Brian Dake

Wisconsin Legislature’s Budget Committee Wraps Up with Massive Tax Cuts

Posted on June 18, 2021 by

Taking advantage of an unexpected revenue windfall, Republicans on the Wisconsin Legislature’s budget committee voted Thursday to approve about $3.4 billion in income, business and property tax cuts, wrapping up its work on the two-year spending plan.

The Republican plan would bring the state’s third income tax bracket down from 6.27%  to 5.3%, generating about $2.7 billion in relief. That bracket encompasses individuals making between $23,930 and $263,480 per year, and households earning between $31,910 and $351,310 per year.

Lawmakers set aside $202 million to offset a repeal of the state’s personal property tax which applies, in general, to furniture, equipment, machinery and watercraft owned by businesses. A portion of that tax — which provides funding to schools and local governments — was eliminated in the 2017-19 budget.

Committee co-chair Sen. Howard Marklein, R-Spring Green, noted that the tax is frustrating for those who pay it because it continues to apply every year — not just when the taxed item is purchased.

The motions passed Thursday also include a $72 million increase in aid to technical colleges and an additional $408 million for general school aid. They also remove a reduction in general school aid associated with some independent charter schools. Because spending caps remain in place, that funding would result in a decrease in property taxes. In total, the budget reduces property taxes by about $647 million.

The Republican tax measures are based on the idea that “taxpayers will do a better job, a more responsible job” than government would with the majority of the $4.4 billion more than expected that the state is projected to take in over a three-year period, said co-chair Rep. Mark Born, R-Beaver Dam.

State to Give 84,000 Wisconsin Small Businesses $5,000 grants by End of June

Posted on June 1, 2021 by

Some 84,000 Wisconsin businesses have been invited to apply for a $5,000 grant to be distributed by the Wisconsin Department of Revenue and Wisconsin Economic Development Corp.

Gov. Tony Evers authorized $420 million, through funding received by the American Rescue Plan Act, to be distributed to businesses that apply by 4:30 p.m. on June 7.

The businesses selected to be eligible for the grants had to have an annual gross revenue between $10,000 and $7 million.

Last year WEDC distributed $240 million to roughly 60,000 small businesses through funds received from the CARES Act.  Businesses that received funding last year could be eligible again for this new round of funding. Also, businesses that were started in 2020 are also eligible.

WEDC said the state is hoping to start distributing the grants to businesses as early as the first week in June, with the goal of having all the money distributed by the end of June.

Those interested in learning more about the program should visit the Department of Revenue website.

Wisconsin Republicans Want to End $300 Unemployment Bonus

Posted on May 19, 2021 by

Wisconsin Republicans want to end the $300-per-week federal unemployment supplement, which they said Tuesday hurts businesses that are struggling to fill vacancies as customers return amid a loosening of coronavirus restrictions.

The bill comes after the state chamber of commerce, more than a dozen trade groups, more than 50 local chambers of commerce and others called on Evers to return the state’s unemployment payments to pre-pandemic levels. Republican U.S. Sen. Ron Johnson and Wisconsin’s five Republican members of Congress last week also asked Evers to rescind the $300 payment.

More than a dozen states with Republican governors have moved to eliminate the $300 payment. That payment is on top of Wisconsin’s weekly $370 unemployment benefit.

Ron Buholzer, one of the owners of Klondike Cheese Co. in Monroe, said he has 34 open positions now and has few applicants, despite raising starting salaries from $14 to $16 an hour.

“The help we have, they’re getting tired,” Buholzer said at a Capitol news conference. “They’re long days, long hours, when you’re short of people. … The only way we can fix that is more people.”

Under the bill, Wisconsin would no longer participate in four federal unemployment enhancement programs: Pandemic Unemployment Assistance, Pandemic Emergency Unemployment Compensation, Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation.

The bill also prohibits the Wisconsin Department of Workforce Development from waiving work-search requirements for any reason that is related to COVID-19. Republicans moved forward with separate plans to reinstate the work requirement, with a legislative committee planning to vote Wednesday to suspend the state rule waiving the work search requirements. That waiver is set to expire in July.

