Brian Dake

Budget Committee Approves Plan to Address Unemployment Upgrade and Protect Businesses from COVID-19 Lawsuits

The Legislature’s budget committee unanimously approved a plan Wednesday to overhaul the state’s unemployment insurance computer system and protect businesses from coronavirus-related lawsuits. The plan that advanced Wednesday would also briefly suspend a requirement that those thrown out of work wait a week before qualifying for unemployment benefits.

Whether the plan can get approval from Evers remains unclear, but the bipartisan support for it Wednesday suggests he may be on board. Evers spokesman Britt Cudaback would not say whether the governor supported the Republican proposal.

The Joint Finance Committee approved the bill 15-0 on Wednesday. That allows the bill to go to the Senate and Assembly, which could vote on it soon.

Governor Evers Unveils $91B ‘Bounceback’ State Budget Plan

Promising to help Wisconsin “bounce back” from the COVID-19 pandemic, Gov. Tony Evers proposed a $91 billion state budget Tuesday, an ambitious plan that would boost overall spending by almost 10 percent, infuse hundreds of millions of dollars in Wisconsin schools and reinstate some of the union bargaining rights lost by public sector workers a decade ago.

The two-year budget, which would lay the foundation for Evers’ reelection should he seek a second term, includes a wide array of policies many Republicans who run the Legislature are likely to resist — from the legalization of recreational marijuana to the expansion of Medicaid.

The governor would pay for the spending increases in a number of ways, including limiting a tax credit for some manufacturers and increasing capital gains taxes on high-income individuals. Overall, the Evers administration said the budget would increase revenue by $1.6 billion. At the same time, taxes would be cut elsewhere by about $590 million for groups that include caregivers, parents and low-income residents.

Wisconsin, we aren’t going to retrace our steps back to the way things were,” Evers said during his Tuesday evening address. “We aren’t going to follow the map back to where we started when this pandemic began. After all we’ve been through, we aren’t going to apologize for wanting more for each other — for our neighbors, for our kids, our parents and grandparents, and our state’s future.”

Evers’ proposals need the approval of the Republican-controlled state Legislature to become law. During the last budget cycle — Evers’ first as governor — GOP lawmakers rejected major pieces of the governor’s proposal as too expensive and started from scratch with their own plan.

At the same time, there are provisions in the governor’s budget proposal this year that could be more difficult for Republicans to reject, from a $200 million investment in broadband to a $200 million fund aimed at helping businesses recover from the pandemic.

Wisconsin Legislature to Vote on Half-Billion Dollar Tax Cut

The Wisconsin Legislature was scheduled to vote Tuesday on approving a half-billion dollar tax cut for businesses that received loans to help them keep employees on the payroll during the pandemic, one of several measures related to the coronavirus that are slated for consideration.

The bill cutting business taxes by $540 million by the middle of 2023 was up for a vote in both the Senate and Assembly. If passed, it would then go to Democratic Gov. Tony Evers who was non-committal last week about whether he would sign or veto the measure.

The bill would benefit recipients of loans administered through the federal government’s Paycheck Protection Program. The loans are already tax deductible under federal law and Republicans say they are simply trying to bring state tax code into compliance. But Democratic opponents said the move would blow a hole in the state budget.

The Senate was voting Tuesday on a myriad of virus-related bills, including ones to bar employers from mandating vaccinations for workers, not allow prisoners to get priority for vaccinations and prohibit the closing of churches during the pandemic.

Governor Evers Proposes Allowing Local Governments to Raise Taxes

Governor Tony Evers wants to allow counties to be able to double their existing sales tax and allow larger municipalities to impose a new half-cent sales tax, if local voters approve.

The proposal announced Friday drew widespread support from local governments that would benefit from the additional money, which they said would lessen their reliance on property taxes. But the idea divided the state’s business community, with the statewide chamber of commerce opposing it but Milwaukee economic development groups backing it.

Evers said state budget plan will include the tax increase option for those local governments, which could generate additional money that he said could be put toward local roads, services, maintenance, public safety and public health.

Evers’ proposal would require approval of a referendum in the affected county or municipality before the local sales tax could be increased. Evers said by doing that, those who live in the area and would be affected by higher taxes could decide if they want to impose it on themselves.

Current law allows counties to impose a half-cent sales tax. Evers’ plan would allow them to double that. All but four of the state’s 72 counties currently impose the tax. Under the plan, municipalities with 30,000 or more residents could impose a half-cent sales tax for the first time. That would apply to more than two dozen cities across the state, including Milwaukee, Madison, Green Bay, Kenosha, Racine, Appleton, Eau Claire, Oshkosh, Janesville, La Crosse, Wausau and Beloit.

The state sales tax rate is 5%.

New Emergency Rule Waives Work Search Requirement for Unemployment Benefits

Yesterday, the Department of Workforce Development (DWD) published a new Emergency Rule that will allow DWD to continue to waive work searches for people who apply for Unemployment Insurance benefits.

State law requires someone applying for unemployment benefits to look for a suitable job and provide information about four work search actions they have taken each week. This emergency rule allows DWD to respond to the spread of COVID-19 by waiving those work searches for thousands of people.

The Department recognizes that the work search requirement carries a significant burden on claimants when many businesses remain closed and job opportunities in certain sectors are still limited in response to the ongoing health and safety impacts of the global pandemic.

Wisconsin Lawmakers Approve Plan To Give In-Person Schools More Federal Coronavirus Aid

Under the plan, school districts that have offered and will continue to offer more hours of in-person instruction will receive a larger percentage of federal coronavirus aid than schools that have remained virtual. The measure was approved on a party-line vote of 11-4, with Republicans voting in favor and Democrats against, and will immediately go into effect.

