News of the Day

In an effort to alleviate the financial and emotional stress experienced by our state’s dairy
farmers, the 31 members of the Dairy Task Force 2.0 approved 49 recommendations at their Friday,  March 15th meeting in Sheboygan.

“Every member of this task force understands the importance of our state’s dairy community and the challenges our farmers are facing,” said DATCP Secretary-designee Brad Pfaff. “This group rolled up its sleeves, thought long and hard, and provided a number of important recommendations on what can be done to maintain and grow our state’s world-class dairy industry.”

The Dairy Task Force 2.0 considered how farmers could ensure they are as competitive as they can be in the marketplace. Members recommended all milk producers and buyers to have a current contract/member agreement with the organization marketing the farm’s milk. The group also recommended requiring official animal identification to help prevent or respond to animal disease threats.

Members emphasized the importance of the dairy industry connecting with consumers by sharing a consistent, accurate, and relatable message. The Dairy Task Force 2.0 recommended additional agricultural impact studies, support for agritourism, and need for additional educational programming for non-farm audiences. One recommendation also focused on the need for truth in food labeling for consumers in the marketplace.

The Dairy Task Force 2.0 stressed the need for increased connections across the industry.
Recommendations detailed the need for better collaboration and sharing ideas across the UW System and private industry and the need for more public and private partnerships such as the Producer-Led Watershed Protection Grant Program. The group also noted the need for increased investments in rural infrastructure, including transportation and broadband.

A theme across several recommendations was the need to expand our markets, locally, regionally, and around the world. The group identified the Wisconsin Center for Dairy Research as a partner to gain consumer preference and insights, offer technical assistance for product development, and support export growth. The Dairy Task Force 2.0 also noted the need to reduce logistical obstacles, such as load consolidation.

The Dairy Task Force 2.0 will schedule its next meeting in the coming weeks. A final report, including all 51 recommendations, is expected to be completed this summer. For more information, visit www.dairytaskforce.wi.gov.

Foxconn Technology Group said Monday it will begin construction of its Gen 6 LCD fabrication facility this summer with the goal of beginning production by the fourth quarter of 2020.  The plant will make LCD screens for products in the education, medical, entertainment, security and smart city markets.

The company has told local officials it anticipates hiring 1,500 employees for the initial phase of operations at the facility, Racine County executive Jonathan Delagrave said. The company has also repeatedly said its committed to eventually creating 13,000 jobs in Wisconsin.

The plant will make LCD screens for products in the education, medical, entertainment, security and smart city markets. When Foxconn originally announced plans for a manufacturing campus in Wisconsin it planned to build a Gen 10.5 facility aimed at making the largest screens in the world. The company changed plans to a Gen 6 plant in 2018 because it offered additional flexibility.

The company said it would announce the winners of bid packages for site utilities, roadways and related storm drainage by April 1. Bid packages for the Gen 6 fabrication facility and ancillary buildings will be announced in May, Foxconn said.

The company and its general contractor, M+WǀGilbane, also plan to hold information sessions for potential subcontractors on April 3 and April 10. Additional details for those sessions have not been announced.

Wisconsin’s top utility regulator wouldn’t say what it might cost consumers to meet Gov. Tony Evers’ proposal to make the state’s electricity carbon-free but vowed Tuesday to seek creative ways to manage the transition to a clean energy economy.

During a confirmation hearing before the Senate Committee on Utilities and Housing Tuesday, Public Service Commission chairwoman Rebecca Valcq said the agency should strive “at a minimum” to maintain rates competitive with neighboring states.

Across all consumer sectors, Wisconsin electricity rates are now the second-highest in the Midwest.

In response to questions from committee chairman Sen. Devin LeMahieu, R-Oostburg, Valcq said she would scrutinize every rate case that comes before the commission to find a reasonable balance between the financial health of utilities and the interests of ratepayers. But she would not speculate on what would constitute “reasonable” rates.

Brian Hagedorn and Lisa Neubauer are competing to replace the retiring supreme court justice Shirley Abrahamson in the upcoming Wisconsin Supreme Court election on April 2.

The Wisconsin supreme court rules on cases that don’t already have a clear legal precedent. Those decisions have an impact on all Wisconsinites, according to Judge Scott Horne with the La Crosse County Circuit Court.

Judge Horne said voters have a responsibility to look at candidates through a critical lens and select the one who will be the most fair minded and knowledgeable about the law.

Wisconsin Attorney General Josh Kaul is joining the rest of his colleagues across the country to push for a new law that would put a damper on robocalls.

Kaul says the TRACED act would direct telecommunications companies in the US to create a system to detect and stop spoofed calls, and to stop selling spoofed numbers to scammers.

