News of the Day

Trade Talks Hung up Over China’s Commitment to U.S. Ag Purchases

Trade talks between the U.S. and China have hit a snag over farm purchases, as officials seek to lock down the limited trade deal President Trump outlined last month.

Trump has said that China has agreed to buy up to $50 billion of soybeans, pork and other agricultural products from the U.S. annually. But China is leery of putting a numerical commitment in the text of an agreement, according to people familiar with the matter.

Beijing wants to avoid cutting a deal that looks more favorable to the U.S. than to China, some of the people said, and also wants to have flexibility within the agreement should trade tensions escalate again. “We can always stop the purchases if things get worse again,” said one Chinese official.

The dispute over farm purchases is one of several issues that have delayed completion of the limited trade accord announced by Trump and Chinese Vice Premier Liu He on Oct. 11. Both sides are also at odds over whether — and by how much — the U.S. would agree to lift tariffs on Chinese imports, Beijing’s core demand that is linked to its offers on other issues.

Chinese officials also have resisted U.S. demands for a strong enforcement mechanism for the deal and curbs on the forced transfer of technology for companies seeking to do business in China — all of top importance to the international business community — according to people familiar with the talks.

UW System, WEDC Unveil Online ‘Talent Generator’ to Boost Internships for UW Students

The University of Wisconsin System and Wisconsin Economic Development Corp. (WEDC) have  unveiled a new online tool to help small and medium-sized businesses recruit interns from UW campuses. The goal is to improve the student experience and keep skilled workers from leaving the state.

The “Talent Generator” is an online portal for businesses interested in starting internships for the first time. It offers business leaders tips and best practices for recruiting potential interns. It also offers links to career services staff at nearby UW System campuses.

During a press conference Tuesday in Eau Claire, UW System President Ray Cross said while UW schools already have strong internship opportunities, not all businesses are familiar with the process or have the means to find candidates.

“What we discovered was that businesses said to us, particularly small and medium businesses, we really don’t have an HR department,” said Cross. “And those are some excellent internship opportunities in startups or small businesses.”

Cross said about half of the students who receive internships at UW are offered full time jobs by the companies that recruit them. He said it’s one way to ensure that students graduating at UW institutions build lasting connections to Wisconsin.

 

Wisconsin Civil Justice Council Issues 2019 Guide to the Wisconsin Supreme Court and Judicial Evaluation

Wisconsin Civil Justice Council (WCJC) today released its 2019 Guide to the Wisconsin Supreme Court and Judicial Evaluation, which reviews the most important cases decided by the Supreme Court of Wisconsin affecting the business community. The 2019 Judicial Evaluation covers the 2018-19 Supreme Court term.

The Judicial Evaluation scores the justices based on the percentage of the reviewed cases in which their position aligned with the WCJC position. Based on the comprehensive review of decisions affecting the business community, Chief Justice Patience Roggensack and Justice Annette Ziegler scored the highest at 80 percent. Justice Rebecca Bradley scored 79 percent, and Justice Daniel Kelly came in at 76 percent. New to the court this term, Justice Rebecca
Dallet scored 59 percent. Justice Walsh Bradley scored 30 percent. In her last term before retiring from the court this year, Justice Shirley Abrahamson scored 28 percent.

The 2019 Judicial Evaluation provides a discussion of the facts and the court’s holding in each of the decisions, including the dissenting opinion(s). The guide then lists how each justice decided the case, along with the WCJC position on the court’s decision.

This is the fourth judicial evaluation issued by WCJC since 2011. For more information about WCJC, please visit http://www.wisciviljusticecouncil.org/.

 

State of Wisconsin, UW-Madison to Raise Hourly Minimum Wage for Employees to $15

The State of Wisconsin, including UW-Madison, intends to increase the minimum wage for its hourly employees to $15 an hour, according to statements issued Friday by the university and Gov. Tony Evers.

For university employees, the increase from the current minimum wage of $13.27 per hour, which aligns with the city of Madison’s 2019 living wage, will go into effect in spring 2020. The wage increase stands to benefit university workers mostly in custodial, animal care and food-service positions. It will not affect temporary or student employees, according to the university.

With the state’s proposed compensation plan for 2019-2021, released Friday, Governor Evers is pushing to provide a 2% increase in wages for tens of thousands of state employees in January, and another 2% raise a year later.

Under the plan, all permanent state employees would earn at least $15 an hour by Jan. 3, 2021, with some state workers receiving the increase starting in June.  Funding for those raises was included in the 2019-21 state budget, but the specific details still have to be hashed out by the Evers Administration and the Legislature.

Wisconsin among 10 Slowest Growing States in Second Quarter

Wisconsin economy grew at an annualized rate of 1.1% in the second quarter, among the 10 slowest growth rates of any state in the country, according to new date from the U.S. Bureau of Economic Analysis. The growth rate is unchanged from the first quarter.

Only one Midwestern state, Indiana, had a slower growth rate in the quarter at 1%. Three other states, Illinois, Iowa and Michigan, had growth rates of 1.1%. Nebraska, Kansas, Minnesota and Missouri all topped 2%, led by Nebraska at 2.4%.

Manufacturing, the state’s largest sector by GDP, saw a slowdown from 2.1% to a 0.4% growth rate. The slowdown was primarily driven by durable goods manufacturing, which dipped from 5.9% to 0.6% and contributed 0.07 percentage points to overall growth.

