>> THE FOLLOWING PROGRAM IS A PBS WISCONSIN ORIGINAL PRODUCTION.

>> WITH REVISED RESPECT.

>> THE RESPECT SPHERE MARRIAGE ACT CLEARS ITS FINAL HURDLES IN CONGRESS AND FEDERAL RECOGNITION OF SAME-SEX MARRIAGE HEADS TO THE PRESIDENT DESK.

AND IN WISCONSIN, DEMOCRATS AND REPUBLICANS GEAR UP FOR 2023 AND WHAT TO DO WITH AN HISTORIC BUDGET SURPLUS.

I'M FREDERICA FREYBERG.

TONIGHT WE RETURN TO NELSONVILLE TO INVESTIGATE WHERE NITRATE CONTAMINATION IS COMING FROM AND HEAR FROM THE DNR IN ITS ROLE IN WATER REGULATION.

JASON STEIN ON WHAT HE CALLS AN ASTOUNDING BUDGET SURPLUS AND STATE PARTY LEADERSHIP FORESHADOW PRIORITIES FOR THE COMING YEAR.

IT'S "HERE AND NOW" FOR DECEMBER 9TH.

>> FUNDING FOR "HERE AND NOW" IS PROVIDED BY THE FOCUS FUND FOR JOURNALISM AND FRIENDS OF PBS WISCONSIN.

>> ON THIS PROGRAM LAST WEEK, WE HEARD FROM A VILLAGE WHOSE PRIVATE WELL WATER IS CONTAMINATED WITH NITRATE.

THIS WEEK, "HERE AND NOW" REPORTER NATHAN DENZIN TAKES US BACK TO NELSONVILLE TO FIND OUT WHERE THE NITRATE IS COMING FROM AND WHAT RESIDENTS CAN DO ABOUT THEIR CONTAMINATED WATER.

>> IT DOESN'T TASTE ANY DIFFERENT.

IT DOESN'T LOOK ANY DIFFERENT.

NO SMELL TO IT.

IT TASTES GREAT.

>> WHAT HE FOUND OUT IS HIS FAMILY'S PRIVATE WELL WATER HAD UNSAFE NITRATE LEVELS, A PROBLEM RESIDENTS IN THE SMALL VILLAGE OF NELSONVILLE IN PORTAGE COUNTY LEARNED ABOUT BACK IN 2018.

THE TWO CONTRIBUTORS UNDER THE MICRO SCOPE MANURE FROM FARM ANIMALS OR SEPTIC SYSTEMS THAT LEAK HUMAN WASTE.

PORTAGE COUNTY WATER RESOURCE SPECIALIST JEN MCNELLY SAYS SCIENTIFIC WATER TESTING SHOWED NIGH RATES ARE LARGELY COMING FROM AGRICULTURE.

>> PROBABLY NOT BY AND LARGE THE LARGEST CONTRIBUTING SOURCE OF IT IS SEWER.

>> GORDONDALE FARMS WITH OVER 1,000 COWS.

ITS OWNER AND HIS FAMILY HAVE BEEN FARMING THIS LAND NEAR NELSONVILLE SINCE 1900.

>> I THINK WE HAVE TO BE REALLY CAREFUL WHEN WE TALK ABOUT THE SCIENCE SHOWS.

WE WOULD REALLY LIKE TO SEE MORE RESEARCH ON THAT.

THEY SEEM TO HAVE DISMISSED SEPTIC.

>> GORDON SAYS HE ACCEPTS FARMING FROM IMPACT DRINKING WATER BUT HE IS NOT CONVINCED HIS OWN FARM IS.

>> OUR TAKE ON THE NITRATES FROM OUR STANDPOINT IS OUR FARM HAS ALWAYS HAD A PLAN SINCE 1981 AND FOLLOWED EVERY REGULATION PUT FORTH TO US.

SO TO BE HONEST, IT IS QUITE A PUZZLE.

WHERE IS IT COMING FROM?

WHAT IS THE DEAL?

>> BY ALL ACCOUNTS GORDONDALE FARMS HAS FOLLOWED EVERY DNR NITRATE REGULATION AND IN RECENT YEARS GONE FURTHER.

IN MOST PLOTS NEAR THE VILLAGE, GORDON SAYS HIS FARM PLANTS ALFALFA OR ITALIAN RYE GRASS THAT SOAK UP MORE NITRATE IN SOIL THAN CORN.

DESPITE THE EFFORTS AND ABIDING BY REGULATIONS AGRICULTURE REMAINS THE LIKELY CULPRIT IN PART BECAUSE DNR RULES DON'T ACCOUNT FOR THE SANDY SOILS IN THE REGION.

