News of the Day

The chair of the state Senate Utilities and Technology Committee says the unprecedented level of broadband funding coming to Wisconsin presents a chance for bipartisanship.

Speaking Friday at a conference in Brookfield hosted by the Wireless Internet Service Providers Association, Sen. Julian Bradley noted the state could see as much as $1.2 billion for broadband from one element of the Infrastructure Investment and Jobs Act. The federal law’s Broadband Equity, Access and Deployment Program provides more than $42 billion nationwide for projects aimed at expanding high-speed internet access.

“So there’s a significant amount of money that’s going to be coming in,” the Franklin Republican said. “How that’s going to be spent? Where that’s going to be spent? There’s a lot of questions about that and divided government certainly poses an opportunity for both parties to come together.”

He added broadband access is important for every Senate and Assembly district in the state, and said he and his Dem colleagues in the GOP-dominated Legislature have a solid working relationship with open lines of communication.

But he acknowledged the challenge that some legislators “may have very different ideas” about how federal funding should be used than Dem. Gov Tony Evers. He urged attendees to advocate with their representatives in the Legislature, the state Public Service Commission, the Wisconsin Broadband Office and the governor’s office.

“If we get enough money to cover almost everything, then the question isn’t which projects, it’s what order?” he said. “When do we get to those people? And that’s the next question that needs to be answered.”

Bradley argued broadband funding should be prioritized for rural areas with few to no options, rather than “completely upgrading” infrastructure for areas that are already connected.

“The focus should be, and hopefully will continue to be, on getting to rural customers … It is just absolutely critical and crucial that we get our rural folks connected to the internet so they don’t fall too far behind,” he said, pointing to the state’s western and northern regions in particular.

When asked about adding a state requirement for matching funds for broadband projects, Bradley said he liked the idea of communities having “skin in the game” with investment from all parties. But he emphasized the importance of flexibility in funding allocation, and said the PSC should be trusted as an expert steward.

He explained the state’s broadband grant program doesn’t spell out a specific requirement for matching funds. While projects that do include such funding are weighed more heavily in a scoring framework, he said, those that don’t aren’t automatically disqualified.

“With the amount of money that’s coming in … we are going to get close to full connectivity — as close as we can imagine, anyway,” he said. “And the people that we don’t hit, the few that we miss, are going to be special on-off projects that we’re going to need that additional flexibility.”

The Biden administration on Monday announced that the COVID-19 public health emergency, which has been in place since January 2020, is set to end on May 11.

“The COVID-19 national emergency and public health emergency (PHE) were declared by the Trump Administration in 2020.  They are currently set to expire on March 1 and April 11, respectively.  At present, the Administration’s plan is to extend the emergency declarations to May 11, and then end both emergencies on that date,” the Office of Management and Budget (OMB) said in a statement.

“To be clear, continuation of these emergency declarations until May 11 does not impose any restriction at all on individual conduct with regard to COVID-19,” the OMB said in its statement. “They do not impose mask mandates or vaccine mandates.  They do not restrict school or business operations.  They do not require the use of any medicines or tests in response to cases of COVID-19.”

Under the flexibilities that were enacted under the PHE, traditional Medicare and Medicare Advantage beneficiaries were able to receive free at-home COVID-19 testing and treatments and pay no cost-sharing.

Private insurance providers were also required to cover coronavirus testing and services with no cost-sharing and without prior authorization.

The end of the PHE will also mean the end of Title 42 border policy, which allows border officials to expel foreign nationals and ignore asylum claims for the sake of public health protections.

Lowe’s Companies Inc. has innovated – and successfully tested – a new system geared toward tackling organized retail crime in a frictionless and almost invisible manner.

It’s called Project Unlock, and it’s a proof-of-concept system that underscores how there are methods to solving this industry-wide problem without having to lock up every product on the shelf, Lowe’s Chief Digital and Information Officer Seemantini Godbole said.

Lowe’s demonstrated Project Unlock last week during NRF’s 2023 expo in New York City, hosted in conjunction with the Loss Prevention Research Council. Its goal is to prove that technology can be leveraged to solve organized retail crime without hindering the shopping experience for law-abiding citizens.

Over the last 12 to 18 months, Lowe’s Innovation Labs has been testing out the system which utilizes RFID [Radio Frequency Identity] chips, scanners and blockchain.

If implemented, it would render a stolen tool inoperable which would discourage bad actors and in turn, keep employees safe, according to Godbole.

To work, manufacturers would first have to embed a wireless RFID (Radio Frequency Identity) chip into a power tool product. The chip is already preloaded with the item’s serial number. It is also embedded in the box’s barcode.

