News of the Day

Electric Vehicle Investigation Moves Forward

Chairperson Rebecca Cameron Valcq announced today that the Public Service Commission of Wisconsin (PSC) is moving forward with its investigation into electric vehicles. The PSC recently issued a request for comments to all interested parties, including Wisconsin municipal and investor-owned utilities. Members of the public are also welcome to submit comments to the PSC.

“The State of Wisconsin needs to be ready to meet consumer and industry demands as it relates to the increased use of electric vehicles and related infrastructure needs,” said Chairperson Valcq. “It is critical that the PSC hears from a broad range of stakeholders surrounding electric vehicle use and its growth in the marketplace.”

Wisconsin electric utilities, interested parties, and members of the public are welcome to participate in the comment process with a deadline to submit responses by Monday, May 20, 2019.

The PSC intends for the investigation to be a collaborative and inclusive process that provides ample opportunities for participation. At the conclusion of the response period, the PSC will review the comments received and draft a report analyzing the comments. The PSC is also considering in-person workshops and subsequent requests for comment to further facilitate discussions of electric vehicle policy and regulation in Wisconsin.

Estimate: Property Taxes Would See Inflation-Level Increases Under Governor Evers’ Budget

Property taxes on a median-valued home would tick upwards under Gov. Tony Evers’ budget proposal at about the rate of inflation, according to the nonpartisan Legislative Fiscal Bureau.

The new Legislative Fiscal Bureau estimate projects Evers’ budget plan would cause the estimated net tax bill on a median-valued home to increase 2% next year and by 1.6% the year after that. The impact to individual property taxpayers would vary and could be more or less, depending on various factors.

The estimate finds statewide net property-tax levies would increase by 2.4% next year and by 2.1% in the second year of the biennium under Evers’ budget.

The increased tax bills are driven largely by Evers’ plan to boost by 2% the amount counties and municipalities could collect through local property tax levies.

But a countervailing effect comes from Evers’ plan to give a $1.4 billion infusion of state aid to school districts in the next two years. That would enable the state to shoulder a larger share, relative to local property taxpayers, of school district costs.

Rep. John Nygren, R-Marinette, co-chairman of the Legislature’s budget committee, said in a statement that the report shows how Evers’ budget would mark a shift from budgets enacted under former Gov. Scott Walker.

“The fact is, the Governor’s budget raises property taxes by the largest amount in a decade,” Nygren said. “Republicans have a record of cutting taxes and remain committed to this goal, whereas the governor would rather increase taxes to grow government in Madison.”

Evers spokeswoman Melissa Baldauff said part of the projected property tax increase is due to voters approving referendums to increase their property taxes to fund their local school districts — which she said Evers can’t control.

Wisconsin Posts 5th Highest Property Tax Rate in New National Study

Wisconsin ranked 47th in the nation in a recent WalletHub analysis of which states have the lowest property tax rate.

On average, American households pay nearly $2,300 in property taxes on their homes annually, according to the WalletHub study.

In Wisconsin, the effective property tax rate was 1.94 percent, meaning that the annual tax bill on a $194,000 home was $3,756, WalletHub reported. The median home value in Wisconsin was estimated at $169,300, and owners of median-value homes paid $3,286 in property taxes annually.

Ousted Wisconsin Utility Regulator Warns Deadlock Could Stall Projects

An ousted Wisconsin utility regulator is warning that her absence could leave the Public Service Commission deadlocked and stall key infrastructure projects.

Former Public Service Commissioner Ellen Nowak has been locked out of her job by Gov. Tony Evers’ administration, which contends her appointment during a lame-duck session of the Legislature was nullified by a recent court ruling.

That leaves the PSC with just two acting members — appointed by governors of different parties — and a slate of major utility cases, including a natural gas connection to the Foxconn manufacturing campus that must be decided by the end of April.

In a court affidavit filed this week, Nowak warned that utility projects that have been through months of regulatory scrutiny could be delayed or go unresolved.