If the rule is put back in place, unemployed people will have to perform four work-search activities weekly to obtain benefits.

 

DATCP Waives Surcharge for Agricultural Chemical Cleanup Program Fund

Posted on May 18, 2021 by

For the fourth consecutive year, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) is waiving the usual surcharge for the Agricultural Chemical Cleanup Program (ACCP). Fertilizer and pesticide businesses normally pay this surcharge when renewing their license, and the resulting fund helps pay to clean up agrichemical spills.

DATCP waives the surcharge when the fund balance remains above $1.5 million, allowing fertilizer dealers, commercial pesticide applicators, and pesticide manufacturers to pass these savings on to their customers.

The surcharge holiday will extend through June 2022 for fertilizer sales, and through the 2021-22 license year for other licensees. The surcharge is based on the level of the ACCP fund on May 1 of each year, when DATCP is required to review the program funds and decide whether to continue the surcharge holiday.

For more information about the ACCP fund and surcharges, visit https://datcp.wi.gov/Pages/Programs_Services/ACCPFundSurcharges.aspx.

Some Wisconsinites Who Declined to Return to Unsafe Jobs Could Be Eligible for Federal UI Benefits

Posted on April 29, 2021 by

Tens of thousands of people in Wisconsin whose applications for COVID-19 pandemic unemployment benefits were denied could be eligible for up to 79 weeks of unemployment payments.

There are three main categories of newly eligible workers:

  • Those who declined to return to work at a site that wasn’t complying with COVID-19 safety standards, such as requiring face masks and physical distancing.
  • Those working for an educational institution who became unemployed or partially unemployed after COVID-19 scrambled workers’ schedules.
  • Those who were laid off or had their hours reduced as a result of COVID-19 measures, including restaurant workers.

Officials with the state Department of Workforce Development said they would be mailing notices to nearly 28,000 people who were denied benefits under the federal Pandemic Unemployment Assistance program to let them know they are eligible to reapply under the expanded guidelines. If they were denied before but found to be eligible now, they could be paid for the entire period of the pandemic thus far.

The Biden administration announced expanded eligibility for the federal program in February after President Joe Biden in an executive order said workers whose employers didn’t follow safety protocols could get the benefits. The Wednesday announcement by DWD follows from that executive order and guidance from Biden’s Department of Labor.

Wisconsinites who weren’t previously denied federal Pandemic Unemployment Assistance can also apply under the expanded eligibility. However, they’ll be limited in the number of weeks of back payments they can claim.

President Biden to Order Raising Federal Contractor Minimum Wage to $15

Posted on April 27, 2021 by

President Biden on Tuesday is expected to sign an executive order raising the minimum wage for federal contractors to $15 by March 2022.

At that time, the order will result in a 37-percent raise for federal contractors making the current contracting minimum $10.95, and setting their salary at over double the regular statutory federal minimum wage, which has been stuck at $7.25 since 2009.

Biden’s order would also phase out the tipped minimum wage, which stands at $7.25 by 2024, and set minimum wages for workers with disabilities on par with the standard minimum wage for contractors.

Federal agencies will have to begin incorporating the new wages into their contract solicitations by January 30, 2022, for implementation no later than March 30.

The new wages will apply to existing and multi-year contractors when their contracts receive their annual renewals, meaning some workers won’t see the benefits until later in the year.

Foxconn, State of Wisconsin Reach New Deal on Scaled Back Project

Posted on April 19, 2021 by

Foxconn Technology Group has reached a new deal with reduced tax breaks for its scaled back project in southeast Wisconsin.

Gov. Tony Evers and the world’s largest electronics manufacturer announced the new deal on Monday. Details of the new agreement were not immediately released.

It was scheduled to be approved at a Tuesday meeting of the Wisconsin Economic Development Corp., the state’s top jobs agency that previously negotiated the initial deal with Foxconn.

Senate Republican Leader: No Legal Marijuana, but Tax Cuts Possible

Posted on April 16, 2021 by

Senate Majority Leader Devin LeMahieu on Thursday closed the door to legalizing medical or recreational marijuana in Wisconsin in the foreseeable future, but said Republicans will seek to hold the line, or possibly cut taxes, during the upcoming state budget negotiations.

