News of the Day

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.

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.

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.

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.

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.

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.