The product is set to inoperable up until the moment the customer pays for it. An RFID scanner at the register would then read the chip and activate the tool for use.

“Only products that are legitimately purchased are activated,” according to Lowe’s Innovation Labs. “If a power tool is stolen, it won’t work, which makes it less valuable to steal.”

If implemented, the idea is that word will spread “pretty quickly that stealing these tools this way is not worth it because it’ll never work,” Godbole said.

New estimates from the nonpartisan Legislative Fiscal Bureau released Wednesday show the state ending the current fiscal year with a $7.1 billion surplus — $524 million more than Democratic Gov. Tony Evers’ administration projected in November.

The LFB analysis cited several factors that contributed to the $524 million difference, the most significant of which is the state’s projected Medicaid fund surplus. Due in large part to the continuation of enhanced federal matching funds enacted during the COVID-19 pandemic, the state’s Medicaid fund is projected to end the fiscal year with a $774.8 million surplus — $269.9 million more than the Evers administration expected in November.

Additionally, the 2021-23 state budget included $202.4 million to offset the repeal of the state’s personal property tax, which was to be done in separate legislation. Because the tax was never eliminated, that money will return to the state’s general fund.

Other factors include a $60.7 million increase in projected tax collections compared to the November report. Although tax collections are expected to be up in the current fiscal year, they are projected to be $74.7 million lower in the first year of the upcoming state budget, and $80.2 million lower in the second.

Over the three-year period (the current fiscal year and the two years of the next state budget), all general fund tax collections are expected to be $94.2 million lower than projected in November with the exception of individual income taxes and taxes on vapor products. The largest decrease in projections comes from sales and use taxes.

In addition to the projected $7.1 billion surplus, the state’s “rainy day” budget stabilization fund holds its highest balance in state history, at $1.7 billion.

The Government Accountability Office said in two new reports issued Monday that getting reliable data on government fraud is extremely difficult, while hazarding that unemployment insurance fraud during the pandemic may be in excess of $60 billion.

The reports come as multiple committees of the new Republican-led Congress prepare to focus oversight efforts on government spending.

“Republicans are committed to investigating fraud and conducting rigorous oversight on behalf of working families,” Jason Smith (R-Mo.), the new chairman of chair of the House Ways and Means Committee, said in a statement about the new reports. “Congressional Democrats walked away from their oversight responsibilities of getting to the bottom of how this happened, what they could do to prevent it, and even how much has fully been lost.”

One report offers an overview of some of the data problems that prevent program overseers from producing reliable estimates of governmentwide fraud and a second report examines fraud in unemployment insurance programs. That report includes what GAO says is a conservative estimate for upwards of $60 billion in unemployment insurance fraud during an 18-month period starting April 2020.

GAO had to rely on extrapolations and projections made using data on probes into unemployment benefits fraud from across the states to come up with its estimate. GAO takes pains to explain all the variables and assumptions that go into producing these estimates, although it’s not clear that customers are paying close attention

Seto Bagdoyan, director in GAO’s Forensic Audits and Investigative Services Team, told FCW in an interview that usually when he talks about data reliability, “the eyes glaze over, or they’re just plain not interested.”

Rebecca Shea, a GAO director for forensic audits and investigative services, told FCW that “having a number, understanding the extent of a problem is important for your ability to bring attention to it and to address the problem.” Shea added: “And it is important to get that accountability that you’re looking for.

GAO also gave the Labor Department a new recommendation to design and implement an anti-fraud strategy for unemployment. It says that the department still hasn’t completed six other recommendations made in fall of 2021. In reply comments, acting Labor Department Assistant Secretary Brent Parton said the agency was following GAO’s recommendations but on its own schedule.

Governor Tony Evers Tuesday night called for nearly $1.3 billion in new spending on mental health initiatives, addressing PFAS and bolstering the state’s workforce while calling for a big boost in state aid to local governments.

In his annual State of the State speech, Evers also knocked a GOP proposal to implement a flat income tax as a giveaway to the wealthy. And he used his fifth address to back a proposal to use up to 20 percent of sales tax revenues to boost shared revenue.

Evers had previously expressed skepticism of the suggestion to dedicate one penny of the state’s five-cent sales tax to increase the aid Wisconsin sends municipalities and counties. But he pitched his new openness to the idea as an effort to find common ground as the Dem guv once again faces a GOP-controlled Legislature that blocked many of his priorities during his first four years in the office.

Evers said the idea would mean an additional $500 million a year in new resources for local costs, including public safety, transportation and health.

