WED AM News: DWD’s UI modernization effort proceeding on time, under budget; Lawmakers raise concerns about EV charging bill

— The Department of Workforce Development’s ongoing UI improvement effort is proceeding on time and under budget, state officials said. 

DWD Secretary Amy Pechacek yesterday said the agency has been making “unprecedented changes to modernize and strengthen” Wisconsin’s unemployment insurance system and related services. 

“Our ultimate vision is a system of modern, end-to-end services for DWD customers, including claimants and employers,” she told reporters during an online briefing. 

The agency is now about halfway through the four-year modernization project, which includes automating manual processes, “plain-language” changes and design updates to improve accessibility, moving systems from an outdated computer system to a cloud-based program and more. As part of this effort, the agency contracted with Madison-based software developer Flexion in September 2021.

“We do have enough funds, we are within budget to complete the entire project,” Pechacek said, noting the agency has been successful at obtaining additional grant dollars since the initial $80 million was made available for the effort. 

For example, DWD in September said it wanted to use an additional $11.25 million in federal funding for the UI modernization plan. Unemployment Insurance Division Administrator Jim Chiolino yesterday said those funds have been earmarked for improving the agency’s UI employer portal. 

“Employers have to touch several parts of our agency. They have to file the taxes, they have to then engage with our benefits people. And with appeals, if they’re filing appeals or they’re subject to appeals,” he said. “So we currently have no place for them to do all of that in one place. It’s scattered, and this will hopefully by the end of this project send employers to one place.” 

Yesterday’s briefing included a video highlighting some of the changes that have already been made, such as allowing DWD staff to securely communicate and exchange documents with employers through a new messaging feature. 

Pechacek said efforts to keep the UI system up-to-date won’t end with the modernization effort, noting the agency will budget for further updates and possible changes going forward. 

“We know that that original $80 million and some of these other grants that we’ve gotten will get us fully modern in the next two years,” she said. “But we are going to look at this to continue annually, what else do we need to update on an ongoing basis that we need to continue to budget for, to make sure that we never find ourselves as a state 50 years behind in technology again.” 

See the latest quarterly report on the UI effort: https://dwd.wisconsin.gov/uifeedback/modernization/pdf/dwd-doa-act4-report-oct-2023.pdf 

— Lawmakers have raised concerns a bill aimed at increasing EV charging stations would restrict travelers from charging their cars while camping in state parks and could prevent recovery of lost gas tax revenue. 

The comments came during a Senate Utilities and Technology Committee public hearing on a pair of bills aimed at allowing Wisconsin businesses to take advantage of the $78.6 million in federal funds made available through the sweeping $1 trillion infrastructure law. One bill would allow convenience stores, grocers and others to start selling electricity to electric car owners without being regulated as a utility. 

The bill would also require charging station owners to sell current by the kilowatt-hour and create a $0.03 tax per kWh at level 3 fast chargers, the fastest charging option, to help recover lost revenue from a reduction in gasoline sales. 

The other bill, SB 792, would authorize the Department of Transportation to accept the federal funds and start issuing grants to private businesses for fast charging station construction. 

Sen. Romaine Quinn, R-Cameron, questioned if the proposed tax is enough to recoup gas tax funds that go toward road improvement projects, noting many EV owners will likely charge their cars at home. That means they won’t be using level 3 fast chargers. 

“None of us ever want to raise the gas tax again, we’re never going to want to raise this again,” he said. “You know, out of the gate, is that where it should be?”

Bill author Sen. Howard Marklein replied, “that’s a brilliant question,” but couldn’t say how much the tax would generate. 

EV chargers right now bill users by the hour, but the federal government requires businesses to charge by the kWh in order to accept the National Electric Vehicle Infrastructure funds included in the federal infrastructure law. 

Marklein also noted the bill would help private businesses and smaller municipalities take advantage of the new EV technologies because giving EV owners more options would draw them to Wisconsin, where they would spend 20-30 minutes at a fast charger. He said many EV owners would likely spend that time exploring wherever they end up charging, which could lead to more tourism-related sales. 

See more coverage at WisPolitics: https://www.wispolitics.com/2023/tue-pm-update-vos-says-republicans-not-done-yet-targeting-dei-after-approving-uw-pay-raises/ 

— The average time it takes the DSPS to issue a job license decreased considerably even as the number of credentials issued jumped 51% in the most recent fiscal year compared to three years earlier, according to a new audit.

But the Legislative Audit Bureau found the agency doesn’t have comprehensive written policies on administering credentials and complained the Department of Safety and Professional Services either provided incomplete data or failed to turn it over on a timely basis over the course of the review.

DSPS Secretary Dan Hereth, though, pushed back on the assertion, writing in a response to the LAB that his agency had made clear that its top priority was processing credentials as quickly as possible and “and we would not allow the audit process to jeopardize our investment in modernizing our credentialing operations.” Hereth added the demands placed on agency staff delayed launching of a third phase in an electronic filing system that has helped speed up processing credentials.

LAB added a response to Hereth’s letter in the report stating the agency hadn’t indicated until last week any delays in the launch of the electronic filing system.

GOP lawmakers approved the review of DSPS early this year amid complaints about how long it took to process licensing applications for a host of careers. GOP legislators were particularly critical of the agency while it was led by Dawn Crim, but have acknowledged improvements since Hereth took over in August 2022. Dems have pointed out delays spiked during the Walker administration as well. 

Meanwhile, the agency has been rebuffed several times in seeking additional staff to process applications as Republicans have pointed to modernization efforts that they expected would improve efficiency on their own.

The co-chairs of the Joint Legislative Audit Committee didn’t immediately respond to requests for comment.