ALSO WATER FLOW ITSELF AFFECTS WHAT KIND OF WASTE, AGRICULTURAL OR SEPTIC, IS ENDING UP IN WELLS.

PETE ARNTSEN IS A HYDROLOGIST FOR AN ENVIRONMENTAL GROUP.

>> BECAUSE OF THE HYDRO GEOLOGY THE WATER FROM THE SEPTIC SYSTEM PASSES ABOVE ALL THE WELLS AND DISCHARGES TO THE RIVER AND REALLY ISN'T THE ISSUE.

>> BECAUSE WELLS DRAW FROM GROUNDWATER, CONTAMINATION CAN COME FROM MILES AWAY AND TAKE YEARS TO END UP IN THE DRINKING WATER.

AGRICULTURAL PRACTICES LIKE THE ONES GORDON HAS TURNED TO CAN REDUCE THE NITRATES IN PRIVATE WELLS.

BUT ACCORDING TO SCIENTIST GEORGE KRAFT IT CAN ALSO TAKE YEARS.

EVEN DECADES.

>> I THINK WE'D BE ALMOST OUT OF THE WOODS, SIGNIFICANTLY IN 8, 10 YEARS AND MAYBE MOSTLY OR ENTIRELY IN 2025.

>> IN AUGUST, THE DNR TOLD GORDONDALE FARMS IT HAD TO INSTALL THREE MONITORING WELLS ON ITS PROPERTY.

GORDON IS FIGHTING THAT IN COURT.

FOR ITS PART, THE VILLAGE ALSO HOPES TO USE A QUARTER MILLION DOLLARS IN FEDERAL FUNDS TO INSTALL ITS OWN MONITORING WELLS.

SO FIGHTS OVER THE MONITORING WELLS AND WHO IS AT FAULT FOR THE CONTAMINATION IS FRAC TOURING THE COMMUNITY.

>> I WOULD SAY THAT A LOT OF PEOPLE ARE ANGRY.

>> LISA ANDERSON IS A CLEAN WATER ADVOCATE WHO LIVES IN NELSONVILLE.

>> WE HAVE BEEN ACCUSED OF HAVING AN AGENDA.

WE'VE BEEN TARGETED ON SOCIAL MEDIA.

>> TEMPERS ARE DEFINITELY HIGH.

>> I'M SURE -- WE EITHER GET A PLUGGED NOSE OR GET A FINGER.

THE SAD PART, WE'RE BUSY FIGHTING EACH OTHER.

I UNDERSTAND CLEAN WATER IS EVERYONE'S RIGHT, BUT IF YOU ARE GOING TO LIVE OUT HERE IN PARADISE, IT'S YOUR RESPONSIBILITY TO TAKE CARE OF YOUR WELL AND TAKE CARE OF YOUR SEPTIC SYSTEM.

>> THE SPEND $10,000 ON A WELL FOR MOST OF US IS A MAJOR EXPENSE AND MANY CAN'T AFFORD IT.

AND I THINK MANY OF US FEEL LIKE WHY SHOULD WE HAVE TO?

>> GORDON ALSO SAYS HE CAN'T AFFORD THE MONITORING WELLS HE IS ORDERED TO DIG AND IT COULD PUT HIM OUT OF BUSINESS.

VILLAGE RESIDENTS SAY THEY DON'T WANT THAT.

THEY JUST WANT CLEAN WATER.

>> I'M NOT ANTI-AG.

JUST GET THAT OUT OF THE WAY.

IT'S NOT THE FARMER AT ALL.

THEY ARE WORKING AS HARD AS THEY CAN TO MAKE A GOOD LIVING AND THAT'S FAIR.

>> STILL, RESIDENTS SAY THE STATE SHOULD IMPOSE NEW REGULATIONS FOR THE CENTRAL SANDS REGION TO PROTECT THE GROUNDWATER.

>> THE RULE IS THE PROBLEM.

SO THE DNR NEEDS TO STEP UP AND FIX THIS ISSUE IN MY MIND.

>> FOR "HERE AND NOW" I'M NATHAN DENZIN IN NELSONVILLE.

>> A DECISION WHETHER GORDON SHOULD PAY FOR CONSTRUCTION OF MONITORING WELLS ON HIS PROPERTY IS EXPECTED IN COURT OVER THE NEXT FEW MONTHS.

AS WE JUST HEARD, SOME PRIVATE WELL OWNERS IN NELSONVILLE SAY THE RULES ARE THE PROBLEM AND CALL ON THE WISCONSIN DEPARTMENT OF NATURAL RESOURCES FOR HELP IN ADDRESSING NITRATE CONTAMINATION THERE AND ACROSS THE STATE.

