News of the Day

 A study published Monday in the medical journal JAMA finds that up to a quarter of all United States health care spending is wasteful.

Researchers found that $760 billion to $935 billion health care dollars are wasted every year.

The study cited multiple reasons for the wasteful spending. The biggest driver was administrative issues related to billing and coding. That represented 28% to 35% of total waste.

The second greatest contributor was what authors called “pricing failure.” This was described as waste related to the price of drugs and services “because of the absence of effective transparency and competitive markets.”

Other factors are over-treatment, unnecessary hospital visits, and lack of preventative care.

The U.S. spends more on health care per capita than any other developed nation.

The latest survey by a panel of 51 forecasters with the National Association for Business Economics shows they expect growth, as measured by the gross domestic product, to slow to 2.3% this year from 2.9% in 2018. The new forecast marks a downgrade from the 2.6% estimate for 2019 economic growth that the NABE panel had made in June.

For 2020, the forecasters expect GDP growth to fall to 1.8%. They see little likelihood of a recession over the next 12 months but expect the risk to increase by late next year.

The forecasters estimate just a 7% likelihood of a recession starting this year, a 24% likelihood by mid-2020 and 47% by the end of 2020. They foresee a 69% chance of a recession beginning by mid-2021.

The economy is in its 11th year of expansion, the longest on record in the United States. To help avoid a recession, the Federal Reserve has cut its benchmark interest rate twice this year.

Among the NABE panelists, about half foresee no further rate cuts this year; 43% envision at least one further cut. By the end of 2020, 69% expect the Fed to have cut its benchmark rate from where it is now.

Yesterday, at the 2019 WEDA Fall Conference, Department of Revenue Secretary-designee Peter Barca announced the formation of a new unit in the Wisconsin Department of Revenue.

The Business Development and Government Relations (BDGR) Unit will be part of the Department’s Research & Policy Division and serve as a bridge between the department, other state agencies and small businesses.

The BDGR unit will work with businesses to find what they need to:

 Start or expand

 Recruit and retain employees

 Analyze economic data

 Identify tax incentives

“We want to keep Wisconsin’s economy growing in all 72 counties,” said Governor Tony Evers. “BDGR will help new and growing businesses connect the dots between government agencies and identify resources and information they need to grow and thrive.”

“The Department of Revenue is uniquely positioned to assist Wisconsin businesses,” notes Department of Revenue Secretary Peter Barca. “We have contact with all businesses in the state through tax policy and administration. BDGR can connect businesses to resources and provide an ear for policy suggestions.”

When enforcement of the REAL ID Act begins October 1, 2020, the regular Wisconsin driver license or ID will no longer be accepted identification for domestic air travel or to enter a federal building or military base. On October 1, 2020, travelers will need to present a REAL ID-compliant driver license or state ID card or another acceptable form of identification (such as a passport).

“Since a driver license or ID is the most convenient form of identification, Wisconsin DMV encourages travelers to prepare their paperwork then visit a DMV before the October 1, 2020 deadline,” Wisconsin Division of Motor Vehicles (DMV) Administrator Kristina Boardman said. “Our customers are encouraged to visit the DMV sooner rather than later. Delay could mean longer lines at the DMV and travelers without a REAL ID will be denied boarding their plane.”

What documents are required to get a REAL ID? What documents are required to get a REAL ID?

To obtain a REAL ID-compliant driver license or ID card, individuals must visit a Wisconsin DMV and bring the following original documents or a certified copy (not a photocopy, fax or scan):

• Proof of Name and Date of Birth
• Proof of Legal Presence in the U.S.
• Proof of Identity
• Proof of Name Change (if applicable)
• Proof of Social Security Number
• Proof of Address

For a complete list of acceptable documents, visit wisconsindmv.gov/REALID.

DMV’s interactive Driver Licensing Guide will help customers develop a personalized checklist of the required documents needed to bring to the DMV. It also allows customers to pre-fill any required application(s), print and bring the forms or submit them electronically (if eligible), and print a checklist of required documents to bring.

A federal appeals court on Tuesday issued a mixed ruling on the Federal Communications Commission repeal of Obama-era net neutrality rules. The court upheld the FCC’s repeal of the rules, but struck down a key provision that blocked states from passing their own net neutrality protections.