“This will not only threaten to stall development and job creation but also will interfere with the needs of the utilities and the interests of their customers in the provision of reliable service,” Nowak wrote.

Nowak notes that PSC Chairwoman Rebecca Valcq has agreed to recuse herself in a number of cases that she worked on as an attorney before joining the commission in January. That would leave commissioner Mike Huebsch as the lone voting member should any of those cases come up before the issue is resolved.

After Dane County Judge Richard Niess ruled last month that Republicans convened the special session illegally, Evers rescinded 82 appointments made in the final days of former Gov. Scott Walker’s administration.

Evers re-appointed 67 of those appointees, who were serving in positions he considered low level, though he has not announced appointments for the other 15 positions.

An appeals court agreed to a GOP request to put Niess’ ruling on hold, raising further questions about whether those lame-duck appointments are reinstated.

Last week Nowak, appointed by Walker to a second term on the commission in December, was turned away when she showed up for work, a decision that PSC spokesman Matt Dannenberg said came from Evers’ Department of Administration.

Wisconsin Appeals Court Restores Laws from Lame-Duck Session

A Wisconsin appeals court on Wednesday reinstated laws Republicans passed during a lame-duck session to weaken the Democratic governor and attorney general, but the statutes remain blocked because of a ruling in a separate case.

Multiple liberal-leaning groups have challenged the laws in separate lawsuits. Last week Dane County Circuit Judge Richard Niess blocked the statutes, finding lawmakers convened illegally when they passed them.

The 3rd District Court of Appeals essentially wiped out that ruling Wednesday by granting a GOP request for a stay. The court said Niess underestimated Republicans’ chances for success on appeal as well as the harm that blocking potentially valid legislation can cause.

Senate Majority Leader Scott Fitzgerald and Assembly Speaker Robin Vos issued a joint statement Wednesday praising the decision, saying the rule of law has prevailed. Evers issued a statement saying he’s confident the lame-duck laws will ultimately fall.

 

Second Dane County Judge Issues Injunction Against Portions of Lame-Duck Laws

A Dane County judge has temporarily enjoined several sections of laws passed in a December extraordinary session following a challenge brought by a series of unions.

Judge Frank Remington’s issuance of a partial temporary injunction comes as the laws are already on hold following a separate Dane County judge’s ruling in a different lame-duck suit last week.

Today’s ruling also rejects a motion to dismiss the case from the GOP Legislature, as well as its attorney’s request for a stay pending appeal.

Remington in his decision likened the state Constitution to “a keel on a great ship,” saying while it’s not visible, it has a critical function and aims to maintain the balance of each arm of government.

“In December, 2018 the Legislature and then Governor Scott Walker upended the balance that this State has had for most all of its 171 years,” he continued. “The time has come to right this ship-of-state so Wisconsin can resume smooth sailing ahead.”

Assembly Speaker Robin Vos, R-Rochester, and Senate Majority Leader Scott Fitzgerald, R-Juneau, vowed to appeal the decision.

“It’s encouraging to see the court ruling in our favor on elements of this case,” they said. “However, all of the Legislature’s actions are consistent with the separation of powers that the Wisconsin Supreme Court has upheld for decades.”

But Gov. Tony Evers said the latest ruling makes it “abundantly clear that the lame duck session was nothing more than an illegal power grab intended to override the will of the people.”

“It is time to move beyond this chapter and work together to build a Wisconsin that puts the people first,” he said.

State Lawmakers Introduce Legislation to Target “Phone Spoofing” Scam Calls

With the press of a button, scammers are able to change their phone number from 10 random digits to a number with a familiar area code. Wisconsin state lawmakers have introduced new legislation to combat this activity, but technology may be advancing faster than the law.

According to the Department of Agriculture, Trade and Consumer Protection, spam, scam and robocalls are the number one consumer complaint in Wisconsin.

All a scammer needs is an smartphone app like SpoofCard and the number they want to pop up when someone answers. That’s how simple it would be to make it look like WPS is calling to disconnect service if they don’t receive payment immediately. Several people around the Northwoods have been fooled by that exact scheme.

