Under current law, the Department of Administration administers a program
that provides low-income energy assistance to eligible households, including
households with incomes of less than 60 percent of the statewide median household
income and households composed entirely of individuals receiving Aid to Families
with Dependent Children or Supplemental Security Income. This bill makes
ineligible for low-income energy assistance a household with assets that exceed
$2,000 in cash equity value or a vehicle having an equity value of $10,000 or greater.

Under current law, the Wisconsin Housing and Economic Development
Authority (WHEDA) administers several programs that provide assistance to
persons and families of low and moderate income to obtain housing. Eligibility for
the programs is established in both the Wisconsin statutes and under federal law,
including the Housing Choice Voucher Program administered by the Federal
Department of Housing and Urban Development (HUD). Funding for these
programs is provided from a number of sources, including bonds issued by WHEDA
under its statutory authority and from the federal government.

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This bill requires WHEDA to impose the following limits on eligibility for
families and persons of low and moderate income seeking housing assistance directly
or indirectly through WHEDA:

1. No person may receive housing assistance from HUD through WHEDA
unless the person is disabled or aged 62 or older. The bill defines "disabled" to mean
blind as established under federal law or disabled as established under federal law.

2. Persons or families of low and moderate income who receive housing or
housing assistance directly or indirectly from WHEDA shall be subject to the
following limitations:

a. A person or family of low or moderate income must be restricted to housing
in which the square footage is less than 50 percent of the average square footage for
a rental unit of average rental value in the county in which the person or family
resides. In order to satisfy this requirement, WHEDA may require that more than
two unrelated persons or families of low or moderate income be housed in one
housing unit.

b. With two exceptions, persons or families of low and moderate income with
assets that exceed $2,000 in cash equity value or a vehicle having an equity value of
$10,000 or greater may not receive housing or housing assistance from WHEDA.
This prohibition does not apply to a person who is disabled or aged 62 or older.

c. No adult may spend the night in the home of any person or family of low and
moderate income who receives housing or housing assistance directly or indirectly
from WHEDA if the income of that adult was not considered in determining the
eligibility of the persons and families to receive housing or housing assistance. The
bill defines "adult" as a person who is 18 years of age or older, except that for purposes
of investigating or prosecuting a person who is alleged to have violated any state or
federal criminal law or any civil law or municipal ordinance, "adult" means a person
who has attained 17 years of age. Any person who violates this prohibition is guilty
of a Class A misdemeanor.

If WHEDA determines that it may not implement the limitations and
prohibitions established under the bill without a waiver of federal law from HUD and
that a waiver of federal law is available, WHEDA must apply for and obtain a waiver
from HUD before it may implement the limitations and prohibitions.

Under current law, the Department of Commerce (Commerce) may make
grants or loans, directly or through agents designated by the department, to persons
or families of low or moderate income to defray housing costs, including utility costs,
and may make grants to community-based organizations, organizations operated
for profit, or housing authorities to improve the ability of these entities to provide
housing opportunities for persons or families of low or moderate income.

This bill requires Commerce to impose limits on eligibility and housing for
families and persons of low and moderate income seeking housing assistance directly
or indirectly through Commerce. Under the requirement, persons or families of low
and moderate income who receive housing or assistance with housing costs,
assistance with utility-related costs, grants, or loans from any project or program

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administered by Commerce as described above must be subject to the following
limitations:

1. A person or family of low or moderate income must be restricted to housing
in which the square footage is less than 50 percent of the average square footage for
a rental unit of average rental value in the county in which the person or family
resides. In order to satisfy this requirement, Commerce may require more than two
unrelated persons or families of low or moderate income in one housing unit.

2. With two exceptions, persons or families of low and moderate income with
assets that exceed $2,000 in cash equity value or a vehicle having an equity value of
$10,000 or greater may not receive housing or assistance with housing costs or
utility-related costs, from Commerce. This prohibition does not apply to a person
who is disabled or aged 62 or older.

3. No adult may spend the night in the home of any person or family of low or
moderate income who receives housing or assistance with housing costs or
utility-related costs or who benefits from a housing assistance grant or loan made
by Commerce if the income of that adult was not considered in determining the
eligibility of the person or family to receive housing, assistance, or benefits. Any
person who violates this prohibition is guilty of a Class A misdemeanor.

If Commerce determines that it may not implement the limitations and
prohibitions established under the bill without a waiver of federal law from HUD and
that a waiver of federal law is available, Commerce must apply for and obtain a
waiver from HUD before it may implement the limitations and prohibitions.

Under current law, the Higher Educational Aids Board (HEAB) awards certain
grants based on financial need. Those grants include Wisconsin higher education
grants for students enrolled in public institutions of higher education or tribal
colleges in this state, tuition grants for students enrolled in private institutions of
higher education in this state, and minority undergraduate grants for minority
students enrolled in private institutions of higher education or technical colleges in
this state.

Currently, those grants are awarded based on a formula that accounts for
expected parental and student contributions and that is consistent with nationally
approved needs analysis methodology. Under current federal law setting forth that
needs analysis methodology, parental income and assets for a dependent student
whose parents are divorced or separated is determined by including only the income
and assets of the parent with whom the student resided for the greater portion of the
12-month period preceding the date of the application or, if that criterion does not
apply, only the income and assets of the parent who provided the greater support
during that 12-month period.

This bill requires HEAB, in determining the expected parental contribution for
a student under 22 years of age who is a dependent of his or her parents, to include
in the parental income and assets that are available for that contribution the income
and assets of both of the student's parents. The bill also prohibits the Board of
Regents of the University of Wisconsin System from awarding a scholarship that is
based on financial need to a student under 22 years of age who is a dependent of his

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or her parents unless the calculation of the student's financial need includes
consideration of the income and assets of both of the student's parents.

Under current law, any city, village, town, or county may create a housing
authority, which may acquire, lease, and operate housing projects for persons of low
income. A housing authority may accept grants from the federal government for any
housing project that the authority undertakes.

This bill requires a local housing authority to impose limits on eligibility for
persons of low income that are similar to the limits on eligibility that WHEDA and
the Department of Commerce are required to impose under the bill.

Under federal law, the earned income tax credit (EITC) is a refundable tax
credit for low-income workers. If the amount of the claim exceeds the worker's tax
liability, the claimant receives a check for the excess amount from the Internal
Revenue Service. The amount of the credit for which a claimant is eligible is based,
in part, on whether the claimant has no qualifying children, one qualifying child, or
more than one qualifying child.

Under current law, the refundable Wisconsin EITC may be claimed in an
amount equal to a certain percentage of the federal basic EITC. To be eligible for the
Wisconsin EITC, an individual must have one or more qualifying children. The
Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one
qualifying child, 14 percent of the federal credit if the claimant has two qualifying
children, and 43 percent of the federal credit if the claimant has three or more
qualifying children.

Under this bill, no new claims under the Wisconsin EITC may be filed for a
taxable year that begins after December 31, 2010.

Under current law, an individual income tax personal exemption exists in the
amount of $700 for each taxpayer who is required to file an income tax return and
$700 for the taxpayer's spouse, except if the spouse is filing separately or as a head
of household. A taxpayer may also claim a $700 exemption for each dependent for
whom he or she is entitled to claim an exemption under the Internal Revenue Code.
In general, an additional exemption of $250 may be claimed by a taxpayer, and
spouse, who has reached the age of 65 before the close of the taxable year to which
his or her tax return relates.

This bill increase the personal exemption for dependents from $700 to $2,200.