“They would be required to implement this technology within, I believe it’s 18 months. So that’s one of the good things about the legislation is that it puts a mandate in place.”

He says scam calls and robo calls are consistently the biggest threat to consumers right now. “That’s why the required implementation of a call authentication framework is really important because it will reduce the likelihood consumers get these calls with spoofed area codes.”

The bill would also make it easier for law enforcement to prosecute the crooks running these outfits, even if they’re based overseas.

Gov. Tony Evers unveiled a capital budget Thursday that calls for $2.5 billion in new building projects around the state, an amount larger than any capital budget approved by former Gov. Scott Walker.

The state would borrow roughly $2 billion to pay for the budget, which includes more than $1 billion in new building projects throughout the University of Wisconsin System.

“This will be something that lots of people can find projects that they’ll appreciate,” said state Department of Administration Secretary Joel Brennan at a Wispolitics forum Thursday in Madison. Brennan said a backlog of building projects was part of the reason the capital budget would borrow so much more than it did in recent years.

“There’s so much of the stock of buildings at the university system that were built in the 50s and 60s and there is a lot of it that is getting beyond its usable life all at the same time,” Brennan said. “So I think there’s an opportunity there to make some investments that are not only doing things to make sure that we’re replacing buildings that are old but forward thinking and looking at where are we going in terms of economic development and workforce development in the state.”

Republicans said they were still reviewing Evers’ proposal, but at least a couple said they were concerned by the level of borrowing.

“Really sounds like the People’s Budget … so long as those people live inside the MSN/MKE bubble,” tweeted Assembly Majority Leader Jim Steineke, R-Kaukauna.

“At a first glance, the level of spending and bonding is alarming,” said Sen. Majority Leader Scott Fitzgerald, R-Juneau. “We’ll continue to review the capital budget proposal and discuss it as a caucus moving forward, but Senate Republicans are committed to protecting hard-working Wisconsin taxpayers.”

Wisconsin companies exported $22.7 billion of goods from the state in 2018, a 1.8 percent increase from 2017, according to data from the U.S. Census Bureau. The state’s export growth ranks 38th in the country and was well behind the 7.6 percent increase in exports nationally.

Canada remained the top destination for Wisconsin products in 2018, up 1.7 percent to $7.03 billion in goods. Shipments to Mexico increased 8 percent to $3.5 billion, keeping it as the number two destination for the state.

Imports from China into Wisconsin increased by more than $1 billion last year, a 14.4 percent increase that kept China as the top importer into the state.

Gov. Tony Evers last week opened debate over the state budget by proposing new funding for key priorities such as public schools and Medicaid health programs. Leaders of the GOP-controlled Legislature immediately rejected much of the plan, signaling that the final 2019-21 budget is likely to take a far different form.

Still, it is worth taking a broad look at the governor’s proposal to see how it would affect the state’s spending, taxes, and overall financial health. It will be equally important to examine the Legislature’s eventual budget bill with the same lens.

Evers would increase spending in the state’s general fund, or main account, by 3.8% in fiscal year 2020 to $18.5 billion and by 7.4% in fiscal 2021 to $19.8 billion. This two-year increase of $2.7 billion in general purpose revenue (GPR) does not factor in additional spending of federal funds or money from separate state accounts such as the transportation fund. The budget also calls for significant increases in overall spending. All funds expenditures would rise by a proposed 5.4% in 2020 to $40.7 billion and 4.9% in 2021 to $42.7 billion.

To help cover the new spending, the governor’s budget would use both a net increase in income and capital gains taxes and additional revenues in existing taxes due to economic growth. The governor is proposing a 10% income tax cut for low and middle-income earners plus an expansion of the Earned Income Tax Credit and several other smaller income tax cuts. However, the tax decreases are outweighed by several other larger increases that would primarily affect upper-income earners.

For example, the budget would place limits on who could claim an income tax credit for manufacturers and add to capital gains taxes in certain cases. It would also raise income tax collections by mirroring some provisions of the 2017 federal Tax Cuts and Jobs Act and hiring more auditors to enforce current law.

Overall, the bill would increase state GPR tax collections by $688.7 million over the next two fiscal years. This total does not include $608.7 million in new gas taxes and vehicle registration and title fees sought by the governor that would flow into the state’s separate transportation fund to pay for additional spending on state highways, local roads, and other infrastructure projects.

The additional GPR taxes, however, do not cover all of the proposed spending. The budget bill also would draw down a surplus in the general fund, which is expected to close the current fiscal year on June 30 with $691.5 million. Under the Evers proposal, the state is projected to close the next two-year budget cycle in June 2021 with just $105.3 million in its main account.