News of the Day

The state Elections Commission is certifying Brian Hagedorn’s victory over Lisa Neubauer in the race for an open state Supreme Court seat.

Unofficial returns from the April 2 election showed Hagedorn ahead of Neubauer by 5,962 votes. Neubauer had mulled a recount but ultimately decided against it and conceded defeat April 10.

The commission released a final tally Wednesday that shows Hagedorn beat her by 5,981 votes.

Hagedorn and Neubauer were vying to replace retiring liberal Justice Shirley Abrahamson, who is battling cancer.

Hagedorn will serve a 10-year term. His win means the court’s conservative majority will grow from 4-3 to 5-2 when he takes the seat in August.

There are 14,275 bridges in Wisconsin – 1,054, or 7.4 percent, are classified as being structurally deficient, which means that one of their key elements is in poor or worse condition. That’s up from 1,043 in 2014, according to the American Road & Transportation Builders Association’s (ARTBA) 2019 Bridge Profile.

Wisconsin’s Department of Transportation has identified 1,955 bridges in need of repair at an estimated cost of $1.4 billion, according to ARTBA’s report. That’s down from 1,984 in 2014.

“Wisconsin has an ongoing, rigorous inspection and maintenance program designed to spot issues well before they turn into major public safety concerns. The net change of 11 bridges in this category means there are additional structures in the inventory that now receive closer attention – beyond the standard inspection schedule – to help prioritize any immediate needs and long-term solutions.

“Falling into this category does not mean unsafe or ‘undriveable.’ The department maintains current structural evaluations to ensure all bridges can safely accommodate the traveling public,” Kristin McHugh, director of public affairs for the Wisconsin Department of Transportation (DOT), said.

McHugh cautioned against inferring too much from the $1.4 billion estimate for bridge repairs, which Wisconsin DOT provides to the Federal Highway Administration as part of the National Bridge Inventory program. She explained that the estimate is a result of using “a prescribed replacement formula designed to give a ballpark idea of the financial impact of replacement.

“While the replacement calculations are accurate in that context, they would be considered hypothetical for planning and programming purposes,” McHugh said. “This is because the department would typically explore a host of much less costly rehabilitation and repair options, where viable, to extend the useful life of infrastructure and enhance the return on taxpayer investment.”

The Social Security retirement program will be unable to pay full benefits by 2035, according to a new report issued Monday by the Trump administration.

Without reforms, the report says, payments to beneficiaries would have to be cut by 25 percent starting in 2035 to keep the program solvent.

The report said the program’s roughly $3 trillion in reserves will be depleted by 2035.

The government will have to tap into those reserves beginning in 2020, when the costs of the program will begin exceeding the income it receives from taxes.

The trust fund for Medicare that pays for hospital care will run out of money by 2026, an unchanged prediction from last year’s report.

Medicare’s overall costs are expected to rise to 5.9 percent of the gross domestic product by 2038, up from 3.7 percent in 2018.

“Every day that passes, the problem gets bigger and the solutions become more difficult to implement,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a non-partisan advocacy group.

A 16-year runway, she noted, means that today’s 51-year-olds will not be able to collect their full benefits unless there is action.

She also had a message for Democrats who are calling to expand the program’s benefits.

“Certainly we should be focused on saving Social Security and Medicare before we start promising to expand these programs,” she said.

The Badger State’s Tax Freedom Day is April 19th this year, according to the Tax Foundation. 

Tax Freedom Day is the day in each year when taxpayers will have earned enough money to pay off their tax bills. Wisconsin’s Tax Freedom Day is three days after the national Tax Freedom Day, which occurred on April 16th this year.

Both the national and Wisconsin measures stayed on the same day compared to last year after jumping significantly earlier in the prior year, thanks in large part to the sweeping Tax Cuts and Jobs Act. 

The Tax Foundation calculates the annual measure to remind the public just how much we spend on various government services every year. In 2019, Americans will spend more money on taxes than on housing, food, and clothing combined. 

In the race between states, Wisconsin is behind the pack. The Badger State’s Tax Freedom Day is ranked 35th among the states. Alaska’s tax burden is the smallest, with taxpayers there earning their average tax bill by March 25. New York and Washington, DC are tied for last place at May 3. 

As the largest share of the average tax burden, income taxes take the longest to pay off, on average. Wisconsin has among the highest individual income tax burdens in the country. 

Gov. Tony Evers is looking to renegotiate portions of Wisconsin’s contract with Foxconn Technology Group, saying the company has scaled back its plans and is unlikely to hire 13,000 people in the near future.

“Clearly the deal that was struck is no longer in play and we will be working with individuals at Foxconn and of course with WEDC to figure out how a new set of parameters should be negotiated,” Evers said at a Capitol meeting with reporters. The governor’s office provided BizTimes a transcript of the remarks.

Evers did not say how many jobs he expects Foxconn to create, but he did say 13,000 is “an unreal expectation” and discussed the project in terms of 1,300 to 2,000 jobs.

Foxconn did not immediately respond to requests for comment on the governor’s remarks.

Evers said it was too early to say what elements of the contract could be renegotiated.

“That’s premature to say that but all we know is that the present contract deals with a situation that no longer exists so it’s our goal to make sure that taxpayers are protected and environmental standards are protected and we believe that we need to take a look at that contract and see if it needs to be downsized as a result,” Evers said.

Yesterday, Governor Tony Evers announced the creation of a Joint Enforcement Task Force on Payroll Fraud and Worker Misclassification.

The task force will be staffed by the Department of Workforce Development (DWD) and will consist of the Secretaries of DWD, the Department of Revenue, the Administrators of the Worker’s Compensation and Unemployment Insurance (UI) Divisions within DWD, the Attorney General or a designee, the Commissioner of Insurance or designee and others. The DWD Secretary will serve as chair.

“Our workers are the backbone of our communities,” Gov. Tony Evers said. “Everyone benefits from their efforts to make Wisconsin stronger and safer. When employees are falsely classified or treated unfairly, it hurts our families, our communities, and our whole state.”

The task force will coordinate worker misclassification matters handled by the Departments of Revenue, Workforce Development, and Justice, as well as the Office of the Commissioner of Insurance and other agencies and will report to the Governor on or before March of each year on their activities.

“Worker Misclassification is an issue of fairness and equity,” DWD Secretary-desginee Caleb Frostman said. “For too long, certain contractors have forced individuals into Independent Contractor status to avoid unemployment insurance taxes and worker’s compensation premiums, depriving workers of the security that the employer-employee relationship provides. They have also created an unfair business climate that places businesses that follow the law at a competitive disadvantage.”

“Last year alone, UI Division auditors conducted 2,459 audits, identifying 8,677 misclassified workers and recouping more than $1.5 million in UI taxes, interest and penalties due to their efforts,” UI Division Administrator Mark Riehl said.

“By better coordinating our state level efforts to level the playing field for Wisconsin contractors and workers, we are building a better tomorrow for thousands of Wisconsin workers and business owners, while helping to ensure the integrity of Wisconsin’s UI Trust Fund.”

Less than a week remains to file income tax returns, and the Wisconsin Department of Revenue (DOR) recommends that taxpayers not wait until the last minute to file. Returns must be received or postmarked by midnight on Monday, April 15.

“We process around three million returns annually,” notes Department of Revenue Secretary Peter Barca. “Around a half million returns came in the last two weeks. Our season total now stands at 2.3 million, so activity has been brisk. We’re anticipating another half million taxpayers to file in the remaining days, and we expect the rest will likely file for extension.”