News of the Day

Accurate, More or Less? A Look at Wisconsin’s 2018 Weights and Measures Numbers

When you shop for a product at your local Wisconsin business, you expect to get the correct amount of product for your money and to be charged the correct price for the items. Keeping a fair marketplace takes a good faith effort from businesses to ensure that their scales, registers, and pumps are accurate and requires regular monitoring to ensure that businesses are held accountable for these responsibilities.

To this end, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) tests product scales, registers, gas pumps, and fuel quality at stores throughout the state every day. The final numbers are in for the department’s 2018 field inspections, and consumers faced a fair marketplace throughout Wisconsin yet again last year.

“Year after year, Wisconsin businesses show that they respect their customers and take their responsibilities seriously in keeping their measurement and sales devices accurate,” said Lara Sutherlin, administrator for the Division of Trade and Consumer Protection.

DATCP’s weights and measures team conducted 258,720 inspections at 6,580 business locations statewide in 2018. In line with results from recent years:

• Wisconsin gas pumps continued to provide the correct amount of fuel, or even over-deliver, in nearly 100% of our tests in 2018.

• Prices at the register were also accurate or in a consumer’s favor in nearly 99% of our tests.

• Tests on scales used to weigh products specifically sold by weight were accurate or measured in the customer’s favor almost 100% of the time.

• Products sold by weight were labeled accurately in almost 99% of tests.

Inspectors also tested 5,036 fuel samples for quality last year, and nearly 99% of the samples met required national standards.

 

Darling says GOP will Hold Line on Taxes, Spending in Budget

Sen. Alberta Darling, R-River Hills, said Republicans will hold the line against the tax hikes and increased spending that Democratic Gov. Tony Evers proposed in his first budget.

“I think the level of spending is outrageous, and I think the level of intimidation for a lot of our reforms is really unnecessary,” she said.

Darling said Republicans “dug out of a hole” and grew the economy in Wisconsin since 2009, when Dems controlled the guv’s office and both houses of the Legislature.

“If we have this level of spending and taxation, we’re going to go back to 2009 and I’m really afraid of that,” Darling said.

 

 

Governor Evers to Raise Gas Tax, Increase School Funding, Roll Back Walker Proposals in State Budget

In his first budget proposal, Democratic Gov. Tony Evers will increase Wisconsin’s minimum wage, raise the gas tax, provide new funding for schools and give income tax cuts to middle income families.

To pay for his priorities, Evers’ two-year spending plan which he calls the “People’s Budget,” would roll back part of a manufacturing and agriculture tax credit program, expand Medicaid, use much of the state surplus, raise fees in transportation and limit the long-term capital gains tax.

Evers introduced the budget proposal Thursday night in the state Assembly chambers, but many of the provisions are likely not to pass the Republican-controlled state Legislature.

Republican Senate Majority Leader Scott Fitzgerald had previously hinted that Republican leaders may create their own base budget if Evers includes proposals they do not agree with. Assembly Speaker Robin Vos has called any plan that includes raising any income or sales taxes a “non-starter.”

State statutes require that Wisconsin have a balanced budget annually.  Evers’ budget increases spending by roughly $2 billion a year each year of the biennium from current spending, an increase of about 5 percent a year.

To pay for some of his priorities, Evers will spend down a surplus that is expected over the next two years. The state will enter the 2019 biennium with a $616 million surplus, and Evers budget would end the 2021 biennium with only $20 million. Evers’ administration said it will not spend any money from the state’s rainy day fund.

 

Governor Evers Appoints Former Legislator to DNR Board

Gov. Tony Evers has appointed a former legislator to the state Department of Natural Resources board.

The board’s chairman, Fred Prehn, introduced Fred Clark as a board member at the board’s meeting Wednesday. He replaces Preston Cole, whom Evers appointed as DNR secretary in December.

The DNR’s board liaison, Laurie Ross, said Evers appointed Clark late Friday.

Clark, a Democrat, represented Sauk and Columbia counties in the state Assembly from 2009 until 2015. He currently serves as executive director of conservation group Wisconsin’s Green Fire. He also has worked as a forest ecologist for The Nature Conservancy and as a DNR forester.

Republican Lawmakers Looking to Streamline Wisconsin’s Water Pollution Credits System

Republican legislators began a push Tuesday to streamline Wisconsin’s water pollution credit-trading system, introducing a bill that would create a clearinghouse that they say would make it easier for large-scale facilities and farmers to trade with one another.

The bill’s authors, Sen. Rob Cowles, Sen. Jerry Petrowski and Rep. Joel Kitchens, say the measure could energize the credit-trading marketplace, saving taxpayers the cost of upgrading public facilities to meet new phosphorus standards and providing farmers with a new revenue source.

“Third-party trading could save some communities from passing multi-million dollar wastewater treatment plant upgrade costs onto residents for little water quality improvement, keep small manufacturers and food producers open and operating, and, perhaps, best of all, help to save some of our cherished farmers from hanging a ‘closed for business’ sign on the barn,” the lawmakers said in a memo seeking co-sponsors.

Wisconsin law currently divides polluters into two classes: so-called point sources, such as municipal sewage treatment plants that discharge pollutants directly into the environment, and nonpoint sources, such as farms that pollute through run-off. Point sources can exceed pollution limits for certain non-toxic pollutants in their state permits if they buy credits from non-point sources that have taken steps to reduce their non-toxic pollutants.

