Month: June 2020

A group of researchers is saying what a lot of people in Wisconsin have stated for weeks: Ending Gov. Tony Evers’ Safer at Home order early did not lead to a spike in coronavirus cases.

The new study titled “Did the Wisconsin Supreme Court Restart a COVID-19 Epidemic?” looks at the numbers from May 3 through May 24 to see if more people were hospitalized because of the virus during that time period. The study was conducted by the National Bureau of Economic Research, a nonpartisan nonprofit organization based in Cambridge, Mass.

Not only did the five researchers working on the study find no spike in coronavirus cases, the team found only a tiny spike in the number of people who changed their behavior once the order was lifted.

The study suggests that as other states grapple with their coronavirus response, or with their response to the next wave, they should study Wisconsin.

“The laboratory provided by Wisconsin is perhaps the best opportunity to-date to credibly study the effects of lifting a [stay at home order],” the team wrote. The conclusion the team comes to is not going to be surprising to many people in Wisconsin.

“We do not find any discernible or substantial increase in COVID-19 cases or acceleration in the growth of cases due to the Wisconsin Legislature v. Palm decision,” the study states. “This is due at least in part to the lack of large change in social distancing behavior, and may also be explained by individuals successfully engaging in avoidance behaviors on other margins (such as maintaining 6 foot distances from others when out in public or wearing masks). These findings cast doubt on the assertion that reopening states by lifting [stay at home orders] will necessarily cause substantial erosion in the containment of the virus.”

On Friday, the Department of Workforce Development (DWD) today announced new resources and tools for individuals to report suspected fraud against the Unemployment Insurance program.

As reported across the nation, fraudsters are targeting state UI systems in the midst of the COVID-19 pandemic through various schemes and identity theft. Since March, Wisconsin’s UI system has flagged an increase in bad actors using stolen personal information from sources outside of the agency, such as from massive external data breaches like the Equifax breach, to apply for benefits and attempt to route payments to their own bank accounts.

DWD announced today additional ways to report this type of imposter fraud, as well as additional tools for claimants who suspect they may be a victim of fraud, including:

• An updated web form to report fraud:
  https://my.unemployment.wisconsin.gov/Apps/Feedback/ReportFraud
• UI Fraud FAQs updated to include specific identity theft questions:
  https://dwd.wisconsin.gov/ui/faqs/fraud.htm#identity

DWD’s UI fraud page now also includes the latest alerts from the United States Department of Labor’s Office of Inspector General: https://dwd.wisconsin.gov/ui/fraud/scams.htm

As of June 8, the DWD identified 3,306 Social Security numbers associated with suspect fraudulent activity. There were 1,825 unsuccessful attempts to access the online portal. DWD’s fraud safeguards have prevented more than $10 million in possible fraudulent overpayments. However, DWD has identified 1,479 suspected fraudulently filed claims and $1.27 million in possible erroneous payments. Investigations are ongoing and will confirm the exact total of erroneously paid benefits. Since March 15, DWD has made $1.8 billion in overall UI payments, including through the federal PUA and FPUC programs.

“DWD’s strong anti-fraud mechanisms and diligent DWD staff are performing very well at safeguarding the UI program for those who are eligible as well as employers,” DWD Secretary Caleb Frostman said. “Sadly, we continue to see bad actors attacking the programs designed to support our state’s most vulnerable. To stay ahead of the fraud perpetrators, we will continue to enhance our ability to fight UI fraud and ask the public to stay vigilant in its efforts to report any suspect activity.”

Treasury Secretary Steven Mnuchin told CNBC on Thursday that shutting down the economy for a second time to combat the spread of Covid-19 isn’t a viable option and could cause even more headaches for Americans.

His comments came as Wall Street grew more concerned about a second wave of coronavirus cases in the United States. Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations while nine California counties are reporting a spike in new cases or hospitalizations of confirmed cases, AP reported Wednesday.

Wisconsin’s latest fiscal report shows another month of multiple millions of dollars in taxes lost. But May’s numbers are not nearly as bad as they could have been.

The Legislative Fiscal Bureau on Wednesday released its latest General Fund tax collection report.

