News of the Day

Governor Announces Dairy Task Force 2.0 Members

Yesterday, Governor Walker announced the members of the Wisconsin Dairy Task Force 2.0 at Wisconsin Farm Technology Days.

The Governor directed Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary Sheila Harsdorf and University of Wisconsin System (UW System) President Ray Cross to establish the Task Force in early June. The Task Force will focus on making recommendations on actions needed to maintain a viable and profitable dairy industry in our state.

“As Wisconsin’s dairy industry continues to face challenges, it is more important than ever that the industry as a whole works together to find ways to maintain our status as a leading dairy state,” said DATCP Secretary Harsdorf. “The diverse and wide-ranging Task Force membership will allow for an important conversation, and I look forward to their recommendations.”

The economic impact of the dairy industry in Wisconsin is significant, employing nearly 80,000 jobs and generating $43.4 billion in state-wide economic impact every year – nearly half of agriculture’s total economic impact.

“The partnership between the dairy industry and the University of Wisconsin goes back a long time, and it has played a vital part in Wisconsin becoming America’s Dairyland,” said President Cross. “The UW System looks forward to continuing to work with farmers and dairy producers to develop and implement innovative and forward-thinking solutions for the Wisconsin dairy industry.”

The Wisconsin Dairy Task Force 2.0 members include:

Farmers:

  • Moriah Brey, Brey Cycle Farm LLC, Sturgeon Bay
  • Andy Buttles, Stone-Front Farm, Lancaster
  • Janet Clark, Vision Aire Farms, LLC, Rosendale
  • Tom Crosby, Crosby’s River Valley Dairy, Shell Lake
  • Dave Daniels, Mighty Grand Dairy, Union Grove
  • Patty Edelburg, Front-Page Holsteins, Scandinavia
  • Don Hamm, Sandy Loam Farm, Fredonia
  • Ryan Klussendorf, Broadland Grass Farm, Medford
  • Shelly Mayer, Mayer Farm, Slinger
  • Dan Pearson, Pearson Farm, River Falls
  • Amy Penterman, Dutch Dairy, Thorp
  • Brody Stapel, Double Dutch Dairy, Cedar Grove
  • Charles Untz, Untz Farm, Lake Mills
  • Darin Von Ruden, Von Ruden Farm, Westby

Milk Processors and Marketers:

  • Steve Bechel, Eau Galle Cheese Factory, Durand
  • Dave Buholzer, Klondike Cheese Company, Monroe
  • Rob Byrne, Schreiber Foods, Green Bay
  • Ted Galloway, Galloway Company, Neenah
  • Paul Scharfman, Specialty Cheese Company, Reeseville
  • Jerry Schroeder, Schroeder Milk Transit, Oconto Falls
  • Jeff Schwager, Sartori Cheese, Plymouth
  • David Ward, Cooperative Network, Madison
  • Elizabeth Wells, Organic Valley, La Farge

Allied Organizations:

  • John Accola, Premier Cooperative, Prairie du Sac
  • Dennis Bangart, AgCountry Farm Credit Services, Marshfield
  • Michael DeLong, First Bank of Baldwin, Baldwin
  • Bradley Guse, BMO Harris Bank, Arpin
  • Melissa Haag, Lodi Veterinary Hospital, Lodi
  • Rene Johnson, Union Bank and Trust Co., Evansville
  • John Schmidt, Landmark Services Cooperative, Appleton
  • Chad Vincent, Dairy Farmers of Wisconsin, Madison

Dr. Mark Stephenson, Director of Dairy Policy Analysis at UW-Madison, will chair the Wisconsin Dairy Task Force 2.0. The Task Force is working to schedule their first meeting in August.

 

Wisconsin Businesses See Reduction in Worker’s Compensation Rate for Third Consecutive Year

The Wisconsin Commissioner of Insurance Monday approved an overall 6.03% rate decrease for Worker’s Compensation premiums for businesses, effective October  1, 2018.

