Brian Dake

U.S. Supreme Court will Consider Major Case on Power of Federal Regulatory Agencies

Nearly 40 years ago, in Chevron v. Natural Resources Defense Council, the Supreme Court ruled that courts should defer to a federal agency’s interpretation of an ambiguous statute as long as that interpretation is reasonable. On Monday, the Supreme Court agreed to reconsider its ruling in Chevron.

The question comes to the court in a case brought by a group of commercial fishing companies. They challenged a rule issued by the National Marine Fisheries Service that requires the fishing industry to pay for the costs of observers who monitor compliance with fishery management plans.

Relying on Chevron, a divided panel of the U.S. Court of Appeals for the District of Columbia Circuit rejected the companies’ challenge to the rule. Judge Judith Rogers explained that although federal fishery law makes clear that the government can require fishing boats to carry monitors, it does not specifically address who must pay for the monitors. Because the NMFS’s interpretation of federal fishery law as authorizing industry-funded monitors was a reasonable one, Rogers concluded, the court should defer to that interpretation.

The fishing companies came to the Supreme Court in November, asking the justices both to weigh in on their challenge to the rule and to overrule Chevron (or, the petition suggested, clarify that when a law does not address “controversial powers expressly but narrowly granted elsewhere in the statute,” there is no ambiguity in the statute, and therefore no deference is required).

Some members of the court’s conservative majority have been critical of the Chevron doctrine in recent years. Justice Clarence Thomas has been among the doctrine’s most vocal critics, arguing in a concurring opinion in 2015 that Chevron deference “wrests from Courts the ultimate interpretative authority ‘to say what the law is,’ and hands it over to” the executive branch. He has been joined by Justice Neil Gorsuch, who in a dissent from the denial of review last fall argued that the court “should acknowledge forthrightly that Chevron did not undo, and could not have undone, the judicial duty to provide an independent judgment of the law’s meaning in the cases that come before the Nation’s courts.”

The case, Loper Bright Enterprises v. Raimondo, is likely to be argued in the fall, with a decision to follow sometime in 2024. Justice Ketanji Brown Jackson recused herself from the case, presumably because she participated in the oral argument in the case while she was a judge on the D.C. Circuit.

 

DWD Celebrates Another Record-Breaking Year in Youth Apprenticeships

The Wisconsin Department of Workforce Development (DWD) today announced record participation in its Youth Apprenticeship (YA) programs, with 8,357 high-school juniors and seniors pursuing paid, on-the-job training in fields, including manufacturing, health, science, agriculture and more. This record number represents 30% more youth apprentices than the 2021-2022 school year.

DWD’s YA program is an earn-while-you-learn model that connects apprentices with high-skill, high-wage employment with employers across the state. In addition to learning the hands-on skills of the occupation from the employer, youth apprentices gain occupation-specific knowledge through an area technical college or private training center in addition to completing their high-school coursework. A key component of apprenticeship is employment and there is no apprenticeship without a respective job opening.

The record-high total of 8,357 youth apprentices in the 2022-2023 school year surpassed the previous record of 6,392 apprentices for the 2021-2022 school year, continuing a year-over-year, record-breaking trend. In addition, YA had a record 5,719 employers, training and giving these students work opportunities in a variety of industries.

YA pathways with the highest participation are: manufacturing, 1,509; health science, 1,393; agriculture, food and natural resources, 1,048; architecture and construction, 1,039; and marketing, 1,015.

Beyond the high participation in the program’s current pathways, YA continues to evolve to meet the needs of both employers and students. The program recently added 14 new pathways and has plans to create pathways in five broad program areas: education and training; business management and administration; government and public administration; human services; and law, public safety, corrections, and security. The new YA occupational pathways will be completed by the fall of 2024.

To learn more about Wisconsin Apprenticeship, visit WisconsinApprenticeship.com.

U.S. GDP Rose at a 1.1% Pace in the First Quarter

Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1% annualized pace in the first quarter, the Commerce Department reported Thursday. The growth rate followed a fourth quarter in which GDP climbed 2.6%, part of a year that saw a 2.1% increase.

The report also showed that the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, increased 4.2%. Stripping out food and energy, core PCE rose 4.9%, compared to the previous increase of 4.4%.

The slowdown in growth came due to a decline in private inventory investment and a deceleration in nonresidential fixed investment, the report said. The inventory slowdown took 2.26 percentage points off the headline number.

