THE UNIVERSITY OF WISCONSIN’S INDEPENDENT STUDENT NEWSPAPER SINCE 1969 Volume XLIV, Issue 82
Monday, February 25, 2013
www.badgerherald.com
UW’S SEARCH FOR A NEW LEADER: PART ONE OF FOUR
Chancellor finalist brings economic perspective Tara Golshan Deputy News Editor
Julia Skulstad Senior Campus Editor In the eyes of Rebecca Blank, the acting Secretary of Commerce and one of four finalists in the Chancellor search and screen, a federal agency is not unlike the University of Wisconsin. UW’s Chancellor Search and Screen Committee announced Blank among three other academic finalists
late Thursday evening, narrowing down the year long search. In an interview with The Badger Herald, Blank, who was a member of President Barack Obama’s economic team, expressed her interest in economics and its relevance to the university. Blank said she spent much of the past two years thinking about the issue of American competitiveness, a concept which she says ties in directly with higher education.
According to the United solved with two factors, one States Department of of which are big research Commerce, under Obama, universities. “In the long run [there are] Blank has been working only two things to increase the that matter,” Blank United States’ said. “A skilled work competitiveness force and research in job creation, institutions on [the] innovation in the cutting edge of business sector innovation.” and overseas In many ways, competition. Rebecca Blank Blank said, much of All of these areas of concentration and the the Department of Commerce path to a stronger American is not unlike a university, economy, Blank said, can be citing the creation of budgets
State (red) and federal (blue) funding increases for Medicaid Walker’s plan 460.6 million, 320.3 million
4.38 billion, 66.7 million
Third plan
Sean Kirkby Senior Reporter
4.1 billion, savings of 164.2 million
Projected growth in Medicaid enrollment, by plan Walker’s plan: 5,000
Dems’ plan: 175,000
Third plan: 116,700
Gus McNair The Badger Herald
Wisconsin’s Medicaid options deconstructed Polo Rocha Senior Legislative Editor Two weeks ago, Gov. Scott Walker announced he would turn down the Medicaid expansion, opting for another plan he said would cover fewer people. Lawmakers will review his plan, which was part of the budget released last week, for the next few months. Meanwhile, Democrats and advocacy groups are pushing for two other plans during that time. Below is a rundown of all three plans. What is the Medicaid expansion? It is an option states have to expand eligibility in their Medicaid programs to those under 133 percent of the poverty level. The poverty level is currently an individual making $11,490 a year. Someone at 133 percent of the poverty level makes $15,282, and someone at 200 percent makes $22,980. How much does the federal government pay for the expansion?
The federal government pays 100 percent of the expansion’s costs until 2016. Then, the ratio gradually declines to its permanent level of 90 percent in 2020. Walker said given federal debt problems, he is unsure whether the federal government could maintain those funding promises. Walker’s opponents point to a provision Arizona Gov. Jan Brewer put in her acceptance of the expansion that let Arizona opt out if the ratio changes. How does that compare to the current ratio? The federal government currently pays about 60 percent for the state’s Medicaid programs, and the state pays about 40 percent. Walker’s plan would maintain that ratio. Does Wisconsin already cover all those less than 200 percent of the poverty level? Not all of them. Wisconsin is one of the few states that sets their eligibility at the 200 percent and under mark, but because of
an enrollment cap, it effectively leads to a long wait list. The BadgerCare Plus program, which is for lowincome children and their families, covers the most. The BadgerCare Plus Core program for childless adults does not. For the latter program, a 2009 cap on enrollees has led to the current 20,000 enrollees and a wait list of more than 100,000 childless adults. What would Walker’s plan do? Walker would remove the BC+C cap, giving Medicaid to 82,000 childless adults under 100 percent of the poverty level, and putting those above that level in private exchanges. He would also reduce the eligibility rate for the BC+ program to 100 percent, moving 87,000 of the less poor parents to private insurance exchanges and keeping the poorest in Medicaid. The state would have 5,000 fewer Medicaid enrollees, although his plan would not
MEDICAID, page 3
Republican legislators said last week they support Gov. Scott Walker’s budget proposals but are looking for ways to prevent a structural deficit, lower taxes further and prevent hiring more state employees. Bob Delaporte, spokesperson for the budgetwriting Joint Finance Committee’s co-chair Sen. Alberta Darling, R-River Falls, said Darling supports parts of Walker’s budget but has a few concerns about some of his proposals. “We want to make sure that the structural deficit is covered, that we do not raise taxes and that we don’t end up with a real deficit down the road,” Delaporte said. “We’re also concerned about the