WHAT HAS BEEN DONE TO HELP AND WHAT MORE REMEDIATION IS IN THE OFFING?

WE TURNED TO JIM ZELLMER, DEPUTY ADMINISTRATOR IN THE DNR'S ENVIRONMENTAL MANAGEMENT DIVISION.

THANK YOU FOR BEING HERE.

>> THANKS FOR HAVING ME.

>> SO WE KNOW THE UPDATE TO THE DNR RULES FOR WATER QUALITY THAT WERE TO ADDRESS NITRATES IN AREAS SUSCEPTIBLE TO GROUNDWATER CONTAMINATION DID NOT HAPPEN.

YET THAT IS WHAT CONCERNED PEOPLE IN PLACES LIKE NELSONVILLE ARE CALLING FOR.

WHAT CAN YOU TELL THEM?

>> SURE.

AS YOU MENTIONED, YOU KNOW, WE HAD STARTED THE RULEMAKING A COUPLE YEARS BACK AND BROUGHT STAKEHOLDERS TOGETHER TO TRY TO ESTABLISH TARGETED PERFORMANCE STANDARDS FOR AREAS THAT ARE SUSCEPTIBLE TO GROUNDWATER CONTAMINATION.

UN WE RAN OUT OF TIME.

JUST COULD NOT REACH CONSENSUS WITH ALL OF OUR STAKEHOLDERS TO MOVE THE RULE FORWARD.

SO WE STOPPED OUR RULEMAKING.

WE CONTINUED THE DISCUSSIONS WORKING WITH OUR STAKEHOLDERS ON MAKING PROGRESS.

REALLY FOR THAT SHARED GOAL OF REDUCING NITRATE CONTAMINATION TO THE GROUNDWATER.

>> HAS THAT WORKED, WORKING THROUGH IT EVEN IN THE ABSENCE OF THE ENACTMENT OF THOSE UPDATED RULES?

>> YEAH, WE CONTINUE TO WORK WITH OUR STAKEHOLDERS AND WE HAVE BEEN VERY IMPRESSED.

OBVIOUSLY WITH WORK WITH OUR SISTER AGENCY THE DEPARTMENT OF AG AND ALSO WITH THE UNIVERSITY OF WISCONSIN ON REALLY PROVIDING THE AGRI-BUSINESS WITH THE SCHOOLS THEY NEED TO PROPERLY MANAGE, TO APPLY THEIR FERTILIZER, BE IT EITHER IN COMMERCIAL OR MANURE TO MAKE THE MAXIMUM USE OF IT AND MAKE IT AVAILABLE FOR THE CROPS BUT NOT TO RESULT IN LEACHING TO THE GROUNDWATER.

AND WE'VE SEEN SOME VERY GOOD SUCCESS WITH -- WE HAVE OUR DEPARTMENT OF AG HAS PRODUCER-LED WATERSHED GROUPS ACROSS THE STATE.

WE HAVE WELL OVER 40 OF THESE GROUPS THAT ARE -- THIS IS REALLY FARMERS TALKING THE FARMERS.

LEARNING FROM EACH OTHER WHAT WORKS, WHAT DOESN'T.

WE'RE SEEING SOME GOOD SUCCESS WITH THAT.

>> WOULDN'T IT BE IMPORTANT IN YOUR MIND TO HAVE THE UPDATED RULES TO MAKE SURE THAT WE ATTAIN AND MAINTAIN CLEAN DRINKING WATER?

OR ARE WE OKAY WHERE WE ARE WITH THE STATUS QUO?

>> YEAH.

WE CONTINUE TO EVALUATE THAT.

WE'RE WORKING -- LIKE I SAID RIGHT NOW WITH OUR PARTNERS TO FURTHER THAT INITIATIVE.

ALSO SPECIFICALLY TO, YOU KNOW, UP IN THE NELSONVILLE AREA WHERE YOUR REPORT HAS BEEN FOCUSED ON, WE'RE JUST IN THE EARLY STAGES OF WORKING WITH THE PORTAGE COUNTY LAND AND WATER CONSERVATION DEPARTMENT TO DEVELOP A GEOGRAPHIC PLAN FOR THE WATERSHED TO LOOK AT THE CAUSES.

WE KNOW SOME OF THE CAUSES OF THE NITRATE CONTAMINATION AND THEN LOOK AT WHAT PRACTICES CAN BE PUT IN PLACE TO ADDRESS THOSE PROBLEMS.

