News of the Day

The Public Service Commission of Wisconsin (PSC or Commission) is encouraging individuals to identify inaccuracies and challenge the Federal Communications Commission’s (FCC) draft of the national broadband map by January 13, 2023. Since unveiling the pre-production draft of the new broadband in November, the FCC has called on consumers, state, local and Tribal government entities, and other stakeholders can help verify the accuracy of the data.

The new map is the most granular and up-to-date federal map of where broadband is and is not available across the country. The FCC’s new broadband maps will be used to determine the allocation of Broadband Equity, Access and Deployment (BEAD) funds that Wisconsin will receive to build broadband infrastructure.

The new map is available at https://broadbandmap.gov/. Residents can type their address and check the map. If the information is inaccurate, residents can submit a challenge by filling out the Availability Challenge Form. Instructions are available at How to Submit an Availability Challenge on the FCC website.

On December 12, Governor Tony Evers and PSC Chairperson Valcq announced the state will receive more than $5 million to begin planning for the deployment and adoption of affordable, equitable, and reliable high-speed internet in Wisconsin through the BEAD and Digital Equity Act, under the Bipartisan Infrastructure Law. Wisconsin could expect an allocation of $700 million to $1.1 billion for broadband expansion under BEAD, depending on the FCC’s mapping data.

The PSC’s Wisconsin Broadband Office (WBO) submitted challenges to over 7,000 locations in the state, meaning the WBO identified homes and business that are missing from the map completely. But now, public participation in the availability challenge is essential. Wisconsinites’ input will improve the accuracy of the map and result in federal funding for broadband being targeted to the areas of Wisconsin that need it most.

The FCC recently published a National Broadband Map Outreach Toolkit with materials that are available for public use. The PSC’s Wisconsin Broadband Office is available to answer questions and share resources to assist individual in challenging the FCC map PSCStatebroadbandoffice@wisconsin.gov.

Consumers pulled back on spending in November, the Commerce Department reported Thursday. Retail sales for the month declined 0.6%.

The pullback was widespread across categories. Furniture and home furnishings stores reported a decrease of 2.6%, building materials and garden centers were off 2.5%, and motor vehicle and parts dealers dropped 2.3%.

Even with declining gas prices, service stations sales were down just 0.1%.

Online sales also decreased, falling 0.9%, while bars and restaurants increased 0.9%, and food and beverage stores rose 0.8%.

The Federal Reserve reinforced its inflation fight Wednesday by raising its key interest rate for the seventh time this year and signaling more hikes to come. But it announced a smaller hike than it had in its past four meetings at a time when inflation is showing signs of easing.

The Fed made clear, in a statement and a news conference by Chair Jerome Powell, that it thinks sharply higher rates are still needed to fully tame the worst inflation bout to strike the economy in four decades.

The central bank boosted its benchmark rate a half-point to a range of 4.25% to 4.5%, its highest level in 15 years. Though lower than its previous three-quarter-point hikes, the latest move will further increase the costs of many consumer and business loans and the risk of a recession.

More surprisingly, the policymakers forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023. That suggests that the Fed is poised to raise its rate by an additional three-quarters of a point and leave it there through next year. Some economists had expected that the Fed would project only an additional half-point increase.

The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, the Labor Department reported Tuesday.  Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis.

Falling energy prices helped keep inflation at bay. The energy index declined 1.6% for the month, due in part to a 2% decrease in gasoline. Food prices, however, rose 0.5% and were up 10.6% from a year ago. Even with its monthly decline, the energy index was higher by 13.1% from November 2021. Shelter costs, which make up about one-third of CPI weighting, continued to escalate, rising 0.6% on the month and now up 7.1% on an annual basis.

Used vehicle prices, which had been a major contributor to the initial inflation burst, fell 2.9% for the month and are now down 3.3% from a year ago. As recently as February, the used cars and trucks index was up more than 40% on an annual basis, the result of higher demand as a microchip shortage caused a backlog in new car production.

