>> PRESENTATION OF "HERE & NOW"
IS MADE POSSIBLE IN PART BY THE
ANIMAL DENTAL CENTER OF
MILWAUKEE AND OSHKOSH, A
VETERINARY TEAM WORKING WITH PET
OWNERS AND FAMILY VETERINARIANS
THROUGHOUT WISCONSIN, PROVIDING
CARE FOR ORAL DISEASE AND DENTAL
PROBLEMS FOR SMALL COMPANION
ANIMALS.
ADDITIONAL SUPPORT FOR "HERE &
NOW" IS PROVIDED BY THE LE
PHILLIPS FAMILY FOUNDATION.
>> I'M FREDERICA FREYBERG.
TONIGHT ON "HERE & NOW,"
LAWMAKERS EARNED THEIR PAY THIS
WEEK DEBATING PAYDAY LOAN
REGULATION.
A NEW BILL IS HEADED TO THE
ASSEMBLY FLOOR NEXT WEEK.
WE TAKE THAT SUBJECT UP FIRST
TONIGHT.
WE'LL LEARN ABOUT THE GOOD NEWS
AND THE BAD NEWS IN THE STATE'S
LATEST ECONOMIC OUTLOOK.
LATER, WE HEAR FROM ONCE AND
MAYBE FUTURE WISCONSIN
POLITICIAN TOMMY THOMPSON.
AND REPORTER ART HACKETT HITS
THE ROAD AND DISCOVER THAT SOME
OF WISCONSIN'S HIGHWAYS ARE
OVERDUE FOR AN OVERHAUL.
BUT FIRST, DEMOCRATS AT THE
STATE CAPITOL ANNOUNCED THURSDAY
THAT THE WILD WEST DAYS OF
UNREGULATED PAYDAY LOANS ARE
ABOUT TO BE OVER.
WISCONSIN IS THE ONLY STATE IN
THE NATION THAT DOES NOT HAVE
LAWS ON THE BOOKS REGULATING
BUSINESSES THAT CASH ADVANCE
PEOPLE MONEY BASED ON THEIR NEXT
PREDICTED PAYCHECK.
THE INTEREST ON A PAYDAY LOAN
CAN GO AS HIGH AT 500% YEAR OR
MORE AND PAYDAY LENDING
BUSINESSES HAVE MUSHROOMED TO
MORE THAN 500 TODAY.
THE SO-CALLED RESPONSIBLE
LENDING ACT HEADS TO THE
ASSEMBLY FLOOR NEXT WEEK.
A SCHEDULE REPUBLICANS NOTE DOES
NOT INCLUDE A PUBLIC HEARING.
AMONG OTHER THINGS, THE BILL
WOULD NOT CAP THE ANNUAL
INTEREST RATE THAT LENDERS COULD
ATTACH TO LOANS, BUT THE BILL
WOULD LIMIT THE AMOUNT OF A LOAN
TO $600 OR 35% OF A BORROWER'S
TWO-WEEK INCOME, WHICHEVER IS
LESS.
THE BILL WOULD NOT ALLOW
ROLL-OVERS OF A PAYDAY LOAN
WHICH REGULATORS SAY ACCOUNT FOR
90% OF PROFITS.
BORROWERS COULD ONLY TAKE OUT
ONE LOAN AT A TIME.
NOW, ADVANCE AMERICA WITH
HUNDREDS OF PAYDAY LOAN OFFICES
AROUND WISCONSIN DECLINED "HERE
& NOW"'S INVITATION TO APPEAR
TONIGHT.
ON TUESDAY ASSEMBLY DEMOCRATS
TOUTED THE NEED FOR THEIR REFORM
PROPOSAL.
>> OUR PAYDAY LENDING WORK GROUP
HAS WORKED DILIGENTLY OVER THE
PAST SEVERAL MONTHS TO PUT
TOGETHER THE MOST SIGNIFICANT
AND THOROUGH REFORM OF THE
PAYDAY LENDING INDUSTRY IN
WISCONSIN'S HISTORY.
LEGISLATION THAT WILL END THE
DEBT TRAP FOR THOUSANDS OF
WISCONSIN CONSUMERS.
WHAT YOU SEE BEFORE YOU TODAY IS
TRULY A COMPROMISE, REPRESENTING
A DIVERSE SET OF OPINIONS ON A
VERY CONTROVERSIAL ISSUE.
WHILE NO ONE MEMBER OF THIS WORK
GROUP IS 100% SATISFIED WITH
THIS COMPROMISE, WE BELIEVE THAT
THE PACKAGE IS A VERY
RESPONSIBLE APPROACH TO A
SERIOUS PROBLEM.
>> THAT WAS STATE REPRESENTATIVE
DONNA SIDEL.
JOINING US NOW IS THE WISCONSIN
POINT PERSON FOR THE LENDING
INDUSTRY WATCHDOG GROUP CENTER
FOR WISCONSIN LENDING, JENNIFER
JOHNSON.
THANKS VERY MUCH FOR BEING HERE.
>> THANK YOU FOR INVITING ME.
