News of the Day

U.S. Budget Deficit Hits All-Time High of $864 billion

The Treasury Department reported Monday that the deficit hit $864 billion last month, an amount of red ink that surpasses most annual deficits in the nation’s history and is above the previous monthly deficit record of $738 billion in April.

For the first nine months of this budget year, which began Oct. 1, the deficit totals $2.74 trillion, also a record for that period. That puts the country well on the way to hitting the $3.7 trillion deficit for the whole year that has been forecast by the Congressional Budget Office.

The June deficit was driven higher by spending on various government relief programs such as an extra $600 per week in expanded unemployment benefits and a Paycheck Protection Program that provided support to businesses to keep workers on their payrolls.

Another reason for the surge in the June deficit was the government’s decision to delay tax payments this year until July 15. That decision mean that quarterly payments made by individual taxpayers and corporations will not be due until July 15 this year rather than June.

So far this budget year, revenues total $2.26 trillion, down 13.4% from the same period last year, while spending totals $5 trillion, up 49.1% from a year ago.

Wisconsin Supreme Court Strikes Down Three of Governor Evers’ Budget Vetoes

The Wisconsin Supreme Court Friday acted Friday to rein in Gov. Tony Evers’ expansive veto authority by overturning three budget vetoes the Democrat issued in his first two-year spending plan as governor.

Of the four vetoes targeted in the lawsuit, the single one upheld increased vehicle fees for owners of heavier trucks over those with lighter ones.

Meanwhile, justices determined a veto that broadened what was proposed as a $3 million grant program to replace school buses with energy-efficient models was unconstitutional (5-2 decision). Evers removed the condition that the funding be used only for buses and instructed the Department of Administration to allocate up to $10 million for electric vehicle charging stations.

The other partial vetoes that were overturned altered the definition of “vapor product,” thus creating new taxes and regulations on them (4-3 decision); and lifted restrictions on how $75 million in transportation funding could be spent (5-2 decision).

Previous governors have used their veto authority in a manner similar to Evers.

Wisconsin governors hold the country’s most powerful partial veto authority on spending measures, but aren’t able to use the veto pen to create new words by striking out individual letters, and they can’t craft new sentences by combining parts of two or more lines in legislation. Both limitations were imposed after voters approved previous constitutional amendments to limit governors’ authority in that arena.

Wisconsin Utilities to Refund $28.3M in Fuel Savings to Customers,

Nearly 1.2 million Wisconsin ratepayers will see electric bill refunds this fall as utilities return millions of dollars in fuel cost savings.

The Public Service Commission Thursday ordered Alliant Energy, Xcel and Wisconsin Public Service Corporation to return about $28.3 million to customers in September.

Madison Gas and Electric will be allowed to hang on to about $1.5 million in customer funds while it negotiates with customer advocates on rates for the next two years.

The for-profit utilities together over-collected more than $29 million in 2019 as lower natural gas prices, renegotiated contracts and market sales resulted in fuel costs that were lower than forecast.

The PSC sets electricity rates one to two years in advance based on fixed expenses — such as power plants and wires — as well as the estimated cost of fuel.

Under state law, actual fuel costs can vary up to 2% from the estimates: if actual costs fall below the threshold, utilities must refund the difference, plus interest; if actual costs go above, utilities can collect it from ratepayers.

GOP Lawmakers Propose Loan Program for those Facing Unemployment Check Delays

Wisconsin Assembly Republicans proposed a new state loan program on Wednesday to support some of the roughly 140,000 people in the state waiting to receive delayed unemployment checks.

Under the GOP plan, the Evers administration would use $40 million in funding from the federal COVID-19 relief package passed in March, of which the state has about $280 million remaining, to offer zero-interest bridge loans to people awaiting benefit checks. The program could be administered by the state Department of Revenue, Republicans said.

According to a memo from the Legislature’s nonpartisan budget office, $40 million could provide about 31,000 people a $1,308 loan, which equals four weeks of the average state unemployment benefit. The average weekly benefit was $327 in March 2020, the memo said.

The Republicans called on the governor’s administration to roll out the program immediately, saying legislation is not required to establish it.

Education Secretary Betsy DeVos Wants Schools Fully Reopenedejects part-time reopening for

Education Secretary Betsy DeVos on Tuesday assailed plans by some local districts to offer in-person instruction only a few days a week and said schools must be “fully operational” even amid the coronavirus pandemic.

Anything less, she says, would fail students and taxpayers.

DeVos made the comments during a call with governors as the Trump administration launched an all-out effort to get schools and colleges to reopen. Audio of the call was obtained by The Associated Press.

“Ultimately, it’s not a matter of if schools need to open, it’s a matter of how. School must reopen, they must be fully operational. And how that happens is best left to education and community leaders,” DeVos told governors.

With Prices Stabilizing, State Ends ‘Abnormal Economic Disruption’ Period

Effective July 3, 2020, Governor Tony Evers approved ending the declared period of abnormal economic disruption, allowing sellers to resume sale of consumer goods and services without the restrictions outlined in Wisconsin’s price gouging statutes.