IN THAT PLAN WILL BE MILESTONES AND THEN ALSO A CHECKING BACK AND REPORTING TO SEE WHAT'S WORKING AND WHAT'S NOT.

AND THEN MOVING FORWARD TO, YOU KNOW, FIND PROVEN TECHNOLOGIES THAT WE CAN WORK TOGETHER TO REDUCE THE NITRATE CONTAMINATION.

>> GIVEN EXPERTS DECLARE NITRATE CONTAMINATION IS WISCONSIN'S MOST COMMON GROUNDWATER CONTAMINANT ARE THESE CONCENTRATED ANIMAL FEEDING OPERATIONS GETTING NEW SCRUTINY?

>> THEY CONTINUE TO GET SCRUTINY.

THEY HAVE BEEN HEAVILY SCRUTINIZED AND CONTINUE TO BE SCRUTINIZED.

WE'RE VERY ENCOURAGED BY A NUMBER OF THE CAFO'S, WE HAVE EIGHT NOW WORKING ON WASTE WATER TREATMENT FACILITIES FOR THEIR OPERATION AND WE ALSO HAVE A NEW ORGANIC BIO DIGESTER THAT HAS BEEN PUT IN OPERATION IN BROWN COUNTY THAT, I BELIEVE, BRINGS IN MANURE FROM 14 NEARBY FARMERS THAT THEY THEN TREAT THE MANURE AND THEN THEY TREAT THE -- THEY GENERATE GAS THAT IS PUT INTO OUR NATURAL GAS PIPING SO WE CAN USE IT TO HEAT OUR HOMES.

ALSO THEY CONCENTRATE THE NITROGEN AND USE IT AGAIN FOR FERTILIZER AND THE SOLIDS CAN BE USED FOR BEDDING AND OTHER PURPOSES ON THE FARM.

VERY ENCOURAGING SOME OF THE THINGS GOING ON.

>> FOR PEOPLE SUFFERING FROM CONTAMINATED WELLS RIGHT NOW, I KNOW THERE IS A NEW WELCOME PEN -- WELL COMPENSATION PROGRAM.

>> GOVERNOR EVERS ALLOTTED $10 MILLION TO EXPAND THE WELL COMPENSATION PROGRAM THAT CAN BE USED FOR DRILLING A NEW WELL DEEPER TO FIND A SAFE SOURCE OF WATER OR CONNECTING TO A PRIVATE WELL OR PUBLIC WATER SUPPLY OR TREATMENT.

WE REALLY ENCOURAGE FOLKS.

SO FAR WE'VE -- THERE IS ENOUGH MONEY THERE TO FUND IN EXCESS OF 1600 WELL REPLACEMENTS.

SO FAR WE'VE ONLY HAD 40 APPLICANTS.

SO WE REALLY ENCOURAGE PEOPLE THAT ARE EXPERIENCING PROBLEMS WITH THEIR PRIVATE WELLS, THAT THEY CONTACT US.

THEY CAN GO ON OUR WEBSITE AT DNR.WI.GOV, TYPE IN WELL COMP AN THE FIRST THING THAT COMES UP WILL BE THE WELL COMPENSATION PROGRAM.

ELIGIBILITY.

AB ABLE -- APPLICATION PROCESS AND EASY TO FILL OUT.

WE ENCOURAGE PEOPLE TO USE THAT PROGRAM.

THANK YOU SO MUCH.

>> WISCONSIN IS IN THE BEST FINANCIAL SITUATION IN THE HISTORY OF THE STATE ACCORDING TO STATE OFFICIALS.

WE'RE TALKING ABOUT A PROJECTED $6.5 BILLION STATE BUDGET SURPLUS.

THAT'S 6.5 BILLION WITH A B.

IN THE REPORT "HERE AND NOW" REPORTER STEVEN POTTER EXPLORES HOW THE STATE CHECKING ACCOUNT ENDED UP SO FAR IN THE BLACK AND WHAT MAY EFFECT THE STATE'S FINANCES GOING FORWARD.

>> THE STATE IN THE CURRENT FISCAL YEAR IN JULY MORE MONEY THAN STATE AGENCIES WERE ALLOCATED FOR THEIR NEEDS.

YOUR HOUSEHOLD BUDGET.

PLANS FOR THE BILLS YOU HAVE AND PAY THEM WHEN DUE.

YOU GET A SURPRISE.

A LUMP SUMP PAYMENT RIGHT AFTER YOU PAY THE BILLS.

IN THE STATE'S CASE IT'S 6.5 BILLION.

ANALYSTS SAY THE REASON STATE COFFERS ARE OVERFLOWING ARE BECAUSE OF THREE FACTORS.