“The state must fulfill its obligation to fund our communities, just like we must fully fund our public schools and invest in clean water,” Evers said. “Our state, our economy and our workforce depend on these investments.”

Beyond the $500 million boost in shared revenue, WisPolitics.com tallied nearly $1.3 billion in spending proposals Evers included in his speech. The biggest chunk was $500 million to address mental health, while he also proposed more than $360 million to make child care more affordable and another $100 million to help address PFAS.

Now, signs of a looming debt crisis among U.S. consumers are beginning to flash, and it is a triple whammy: credit card balances are at an all-time high, annual percentage rates (APRs) are up and more consumers are taking on debt than in 2021.

Discover Financial Services CFO John Greene issued an ominous warning last week, noting a sharp uptick in delinquencies. “In the card portfolio, the net charge-off rate of 2.37% was 87 basis points higher than the prior year and 45 basis points higher sequentially,” he said during the firm’s fourth-quarter earnings call.

The Federal Reserve Bank of New York recently reported a 15% year-over-year increase in total credit card balances for the third quarter of 2022, which amounts to the largest surge in more than 20 years.

A new report from CreditCards.com released Monday shows nearly 3 out of 4 (72%) credit card debtors added to their balances over the past year. Nearly half (48%) took on additional debt due to rising costs, while 34% saw their balances jump due to rising interest rates. Twenty-four percent reported having a disruption in household income.

According to the company’s sister site Bankrate.com, there are also more people carrying debt, too. Some 46% of credit card holders are carrying debt from month to month, up from 39% a year ago.

Starting Sunday, January 22, the USPS plans to increase prices of some postage by 4.2%, which generally amounts to a few cents per stamp. The cost of a Forever stamp would go up 3 cents, from 60 cents to 63 cents – the third price hike in about a year.

Forever stamps, regardless of when they are purchased, will be accepted in perpetuity – hence the name. That means if you have some already, even if you bought them at a lower price, they will still be accepted to mail letters next year and the year after that. It also means you can buy stamps in bulk now to avoid paying more after January 22.

The USPS is also increasing the cost of sending Priority Mail by about 5.5%. Priority Mail Express will get 6.6% more expensive, and First-Class Package Service prices are set to increase by 7.8%. Priority Mail commercial rates will bump up about 3.6%.

At the same time, the cost of some Priority Mail shipping materials, including flat-rate envelopes and boxes, will go down. Using a flat-rate box or envelope lets you send a package of up to 70 pounds to any U.S. state for a flat fee.

A constitutional amendment proposal to reform Wisconsin’s cash bail system is now headed to voters in April’s election.

Following the Republican-controlled Senate’s approval of the measure earlier this week, the GOP-dominated Assembly on Thursday passed the resolution. The measure passed 73-22, with 10 Democrats joining Republicans in support.

Under the amendment, judges would be able to consider the “totality of the circumstances” in setting bail— including the seriousness of the crime, previous convictions of the accused and the need to protect the community from serious harm. Currently, they can use only one factor: the likelihood a defendant will show up to his court date.

“Violent criminals should not be given unspoken approval by the system to repeatedly victimize our communities,” said Rep. Cindi Duchow (R-Delafield), who authored the proposed amendment. “Judges and law enforcement officers see the revolving door of arrests, low bail, release, and re-arrest, and they are asking for change.”

It takes passage in two consecutive legislative sessions to send a constitutional amendment question on to voters. Thursday’s vote marked the final passage needed to send the question to the voters.

U.S. retailers and restaurants made $677.1 billion in sales in December, down 1.1 percent from a revised November sales total of $685 billion, according to the Census Bureau. It was the second consecutive monthly decline in retail sales, which are adjusted for seasonal shifts but not inflation.

“The final retail sales report of 2022 was the weakest of the year,” Kayla Brunn, an economic analyst at Morning Consult, wrote in a Wednesday analysis.

When adjusted for inflation, “retail sales declined year-over-year – a development that is especially disappointing given that last December was being impacted by the spread of the omicron variant,” Brunn wrote.

The steady drop of gasoline prices in December drove part of the overall slump in retail sales last month. Sales at gasoline stations fell 4.6 percent last month even amid the rush of holiday travel, as lower global demand and easing energy supply constraints helped bring down prices at the pump.

Department stores also took a serious hit last month despite the promise of the holiday shopping season, with sales plunging 6.6 percent. Sales at furniture and home goods stores, auto dealers, clothing stores, electronics and appliance stores, and restaurants also fell in December.

Only sporting goods and hobby stores, building material and supply stores, and grocery stores saw sales increase in December.