Brian Dake

No USMCA Deal Yet as Window Narrows for 2019 Vote

House Speaker Nancy Pelosi said Thursday that she doubts Congress has enough time left to pass the USMCA this year, but Democrats and the Trump administration will continue talks next week to work out a compromise on remaining issues.

U.S. Trade Representative Robert Lighthizer met with Pelosi and House Ways and Means Chairman Richard Neal (D-Mass.) midday to discuss the last sticking points of the deal. Democrats want President Donald Trump’s trade chief to deliver on stronger enforcement mechanisms in the USMCA before a House vote is held. But lawmakers emerged without any announcement.

The House has only eight official session days left in the 2019 calendar year, although lawmakers are expected to stay on an extra week in December to resolve budget issues and avert a government shutdown.

Despite the short time window, Neal is still hopeful that a deal could be struck soon that would allow Congress to pass the pact this year. He said he would talk with Lighthizer again before Thanksgiving, and even joked he would be spending the holiday with the trade chief.

“We’re going to stay right at this through the next week, and we’re going to have a couple counterproposals,” Neal said. “With all seriousness, we do think we’re down to two-and-a-half, maybe three issues.”

Bill to Compel State to Weigh Pros, Cons of Proposed Occupational Licenses

A recently introduced bill in the Legislature would prevent lawmakers from adopting new occupational licenses without state officials first having weighed the proposed credentials’ likely costs and benefits.

The proposal, introduced Friday as Assembly Bill 605 and Senate Bill 541, would require the Wisconsin Department of Safety and Professional Services (DSPS) to evaluate new occupational licenses before lawmakers vote on them.

Specifically, the DSPS would have to consider both the “financial burden” that any proposed rules might impose on people and businesses and the ways in which other states regulate whatever job is up for licensing. After looking at various types of regulation, state officials would then have to pick whichever is “least restrictive,” according to the bill.

Rep. Rob Hutton, a Republican from Brookfield and an author of the latest licensing proposal, said his main goal is to require state officials to consider whether new credentials are actually needed before adopting them.

“Many times we vote to create a new occupational license without understanding the full impact that license may have on the workforce and public safety,” Hutton said in a statement. “This legislation will ensure that we have a better picture of the effect an occupational license will have so we can make more informed policy decisions.”

A DSPS report from December examining the state’s occupational-license system recommended eliminating or consolidating 28 of the 280 professional licenses the state regulates. Most of the credentials under review were found by the DSPS to be unnecessary. Among them were credentials for dance and music therapists or cigarette salespeople, none of which has to do the construction industry. The agency, however, recommended consolidating the state’s seven-tier license system for blasting and suggested eliminating a credential for engineering-systems designers.

 

Wisconsin Delays Medicaid Work Requirement

Wisconsin had planned to start Nov. 1 a work requirement and other stipulations for childless adults on Medicaid, but the state has delayed implementation until early next year.

Former Republican Gov. Scott Walker proposed limiting Medicaid coverage to four years for poor adults without dependent children unless they work, train for a job or participate in certain other activities. The plan, approved by the federal government Oct. 31, 2018, was set to start Nov. 1.

In a Nov. 1 report to the Legislature’s Joint Finance Committee, Department of Health Services Secretary Andrea Palm said the department is working with the federal Centers for Medicare and Medicaid Services, or CMS, to finalize details of the work requirement.

In September, Palm asked the finance committee to delay implementation of the work requirement until Jan. 30. The committee granted the extension through a passive approval in October.

Three other aspects of Walker’s plan are set to begin Feb. 1, Palm said. They include charging monthly premiums of up to $8, charging emergency room visit co-payments of $8 for non-emergencies, and allowing members to reduce their premiums through “healthy behaviors,” such as not smoking or maintaining a healthy weight.

Nine states have had Medicaid work requirements approved, but in three of the states — Arkansas, Kentucky and New Hampshire — the programs have been set aside by the courts, according to the Kaiser Family Foundation. Only one other state, Indiana, has implemented the program. Wisconsin, Arizona, Michigan, Ohio and Utah have not.