INFLUX OF FEDERAL FUNDS FROM COVID RELIEF BILLS THAT OFF SET COSTS LIKE MEDICAID.

ELECTED LEADERS HAVE KEPT TIGHT CONTROLS OVER AGENCY SPENDING A CONSIDERABLE INCREASE IN TAX REVENUE, SALES TAX AND INVESTMENT AND CORPORATE TAXES.

OF COURSE, INFLATION IS PLAYING A MAJOR PART IN THIS BALLOONING BUDGET SURPLUS.

THE MORE PEOPLE SPEND, THE MORE TAXES ARE COLLECTED.

OFFICIALS WAR THE PROJECTED SURPLUS IS NOT GUARANTEED AND THE END AMOUNT MAY BE SMALLER.

FACTORS INCLUDE A POSSIBLE RECESSION NEXT YEAR AS WELL AS ECONOMIC DISRUPTIONS WITH THE ONGOING WAR IN UKRAINE.

VOLATILITY OF BUSINESS AND STOCK MARKET COULD LEAD THE LESS CORPORATE AND INVESTMENT TAXES BEING TAKEN IN.

>> 2010-11 -- >> THIS SURPLUS IS IN CONTRAST TO YEARS PAST WHEN ELECTED LEADERS FACED BUDGET SHORTFALLS AND DEFICITS.

REGARDLESS OF HOW MUCH EXTRA SURPLUS THE STATE ENDS UP HAVING WE CAN BE SURE OF ONE THICK, THE STATES ELECTED LEADERS WILL ARGUE HOW TO SPEND IT.

FOR "HERE AND NOW" I'M STEVEN POTTER.

>> IN A NEW REPORT TITLED THE ASTOUNDING STATE SURPLUS THE WISCONSIN FORUM RESEARCH DIRECTOR SAYS THE PROJECTIONS OF A 6.5 BILLION SURPLUS ARE USEFUL BUT FAR FROM CERTAIN.

WE CHECK IN NOW WITH JASON STEIN FOR MORE ON THE IMPLICATIONS FOR STATE SPENDING AND TAXING.

JASON, NICE TO SEE YOU.

>> NICE TO SEE YOU.

>> YOU HAVE COVERED AND RESEARCHED WISCONSIN STATE BUDGETS FOR A WHILE.

AS YOU SAW THESE PROJECTIONS GROW, DID IT SURPRISE YOU?

>> ABSOLUTELY.

I THINK WHEN WE THINK ABOUT TWO YEARS AGO WHEN WE WERE AT THIS POINT, THINGS DID NOT REALLY LOOK THAT GOOD FOR THE STATE.

THEN WE HAD TWO VERY LARGE FEDERAL PIECES OF LEGISLATION, THE APPROPRIATIONS ACT AND AMERICAN RESCUE PLAN ACT THAT JUICED THE ECONOMY.

THEY SHOT STATE TAX COLLECTIONS UPWARD AND DESPITE INFLATION, THE STATE REALLY HASN'T SPENT A TON OF THAT MONEY.

SO THAT WE FIND OURSELVES HERE WITH THIS REMARKABLE SURPLUS.

>> HERE WE ARE.

ASTOUNDING SURPLUS.

WE DETAILED AND YOU EXPRESSED SOME OF THE REASONS THAT THE STATE COFFERS ARE SO FAT LIKE THE COVID FUNDS AND AN INCREASE IN SALES TAX REVENUE.

BUT WHAT KIND OF CHOICES, THEN, DO LEGISLATIVE BUDGET WRITERS MAKE WITH THIS MONEY?

>> WELL, THEY REALLY HAVE AN UNPRECEDENTED LEVEL OF CHOICE.

CLEARLY YOU'VE SEEN THE GOVERNOR AND LAWMAKERS TALK ABOUT SOME SORT OF TAX CUTS BOTH THE PERSONAL PROPERTY TAX IS SOMETHING MENTIONED AS WELL AS INCOME TAX CUTS.

I WOULD STAY TUNED FOR BOTH OF THOSE THINGS.

AND THEN WE HAVE HAD A WORLD WHERE IT'S 8% INFLATION AND YET LOCAL GOVERNMENTS AND SCHOOLS HAVE SEEN FAIRLY TIGHT LIMITS ON THEIR STATE AND LOCAL FUNDING.

THEY HAVE GOTTEN FEDERAL PANDEMIC FUNDSING BUT IT'S ALSO RUNNING OUT.

ONE KEY QUESTION IS DOES THE STATE TRY TO LOOK AT SOME OF THOSE ISSUES AT THE LOCAL LEVEL AND TRY AND STEP IN AND ASSIST THE LOCAL OFFICIALS.