The numbers show Wisconsin was off by $66 million last month, which is much better than the $870 million from April.

“Due to the coronavirus pandemic and its impact on employment and the economy, the May report indicates a continued reduction in collections,” the LFB report states. “May 2020, preliminary tax collections were $1.2 billion, which is $66 million below collections of May 2019.”

That $66 million comes from personal income taxes, corporate income taxes, and sales or use taxes.

The total hit to personal and corporate income taxes won’t be known for a while. Both the state of Wisconsin and the federal government have given taxpayers until July to file their 2019 income taxes.

LFB said the latest tax report, however, does show the impact of Gov. Tony Evers’ Safer at Home Order on spending.

The numbers for May are the latest warning for Wisconsin lawmakers who want to avoid budget cuts or a budget deficit.

LFB added to that warning, saying the state’s general fund balance is likely to dip below its current $1.09 billion. LFB stated in the new report that it won’t know the full extent of of the fiscal impact of the coronavirus until after income taxes are filed in July.

The Department of Workforce Development (DWD) today announced that it has more than 500 Work-Share Program plans with almost 18,000 worker participants in Wisconsin.

Work-Share is designed to help employers retain employees during slow business periods by reducing employees’ hours and allowing affected employees to file for partial Unemployment Insurance benefits (UI) to replace a portion of their reduced pay. Participating workers also keep employer-provided benefits and avoid financial challenges associated with a total loss of employment.

“Wisconsin businesses are encouraged to consider DWD’s Work-Share Program to keep their employees on the job who otherwise would be laid off,” DWD Secretary Caleb Frostman said. “We have almost 18,000 workers participating in Work-Share plans with their employers; this means nearly 18,000 people are still employed, they continue to earn a paycheck, and they keep their employer-sponsored benefits.”

Some employers are bringing employees that were laid off due to COVID-19 back at reduced hours. If the employer has brought staff back at reduced hours, the employer is able to sign up for a Work-Share program.

Under recent changes passed by Governor Tony Evers and the State Legislature, employers interested in creating a Work-Share plan must include a minimum of at least 2 Wisconsin employees. The reduction of hours will be a set percentage of at least 10% but not more than 60% of the normal hours per week of each employee and will remain consistent every week.

Under the CARES Act, once an employer’s plan is approved, the federal government pays for 100% of the unemployment benefits paid through the Work-Share plan through the end of the year. The employer’s future tax rates will not be impacted by Work-Share benefits paid to employees in the program during the effective duration of the CARES Act.

For additional Information on Wisconsin Work-Share please visit: https://dwd.wisconsin.gov/uitax/workshare.htm.

On Monday, Governor Evers named leaders from around the state to the Blue Ribbon Commission on Rural Prosperity.

The governor announced the commission during his State of the State speech in January. The commission will be tasked with developing long-term strategies on how Wisconsin can best support the needs of rural Wisconsinites and rural communities.

The commission members include:

• Bob Atwell, President & CEO, Nicolet National Bank, Green Bay
• Thelma Heidel Baker, Owner Bossie Cow Farm, Random Lake
• Brittany Beyer, Executive Director, Grow North, Rhinelander
• Pamela Boivin, Executive Director and Loan Officer, NiiJii Capital Partners, Inc. (NiiCaP), Keshena
• David Falk, General Manager, ND Paper, Biron
• Tom Landgraf, Principal, Dimension Development, LLC, Madison
• Rachel Sauvola, Agriscience Teacher, New Richmond High School, New Richmond
• Lauren Thompson, Co-President, Wisconsin 4-H Leadership Council, Woodville
• Gina Tomlinson, CEO, Cochrane Co-op Telephone Company, Cochrane
• Susan Townsley, Clinical Social Worker, Stonehouse Counseling, Viroqua
• Jeff Tucker, Vice President of Business Development & Care Innovation, Marshfield Clinic, Eau Claire
• Cheu Vang, Owner, Vang C&C Farms, Jefferson

The commission is expected to hold listening sessions around the state later this summer on the impact of COVID-19 on rural communities and businesses, as well as the challenges and opportunities the pandemic has created. The commission’s recommendations will help to form the biennial state budget, which Gov. Evers will introduce early next year.

