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Yesterday, Governor Walker signed Assembly Bill 710, a bill authored by Representative Samantha Kerkman (R-Salem Lakes) that creates criminal penalties for Unemployment Insurance (UI) fraud.

“What started with constituents calling for assistance because they were having trouble filing their UI claims, progressed into an audit of the initial claims processing for Unemployment Insurance benefits,” said Rep. Samantha Kerkman who co-chairs the committee that assigned the audit. “What we did not anticipate discovering was that there are a small percentage of individuals who account for the majority of overpayments, collectively defrauding the system of
millions of dollars annually.”

Now 2017 Wisconsin Act 147, the legislation targets the worst offenders by increasing the penalty based on the amount of the fraud, using the same scale currently in statute for other types of theft. Prior to Act 147, penalties were substantially lower and carried little risk of prosecution.

“I am happy to have worked with the Department of Workforce Development and stakeholders in creating another tool to help deter fraud and aid in recovery of overpayments. Reducing fraud protects the integrity of the UI fund and helps ensure that the unemployment program remains a safety net for those who are out of work,” said Rep. Kerkman.

Unemployment Insurance benefits are funded through payroll taxes paid by Wisconsin employers. The integrity of the Unemployment Insurance program and trust fund contributes to a stable economy and is important to Wisconsin workers who may one day need the safety net the fund provides and to Wisconsin employers who feel the effects of program fraud through higher tax rates.

Facebook said on Wednesday that it is rolling out a new tool to centralize user privacy and security settings following the outcry over its data collection practices.

The company said that users will be able to make changes from a single page instead of having options spread across nearly two dozen screens on different parts of platform. Facebook plans to roll out the change in the coming weeks.

Facebook users will be able to adjust an array of privacy settings on the page for the information that they’ve given the platform, like their interests, and their activity on Facebook, such liking photos and commenting on friends’ statuses.

Users will also be able to more easily see what data can and can’t be shared with apps.

Wisconsin is in the procurement stage of rolling out the NextGen 911 system, which will allow all dispatch centers to get more data from people in an emergency.

NextGen 911 offers more bandwidth to pinpoint almost exactly where the caller is and connects Wisconsin dispatch centers through a shared network.  It will be offered to all of the 109 dispatch centers, but not required. The centers that opt in will be charged monthly, in addition to the initial cost of equipment.

The most recent state budget included $6.7 million for planning the NextGen 911 upgrade. The state is currently waiting on bids from vendors who can create the system. That cost will be included in the 2019 biennium budget.

Governor Walker signed AB 843 into law today at Victor Haen Elementary School in Kaukauna. The bill includes Governor Walker’s $100 million School Safety Plan, which creates a grant program for school districts to enhance school safety resources. Every Wisconsin school is eligible for the grant program.

“Our $100 million School Safety Plan will help ensure that every student, parent, and teacher feels safe at school,” said Governor Walker. “This bill provides important grant funding that will allow districts to invest in safety measures that will help protect against all threats. This will help protect our students and their future.”

Governor Walker’s School Safety Plan:

• Creates an Office of School Safety within the Wisconsin Department of Justice to work with law enforcement and schools to establish best practices for school safety and provide training opportunities and other relevant resources to schools.
• Provides $100 million to fund a new grant program for security upgrades to school buildings and other eligible costs.
• Mandates reporting for any threats of school violence.
• Allows grant funding to implement Trauma-Informed Care and Adverse Childhood Experiences in Schools.
• Strengthens school safety plan requirements by requiring all schools to consult with local law enforcement and conduct on-site assessments of all pupil occupied areas.

Yesterday,  Governor Scott Walker announced Economic Opportunity Zone (EOZ) recommendations throughout the State of Wisconsin covering more than 40 counties in rural, urban, and tribal areas. These zones present an opportunity for private, tax-free investment into areas of economic need, benefiting residents living in the zones and the private investor. EOZs were created in the federal Tax Cuts and Jobs Act of 2017.

“We are excited to embrace Economic Opportunity Zones as a new tool to build on our track record of economic growth,” Governor Walker said. “Right now, more people are employed in our state than ever before in our history, and Wisconsin is at near record lows for unemployment. These recommendations reach communities across our state – urban, rural, and tribal – that are positioned for strong and sustained growth.”

The Economic Opportunity Zones Program is a federal community development tax incentive program which creates an incentive for businesses and community members to invest in designated EOZs. These investments will help communities in designated areas develop, and the return on the investment will have reduced tax liability.

Governor Walker recommended the maximum number of Economic Opportunity Zones: 120 recommendations within 44 counties in rural, urban and tribal areas. These designations were made based on recommendations from an interagency working group comprised of WHEDA, WEDC, DOA, and DCF; public comment; and an independent analysis conducted by a nationally respected consulting firm.

The U.S. Department of the Treasury will make the final selection for EOZs in Wisconsin based on the Governor’s recommendations. These designations represent ten years of potential private investment into these communities.

Thousands of Wisconsinites leave the Badger State every year, taking millions of dollars with them – a bleak trend highlighted by recent Internal Revenue Service data. An average of $463 million left the state annually from 2011 to 2016, according to tax records.

Between 2015 and 2016 alone, 5,185 fewer households filed tax returns in Wisconsin. Total adjusted gross income – all the income that Wisconsinites reported – fell by a shocking $461 million in that year alone. Wisconsinites are leaving in droves, and they’re taking their nest eggs with them.

From 2011 to 2016, more than $2.3 billion left the state of Wisconsin. A net 35,788 people have left in that time, an average of 7,158 fewer Wisconsin tax filers every year.

Census Bureau statistics show where Wisconsinites go when they leave, and where new Wisconsinites came from when they arrive. Overwhelmingly, Badgers are moving to Florida, Arizona, Texas, and Colorado, all states with lower tax burdens than Wisconsin.

The numbers in Texas show a similar story. The majority of new residents are coming from high-tax states with poor fiscal health such as California, Louisiana, Illinois, New York, and New Jersey.

The tax burden isn’t the only reason why people choose to move, but it cannot be ignored. Capital flows to where it is treated best. To welcome new residents to Wisconsin and keep our economy flowing, the state should consider lowering taxes across the board.

The Wisconsin Senate will be taking up a bill that would make a number of changes to the state’s civil-litigation rules.

Assembly Bill 733 would modify the state’s construction statute of repose, which contractors commonly invoke as a defense in certain personal-injury lawsuits. The statute prevents injured plaintiffs from suing over negligent design for an injury that occurred more than 10 years after a project was substantially completed. A provision in AB 773 would shrink that window down to 7 years.

Under the bill, insurers would see a decrease from 12 percent to 7.5 percent in the interest rate they must pay on overdue claims.

The bill would also make changes to the state’s rules involving discovery.  That process can be burdensome and expensive for defendants, and the bill’s proponents say the changes could reduce legal costs for Wisconsin businesses.

The Senate will be taking up the bill at a floor session on Tuesday.