Brian Dake

Wisconsin Ranks 11th on Best States List for Second Year in a Row

Wisconsin is the 11th best state in the country, according to rankings from U.S. News.

The study used eight qualifications to determine their standing: Health care, education, economy, infrastructure, opportunity, fiscal stability, crime and corrections and natural environment.

The Dairy State ranked in the top 10 for opportunity and natural environment.

The state’s lowest categories were crime and corrections and infrastructure. In both categories the state was ranked 30th.

“More weight was accorded to some state measures than others, based on a survey of what matters most to people. Health care and education were weighted most heavily,” the news release said about the study.

“Then came state economies, infrastructure, and the opportunity states offer their citizens. Fiscal stability followed closely in weighting, followed by measures of crime & corrections and a state’s natural environment.”

US Targets $300B of Chinese Goods for New Tariff Hikes

U.S. officials listed $300 billion more of Chinese goods for possible tariff hikes while Beijing vowed Tuesday to “fight to the finish” in an escalating trade battle that is fueling fears about damage to global economic growth.

The U.S. Trade Representative’s Office issued its target list after Beijing announced tariff hikes Monday on $60 billion of American goods in their spiraling dispute over Chinese technology ambitions and other irritants. Chinese authorities were reacting to President Donald Trump’s surprise decision last week to impose punitive duties on $200 billion of imports from China.

The latest U.S. list of 3,805 product categories is a step toward carrying out Trump’s May 5 threat to extend punitive 25% duties to all Chinese imports, the USTR said. It said a June 17 hearing would be held before Washington decides how to proceed.

Trump started raising tariffs last July over complaints China steals or pressures foreign companies to hand over technology and unfairly subsidizes businesses Beijing is trying to build into global leaders in robotics and other fields.

A stumbling block has been U.S. insistence on an enforcement mechanism with penalties to ensure Beijing carries out its commitments.

Odds of a settlement “remain high,” said Mark Zandi of Moody’s Analytics in a report. “But suddenly a number of other scenarios seem possible, even one in which the U.S., China and the global economy suffer a recession.”

Dairy Task Force 2.0 Trying to Match Impact of Late ’80s Effort

Supporters say the proposed Dairy Innovation Hub under consideration by the Wisconsin Legislature, one of 49 recommendations approved by Dairy Task Force 2.0, could match or go beyond the significance of the signature recommendation made by the first dairy task force in the late 1980s.

That task force told cheese producers to focus more on making specialty cheeses. At that time, the dairy industry was in the throes of an economic downturn as challenging as the current one.

As it turned out, the combined efforts of the Center for Dairy Research and the state’s cheese producers beginning in the early 1990s helped make specialty cheese a staple of the state dairy industry and strengthened its economic position, here and around the world.

While California overtook Wisconsin as the nation’s top milk producer that decade, America’s Dairyland stayed firmly on its perch as the country’s top cheese producer.

The funding concept for the research hub follows a similar plan the state of New York uses to help fund Cornell University’s Pro-Dairy program that links farmers and businesses in that state to research and key resources.

“The funds there don’t just go into what the state might look at as the big, black hole of the university,” said Mark Stephenson, chairman of Dairy Task Force 2.0. “It goes for a very specific program.”

That excites Shelly Mayer, a dairy farmer in Washington County and the executive director of the Professional Dairy Producers of Wisconsin.

As an example, she cited research by UW-Madison dairy science professor Laura Hernandez that includes a new diet to lower instances of dangerous milk fever — caused by low blood calcium levels — in cows after they give birth. That has led researchers studying postpartum depression in women to look at Hernandez’s work.

“There’s a lot of linkages and synergies between animal health and human health that we haven’t even scratched the surface on,” Mayer said.

Wisconsin Republicans Votes to Scrap Governor’s Budget Proposals

The Republican-controlled Wisconsin budget committee voted along party lines Thursday to remove many of Gov. Tony Evers’ most significant proposals from his state budget. Removal kills them for now, but they could be added back later or passed as separate legislation.