This is the third consecutive year Worker’s Compensation rates have declined, following an 8.46% decline in 2017, and a 3.19% decline in 2016. The latest reduction in premiums is expected to result in an annual savings of about $134 million for Wisconsin employers.

“This is just another indicator that Wisconsin’s investments in its employees’ occupational safety is paying off,” Governor Scott Walker said. “Not only are employers seeing reduced premiums, but efforts to reduce workplace injuries help achieve a healthy labor force, resulting in a decline in rates for the third consecutive year.”

Worker’s Compensation rates are adjusted yearly by a committee of actuaries from the Wisconsin Compensation Rating Bureau. The committee studies the prior losses (claims) of hundreds of categories and professions throughout the state’s employment pool and submits a rate recommendation to the Office of the Commissioner of Insurance, which has final approval over the rates.

“A safe workplace results in a more productive and profitable one for employers,” Commissioner of Insurance Ted Nickel said. “Employers are recognizing the relation between their employees’ safety and the savings that ensue as premiums continue to decline.”

These savings will allow Wisconsin businesses to continue to strengthen their profitability while at the same time ensuring a safe work environment, according to Department of Workforce Development Secretary Ray Allen.

 

President Trump Nominates Brett Kavanaugh to Supreme Court

Tonight President Donald Trump nominated Kavanaugh to fill the vacancy that will be created on the court when Kennedy retires on July 31. If, as is widely expected (and Republicans hope), Kavanaugh proves to be more conservative than his former boss, the Supreme Court could shift further to the right on a variety of high-profile issues, ranging from reproductive rights to affirmative action.

The 53-year-old Kavanaugh is the consummate Washington insider, well-liked in the city’s legal community. Kavanaugh has lived in the D.C. area for essentially his entire life. He was born in Washington and raised in Maryland and, like Justice Neil Gorsuch (who graduated two years after him), attended the Georgetown Preparatory School, a prestigious Catholic boys’ school in Rockville. He left the D.C. area to attend Yale College and Yale Law School, graduating from the latter in 1990, followed by clerkships on federal courts of appeals in Delaware and California. He returned for a fellowship in the office of then-U.S. solicitor general Kenneth Starr, followed by the Kennedy clerkship.

In 2006, President George W. Bush nominated Kavanaugh (for the second time – his first nomination stalled) for a seat on the U.S. Court of Appeals for the District of Columbia Circuit. He has sat on the D.C. Circuit – the springboard to the Supreme Court for three of the current justices – for 12 years.

The confirmation hearings for Justice Neil Gorsuch began roughly a month and a half after he was nominated. Senator Charles Grassley of Iowa, the head of the Senate Judiciary Committee, recently suggested that the confirmation hearing for a nominee with a lengthy track record – which Kavanaugh certainly has – could take longer, so that Kavanaugh might not be confirmed before the Supreme Court reconvenes in October.

 

Officials Make Push for Interstate 41 Expansion

A few state and local officials have started to push for an expansion of a narrow stretch of Interstate 41 between Appleton and Green Bay in an effort to ease congestion and lower the number of crashes.

State Rep. Dave Murphy, a Republican from Greenville, said he has personally noticed issues with traffic on I-41 in the Fox Cities. “It’s very dangerous there and I thought ‘boy, this is really a fatal accident waiting to happen,’” he said.

The stretch of I-41 from Breezewood Lane to the north junction of State 441 has averaged nearly 470 crashes a year in the last five years, according to the state Department of Transportation.

The condition of the road itself, though, is comparable to other highways in the region. The pavement rating between State 15 and State 441 is 79 out of 100. The state typically does not look to repair pavement until the rating gets to 70 or lower.

Murphy said he has talked with Gov. Scott Walker about the possibility of adding the project to a future state budget. The project needs to be enumerated in a state budget before any other work can be done. “I feel like we’re going to try to push forward,” Murphy said.

 

On October 1, Out-of-State Sellers will Be Required to Collect Sales Tax

The United States Supreme Court recently ruled in South Dakota v. Wayfair, Inc., that a state can require out-of-state sellers without a physical presence in that state (i.e., remote sellers) to collect and remit sales or use tax on sales delivered into that state.

