{"id":338,"date":"2017-05-19T16:01:41","date_gmt":"2017-05-19T16:01:41","guid":{"rendered":"http:\/\/weda.website.member365.com\/?p=338"},"modified":"2017-11-16T16:42:49","modified_gmt":"2017-11-16T16:42:49","slug":"legislative-update-may-2017","status":"publish","type":"post","link":"https:\/\/weda.org\/legislative-update-may-2017\/","title":{"rendered":"Legislative Update, May 2017"},"content":{"rendered":"

Legislature\u2019s budget-writing committee restores WEDC capital lending program; increases broadband expansion funding<\/strong><\/span><\/h2>\n

With summer approaching quickly, the weather is getting warmer and the days are getting longer. For lawmakers, legislative staff and political observers in the State Capitol, the onset of summer typically means the state budget debate is at its apex. And in fact, the Legislature is roughly halfway into the process of reshaping Gov. Scott Walker\u2019s 2017-19 State Budget bill.<\/p>\n

The governor introduced the two-year, $76 billion state spending plan back in February, and the Legislature\u2019s Joint Finance Committee (JFC), which is charged with retooling the governor\u2019s budget, began voting on the bill at the beginning of May. While several major spending items have yet to be addressed by JFC that could delay the process \u2013 including transportation and K-12 education funding \u2013the committee appears to be on track to finish their work by mid-June. The bill will then be sent to the full Legislature for final consideration.<\/p>\n

More importantly, many of the budget issues important to WEDA have already been considered and approved by JFC. They include restoration of the Wisconsin Economic Development Corporation\u2019s (WEDC) capital lending program and increased funding for the state\u2019s broadband expansion grant program.<\/p>\n

WEDC<\/strong><\/p>\n

On May 9, the Finance Committee acted to reestablish WEDC\u2019s capital lending program to ensure new and expanding businesses across Wisconsin have continued access to a critical financing option. The loan program is a key component of WEDC\u2019s economic development toolbox and helps fuel private-sector investment.<\/p>\n

Under current law, WEDC\u2019s existing capital lending authority is scheduled to expire at the end of the state’s current fiscal year (June 30, 2017). The budget proposal approved by JFC not only restores WEDC\u2019s lending authority, but also eliminates the provision included in the governor\u2019s budget that would have\u00a0required new WEDC loans to be funded solely with repayments from exiting loans. The JFC did retain the provision to prohibit the agency from issuing forgivable loans.<\/p>\n

Restoration of the lending program is a top budget priority for WEDA and was an issue WEDA members discussed with state lawmakers at the Association’s 2017 Legislative Day on March 29.<\/p>\n

The committee also approved the governor\u2019s proposal to restore WEDC\u2019s base funding, which was cut in the 2015-17 budget bill. The committee\u2019s action restores $6.3 million in the second year of the upcoming budget cycle and every year thereafter. Without restoration of their base funding, WEDC\u2019s mission could be jeopardized, and it would become increasingly challenging for the corporation to provide timely economic development assistance to Wisconsin businesses. The JFC also approved a\u00a0provision to\u00a0modify WEDC’s funding structure to rely more heavily on\u00a0support from the state\u2019s Economic Development Fund rather than general purpose revenue.<\/p>\n

Both measures are expected to remain in the final budget that will be considered by the full Legislature<\/p>\n

Broadband Expansion<\/strong><\/p>\n

The Finance Committee also recently approved a budget motion to inject new funding into the state’s broadband expansion grant\u00a0program. The JFC vote came one day after a stand-alone broadband expansion bill (AB 123) stalled in the state Senate due to a proposed “privacy” amendment.<\/p>\n

Facing a prolonged debate on AB 123 and fearing the bill would \u201cdie,\u201d JFC lawmakers moved quickly to fold the\u00a0legislation into the state budget bill. The provision is expected to survive the budget process and be signed into law by the governor.<\/p>\n

Under the broadband provision, $14 million would be available for broadband expansion grants in 2017-18, as opposed to the $1.5 million that is available under current law. In addition, funding for the program will be ongoing and will be set at a minimum of $2 million per year.<\/p>\n

Like AB 123, which had strong WEDA support,\u00a0the budget provision would make the following changes to the eligibility criteria for broadband expansion grants:<\/p>\n