The major contributors to growth included agriculture, accounting for 0.32 percentage points, utilities, a 0.27 point boost, and management of companies, a 0.26 contributor.

State Senate Approves Bill to End Miller Park Sales Tax

The state Senate has approved a bill to end by next summer the sales tax that funded construction of Miller Park. The 0.1 percent sales tax has been in effect in Milwaukee, Ozaukee, Washington, Waukesha and Racine counties since 1996.

Under current law, the tax would end when the stadium district has paid off its bonds and satisfied reserve requirements. The district is expected to reach that point by early 2020. The bill would require the tax end by August 31, 2020.

Any excess collections would go back to the counties for property tax relief, public safety, parks and recreation or economic development.

The Senate passed the bill 33-0 Tuesday. The Assembly passed it in June. It goes to Gov. Tony Evers next to sign.

Wisconsin State Senate Denies Pfaff Nomination as DATCP Secretary

With Gov. Tony Evers seated in the chamber, Wisconsin Republican Senators on Tuesday voted against Brad Pfaff in his confirmation hearing to officially become the secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection. In a vote of 14 to 19, the Senate denied the DATCP secretary-designee after two hours of debate on the floor.

Throughout the hearing, Democrats blasted GOP colleagues saying Pfaff is among the state’s most qualified people to lead the agriculture department and that his only fault was disagreeing with Republican leadership last summer when he spoke up over funding mental health programs that were already approved in the state budget.

“Ag is in his DNA. The agricultural industry shaped his life and shaped his values,” said Sen. Jennifer Schilling. “Brad Pfaff is undeniably qualified for this job.”

Sen. Dave Hansen agreed, saying Pfaff spent his whole adult life helping farmers succeed.

“I think the people in that committee that day tells it all. They know he’s a smart and dedicated public servant for our rural community,” Hansen said. “Our industry is in crisis but it started a long time before Secretary-designee Pfaff took office. There is no evidence that he is disqualified from serving. This is all about our senators trying to score political points.”

But Majority Leader Scott Fitzgerald fired back, saying there has been a number of missteps during Pfaff’s tenure at DATCP to cause some lawmakers to reconsider their support.

“I can continue to make the case that that this person deserves it or this person does not. But there’s a whole slew of things, such as the ATCP 51 policy that people can bring forth as a reason to deny this confirmation,” Fitzgerald said. “You have to be comfortable when confirming appointees… and there are a number of senators who do not feel comfortable.”

Tuesday’s vote means Pfaff is now dismissed from his duties at DATCP headquarters in Madison. Gov. Evers will now need to nominate a new person to lead the department.

United States Formally Pulls Out of Paris Climate Accord

President Trump on Monday began the yearlong process of withdrawing the U.S. from the Paris climate accord. Secretary of State Mike Pompeo announced the move in a statement.

“President Trump made the decision to withdraw from the Paris Agreement because of the unfair economic burden imposed on American workers, businesses, and taxpayers by U.S. pledges made under the Agreement,” Pompeo said. “The United States has reduced all types of emissions, even as we grow our economy and ensure our citizens’ access to affordable energy.”

The landmark 2015 agreement signed by former President Obama requires the U.S. to reduce emissions about 28 percent below 2005 levels by 2025. The agreement allowed the U.S. to begin the process to withdraw on Monday and finalize the U.S. exit from the agreement on November 4, 2020.

 

State and Local Officials Announce Beginning of Open Enrollment for Health Insurance Market

On Friday, state and local officials and stakeholders, announced the launch of open enrollment for the health insurance market. Open enrollment runs from November 1 to December 15 for individuals purchasing health insurance on the individual market.

Wisconsin residents should visit GetCovered.WI.gov to learn about their health insurance options or they can receive free help signing up for health insurance by calling or texting 2-1-1 to get connected with a local enrollment expert.

“There are more insurance options today than in the last few years,” said Insurance Commissioner Afable. “We’re encouraging everyone who has  considered the marketplace in the past to take another look. You might find a better plan to fit your needs with different coverage options or even lower  rates.”

There are also more than 200,000 Wisconsin residents currently insured by high-quality plans through HealthCare.gov. Open enrollment is the opportunity for them to shop around to make sure they are getting the best coverage to meet their needs.

Wisconsin insurance rates for 2020 are 3.2 percent lower on a weighted average than 2019 rates and there are also more options for insurance plans on the individual market than in previous years.

Alliant to Build 1 Gigawatt of Solar Generation in Wisconsin

Alliant Energy announced plans Thursday to build up to 1,000 megawatts of solar power by the end of 2023 as part of a transition to clean energy sources.

That’s nearly 10 times the state’s current solar-generation capacity and would more than double the amount expected to come online within the next couple of years in large-scale solar farms now undergoing the permitting process or under construction.

If built, it would generate enough electricity to meet the annual needs of about 250,000 typical Wisconsin households.

The company did not specify how or where it would develop the solar energy or whether it plans to buy any of the half-dozen large solar farms now being developed in the state.

Alliant, which has pledged to cut 80 percent of its carbon emissions by 2050, said “changing economics, customer sustainability goals and better renewable technology” are driving the commitment to solar energy.

“We’re accelerating our transition to a clean energy future and putting renewable energy to work for our customers,” CEO John Larsen said in a statement. “For more than 100 years, our mission has been to deliver safe, reliable and affordable energy services.”