Beginning October 1, 2018, Wisconsin will require remote sellers to collect and remit sales or use tax on sales of taxable products and services in Wisconsin.  New standards for administering sales tax laws on remote sellers will be developed by rule.

The rule will be consistent with the Court’s decision in Wayfair, which approved a small seller exception for sellers who do not have annual sales of products and services into the state of (1) more than $100,000, or (2) 200 or more separate transactions. Any small seller exception adopted will not apply to sellers with a physical presence in Wisconsin.

More than 555,000 Wisconsin Families Receiving the $100-Per-Child Tax Rebate

Governor Scott Walker today announced that more than 555,000 families will be receiving $100-per-child before the start of next school year because of the Child Tax Rebate.

Parents who claimed their $100-Per-Child Tax Rebate will receive a check in the mail or a direct deposit before the start of next school year. Those eligible for the Child Tax Rebate needed to apply by July 2, 2018.

There will also be a Back-to-School Sales Tax Holiday for everyone from August 1 – 5, 2018. This means the state sales tax will not be charged for those days on school supplies where each item is $75 or less, clothing where each item is $75 or less, computers where each item is $750 or less, and computer supplies where each item is $250 or less.

Fiscal Bureau: Online Sales Tax Revenue Could Generate Average $52 Income Tax Cut

The average taxpayer could receive a $52 income tax cut if the state were to redistribute about $120 million in new online sales tax collected as a result of a recent U.S. Supreme Court decision, according to a new state study.

A Legislative Fiscal Bureau memo released Monday sheds new light on how state taxpayers would be affected by the recent decision that allows states to collect a sales tax from online and other retailers who sell remotely to buyers in Wisconsin.

The fiscal bureau says it remains unclear whether the state can start collecting the taxes now under an existing agreement it has with 22 other states. A South Dakota online sales tax law upheld by the Supreme Court applies only to retailers who have more than 200 transactions per year or have annual sales in excess of $100,000 per year.

Wisconsin’s online sales tax law doesn’t have those threshold limits in place so the Legislature may have to change the law or the Department of Revenue may have to write new administrative rules, the fiscal bureau said.

Walker said any necessary changes in law would happen in the 2019-21 budget, which will be introduced and passed in the first half of next year after the fall election.

A 2013 law requires the state to cut income tax rates if it reaps new sales tax revenue resulting from “any federal law” change. When the state enacted that measure, there was speculation Congress might change federal law to override a 1992 Supreme Court decision limiting state sales tax to brick-and-mortar retailers in a state. It’s not clear if a Supreme Court decision triggers that income tax rate cut, though the fiscal bureau memo says it’s possible.

Foxconn and U.S. Leaders Celebrate Groundbreaking of Wisconn Valley Science and Technology Park

Foxconn Technology Group (Foxconn) Founder and CEO Terry Gou formally broke ground for the Wisconn Valley Science and Technology Park in Racine County, Wisconsin. President Donald J. Trump, House Speaker Paul Ryan, and Wisconsin Governor Scott Walker joined Mr. Gou in marking the start of construction of the campus which will create 13,000 jobs in Wisconsin with $10 billion investment and thousands of more jobs through the extensive supply chain supporting this project.

“We are proud to mark this historic occasion and formally start construction of our state-of-the-art science and technology campus in America’s heartland,” said Foxconn Founder and CEO Terry Gou. “Over the past year, we have formed strong partnerships with communities across Wisconsin and we look forward to continuing to work with the talented, hard-working people here in the years ahead. We thank President Trump, Governor Walker, and Speaker Ryan for their commitment to this  project that will help reinvigorate high-tech manufacturing in the U.S. and the high-tech industry in the Midwest.”

As part of the company’s ‘Wisconsin First’ approach, Foxconn is actively working with local partners and tapping the talented and hardworking workforce in the state. It has started assembling a team of companies with strong track records in Wisconsin to support the development and construction of the Wisconn Valley Science and Technology Park.

