Month: August 2021

Durable Goods Orders Slip as Supply Chain Disruptions Persist

Posted on August 25, 2021 by

Orders for big-ticket items slipped last month as manufacturers continued to navigate a supply chain crunch that has resulted in higher materials costs.

New orders for manufactured durable goods in July fell 0.1% to a seasonally adjusted $257.2 billion, according to the Census Bureau. Excluding transportation, new orders decreased 0.7%. They fell 1.2% when excluding defense.

Supply chain disruptions that were caused by factories shutting down in an attempt to help slow the spread of COVID-19 resulted in unfilled orders increasing for a sixth straight month, rising 0.3% to $1.225 trillion. Unfilled machinery orders, which have increased 16 straight months, rose by $2.3 billion to $109.2 billion.

 

Fisker, the Electric Carmaker Eyeing Partnering with Foxconn, Wants a Wisconsin Law Changed

Posted on August 17, 2021 by

The cofounder of the electric automaker partnering with Foxconn to possibly build vehicles in Racine County wants a Wisconsin law changed.

In an interview with Forbes published this week, Fisker CEO Henrik Fisker said that a nearly century-old state law could stand in the way of his company and Foxconn deciding to construct vehicles in (and bring jobs to) Mount Pleasant.

The law in question dates back to the 1930s. It requires franchised car dealers to sell vehicles to consumers; carmakers (i.e. Ford, Tesla, General Motors, Honda, BMW, etc.) cannot sell their vehicles directly to consumers, with few exceptions.

“The one sticking point for Fisker — now, this is still Foxconn’s decision — but the one sticking point for me would be that I don’t want to start producing a car in a state where I can’t sell my car direct,” Henrik Fisker told Alan Ohnsman of Forbes. “If they change those (rules) I think they will be in the lead, but right now they’re not.

Defenders of the law, including the Wisconsin Auto & Truck Dealers Association, say the ban on direct sales opens up more job opportunities and protects pre-existing automobile dealers.

WATDA President William Sepic said that the ban on direct sales protects consumers. Car salespeople are able to “be an advocate” between consumer and manufacturer, Sepic argued. By making it easier to take dealers out of the picture, consumers could lose out.

“Think about it like this,” he said in an interview Friday. “If you have three car dealers, they can each set different prices for the exact same car, and the consumer can pick and choose. Likewise, they can make three different offers on buying a used car.”

Wisconsin’s Real Estate Market Grew by 7% in 2020

Posted on August 16, 2021 by

On Friday, the Wisconsin Department of Revenue (DOR) released its annual Equalized Values Report. The report shows Wisconsin’s total statewide equalized property value as of January 1, 2021, was $654 billion, a 7% increase over the prior year; growth occurred in all property classifications. Equalized values are based on data from January 1, 2020 to January 1, 2021.

Report highlights:

• Change in Equalized Value = $41.6 billion, a 7% increase from 2020
o $31.1 billion due to market value increases (5%)
o $10.1 billion due to new construction (2%)

Equalized Values are calculated annually and used to ensure statewide fairness and equity in property tax distribution. The Equalized Value represents an estimate of a taxation district’s total taxable value and provides for the fair apportionment of school district and county levies to each municipality. Changes in Equalized Value do not necessarily translate into a change in property taxes.

Census Bureau Releases Decennial Population Data for the State of Wisconsin

Posted on August 13, 2021 by

Wisconsin’s population rose to 5,893,718, a 3.6% increase from the 2010 census, retaining its position as the 20th most populous state. Its population growth rate ranked 34th among the 50 states. Altogether, the U.S. population rose to 331,449,281, the Census Bureau said, a 7.4% increase that was the second-slowest ever.

In Wisconsin, the census data show areas such as Dane County, Brown County (Green Bay) and Outagamie County (Appleton) gaining the most people, while Milwaukee County and 20 rural counties lost population.

Dane County added 73,431 people over the past decade, a 15% increase, making it the fastest-growing county in the state, according to data released by the U.S. Census Bureau Thursday.

The data show Milwaukee County lost 8,246 residents over the past decade, a decrease of 0.9%, for a 2020 population of 939,489, still the largest county in the state by far by population.

The county that shrank the fastest over the past decade was Richland County, in southwestern Wisconsin, losing 717 residents or 4% of its population. The next two biggest losers were in rural northern Wisconsin: Taylor County, which lost 776 residents and Rusk County, which lost 567 residents, both 3.8% declines.

State legislators will use the census data to ensure that Wisconsin’s political maps reflect how the state’s population has grown and shifted since the 2010 census. With a detailed understanding of where Wisconsin’s population resides in 2020, they can update the boundaries of the state’s eight congressional, 99 Assembly and 33 state Senate districts, and local leaders can redraw municipal and county board districts.

 

State Projects $1.7 Billion Surplus at End of Current Budget Cycle

Posted on August 11, 2021 by

Wisconsin’s current budget cycle is projected to end in two years with about $1.7 billion left over, one of the largest surpluses in recent memory.

The nonpartisan Legislative Fiscal Bureau on Monday estimated the current two-year budget — which Republican lawmakers passed in June and Gov. Tony Evers signed into law — will produce a roughly $1.7 billion surplus in June of 2023, when the budget expires.

Fiscal Bureau director Bob Lang said the figure is one of the highest in recent memory. Having money left over at the end of the budget cycle provides lawmakers with more spending or tax-cutting opportunities in future budget cycles.

Before the latest state budget was signed into law, the Fiscal Bureau estimated Wisconsin would have a general fund balance of more than $5.8 billion as a result of “unprecedented” tax collections, a figure more than $4 billion larger than previous estimates.

The unprecedented surplus left lawmakers with a range of options for the 2021-23 state budget, including a $2 billion income tax cut adopted by the Republican-led Legislature.

Biden Administration Extends Student Loan Pause Until January 31, 2022

Posted on August 9, 2021 by

On Friday, the U.S. Department of Education (Department) announced a final extension of the pause on student loan repayment, interest, and collections until January 31, 2022. The Department believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart. The Department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” said U.S. Secretary of Education Miguel Cardona. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment. It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education.”

The Department will begin notifying borrowers about this final extension in the coming days, and it will release resources and information about how to plan for payment restart as the end of the pause approaches.

Wisconsin Medical Society Urges Health Care Employers to Mandate COVID-19 Vaccine

Posted on August 3, 2021 by

The state’s largest organization representing physicians is urging all health care facilities to require their employees be vaccinated against COVID-19.

Several health care systems in Wisconsin already require vaccinations for their employees, including SSM Health, the Mayo Clinic Health System, Ascension Wisconsin, Children’s Wisconsin and the Medical College of Wisconsin.

Last week, dozens of national health care organizations, including the American Medical Association, issued a similar call for all health care and long-term care providers to mandate vaccination for employees.

“Health care needs to continue to lead the fight against COVID-19,” Letzer said. “The only hope to beat this virus is through a significant increase in vaccinations. Mandates similar to what we already have in place for measles or influenza are needed. It’s time for all health care employers to lead by example, do the right thing and take this necessary next step.”