Here’s what the proposals deleted from the budget would do:

— Expand Medicaid to cover an estimated 82,000 more poor people as part of a plan that would leverage additional federal money to spend an additional $1.6 billion on health care in Wisconsin.

— Legalize medical marijuana and de-criminalize the possession, manufacture and distribution of up to 25 grams of pot.

— Cap enrollment in private voucher schools starting in 2021.

— Increase the minimum wage from $7.25 to $10.50 by 2023 and tie increases after that point to inflation.

— All-but eliminate a tax credit for manufacturers, which would save the state an estimated $516.6 million but which Republicans paint as a proposed tax increase on job creators.

— Repeal the state’s minimum markup on gasoline, which inflates the cost of gas to deter unfair competition. The committee was not striking Evers’ proposed 8-cent gas tax increase that’s part of his transportation-funding plan, but changes to that were expected to be made later.

— Make driver’s licenses available and grant in-state tuition to immigrants who are in the country illegally.

— Create automatic voter registration.

— Borrow up to $40 million to help cover the cost of replacing lead pipes, primarily in Milwaukee.

— Repeal the “right to work” law passed under former Republican Gov. Scott Walker. That law prohibits requirements for workers to pay fees covering a share of the costs of union representation.

— End a tax deduction for private school tuition.

— Close the so-called “dark stores loophole,” which allows big box retailers to save millions in property taxes by assessing the value of their active stores as if they were vacant.

— Restore powers that Republicans stripped from Evers and Democratic Attorney General Josh Kaul during a lame-duck session in December.

— End a freeze on property tax levies for counties and municipalities, allowing them to increase their levies by 2%.

— Treat 17-year-olds as juveniles for most crimes, rather than as adults, as they are currently.

White House Files Notice to Raise Tariffs on China

The White House on Wednesday filed formal notice of President Trump’s increase to tariffs on Chinese imports amid a breakdown in trade negotiations.

The Office of the U.S. Trade Representative (USTR) submitted an order raising tariffs on $200 billion in Chinese imports after Trump announced the increase Sunday morning.

Trump said in a pair of tweets Sunday that he would raise tariffs on a wide variety of Chinese imports from 10 percent to 25 percent. USTR’s notice to formalize those increases will be published in the Federal Register on Thursday and take effect Friday morning at 12:01 a.m.

The filing comes after Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer confirmed the pending tariff increase Monday, blaming China for backing away from previous agreements with the administration.

China’s Commerce Ministry reportedly said Wednesday that it will respond “in kind” if Trump follows through on the tariff hikes.

 

Gas Tax Still a Part of Wisconsin’s Budget Conversation

Republicans at the Wisconsin Capitol are promising to gut Gov. Tony Evers’ spending budget proposal. But Republicans are leaving the governor’s proposed gas tax increase largely as is.

“I would be open to an increase in the gas tax with a sunset,” state Rep. Mike Rohrkaste, R-Neenah told News Talk 1130 WISN Friday morning. “Meaning that that gas tax could come off in two, three, four, fives years.”

Rohrkaste said a gas tax increase could be a temporary solution to the state’s transportation needs. The emphasis is on “temporary.”

“In the long run, the gas tax is not sustainable with increasing fuel efficiency, hybrid, and electric [cars],” Rohrkaste  said. “Over time, our transportation funding source will decline at a faster pace than the needs of our weather and our economy.”

Rohrkaste said Wisconsin’s economic boom is built largely on manufacturing and farming, and both industries put a lot of pressure on roads across the state.

Wisconsin’s Tourism Economy Continues to Hum

Direct tourism spending in 2018 increased 4.86% to $13.3 billion with an overall economic impact of $21.5 billion, an increase of 4.68%, according to a report released Monday by the state Department of Tourism.

The state’s tourism industry accounted for 199,073 jobs, an increase of 1.67%, that paid out $5.5 billion in wages, an increase of 2.43%, while tourism also contributed $1.5 billion in state and local taxes, an increase of 2.6 percent over 2017.

But for data-driven Sara Meaney, the state’s Tourism Secretary designee, one of the growth categories she is trumpeting this week as she tours the state to tout the tourism numbers is the 4.9% increase in spending per visitor to $118. The number of visitors in 2018 grew by 2 million people over 2017 to 112.1 million.

