On May 25 I had the opportunity to testify before the Senate Committee on Financial Institutions and Revenue on behalf of Senate Bill 246, a bipartisan proposal I introduced with Rep. Tod Ohnstad (D-Kenosha), that addresses an issue that affects almost 20,000 retired federal employees across Wisconsin. These employees participated in the old (pre-1984) U.S. Civil Service Retirement System, which was not covered by Social Security, and their pensions are taxable. On the other hand, federal employees who entered federal service under the current federal retirement system are covered by Social Security, which is exempt from Wisconsin income tax. SB 246 and its companion, Assembly Bill 223, eliminate this disparity in a two-step process: CSRS pensions would be exempt up to $8,000 in tax year 2021, and 100% exempt in tax year 2022 and beyond.
On May 26, the Assembly workforce development committee, on which I serve, held a hearing on Assembly Bill 336, a bill I cosponsored that would return Wisconsin unemployment benefits to pre-COVID levels by ending Wisconsin's participation in the several federal supplemental programs that arose in response to the pandemic.
Wisconsin businesses are hurting for employees, but while Wisconsin has reinstated the work-search requirement, the federal supplements continue to act as a disincentive to find a job. Almost half of the states have already withdrawn from the federal programs in recent weeks, and I believe it makes sense for Wisconsin to join them.
Budget Update
The special session called by Governor Evers came and went without incident on May 25. Legislative leaders sent the Governor a letter explaining that there is no Medicaid gap in Wisconsin - BadgerCare covers people below the federal poverty line, and households above the poverty line already qualify for subsidized coverage on the federal exchanges. In other words, Medicaid expansion is not necessary in Wisconsin.
Wisconsin's public schools have received an unprecedented amount of federal assistance over the past year, on top of the historically high levels of state funding included in the 2021-2023 state budget. The Finance Committee approved additional state funding for K-12, including increases for special education and mental health. In a Section 13.10 meeting before the budget meeting, the Finance Committee directed almost $115 million in federal funds to a grant program for schools that were in person for at least 50% of the 2020-2021 school year. These schools incurred significant costs to provide in-person instruction safely, so the additional assistance - at least $781 per pupil - makes sense.
The Finance Committee will next meet on June 2, when it will take up the Department of Workforce Development, the Environmental Improvement Fund, and the Department of Safety and Professional Services, as well as portions of the Department of Agriculture, Trade, and Consumer Protection and the Department of Natural Resources.The budget papers for these agencies are available on the Legislative Fiscal Bureau's website.
Monday, May 31, is Memorial Day, a day when Americans from all walks of life come together to remember and honor the men and women who have made the ultimate sacrifice in defense of our nation. Please join me in honoring our nation's fallen and in keeping them - as well as our veterans and those who currently serve - in our thoughts and prayers.
My Capitol office will be closed on May 31 in observance of the holiday. Please have a safe holiday weekend.
Legislative Website
If you are interested in learning more about bills that I have authored, co-sponsored, or voted on, please click here. This link will take you directly to my Wisconsin State Legislative page. Also, if you are interested in viewing my office website, click here.
If you have any comments regarding the subject of this E-Update, please feel free to contact me.
Rep. Dave Armstrong State Capitol, Room 409 North PO Box 8952 Madison, WI 53708 Toll-Free (888) 534-0075 or (608) 266-2519 Rep.Armstrong@legis.wi.gov | |
