Topics of the week:

Auto Insurance Rates Rise

Wisconsin Property Taxes Among Highest in the Nation

Wisconsin Business Climate Among Worst in the Nation

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Auto Insurance Rates Rise

Many state residents have recently received letters from their auto insurance providers that state how changes made by the legislature will affect their rates.  When you read ‘legislature’ just insert ‘Democrat majority and Governor Doyle’ because not one Republican supported these changes made in the budget.  As a matter of fact, Republicans are currently introducing proposals that would repeal these devastating changes made in the budget.

Because of the changes to auto insurance, rates are expected to rise dramatically.  At the time of the budget debate, the Wisconsin Insurance Alliance estimated insurance premiums would rise by between 33 and 43 percent.  Now we find out motorcycle premiums will rise even more.  Because of medical payment coverage changes motorcycle premiums are expected to rise by over 500 percent.  This was not known at the time of the budget debate.

Before these changes over 90 percent of all claims were covered under the minimums that existed prior to the passage of the budget in Wisconsin.  In 2007, the average bodily injury claim in Wisconsin was $16,600 and property claim was $2,500.  Minimums prior to the changes in the budget for these types of claims were $25,000 and $10,000 respectively. 

Why would these changes be sought if the overwhelming amount of claims were already covered under current law?  And why would the Democrat majority seek minimums so high Wisconsin’s will be the highest in the nation?  The blame rests with the Democrats and their special interest trial lawyer allies. 

You only have to look at campaign contributions to know the story.  Trial lawyers donate to Democrats overwhelmingly and stand to reap millions in court settlements with these new changes.  Over the last few years, Governor Doyle received $262,000 from trial lawyers alone.

I stated in press releases and Nygren’s Notes e-newsletters when the budget debate took place the adverse consequences of these insurance changes in the budget.  Multiple newspapers called for these changes to be pulled out of the budget or at a minimum be debated as stand alone bills.  The Appleton Post Crescent called these changes, “the wrong idea for the state” and the Janesville Gazette stated, “Many [drivers] likely would drop their policies, leading to more uninsured motorists and driving up costs for those who have insurance.”

In my efforts to stop these changes, I went as far as to author a letter to the Joint Committee on Finance signed by 36 of my Republican colleagues which called for these changes to be removed from the budget.  Not one Democrat signed my letter.  I and other Republican legislators offered amendments to pull these changes out of the budget, but only garnered two Democrat votes in the Assembly.  Unfortunately, that was not enough to pull these items out of the budget.

To add insult to injury, in the budget was a change in state law that will mandate automobile insurance coverage beginning on June 1, 2010.  Prior to this mandate, Wisconsin was on average with the rest of the nation in the number of drivers not carrying insurance (15 percent).  With these added insurance costs, many drivers will take their chances and drive without it.  This will put more drivers at risk of a catastrophe in the event of an accident or of being charged a $500 fine if pulled over.

To remediate the adverse consequences of these insurance changes, Democrats from Milwaukee are throwing around the idea of eliminating the ability of insurance providers to use zip codes as one factor in setting insurance rates.  This is nothing more than a subsidy to high risk drivers that operate in much higher risk environments. 

If this were to pass, high risk drivers would have their insurance bill paid for by good drivers in lower risk communities.  Why should bad drivers from Milwaukee be subsidized by good drivers from Peshtigo?  That is a good question for the Democrat majority. 

I have a better idea.  Pass the Republican proposal and reverse these devastating automobile insurance changes made in the budget.  This will help keep families insured, protect them in the event of a catastrophic crash, and keep more money in their wallets.

Wisconsin Property Taxes Among Highest in the Nation

Wisconsin’s median average property tax bill is $1,066 above the national median average of $1,897.  Wisconsin’s lower median income made the affordability of property taxes 4^th worst in the nation.  Only Texas, New Jersey, and Nebraska were worse. 

Property taxes are expected to rise even more.  Under the budget passed this year, the conservative estimate by the Legislative Fiscal Bureau was a $1.5 billion property tax increase.  I have consistently fought to lower property taxes by opposing cuts to local governments and school aids.  Those aids keep property taxes low.  As well, I support property tax controls which limit the ability of government to raise taxes without community support.

Wisconsin Business Climate Among Worst in the Nation

Forbes Magazine ranks Wisconsin 3^rd worst in the country for best states to do business.  Wisconsin fell from the 8^th worst on the list last year.  Forbes uses employer costs, labor supply, regulatory environment, economic climate, growth prospects, and quality of life in its ranking.  Only Michigan and Rhode Island were below Wisconsin on the list.

The Tax Foundation released their annual report on employer friendly states.  Wisconsin was 9^th worst falling from 13^th worst a year ago.  This puts Wisconsin back in the top ten worst states for hostility to employers.  The Tax Foundation formulates their ranking by using corporate, individual, sales, and property taxes.  Unemployment rates are also used.  The most employer friendly state is South Dakota and the worst is New Jersey.

The Republican’s Wisconsin Jobs NOW Agenda will help improve Wisconsin’s business climate.  You can read about it from a press release I recently sent out here or view an overview of the Agenda here.