Governor's Budget Calls For Hikes in Auto Insurance Premiums

When Wisconsin's budget is introduced, it often contains what we refer to as "non-fiscal policy" - items that are more legislatively - focused and have little to do with the budget, itself. In the last budget, Governor Doyle included 53 non-fiscal policy items including things like repealing the Qualified Economic Offer (QEO) for teachers, allowing UW Faculty to unionize, and gutting Truth-in-Sentencing provisions. Most of these items were removed by the Joint Finance Committee, due to a long-standing tradition that the committee return these policies back to the Legislature for full consideration.

The reason it's done in the first place, is to force legislators to vote for provisions they would not normally support because of the pressing statutory deadline that exists for passing the budget If these proposals were offered as standalone provisions for the whole Legislature to consider, many would likely die, as so many bills do every legislative session.

However, in this upcoming budget, Governor Doyle has been quite brazen in the non-fiscal policy items that he has decided to put forth. Though there are many, those of note include creating a domestic partner registry, repealing the QEO - a tool to help school districts hold down property taxes, attacking Milwaukee's School Choice program, and mandating the increase of auto insurance coverage minimums.

The increase in coverage amounts on auto insurance is particularly disturbing. The proposal calls for raising liability limits from $25,000 to $100,000 for each person, from $50,000 to $300,000 for each accident, and from $10,000 to $25,000 for property damage (Read the Milwaukee Journal Sentinel story here). According to the Insurance Journal, this could raise premium costs anywhere from 33 to 43 percent.

According to the Insurance Information Institute, in 2006, the average annual auto premium paid by Wisconsin citizens was $590. That means that the average driver will see an increase anywhere from $194 to $253 per year his insurance bill.

Unfortunately, while it has always been the policy of the Joint Finance Co-Chairs to remove these non-budgetary items from the budget, I have little faith that that will occur this time. With Democrats controlling both houses and the Governor's office, Democratic leaders will seize this opportunity to advance controversial policies that wouldn't stand the light of day if done in the regular process

If these policies are so worthwhile, they should go through the Legislature like every other major policy item. They should be available for public hearings so that regular citizens have the opportunity to scrutinize and critique the merits of the proposal. Pushing these things through in the budget is simply a way to advance the agenda of a few at the expense of open government and a fully involved public.

State Representative Robin Vos
State Capitol - Room 321 East - Post Office Box 8953 - Madison, Wisconsin 53708
Phone: (608) 266-9171 - Toll Free: (888) 534-0063 - Fax (608) 282-3663
Email: Rep.Vos@legis.wisconsin.gov