AGGREGATE PRODUCERS QUARTERLY NEWS of WISCONSIN August 2015 Producers of Crushed Stone, Sand and Gravel Message from the President Message from the President 1 Legislative & Regulatory Report Adam Tegelman 2015-2017 Biennial Budget Passed and Signed 3, 5, 6 As summer comes to a close and everyone starts to think about football Governor Makes Appointments and the impending snowfalls, the APW’s event calendar continues to fill. to DNR Board 7 APW just held its 9th annual Rock Crusher golf outing on August 14. Thank Michigan v. EPA – SCOTUS Rules EPA Must Consider Costs in Initial you to everyone who attend and to those who helped support the event by Decision to Regulate 7 sponsoring. It was another successful event for the APW. Election Update 10 Another very important APW event is less than a month away. The APW’s legislative day will be held on Wednesday, September 16 at the Madison Club NSSGA in Madison, WI. It is imperative we have a good turnout so our elected officials More than Half the States Sue EPA Over the Waters can hear directly from us on how these local regulations are impeding our of the U.S. Rule 12 ability to operate and in some instances threaten our very livelihood. I know Critical Minerals Bill Includes everyone is busy, but having one or more representatives from each company Aggregates 12 at our legislative day will leave a lasting impression with our legislators. Please NSSGA Applauds Senate, Challenges Congress to see the registration form included with this newsletter and register today. The Stand Up for America’s cost to attend is free and open to all APW membership. I look forward to a Infrastructure 13 large turnout for this event. Regulatory Reform Efforts Continue in Congress 11 Finally, the APW convention is fast approaching. The convention will be held Senator Carper Offers Method on Thursday, December 3, at the Holiday Inn in Stevens Point, WI. An e-mail to Pay for Highway Bill 11 was sent to all APW membership asking for their input on conference topics Member News 17 for our agenda. If you haven’t done so already and have topic ideas for the convention, please e-mail them to our trade association manager, Erin Krueger at: [email protected]. Those interested in exhibiting or sponsoring at the convention can register now either through the APW website (www.aggregateproducers.org) or by sending in the included exhibitor registration form included in this newsletter. It’s never too early to register for your exhibit at the conference. Do so now to ensure you are set for your table at the convention. A full agenda and registration materials for attendees is forthcoming. As you can see, the APW is hard at work organizing and finalizing events for the remainder of 2015. I encourage all to attend our upcoming events and I look forward to seeing you there! LEGISLATIVE REGULATORY REPORT 2015-2017 Biennial Budget Passed and Signed Governor Scott Walker signed the $73 billion-plus state budget on Sunday, July 12, just days after the legislature passed the budget bill and hours before his presidential election announcement. Before signing the budget, the governor issued 104 vetoes – double the number of vetoes he issued in previous budgets. Throughout the budget process, which began in early 2015, legislators wrestled with numerous controversial and headline-grabbing issues ranging from prevailing wage reform, teacher licensing, the University of Wisconsin system cut and a proposed new Bucks arena. Moreover, the budget process stalled at the end, while members faced tough fiscal decisions pertaining to funding for transportation, prevailing wage reform and financing for the Bucks arena, which was ultimately removed from the budget, taken up as separate legislation and signed into law. The budget floor sessions in both the Senate and the Assembly did not go as late as previous years, due to predetermined time limit for the debate. The budget vote in the Assembly was closer than expected, with 11 Republicans voting with the Democrats against the budget. Many of those Republicans who voted against the budget come from purple districts heading into 2016 elections, signaling desire to appeal to independent voters. The Senate passed the spending plan almost on party lines, 18 – 15, with Republican Senator Robert Cowles voting against it. One of the most covered items vetoed by the governor was a provision that would have allowed payday lenders to offer additional financial services, including selling insurance, annuities and providing financial advice. The governor also changed the new measure that would have required food stamp applicants to take and pass drug tests by removing the requirement that would limit the tests to those who fall under reasonable suspicion. Additionally, the governor used the veto pen to make changes to Family Care and IRIS provisions. Transportation The governor’s recommended transportation budget did not include tax or fee increases to help balance the Department of Transportation (DOT) budget. Overall, the governor’s transportation budget recommended providing $6.4 billion to build and maintain transportation projects and relied on $1.3 billion in new bonding to fund transportation projects. His proposal also included $836.1 million over the biennium for major highway projects, such as the Zoo Interchange, Stillwater Bridge and Hoan Bridge. More specifically, the governor recommended total funding for the Major Highway Program of $836.1 million, an increase of $108.4 million over the 2013-2015 funding levels. Legislative & Regulatory Report 3 “ Now manufacturing screens produced with ULTRALOY, a new wire alloy from Metso Minerals.” Wire with the optimum combination of strength, ductility and abrasion, resulting in longer wear life even in the most demanding applications. Why should you inventory thousands of dollars of screens that may become obsolete? We maintain a large inventory of Metso square and slotted screen openings, that allow us to efficiently produce your screen, and usually ship within 24 hours of your order. P.O. Box 65 800-438-2907 Please contact us with any questions or special requests. We take great Eau Claire, WI 54702-0065 715-832-9792 pride in our products and value your business. www.rbscott.com Fax 715-832-7767 4 APW Quarterly Newsletter LEGISLATIVE REGULATORY REPORT The governor stated that this would keep the widening factors to select the timing and scope of state highway of I-39/90 between Madison and the Illinois border on improvements and an audit of the state’s bidding practices schedule. related to the state highway program, among other issues. For the State Highway Rehabilitation Program, the governor recommended total funding for rehabilitation projects of over Prevailing Wage $1.6 billion – largely maintaining current program funding levels. The governor recommended providing $623.2 million After much debate over whether prevailing wage reform for the Zoo Interchange to ensure the project remains on would be passed as separate legislation, the changes were schedule for the 2018 completion date. In addition, the ultimately placed into the state budget and passed. Sen. governor proposed to delay the I-94 North/South project Frank Lasee (R-De Pere) and Rep. Hutton (R-Brookfield) led between Milwaukee and the Illinois border for one year and the effort to include prevailing wage reform in the budget. enumerate the I-94 East/West Project to allow DOT to begin Otherwise known as the “Lasee/Hutton Plan,” the changes substantive work. reformed the state’s prevailing wage laws. The reform language included two main provisions: exempting all local The governor recommended $36.8 million for bridge projects governments, technical colleges, schools, municipal utilities over the biennium for the completion of the Stillwater and and off-site trucking from Wisconsin’s prevailing wage laws; Hoan bridge projects. Of this funding, $20 million was to be and applying federal rates on state projects. provided to the Stillwater Bridge project and $16.8 million to the Hoan Bridge project. Joint Committee on Finance (JFC) In February, Sen. Leah Vukmir (R-Wauwatosa) and Rep. modified the DOT budget to reduce the level of bonding Hutton introduced AB 32/SB 49, which would repeal from the governor’s recommended $1.3 billion in new Wisconsin’s prevailing wage laws entirely. The companion bonding to $500 million and allow an additional $350 million bills each had daylong public hearings in committee in in general obligation bonds to be issued upon approval by the Senate and the Assembly, respectively. The original JFC. This $350 million in contingent bonding could be used legislation failed to pass the Senate labor committee on a 2-3 for either major highway development or state highway vote and passed the Assembly labor committee 5-4. In April, rehabilitation projects. JFC can approve no more than $200 the first murmurings of including prevailing wage reform million in additional bonding in 2015-16. in the state budget bill began and three GOP state senators stated publicly that they would vote no on the budget bill Overall, the net effect of the committee changes, compared unless prevailing wage reform was included. to the governor’s recommendations, include a $200 million reduction to the Zoo Interchange project, which would delay Last week, GOP leadership announced that prevailing wage the north leg, a $350 million reduction to the Major Highway reform would be considered outside of the budget. However, Program and a $100 million reduction to State Highway during the final Joint Finance Committee meeting on the Rehabilitation Program. budget, the committee stood informal at 10:20 p.m. after all three final agenda items were passed. Though no official According to the Legislative Fiscal Bureau, under the announcement was made, the press and those inside the committee’s action, 20.6 percent of transportation fund capitol speculated Republican leaders were considering revenues will be dedicated to debt service in 2016-17.