News of the Day

Federal dollars remained the second-largest source of states’ revenue in fiscal 2017, accounting for about $639 billion, or about a third of the $1.97 trillion collected by state governments. Tax collections are states’ leading revenue generator and reached $943 billion in fiscal 2017, or nearly half of state revenue.

According to new research from The Pew Charitable Trusts, 26.3% of the state’s budget came from federal dollars, ranking Wisconsin 45th among states in its ability to harness dollars from Uncle Sam.

Wisconsin has consistently ranked in the bottom half of states with regard to the share of federal dollars it receives, due in part to its middle ranking in household income compared to other states. The amount of federal spending in a given state depends on several factors, including demography, industry mix and presence of major universities.

Treasury Secretary Steven Mnuchin expressed optimism Monday that the U.S. and China have a workable first-phase agreement that addresses some key elements of the trade war between the two nations.

“We made substantial progress last week in the negotiations,” Mnuchin said during an interview with CNBC’s “Squawk Box.” “We have a fundamental agreement that is subject to documentation.”

Governor Tony Evers and the Wisconsin Office of the Commissioner of Insurance announced today that many Wisconsin consumers will have more options for health insurance on the individual market in 2020.

“Every Wisconsinite should have access to affordable health insurance coverage that fits their needs,” said Gov. Evers. “Now, more than ever, Wisconsinites will have the chance to find the right plan for them, including those plans available on Healthcare.gov. Open enrollment starts on November 1. Now is the perfect time for folks to look at what coverage they have and make sure it is the best fit for them.”

In 2020, 61 counties will be served by three or more insurers compared to only 46 counties with three or more insurers in 2018. Counties that saw an expansion of insurers include:

• Ashland, Chippewa, Langlade, Lincoln, Marathon, Oneida, and Portage counties, which went from two insurers to three insurers;
• Jefferson, Green Lake, Sheboygan, Walworth, Waupaca, and Waushara counties, which went from three to four insurers;
• Calumet, Fond Du Lac, Kenosha, Milwaukee, and Racine counties, which went from four to five insurers;
• Kewaunee, Manitowoc, and Winnebago counties, which went from three to five insurers;
• Dodge, Door, and Oconto counties, which went from four to six insurers; and
• Brown County, which went from five to six insurers.

An interactive map of health insurers available by county can be found here.

Many Wisconsinites will also benefit from lower rates in 2020. Rates on the individual market, which include plans available on Healthcare.gov, will be 3.2 percent lower in 2020 on a weighted average than rates in 2019. The Wisconsin Healthcare Stability Plan (WIHSP), which Gov. Evers fully funded in his 2019-2021 state biennial budget, has helped stabilize the health insurance marketplace in Wisconsin, leading to more options for consumers and lower rates.

From improving human nutrition to assuring clean water to growing the farm economy while caring for animals, the Dairy Innovation Hub will harness the intellectual and creative power of three University of Wisconsin institutions to address the most complex challenges facing the state’s dairy industry.

The Legislature allocated $8.8 million for the Dairy Hub in the 2019-21 budget to UW-Madison, UWPlatteville, and UW-River Falls. Last week, the legislature’s Joint Finance Committee released the funding, $1 million this fiscal year and $7.8 million allocated for 2020-21.

The vision for the Dairy Innovation Hub was originally crafted by industry partners following the 2017 UW System Dairy Summit and was supported as a top priority by members of the state’s Dairy Task Force 2.0.

The Hub will enable the expansion of research efforts in four focus areas:

• Stewarding land and water resources
• Enriching human health and nutrition
• Ensuring animal health and welfare
• Growing farm businesses and communities

 A study published Monday in the medical journal JAMA finds that up to a quarter of all United States health care spending is wasteful.

Researchers found that $760 billion to $935 billion health care dollars are wasted every year.

The study cited multiple reasons for the wasteful spending. The biggest driver was administrative issues related to billing and coding. That represented 28% to 35% of total waste.

The second greatest contributor was what authors called “pricing failure.” This was described as waste related to the price of drugs and services “because of the absence of effective transparency and competitive markets.”

Other factors are over-treatment, unnecessary hospital visits, and lack of preventative care.

The U.S. spends more on health care per capita than any other developed nation.

The latest survey by a panel of 51 forecasters with the National Association for Business Economics shows they expect growth, as measured by the gross domestic product, to slow to 2.3% this year from 2.9% in 2018. The new forecast marks a downgrade from the 2.6% estimate for 2019 economic growth that the NABE panel had made in June.

For 2020, the forecasters expect GDP growth to fall to 1.8%. They see little likelihood of a recession over the next 12 months but expect the risk to increase by late next year.

The forecasters estimate just a 7% likelihood of a recession starting this year, a 24% likelihood by mid-2020 and 47% by the end of 2020. They foresee a 69% chance of a recession beginning by mid-2021.

