill 857, which eliminates the requirement that Common School Fund dollars go to school libraries and ends the BCPL Trust Fund Loan Program. As a result of your advocacy, no action has been taken on this bill since the public hearing was held on January 31.

The 2017-18 legislative session is quickly coming to a close, and if SB713/AB857 does not pass before the legislature adjourns, it will be considered dead. The final floor day is March 22, but the State Assembly is expected to adjourn at the end of the week and the Senate will meet only once in March. 

As you know, the Senate Committee on Government Operations, Technology and Consumer Protection held a public hearing on January 31 on Senate Bill 713. That Committee never scheduled a vote on the bill. 

The Assembly companion bill, Assembly Bill 857, is before the Assembly Committee on State Affairs. That Committee has not taken any action on the bill. 

Representative Hutton (R-Brookfield) did release an amendment to the Assembly Bill, but no action has been taken on that amendment. It is important to note that the amendment does not resolve all of WEMTA's issues with the bill, so it would not change our position on the bill if it were adopted.  Even with the amendment, the bill would still:

Rename the School Library Aids appropriation the School Aids appropriation

Eliminate the requirement that computers and software purchased with CSF dollars be housed in the school library. However, the amendment does keep the current law requirement that CSF dollars be given to school libraries 

Eliminate the BCPL Trust Fund Loan Program

Set the stage to transfer BCPL Trust Fund investments over to SWIB. 

We will know more about the status of this bill by the end of this week, and will update you at that time. 

Act Now: Bill Would Cut Common School Fund By $2 million

The Assembly Committee on Judiciary is voting at 5 p.m. tomorrow night on Assembly Bill 773 which would eliminate the Department of Revenue’s (DOR) ability to conduct third-party audits related to unclaimed property. Proceeds from unclaimed property go into the Common School Fund, and DOR says this bill would result in $1.7 million less going to the Common School Fund in 2018. 

Contact your state representative and ask them to remove the unclaimed property changes from AB 773 because they would hurt the Common School Fund. Let them know that BCPL, which administers the Common School Fund, voted to oppose this change because it would hurt school  libraries. Find out who represents you here: http://legis.wisconsin.gov/ (click on “Who Are My Legislators?”)

BCPL Votes 2-1 to Oppose SB 713

The Board of Commissioners of Public Lands (BCPL) met Tuesday afternoon and formally voted 2-1 to oppose Senate Bill 713/Assembly Bill 857. State Treasurer Matt Adamczyk voted against the motion to oppose the bill.

During discussion on the bill and motion to oppose, BCPL Chair Attorney General Brad Schimel said that he did not think the bill was a good idea and that, from his understanding of the Legislative Fiscal Bureau analysis, SWIB would not be able to do any better than BCPL.

“I would not want us, our Commission, to be characterized as acquiescing…as thinking that this doesn’t…that this is harmless,” said Schimel.  

“These pieces of legislation are a disaster. They basically destroy—and I want this on the record—they would destroy the School Trust Fund program, which has operated for over 100 and some years very effectively,” said Secretary of State Doug La Follette.

Adamczyk said that he didn’t think the bill would pass this session, but that he supports the concept. He again argued that SWIB would do a much better job of managing the trust fund dollars.

The Board also voted 2-0 (with State Treasurer Adamczyk abstaining) to oppose a provision in Assembly Bill 773 and Senate Bill 645 that would prohibit the Department of Revenue from conducting third-party contingency fee audits of the unclaimed property program. The Department of Revenue (DOR) has issued a fiscal estimate on this bill, which indicates that if passed, it would reduce unclaimed property transfers to the Common School Fund by $1.7 million in fiscal year 2018.

The Board voted to narrowly oppose the specific provision of the bill related to unclaimed property.

BCPL Executive Secretary Jonathan Barry said that it “would be unfortunate if this provision were adopted.”

“If this passes, either the way it’s originally proposed or as amended, it’s going to leave a lot of money on the table that doesn’t go to the trust fund,” said Schimel.