The Wisconn Valley Science and Technology Park will also serve as a science and technology park to promote research and development in advanced technologies in areas such as cloud computing, mobile devices, Internet of Things, Big Data, artificial intelligence (AI), networks, and robotics and automation. It will lay the foundation for the AI 8K+5G ecosystem that Foxconn is creating in the United States, and provide a platform for the development of next-generation hardware and solutions as part of that ecosystem. In addition, it will serve as an industry internet platform to enable hundreds of thousands of small and medium size manufacturers to be part of the advanced manufacturing in the Midwest and in America.

Wisconsin High Court Upholds Cap on Noneconomic Medical Malpractice Damages

The Wisconsin Supreme Court upheld the state’s cap on noneconomic medical malpractice damages on Wednesday, reversing a lower-court ruling that awarded $15 million to a woman who had all four limbs amputated after a mishandled infection.

The court ruled 5-2 in a long-running case closely watched by doctors, hospitals and the insurance industry. Chief Justice Patience Roggensack wrote that the Legislature was rational in reasoning that the $750,000 cap would keep health care affordable while providing reasonable compensation for injured people.

“By enacting the cap, the Legislature made a legitimate policy choice, knowing that there could be some harsh results for those who suffered medical malpractice and would not be able to recover the full amount of their noneconomic damages,” Roggensack wrote.

The ruling stems from a case involving Ascaris Mayo. According to court documents, doctors didn’t tell the mother of four she was suffering from a septic infection in 2011. She fell into a coma and her arms and legs had to be amputated after gangrene set in.

Mayo and her husband sued the doctors and the state malpractice compensation fund, an account doctors pay into to cover malpractice awards.

A jury awarded the couple $25.3 million, including $15 million in noneconomic damages, defined as damages such as pain, suffering, inconvenience and disfigurement, and $1.5 million for her husband’s loss of companionship.

State Supreme Court End Administrative Agency Deference

The Wisconsin Supreme Court decision in Tetra Tech, Inc. v. Wisconsin Department of Revenue ends deference to agency conclusions of law in the state of Wisconsin.

WILL filed an amicus curiae brief with the Court arguing court deference to agency interpretations of state statutes is unconstitutional. The brief said, in part, “Collapsing the making of policy into its administration places that decision in the hands of an interested party and is inconsistent with the “auxiliary precautions” that underlie the separation of powers adopted by the framers of Wisconsin’s Constitution.”

WILL President and General Counsel Rick Esenberg said in response to the Court’s decision:

“Today’s decision limits the prerogatives of administrators and brings us a little closer to the system of government our founders envisioned. Basic American civics and the separation of powers require that each branch of government stay in its lane. Deferring to the legal conclusions of administrative agencies combined the executive and judicial powers in the hands of bureaucrats. The Court was correct to end it, as we argued in our amicus brief.”

Wisconsin courts for decades have chosen to defer to the interpretations of state statutes offered by administrative agencies, even when those agencies are enforcing those statutes against private citizens. They have often done so even when the agency interpretation was less reasonable than alternative readings of the law.  Although several of the Justices chose to avoid the constitutional issue and rule as a matter of judicial policy, the bottom line is that the Court acted today to ensure that the judicial power – including the power to have the final say on what a statute means – resides exclusively in the courts, not the executive branch.

Today’s decision is part of a broader reevaluation of agency deference occurring in both state and federal courts. For example, Mississippi’s high court recently ended agency deference. Federal courts are also beginning to grapple with the question.

This judicial reevaluation of agency authority is independent of, but consistent with, a more general re-examination of the administrative state, including legislative initiatives such as the REINS Act in Wisconsin. Both the federal and Wisconsin constitutions recognize that freedom is preserved not only by the delineation of individual rights but by structural limits on the power of government. The separation of powers – in which each branch “checks” and “balances” the others – is an important part of the way in which these limits act as, in James Madison’s words, “an auxiliary precaution” against the abuse of government power.