>> FOR SURE WE KNOW THAT MUNICIPALITIES HAVE BEEN CRYING OUT FOR MORE SHARED REVENUE.

WOULD NOW BE THE TIME PERHAPS BOTH WITH ONE-TIME AND MORE SUSTAINABLE FUNDING GOING FORWARD?

>> RIGHT.

THERE ALWAYS OPTIONS THAT STATE OFFICIALS HAVE.

ONE THING THAT LOCAL OFFICIALS HAVE SOUGHT IS THE ABILITY TO LEVY THEIR OWN SALES TAX.

CITIES AND VILLAGES SHOULD BE ABLE TO DO THAT.

THE LEGISLATURE AT LEAST REPUBLICANS IN THE LEGISLATURE HAVE BEEN PRETTY RELUCTANT TO TAKE THAT ON.

SO TO THEM INCREASING STATE AID TO MUNICIPALITIES MAY SEEM LIKE A COMPROMISE POSITION.

WHEN WE TALK ABOUT THE MULTI-BILLION DOLLAR SURPLUS WE HAVE, IN YEAR ONE OF THE BUDGET, INCREASING SHARED REVENUE BY EVEN 10% WOULD BE SOMETHING LIKE $80 MILLION AND $160 IN YEAR TWO.

IN A NORMAL WORLD THAT'S A LOT OF MONEY.

BUT IN THE PRESENT CIRCUMSTANCE IT IS NOT AS MUCH AS IT TYPICALLY WOULD BE.

>> THEY'VE ALSO ASKED FOR AGAIN THIS KIND OF SUSTAINABLE FUNDING MECHANISM AND THAT WOULD BE LIKE THE LOCAL SALES TAX.

>> RIGHT.

YOU KNOW, THE STATE WOULD HAVE THE OPTION OF EVEN LAWMAKERS WHO ARE CONCERNED ABOUT RAISING TAXES COULD COMBINE A LOCAL SALES TAX WITH, SAY, INCOME TAX CUTS AT THE STATE LEVEL AND LEAVE TAXPAYERS AT LEAST IN THE STATE AS A WHOLE BETTER OFF OR PAYING LOWER TAXES.

BUT OF COURSE SALES TAX WILL HAVE MORE IMPACT ON PEOPLE AT THE LOWER END OF THE INCOME SCALES.

IT IS MORE REGRESSIVE.

SO THERE WILL BE A LOT OF DISCUSSION ABOUT THAT, I THINK.

>> STEPPING BACK A LITTLE BIT, WHAT DO YOU REGARD AS THE BIGGEST NEED AREAS.

>> GREAT QUESTION.

AGAIN, SCHOOLS HAVE BEEN AT THEIR STATE AND LOCAL REVENUE LIMITS HAVE BEEN FROZEN FOR TWO YEARS.

AND IS SO THAT'S SOMETHING THAT -- THE FEDERAL PANDEMIC AID IS RUNNING OUT.

THAT'S A MAJOR ISSUE.

YOU SEE AT -- IN TERMS OF PUBLIC SAFETY YOU SEE CITIES AND VILLAGES GOING TO REFERENDUM ASKING VOTERS TO APPROVE RAISING THEIR OWN PROPERTY TAXES THE PAY FOR PUBLIC SAFETY.

AND YOU SEE IN SOME COMMUNITIES THAT THAT HAPPENED IN NOVEMBER, WHICH IS PRETTY NEW.

YOU DON'T SEE THE LEVEL OF OTHER LOCAL GOVERNMENT REFERENDA.

THOSE THINGS THAT STEP OUT.

WE HAVE HIGHER EDUCATION, WE HAVE TURNOVER WITHIN STATE AND LOCAL GOVERNMENTS AND THEN WE HAVE INFRASTRUCTURE NEEDS AS WELL.

>> WE NEED A LOT OF MONEY TO DO A LOT OF THINGS AS ALWAYS IN A STATE BUDGET.

BUT AS WE HAVE POINTED OUT, IT IS NOT LIKELY TO BE SMOOTH SAILING BETWEEN THE GOVERNOR AND REPUBLICAN BUDGET WRITERS.

FOR EXAMPLE ON THINGS LIKE MEDICAID EXPANSION FOR AS WE'VE DISCUSSED SCHOOL FUNDING.

>> ABSOLUTELY.

SO ONE THING TO UNDERSTAND YOUR MEDICAID, THE SECOND BIGGEST EXPENSE FOR THE STATE HEALTHCARE, JUST TO KEEP CURRENT SERVICES THE SAME WOULD BE $3 QUARTER OF A BILLION OVER THE NEXT TWO YEARS.