LeMahieu, R-Oostburg, said Senate Republicans do not have the votes to pass any marijuana legislation on their own, driving a stake through another one of Gov. Tony Evers’ signature policy goals for the state budget process.

“We have some societal concerns,” LeMahieu said. “We don’t have support from the caucus. We don’t have 17 votes” — which would be a majority of the Senate where Republicans hold a 21-12 advantage.

LeMahieu said the discussion around medicinal marijuana needs to start at the federal level because the drug is still on the list of federally controlled substances. He said he’s not comfortable with Wisconsin becoming a “rogue state,” legalizing it beforehand without federal blessing. Seventeen states, including neighboring Michigan and Illinois, have legalized recreational marijuana.

LeMahieu said Republicans are still interested in holding the line on tax levels and potentially even cutting taxes, specifically through reductions in income tax or eliminating personal property taxes for small businesses.

Governor Evers Approves Plans for Ho-Chunk Casino in Beloit

Posted on March 26, 2021 by

Gov. Tony Evers signed off Wednesday on the Ho-Chunk Nation’s plans to open a casino and entertainment complex in Beloit, hailing the project as job creator that will help the region recover from the economic damage of the COVID-19 pandemic.

The U.S. Department of the Interior in April approved taking 32 acres just north of the Illinois border into trust for the purpose of developing the complex. Federal law gives governors the power to approve or reject off-reservation casinos.

The complex would include one of the largest casinos in the state as well as a 300-room hotel with more than 45,000 square feet of meeting and convention space, and a 40,000-square-foot indoor waterpark.

The Department of the Interior now must issue a final determination on taking the land into trust. Evers and the Ho-Chunk then must amend the tribe’s gaming compact with the state.

“As we work to bounce back from this pandemic, we must do everything we can to support economic development in communities across our state,” Evers said in a statement.

The Ho-Chunk already run three casinos in Wisconsin — one in Nekoosa, one in Baraboo and one in Black River Falls. The tribe’s gaming compact with the state allows it to operate a fourth. Plans for the Beloit facility have been in the works for more than 20 years.

Beloit voters approved the project in a 1999 referendum. The tribe purchased the land in 2009 and has been working to win federal and gubernatorial approval to build a casino there since 2012.

Wisconsin Legislature Approves Funding Bill for Utility Ratepayer Advocate

Posted on March 24, 2021 by

Wisconsin lawmakers have approved a bill to provide the state’s consumer advocate with funding to negotiate more favorable utility rates.

The bill, passed by the Senate Tuesday, would direct $900,000 a year from ratepayers of Wisconsin’s investor-owned utilities to the Customer Utility Board (CUB), an independent nonprofit organization established by the Legislature to represent utility customers. Funding would be administered by the Public Service Commission, which would have oversight of the organization’s budget.

“Wisconsin homeowners, renters and small businesses will now have an even more effective consumer advocate working on their behalf in the years ahead,” said CUB executive director Tom Content.

Content said the additional revenue will allow CUB to expand its staff and better represent ratepayer interests under a 2018 law that encourages utilities to negotiate rates with consumer advocates and other interested parties.

The new model is expected to cost customers of investor-owned utilities a little less than 2 cents a month. Content said that in the past 15 years CUB has saved ratepayers $3.6 billion, a return of $170 on the dollar.

The bill prohibits CUB from using that funding on lobbying or work on rates and practices of municipal utilities, though it would be eligible to receive up to $100,000 in additional funding from the PSC for other work, such as intervention in a water rate case.

The bill also streamlines some PSC regulatory procedures, including:

  • Allowing utilities to file a single application to build a generator and associated transmission line; current law requires a separate application for the line.
  • Doubling the cost threshold to $5 million for natural gas projects requiring commission approval.
  • Eliminating the requirement for the PSC to conduct an environmental review of its 2-year strategic energy plan.

The bill, passed unanimously by the Senate and Assembly, now heads to Gov. Tony Evers, who previously endorsed the proposal and included most of the language in his biennial budget.