You can listen to the full debate here.

Recap of Public Hearing on Senate Bill 713

The Senate Committee on Government Operations, Technology and Consumer Protection held a public hearing last week on Senate Bill 713, which would eliminate the BCPL Trust Fund Loan Program and the requirement that Common School Fund dollars be spent on school library funding. It also gives the State of Wisconsin Investment Board (SWIB) more authority to invest BCPL trust fund dollars. 

The bill authors, Senator Stroebel and Representative Hutton, both testified in support of the bill. State Treasurer Matt Adamczyk was the only other person to formally speak in favor of the bill. 

Senator Stroebel, Representative Hutton and State Treasurer Adamczyk all said they support the bill because SWIB would be able to make even more money for the trust fund accounts than BCPL—they specifically argued that SWIB could double the money.  In regard to the elimination of the Common School Fund language about school libraries, the supporters argued that the bill gives schools local control and flexibility. They said that it is disappointing that the school community does not support this legislation and said it is “disingenuous” for schools to object to taking on more local control after asking for it for so long. 

State Treasurer Adamczyk said that they aren’t going to eliminate school libraries. However, he did acknowledge that moving money over to SWIB would lead to years where the funds won't make any money and years where they would make a lot more. He also voiced his support for taking library funding out of BCPL and just having the legislature fund it separately.

Senator Kapenga (R-Pewaukee) expressed his support for the legislation. Senator Wirch (D-Somers) said that people need to keep in mind that the stock market may be doing well now but that that is not always the case. 

Jonathan Barry, the executive secretary of the BCPL, testified for information only but he responded to several assertions being made, including that if SWIB had invested BCPL trust fund money the same way they manage the Wisconsin Retirement System funds, significantly more money would have gone to public schools. Barry said it is "not a fair analogy" because"SWIB would be subject to the same constitutional limitations as BCPL and therefore would not likely produce any better investment returns" if they managed the funds for real. 

"If SWIB has a down year, it reaches into principal and the retirees still get paid. If BCPL were to have a down year, there would be no money available for school library books, computers and software in most of the school districts throughout Wisconsin," said Barry. 

The Wisconsin Towns Association testified against the bill as did several town officials from across Wisconsin. They spoke about the importance of the BCPL trust fund loan program and how banks often won’t agree to the types of terms towns need—like longer loan periods. They said many of their local infrastructure projects would not have been possible without the BCPL loan program.

The following WEMTA members spoke at the hearing: Mandy Meloy, Kay Benning, Jeannine Ramesy, Lawrence Gillick, and Laura Marusinec. Renee Deschard submitted written testimony. 

Next steps:  the Committee will need to take a vote on the bill. It is not clear when this will happen. The Assembly Committee on State Affairs has the Assembly Companion Bill (AB 857) and would also need to hold a hearing at some point for this bill to pass. 

There are currently 18 organizations registered in opposition to the bill.

WEMTA Alert: Public Hearing this WEDNESDAY on Common School Fund Bill!

A public hearing on Senate Bill 713 has been scheduled by the Senate Committee on Government Operations, Technology and Consumer Protection for this Wednesday, January 31 starting at 9:30 a.m. in room 201 Southeast of the State Capitol. Senator Stroebel, the chair of the committee, is also the lead author of SB 713, along with the Vice-chair of the committee, Senator David Craig (R-Big Bend).

We know this is short notice, but it is very important to have a good turnout in opposition to this bill, which would end the requirement for Common School Fund dollars to be used for school libraries. It would also end the Board of Commissioners of Public Lands Trust Fund Loan program, which supports schools, public libraries, technical colleges and local governments.

If you can make it to the public hearing, please let a member of WEMTA’s legislative committee know by emailing legislative@wemta.org. We will be on hand the day of the public hearing and can help you with logistics. If you are unable to present testimony at the hearing you can just stop by and fill out a hearing slip and register in opposition and leave. It only takes a few minutes!

