Month: August 2023

The Labor Department said Friday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 0.3% in July from the previous month. On an annual basis, prices are up 0.8%. It marked the first increase in wholesale inflation since June 2022.

Excluding the more volatile measurements of food and energy, so-called core inflation rose 0.3% for the month – a reversal from the 0.1% decline in June. The figure was up 2.4% on a 12-month basis.

And the services index climbed 0.5%, the biggest jump since August 2022, the Labor Department said in the report. About 40% of the increase can be traced to a 7.6% rise in prices for portfolio management, according to the report. The cost for machinery and vehicle wholesaling; outpatient care; chemicals and allied products wholesaling; securities brokerage, dealing and investment advice and transportation of passengers also moved higher.

Inflation ticked higher in July, snapping a year-long streak of steady declines in prices as consumers continued to grapple with the rising cost of everyday goods.

The Labor Department said Thursday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.2% in July from the previous month, in line with estimates.  Prices climbed 3.2% from the same time last year, up from 3% in June.

Other parts of the report also pointed to a slower retreat for inflation. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.2%, or 4.7% annually. However, core prices remain well above the Federal Reserve’s 2% target for inflation.

Food prices, a visceral reminder of inflation for many Americans, also inched higher in July. Grocery costs rose 0.3% last month and are up 3.6% compared with the same time last year.

Yesterday, Governor Tony Evers called a September 20, 2023 special session of the Legislature to take up a $1 billion workforce development package, including $365 million to support child care providers.

Appearing at a news conference in Milwaukee, Evers said the plan would use a piece of the state’s projected $4 billion surplus in this biennium after he vetoed the bulk of a GOP income tax reduction in the 2023-25 budget. The plan includes a paid family and medical leave program for private employers, as well as a new investment in higher education.

It is the 13th special session that Governor Evers has called. While he has the power to call a special session, he cannot force the GOP-controlled Legislature to act.

GOP leaders, though, were quick to dismiss Evers’ call, adding their priority for the state’s projected surplus is a tax cut.

Assembly Speaker Robin Vos, R-Rochester, said the Governor’s move was a “stunt” and the proposal “nothing more than a rehash of Tony Evers’ tax and spend budget.” Senate Majority Leader Devin LeMahieu, R-Oostburg, said Senate Republicans want to address the state’s workforce shortage without growing government.

A group of southeastern Wisconsin landlords wants to suspend several administrative codes that govern how they interact with tenants. In a brief filed recently in Waukesha County Circuit Court, the landlords argue the Department of Agriculture, Trade and Consumer Protection codes are unconstitutionally vague, while another related to voiding rental contracts exceeds the state agency’s authority.

The plaintiffs include five landlords and one prospective landlord that manage properties in the Waukesha and Milwaukee areas. DATCP and the state Department of Justice are listed as defendants.

Kareem Bearden, a commercial truck driver who owns two rental units in Milwaukee, says the codes are confusing and make it difficult to act as an effective property manager. In a recent interview, he noted all the rental income from the duplex goes toward his elderly mother’s medical expenses.

“Personally, I’m just trying to make sure I’m still able to, you know, feed and take care of my family, my mother and everything,” he said. “And I don’t want to risk the chance of … doing anything unlawful.”

He and the other plaintiffs are seeking a temporary injunction of certain DATCP regulations as the case proceeds. These are related to landlords’ ability to withhold money from a security deposit, how security deposit withholding statements are organized, and when and for how long landlords are allowed to enter a tenant’s dwelling, according to the brief. Plus, the brief argues the agency has no authority to render rental contracts “void and unenforceable” under a separate code.

One section points to a DATCP code that bars landlords from withholding part of a renter’s security deposit to pay for “normal wear and tear” or other damages or losses “for which the tenant cannot reasonably be held responsible” under applicable law. It argues the way the code is worded is “impermissibly vague,” making it difficult for landlords to know what they’re allowed to withhold.

Ryan Walsh, an attorney in the Madison office of law firm Eimer Stahl LLP, is one of the lawyers representing the plaintiffs.  “The problem here is, these aren’t just civil regulations,” he said in an interview. “These are regulations that come with criminal penalties.”

