News of the Day

A slow start to the year held down Wisconsin’s average wage growth in 2019, but the state finished the year by averaging more than 3% growth during the fourth quarter in most industries.

Wisconsin averaged year-over-year wage growth of 1.9% for all of 2019, a figure that ranks 43^rd in the country. In the fourth quarter, however, Wisconsin averaged 3.6% wage growth, good enough to rank 14^th in the country.

The wage gains come amidst sluggish job growth for the state. Private sector employment increased just 0.33% from December 2018 to December 2019, according to BLS data. The state also had a strong year of wage growth in 2018, averaging 4.9% growth for the year.

Wisconsin looks to be headed for a showdown over how to spend some of the state’s expected $620 million budget surplus.

Democratic Gov. Tony Evers on Thursday proposed spending $252 million of that surplus on public schools in the state.

The governor wants to earmark nearly $80 million for special education reimbursement, then promise to cover 100 percent of special ed costs beyond that. He’s also proposing $130 million equalization aid. 

The governor also wants to spend more on school mental health and wellness programs as well as hire more school counselors, psychologists and nurses. 

Top Republican lawmakers in Madison aren’t so sure bipartisan support exists for the governor’s proposal. 

Senate Majority Leader Scott Fitzgerald, R-Juneau, took to Twitter after the governor’s announcement to say it looks like Gov. Evers is interested in adding more people to school payrolls as much as anything. 

“Senate Republicans have been focused since late last year on using our surplus for a tax cut for hard-working families, and the governor knows that. I don’t see us budging off that position,” Fitzgerald tweeted. “It appears that the teachers’ unions are the ones calling all the shots in the East Wing.”

Assembly Speaker Robin Vos, R-Rochester echoed the same thought. 

Both Vos and Fitzgerald say they would rather return any extra money to taxpayers. 

A 10% decline in December left Wisconsin’s exports down by more than $1 billion last year compared to 2018 totals as companies dealt with global trade uncertainty and economic slowdowns in Europe and China, according to data from the U.S. Census Bureau.

For the year, Wisconsin ranked 33^rd in the country in terms of export growth and the state dropped from 19^th to 22^nd in terms of total exports. Across the Midwest, Wisconsin had the fifth best year for exports.

Wisconsin’s imports of goods also declined in 2019, dropping 8% or $2.48 billion for the year. The majority of the decrease came in imports from China, which decreased $1.77 billion or 34.4%. European imports were also down 14.4% or $318.8 million, Canadian imports dropped 9% or $467.1 million and Mexican imports dropped $46.8 million or 1.6%.

Some of the biggest declines in Wisconsin exports, in dollar terms, for December included a $70.2 million drop in civilian aircraft parts, a $15.4 million drop in battery waste and machine parts, a $15.1 million drop in wheat and meslin, a $13.8 million decline in self-propelled bulldozers, graders and scrapers and an $11.3 million drop in automatic data processing machines and magnetic readers.

Republican lawmakers are considering proposals to cut property taxes and insurance costs for farmers as part of a package to help rural Wisconsin that Assembly Speaker Robin Vos on Tuesday promised would be “bigger and bolder” than what Democratic Gov. Tony Evers put forward.

Evers called a special session of the Legislature to take up his $8.5 million package, which included a $1 million effort to increase dairy exports and the hiring of more people at the state agriculture department and University of Wisconsin-Madison extension division to work with farmers.

The Wisconsin Department of Transportation (WisDOT) announced seven Excellence in Construction Awards for 2019 during the annual Contractor-Engineer Conference held recently in Madison.

• Excellence in Airport Construction – Honors went to Vinton Construction Co. of Manitowoc for work on the Sheboygan County Memorial Airport. The project upgraded the southeast portion of the aircraft parking ramp allowing it to serve a higher number of businesses using the airport. The project also reconstructed two taxiways and improved drainage in the hangar area.

• Excellence in Grading – Honors went to Mashuda Contractors Inc. of Princeton for work on the US 151/County ID interchange in Iowa County, a safety enhancement that included a new overpass and realigned roads. The contractor crushed rock on site and used multiple traffic stages to help reduce costs and minimize user delay.

• Excellence in Asphalt Paving – Honors went to Pitlik & Wick, Inc. of Eagle River for resurfacing a portion of US 45 (Pine Street) nine days ahead of schedule to minimize travel impacts for the annual Cranberry Fest. The contractor worked with subcontractors and traffic staging to expedite scheduling and reduce cost while delivering a quality improvement focused on safety.

• Excellence in Concrete Paving – Honors went to Chippewa Concrete Services Inc. of Chippewa Falls for reconstruction of US 2 (Belknap Street) in Superior. The contractor modified traffic staging to help maximize construction operation while delivering a quality project on time.

• Excellence in Small Structures – Honors went Kraemer North America of Plain for construction of the US 10 bridge over Plum Creek in Pierce County. The project involved a sixty-foot temporary bridge to avoid detours for the traveling public. The contractor delivered on time and under budget amid a tight timeline and working restrictions near the stream.

• Excellence in Large Structures – Honors went to Lunda Construction Company of Black River Falls for construction of the WIS 116 (Main Street) bridge over the Wolf River, in Winneconne. The contractor completed a complex project early and on budget. The new structure replaces a bridge dating back to 1934 while adding additional amenities such as fishing piers and a wider sidewalk to accommodate snowmobiles. Construction was staged adjacent to the old bridge to avoid a 25-mile detour.

