Month: September 2021

The Wisconsin Department of Workforce Development moved forward Wednesday with plans to modernize the state’s unemployment insurance system as it emerges from problems brought to light by the COVID-19 pandemic.

Madison-based software development company Flexion will help bring the department’s decades-old computer systems and technology up to date as part of a $16.5 million contract.

DWD is working to release updates to the unemployment system as they become ready, said Stacia Jankowski of the department’s Office of Integrity and Accountability.

“Our modernization strategy reflects an iterative approach to … customer service improvements as soon as possible while claims processing continues uninterrupted,” said Jankowski.

Jankowski said the overall cost of those modernization efforts was projected to be around $80 million. According to the department press release, federal funds from the American Rescue Plan Act and the CARES Act are paying for those upgrades.

The changes would bring more timeliness and automation into DWD’s operations, such as in the addition of chat bots and virtual agents, said Neeraj Kulkarni, the department’s chief information officer and IT bureau director.

“DWD will be able to respond quickly to changing UI needs through greater flexibility in hiring and training resources to assist in times of need because using the system will be familiar and intuitive,” said Kulkarni.

On Thursday, the Public Service Commission of Wisconsin (PSC or Commission) met to discuss the eligibility, overall priorities, and the timeliness of the American Rescue Plan Act (ARPA) Broadband Access Grant applications. In July, the PSC received 240 applications requesting more than $420 million for projects that will expand high-speed broadband internet to unserved and underserved locations in the state. The Commission is expected to make award decisions for the $100 million by the end of October 2021.

“We know all too well that the lack of broadband in parts of our state is leaving many people behind,” said PSC Chairperson Rebecca Cameron Valcq. “This funding will get people connected and help Wisconsin bounce back stronger. I want to thank Governor Evers for making these ARPA dollars available to get Wisconsinites access to broadband.”

Internet service providers, telecommunications utilities, cooperatives, local governments, and for-profit and non-profit organizations were eligible to apply for grants from June 1, 2021, to July 27, 2021. The Commission will approve projects that will be completed by December 31, 2024.

In addition to the $100 million in ARPA funding, the 2021-2023 Biennial State Budget, approved by Governor Evers in July, provides $129 million in state grant funding over the next two years for the Broadband Expansion Grant Program. Details about that funding will be announced in the near future.

Democratic Gov. Tony Evers offered a plan Wednesday to repeal a tax on businesses even though he vetoed legislation to do just that less than two months ago.

Republicans who control the Legislature called the move hypocritical. Evers said he was offering a better plan to end the state’s personal property tax than the one he vetoed, which he has said was drafted in a “haphazard” fashion.

“This legislation will continue our efforts to support businesses and families as they bounce back from the pandemic while ensuring our local governments have the aid they need to remain whole,” Evers said in a statement.

Republican Sen. Duey Stroebel of Saukville, a longtime backer of the effort to end the personal property tax, said the way Evers rolled out his plan “has all the hallmarks of political cover and not serious legislating.”

Republicans who control the Legislature this summer approved a bill to end the personal property tax alongside the state budget. The budget included a provision to provide local governments with state payments to cover revenue losses that would be caused by ending the tax.

Evers vetoed the bill to end the personal property tax because he said Republicans wrote it in a way that could have resulted in an additional tax break for utilities.

He said at the time he backed ending the personal property tax and approved the budget provision that set aside funds for local governments. He now wants to tap into that account for his plan to end the personal property tax.

In a news release, Stroebel accused Evers of “political posturing” and said his plan would treat outdoor advertisers and the makers of manufactured homes unfairly.

Evers said the new legislation was better than the bill he vetoed because it would ensure local governments would receive inflationary increases in state aid to cover their revenue losses.

Consumer spending unexpectedly accelerated in August as back-to-school shopping bolstered sales. Retail sales, a measure of spending at restaurants, stores and online, last month rose 0.7% to $618.7 billion, according to the Commerce Department.

Clothing and clothing accessories sales rose 3.3% month over month and were 38.3% above year-ago levels. Gasoline sales jumped 1.6% compared to July.

Retail sales excluding autos jumped 1.8% month over month compared with the 0.1% decline that was anticipated. Auto sales declined 3.6% last month.