Wisconsin at Risk of Losing $217M in Federal Transportation Money

Wisconsin could be at risk of losing $217 million in budget authority for transportation next year under a provision passed in a 2015 federal highway funding bill.

According to data released by the Federal Highway Administration in early November, Wisconsin is faced with the loss of $217 million in contract authority under a rescission that’s scheduled to take effect on July 1. Section 1438 of the 2015 Fixing America’s Surface Transportation (FAST) Act included a mandated rescission of $7.6 billion for all states.

A Wisconsin Department of Transportation spokeswoman said the agency is still trying to determine the effect the rescission will have on next year’s transportation budget. The provision will affect contract authority, not actual “spendable funding,” the spokeswoman noted.

“The department is working with (the Federal Highway Administration) to determine the impacts, which we believe will be less than reported,” according to WisDOT. “We also have been in working with our congressional delegation in an effort to repeal this legislation.”

Debby Jackson, executive director of the Wisconsin Transportation Development Association, said the state’s risk of losing contract authority comes after a years-long fight over transportation spending in Wisconsin and could cause significant troubles if it takes effect.

“A lot of people worked hard during the last state budget to get more money into the transportation fund to slow the decline of our transportation infrastructure,” she said. “If this rescission of federal contract authority were to happen, it would be a step in the wrong direction.”

New York Times Accuses FedEx of not Paying Taxes

The New York Times accused FedEx on Sunday of essentially having lobbied President Donald Trump to sign tax cuts into law with the promise of  businesses using the saved money to reinvest in and further grow their  companies, and then failing to invest the billions of dollars that it reportedly saved as a result of the tax cuts.

“In the 2017 fiscal year, FedEx owed more than $1.5 billion in taxes. The next year, it owed nothing. What changed was the Trump administration’s tax cut – for which the company had lobbied hard,” The New York Times reported on Sunday. “

Late on Sunday, FedEx CEO Frederick Smith responded to The New York Times’ story by calling it factually incorrect, claiming that The New York Times is the company that does not pay federal income taxes, and challenging the publisher of The New York Times to a debate on tax policy.

“The New York Times published a distorted and factually incorrect story on the front page of the Sunday, November 17 edition concerning FedEx and our billions of dollars of tax payments and billions of dollars of investments in the U.S. economy,” Smith wrote.

“Pertinent to this outrageous distortion of the truth is the fact that unlike FedEx, the New York Times paid zero federal income tax in 2017 on earnings of $111 million, and only $30 million in 2018 – 18% of their pretax book income.  Also in 2018 the New York Times cut their capital investments nearly in half to $57 million, which equates to a rounding error when compared to the $6 billion of capital that FedEx invested in the U.S. economy during that same year.”

Property Taxes are Single Largest Tax for Wisconsin Residents

Wisconsinites are spending less of their money on taxes overall, but more of their tax bill are property taxes imposed by local municipalities and schools.

According to a new report by the Wisconsin Policy Forum, “property tax levies by municipalities, schools, counties, and other local governments represent the single largest tax in the state” at 3.5 percent of personal income in 2017.

“Property taxes in Wisconsin are seen as too high because that’s the only option local governments have,” said Jerry Deschane, the executive director of the League of Wisconsin Municipalities. “This isn’t a spending issue, this is a how we raise revenue issue.”

The non-profit organization represents 593 of the 602 municipalities across the state, including Milwakuee and Madison. Among other things, it provides resources and lobbying efforts for its members.

Deschane said that are those property taxes remain high, they become a strain on people who don’t have the discretionary funding to re-allocate to their increased property tax bill.

“With a property tax, you can’t defer the third bedroom in your house, you have to pay the whole property tax bill,” he said. “Property taxes are very inflexible compared to people’s economic circumstances.”

Trade Talks Hung up Over China’s Commitment to U.S. Ag Purchases

Trade talks between the U.S. and China have hit a snag over farm purchases, as officials seek to lock down the limited trade deal President Trump outlined last month.

Trump has said that China has agreed to buy up to $50 billion of soybeans, pork and other agricultural products from the U.S. annually. But China is leery of putting a numerical commitment in the text of an agreement, according to people familiar with the matter.