Medical care services costs also declined 0.7% on a monthly basis and were up 4.4% annually.

Property owners will pay $78.7 million more in school taxes this year, even though the state budget signed last summer aimed to drive down the annual bills.

The Wisconsin Policy Forum cited the hundreds of school referendum that have passed since the 2021-23 budget was signed as one reason for the 1.5 percent increase in property taxes statewide to $5.48 billion

The group noted the increase is relatively modest when considering several factors, including the rate of inflation.

Still, the Legislative Fiscal Bureau in a June 2021 memo projected that school levies would fall by 2.6 percent on the bills sent out a year ago and 1.9 percent this year. Instead, they went up 0.3 percent last year and 1.5 percent this year.

In all, 219 districts will see their levies go up on this December’s bills, 186 will see decreases and 16 will see them remain the same.

It is the 11th straight year that statewide school property taxes will rise.

According to the report, voters have approved 456 referendum questions since 2018. That includes 246 for operating budgets and 210 for capital projects.

Wisconsin’s 130 state-chartered banks continue to demonstrate solid financial performance as of September 30, 2022, according to data released today by the Wisconsin Department of Financial Institutions (DFI).

Total assets of Wisconsin’s state-chartered banks stand at more than $67.1 billion through September 30, 2022, down from $67.8 billion reported September 30, 2021. Despite rising interest rates, the net interest margin is holding steady, decreasing slightly from 3.35% as of September 30, 2021, to 3.33% as of September 30, 2022. Net loans have increased 5.1% from September 30, 2021, up $2.2 billion.

In the twelve months ending on September 30, 2022:

• The capital ratio remained satisfactory at 9.38% compared to 10.97% in September 2021;
• The past due ratio improved to 0.56% from 0.76% in September 2021;
• Net operating income was over $594.3 million, but down from $679.4 million in September 2021 due, in part, to the end of the Paycheck Protection Program (PPP) fee income and secondary market income;
• The return on average assets ratio showed a decline to 1.19% from 1.39% in September 2021; and
• Bank liquidity remained adequate but was impacted by the increase in the loans to assets ratio at 68.89% compared to 64.82% in September 2021.

“As interest rates continue to rise and economic uncertainty persists, Wisconsin’s state-chartered banks are displaying sound decisions and financial performance through the third-quarter of 2022,” said DFI Secretary-designee Cheryll Olson-Collins. “Overall, Wisconsin’s state-chartered banks are financially stable and a source of strength for the economy.”

Last week, the Centers for Medicare and Medicaid Services (CMS) approved Wisconsin’s application for an extension of the Section 1332 State Innovation Waiver (1332 waiver) which has allowed the successful operation of the Wisconsin Healthcare Stability Plan (WIHSP). With this extension, WIHSP will be able to operate under the 1332 waiver for an additional five years through Plan Year 2028.

WIHSP is a reinsurance program that covers a portion of high-cost enrollee claims within certain parameters. The program is funded with a sum sufficient state appropriation and federal pass-through funds totaling $230 million per year.

An actuarial analysis of WIHSP found that the average premium paid by Wisconsin enrollees on the individual health insurance market was reduced by approximately 13.2% due to the program. The analysis also found that the program led to an increase in enrollment. During the 2022 Open Enrollment Period, 212,209 Wisconsinites signed up for health insurance on HealthCare.gov- Wisconsin’s highest enrollment since the 2018 Open Enrollment Period.

“Expanding access to high-quality, affordable health insurance coverage has been a priority for Governor Evers and it is critical for the overall well-being of our state. WIHSP is one of our agency’s most important tools in that effort,” said Commissioner Houdek. “This five-year extension will allow us to build on past success to ensure that more Wisconsinites can get the health coverage they need.”

The Wisconsin Public Service Commission approved overall electric rate hikes of 8.8 percent for We Energies and 9 percent for Wisconsin Public Service, according to commission staff. The increase is higher than what utilities initially proposed, but less than changes they suggested later that would have shifted more costs to residential customers.

