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Senators tangle over bill to outsource road helpMadison - Counties and local governments would have to give more of their highway work to private contractors under a budget provision that is drawing opposition from lawmakers from both parties. The budget measure would require local governments to contract with private road builders - rather than using their own workers - for projects that cost $100,000 or more in certain situations. That will drive up costs for local governments, said Senate President Mike Ellis (R-Neenah). "The only ones who seem to benefit are the road builders," Ellis said in a statement. "Last session I criticized Gov. (Jim) Doyle's unnecessary and costly auto insurance changes as a payoff to the trial lawyers. It doesn't look any better when Republicans insert just as unnecessary and costly provisions that appear to benefit their friends." The changes were incorporated into the state budget late last month by the Joint Finance Committee. It was adopted 12-4 on party lines as part of a sweeping motion on transportation crafted by the committee's co-chairs, Sen. Alberta Darling (R-River Hills) and Rep. Robin Vos (R-Rochester). Pat Goss, executive director of the Wisconsin Transportation Builders, said the changes came out of talks over two years his association has had with the Wisconsin Counties Association and public- and private-sector unions. "If this was political favors, we'd be putting the counties out of business," Goss said. "This (measure) does not do that." Goss' group held a fundraiser last year in Florida to help Republican Scott Walker become governor. The group also gave $25,000 to the Republican Governors Association, which ran ads to help Walker. The measure says that certain work has to be bid out to the private sector if state or federal money is used for projects that cost $100,000 or more. Some exceptions apply that would allow local governments to use their own workers. Counties would be barred from doing work for villages, cities or other counties. They would still be allowed to do work for towns. Exactly how much money the measure could cost local governments remains unclear. But for some counties, the hit will be significant, said Dan Fedderly, executive director of the Wisconsin County Highway Association. That's because county highway operations are the size they are so they have enough staff to plow roads in the winter. Some counties perform road work in the summer so they can keep their employees busy and get use out of their trucks and other equipment, Fedderly said. "For some counties that rely on this work, it could have serious consequences," he said. "There could be significant negative impacts on several counties." Leveling playing fieldGoss said the loss of work to local governments would be softened because the committee put an additional $15 million over two years into road maintenance. Goss said local governments should be focused on such maintenance, rather than rebuilding roads.Terry McGowan, the business manager for a union that represents heavy equipment operators in the private sector, wrote in a recent statement that it is unfair to have road builders compete with county and local highway departments. Private businesses have to pay corporate, sales or property taxes, while governments don't and thus offer lower prices. "It is blatantly unfair and offensive to have government-subsidized operations competing against private companies and their workers at precisely the time our politicians are telling us, 'It's all about jobs and the economy.' What private sector industry would, could, or should compete with the government?" wrote McGowan, of the International Union of Operating Engineers Local 139. The Joint Finance Committee finished its work on the budget Friday. The Republican-controlled Legislature is expected to take up the bill next week. Assembly Minority Leader Peter Barca (D-Kenosha) has also been critical of the plan. The effort by Ellis to take the highway contracting changes out of the state budget is the latest in a string of complaints the Senate president has had about the budget. Earlier, Ellis raised concerns about a provision the committee put in the budget that would loosen regulations on payday loans, which are offered on a short-term basis at annual percentage rates that often exceed 500%. He has also blasted a plan to expand school choice to Green Bay. In an interview, Ellis said Walker's proposed budget did a good job. But he has not been pleased with changes the Joint Finance Committee has made. "What I see happening is, to use a term, it's getting junked up," Ellis said. "Things are being done to the budget that I believe couldn't stand a test on their own" as stand-alone legislation. |
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