The stakes have grown higher for point sources since the Department of Natural Resources imposed tougher phosphorus restrictions on them in 2010. The state Department of Administration estimates that businesses and municipalities would have to spend at least $3.45 billion to comply. The DNR won variances from the U.S. Environmental Protection Agency giving qualifying point sources 20 years to comply, but the clock is ticking.

The credit-trading option was created in the 1997-99 state budget but hasn’t caught on. As of Monday, the DNR had approved 15 trades with another 11 pending. Point sources and non-point sources simply lack the relationships to set up contracts. What’s more, if non-point sources don’t follow through on their pollution reduction efforts, it could put point sources into noncompliance with pollution limits in their permits. Point sources such as sewage plants or cheese factories don’t have the manpower to verify the non-pointers’ reduction work.

Under the bill, state officials would hire a private entity to act as a credit clearinghouse. The clearinghouse would contract with non-point polluters and pay them to undertake pollution reduction work that generates credits. Point sources could purchase the credits from the clearinghouse rather than deal directly with the non-pointers. Trades would have to occur within the same area as defined by the DNR.

The measure assuages point sources’ concerns about being liable if non-point sources didn’t really do the work to earn credits and help struggling farmers raise money by selling credits, in turn allowing them to buy pollution reduction technology. Point sources, meanwhile, could avoid spending on upgrading pollution controls, perhaps allowing small manufacturers to stay in business and saving taxpayers money on upgrades for public facilities, the lawmakers said.

 

President Trump Announces Delay in Tariff Hikes against China

President Donald Trump announced Sunday on Twitter that he would be delaying an increase in tariffs against China and plans to meet with Chinese President Xi Jinping to settle on a final trade agreement.

Trump said ongoing trade negotiations with China have been “very productive” and he would delay the tariffs, which were set to go into effect on March 1, ahead of a meeting with President Xi at the president’s Mar-a-Lago resort in Florida.

“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” Trump wrote on Twitter. “As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1.

He continued: “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”

Wisconsin Municipalities Depend Most on Property Taxes Among Midwest States

Cities and villages in Wisconsin rely more heavily on property taxes than any other state in the Midwest, and to a greater degree than most states nationally, according to a new report by the nonpartisan, independent Wisconsin Policy Forum.

In 2015, Wisconsin municipalities received 42.2% of their revenues from the property tax, but only 1.6% from sales and income taxes combined, WPF noted. Nationally, on average, municipalities got 23.3% of their revenues from the property tax with an additional 21.3% from sales and income taxes.

Other states tend to rely on a broader combination of revenues, including local sales taxes, local income or license taxes, charges for services, and federal aids. In Wisconsin, state law allows only  the state to levy an income tax and reserves the sales tax for the state, counties, and a limited number of municipalities that qualify as “premier resort areas.”

Gov. Evers Budget will Include Move Toward $15 Minimum Wage Proposal

Wisconsin Gov. Tony Evers said the budget he introduces Feb. 28 will include steps toward raising the state’s minimum wage to $15 per hour and dialing back the manufacturing tax credit to fund a middle-class tax cut.

Evers said phasing in a higher minimum wage will be “a slow process.” Gousha asked whether Evers might follow the lead of Illinois, where Gov. J.B. Pritzker recently signed a bill calling for a $15 hourly minimum by 2025. Evers said his proposal “will be similar to Illinois” in terms of the phase-in period.

Medicaid Expansion to Cost Wisconsinites $600 Million per Year

Wisconsin Institute for Law & Liberty (WILL) and the Center for Research on the Wisconsin Economy (CROWE) at the University of Wisconsin-Madison released a new study revealing the true cost of Medicaid expansion to Wisconsin families. Though proponents highlight certain savings to the state, Medicaid expansion is expected to result in increased costs to families with private insurance – as much as $700 per year for a family of four, resulting in a net cost to Wisconsin of $600 million.

The Study: The Impact of Medicaid Expansion: Examining the cost to consumers and the net impact on Wisconsin, by WILL Research Director Will Flanders, and Noah Williams, Director of CROWE and Professor of Economics at the University of Wisconsin-Madison, reviews data from all 50 states and the District of Columbia comparing private sector health insurance costs and emergency room visits in states that expanded Medicaid eligibility and those that did not. The results include:

  1. Expanding Medicaid will increase the cost of healthcare on Wisconsinites with private insurance, on average, by $177 per year – up to $700 for a family of four.
  2. Emergency room visits would actually increase in Wisconsin, by over 52,000 visits per year.
  3. In total, Medicaid expansion is expected to cost Wisconsin over $1 billion per year – borne in large part by increases in private sector healthcare costs.
  4. Even when ‘savings’ to the state are included – Medicaid expansion will cost Wisconsin $600 million per year.

Anti-Fraud Initiatives Saved Taxpayers more than $416 million over 10 Years

More than $51 million in fraudulent and erroneous refunds and credits were blocked during the 2018 tax season in Wisconsin.

According to the Wisconsin Department of Revenue, its use of identity verification tools helped protect identity theft.

“Identify verification is extremely important to us. It helps ensure that the identities of tax filers are secure and protected, and that their tax dollars are not stolen,” said Wisconsin Department of Revenue Secretary Peter Barca. “Cybercrime and identity theft have become more common. As a result, we’ve implemented a number of measures to combat it.”

DOR uses analytics to identify tax returns that indicate possible identity theft. If there is a concern, DOR sends a letter to the tax filer asking them to complete a quiz, enter a Personal Identification Number (PIN), or submit documentation to confirm their identity.

“Our systems are very secure, but when criminals steal someone’s personal information from other sources, they may use it to file a fraudulent tax return,” said Barca.