Yesterday's public hearing of the Wisconsin Assembly Committee on Energy and Utilities and the Wisconsin
Senate Committee on Commerce Utilities and Rail on AB 207/SB 107 was an endurance marathon for both the legislators and their staff and for
the 150 or so of us who attended to testify or observe or record. About
70 people registered to testify; probably about 50 actually did so
since many had to leave as the afternoon wore on.
The AT&T-backed,
fast-tracked legislation would create a new, almost entirely
unregulated state-level franchise for video service and eliminate the
current system of municipal cable franchises. Cable companies and telephone companies would get a state-issued permit to sell wired video anywhere in the state.
I'm against it. Read why here and here and here.
I arrived at the hearing 30 minutes early (9:30 am) and left about 6:00 pm after I testified. I'd guess there was about 30 minutes more testimony before it ended. Could've taken even more. There was no break. The poor staff and legislators ate lunch at the podium and kept on calling witnesses. They opened two overflow rooms with the audio piped in and it was still SRO until sometime after 4 pm. (Update: it went until 7 pm, a total of 9 hours.)
Cities and their access operations filled the place. Testimony about the importance of continued local value of municipal fire training, kids TV, educational uses, and community-level video came from Oshkosh, Sun Prairie, Janesville, Milwaukee, Jefferson, Madison, Sturgeon Bay, Wausau, Rice Lake, Merrill, West Allis, the Milwaukee suburbs, and about five more I missed when I left the room from time to time. The Communications Workers of America, AT&T's largest union, was there in force, as were AT&T's officials, lobbyists, and astroturf groups like TV4US. Video cameras from WISC-TV, WKOW-TV, CityChannel12, WYOU, and a couple local access operations Assorted suited folks from the cable industry, other telecom players, WCM, Wisconsin Broadcasters' Assn and a variety of legislative aides taking notes for the boss completed the crowd.
Here's WISC-TV's take from Colin Benedict:
During Tuesday's meeting, there were two major concerns expressed by
those who testified. First, the bill would strip consumer protections
away from cable customers. Second, it could threaten public access
channels.
The most interesting testimony came from Janet Jenkins of the Wisconsin Department of Agriculture, Trade and Consumer Protection, who expressed concerns that AB 207/SB 107 would leave consumers totally unprotected and the state totally handcuffed to do anything beyond grant a franchise in perpetuity.
From Milwaukee JournalSentinel coverage:
Janet Jenkins, the state's top consumer advocate, said the bill,
called the Video Competition Act, would weaken existing standards in a
variety of ways. She said, for instance, it would no longer ensure
30-day notice of rate increases to customers.
At the same time, she said, it would end the right to have service
repaired within 72 hours and would not require credit be given on
consumers' bills when a service interruption of four hours or longer
occurs.
"We have significant concerns about the total lack of consumer
protections in the legislation," said Jenkins, administrator of the
Division of Trade and Consumer Protection.
The Capital Times's David Callender reported that Assembly Speaker Mike Huebsch doesn't see the consumer issues as a problem:
Huebsch said the bill, which was the subject of a daylong
standing-room-only hearing before both Assembly and Senate committees
on Tuesday, would likely be up for Assembly approval by late April or
early May.
He said he believes the bill should be approved quickly and that consumer issues could be resolved later.
If
there are abuses, "then I guarantee you that both parties will quickly
try and change that. But I don't believe you are going to see the
doomsday analysis that some are (predicting) regarding the removal of
those protections," Huebsch said.
Wisconsin Public Radio's coverage has audio (of course) here.
The Badger Herald's reporter, Jessi Polsky, actually stuck around long enough to accurately report my oral testimony that this bill will cause a local tax increase:
Barry Orton, professor of telecommunications at the University of
Wisconsin, said the bill aims to eliminate local franchises and replace
them with a single statewide franchise — in which local governments
would not have any authority.
He said passing the bill would result in an increase in taxes to make up for monies formerly made through franchise fees.
Orton said franchise fees — dollars paid by private companies to
local governments in exchange for use of public rights-of-way — provide
great benefits to the entire community.
“[Franchise fees] pay for services that benefit all citizens, who jointly own local rights of way,” Orton said.
He added passing the bill will result in a decrease of the total
amount of income from franchise fees and force many former cable
customers to use a satellite product, thereby removing citizens — and
income — from the franchise fee base altogether.
“The bill would achieve a 15-25 percent reduction in the franchise
fee gross base,” Orton said. “[It] will cause local property taxes to
rise.”
Here's my written testimony. Took it out of this already too-long and updated too many times post.
- Barry Orton
Paul is correct. The decrease in funding of our categorical aids is strangling the school district.
Special education aid: When revenue limits started in 1993-94, the state special ed reimbursement was 45%. Current reimbursement is 28.6%. The mandates have not changed....just the state's contributions. Because of this unfunded mandate, the district's resources declined by $9.4 million compared to the 45% reimbursement rate.
The governor has a provision in this budget to slightly increase special education aid. Please write to your legislators to support this increase. The increase would provide the MMSD with an estimated $1,032,000 in 2007-2008 and $1,721,000 in 2008-2009.
To put this into perspective, if the state kept their promise to fund 45% of the special ed costs, the district would have an additional $9.4 million for the upcoming year. Our budget gap for this year is $10.5M. Big difference between cutting $10.5M and $1.1M.
The same story is true of the Bilingual-Bicultural aid from the state. When state revenue limits began, state reimbursement was 33% for bilingual-bicultural expenses. The current reimbursement is 12%. Loss of resources to the district of $2.2 million.
So, if the state kept their promises for both special ed and bilingual-bicultural aid, the MMSD budget would not have to cut this year.
What can you do?
Short-term, there are some items in the governor's budget that would help in bringing additional funds to the district. Write/contact your legislators in the next few weeks. Information on how to do this can be found on the district web site.
http://www.mmsd.org/ Click on "Take Action on School Funding"
Long-term: we need to fix the school funding system. Last night the Board help a community advocacy meeting to discuss the governor's budget and the longer term plan to advocate for school funding. We have started a community "Legislative Action Team". We will be sending out information next week on future meetings and action items. If you would like to be put on this distribution list, please send an email to myself at [email protected] or to the entire Board at [email protected]
Thanks very much.
Arlene Silveira
Madison Board of Ed