Month: July 2022

Inflation Spikes more than Expected, Hits New 40-Year High

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 percent in June on a seasonally adjusted basis after rising 1.0 percent in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment.

The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors. The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index.

The index for all items less food and energy rose 0.7 percent in June, after increasing 0.6 percent in the  preceding two months. While almost all major component indexes increased over the month, the largest contributors were the indexes for shelter, used cars and trucks, medical care, motor vehicle insurance, and new vehicles. The indexes for motor vehicle repair, apparel, household furnishings and operations, and recreation also increased in June. Among the few major component indexes to decline in June were lodging away from home and airline fares.

The all items index increased 9.1 percent for the 12 months ending June, the largest 12-month increase since the period ending November 1981. The all items less food and energy index rose 5.9 percent over the last 12 months. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980. The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981.

Dawn Crim Resigns as Wisconsin Department of Safety and Professional Services Secretary

Last Friday, Department of Safety and Professional Services Secretary Dawn Crim announced her departure from the agency that handles professional licensing. Crim in a joint press release with Gov. Tony Evers did not offer any reasons for her departure.

The State Senate confirmed Crim 29-2 in September last year.

Evers also announced he is appointing DSPS Assistant Deputy Secretary Dan Hereth to replace Crim. Hereth served as deputy district director for U.S. Rep. Gwen Moore, D-Milwaukee, starting in 2007 before joining DSPS in 2019.

State Supreme Court Rules Counties Can Issue Public Health Orders and Enforce Them without Permission from Local Elected Officials

Local health officials have the authority to issue public health orders and issue fines to enforce them without permission from local elected officials, the Wisconsin Supreme Court ruled on Friday.

The ruling stemmed from a case that was brought by two families of young athletes and a Dane County dance studio that was accused of being overcapacity in December 2020. At the time, there was a prohibition on indoor gatherings of any size following a fall surge in COVID-19 cases that year. They filed a lawsuit against Dane County, the local health department and Dane County’s health director Janel Heinrich that challenged the health order.

Dane County ruled against the plaintiffs, who petitioned to bypass the court of appeals. The Wisconsin Supreme Court granted their request and agreed to hear the case.

“Heinrich responded to the appearance of the communicable COVID-19 disease in her territory by issuing a series of orders from May 2020 until March 2022 that implemented measures to prevent, suppress, and control the disease’s spread,” Justice Jill Karofsky wrote for the majority. “She did so pursuant to her authority under state law.”

Karofsky went on to say that the law allows local health officers to “promptly take all measures necessary” to respond to communicable diseases like COVID-19.

 

State Supreme Court Rules Unmanned Absentee Drop Boxes Illegal

Earlier today, a split Wisconsin Supreme Court ruled unmanned drop boxes are illegal and voters must deliver their absentee ballots by mail or in-person to their clerks.

The 4-3 ruling found the Wisconsin Elections Commission gave inappropriate advice to local clerks that they could use the drop boxes as the COVID-19 pandemic swept across Wisconsin and the nation.

“WEC’s staff may have been trying to make voting as easy as possible during the pandemic, but whatever their motivations, WEC must follow Wisconsin statutes. Good intentions never override the law,” Justice Rebecca Bradley wrote for the majority.

Bradley was joined in the majority by fellow conservatives Brian Hagedorn, Pat Roggensack and Annette Ziegler.

Writing for the minority, Justice Ann Walsh Bradley wrote drop boxes are a “simple and perfectly legal solution to making voting easier, particularly in the midst of a global pandemic.”

Wisconsin Supreme Court Ruling Will Make it Easier to Challenge DOR Guidance in Court

A circuit court should’ve weighed in on whether the Department of Revenue’s (DOR) guidance on a new tax exemption for personal property constituted an unpublished rule rather than deferring to the Tax Appeals Commission first, the state Supreme Court has ruled.

The ruling will make it easier to challenge DOR guidance and other advice in circuit court rather than going to the Tax Appeals Commission, an independent agency the Legislature created to hear disputes between taxpayers and the departments of Revenue and Transportation.

Wisconsin Manufacturers & Commerce (WMC) didn’t agree with a letter DOR sent the business group over its interpretation of the personal property tax exemption and filed the suit, which was dismissed by an Ozaukee County judge

Writing for the majority, Justice Brian Hagedorn found the question of whether the letter constitutes an unpromulgated rule doesn’t draw upon the Tax Appeals Commission’s expertise in tax matters. Rather, the question “goes to the authority and process by which an agency must adopt and administer the law.”

That is best answered by a court, not an agency that “has no unique expertise over whether a letter fits the definition of a rule.”

The dispute began after WMC asked Revenue how a new exemption would be applied. The business group argued that “machinery, patterns and tools that are not used in manufacturing” are exempt under the change even if that property is “located on manufacturing property.”

Revenue disagreed, and WMC filed the suit. It argued the DOR letter amounted to an unpromulgaed rule and was invalid.

After an Ozaukee County Circuit Court dismissed the suit, an appeals court upheld that ruling.

Though the state Supreme Court was unanimous in believing the circuit court should’ve heard the case, only liberals Ann Walsh Bradley, Rebecca Dallet and Jill Karofsky fully signed onto Hagedorn’s opinion. Meanwhile, Justice Pat Roggensack wrote her own concurring opinion that was joined by fellow conservative Rebecca Bradley.

Wisconsin Supreme Court Rules Former Head of Wisconsin Natural Resources Board Can Stay on the Board

Dr. Fred Prehn, the former head of the Wisconsin Natural Resources Board, can continue to serve on the policy-making board now that the Wisconsin Supreme Court has ruled it’s legal for him to remain.

Wisconsin Attorney General Josh Kaul sued to remove Prehn from the NRB in August. The board’s former chair has refused to step down from the policy-making body after his six-year term expired in May last year. Former Republican Gov. Scott Walker appointed Prehn in 2015.

“(T)he expiration of Prehn’s term on the DNR Board does not create a vacancy. Prehn lawfully retains his position on the DNR Board as a holdover,” wrote Chief Justice Annette Ziegler for the majority. “Therefore, the Governor cannot make a provisional appointment to replace Prehn.”

The court found a vacancy is only created when a person dies, resigns, or is removed for cause.

Prehn’s decision to stay on the board has blocked Democratic Gov. Tony Evers’ appointee Sandy Nass from taking a seat. Evers appointed Nass and Sharon Adams to the board in April of last year to fill vacancies left by members whose terms expired, including Prehn.

Prehn could remain on the board for years if Republican lawmakers refuse to confirm Evers’ appointee. The state Senate adjourned its latest session earlier this year without confirming Nass.