>> WHAT IS YOUR REACTION TO
REPRESENTATIVE DONNA SIDEL
CALLING THIS THE MOST
SIGNIFICANT REFORM EVER IN
WISCONSIN, ENDING THE DEBT TRAP
AND STATING IT AS TRULY A
COMPROMISE.
>> IT JUST SOUNDS LIKE THE
REPRESENTATIVE JUST DOESN'T
UNDERSTAND, HAVE A GOOD
UNDERSTANDING OF HOW THE
INDUSTRY WORKS.
I'VE LOOKED THROUGH THE PROPOSED
COMPROMISE.
SOME OF MY COLLEAGUES AND
COLLEAGUES IN OTHER
ORGANIZATIONS, CONSUMER
ORGANIZATIONS, HAVE REVIEWED
THIS COMPROMISE.
AND THERE'S JUST NOTHING IN THIS
LEGISLATION, NOTHING, THAT WILL
HELP CONSUMERS TAKE THEM OUT OF
THAT DEBT TRAP THAT THEY HAVE IN
WISCONSIN.
AND IN FACT THERE ARE CERTAIN
ELEMENTS OF THIS PROPOSED
LEGISLATION THAT WILL ACTUALLY
DO HARM RATHER THAN NOT DOING
ANY GOOD.
>> WELL, LET'S GET TO THOSE
THINGS IN A MINUTE, BUT I FIRST
WANT TO ASK FOR YOUR REACTION
THAT THE BILL DOES NOT IMPOSE A
CAP ON INTEREST.
>> THAT'S CORRECT.
AND THE PROBLEM THAT IS UNIQUE
TO WISCONSIN IS THAT THERE'S NO
AUTHORIZATION FOR PAYDAY
LENDING.
FIRST OF ALL, THERE ARE A NUMBER
OF PREDATORY PRODUCTS.
YOU HAVE THE CAR TITLE PREDATORY
PRODUCT AND YOU HAVE PAYDAY.
THIS LEGISLATION PROPOSES ONLY
TO ADDRESS THE PAYDAY PRODUCT.
BUT BECAUSE THE STATE'S RATE CAP
WAS LIFTED BACK IN 1993, I
BELIEVE, THERE IS NO RATE CAP ON
ANY SMALL DOLLAR LENDING.
AND SO IF -- EVEN IF THERE WERE
SOME MEASURES THAT WOULD ADDRESS
THE PAYDAY MODEL, IT'S VERY EASY
AND HAS BEEN DONE BEFORE FOR THE
INDUSTRY TO JUST MORPM THEIR
PRODUCT INTO ANOTHER TYPE OF
PRODUCT.
NEXT-DOOR IN ILLINOIS YOU HAVE
INSTALLMENT LOANS.
IN OTHER STATES YOU HAVE OTHER
MODELS.
BUT TO CONTINUE BUSINESS AS
USUAL BY CALLING THEIR PRODUCT A
DIFFERENT -- BY A DIFFERENT
NAME.
>> SO IS THAT WHY YOU SUGGEST
THAT NOTHING IN THIS BILL HELPS
THE CONSUMER?
BECAUSE THERE ARE ALL THOSE
PRONGS OF IT THAT WOULD APPEAR
TO, INCLUDING LIMITING THE
AMOUNT OF MONEY THAT SOMEONE
COULD BORROW, NOT ALLOWING
ROLL-OVERS WHICH IS SUGGESTED TO
BE A BIG REGULATION THAT WOULD
HELP.
WHY WON'T THOSE THINGS?
BECAUSE YOU'RE SAYING THEY'LL
JUST MORPH INTO SOME OTHER KIND
OF PRODUCT?
>> RIGHT.
AND IT DOESN'T TAKE A WHOLE LOT
OF RESEARCH TO SEE THIS.
ALL YOU HAVE TO DO IS STUDY WHAT
THE INDUSTRY HAS DONE IN OTHER
STATES WHEN THEY WERE OPPOSING
REFORM.
LET'S TALK ABOUT THE ROLL-OVERS
FOR JUST A MOMENT.
THAT'S BEING TOUTED AS A
SIGNIFICANT REFORM, BUT IN FACT
THE ROLL-OVER IS SIMPLY A SMOKE
SCREEN.
YOU CAN TAKE ONE PAYDAY LOAN AND
FLIP THAT LOAN MORE THAN 20
TIMES IN ONE YEAR AND NEVER
TECHNICALLY ROLL THAT LOAN OVER,
BECAUSE EVERY TIME A BORROWER
TAKES OUT A BACK-TO-BACK LOAN,
SOMETIMES THEY'RE CALLED TOUCH
AND GO LOANS, THEY PAY OFF THE
LOAN, IT'S DRAFTED FROM YOUR
CHECKING ACCOUNT ON YOUR PAYDAY,
SO IT'S CONSIDERED PAID.
BUT THEN THE BORROWER IS SHORT
THAT MONEY, SO THEY'VE GOT TO GO
RIGHT BACK TO THE PAYDAY LENDER
AND GET THAT MONEY BACK BECAUSE
THEY NEED IT.
AND SO THAT'S CONSIDERED A NEW
LOAN.
AND A BORROWER CAN DO THAT EVERY
PAYDAY THROUGHOUT THE YEAR,
NEVER HAVING ROLLED OVER A LOAN.
