Ending Federal UI Supplement

I joined a number of my Assembly colleagues this week in passing AB 336, which requires the governor’s administration to end our state’s participation in the enhanced federal unemployment benefit program.

I have heard from numerous businesses in my district that are having a difficult time finding employees and, as a result, cannot adequately serve their customers. While several factors may be playing a role in our state’s significant labor shortage, terminating our involvement in the federal unemployment program will give us the most effective and quickest outcomes.

The federal supplement is supplying the unemployed with an additional $300 per week on top of state benefits. Because the federal payments are not taxed, those receiving the full unemployment benefit are currently making the equivalent of more than $22 per hour. The sole purpose of the unemployment insurance program is to provide a temporary safety net for those who are in between jobs.

I am sympathetic to the fact that the COVID-19 pandemic has created unprecedented challenges for our state, but it is evident that, with the help of the vaccine, we are finally turning the corner. Instead of implementing or continuing programs that discourage people from working, we need to find ways to improve workforce participation so we can adequately address our labor shortage and grow our economy.

AB 336 also ensures that individuals who file for unemployment are actively searching for a job to be eligible to collect benefits. The governor waived that requirement last year through an emergency rule.

If AB 336 is signed by the governor, Wisconsin would join at least 25 other states in ending participation in the federal program.

According to an SR Poll Results report, 71 percent of voters favor ending the enhanced federal unemployment payments. That includes 67 percent of independents and 59 percent of Democrats.

If you would like to watch my floor speech on the bill, please click on this link.

UW-Green Bay Facility

I am pleased the Joint Finance Committee has approved a capital budget that includes replacing the aging Cofrin Library at UW-Green Bay with a new technology and innovation center.

Supporting this particular budget motion was important to me because of the impact UWGB has on our local communities. The campus has proven to be a sound investment for our region and a strong economic driver for our entire state.

In the last few years, UWGB has opened an engineering school and the STEM Innovation Center. Educating local kids in engineering and technical fields is vital to the continued growth of the Green Bay area as a major manufacturing hub.

UWGB was the fastest growing school in Wisconsin last year and was one of just three campuses to expand consistently over the past six years. By spending the least amount per student compared to all other campuses, UWGB is considered the most efficient university in the UW System.

Despite those successes, UWGB continues to receive less funding than other schools. Because of that, its current student capacity sits at .94 percent of the regional population, which hinders the potential for growth. The average student capacity in Wisconsin is 2 percent.

I believe the Cofrin Technology and Innovation Center will be a great asset in helping UWGB attract new students and ensure it has the resources it needs to offer a high-quality education. The new center will give UWGB the ability to house actual classrooms with modern equipment. 

There are also several safety concerns with the old Cofrin Library. Just to name one, school officials are telling us that students have almost been hit by bricks that have fallen from several floors up.

It is well past time that we make this investment so UWGB can become an even more attractive place to study. 

Revenue Projections

I am thrilled to give you some encouraging news regarding our state's finances.

The nonpartisan Wisconsin Legislative Fiscal Bureau announced earlier this week that state tax revenues are projected to grow by $4.4 billion more than previously expected.

Being a watchful steward of your tax dollars is a responsibility I have always taken very seriously, and I am glad to see that our efforts are helping us get to this point.

According to the LFB, the primary factor in the higher estimate is the federal stimulus package. The LFB says the state also benefited from "unprecedented" general fund tax collections in April and May of this year. Furthermore, we are experiencing the largest increase in sales tax revenue in nearly 35 years.

While we are very pleased at this potential surplus, it must be understood that it is not a sign that our economy has fully recovered. When people received stimulus checks, they spent them, thereby driving up tax receipts. Sustainable economic recovery will depend on having our entire workforce return to their jobs.

The Legislature now has to decide on the best ways to use the additional funds. Some of the ideas already being proposed include tax cuts, reforming the state's tax code and boosting education spending. State law also requires that nearly half of any surplus be deposited into the Wisconsin Budget Stabilization Fund, or better known as our "rainy day" account.

To view the full report from the LFB, please click here.