If you can’t make the public hearing, you can still submit written comments to the members of the Senate Committee on Government Operations, Technology and Consumer Protection.

When drafting your testimony, please:

1.   Include your name and contact information

2.   Address it to the Senate Committee on Government Operations, Technology and Consumer Protection and Cc your own State Senator if they are not a member of the Committee.

3.   Clearly state your ask—i.e. Please oppose Senate Bill 713

4.   If you are attending in person, please bring copies of your written testimony (7-10 copies)

Here are some talking points you can use:

·                     Common School Fund stakeholders want to maintain the current structure that has been working well since the founding of our State.

·                     Over the past 10 years, the BCPL State Trust Fund Loan program has invested over $1 billion in communities throughout Wisconsin. Earnings from these loans are deposited into the Common School Fund. Ending the BCPL loan program would eliminate this important economic development funding from our communities and eliminate a major source of revenue for the Common School Fund. 

·                     With school districts across the state facing increased budget constraints, distributions from the Common School Fund are often the only dollars available for school libraries to purchase informational materials including books, newspapers and periodicals, web-based resources, and computer hardware and software. This bill would remove the requirement that the Common School Fund be used for libraries, thus ending the only dedicated source of school library funding in Wisconsin. 

·                     The bill also gives the State of Wisconsin Investment Board (SWIB) more authority to invest BCPL trust fund dollars. According to the non-partisan Legislative Fiscal Bureau, if SWIB had been managing the Common School Fund dollars in the same way they manage their other investments during the financial crash of 2008, the Common School Fund would have suffered a devastating loss of between $195 million and $290 million. No funding would have been available for school libraries for several years following a loss of that magnitude. 

·        It is also important to note that while proponents say that SWIB would be able to get higher returns, the non-partisan Legislative Fiscal Bureau says that it is unlikely that SWIB would be able to do any better than BCPL because they would need to adhere to the constitutional and statutory requirements of the trust fund. The non-partisan Legislative Fiscal Bureau issued a memo that stated “under the constraints of the trust funds, it would be reasonable to assume that SWIB would not take on significantly more risk than BCPL, if any, in investment of the funds.” According to the Legislative Fiscal Bureau, SWIB would “be required to manage the trust funds prudently, and be subject to the same constitutional and statutory constraints as the BCPL.”

How to Contact Your Legislators:

The first step in contacting your legislator is knowing who your legislator is. The easiest way to do this is the tool found on the Legislature’s home page, at http://legis.wisconsin.gov. In the right-hand side of that page is a link that says Find My Legislators!  Type your address in the box below that link to get the names of your state representative and senator.

·                     Phone.  You may leave a message for your legislator’s Capitol office or indicate your position on legislation through the toll free Legislative Hotline, at 1-800-362-9472.

·                     Email. The email addresses of members of the Wisconsin Legislature all have the same format. For members of the Assembly, the form is Rep.Jones@legis.wisconsin.gov; for members of the Senate, the form is Sen.Adams@legis.wisconsin.gov. 

Governor Walker Highlights Investments in K-12 Education During State of the State

Governor Walker delivered his annual State of the State address this afternoon. Throughout the speech, he highlighted many of his accomplishments over the past eight years since taking office. “Eight years ago, things were not very good in our state. There were double-digit tax increases, billion-dollar budget deficits, and record job losses,” said Walker.

He spent a significant amount of time talking about his investments in K-12 education and the UW System Tuition Freeze. He also called on the Legislature to pass legislation increasing funding to rural and low-revenue school districts, and outlined plans to expand Broadband using television white space technology. 

“We will build off of our historic investments into K-12 education,” Walker told the joint session of the Legislature. “Looking ahead, we need to continue to help rural schools keep more money in the classroom. Many of these schools have unique needs related to transportation and to the size of the district. I want to ensure educational excellence everywhere.”