SO THE BAN ON ROLL-OVERS IS
REALLY A TRICK THAT THE INDUSTRY
HAD USED FIVE YEARS AGO.
AND IT'S -- THAT'S WHY I THINK
THE LEGISLATORS ARE TRYING THEIR
BEST, BUT THEY JUST DON'T HAVE A
REAL GRASP OF HOW TRICKY THIS
INDUSTRY HAS BEEN AND THEY
SHOULD PROBABLY CONSULT WITH
THEIR COLLEAGUES FROM OTHER
STATES TO SEE SOME OF THE SAME
ARGUMENTS HAVE BEEN -- AND SAME
POSITIONS HAVE BEEN PUSHED IN
YEARS PAST.
>> LET ME ASK YOU ABOUT ONE
OTHER ITEM IN THIS, AND IT SEEMS
LIKE WHAT WOULD APPEAR TO BE A
SIGNIFICANT REFORM, THAT BEING
BANNING CAR TITLE LOANS, WHICH
ALLOWS A LENDER TO SEIZE THE CAR
IF YOU DON'T PAY IT BACK.
BANNING THAT SEEMS LIKE A
SIGNIFICANT REFORM.
>> IT DOES SEEM LIKE A
SIGNIFICANT REFORM, BUT WHAT
THEY'VE DONE IN THIS LEGISLATION
IS IN THEIR BAN ON CAR TITLE
LOANS -- AND I WOULD AGREE WITH
YOU THAT THE STRUCTURE OF THE
CAR TITLE LOAN AS THE INDUSTRY
MODEL IS A PREDATORY STRUCTURE.
BUT IN THIS LEGISLATION THEY'VE
DEFINED THE CAR TITLE LOAN AS A
LOAN THAT HAS A TERM -- A
MAXIMUM LOAN TERM OF 90 DAYS.
AND SO WHAT WOULD HAPPEN IS THE
CAR TITLE INDUSTRY WOULD SIMPLY
MAKE 91 LOAN -- 91-DAY LOANS.
THEY COULD -- I COULD CLEARLY
ENVISION A SCENARIO WHERE THEY
WOULD HAVE INTEREST-ONLY
PAYMENTS FOR THOSE FIRST TWO
MONTHS AND THEN ON THE THIRD
MONTH, AT THE 90TH DAY, THEN THE
ENTIRE LOAN WOULD BE DUE IN A
BALLOON PAYMENT.
AGAIN, PUTTING -- THAT'S A KEY
ELEMENT OF THE PREDATORY LOAN
TRAP, IS THAT IT'S A BALLOON
PAYMENT AND IT'S DUE IN A VERY
SHORT TIME.
SO THAT'S A KEY ELEMENT THAT THE
INDUSTRY COULD DO.
SO IT'S VERY EASY.
THEY'LL MAKE 91-DAY LOANS.
>> LET ME JUST -- I'M SORRY.
LET ME JUST INTERRUPT AND ASK
YOU THIS, BECAUSE THE DEVIL'S
ADVOCATE SIDE OF THIS IS THAT
PEOPLE NEED THESE KIND OF
LENDERS WHO ARE LIVING PAYCHECK
TO PAYCHECK AND THE ALTERNATIVE
IS POTENTIALLY OVERDRAFT
CHECKING ACCOUNT FEES THAT GET
THEM INTO REALLY BAD TROUBLE AS
WELL.
SO, I MEAN, ARE YOU SUGGESTING
THAT THIS INDUSTRY SHOULDN'T
EXIST AT ALL?
ISN'T THERE SOME PURPOSE FOR IT
FOR SOME PEOPLE WHO NEED THIS
KIND OF READY CASH BETWEEN
PAYCHECKS?
>> NOT THIS MODEL.
I THINK THAT THIS MODEL THAT
THIS INDUSTRY PERPETUATES IS NO
GOOD TO ANYONE.
IT DOESN'T DO ANY GOOD.
IT ONLY DOES HARM.
THERE ARE SMALL LOAN PRODUCTS,
AS YOU KNOW.
THERE IS A BANK IN WISCONSIN,
MITCHELL BANK, THAT HAS A SMALL
LOAN PRODUCT.
THEY HAVE I THINK 11
LOCATIONINGS THROUGHOUT THE
STATE.
THERE ARE CREDIT UNIONS THAT
HAVE SMALL LOANS.
THE PROBLEM IS SMALL LOANS.
NO ONE NEEDS TO PAY IT BACK IN
TWO WEEKS.
AN ANALOGY SOMEONE TOLD ME IS
THAT IT'S TRUE THAT PEOPLE MAY
BE HUNGRY, BUT JUST BECAUSE
PEOPLE ARE HUNGRY DOESN'T MEAN
YOU NEED TO SERVE THEM
CONTAMINATED FOOD.
THAT'S SORT OF WHAT THIS PRODUCT
IS.
IF THEY WOULD CHANGE THE MODEL,
YOU COULD MAKE IT WORK.