AT THE SAME TIME THERE IS THIS OPPORTUNITY TO EXPAND THE PROGRAM AND PULL IN ADDITIONAL FEDERAL MONEY THROUGH THE FEDERAL AFFORDABLE CARE ACT AND THE AMERICAN RESCUE PLAN ACT, LIKE A BILLION AND A HALF OVER TWO YEARS.

THAT'S SOMETHING THAT THE REPUBLICANS HAVE TURNED DOWN IN THE PAST.

BUT I THINK THERE IS ALSO AN UNPRECEDENTED OPPORTUNITY FOR HORSE TRADING IN THIS BUDGET.

SO EVEN THOUGH YOU WOULDN'T EXPECT THAT TO BE ON THE TABLE, PERHAPS IT MIGHT.

>> I DOUBT IT.

I'M SORRY, THANKS VERY MUCH.

>> THANK YOU.

>> DEMOCRATS IN THE WISCONSIN LEGISLTURE WILL HEAD INTO THE NEXT SESSION WITH EVEN SMALLER MINORITIES BUT THE LEADERS OF THE PARTY IN THE SENATE AND ASSEMBLY SAY THEY STILL REPRESENT THE MAJORITY OF THE STATE.

"HERE AND NOW" SENIOR POLITICAL REPORTER ZAC SCHULTZ RECENTLY SAT DOWN WITH SENATOR MELISSA AGARD AND REPRESENTATIVE GRETA NEUBAUER AND HAS THIS STORY.

>> SENATOR AGARD IS STILL GETTING USED TO HER NEW OFFICE AND NEW POSITION AS THE DEMOCRATIC MINORITY LEADER.

>> IT FEELS A BIT LIKE DRINKING FROM A FIRE HOSE BUT I'M READY.

>> WITH ONLY 11 MEMBERS THE DEMOCRATS ARE POWERLESS TO PASS LEGISATION.

AGARD POINTS TO THE STATEWIDE WIN BY GOVERNOR TONY EVERS TO SHOW DEMOCRATS REPRESENT THE VALUE OF THE MAJORITY OF WISCONSIN.

>> ULTIMATELY WE MAY HOLD THE MINORITY OF SEATS IN THE STATE OF WISCONSIN, BUT WE KNOW THAT WE HOLD THE MAJORITY OF THE HEARTS OF THE PEOPLE OF THE STATE OF WISCONSIN IN THE WORK WE'RE DOING.

>> DEMOCRATS BLAMED REDISTRICTING MAPS FOR THEIR MINORITY STATUS.

REPRESENTATIVE GRETA NEUBAUER IS THE MINORITY LEADER IN THE ASSEMBLY FOR THE DEMOCRATS.

IT WAS A CHALLENGE TO FIND DEMOCRATS TO RUN FOR OFFICE.

>> WE ARE IN INCREDIBLY POLARIZED PARTISAN TIMES AND IT WAS HARD TO BOTH RECRUIT PEOPLE TO RUN, PARTICULARLY WOMEN, BECAUSE THEY KNEW THAT THEY AND THEIR FAMILY MAY FACE THREATS.

AND THAT UNFORTUNATELY DID BEAR OUT THIS CYCLE FOR CANDIDATES, FOR VOLUNTEERS.

>> ASSEMBLY DEMOCRATS WON 35 SEATS JUST ENOUGH TO PREVENT A REPUBLICAN SUPER MAJORITY THAT WOULD ALLOW THE GOP TO OVERRIDE ANY OF EVERS' VETOES.

IF TWO MEMBERS ARE MISSING THE GOP WOULD HAVE ENOUGH.

>> OUR CAUCUS UNDERSTANDS ONE OF OUR TOP PRIORITIES FOR THE SESSION IS BEING HERE IN MADISON TO MAKE SURE THAT IF REPUBLICANS ARE TRYING TO OVERRIDE GOVERNOR EVERS' VETOES AND MOVE OUR STATE BACKWARDS WE'RE HERE TO PROTECT THOSE VETOES.

>> NEUBAUER TOOK OVER AS LEADER PART WAY THROUGH THE LAST SESSION.

THIS IS HER FIRST FULL TERM IN CHARGE AND SHE AND AGARD UNDERSTANDS DEMOCRATS IN THE MINORITY NEED TO BE MORE THAN THE PARTY OF NO.