Walker concluded by laying out his “Ambitious Agenda” for 2018, which includes: welfare reform; a $20 million Wisconsin Career Creator program at UW; a Small Business Plan; a $50 million Rural Economic Development Fund; Broadband expansion; juvenile justice reform; a new $100 child tax credit; and a Health Care Stability Plan that includes passing legislation related to protecting people with pre-existing conditions, a re-insurance program for the individual insurance market and a permanent SeniorCare waiver.

ALERT: Ask you legislator to oppose Senate Bill 713/Assembly Bill 857!

Senator Stroebel (R-Saukville) and Representative Rob Hutton (R-Brookfield) formally introduced Senate Bill 713/Assembly Bill 857 today, which would end the Common School Fund as we know it and end the Board of Commissioners of Public Lands (BCPL) loan program that benefits schools, towns, villages, technical colleges, CESAs and public library systems. 

The following legislators signed on in support of this bill:  Senators Duey Stroebel (R-Saukville) and David Craig (R-Big Bend)  and Representatives Rob Hutton (R-Brookfield), Rob Brooks (R-Saukville), Terry Katsma (R-Oostburg), John Macco (R-De Pere), Cody Horlacher (R-Mukwonago), and Ron Tusler (R- Harrison).

It has been referred to the Senate Committee on Government Operations, Technology and Consumer Protection and the Assembly Committee on State Affairs. 

Senate Bill 713/Assembly Bill 857:

•  Eliminates the requirement that schools spend Common School Fund disbursements on instructional materials, library books or school library computers/software. Schools would be able to spend CSF funds on any items they would like and those items would not need to be housed in the school library

• Eliminates BCPL’s authority to make loans. The interest on these loans currently goes into the Common School Fund. 

• Under current law, the BCPL can delegate some investment authority to the State of Wisconsin Investment Board (SWIB), but SWIB can only invest in fixed income accounts. The bill would remove this restriction and allow SWIB to invest state trust fund dollars using their typical investment strategy.

Contact your state representative and state senator TODAY and ask them to oppose Senate Bill 713/Assembly Bill 857!

Here are some things you can say:

• Common School Fund stakeholders were not consulted in the development of this legislation, and we do not support these changes. We want to maintain the current structure that has been working well since the founding of our State in 1848.. 

• Over the past 10 years, the BCPL State Trust Fund Loan program has invested over $1 billion in communities throughout Wisconsin. Earnings from these loans are deposited into the Common School Fund. Ending the BCPL loan program would eliminate this important economic development funding from our communities and eliminate a major source of revenue for the Common School Fund. 

• With school districts across the state facing increased budget constraints, distributions from the Common School Fund are often the only dollars available for school libraries to purchase informational materials including books, newspapers and periodicals, web-based resources, and computer hardware and software. This bill would remove the requirement that the Common School Fund be used for libraries, putting school library funding in jeopardy. 

• The bill also gives the State of Wisconsin Investment Board (SWIB) more authority to invest BCPL trust fund dollars. According to the non-partisan Legislative Fiscal Bureau, if SWIB had been managing the Common School Fund dollars during the financial crash of 2008, it would have suffered a devastating loss of between $195 million and $290 million. No funding would have been available for school libraries for several years following a loss of that magnitude. 

How to Contact Your Legislators:

The first step in contacting your legislator is knowing who your legislator is. The easiest way to do this is the tool found on the Legislature’s home page, at http://legis.wisconsin.gov. In the right-hand side of that page is a link that says Find My Legislators!  Type your address in the box below that link to get the names of your state representative and senator.

• Phone.  You may leave a message for your legislator’s Capitol office or indicate your position on legislation through the toll free Legislative Hotline, at 1-800-362-9472.

• Email. The email addresses of members of the Wisconsin Legislature all have the same format. For members of the Assembly, the form is Rep.Jones@legis.wisconsin.gov; for members of the Senate, the form is Sen.Adams@legis.wisconsin.gov.