bonding level listed in the bill. There is a lot we don’t know yet and have to find out.” According to his budget proposal, Walker wants an $824 million increase in funding for roads, some of which would be covered by bonding — where the state sells bonds to cover for expenses. Delaporte said new revenue streams may open up in the next few months due to an improving economy that will allow for less bonding. He added JFC members are currently studying the budget line-by-line. As part of his budget, Walker called for a $343 million income tax cut. According to a budget brief, a family with two workers, each earning $40,000, could receive a tax decrease of $100 by the next year for their household. While he said their review of the tax code is “budget neutral,” JFC member Rep. Dale Kooyenga, R-Brookfield, said simplifying the tax code and making changes to tax credits could lower taxes
State Politics Editor If Congress does not reach a compromise before Friday, Wisconsin’s national security employees and the public education system could be the target of massive federal spending cuts known as the sequester, according a White House statement released Sunday. The effects of the sequester would furlough roughly 3,000 U.S. Departments of Defense employees, which would cut around $12.4 million of their total pay. These federal spending cuts would also take approximately $10.1
million from Wisconsin’s Education for Children with Disabilities program and $8.5 million more from primary and secondary education funding. Additionally, the state would see more than $5 million in spending slashes to environmental programs. This would consist of $3,875,000 less funding to guarantee clean air and water, as well as a loss of $1,479,000 in fish and wildlife protection grants. With total spending cuts at $85 billion nationwide, the impact on Wisconsin could amount to 36,000 fewer jobs in Wisconsin, according to a statement
BLANK, page 3
further than Walker’s proposal. “No matter if you’re a Republican or a Democrat, a simple tax code is good for economic growth,” Kooyenga said. Kooyenga said many tax credits and deductions are designed to drive behaviors. He said he and other legislators are studying whether or not these programs work and what they can do to simplify them. He added many tax credits are inherently unfair or are not being used. He said the state could use the additional revenue from getting rid of credits that are not used to lower taxes for a certain bracket. He said he would like to reduce the length of income tax filings in half, from four pages to two pages. “If you’re a farmer and you want to farm, you don’t want to be a bureaucrat,” Kooyenga said. “You don’t want to finish working for the day and sit down and fill out bureaucratic paperwork. You want to spend some time with the family or
STRUCTURAL, page 4
Aye Paape Wisconsin sophomore forward Matt Paape looks on during a faceoff during Sunday night’s game against Penn State. Ian Thomasgard The Badger Herald
Impending federal sequester to impact state Noah Goetzel
was previously connected with both Northwestern University and the University of Michigan — Blank said she looks forward to returning to higher education. During her time away from the university environment, Blank said she gained an enormous appreciation for what universities do and why they are so important for American society. Blank said as chancellor
Republicans look to prevent structural deficits in budget Legislators attempt to scale back on Gov. Walker’s announced budget, lower taxes
Dems’ plan
and the idea of setting a mission and strategy. “[This] hopefully will provide a good background for the kind of leadership that the University of Wisconsin needs,” Blank said. According to a UW statement, Blank’s involvement with the DOC began in 2009, where she served as Under Secretary of Commerce for Economic Affairs. However, despite her time away from academics — she
from Rep. Mark Pocan, D-Madison, and Citizen Action of Wisconsin. Ald. Scott Resnick, District 8, and other University of Wisconsin and Madison officials met with Deputy Director of Intergovernmental Affairs Jay Williams on Friday to discuss how sequester cuts could affect the state. Resnick said UW could face big challenges due to cuts to its funding for research projects. UW Director of Federal Relations Rhonda Norsetter said the sequester could translate to approximately $35 million less in UW research funding. Norsetter
said she supports continued investment in UW research and a more balanced approach to reduce the deficit. The solution to avoid these sequester cuts is for Congress to raise taxes for the wealthy and special interests, CAW Executive Director Robert Kraig said in a statement. “The best way for Congress to avoid this unnecessary and selfinflicted crisis is to find the political courage to ask the wealthy and special interests to pay their fair share,” Kraig said. “This human-made crisis literally pits corporate tax loopholes against
© 2013 BADGER HERALD
children, seniors and our most vulnerable citizens.” While the sequester reduces the deficit, abrupt and senseless budget cuts will not boost the nation’s economy and do not focus on the root issues of the rising debt, Mark Graul, a Republican strategist and owner of Arena Strategist LLC said in a statement. Norsetter also expressed hopes Congress would reach consensus in time, in order to avoid the impacts such a across the board cut will make. “We hope that Congress finds another way to
SEQUESTER, page 2
INSIDE Chazen exhibit commemorates New Deal, 1930s First federal grant for artists celebrated in pieces on loan from Smithsonian
ARTS | 6
Is Walker’s budget best for the state? The Badger Herald Editorial Board weighs in with its opinion on the new budget.
OPINION | 5