• Large Contract – Honors went to Michels Corporation for work on the south and central segments of the I-94 North/South project in Racine and Kenosha counties. The project reconstructed and expanded 11 miles of roadway to provide eight lanes with full concrete shoulders. The project involved many different components including four new interchanges and 18 new bridges. The contractor worked closely with WisDOT and surrounding communities to construct the project in a condensed 17-month time window while still maintaining traffic volumes of 98,000 vehicles per day.

With one challenge pending to some of Gov. Tony Evers’ partial vetoes in the most recent budget, the state Supreme Court has agreed to hear a separate suit seeking to overturn two vetoes issued by former Gov. Scott Walker.

Those partial vetoes Walker issued in the 2017-19 budget include one that’s been dubbed the “thousand-year veto.” That’s because Walker used his partial veto authority to turn a legislative deadline of Dec. 31, 2018, into December 3018.

The lawsuit, filed by Wisconsin Small Businesses United Inc. and five citizens, asked the state Supreme Court to directly take its suit and weigh in on the constitutionality of Walker’s moves. The court agreed earlier this month to hear the case and announced its decision yesterday afternoon.

The plaintiffs argue the Supreme Court has found that governors can strike individual digits in monetary figures included in appropriation bills. But it hasn’t said they may strike digits in dates, creating new ones beyond what the Legislature had intended, the suit argues.

One of the vetoes deals with an exemption to school district levy limits for energy efficiency projects. The Legislature intended a one-year moratorium on the exemption that would’ve made it unavailable for 2018. Instead, Walker pushed it back to 3018.

The second dealt with a 2013 law to allow retailers to claim a deduction or earn a refund of sales taxes on some bad debts. It was originally to take effect in 2015, but was pushed back in the 2015-17 budget. The 2017-19 budget then included another delay, this time until July 1, 2018. Walker’s veto pushed it back an additional 60 years.

In October, the court agreed to take original jurisdiction in a challenge the conservative Wisconsin Institute for Law & Liberty filed over four of Evers’ budget vetoes. That includes one that changed registration fees for heavy trucks and eliminated a grant program for school buses, instead directing the money to electric vehicle charging stations.

Recent Wisconsin Policy Forum research has shown the state’s working age population is shrinking while many growing occupations require higher levels of education. In a new analysis of recently released data from the state, we now find areas of concern with regard to Wisconsin’s performance on an important education metric related to this challenge.

According to data from the state Department of Public Instruction, the share of high school students statewide whose ACT subject test scores indicate they are prepared for college courses in English, math, and science declined between 2017-18 and 2018-19.

Wisconsin’s state average composite score was 19.6 for 2018-19, which is a slight decline from the state average of 19.8 the year before. This modest decrease, however, is masking potentially significant declines within each subject area that are relevant to students’ “college readiness.”

The ACT establishes college readiness benchmarks in each of four subject areas, which indicate that a student has a “50% chance of obtaining a B or higher or about a 75% chance of obtaining a C or higher” in the corresponding first-year college course.

Those benchmarks are a score of 18 (out of a possible 36) on the English section; 22 on the math section; 22 on the reading section; and 23 on the science section. There is no benchmark for the composite score.

Yesterday, Governor Tony Evers,  joined by Department of Financial Institutions Secretary Kathy Blumenfeld, signed Executive Order #67 creating the Governor’s Task Force on Student Debt.

This task force will be chaired by Secretary Blumenfeld and will be tasked with assessing student debt in Wisconsin and providing long-term strategies to reduce education-related debt, prevent abusive practices by loan companies, and improve financial literacy education.

“For too many Wisconsinites additional education or job training is out of reach. We need to address college affordability and ensure that a great education doesn’t come at the cost of decades of crippling debt,” said Gov. Evers.

“Student debt is preventing folks from buying a car, starting a business, saving for retirement, and starting a family, and that is ultimately holding back our state and our economy. Student debt isn’t going away any time soon, but this task force will be a meaningful first step in addressing this issue in our state.”

Wisconsin’s tax season, like the federal tax season, officially began on January 27. Filing activity will be brisk, particularly the first few weeks and the last few weeks of the season.

This year’s individual income tax filing deadline is Wednesday, April 15. DOR reminds taxpayers not to file until they have all their tax documents. Having to file an amended return later will significantly delay a refund.

“Of the more than three million individual income tax returns the department received last year, just under 88 percent were filed electronically,” says Wisconsin Department of Revenue Secretary Peter Barca. “We would love to see that number at 100 percent because electronic filing is more secure, accurate and almost always results in a faster refund.”

People may use the free and accurate Wisconsin e-file online tool to file their state income taxes, or they may choose to use third-party software from an approved vendor. Like other online tools, Wisconsin e-file does the required math to prevent errors and allows direct deposit or withdrawal from a bank account.

Taxpayers will find helpful resources available on DOR’s website at www.revenue.wi.gov including:

• a list of free tax help sites across Wisconsin
• an online application that checks your refund status
• a free mobile app available through Apple and Android app stores
• DOR’s video center, with information on e-filing, free tax help and tax credits

As in previous years, DOR cannot issue refunds until March 1, if it cannot verify wage and withholding information from employers.