 

Wisconsin lawmakers are hoping to curb spoofing with Senate Bill 132. The bill proposes fining people up to $10,000 for misrepresenting their caller ID. But with many spam calls coming from outside the country, even nationwide legislation may not be enough.

Governor Evers Rescinds 82 Walker Appointees Approved in Lame-Duck Session

Wisconsin Gov. Tony Evers on Friday rescinded 82 of former Gov. Scott Walker’s appointees who were approved in the controversial December 2018 lame-duck session, after a judge ruled on Thursday that the actions taken during the session were unconstitutional.

“These seats are now considered vacant, but we are committed to working as quickly as possible to fill them and minimize the disruption to the important work done by these boards, committees and councils,” said Evers spokeswoman Melissa Baldauff in an email.

The list included Scott Beightol and Torrey Tiedeman, who were appointed to the University of Wisconsin System Board of Regents; Ellen Nowak, who was appointed to the Public Service Commission; and Cate Zeuske, who was appointed to the Wisconsin Historical Society Board of Curators.

“We absolutely believe that these nominees were nominated and confirmed legally and will continue to serve in those positions once the constitutionality of the extraordinary session is upheld,” said Senate Majority Leader Scott Fitzgerald, R-Juneau, in a statement responding to Evers’ withdrawal of the appointees. ”

Dane County Judge Blocks GOP Lame-Duck Laws

Dane County Circuit Judge Richard Niess on Thursday issued a temporary injunction to block the lame-duck laws after he found the Republican-controlled Legislature did not lawfully meet to pass them.

The League of Women Voters, Disability Rights Wisconsin, Black Leaders Organizing for Communities and three Wisconsin voters in January in their lawsuit alleged Republicans had convened an illegal legislative session and the laws should be voided.

Niess in his ruling sided with those groups and barred anyone from enforcing the laws that were passed during a 24-hour floor period in December by Republican lawmakers over the objection of Democratic lawmakers, Evers and Kaul.

“The bottom line in this case is that the Legislature did not lawfully meet during its December 2018 ‘Extraordinary Session,’ ” therefore violating the state Constitution, Niess wrote.

Minutes after the judge issued his ruling, Republican legislative leaders who wrote the laws promised to appeal it.

“Today’s ruling only creates chaos and will surely raise questions about items passed during previous extraordinary sessions, including stronger laws against child sexual predators and drunk drivers,” Senate Majority Leader Scott Fitzgerald of Juneau and Assembly Speaker Robin Vos of Rochester said in a statement.

New Fed Forecast for 2019: Slower Growth and Zero Rate Hikes

The Federal Reserve sent a stark message Wednesday: The economy is slowing. And it won’t be raising interest rates anytime soon.

The central bank said it was keeping its benchmark rate — which can influence everything from mortgages to credit cards to home equity lines of credit — in a range of 2.25 percent to 2.5 percent. It also announced that by September, it will no longer reduce its bond portfolio, a change intended to help keep long-term loan rates down.

Combined, the moves signal no major increases in borrowing rates for consumers and businesses. And together with the Fed’s dimmer forecast for growth this year — 2.1 percent, down from a previous projection of 2.3 percent — the statement it issued after its latest policy meeting suggests it’s grown more concerned about the economy. What’s more, with inflation remaining mild, the Fed feels no pressure to tighten credit.

The Fed’s new embrace of patience and flexibility reflects its response since the start of the year to slow growth at home and abroad, a nervous stock market and persistently mild inflation. The Fed executed an abrupt pivot when it met in January by signaling that it no longer expected to raise rates anytime soon.

The shift toward a more hands-off Fed and away from a policy of steadily tightening credit suggests that the policymakers recognize that they went too far after they met in December. At that meeting, the Fed approved a fourth rate hike for 2018 and projected two additional rate increases in 2019. Powell also said he thought the balance sheet reduction would be on “automatic pilot.”