BUT AS IT IS NOW, TRIPLE DIGIT
INTEREST RATES WITH A VERY SHORT
REPAYMENT TERM IN A BALLOON
PAYMENT FORM WITH ACCESS TO YOUR
BANK ACCOUNT, THOSE RESPECT
INGREDIENTS FOR FOR DISASTER FOR
BOW OWE ERS.
>> AND SO SPECIFICALLY IF YOU
HAVEN'T ALREADY ADDRESSED IT,
HOW DOES THIS PARTICULAR
COMPROMISE BILL ACTUALLY HURT
THE CONSUMER MORE THAN WHAT
WE'VE GOT RIGHT NOW?
AND WE JUST REALLY ABOUT A HALF
A MINUTE.
>> OKAY.
WELL, IT AUTHORIZES PAYDAY.
CURRENTLY YOU DON'T HAVE
ANYTHING AUTHORIZING PAYDAY.
SO IT AUTHORIZES THE PAYDAY
PRODUCT.
IT ALLOWS THE INDUSTRY TO HOLD
MULTIPLE CHECKS FOR ONE LOAN,
WHICH THEY COULD THEN BOUNCE
GOING BACK TO YOUR BOUNCED CHECK
QUESTION.
IT PERMITS HOLDING CHECKS,
UNFUNDED CHECKS, AS A COLLATERAL
FOR A LOAN.
IT ALLOWS HOLDING -- IT PERMITS
INTERNET LENDING WHICH ISN'T
ADDRESSED UNDER YOUR LAW.
IT ALSO PERMITS ACCESS TO A BANK
ACCOUNT AS COLLATERAL FOR THESE
PARTICULAR LOANS.
THOSE ARE JUST SOME OF THE -- A
FEW OF THE WAYS THAT THIS
LEGISLATION ACTUALLY DOES MORE
HARM THAN GOOD.
>> WELL, JENNIFER JOHNSON, WE
APPRECIATE YOU JOINING US FROM
WASHINGTON D.C. TO TAKE US
THROUGH SOME OF THIS.
>> IT'S MY PLEASURE.
THANK YOU.
>> PAYDAY LOANS AND LOANS OF ALL
SORTS RELATED TO ALL PEOPLE ARE
GETTING THROUGH THIS RECESSION.
THE DEPARTMENT OF REVENUE HAS
JUST RELEASED NEW NUMBERS ON THE
STATE ECONOMY AND WE LEARN ABOUT
THE GOOD NEWS AND THE BAD NEWS
OF THAT REPORT NOW WITH HELP
FROM JOHN KOSHINEN, THE
DEPARTMENT'S CHIEF ECONOMIST.
THANKS A LOT FOR BEING HERE.
>> PLEASED TO BE HERE.
>> SO THE GOOD NEWS IS THAT WE
CAN EXPECT THE STATE ECONOMY TO
START ADDING JOBS LATER THIS
YEAR ACCORDING TO YOUR REPORT.
>> RIGHT.
>> THE BAD NEWS IS THAT WE WON'T
BE BACK TO FULL STRENGTH TO
WHERE WE WERE BEFORE UNTIL THE
END OF 2012.
>> THAT'S CORRECT.
WE'RE EXPECTING REALLY THE
HIRING TO STATE TAKING PLACE
EVEN NEXT QUARTER.
WE HAVE ALREADY SOME SECTORS OF
THE ECONOMY ADDING JOBS, BUT AS
THE RECOVERY STARTS GAINING
STRENGTH, THAT WILL BECOME MORE
PERVASIVE.
>> WE WERE JUST TALKING ABOUT
HOW THERE SEEM TO BE AN
EXPECTATION THAT MAYBE THIS
REBOUND WOULD HAPPEN FASTER THAN
THIS.
>> I ACTUALLY THINK THE PACE OF
THE REBOUND IS GOING TO BE
ADEQUATE.
THE PROBLEM WAS THAT THE
FALL-OFF WAS SO SHARP AND SO
FAST THAT YOU CAN HAVE A REBOUND
AND IT'S NOT GOING TO FEEL LIKE
IT FOR A WHILE, BUT IT'S CLEARLY
UNDERWAY.
>> WELL, THAT IS GOOD NEWS.
HOW DOES WISCONSIN'S LOSS OF
MORE THAN 153,000 JOBS IN THIS
RECESSION COMPARE HISTORICALLY?
>> IF YOU WERE TO CONSIDER THIS
RECESSION AS A SINGLE EVENT, IT
WOULD BE THE WORST, BUT IF WE
WERE TO GO BACK TO THE EARLY
'80s, THERE WERE TWO
RECESSIONS, ONE IN 1980 AND THE
OTHER ONE FOLLOWED IN '81, '82.
WISCONSIN REALLY DIDN'T RECOVER
MUCH FROM THE 1980 EPISODE, SO
THAT WAS SORT OF LIKE A
CONTINUING RECESSION.
THOSE JOB LOSSES FOR THE TWO
EVENTS WERE WORSE THAN THIS ONE.
>> BUT TAKING THIS AS A SINGLE
EVENT, YOUR REPORT SAYS
SOMETHING ABOUT NOT THIS BAD
SINCE WORLD WAR II.
>> THAT'S CORRECT.
>> YEAH.
SO THAT'S BAD.
