Taxpayer Protection Amendment What It Does and How It Could Harm People with Disabilities

Bill Summary:

On February 14, 2006, Rep. Jeff Wood and Sen. Glenn Grothman introduced the Taxpayer Protection Amendment (TPA). They are bills AJR 77 (Assembly) and SJR 63 (Senate). They are the same versions of the bill. The TPA is very similar to the proposed constitutional amendment known as the Taxpayer Bill of Rights (TABOR). TABOR was introduced in the last legislative session but not passed. Here are the key features of the new TPA Amendment:

• The bill amends the State Constitution.
• It significantly changes the way state and local governments may raise public money.
• The TPA puts a cap on taxes, fees and other revenue collected by state and local governments using a formula based on population growth and inflation.
• Unlike TABOR, the TPA does not impose spending limits; however, because the TPA strictly limits the amount of money that state and local governments have available to spend; the effect is exactly the same.
• No state or local taxes could go above the cap unless a majority of the voters approve it in a referendum.
• Any state revenue above the limit must be put in an emergency “rainy day” fund. Excess local government revenue must be returned to the taxpayers.

Amending the State Constitution:

Amending the State Constitution is more complicated than passing a regular bill. The TPA needs to pass the legislature during two legislative sessions in a row. After the second approval by the legislature, a majority of the voters must approve the amendment in a statewide referendum. The Governor does not play a role in this process; he cannot veto the TPA.

The TPA would make a change in the process for amending the state constitution, but this change would only apply to amendments related to the new tax restrictions the TPA itself creates. If the TPA becomes law, then any future constitutional amendments related to tax limits would have to pass the legislature only once before going to a statewide referendum, rather than the two times required by current law.

The TPA is under consideration by the legislature for the first time this year. If it passes this spring, it could be considered again by the legislature in the next session, probably in early 2007. It could then be put before the voters as early as spring of 2007. The amendment would then go into effect starting with governments’ 2009 budgets.

Impact on Public Services:

All public services could be affected:

• State services, including Medicaid and long-term care programs; vocational rehabilitation; the correctional system, including state prisons and parole; state parks; and other state-funded programs.
• County funded and provided services, such as human services (ex. disability, family, and children services); jails; county parks; public transportation; road building and repair; public safety; county parks maintenance; and others.
• City, town, village and other municipality services, such as fire, police, libraries, public school regular and special education; road repair; parks; and others.

Direct Impact on People with Disabilities:

Legislation similar to the TPA has passed in other states and has devastated public services for people with disabilities. For instance, Colorado has made deep cuts in its Medicaid program, reduced mental health services, and dropped spending on education to last in the nation. The Council is very concerned that the TPA will have a similar effect in Wisconsin

• Special education services are already under funded; with a formula cap, it is highly unlikely funding will ever increase to improve or even maintain current services.
• Medicaid pays for a variety of health and long-term care services that people with disabilities depend on to live.
• Because of increases in the number of people served and increases in costs, especially for prescription drugs, the Medicaid budget has been growing at a rate greater than the TPA cap would allow.
• Most Medicaid services used by people with disabilities are considered OPTIONAL by federal law. Federal law requires all states to provide core Medicaid services but allows states to choose to provide additional services. If Wisconsin’s Medicaid budget has to be cut because of the TPA cap, Wisconsin could stop providing optional services. Here are some of the optional services provided in Wisconsin:
  
1. Dental services
2. Eyeglasses
3. Home and community based services
4. Personal care services
5. Medical transportation
6. Mental health and substance abuse services
7. Case management
8. Medical equipment and supplies
9. Physical and occupational therapy
10. Speech, hearing and language disorder services
11. Intermediate Care Facilities
12. Respiratory care services for ventilator-dependent individuals
13. Mental health crisis intervention services
14. School medical services

WCDD Position on TPA:

The Council is opposed to any amendment that places strict limits on government revenue and spending. The Council is very concerned that the TPA will have the same effect in Wisconsin that similar laws have had in other states. The Council believes the following:

• The TPA would have devastating effects on services for people with disabilities.
• Fiscal restraints have no place in the State Constitution. Keep responsibility for taxing and spending decisions in the legislature. Legislators are elected to make these decisions.
• The TPA needs a complete and comprehensive public debate prior to action by the legislature.

What People Can Do About TPA:

People concerned about the Taxpayer Protection Amendment (TPA) should contact their legislators. Legislators can be called and visited when home in their districts or at their Madison offices. Contact the toll-free Legislative Hotline at 1-800-362-9472 for information about your legislators and to leave messages for them.