This fall, the utilities owned by Milwaukee-based WEC Energy Group asked for electric rate hikes of 13 percent for We Energies residential customers and a nearly 15 percent increase for Wisconsin Public Service, or WPS, ratepayers. That increase would have cost the average homeowner at least $14 more per month beginning in January.

Now, We Energies residential customers will see a nearly 11 percent increase that will cost them $11 to $12 more per month, according to preliminary figures from the commission and utilities. WPS customers will spend $9 more per month.

For natural gas, commission staff estimate rates will increase 6.2 percent, or roughly $47 annually, for Wisconsin Gas customers and 9.5 percent, or roughly $63 annually, for Wisconsin Electric Gas customers. WPS gas rates will climb 7 percent overall. With heating bills slated to rise, the utilities expect gas customers to pay $20 to $30 more per month this winter, including the rate hikes.

Utilities are raising rates as they face increasing costs due to inflation, clean energy projects and plans to increase the resiliency of its system in the face of extreme storms. Brendan Conway, spokesperson for the utilities, said they’re still evaluating the decision. Even so, he said typical bills for residential customers will remain under the national average.

The commission is expected to finalize and approve a written order on its decision this month. We Energies serves more than 1.1 million electric customers and 1.1 million natural gas customers in Wisconsin. Wisconsin Public Service provides electricity to 457,000 electric customers and 338,000 natural gas customers.

The Worker’s Compensation Advisory Council (WCAC) is seeking suggestions from stakeholders and the public for its next slate of recommended legislative changes.

The Council will host a hybrid public hearing from 3 to 6 p.m. on Thursday, December 15, 2022, using WebEx web conferencing technology and in person at 201 East Washington Avenue, Madison, Wisconsin. In addition, written comments may be submitted through Monday, January 16, 2023.

“Since 1911, a citizen advisory council has played an instrumental part in amending the Wisconsin Worker’s Compensation Act, which has served as a national model for state worker’s compensation programs, and the Council’s work is further supported through additional feedback from the public,” DWD Secretary-designee Amy Pechacek said. “We welcome public engagement at the hearing and through the public comment period. We also greatly appreciate the collaborative work of the Council, which includes equal numbers of employee and employer members who work together for the benefit of our state’s worker’s compensation program.”

Submit Written Comments: Written comments may be submitted to Steve Peters, Chair, Worker’s Compensation Advisory Council, 201 E Washington Avenue, Room C100, Madison, WI 53703, or via email to: WCAdvisoryCouncil@dwd.wisconsin.gov. The submission deadline for written comments is Monday, Jan. 16, 2023.

Attend the Public Hearing

• TIME: 3 p.m. to 6 p.m.
• DATE: Dec. 15, 2022
• LOCATION: 201 E. Washington Ave, Madison, Conference Room H103
• ATTEND VIRTUALLY: Register via WebEx. You must register in advance to attend virtually.

Local governments across Wisconsin are dealing with increasing debt burdens, according to a new report from the Wisconsin Policy Forum.

The report found that total debt owed by the state’s cities, counties, villages and towns rose by 5.4 percent to $11.04 billion in 2020 — the highest amount on record.

Cities including Milwaukee, Madison and Kenosha hold the most debt, but Wisconsin towns have seen the fastest growth in borrowing since 2015.

The Policy Forum looked at Wisconsin Department of Revenue data from more than 1,920 local governments from 2000 to 2020. According to the report, on December 31, 2000, local governments owed a total of $5.23 billion — or $7.86 billion in 2020 dollars. Twenty years later, those same local governments owed $11.04 billion — a more than 40.5 percent increase after adjusting for inflation.

The report points to several reasons why borrowing has grown over the last two decades, including a need to replace aging infrastructure and upgrade technology across the state. Interest rates have also been extremely low. The report also points to state law that incentivizes taking on more debt.

Levy limits matter for debt because property taxes used to pay for a local government’s operating budget are constrained by the levy limit, but property taxes used to make payments toward debt are outside the levy limit.