Beijing wants to avoid cutting a deal that looks more favorable to the U.S. than to China, some of the people said, and also wants to have flexibility within the agreement should trade tensions escalate again. “We can always stop the purchases if things get worse again,” said one Chinese official.

The dispute over farm purchases is one of several issues that have delayed completion of the limited trade accord announced by Trump and Chinese Vice Premier Liu He on Oct. 11. Both sides are also at odds over whether — and by how much — the U.S. would agree to lift tariffs on Chinese imports, Beijing’s core demand that is linked to its offers on other issues.

Chinese officials also have resisted U.S. demands for a strong enforcement mechanism for the deal and curbs on the forced transfer of technology for companies seeking to do business in China — all of top importance to the international business community — according to people familiar with the talks.

UW System, WEDC Unveil Online ‘Talent Generator’ to Boost Internships for UW Students

The University of Wisconsin System and Wisconsin Economic Development Corp. (WEDC) have  unveiled a new online tool to help small and medium-sized businesses recruit interns from UW campuses. The goal is to improve the student experience and keep skilled workers from leaving the state.

The “Talent Generator” is an online portal for businesses interested in starting internships for the first time. It offers business leaders tips and best practices for recruiting potential interns. It also offers links to career services staff at nearby UW System campuses.

During a press conference Tuesday in Eau Claire, UW System President Ray Cross said while UW schools already have strong internship opportunities, not all businesses are familiar with the process or have the means to find candidates.

“What we discovered was that businesses said to us, particularly small and medium businesses, we really don’t have an HR department,” said Cross. “And those are some excellent internship opportunities in startups or small businesses.”

Cross said about half of the students who receive internships at UW are offered full time jobs by the companies that recruit them. He said it’s one way to ensure that students graduating at UW institutions build lasting connections to Wisconsin.

 

Wisconsin Civil Justice Council Issues 2019 Guide to the Wisconsin Supreme Court and Judicial Evaluation

Wisconsin Civil Justice Council (WCJC) today released its 2019 Guide to the Wisconsin Supreme Court and Judicial Evaluation, which reviews the most important cases decided by the Supreme Court of Wisconsin affecting the business community. The 2019 Judicial Evaluation covers the 2018-19 Supreme Court term.

The Judicial Evaluation scores the justices based on the percentage of the reviewed cases in which their position aligned with the WCJC position. Based on the comprehensive review of decisions affecting the business community, Chief Justice Patience Roggensack and Justice Annette Ziegler scored the highest at 80 percent. Justice Rebecca Bradley scored 79 percent, and Justice Daniel Kelly came in at 76 percent. New to the court this term, Justice Rebecca
Dallet scored 59 percent. Justice Walsh Bradley scored 30 percent. In her last term before retiring from the court this year, Justice Shirley Abrahamson scored 28 percent.

The 2019 Judicial Evaluation provides a discussion of the facts and the court’s holding in each of the decisions, including the dissenting opinion(s). The guide then lists how each justice decided the case, along with the WCJC position on the court’s decision.

This is the fourth judicial evaluation issued by WCJC since 2011. For more information about WCJC, please visit http://www.wisciviljusticecouncil.org/.

 

State of Wisconsin, UW-Madison to Raise Hourly Minimum Wage for Employees to $15

The State of Wisconsin, including UW-Madison, intends to increase the minimum wage for its hourly employees to $15 an hour, according to statements issued Friday by the university and Gov. Tony Evers.

For university employees, the increase from the current minimum wage of $13.27 per hour, which aligns with the city of Madison’s 2019 living wage, will go into effect in spring 2020. The wage increase stands to benefit university workers mostly in custodial, animal care and food-service positions. It will not affect temporary or student employees, according to the university.

With the state’s proposed compensation plan for 2019-2021, released Friday, Governor Evers is pushing to provide a 2% increase in wages for tens of thousands of state employees in January, and another 2% raise a year later.

Under the plan, all permanent state employees would earn at least $15 an hour by Jan. 3, 2021, with some state workers receiving the increase starting in June.  Funding for those raises was included in the 2019-21 state budget, but the specific details still have to be hashed out by the Evers Administration and the Legislature.