The economy is in its 11th year of expansion, the longest on record in the United States. To help avoid a recession, the Federal Reserve has cut its benchmark interest rate twice this year.

Among the NABE panelists, about half foresee no further rate cuts this year; 43% envision at least one further cut. By the end of 2020, 69% expect the Fed to have cut its benchmark rate from where it is now.

Yesterday, at the 2019 WEDA Fall Conference, Department of Revenue Secretary-designee Peter Barca announced the formation of a new unit in the Wisconsin Department of Revenue.

The Business Development and Government Relations (BDGR) Unit will be part of the Department’s Research & Policy Division and serve as a bridge between the department, other state agencies and small businesses.

The BDGR unit will work with businesses to find what they need to:

 Start or expand

 Recruit and retain employees

 Analyze economic data

 Identify tax incentives

“We want to keep Wisconsin’s economy growing in all 72 counties,” said Governor Tony Evers. “BDGR will help new and growing businesses connect the dots between government agencies and identify resources and information they need to grow and thrive.”

“The Department of Revenue is uniquely positioned to assist Wisconsin businesses,” notes Department of Revenue Secretary Peter Barca. “We have contact with all businesses in the state through tax policy and administration. BDGR can connect businesses to resources and provide an ear for policy suggestions.”

When enforcement of the REAL ID Act begins October 1, 2020, the regular Wisconsin driver license or ID will no longer be accepted identification for domestic air travel or to enter a federal building or military base. On October 1, 2020, travelers will need to present a REAL ID-compliant driver license or state ID card or another acceptable form of identification (such as a passport).

“Since a driver license or ID is the most convenient form of identification, Wisconsin DMV encourages travelers to prepare their paperwork then visit a DMV before the October 1, 2020 deadline,” Wisconsin Division of Motor Vehicles (DMV) Administrator Kristina Boardman said. “Our customers are encouraged to visit the DMV sooner rather than later. Delay could mean longer lines at the DMV and travelers without a REAL ID will be denied boarding their plane.”

What documents are required to get a REAL ID? What documents are required to get a REAL ID?

To obtain a REAL ID-compliant driver license or ID card, individuals must visit a Wisconsin DMV and bring the following original documents or a certified copy (not a photocopy, fax or scan):

• Proof of Name and Date of Birth
• Proof of Legal Presence in the U.S.
• Proof of Identity
• Proof of Name Change (if applicable)
• Proof of Social Security Number
• Proof of Address

For a complete list of acceptable documents, visit wisconsindmv.gov/REALID.

DMV’s interactive Driver Licensing Guide will help customers develop a personalized checklist of the required documents needed to bring to the DMV. It also allows customers to pre-fill any required application(s), print and bring the forms or submit them electronically (if eligible), and print a checklist of required documents to bring.

A federal appeals court on Tuesday issued a mixed ruling on the Federal Communications Commission repeal of Obama-era net neutrality rules. The court upheld the FCC’s repeal of the rules, but struck down a key provision that blocked states from passing their own net neutrality protections.

FCC Chairman Ajit Pai applauded the decision as not only a win for the agency but also a “victory for consumers, broadband deployment, and the free and open Internet.” He said the court not only upheld its repeal of the rules, but it also upheld the agency’s so-called “transparency rule,” which requires broadband providers to disclose when they’re making any changes to their service.

The decision is the latest chapter in the decade-long fight to protect the internet from excessive control by big broadband companies and how the internet should be regulated.

The court largely agreed with the Republican-led FCC that the agency had the discretion to decide how to classify broadband. The Obama-era rules had reclassified broadband as a so-called common carrier service, which treated broadband like a public utility, subject to many of the same regulations as traditional phone service.  The 2017 repeal reinstated the less regulated classification of broadband, providing what Chairman Pai and other Republicans have called a “light touch” regulatory approach.

“Regulation of broadband internet has been the subject of protracted litigation, with broadband providers subjected to and then released from common-carrier regulation over the previous decade,” the DC Circuit said in its opinion. “We decline to yet again flick the on-off switch of common-carrier regulation under these circumstances.”

As Wisconsin’s Workforce Development Month comes to a close, the DWD secretary was in Eau Claire to tout keeping local talent, local.

All month, Secretary Caleb Frostman has been traveling the state, talking with private employers and learning their strategies for recruiting workers.

He said with a shortage of workers in the state, DWD officials are trying to compile some of the best strategies employed by Wisconsin companies.

“I think the folks we’ve seen successful have been creative, have thought outside the box. They’ve been inclusive. There’s some folks that haven’t been in the workforce before but they’ve been very aggressive, so they’re unsolicitedly sending messages on LinkedIn,” Frostman said.

Frostman said he plans to have a roundtable discussion with other leaders to share the information gathered from different businesses.