WHAT SECTOR DID MOST OF THE JOB
LOSS OCCUR IN?
>> WELL, MANUFACTURING ACTUALLY
SURPRISING IS NUMBER TWO.
THE BIGGEST JOB LOSSES WERE IN
CONSTRUCTION.
AND THAT'S TRUE NATIONWIDE.
>> THOSE MANUFACTURING JOBS, IS
THE EXPECTATION THAT THEY WILL
EVER RETURN?
BECAUSE I DID READ ALSO IN THE
REPORT THAT WHEN THE RECOVERY
KIND OF STARTS HAPPENING, THE
SERVICE SECTOR WILL BE THE
SECTOR TO ADD JOBS FIRST.
>> THE SERVICE -- WELL, CERTAIN
AREAS OF THE SERVICE SECTOR
ALREADY ARE ADDING EMPLOYMENT.
IN TOTAL, THE SERVICE SECTOR
WILL HAVE SOME LEFT EARLY.
BUT WE WOULD EXPECT
MANUFACTURING JOBS TO START
COMING BACK BY THIRD QUARTER
THIS YEAR ACTUALLY.
>> ISN'T IT ALSO TRUE, THOUGH,
THAT WE EXPECT TO LOSE MORE
MANUFACTURING JOBS BEFORE WE
START GETTING THEM BACK?
>> WELL, WELCOME TO THE LOVELY
WORLD OF AN ANNUAL AVERAGE
VERSUS AN AVERAGE.
LAST YEAR AS THE ECONOMY WAS
GOING DOWN, WE WERE LOSING JOBS.
WE FIGURE OUT THAT AVERAGE.
THIS YEAR WE'RE EXPECTING TO
START COMING UP, BUT WE'RE
STARTING FROM A LOWER BASE,
HENCE MY REFERENCE TO BY THIRD
QUARTER WE'LL BE ADDING JOBS.
>> HOW DO YOU MAKE THESE
PROJECTIONS SO FAR OUT?
>> I'M -- WE -- THE STATE OF
WISCONSIN DEPARTMENT OF REVENUE
IS ONE OF ABOUT SEVEN STATES
THAT HAS PROPRIETARY MODELS.
WE HAVE A NATIONAL MODEL
PREPARED BY A NATIONAL
FORECASTING SERVICE.
WE USE THOSE INPUTS AND OUR OWN
KNOWLEDGE OF WISCONSIN ECONOMY
TO DO THE FORECASTS.
>> AND HAVE THEY PROVED CORRECT?
>> YOU KNOW, I WAS ACTUALLY
GOING TO SIT THERE AND TRY TO
FIGURE THAT OUT, THEIR TRACK
RECORD.
IF WE LISTEN TO ONE SIDE IS VERY
GOOD.
I ACTUALLY THINK WE DID A
REASONABLE JOB THIS YEAR.
>> WHAT ABOUT MOVING INTO
ANOTHER AREA, WISCONSIN PERSONAL
INCOME.
>> RIGHT.
>> WHERE IS THAT AT A HISTORICAL
LEVEL?
>> SORT OF INTERESTING CROSS
CURRENTS THERE.
THE STATE OF WISCONSIN'S
PERSONAL INCOME IN 2009 PROBABLY
FELL.
AND THAT'S NATIONWIDE IT DID
FALL.
SO WE'RE NOT UNUSUAL IN THAT
RESPECT.
HOWEVER, WE'RE SEEING SOME
EVIDENCE THAT WE'RE STARTING TO
COME OUT A LITTLE EARLIER AND
STRONGER THAN WE WOULD HAVE
EXPECTED.
THIRD QUARTER WISCONSIN PERSONAL
INCOME WAS ACTUALLY AMONG THE
STRONGEST IN THE COUNTRY.
WE WERE LIKE FIFTH-RANKED, IN
PART -- THIS SORT OF SAYS ONCE
YOU GET SOME WAGE RATES BACK --
WAGE GAINS BACK AND SOME HOURS
BACK IN MANUFACTURING, EVEN IF
THE EMPLOYMENT NUMBERS AREN'T
COMING UP, JUST GETTING THE
HOURS UP HELPS A LOT.
THE OTHER OF WHICH IS NORMALLY
OVER A LONG PERIOD STATE OF
WISCONSIN WOULD NOT HAVE BEEN
ABOUT THE GREAT LAKES AVERAGE IN
PERSONAL INCOME, BUT WE CROSSED
THAT IN 2008, SO WE ARE NOW
ABOVE OUR NEIGHBORS OF INDIANA,
OHIO, MICHIGAN.
WE ARE EXPECTING IN THIS
FORECAST THAT OURS RELATIVE TO
THE REST OF THE COUNTRY WILL
INCREASE.
>> WHAT IS THE TAKE-AWAY MESSAGE
FOR FOLKS ON WISCONSIN'S ECONOMY
FROM HERE ON OUT?
>> I ACTUALLY THINK WE'RE MORE
COMPETITIVE THAN A LOT OF PEOPLE
GIVE US CREDIT FOR.
AND I THINK WE ARE
WELL-POSITIONED GOING FORWARD.
