• FUNDING LAPSE – The JFC passed a $2.0 million cut to the WTCS budget. The motion, which passed along party lines (12-4), gives the WTCS flexibility in determining how the cut is achieved. Technically speaking, the motion is a funding lapse, a one-time cut to the WTCS funding. Unless other action is taken, the $2 million will be restored in the next budget.
  
  The JFC initially considered eliminating the $6.5 million incentive grant program. However committee members praised the important role the technical college play in the economy and expressed reluctance in making large cuts to the system.
  
  
• FINANCIAL AID – The JFC increased Wisconsin Higher Education Grant appropriation for WTCS students (WHEG-WTCS). The governor’s budget provided an increase to the WHEG funds for WTCS students (WHEG-WTCS) of 1.7% in 2005-06 and 1.6% in 2006-07. The JFC increased the WHEG-WTCS appropriation, approving an annual increase of 6% to the pool of grant funds for WTCS students.
  
  The WHEG program, which is administered by the Higher Education Aids Board (HEAB), is the state’s largest source need-based financial aid grants for resident undergraduates enrolled at UW campuses, WTCS districts, and tribal colleges.
  
  It should be noted that JFC decreased the 15.8% WHEG-UW appropriation increase proposed by the governor, instead approving a 6% annual increase.
  
  
• ECONOMIC DEVELOPMENT – The governor proposed an annual appropriation of $2.5 million to create Training Assistance Grants (TAG) administered by the Department of Commerce. Under the proposal, Commerce would award grants to businesses seeking to provide their employees with job training, giving priority to businesses that used the WTCS to provide that training. The JFC eliminated the proposal.
  
  
• ECONOMIC DEVELOPMENT – Rather than adopting the TAG proposal, the JFC transferred the administration an existing economic development program from the Department of Commerce to the WTCS. The JFC provided $1 million annually for the Jobs Advantage Training Program (previously named the Business Employees’ Skill Training program — BEST). Under the proposal, businesses with no more than 50 full-time employees and with no more than $5 million in revenues would be eligible for job training grants from the WTCS of no more than $20,000.
  
  
• ECONOMIC DEVELOPMENT – The governor proposed a $5 million appropriation in 2006-07 to create Super Employment and Economic Development Zones (SEEDZ) for businesses located in areas with high unemployment rates. The grants, which would be administered by the Department of Commerce, could be used for a variety of purposed, including job training. The JFC eliminated the proposal.
  
  
• BACCALAUREATE EXPANSION – The governor proposed approximately $1.1 million in 2006-07 to fund the implementation of the COBE recommendations, which aim to increase the number of Wisconsin residents with 4-year degrees. The JFC reduced the governor’s recommendation by $611,400, leaving a $500,000 appropriation for COBE implementation in 2006-07.
  
  
• ALCOHOL AND OTHER DRUG ABUSE – The JFC eliminated the WTCS’s AODA grant program and deleted the $501,400 associated with the program. The item was not included in the governor’s budget proposal.
  
  
• MANUFACURER’S EXTENSION CENTER GRANTS – The governor proposed transferring the administration of Manufacturer’s Extension Center grant program from the Department of Commerce to the WTCS and proposed increasing annual funding from $850,000 to $1.5 million. The JFC eliminated the proposal. The JFC maintains annual funding at $850,000 and maintains Commerce’s administration of the program.
  
  Wisconsin Manufacturer’s Extension Center grants provide financial assistance to the Wisconsin Manufacturers Extension Program (WMEP) and Northwest Wisconsin Manufacturing Outreach Center (NWMOC). WMEP and NWMOC provide process improvement and technology transfer services to manufacturers. WMEP and NWMOC instructors work directly with manufacturers to address training and other needs in areas such as production techniques, technology applications, and business practices.
  
  
• HIGHER EDUCATION TASK FORCE – The JFC approved the creation of a Higher Education Task Force to “study the public benefits of Wisconsin public higher education.”

The JFC will also likely take up the issue of the “tax freeze” in the coming days. Previous Republican versions of the tax freeze would have limited WTCS tax levy growth to 2.6%.

After action by the JFC, the budget bill requires passage by both houses of the state legislature and the signature of the governor. The legislature has an opportunity to amend the JFC version of the bill and the governor — through the line-item veto — can selectively strike specific portions of the budget bill.