The Wisconsin Economic Development Corporation (WEDC) will provide logistical and administrative support to the commission. In his State of the State address this year, Gov. Evers directed WEDC to create the Office of Rural Prosperity, and the organization recently named Kelliann Blazek as the first director of the office.

More information about the commission, its activities, and the Office of Rural Prosperity is available HERE.

Last Friday, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announced the timeline and eligibility requirements of the Wisconsin Farm Support Program, which will provide $50 million in direct aid payments to Wisconsin farmers who have experienced losses  due to COVID-19.

Applications for this funding, administered by the Wisconsin Department of Revenue, will be accepted starting June 15. Individual payments will range from $1,000-$3,500 and will be issued after the application period closes on June 29. Wisconsin farmers with gross income between $35,000 and $5,000,000 in 2019 may be eligible to receive a payment.

Farmers are encouraged to apply as soon as possible on or after June 15 to leave time for resolving any potential issues in their application. Eligible farmers should apply online through the Wisconsin Department of Revenue (DOR): https://revenue.wi.gov. The  application link will be live on June 15. Farmers who cannot apply online may request assistance by calling 608-266-2772. Spanish- and Hmong-speaking farmers should call DOR at 608-266-2772 for assistance.

The U.S. economy added 2.5 million jobs last month as the nation began its recovery from the coronavirus crisis, the feds said Friday.

The nation’s unemployment rate dropped to 13.3 percent thanks to “a limited resumption of economic activity that had been curtailed” because of the pandemic, the Bureau of Labor Statistics said in its monthly jobs report.

That marked an improvement from the record 14.7 percent unemployment seen in April  and defied expectations for the virus-related job losses to worsen. Economists predicted a 19.8 percent unemployment rate and 8 million lost jobs.

Some parts of the country have allowed businesses to reopen that had closed to control the spread of the deadly virus. Other parts of the economy also hinted at recovery in May, with consumer confidence and manufacturing activity both improving.

Wisconsin’s income levels and wages should rebound next year after the coronavirus pandemic crippled the state’s economy, according to a report Gov. Tony Evers’ administration released Tuesday.

The analysis from the state Department of Revenue notes that Wisconsin lost 440,000 jobs in April, more than twice the number of jobs the state lost during the Great Recession.

Personal income levels in the state grew 4% in 2019, but that growth will slow to 0.2% in 2020 and 1.6% in 2021. Real personal income grew 2.7% in 2021 and should decline by 0.5% in 2020 but grow by that amount in 2021. In all, total personal income should recover to pre-pandemic levels by the second quarter of 2021.

Wage income, meanwhile, grew 3.2% in Wisconsin last year. It’s projected to decrease 9% this year but after bottoming out in the third quarter should post annual growth rates of 7% next year.

Private employment will post a decline of 16.1% this year and 4.4% growth in 2021. The manufacturing sector is expected to shed 114,000 jobs during the second and third quarters this year but should start adding jobs by the end of the year.

A debate in Congress over whether to extend $600 a week in federally provided benefits to the unemployed looks sure to intensify with the number of people receiving the aid now topping 30 million — one in five workers.

Democrats have proposed keeping the $600-a-week payments through January in a $3 trillion relief package that the House approved this month along party lines. Senate Republicans oppose that measure. They have expressed concern that the federal payments — which come on top of whatever unemployment aid a state provides — would discourage laid-off people from returning to jobs that pay less than their combined state and federal unemployment aid now does.

Sen. Rob Portman, R-Ohio, and Rep. Kevin Brady, R-Texas, are promoting a plan that would provide $450 a week for laid-off workers who return to their jobs, as a “back to work” bonus. This payment would also expire by July 31, though.

Larry Kudlow, the top White House economic adviser, said earlier this week that the proposal is “something we’re looking at very carefully.”

Separately, Rep. Don Beyer, D-Va., vice chair of the Joint Economic Committee, has proposed reducing the $600 benefit to $300 in stages by the end of the year. This plan, Beyer suggested in an interview, would sharply reduce the number of people who are receiving more money from jobless aid than they would from working.

“If you solve that problem, there’s a good chance of extending unemployment,” Beyer said.