In March, Governor Evers issued Executive Order #72. This order announced a public health emergency due to COVID-19 and declared a period of abnormal economic disruption, directing the Department of Agriculture, Trade and Consumer Protection (DATCP) to enforce prohibitions against price gouging for consumer goods and services.

The end of the abnormal economic disruption declaration means that future price changes will not be subject to price increase prohibitions described in state law. Complaints about prices that existed before the end of the emergency declaration will continue to be investigated, even if those complaints are filed after the declaration has ended.

Wisconsin Businesses Oppose Release of COVID-19 Data

As coronavirus cases in Wisconsin have spiked in recent days, some businesses worry the state’s health department could release the names of establishments that have had employees test positive for the virus.

Manufacturing, restaurant and grocers associations sounded the alarm this week, emailing members and composing response letters. Though a spokeswoman for the state’s top health officials says there are no immediate plans to publicize such a list on its website, the information could still come out through pending records requests.

The associations argue that, rather than boosting transparency, releasing such information publicly would confuse and scare people while stigmatizing businesses that have already suffered because of the pandemic.

Reached Thursday afternoon, Elizabeth Goodsitt, a spokesperson for the Wisconsin Department of Health Services, gave a qualified answer.

“We have no immediate plans to list businesses with COVID-19 positives on our website,” she said. “However, we are always striving to give Wisconsinites and their communities the information they need to protect themselves from COVID-19.”

Goodsitt said the state has received hundreds of records requests regarding businesses, and that their records custodians and legal team are working through “hundreds of thousands” of documents to redact private or protected information.

Record Jobs Gain of 4.8 million in June Smashes Expectations

Nonfarm payrolls jumped by 4.8 million in June and the unemployment rate fell to 11.1% as the U.S. continued its reopening from the coronavirus pandemic, the Labor Department said Thursday.

Economists surveyed by Dow Jones had been expecting a 2.9 million increase and a jobless rate of 12.4%. The report was released a day earlier than usual due to the July Fourth U.S. holiday.

The jobs growth marked a big leap from the 2.7 million in May, which was revised up by 190,000. The June total is easily the largest single-month gain in U.S. history.

The numbers capture the move by all 50 states to get activity moving again after the virus seized up much of the U.S., particularly service-related industries.

Wall Street reacted positively to the report, with futures indicating a more than 400-point gain at the open.

WEDC Report Assesses Economic Impact of COVID-19 Pandemic, Outlines Recovery Priorities

A report from the Wisconsin Economic Development Corporation (WEDC) assesses the complex ongoing economic impact of the COVID-19 pandemic on Wisconsin and identifies priorities for the state’s recovery efforts.

The 150-page report, “Wisconsin Tomorrow – An Economy for All,” was submitted to lawmakers and Governor Tony Evers on Tuesday. The state’s COVID-19 relief legislation, 2019 Act 185, directed WEDC to submit a plan by June 30 “for providing support to the major industries in this state that have been adversely affected by the COVID-19 public health emergency, including tourism, manufacturing, agriculture, forest products, construction, retail and services.”

In light of the evolving nature of the pandemic and its still-unfolding impact on the state’s economy, the report calls for the state to focus on three priorities:

  • Get Everyone Back to Work: The report notes that COVID-19 has transformed Wisconsin’s workforce. Many service-sector jobs, particularly in retail and restaurants, have been eliminated and are not likely to return. It will be crucial to reskill and train people who lost their jobs. The pandemic has reinforced access to high-quality childcare, early childhood education and health care as essential to the economy.
  • Fix Broadband: The pandemic has highlighted the digital divide in our state. Education, e-commerce, remote working and even contact with government depend on access to computers and high-speed internet.
  • Support Innovation: Innovation fuels job growth, as well as flexibility and resiliency in our businesses. In a time of constrained resources and risk aversion, Wisconsin has the chance to use its innovative, entrepreneurial spirit to launch its recovery.

The report can be found online at: wedc.org/wisconsin-tomorrow.

Legislative Leaders Signal Wisconsin will Maintain County Response to COVID-19

State Senate Majority Leader Scott Fitzgerald, R-Juneau, one of the Republicans behind the Safer at Home lawsuit, said in a statement he does not support shutting down businesses again or mandating mask wearing as has been done in other states.

“It’s clear from the actions of Milwaukee and Madison that the responses will be regional,” Fitzgerald said. “Bars and restaurants should follow the safe practices put forward by the WEDC to ensure that they can maintain proper social distancing.”

The Speaker of the Assembly also indicated he was not interested in another statewide order.

“People should continue to follow the CDC guidelines and to take prudent precautions,” Speaker Robin Vos, R-Rochester, said in a statement to News 3 Now. “We continue monitor regional hospitalization rates which indicate hospital resources are in good shape to handle cases of the virus.”