Budget committee co-chairs Rep. Mark Born, R-Beaver Dam, and Sen. Howard Marklein, R-Spring Green, both argued the GOP plan will send more money to districts that have “done the right thing” during the pandemic.

“I believe our kids need to be in school for their benefit and society’s benefit,” Marklein said.  Marklein also argued districts that have provided in-person instruction over the last several months have incurred costs for things like transportation and cleaning supplies that districts exclusively offering virtual instruction have not.

Republicans on the committee pointed to statistics about rising suicide rates and mental health crises among students during the pandemic, as well as spikes in substance abuse and domestic violence. Democrats on the committee argued it is inappropriate to financially penalize schools that have chosen to offer exclusively virtual instruction during the pandemic.

“Districts that were doing the right thing were actually listening to those in the medical community and the scientists who said, ‘Close your doors, don’t be open,'” said Sen. Jon Erpenbach, D-West Point.

Wisconsin will receive about $686 million from the federal government for K-12 schools under Congress’ coronavirus response bill passed last year. Under the federal bill, about 90 percent of those funds will be distributed based on the number of low-income students in each school district, without input from state administrations or lawmakers.

However, Congress gave states discretion over how to spend the remaining 10 percent of the funds, roughly $69 million in Wisconsin.

One-Week Waiting Period for Unemployment Benefits is Reinstated

A one-week waiting period is back in effect for Wisconsinites applying for unemployment, as the coronavirus pandemic continues to lead to job losses.

The waiting period went back into effect Sunday after Gov. Tony Evers vetoed a Republican COVID-19 response bill last week. Republicans added the waiver of the one-week waiting period in an attempt to get the governor to sign a bill that included several COVID measures he disagreed with.

Republicans passed a law requiring unemployed people to wait a week before they could claim benefits a decade ago as a way to bolster the state’s unemployment fund. Lawmakers suspended the rule during the early months of the pandemic last year, but that action expired Sunday. Evers has previously called for permanently repealing the waiting period.

Governor Evers Proposes Legalizing Recreational Marijuana

Gov. Tony Evers’ next two-year budget will include a proposal to legalize recreational marijuana as part of plan to generate more than $165 million each year for rural schools and underserved communities.

The proposal to tax and regulate marijuana similar to alcohol sales is likely to be shot down by the Republican-controlled Legislature, which has opposed efforts to legalize marijuana in the past. Thirty-six states have passed laws legalizing medical marijuana and 15 states are regulating recreational use of marijuana, including neighboring states Michigan and Illinois.

Some Republican lawmakers have supported legislation to legalize medical marijuana in recent years, including now Sen. Mary Felzkowski, R-Tomahawk, and Sen. Kathy Bernier, R-Chippewa Falls.

Bernier said Sunday that she’s open to legalizing medical marijuana and decriminalizing small amounts of the drug, noting it may have potential to help people break their addiction to drugs like methamphetamine or heroin. She said she’s willing to work with Evers, but also indicated his past efforts to decriminalize marijuana were a thinly veiled effort to legalize recreational weed.

Bernier called the governor’s proposal “divisive.”

“The bottom line is, he knows, I know, we know that the Republican Legislature is not going to legalize marijuana, per se,” said Bernier. “So, let’s talk about the things we can do, and work together.”

Governor Evers Vetoes COVID-19 Response Legislation

Gov. Tony Evers vetoed a Republican COVID-19 relief package Friday within hours of the Senate approving the bill.

The Senate voted 19-11 along party lines to pass the first COVID-19 relief package sent to Evers’ desk since April. The legislation would have implemented coronavirus liability protections for businesses and schools and given the GOP-controlled budget committee the ability to transfer $100 million in certain appropriations for COVID-19 expenses, among other things.

However, the package, which has bounced back and forth between the GOP-led chambers in the Legislature for the last month and at one time included language Evers said he would sign, also included Republican-authored amendments the governor has opposed, including measures to limit his use of emergency orders and give Republicans in the Legislature authority over how the state spends future federal COVID-19 dollars.

“Wisconsinites know a compromise when they see one, and this isn’t it,” Evers said in a statement. “Unfortunately, Republicans once again chose to put politics before people, abandoned that compromise, and passed a bill they knew I wouldn’t sign.”

Senate Majority Leader Devin LeMahieu, R-Oostburg, and Assembly Speaker Robin Vos, R-Rochester, issued a joint statement condemning Evers’ veto against legislation they said “provides the state more than $100 million to fight the virus and ensures that Wisconsinites have access to necessary medications, vaccines and COVID-19 tests.”

Governor Issues New Mask Mandate After GOP Repeals Public Health Emergency Order

Wisconsin Governor Tony Evers issued a new statewide mask order on Thursday, an hour after the Republican-controlled Legislature voted to repeal his previous mandate saying he didn’t have authority to make such a decree.

If the Legislature keeps playing politics and we don’t keep wearing masks, we’re going to see more preventable deaths, and it’s going to take even longer to get our state and our economy back on track,” Evers said.

Republicans say the issue isn’t about masks, but whether Evers can legally issue multiple emergency health orders during the pandemic. The Legislature argues he can’t, and must secure their approval every 60 days. Evers contends the changing nature of the pandemic allowed him to issue multiple orders and mask mandates.

“I know you want to make it about masks. It’s not,” said Republican Majority Leader Jim Steineke. “It’s about the rule of law.”

The Supreme Court could end the legislative back and forth with a ruling in a pending case that says Evers must secure lawmakers’ approval every 60 days. The court could also say he doesn’t need approval, thus forcing the Legislature to repeal every order Evers issues if it wants to stop him.