News of the Day

The Department of Workforce Development (DWD) today released the U.S. Bureau of Labor Statistics preliminary employment and unemployment estimates for the month of May 2020.

The data shows that Wisconsin added 74,900 total non-farm and 72,100 private-sector jobs in the month of May. Wisconsin’s labor force participation rate in May was 66.6 percent, and the state’s unemployment rate fell to 12.0 percent, down from April’s revised rate of 13.6 percent.

“May’s job numbers show a strong increase in jobs, employment, and an unemployment rate that is more than a full percentage point lower than the national rate,” DWD Secretary Caleb Frostman said. “As Wisconsin’s economy continues to reopen, DWD stands ready to assist workers as they transition back to their former employer, or to new employment.”

Two population health studies in Wisconsin are being launched to better understand where COVID-19 is in the state, identify communities at risk for a future outbreak and help prevent the spread of the virus, the state Department of Health Services announced Wednesday.

Retail sales shattered already-lofty expectations for May as consumers freed from the coronavirus-induced lockdowns began shopping again.

The 17.7% headline gain including food sales easily topped the record 6.7% from October 2001 — a month after the 9/11 terrorist attacks — and beat the 8% estimate from economists surveyed by Dow Jones.

Retail sales alone powered 16.8% higher from a month earlier, more than double the estimate of 8% from Dow Jones and reversing from a revised 14.7% plunge from the previous month. Clothing and accessories stores reported the biggest percentage gain at 188% while sporting goods, hobby, musical instruments and book stores rose 88.2%.

Excluding motor vehicles and parts, which popped by 44.1%, May’s gain came in at 12.4%, which also is the best on record going back to 1967.

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.