THERE'S SOME EVIDENCE ALREADY
THAT MANUFACTURING WILL COME
BACK STRONGER.
AS A MANUFACTURING-INTENSIVE
STATE, THAT WILL ONLY HELP US.
THE OTHER ADVANTAGE WE HAVE IS
WE DIDN'T HAVE A LOT OF THE
CONSTRUCTION OVERHANGS LOTS OF
THE REST OF THE COUNTRY DID.
>> JOHN KOSHINEN, THANKS VERY
MUCH.
>> MY PLEASURE.
>> FROM THE ECONOMY TO HEALTH
CARE, FORMER U.S. SECRETARY OF
HEALTH TOMMY THOMPSON, WHO SAYS
HE STILL HASN'T MADE UP HIS MIND
ABOUT RUNNING FOR OFFICE, WAS
BACK IN THE STATE THIS WEEK.
HE SPOKE IN MADISON ON
WEDNESDAY.
DID WE MENTION HE STILL HASN'T
MADE UP HIS MIND ABOUT RUNNING
FOR OFFICE?
HE IS STILL WORKING ON HIS OWN
IDEAS TO REFORM HEALTH CARE.
>> I'VE GOT A PLAN THAT CAN
INSURE EVERYBODY.
PUT IT OUT FOR COMPETITION LIKE
WE DID ON PART D FOR MEDICARE.
LET EVERYBODY COME IN AND BID ON
IT, NO MATTER WHERE YOU ARE.
HEALTH INSURANCE?
YOU'D HAVE EVERY INSURANCE
COMPANY THAT'S IN THE HEALTH
CARE ARENA BIDDING ON IT.
YOU GET A LOT OF BIDDERS?
WHAT HAPPENS?
IT DRIVES DOWN THE PREMIUMS.
FOR THOSE UNDER 135% OF PREMIUM,
GIVE THEM ENOUGH MONEY TO BUY
THE HEALTH INSURANCE.
FROM ONE OF THESE CONTRACTORS.
CAN YOU IMAGINE HOW MUCH MONEY
WE WOULD SAVE?
AND CAN YOU IMAGINE EVERYBODY
WOULD BE COVERED WITH HEALTH
INSURANCE?
AND IT WOULD SAVE BILLIONS OF
DOLLARS.
YOU KNOW, JUST A COMMON SENSE
SOLUTION.
COMMON SENSE SOLUTION FROM
WISCONSIN TO SOLVE HEALTH CARE.
>> FORMER GOVERNOR IS EXCITED
ABOUT IT.
IN ABOUT A MONTH, SPRING WILL
ARRIVE, THE GROUND WILL THAW AND
IT WILL BE POTHOLE SEASON.
SOME ROADS WILL BE PATCHED,
OTHERS WILL BE REBUILT.
THE CURRENT STATE BUDGET CALLS
FOR THE DEPARTMENT OF
TRANSPORTATION TO SPEND $3.5
GILL I DON'TBILLION MAIN MAINTAINING STATE HIGH
WAIST.
THE CONSENSUS IS THE STATE IS
NOT SPENDING ENOUGH ON THE
TRANSPORTATION INFRASTRUCTURE.
IN 2006 A STUDY PEGGED
UNDERFUNDING AT MORE THAN $650
MILLION EVERY YEAR.
2006, BY THE WAY, WAS ALSO THE
YEAR AFTER THE LEGISLATURE ENDED
AUTOMATIC INCREASES IN THE
GASOLINE TAX.
IN PART ONE OF A SERIES, "HERE &
NOW" PRODUCER ART HACKETT
REPORTS THAT THERE'S A
DISCONNECT OVER HOW WE PAY FOR
THE WORDS WHICH CONNECT US.
>> THE ZOO INTERCHANGE ON I-94
IN MILWAUKEE IS THE STATE'S
BUSIEST.
IT'S THE CURRENT POST TERER CHILD
FOR THOSE WHO SAYS THE HIGHWAY
INFRASTRUCTURE IS IN A STATE OF
DECLINE.
>> THEY WERE BEING INSPECTED
ANNUALLY.
WE FOUND SOME ADVANCED
DETERIORATION ON THREE BRIDGES
IN PARTICULAR.
>> LAST YEAR, THAT TRIGGERED AN
EMERGENCY BRIDGE PROJECT
-FRPBLGT THE WORK GOT UNDERWAY
IN JANUARY.
>> IT'S BEEN DETERMINED BASED ON
THAT DETERIORATION THAT THE BEST
WAY TO PROCEED IS TO REPLACE
THEM VERY QUICKLY.
>> CREWS ARE BUILDING THREE NEW
BRIDGES PARALLEL TO EXISTING
ONES AT A PRICE TAG OF $15.3
MILLION.
THE STATE'S SHARE WILL BE PAID
FROM THE STATE TRANSPORTATION
FUND.
THAT MONEY COMES FROM GASOLINE
TAXES, ABOUT 31 CENTS A GALLON.
REGISTRATION FEES, CURRENTLY $75
FOR EACH SET OF LICENSE PLATES.
BUT NOT TOLLS.
WISCONSIN IS NOT ILLINOIS, AT
LEAST NOT YET.
