News of the Day

Yesterday, the Social Security Board of Trustees released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2034, one year earlier than projected last year, with 78 percent of benefits payable at that time.

The OASI Trust Fund is projected to become depleted in 2033, one year sooner than last year’s estimate, with 76 percent of benefits payable at that time. The DI Trust Fund is estimated to become depleted in 2057, eight years earlier than last year’s estimate, with 91 percent of benefits still payable.

In the 2021 Annual Report to Congress, the Trustees announced:

• The asset reserves of the combined OASI and DI Trust Funds increased by $11 billion in 2020 to a total of $2.908 trillion.
• The total annual cost of the program is projected to exceed total annual income, for the first time since 1982, in 2021 and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2021. Social Security’s cost has exceeded its non-interest income since 2010.
• The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – one year earlier than last year’s projection. At that time, there would be sufficient income coming in to pay 78 percent of scheduled benefits.

“The Trustees’ projections in this year’s report include the best estimates of the effects of the COVID-19 pandemic on the Social Security program,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “The pandemic and its economic impact have had an effect on Social Security’s Trust Funds, and the future course of the pandemic is still uncertain. Yet, Social Security will continue to play a critical role in the lives of 65 million beneficiaries and 176 million workers and their families during 2021.”

The University of Wisconsin–Madison is the highest ranking national public university and fourth overall in Washington Monthly’s 2021 College Guide and Rankings.

UW–Madison ranked seventh in research expenditures, seventh in the number of science and engineering PhDs awarded, and 25th in faculty accolades (number of faculty receiving prestigious awards and number who are members of the National Academies, relative to the number of full-time faculty). On the “best bang for the buck” list of national universities, it ranked fourth.

The university also performed well in the category of service, ranking 11th in the number of alumni, relative to college size, who go on to serve in the Peace Corps and AmeriCorps. UW–Madison is among the top 10 schools with the highest percentage of degrees awarded in service-oriented majors, including health, education and social work.

On Friday, Governor Tony Evers announced that the state of Wisconsin’s bond rating has been upgraded by multiple agencies. Kroll Bond Rating Agency upgraded its long-term rating to AAA from AA+ for General Obligation (GO) Bonds, and S&P Global Ratings raised its long-term rating to AA+ from AA.

The upgraded ratings will provide the state of Wisconsin an avenue to borrow money at lower interest rates, which will result in lower debt service costs to Wisconsin taxpayers. The AAA rating from Kroll Bond Rating Agency is the first time the state’s underlying bond rating has been at the AAA-level by any rating agency since 1982. Kroll had last upgraded the state’s rating to AA+ in 2017, and S&P had last upgraded the state’s rating to AA in 2008.

In upgrading Wisconsin’s rating, Kroll Bond Rating Agency cited, the state’s “substantial liquidity, evidenced by a near tripling of budget reserves over the past three years; continuing, healthy revenue growth, despite substantial tax cuts; and an ongoing, post-COVID-19 recovery, fueled by a mature and expanding economy and favorable business climate.” S&P Global Ratings noted it expects the state “will continue to take responsive budgetary actions” to ensure the state’s fiscal stability, specifically pointing to the governor’s authority to responsibly manage the state’s budget. The state also maintains its ratings from Moody’s Investors Service at Aa1 and Fitch Ratings at AA+.

The United States Supreme Court has struck down President Biden’s eviction moratorium, ruling that it can only be extended via action from Congress.

Landlords in Alabama and Georgia who challenged the earlier evictions ban quickly returned to court, where they received a sympathetic hearing. U.S. Judge Dabney Friedrich, an appointee of former President Donald Trump, said the new moratorium was beyond the CDC’s authority.

Most evictions for unpaid rent have been halted since the early days of the pandemic and there are now more than 15 million people living in households that owe as much as $20 billion in back rent, according to the Aspen Institute.

A majority of single-family rental homeowners have been impacted, according to a survey from the National Rental Home Council, and 50% say they have tenants who have missed rent during the pandemic.

Smaller landlords with fewer than four units, who often don’t have the financing of larger property owners, were hit especially hard, with as many as 58% having tenants behind on rent, according to the National Association of Realtors. More than half of back rent is owed to smaller landlords.