Consumer spending as measured by personal consumption expenditures increased 3.7% and exports were up 4.8%. Gross private domestic investment tumbled 12.5%.

“The U.S. economy is likely at an inflection point as consumer spending has softened in recent months,” said Jeffrey Roach, chief economist at LPL Financial. “The backward nature of the GDP report is possibly misleading for markets as we know consumers were still spending in January but since March, have pulled back as consumers are getting more pessimistic about the future.”

 

Wisconsin’s Only Oil Refinery to Reopen

Wisconsin’s only oil refinery is on track to be fully operational in June after a $1.2 billion effort to rebuild the facility five years following an explosion that injured three dozen workers.

The refinery is now owned by Calgary-based Cenovus Energy. Cenovus said Wednesday the refinery is on track to resume full operations by the end of June, Wisconsin Public Radio reported. The cost to rebuild the refinery tripled from initial projections, and it took years longer than expected due to the COVID-19 pandemic.

The refinery typically produces gasoline, diesel and asphalt with a capacity of roughly 50,000 barrels per day. Around 350 employees will now work at the refinery, which previously employed about 200 workers.

Wisconsin’s Labor Force Participation Rate High Among ‘Prime Working Age’ Adults

Wisconsin often has among the highest labor force participation rates in the country for “prime working age” residents, according to a recent UW-Madison report.

The labor force participation rate is typically based on the percentage of workers over age 16 that are either employed or unemployed and actively seeking work, the report shows. But a researcher with the university’s Division of Extension notes this measure can be calculated for “a variety of demographic characteristics.”

For residents between the ages of 25 and 54, Wisconsin is frequently among the top 10 U.S. states for labor force participation on an annual basis, the report found. In 2021, that rate was 88.9 percent for men and 83.1 percent for women in the state — the ninth and fifth highest rates in the country, respectively.

The report also explores county-level prime working age labor force participation. But the author notes margins of error in U.S. Census Bureau data used to calculate these figures at the county level “make geographic comparisons somewhat challenging.” The report aims to avoid this issue by analyzing if a county’s rate has a statistically significant difference from national rates.

“Calculating significant differences (at a 90% confidence level) shows variations in [labor force participation rates] for both men and women within states and across regions,” author Matt Kures wrote.

For prime working age men, 42 counties in the state have labor force participation rates above the national rate of 86.4 percent, while 15 counties have a lower rate and another 15 don’t have a statistically significant difference. The counties with a lower rate include: Bayfield, Burnett, Washburn, Rusk, Chippewa, Forest, Menominee, Jackson, Vernon, Crawford, Juneau, Adams, Waushara, Dodge and Milwaukee.

Meanwhile, 51 counties in the state have participation rates for women that are above the national average, and just two counties have lower rates, the report shows.

Wisconsin Assembly to Vote on Limits for UI Benefits

People in Wisconsin would receive fewer unemployment benefits and face stricter qualification requirements under a package of bills slated for votes in the state Assembly on Tuesday.

The eight Republican-backed measures follow a statewide April election in which more than three-quarters of voters supported a nonbinding ballot question saying they believe able-bodied adults should have to look for work to receive government assistance.

Unemployment recipients in Wisconsin already must perform four work-search activities each week. Under the bills that will be voted on Tuesday, employers would be able to report recipients who decline or don’t show up to an interview. People who have been reported multiple times and don’t have good reasons for declining or missing interviews could have their benefits rescinded.

Another measure would tie the number of weeks someone can receive unemployment benefits to the statewide unemployment rate. With current rates under 3%, recipients would be limited to 14 weeks of benefits. The existing standard of 26 weeks of benefits would only apply if rates rise above 9%, which hasn’t happened since the 2008 financial crisis.

Other proposals in the package would enact stricter identity verification checks for unemployment benefits, prohibit local governments from using taxpayer money to create guaranteed income programs and require the Department of Health Services to review every six months the eligibility of people participating in Medicaid programs reserved for low-income people, family caretakers and pregnant women.

Rural Bridge Collapse Sparks Calls for Statewide Inventory, Safety Assessment

The Wisconsin Towns Association is calling on lawmakers to fund a statewide assessment of small bridges. The ask comes after a century-old creek crossing in northern La Crosse County collapsed under a fertilizer truck April 15.

Mike Koles, executive director of the Wisconsin Towns Association, said federal regulations require an inventory and regular safety assessments of bridges over 20 feet. But there are no requirements for structures under that length.