BUT BACK TO THOSE NEW RAMPS
WE'RE PAYING FOR.
THEY'LL HAVE TO BE TORN DOWN
WHEN THE ENTIRE INTERCHANGE IS
REBUILT IN THE NOT TOO DISTANT
FUTURE.
>> I PUSHED TO TRY TO HAVE THIS
DONE IN THE LAST BUDGET CYCLE.
THE GOVERNOR HAD WANTED IN 2006
TO GET THIS THING DONE.
THE FISCAL CRISIS BEING WHAT IT
IS, IT DIDN'T GET DONE.
>> LEGISLATORS HAVE MIXED VIEWS.
JIM SHERIDAN SAYS IT'S NOT FAIR
TO BLAME THE FIX ON THE BUDGET
SITUATION.
THE BRIDGES WORE OUT BEFORE THE
REST OF THE INTERCHANGE.
>> SO SO
>> IT'S FRUSTRATING FOR ME, IT
SHOULD BE FRUSTRATING FOR EVERY
CITIZEN IN THE STATE OF
WISCONSIN.
AND IT IS EMBLEMATIC OF OUR
PROBLEMS IN TRANSPORTATION.
>> REPRESENTATIVE MARK GOTTLIEB
SAYS THE COMPLETE RECONSTRUCTION
OF THE ZOO INTERCHANGE WAS PUT
OFF FOR TOO LONG.
>> ZOO INTERCHANGE SHOULD HAVE
BEEN OUR NUMBER ONE FOCUS TO
MAKE TRUCKS COULD MOVE THROUGH.
THAT'S WHY WE HAVE A PROBLEM
RIGHT NOW.
IT'S INCREDIBLY FRUSTRATING.
THE ZOO IS THE TIP OF THE
ICEBERG IN SOUTHEASTERN
WISCONSIN.
>> IN 2006, GOTTLIEB COCHAIRED A
COMMITTEE ON FINANCING.
IT WAS KNOWN AS THE ROAD TO THE
FUTURE COMMITTEE.
WHAT THEY FOUND WAS THE GROWING
SHORTFALL IN WISCONSIN'S ABILITY
TO PAVE THAT ROAD.
>> WE LOOKED AT FOUR AREAS,
FINANCING OF STATE HIGHWAYS.
WE LOOKED AT LOCAL AIDS.
WE LOOKED AT TRANSIT.
AND THE FINDINGS WERE THAT WE
WERE SIGNIFICANTLY UNDERFUNDING
ALL THOSE AREAS.
>> GOTTLIEB SAYS THE SHORTFALL
IN 2006 WAS OVER $500 MILLION
PER YEAR.
A FOLLOW-UP CALCULATION IN 2008
RAISED THE FIGURE TO $700
MILLION.
THIS REVENUE STREAM IS DWINDLING
AS CARS BECOME MORE FUEL
EFFICIENT.
THAT'S DRIVEN UP THE SHORTFALL
SINCE THE GAS TAX SUPPLIES 57%
OF STATE TRANSPORTATION FUNDING.
>> WHAT WE'RE REALLY SEEING IS
THAT ON MILES DRIVEN, THE COST,
THE -- I SHOULDN'T SAY COST, BUT
THE REVENUE WE'RE COLLECTING IS
DECLINING.
SO IT'S NOT GROWING IN
RELATIONSHIP TO THE GROWTH OF
THE ECONOMY.
>> IT WASN'T ALWAYS THIS WAY.
FROM '83 TO 2005 THE STATE
INDEXED THE GAS TAX TO HOLD
REVENUES IN LINE WITH NUMBER OF
GALLONS OF GAS CONSUMED.
>> THE LEGISLATURE DECIDED THAT
INCREASE IN TAXES SHOULD BE
SOMETHING THAT THE LEGISLATURE
SHOULD VOTE ON.
SO WE ABOLISHED INDEXING.
SO WE DON'T SEE THAT AUTOMATIC
INCREASE.
>> WHEN THEY VOTED TO END
INDEXING, DID YOU VOTE TO END
IT?
>> I PROBABLY DID.
I MEAN --
>> THE OFFICIAL ROLL CALL SHOWS
TOWNSEND DEFINITELY DID VOTE TO
END INDEXING.
>> NEXT WEEK, ART WILL EXPLORE
SOME WAYS OUT OF THIS MESS AND
YOU'LL HEAR FROM THOSE WHO
AREN'T SURE THERE'S A MESS TO
BEGIN WITH.
NEXT WEEK IS WHEN THAT PAYDAY
LOAN BILL IS EXPECTED TO HIT THE
ASSEMBLY FLOOR.
THAT'S THE SUBJECT OF TONIGHT'S
CAPITOL INSIGHT SEGMENT, A NEW
MONTHLY FEE SHAOUR FEATURE HERE.
>> ON TOP FOR THIS WEEK, THE
PAYDAY LOAN BILL, A BILL THAT
DEMOCRATS SAID IS THE PRODUCT OF
A LOT OF WORK AND A LOT OF
COMPROMISE.
>> OF ALL THE NEWS AND THE
THINGS THAT YOU'VE BEEN HEARING,
WE BUST OUR BUTTS ON THIS GAME.