He explained most criminal laws include a “mental state” requirement, such that someone can’t be found liable unless he or she intended to do something wrong, or was reckless or otherwise considered blameworthy. In contrast, these DATCP regulations “have no mental state requirement whatsoever,” meaning the crimes they cover are “what we call strict liability crimes,” he said.

According to Walsh, even with the “best lawyer in the world” advising on how to handle a particular tenant situation, the state could later decide actions taken by the landlord weren’t necessary.

“They can now charge you with a crime punishable [by] up to a year in jail,” he said. “That means, under the constitution, under the due process clause, if they want to use that authority, they have to be extremely specific about what you have to do and what you must not do.”

The brief argues the DATCP codes don’t meet that standard. If successful, the lawsuit would ultimately result in a permanent injunction, Walsh said.

A hearing on the motion for temporary injunction is scheduled for September 25, Walsh said.

Governor Tony Evers vetoed several bills Friday that would have prevented Wisconsin communities from barring the use of vehicles or appliances powered by fossil fuels.

Two bills sought to prevent Wisconsin’s state and local governments from passing mandates that aim to shift away from vehicles or stoves that run on gas in favor of those powered by electricity. Another proposal sought to prevent communities from requiring specific sources of energy.

Republican lawmakers and supporters have said the proposals aimed to protect consumer choice. In his veto message, Evers said signing the bills would diminish the state’s ability to combat climate change by shifting to new technology. “Further, I also object to the Legislature’s continued efforts to preempt local control and undermine trust in local governments across our state,” Evers wrote. “The state should be a partner in —  not an obstacle to — addressing the unique challenges facing our local communities.”

Republican lawmakers have said they wanted to stop Wisconsin from following at least seven states, including California, that plan to ban gas-powered vehicles. States like New York have also sought to ban natural gas stoves and furnaces.

Wisconsin hasn’t proposed any such ban. However, Evers’ clean energy plan does call for incentives to buy electric appliances and it supports expansion of the state’s electric vehicle infrastructure. Evers has also set a goal for the state to use carbon-free electricity by 2050.

Around two dozen states have passed legislation to prevent local government bans on natural gas in buildings, according to E&E News.

Brendan Conway is a spokesperson for Milwaukee-based WEC Energy Group, which owns two of the state’s largest utilities. He said they’re disappointed with the governor’s veto.

“The bill would have prevented a patchwork of rules and regulations,” Conway said in a statement. “It also would have ensured customers could make their own energy choices whether they want to put solar panels on their roofs or use a gas stove to make dinner.”

State officials are now developing an implementation plan for more than $1 billion in federal dollars coming to Wisconsin through the Broadband Equity, Access, and Deployment Program.

During a meeting of the Governor’s Task Force on Broadband Access, Broadband Expansion Manager Rory Tikalsky yesterday provided an update on BEAD planning efforts in Wisconsin. His position is part of the Public Service Commission’s Wisconsin Broadband Office.

He explained planning efforts have pivoted from outreach and gathering feedback to writing a plan for “figuring out how to actually make this happen” in the next several years.

Wisconsin is set to receive about $1.06 billion in federal funding through the BEAD program, a $42.45 billion national effort established through the Infrastructure Investment and Jobs Act.

“We’re sprinting toward the finish of our BEAD five-year plan,” Tikalsky said. “That’s going to be due Aug. 28, but realistically we’ve got to finalize our content in the next week or two here, then polish and improve and everything else.”

Much of that plan will align with the task force’s third annual report, which was released early last month, Tikalsky noted.

Going into this fall, state officials will be developing an initial proposal for the program, which will include a comprehensive map of locations that will receive funding as well as scoring criteria, details on the allocation process and more. That proposal is due Dec. 27.

After a spring “state challenge process” focused on the eligibility map for funding allocations, Tikalsky said “by next spring, next summer, we’re going to start opening grant rounds, awarding grants — really trying to find a way to push money out the door and start construction.”