Koles estimates there are up to 25,000 of them across the state. The Towns Association is asking the state Legislature to include funding for a statewide inventory and safety assessment of these crossing, which Koles said states like Minnesota and South Dakota have already completed.

“That’s going to identify how big of a problem this is, where the problem is,” he said.

Koles said his organization is also asking state lawmakers to make supplemental funding through the local road improvement program a permanent part of the budget. He said local communities rely on these programs to pay for large construction projects. And he said rural communities could use financial help paying for grant writers to prepare their applications.

Accessing Credit has Become Harder, Federal Reserve Bank Beige Book Shows

Businesses across the country said banks have tightened their lending standards since last month’s banking crisis, according to an economic survey from the Federal Reserve released Wednesday.

Overall economic activity held steady in recent weeks, with nine of the central bank’s 12 regional districts reporting no change, or slight growth; and three others reporting modest gains. The report captures the effects of last month’s banking turbulence on businesses and banks themselves.

Consumer spending, manufacturing activity and construction activity were either flat or down slightly this spring, businesses said. Tourism activity was a bright spot in recent weeks, with several firms reporting a notable pick-up.

Conditions in the jobs market improved; fewer businesses reported mass layoffs and more businesses said it has become easier to hire and that employee retention has improved. That coincides with government figures showing that the U.S. labor market has lost some steam recently, though it remains strong. Some firms also said that the pace of price increases has slowed.

Wisconsin Assembly Votes to Outlaw Local Bans on Gas Engines

State and local governments in Wisconsin would not be allowed to ban gas-powered vehicles, snow blowers, lawnmowers and other machines under a pair of bills the Republican-controlled Assembly passed Tuesday along party lines.

The bills’ GOP sponsors hope to outlaw measures similar to a law passed in California last year requiring that all new cars, trucks and SUVs sold in the state run on electricity or hydrogen by 2035. That decision left 17 states with vehicle emissions standards tied to California laws facing tough decisions on whether they would adopt the same ban on gasoline-fueled vehicles.

Gas stations and fossil fuel industry groups such as Kwik Trip and the American Petroleum Institute have thrown their support behind the measures. Meanwhile, environmental advocates and the American Lung Association oppose them.

The measures still need approval from the Senate and from Democratic Gov. Tony Evers, who is likely to veto them. Evers has been at odds with Republicans when pushing to use state money to build out electric vehicle charging stations.

The governor’s spokesperson, Britt Cudaback, did not immediately respond to an email Monday asking whether he would veto the measures. But at an event in Milwaukee on Tuesday, Evers said he didn’t believe a ban on gas engines was necessary for the state to slowly transition to using electric vehicles.

Organized Retail Crime is Growing in Scope and Complexity

Organized retail crime is growing in scope and complexity, according to the National Retail Federation (NRF). It is also becoming more violent.

The NRF’s latest report, published last week, detailed how organized retail crime is a “perpetual and burgeoning problem” that has inflicted billions in financial losses for U.S. retailers and their communities.

For years, the NRF has been issuing reports that quantify what people are stealing and how retailers are responding in terms of their loss prevention activities. For the first time, the trade group also provided a detailed assessment about whom these organizations are, their tactics, motives and links to other types of criminal activities, Christian Beckner, NRF vice president of retail technology and cybersecurity, told FOX Business.

In doing so, the NRF hopes to help retailers and law enforcement “stay ahead of the organized retail crime threat and anticipate changes to organized retail crime group tactics, instead of just responding after incidents occur,” Beckner said.

According to the Homeland Security Investigations and the Association of Certified Anti-Money Laundering Specialists, organized theft groups launder an estimated $69 billion in illicit profits through the U.S. financial system and trade-based money laundering schemes each year.

According to the NRF report, which conducted its latest assessment in partnership with global risk advisory firm K2 Integrity, these organized retail crime groups “primarily favor large national retailers and big-box retailers, and cargo shipments for booster operations.” They are also more likely to target everyday consumer goods rather than luxury products. Based on an analysis of 116 groups, 81% exclusively stole general consumer goods.

These groups have also been planning out their booster operations in advance by studying store layouts, camera and exit locations, understanding the types of anti-theft precautions and knowing the different store policies for stopping suspected thieves, the report said. Boosters are known as the individuals who are paid to commit theft on behalf of these groups.