Landlords, big and small, are most angry about the moratoriums, which they consider illegal. Many believe some tenants could have paid rent, if not for the moratorium. The $47 billion in federal rental assistance that was supposed to make landlords whole has been slow to materialize. By July, only $3 billion of the first tranche of $25 billion had been distributed.

Yesterday, the Wisconsin Department of Administration (DOA) announced it is accepting applications for a $15 million grant program designed to assist tourism, convention, and events organizations that were impacted by the COVID-19 pandemic. The Destination Marketing Organization (DMO) Grant Program will provide financial support for destination marketing organizations that promote and develop tourism activities in Wisconsin as part of Wisconsin’s continued bounce back from the pandemic.

The DMO grant program will provide funding of up to $1,000,000 per eligible organization, based on expenses incurred between March 3, 2021, and December 31, 2022.

DMO Grants will be administered by the Wisconsin Department of Administration (DOA). Applications for the program are open now through September 29, 2021. Informational webinars and program FAQ to follow. Grant recipients will be announced later this fall.

Additional information, including grant program criteria, is available on the Destination Marketing Grant website.

Orders for big-ticket items slipped last month as manufacturers continued to navigate a supply chain crunch that has resulted in higher materials costs.

New orders for manufactured durable goods in July fell 0.1% to a seasonally adjusted $257.2 billion, according to the Census Bureau. Excluding transportation, new orders decreased 0.7%. They fell 1.2% when excluding defense.

Supply chain disruptions that were caused by factories shutting down in an attempt to help slow the spread of COVID-19 resulted in unfilled orders increasing for a sixth straight month, rising 0.3% to $1.225 trillion. Unfilled machinery orders, which have increased 16 straight months, rose by $2.3 billion to $109.2 billion.

Gov. Tony Evers is turning to cash incentives to persuade more Wisconsin residents to get vaccinated against COVID-19 as a more contagious variant of the virus threatens the state.

Evers announced a new program Monday that would distribute through Labor Day $100 Visa gift cards to anyone in the state who gets their first shot of a vaccine from a Wisconsin provider between August 20 and September 6.

The governor told reporters at a news conference at Winnebago Health Department in Oshkosh that he had been skeptical of creating an incentive program but changed his mind after seeing results of a new program in Michigan that provides cash prizes ranging from $50,000 to $2 million.

“I’ll be quite frank with you, I was one of the skeptics of the discussion, but I saw how well this particular program worked in the state of Michigan,” he said. “Time for me to move beyond that and do the incentive. It is really important for us to make sure this school year gets off to a good start, and this is one of the ways to do that is to make that happen.”

The gift cards will be mailed to applicants and may take up to six weeks to be distributed. To receive the card, eligible Wisconsin residents should fill out a form available at 100.wisconsin.gov, which will be used to verify the vaccine was administered.

Wisconsin farmers will be receiving another $50 million in direct payments later this fall.

Governor Tony Evers announced the new funding Wednesday for the Wisconsin Farm Support Program, which the state created last year to help farmers recover from the impacts of the COVID-19 pandemic.

Last year, the state distributed $50 million in direct payments to farmers who applied through the state Department of Revenue. Producers who made between $35,000 and $5 million in gross income on their 2019 tax filings were eligible for a payment up to $3,500.

Officials say the application period will open after the fall harvest to give farmers enough time to learn about the program and apply. DATCP and the DOR will work together to administer the program.

Federal officials are extending into January a requirement that people on airline flights and public transportation wear face masks, a rule intended to limit the spread of COVID-19.

The Transportation Security Administration’s current order was scheduled to expire Sept. 13. An agency spokesman said Tuesday that the mandate will be extended until Jan. 18.

The TSA briefed airline industry representatives on its plan Tuesday and planned to discuss it with airline unions on Wednesday. The mask rule also applies to employees on planes and public transportation.

Individual airlines declined to comment on the Biden administration’s decision, and their trade group, Airlines for America, said only that U.S. carriers will strictly enforce the rule. A broader group, the U.S. Travel Association, said the extension “has the travel industry’s full support.” The largest union of flight attendants said the move will help keep passengers and aviation workers safe.

The cofounder of the electric automaker partnering with Foxconn to possibly build vehicles in Racine County wants a Wisconsin law changed.