Legislation targets transitional veteran employment
By The Denmark News
MADISON – A new bipartisan bill in Madison would give state subsidies to businesses offering transitional jobs to veterans.
The proposed program, Hire Heroes, would provide subsidies for wages, Social Security and Medicare taxes, state and federal unemployment insurance, as well as workers’ compensation insurance to companies that hire veterans who have been unemployed for at least four weeks. Veterans must be at least 18 years old.
The proposed legislation requires the Department of Workforce Development (DWD) to allocate $400,000 every fiscal year to administer the program. In the department’s initial review, it was unable to pinpoint the financial should the program go into effect outside of a one-time cost of $18,000 to develop IT support.
The state Department of Children and Families (DCF), which administers drug screening for various work programs, was also unsure of the exact fiscal impact. In the program, veterans are required to pass substance abuse and drug screening qualifications before becoming eligible for aid, though no additional funds for the presumed influx of tests is provided in the bill.
DCF’s fiscal estimation on Hire Heroes reads, “It is assumed that the Hire Heroes program would serve 40 veterans annually. Therefore, testing costs could total up to $1,000 annually.”
Current drug screening for state benefits also requires DCF to administer treatment if circumstances apply. Costs for this service vary depending on the health insurance of the individual. Uncertain as to the insurance policies of the veterans who may seek the program’s assistance, DCF was unable to determine if the program would fit within or drastically raise its operating budget.
“If participants do not have some other type of medical coverage, if participants require treatment, and if DCF is responsible for treatment costs, the fiscal effect would increase substantially,” according to DCF’s estimation.
Employers under the bill would not be able to use the program to reduce their workforce or fill gaps left by layoffs, strikes or other labor disputes. Hire Heroes also limits participants to 1,040 hours and while employers could pay more than the state minimum wage of $7.25 per hour, state subsidies would only apply to the minimum level.
As is the intent of the bill, employers could maintain the labor they receive through Hire Heroes after the veteran’s subsidized hours are completed. Preference would be given to those whose house-hold income is less than 60 percent of the state median ($55,638 in 2015).
Rep. André Jacque (R-De Pere) is one of the bill’s co-authors and says it would help address a current gap.
“(Currently) there’s some eligibility requirements that include if veterans have kids or if they are married, but there’s some guys who get out and neither have kids nor are married,” Jacque told The Denmark News. “There needs to be something that will help give them opportunities and help them reintegrate.”
The legislation, SB 338 and its Assembly version AB 422, is supported by bipartisan area lawmakers including Jacque, Eric Genrich (D-Green Bay) and Sen. Dave Hansen (D-District 30).
“If anything, we need more programs like Hire Heroes,” Hansen told The Denmark News. “Veterans should not be limited in their eligibility to receive help finding meaningful employment because they don’t have children or don’t meet a specific age requirement as is the case under current law. This bill will make sure that those who have served our nation don’t face these barriers when trying to get the help they need to find work.
Hansen is a member of the Senate Committee Transportation and Veterans Affairs, which voted 5-0 in support of SB 338 on Monday, Oct. 24. It is likely to be included in the upcoming Senate calendar.