Brian Dake

On Friday, the Wisconsin Department of Revenue (DOR) released its annual Equalized Values Report. The report shows Wisconsin’s total statewide equalized property value as of January 1, 2021, was $654 billion, a 7% increase over the prior year; growth occurred in all property classifications. Equalized values are based on data from January 1, 2020 to January 1, 2021.

Report highlights:

• Change in Equalized Value = $41.6 billion, a 7% increase from 2020
o $31.1 billion due to market value increases (5%)
o $10.1 billion due to new construction (2%)

Equalized Values are calculated annually and used to ensure statewide fairness and equity in property tax distribution. The Equalized Value represents an estimate of a taxation district’s total taxable value and provides for the fair apportionment of school district and county levies to each municipality. Changes in Equalized Value do not necessarily translate into a change in property taxes.

On Friday, the U.S. Department of Education (Department) announced a final extension of the pause on student loan repayment, interest, and collections until January 31, 2022. The Department believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart. The Department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” said U.S. Secretary of Education Miguel Cardona. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment. It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education.”

The Department will begin notifying borrowers about this final extension in the coming days, and it will release resources and information about how to plan for payment restart as the end of the pause approaches.

The Biden administration announced Thursday it will allow a nationwide ban on evictions to expire Saturday, arguing that its hands are tied after the Supreme Court signaled the moratorium would only be extended until the end of the month.

The White House said President Joe Biden would have liked to extend the federal eviction moratorium due to spread of the highly contagious delta variant of the coronavirus. Instead, Biden called on “Congress to extend the eviction moratorium to protect such vulnerable renters and their families without delay.”

“Given the recent spread of the delta variant, including among those Americans both most likely to face evictions and lacking vaccinations, President Biden would have strongly supported a decision by the CDC to further extend this eviction moratorium to protect renters at this moment of heightened vulnerability,” the White House said in a statement. “Unfortunately, the Supreme Court has made clear that this option is no longer available.”

The court mustered a bare 5-4 majority last month, to allow the eviction ban to continue through the end of July. One of those in the majority, Justice Brett Kavanaugh, made clear he would block any additional extensions unless there was “clear and specific congressional authorization.”

The Wisconsin Assembly voted again Tuesday on a bill that would eliminate extra federal money for unemployment benefit recipients in Wisconsin, but Republican support for the measure wasn’t enough to override a veto from Democratic Gov. Tony Evers.

The GOP attempt to override Evers’ veto fell short of the two-thirds vote threshold necessary to do so. It passed on a vote of 59-37, with Republicans voting in favor and Democrats against.

The bill, which was first approved by the GOP-controlled Legislature last month, would have barred Wisconsin from participating in the federal program that provides $300 a week in additional unemployment aid to benefit recipients. More than two dozen states have passed similar measures already this year. The bill would have also blocked the state Department of Workforce Development from waiving work search requirements for unemployment benefits because of the COVID-19 pandemic.

During debate, Republicans argued the extra money makes it too easy to stay unemployed, and pointed to businesses across the state that are struggling to hire workers.

“Government is doing something right now that works against these businesses, works against our economy,” said Rep. Mark Born, R-Beaver Dam.

According to the state Department of Workforce Development, the maximum state weekly unemployment payment is $370 a week, depending on the worker’s prior income. Combined with the $300 in additional federal benefits, that would amount to $16.75 an hour for a 40-hour work week.

Democrats pushed back on Republicans’ arguments, arguing that eliminating the extra federal money wouldn’t be enough to solve Wisconsin’s worker shortage. They said there are other barriers to going back to work, such as child care shortages that have been exacerbated by the pandemic, continued concerns about contracting COVID-19 and inadequate public transportation. Some workers have also struggled to find jobs that align with their skills and abilities.

The federal benefits are scheduled to end in September, regardless of individual states’ actions.

Wisconsin Insurance Commissioner Mark Afable has approved an overall 5.44 percent decrease in worker’s compensation insurance rates, effective October 1, 2021. This is the sixth straight year of rate decreases in Wisconsin.

“This is great news for Wisconsin’s employers and workers,” said Commissioner Afable. “As our state recovers from the pandemic, this will help provide additional relief to our businesses who could save more than $90 million¹ thanks to this decreased rate.”

Worker’s compensation insurance rates are adjusted annually by a committee of actuaries from the Wisconsin Compensation Rating Bureau (WCRB). The Commissioner of Insurance has final approval over rate changes that are recommended by the WCRB.

The five major industry groups for worker’s compensation insurance in Wisconsin will all benefit from a rate decrease. Contracting will have a 5.35 percent decrease; Office and Clerical will have a 4.21 percent decrease; Goods and Services will have a 6.39 percent decrease; Manufacturing will have a 5.53 percent decrease; and the Miscellaneous industry group will have a 4.12 percent decrease. Specific rates for classification codes may increase or decrease.

Questions about rate development can be directed to the WCRB at (262) 796-4540 or online at https://www.wcrb.org/wcrb/wcrbhome.htm.

Yesterday, Governor Tony Evers and Oneida Chairman Tehassi Hill signed a historic compact amendment that expands allowable gaming at Oneida Nation casinos and affiliate locations in the state of Wisconsin to include event wagering. This compact amendment will be the first to allow event wagering, including sports betting, to occur in Wisconsin.

“Event wagering,” as defined by the compact amendment, can include sports and events betting such as wagering on nationally televised award shows, professional sports league drafts, and professional sporting events such as the National Football League, the National Basketball Association, and Major League Baseball.  The current compact amendment does not allow for wagering on Wisconsin college athletics. Wagering is also prohibited on the outcomes of elections for public office and for events with participants under the age of 19.

The compact amendment signed today follows months of negotiations between the Oneida Nation and the Wisconsin Department of Administration’s (DOA) Division of Gaming. The agreement will be sent to the federal Bureau of Indian Affairs (BIA) and the Bureau has 45 days to review and approve the compact amendment.

If approved, the Oneida Nation can begin expanding operations to allow event wagering at Oneida Casino. The compact amendment also allows for remote event wagering on land owned by the Nation or held in trust for the Oneida Nation by the federal government that contains a commercial building owned or leased by the Oneida Nation. The Oneida Nation hopes to begin offering event wagering in time for the upcoming football season.

Both existing home sales and median prices rose by double-digit margins in May compared to their levels 12 months earlier, when the economy was in lockdown. Housing supply remains very tight with just 2.8 months of available supply in the state. Inventory is tight in all regions, across all urban/rural classifications and across all price ranges

“Basic economics tells us that strong and growing demand in a world of tight supply is going to create significant price pressure, and that’s exactly what we’re seeing in the state housing market. Median prices through the first five months are up at an annual pace of 12.1%. Unless demand moderates or supply improves, neither of which is likely in 2021, we can expect to see more of the same price appreciation through the end of this year. The good news is that mortgage rates remain very low by historical standards, which has at least partially offset the impact of significant price pressure on housing affordability in the state.  Hopefully the inflationary pressures don’t intensify, which could cause mortgage rates to increase and lower affordability,” said Michael Theo, President & CEO of the Wisconsin Realtors Association.