Statewide, lodging and food and beverage purchases accounted for about $7 billion or about 53% of tourism spending. Shopping contributed $2.6 billion, and $1.8 billion was spent on transportation. Recreational spending on activities like boating, fishing, biking and camping experienced the largest growth by sector with an increase of 8% to $1.9 billion.

U.S. Job Growth Surges; Unemployment Rate Falls to 3.6%

U.S. job growth surged in April and the unemployment rate dropped to a more than 49-year low of 3.6 percent, pointing to solid economic growth.

Nonfarm payrolls increased by 263,000 jobs last month, amid gains in hiring nearly across all sectors. Data for February and March was revised up to show 16,000 more jobs created than previously reported. Economists polled by Reuters had forecast nonfarm payrolls rising by 185,000 jobs last month.

The two-tenths of a percentage point decline in the unemployment rate from 3.8 percent in March was because 490,000 people left the labour force in April. The jobless rate is now below the 3.7 percent that Fed officials project it will be by the end of the year.

The labour force participation rate, or the proportion of working-age Americans who have a job or are looking for one, fell to 62.8 percent in April from 63.0 percent in March. The participation rate hit a more than five-year high of 63.2 percent in January. The low participation rate suggests some slack still remains in the labour market.

GOP Lawmakers to strip Pillars of Governor Evers’ Budget

Republican legislative leaders say their first action next week on Gov. Tony Evers’ budget plan will be to scrap several of its key pillars, including its expansion of Medicaid, overhaul of marijuana laws and tax hikes on big manufacturers and high earners.

Among the items being removed by Republicans on the Joint Finance Committee are Evers’ plans to:

  • Legalize medical marijuana and de-penalize possession of small amounts of the drug.
  • Cap enrollment in the state’s private-school voucher program.
  • Increase the state’s minimum wage from $7.25 to to $10.50 by 2023, then link future increases to inflation.
  • End a freeze on property tax levies for counties and municipalities, allowing them to increase their levies by 2%.
  • Permit Wisconsin residents who are immigrants living in the U.S. illegally to get driver’s licenses or state ID cards, which would specify they could not be used as IDs to vote.
  • Grant in-state tuition to Wisconsin high school graduates who were brought to the U.S. illegally as children.
  • Repeal the state’s minimum markup requirement for fuel sales.
  • Repeal the “right-to-work” law enacted in 2015 that bars requirements for workers to pay fees covering a share of the costs of union representation.

The changes were announced in a memo, released late Wednesday, from the leaders of the Legislature’s budget-writing committee, Rep. John Nygren, R-Marinette, and Sen. Alberta Darling, R-River Hills, to committee members. It says the committee will begin work on the budget May 9, and that its first action will be to take up a motion to remove a list of items proposed by Evers.

A related statement from Nygren and Darling called Evers’ budget “unsustainable” and “irresponsible,” noting it would create a $2 billion structural deficit in two years.

According to the statement, the finance committee will remove 70 non-fiscal items from the budget, as it did two years ago with former Gov. Scott Walker’s budget. The nonpartisan Legislative Fiscal Bureau on Wednesday released a list of non-fiscal items in Evers’ budget. It was second-most in a governor’s budget proposal since 2001, topped only by the Walker budget in 2017.

Justice Roggensack Re-elected as Wisconsin Supreme Court Chief

Wisconsin Supreme Court Chief Justice Patience Roggensack has been re-elected to a third, two-year term leading the court.

The court announced her re-election by fellow justices Tuesday. The result was public, but the vote was done in secret and the breakdown was not announced.

Roggensack replaced Justice Shirley Abrahamson as chief justice in 2015 after voters approved a constitutional amendment giving justices the power to elect the chief justice. Prior to that it had automatically gone to the longest-serving member, who is Abrahamson.

Roggensack is one of the four majority conservative justices. Abrahamson is one of three minority liberal members.

Roggensack says in a statement that she is honored to continue serving as chief justice. She has been on the Supreme Court since 2003.

The chief justice also serves as the administrative head of Wisconsin’s judicial system.