SO IT'S A LITTLE DISRESPECTFUL
TO ME IT MIGHT HAVE OCCURRED TO
THINK WE DIDN'T WORK HARD ON
THIS.
WE WORKED HARD ON THIS.
>> REPRESENTATIVE FEELS OF
COURSE THE CURRENT DRAMA HE'S
TALKING ABOUT, YOU WERE AT THAT
PRESS CONFERENCE, IS THE FACT
THAT SPEAKER MIKE SHERIDAN IS
HAVING A RELATIONSHIP WITH A
PAYDAY LENDER LOBBYIST.
HOW MUCH OF POLICY DO YOU THINK
THAT RELATIONSHIP, YOU KNOW,
CHANGES?
>> WELL, I MEAN, I THINK HE GOT
THE IMPRESSION FROM THAT PRESS
CONFERENCE THAT A LOT OF THE
DEMOCRATS WHO WORKED ON THIS
BILL ARE OBVIOUSLY FRUSTRATED
THAT THE SPEAKER'S RELATIONSHIP
HAS OVERSHADOWED THIS ISSUE.
ANYWAYS, BUT YOU CANNOT HELP BUT
TALK ABOUT IT.
AND PART OF THE REASON WHY IS
WHEN MIKE SHERIDAN WAS A RANK
AND FILE LAWMAKER, JUST LAST
SESSION HE SUPPORTED A BILL THAT
CAPPED INTEREST RATES AT 36% ON
PAYDAY LOANS.
THAT IS WHAT CONSUMER PROTECTION
GROUPS SAY IS THE WAY YOU DO IT.
AS SPEAKER, HE BACKED AWAY FROM
THAT.
SO FOR THIS NEWS TO COME OUT
NOW, IT JUST RAISES QUESTION
HES.
>> YEAH, IT DOES.
HE WAS BEFORE IT BEFORE HE WAS
AGAINST IT.
NOW, EVERYBODY AT THE CAPITOL
HAS AN OPINION ABOUT SPEAKER
MIKE SHERIDAN'S SHADOW OVER THE
PAYDAY LOAN ACTION.
BUT WE DECIDED TO GO AWAY FROM
THE CAPITOL AND GET THE FEELING
FROM SOMEONE LESS GLUED TO
PARTISANSHIP.
>> HERE IS WHAT POLITICAL
SCIENCE PROFESSOR MORDECAI LEE
SAYS.
POLITICIANS HAVE TO BE PEW ER
THAN CAESAR'S WIFE IF THEY WANT
TO STAY OUT OF TROUBLE.
THERE'S NO SUCH THING AS A
SEPARATE PRIVATE LIFE.
EVERYTHING IS PUBLIC.
EVEN BEHAVIOR THAT WAS AT THE
TIME OKAY CAN BE REINTERPRETED
YEARS LATER AS NOT SO.
101% TRANSPARENCY.
THAT WAS MORDECAI LEE.
>> THANK YOU.
NOW, IN A SEPARATE MATTER, YOU
KNOW, IN THE JUST KIND OF I'M
JUST SAYING CATEGORY, THE PAYDAY
LENDING INDUSTRY HAS BEEN
SPENDING RECORD AMOUNTS OF MONEY
ON CAMPAIGN CONTRIBUTIONS IN
WISCONSIN, ACCORDING TO THE
WISCONSIN DEMOCRACY CAMPAIGN,
FORCING A WOMAN THAT WE TALKED
TO OPPOSING THIS TO SAY THAT
THIS LEGISLATION IS LESS
COMPROMISE AND MORE CAPITULATION
BECAUSE WHAT ARE SOME OF THE
PRONGS OF THE BILL AS WE KNOW
THEM?
>> WELL, THERE IS NO 36% CAP.
THERE IS A LIMIT ON ROLL-OVERS,
BUT THEY SAY THERE'S WAYS AROUND
THAT.
THERE'S ALSO A $600 CEILING ON
THE AMOUNT THAT YOU CAN TAKE OUT
FROM A LOAN.
BUT TALK ABOUT COMPROMISE.
THERE'S A GOOD CHANCE THAT'S NOT
GOING TO BE IN THE FINAL BILL.
SENATE MAJORITY LEADER RUSS
DECKER SIGNALED HE DOESN'T CARE
FOR THAT.
HE DOESN'T KNOW WHO THE
LEGISLATURE IS TO TELL PEOPLE
HOW MUCH MONEY THEY CAN BORROW.
SO THERE'S A GOOD CHANCE THAT A
SENATE BILL WOULD LOOK
DIFFERENT.
DECKER SAID THEY WOULD BE
WORKING OFF THEIR OWN PIECE OF
LEGISLATION.
>> FIRST AUTOPSY IN UP IN THE ASSEMBLY NEXT
WEEK.
THAT'S OUR PROGRAM FOR TONIGHT.
NEXT WEEK PETER LEIDY RETURNS
AND WE'LL HAVE PART TWO OF ART
HACKETT'S REPORT ON PAYING FOR
WISCONSIN ROADS.
I'M FREDERICA FREYBERG.
HAVE A GREAT WEEKEND.
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