>> WE KNOW THAT A LOT OF PEOPLE ARE FRUSTRATED WITH POLITICS RIGHT NOW AND I THINK OUR RESPONSIBILITY IS TO PASS POLICY IN THE CAPITOL THAT MAKES PEOPLE'S LIVES BETTER AND SHOWS THAT GOVERNMENT CAN AND MUST BE A FORCE FOR GOOD.

>> THEY HOPE THE BUDGET WILL CREATE SPACES FOR COMPROMISE ON THINGS LIKE INCREASING SHARED REVENUE.

>> SUPPORTING OUR LOCAL GOVERNMENTS IS AT THE TOP OF THE PILE OF THINGS WE CAN AGREE ON.

IT IS WHETHER, YOU KNOW, SO WE HAVE THE ENDPOINT HOW DO WE GET THERE AND THE PATHS WE USE TO MOVE FORWARD?

THAT'S TO BE CONTINUED.

>> AGARD HOPES TO BREAK THE INPASS IN THE SENATOR OF ONFIRMING GOVERNOR EVERS' APPOINTEES.

REPUBLICANS HAVE REFUSED TO HAVE VOTES.

>> BASED ON WHAT I HEAR FROM COLLEAGUES ON THE OTHER SIDE OF THE AISLE WE'RE READY TO START MOVING FORWARD.

LET'S BRING IT TO THE FLOOR AND DEBATE IT AND LET'S VOTE UP OR DOWN.

IF THE MAJORITY PARTY DOES FEEL LIKE THE PERSON IS NOT THE RIGHT FIT, HOLDING THEM IN THIS WEIRD LIMBO ISN'T GOING TO HELP THE STATE OF WISCONSIN.

>> THERE IS ONE AREA WHERE DEMOCRATS ARE NOT LOOKING FOR COMMON GROUND, ABORTION.

>> THERE ARE SOME ISSUES WHERE THERE IS NO ROOM FOR COMPROMISE.

A PERSONAL HEALTHCARE DECISION, NOT A PLACE WHERE POLITICIANS BELONG AND SOME OF MY COLLEAGUES ON THE OTHER SIDE OF THE AISLE HAVE SUGGESTED THAT WE ALSO INCLUDE IN THE DOCTOR'S OFFICE NOT JUST POLITICIANS BUT POLICE OFFICER.

>> REPUBLICANS TALK ABOUT PASSING A BILL TO MODIFIED THE LAW BANNING ABORTIONS TO PROVIDE EXCEPTIONS FOR RAPE OR INCEST.

>> AS ONE OF THE 50% OF PEOPLE IN WISCONSIN WHO LOST A CONCRETE RIGHT IN THE LAST YEAR I HAVE HEARD FROM PEOPLE ACROSS THE STATE HOW IMPORTANT IT IS THAT WE KEEP FIGHTING FOR COME PREHENCEIVE ACCESS TO REPRODUCTIVE HEALTHCARE.

EXCEPTIONS ARE NOT COME PREHENCEIVE AND WE KNOW THAT.

>> DEMOCRATS WANT TO KEEP THE CURRENT LAW IN PLACE WHILE THEY WAIT FOR LEGAL CHALLENGES.

THAT LEADS TO THE OTHER PRIORITY, ELECTING A LIBERAL TO THE SUPREME COURT IN APPEAR -- APRIL.

>> WE WANT TO ELECT A JUSTICE WHO WILL PUT THE PEOPLE OF WISCONSIN OVER THEIR PARTY.

>> A LIBERAL MAJORITY ON THE COURT COULD WRITE NEW LEGISLATIVE MAPS IN WISCONSIN GIVING DEMOCRATS A CHANCE TO WIN MORE SEATS AND GET MORE SWAY AT THE CAPITOL.

>> ABORTION RIGHTS, REDISTRICTING, UNION RIGHTS, THE LIST GOES ON AND ON.

>> REPORTING FROM MADISON I'M ZAC SCHULTZ FOR "HERE AND NOW.

"ENTER >> NEXT WEEK WE HEAR FROM REPUBLICAN SENATE MAJORITY LEADER DEVIN LEMAHIEU AND LOOK FOR SAC'S ONE-ON-ONE WITH ROBIN VOS KNOWN AS THE MOST POWERFUL VOICE IN THE LEGISLATURE.

FOR MORE ON THIS AND OTHER ISSUES FACING WISCONSIN, VISIT OUR WEBSITE AT PBS WISCONSIN.ORG AND CLICK ON THE NEWS TAB.

I'M FREDERICA FREYBERG.

HAVE A GOOD WEEKEND.

>> FUNDING FOR "HERE AND NOW" IS PROVIDED BY THE FOCUS FUND FOR JOURNALISM AND FRIENDS OF PBS WISCONSIN.