Nonstore spending increased 5.3% and food and beverage store sales rose 1.8%, “perhaps reflecting Delta-driven fears pushing consumers back to shopping from and eating at home,” said Michael Pearce, senior U.S. economist at Capital Economics.

A Republican-authored proposal would let Wisconsinites quit their job and still draw unemployment benefits if their employer requires the COVID-19 vaccine or proof of vaccination.

Wisconsin is an employment-at-will state, which means if someone is fired or quits their job, they are ineligible for unemployment benefits, at least for a while. That worries State Sen. Duey Stroebel (R-Saukville), who said getting vaccinated should be left up to the individual, not government bureaucrats or employers.

Stroebel’s bill would carve out an exception allowing someone who gets fired or voluntarily quits because their employer requires the COVID-19 vaccine to collect benefits.

This proposal has been introduced and referred to standing committees in both chambers, so the next step is scheduling a public hearing.

However, if the bill does end up on the governor’s desk, it seems to be all but dead on arrival. Last month, a spokesperson for the governor tweeted that Evers would veto such a bill.

 Attorney General Josh Kaul is advising Wisconsinites to be aware of ever-evolving ransomware threats. To date, the FBI has received 41 ransomware reports in Wisconsin this year, compared to 30 reports total in 2020.

“As technological threats continue to evolve and become more sophisticated, DOJ’s Cyber Unit remains committed to investigating cybercrimes throughout Wisconsin,” said Attorney General Kaul. “All of us can help combat the threat of ransomware by taking a few precautions: not clicking on links or attachments from unverified sources, using unique, complex passwords, and installing computer updates regularly.”

Ransomware is a type of malicious software cyber actors use to deny access to systems or data. The malicious cyber actor holds systems or data hostage until the ransom is paid. After the initial infection, the ransomware attempts to spread to shared storage drives and other accessible systems. If the demands are not met, the system or encrypted data remains unavailable.

A person may unknowingly download ransomware onto a computer by executing one of the following actions embedded with malware: opening an email attachment, clicking an advertisement, following a link, or visiting a website. Cyber actors continue to evolve their ransomware tactics over time to extort organizations and citizens. Awareness of these tactics is important to avoid unnecessary exposure.

Cyber-attacks may be prevented by following the Department of Homeland Security – Cybersecurity and Infrastructure Security Agency (CISA) best practices for managing risks posed by ransomware: https://www.cisa.gov/stopransomware. To learn more, visit the CISA Ransomware Guide at, https://www.cisa.gov/sites/default/files/publications/CISA_MS-ISAC_Ransomware%20Guide_S508C.pdf

Victims of ransomware attacks are encouraged to resist any urge to fulfill a ransom request. Compliance in response to a ransom does not guarantee the captured data will be returned. Compliance also encourages perpetrators to target more victims and offers an incentive for other cyber actors to get involved in this type of illegal activity.

If you believe you are a victim of a ransomware attack:

• Contact Wisconsin DOJ’s Cyber Unit https://wifusion.widoj.gov/
• Contact your local Federal Bureau of Investigation Field Office (FBI) https://www.ic3.gov/

According to the memo from the Legislative Fiscal Bureau, the state brought in about $19.6 billion in tax revenue in the 2020-2021 fiscal year, which is roughly 12 percent higher than the previous year and $319 million more than the most recent estimate predicted.

The collections leave the state in the strongest fiscal shape it has been in during any budget cycle in recent memory. It is a sharp departure from expectations many had of declining collections and a dire budget picture during the COVID-19 pandemic.

Under state law, if tax collections exceed projections, half of the surplus amount must be deposited into the state’s so-called “rainy day fund.” Because of that law, the memo projects that about $967 million will be deposited into the fund.

According to the budget office, the rainy day fund has a current balance of about $762 million. The deposit will bring that total to about $1.7 billion.

The increased revenue figures come as the state continues to receive billions in federal coronavirus relief money. Evers has about $2.5 billion from the latest round of aid to direct around the state over the next few years.

The figures released Thursday are based on preliminary data released by the state Department of Revenue. Finalized data will be made public in October.