American Transmission Company, ITC Midwest and Dairyland Power Cooperative are building the 345-kilovolt Cardinal-Hickory Creek transmission line that runs more than 100 miles from Dane County to Dubuque County in Iowa.

The project’s co-owners told the Wisconsin Public Service Commission in a filing on Friday that they expect the cost to build the $492 million power line to grow by $89.8 million or 18 percent beyond the initial price tag.

Alissa Braatz, an ATC spokesperson for the project’s co-owners, said in a statement that it’s critical for them to be wise with rising costs on behalf of their energy consumers, investors and owners. “And we commit to managing escalating costs to the greatest extent possible,” Braatz said.

In the filing, the utilities highlighted “inflationary cost increases” in the cost of construction materials, labor and land acquisition since project estimates were developed in 2018. The Public Service Commission approved the project the following summer.

According to the filing, the price of steel for ATC and ITC Midwest increased on average roughly 112 percent for steel poles. In addition, the cost of aluminum and steel for conductor wires rose an average of about 59 percent. Labor costs for ATC also went up around 12 percent while ITC Midwest saw an increase of roughly 32 percent from 2018. Land acquisition costs also increased 95 percent in Dane and Iowa counties due largely to increasing land values.

Meghan Sovey, a spokesperson for the commission, said in an email that PSC continues to monitor the project’s progress and costs. Sovey added the commission has authority “if and when appropriate” to reopen the project’s proceedings or take other action.

As the construction of the line nears completion, Braatz said the project’s co-owners are working with the U.S. Fish and Wildlife Service as it weighs the utilities’ proposal for a land exchange. The line’s owners are also coordinating with the Rural Utilities Services as the agency completes a supplemental environmental assessment on what utilities referred to as minor route changes. They hope the project will secure the necessary approvals to place the line in service by December.

Fitch announced Tuesday it has officially downgraded the United States’ long-term foreign-currency issuer default rating to “AA+” from “AAA,” saying the downgrade “reflects the expected fiscal deterioration” and the nation’s heavy debt burden.

The ratings agency pointed the America’s “erosion of governance,” rising deficits, and tightening by the Federal Reserve. It also said its expects the U.S. economy to slip into a mild recession in the fourth quarter.

Investors use credit ratings to assess the risk profile of companies and governments when they raise financing in the debt capital markets. Generally, the lower a borrower’s rating, the higher its financing costs.

The agency also said it expects the US federal deficit to grow from 3.7% of GDP in 2022, to 6.3% of GDP in 2023.

Wisconsin companies will pay 8.4% less in worker’s compensation insurance rates starting Oct. 1, 2023, benefiting businesses around the state, the Wisconsin Department of Workforce Development reported. The latest reduction in premiums is expected to save Wisconsin employers some $148 million on policies starting on or after October 1, 2023.

The lower rates reflect Wisconsin employers’ attention to workplace safety for the benefit of workers and employers alike. Moreover, it’s a way for Wisconsin companies to stand out as they seek to attract and retain staff during a time of near-record low unemployment. The 2023 rate decrease, approved by the Wisconsin Office of the Commissioner of Insurance, marks the eighth year in a row worker’s compensation insurance premiums have declined in Wisconsin. The actual rates that inform premium amounts vary by employers based on factors such as injury risk exposure.

Worker’s compensation insurance rates are adjusted annually by a committee of actuaries from members of the Wisconsin Compensation Rating Bureau. This independent body examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and approved by the Wisconsin Commissioner of Insurance. While the overall rate level will decrease by 8.4%, the impact to policyholders will vary based on specific circumstances.

“The continued decreases in worker’s compensation rates reflect the workplace safety practices that support a strong workforce in our state,” said Insurance Commissioner Nathan Houdek. “Employers doing business in Wisconsin can count on our competitive insurance marketplace for affordable, high-quality coverage for their business and employees.”

DWD’s Worker’s Compensation (WC) Division administers the state’s WC program through a collaboration with WCRB, OCI, Self-Insurers Council and the Worker’s Compensation Advisory Council, which is composed of representatives from management and labor and recommends WC law changes. Most employers in Wisconsin are legally required to have Worker’s Compensation insurance policies.