FCC Chairman Ajit Pai applauded the decision as not only a win for the agency but also a “victory for consumers, broadband deployment, and the free and open Internet.” He said the court not only upheld its repeal of the rules, but it also upheld the agency’s so-called “transparency rule,” which requires broadband providers to disclose when they’re making any changes to their service.

The decision is the latest chapter in the decade-long fight to protect the internet from excessive control by big broadband companies and how the internet should be regulated.

The court largely agreed with the Republican-led FCC that the agency had the discretion to decide how to classify broadband. The Obama-era rules had reclassified broadband as a so-called common carrier service, which treated broadband like a public utility, subject to many of the same regulations as traditional phone service.  The 2017 repeal reinstated the less regulated classification of broadband, providing what Chairman Pai and other Republicans have called a “light touch” regulatory approach.

“Regulation of broadband internet has been the subject of protracted litigation, with broadband providers subjected to and then released from common-carrier regulation over the previous decade,” the DC Circuit said in its opinion. “We decline to yet again flick the on-off switch of common-carrier regulation under these circumstances.”

As Wisconsin’s Workforce Development Month comes to a close, the DWD secretary was in Eau Claire to tout keeping local talent, local.

All month, Secretary Caleb Frostman has been traveling the state, talking with private employers and learning their strategies for recruiting workers.

He said with a shortage of workers in the state, DWD officials are trying to compile some of the best strategies employed by Wisconsin companies.

“I think the folks we’ve seen successful have been creative, have thought outside the box. They’ve been inclusive. There’s some folks that haven’t been in the workforce before but they’ve been very aggressive, so they’re unsolicitedly sending messages on LinkedIn,” Frostman said.

Frostman said he plans to have a roundtable discussion with other leaders to share the information gathered from different businesses.

The White House is weighing some curbs on U.S. investments in China, a source familiar with the matter told CNBC. This discussion includes possibly blocking all U.S. financial investments in Chinese companies, the source said.

It’s in the preliminary stages and nothing has been decided, the source said. There’s also no time frame for their implementation, the source added.

A new analysis by the non-partisan Legislative Fiscal Bureau showed tax law changes that have been adopted since 2011 saved taxpayers more than $13 billion.

The memo of the analysis was released by Assembly Speaker Robin Vos Thursday. Vos received the analysis on Sept. 17. The more than $13.1 billion in tax cuts include:

• • More than $7.2 billion in income and franchise taxes, and economic development surcharges.

• • More than $131 million in other general fund taxes.

• • More than $5.7 billion in property taxes.

“One of our top priorities has been to allow Wisconsin families to keep more of their own hard-earned money,” said Speaker Robin Vos. “Republicans have proven we can cut taxes, fund essential state programs and grow the economy.”

According to Vos, the current budget grows the annual tax cuts to more than $2.3 billion, which includes reductions by more than $1.2 billion in income and franchise taxes and economic development surcharges, $18 million in other general fund taxes and $1.1 billion in property taxes.

The United States and Japan outlined initial details of a trade deal Wednesday as they to iron out a broader agreement.

The first stage of the accord will open markets up to about $7 billion in U.S. agricultural products, President Donald Trump said at a signing ceremony with Japanese Prime Minister Shinzo Abe at the United Nations. Japan will also reduce tariffs on products such as beef and pork, and eliminate tariffs on goods such as almonds, blueberries and broccoli.

President Trump added that the two nations made commitments for $40 billion worth of digital trade. It would bar customs duties on products such as videos, music and e-books, among other provisions.

In a joint statement later Wednesday, Japan and the U.S. said they wanted to finish their trade talks within about four months, according to Reuters. They said that, “while faithfully implementing these agreements, both nations will refrain from taking measures against the spirit of these agreements and this joint statement.”

Yesterday, the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA).

“For the first time in over 15 years, America’s workers will have an update to overtime regulations that will put overtime pay into the pockets of more than a million working Americans,” Acting U.S. Secretary of Labor Patrick Pizzella said. “This rule brings a commonsense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers.”

The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA’s minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level.

In the final rule, the Department is:

• raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
• raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
• allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
• revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The final rule will be effective on January 1, 2020.

The Department estimates that 1.2 million additional workers will be entitled to minimum wage and overtime pay as a result of the increase to the standard salary level. The Department also estimates that an additional 101,800 workers will be entitled to overtime pay as a result of the increase to the HCE compensation level.