The audit found processing applications:

*took 59.1 days on average in 2022-23 to process health care credential requests, down from 122.7 days the year before.

*took 27.9 days for business credentials, compared to 47.6 days in 2021-22.

*took 17.2 days for trade credentials, compared to 38.4 days the year before.

The report noted the averages were affected by applications that took an unusually long time to process. Looking at the median to issue a credential, it was 49 days for health care credentials. Meanwhile, 78.3% of those credentials in 2022-23 were issued within 90 days.

The drop was, in part, due to the agency using a new electronic application system starting in May 2022 for health care credentials. It expanded that to business credentials in May 2023. It’s the system Hereth referred to in his response to the report that he says was delayed due to the review.

The review also looked at what drove the length of time to issue a credential. On average, 25.5% of the time was attributed to DSPS reviewing submitted information from applicants or third parties; 35% was due to applicants needing to submit required information; and 39.5% of the time was due to the agency and applicant simultaneously waiting on each other.

Read the report: https://legis.wisconsin.gov/lab/media/3685/23-24full_530226.pdf 

— Wages and salaries in Wisconsin are expected to increase 3.5% next year, slightly below the national projection of 4.3%. 

That’s according to the state Department of Revenue’s latest economic forecast, showing wages and salaries this year are expected to rise 5.3% in the state and 6.3% at the national level. 

DOR projects nominal personal income in Wisconsin to grow by 4.1% in 2023 and 4.2% in 2024. Adjusted for inflation, real personal income growth is projected at 0.5% this year and 1.8% next year. 

Employment growth in the state lagged the national level over the first 10 months of this year, with 1.4% growth versus 2.4% growth nationally. 

“Employment growth has been steadily slowing since 2022 and is expected to continue this trajectory, helping to bring the inflation rate back down close to the goal of 2%,” report authors wrote. 

Meanwhile, total nonfarm state employment is projected to grow 1.4% this year and 0.4% next year before flattening in 2025 and 2026, the report shows. By comparison, the U.S. growth projections are 2.3% for this year, 0.7% for 2024 and no further growth in 2025. 

See the full report: https://www.revenue.wi.gov/dorreports/2023-11-wi-forecast.pdf 

— The U.S. Department of Labor is fining the Florence Hardwoods sawmill $1.4 million following the death of a teenage worker earlier this summer. 

In a release yesterday, the federal agency announced the penalty for the Florence-based business, which allowed multiple minors to work on dangerous equipment “without training or following required safety procedures.” 

A 16-year-old employee of Florence Hardwoods died this summer after becoming trapped in a stacking machine on June 29th, according to the DOL release. He was trapped in the machinery until found by others, before being transported to a hospital where he died two days later. 

“There is no excuse for allowing underage workers to operate this type of machinery,” Acting Secretary of Labor Julie Su said in a statement. 

The business has been cited for dozens of federal safety and health violations, the release shows, with OSHA categorizing five of the “willful” citations as “egregious,” the most severe level of violation. 

Along with the financial penalty, Florence Hardwoods has also been placed in the agency’s Severe Violator Enforcement Program, which includes follow-up inspections and other measures such as enhanced settlement provisions and federal court enforcement, according to the DOL website. 

Florence Hardwoods is owned by two logging companies located in Michigan’s Upper Peninsula, according to the company’s website, though the names of those businesses are not specified. The company did not immediately respond to a request for comment. 

See the release: https://www.dol.gov/newsroom/releases/osha/osha20231219 

— A total of 1,674 beds and housing units in Wisconsin will be created or improved thanks to grants announced by the WHEDA Foundation. 

The Wisconsin Housing and Economic Development Authority yesterday announced 53 organizations will receive $2 million in grants for emergency shelters, transitional housing and “extremely” low-income housing. These were chosen from among 96 applicants that requested more than $3.8 million. 

Individual awards range from $9,200 to $50,000, funding the addition of new security and energy efficiency features, improving accessibility at various facilities, replacing roofs and updating heating and cooling systems. 

See the release: https://www.wheda.com/about-wheda/press-room/news/2023/wheda-foundation-announces-grant-recipients-of–$2-million-for-emergency-and-extremely-low-income-housing 

See the list of recipients: https://www.wheda.com/globalassets/documents/about-wheda/foundation-housing-grants/2023/2023-housing-grant-awards.pdf 

<br><b><i>Top headlines from the Health Care Report…</b></i> 

— UW Health and UnityPoint-Meriter announced they are requiring masks to be worn in more areas of the Madison-based hospitals due to a rise in respiratory illness. 

And the DNR has announced a new grant program aiming to help public water systems that haven’t qualified for past funding opportunities address PFAS and manganese contamination.

<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i> 

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#TOP STORIES#

# Following death of a teen this summer, Northern Wisconsin sawmill fined $1.4M for OSHA violations

https://www.wpr.org/northern-wisconsin-sawmill-fined-osha-violations-following-death-teen-summer

# Amazon to Wisconsin Supreme Court: ‘Flex’ drivers are not employees

https://captimes.com/news/business/amazon-to-wisconsin-supreme-court-flex-drivers-are-not-employees/article_29dbc7ba-9b88-11ee-ba2e-bf56a91704f7.html

# Froedtert Health and ThedaCare finalize deal to merge on Jan. 1

https://www.jsonline.com/story/money/business/2023/12/19/froedtert-health-and-thedacare-finalize-deal-to-merge-on-jan-1/71968439007/

#TOPICS#

# AGRIBUSINESS 

– WI specialty crops get $1.12M boost

http://wisconsinagconnection.com/story-state.php?Id=1094&yr=2023 

# ECONOMY 

– USDA partners with Wisconsin to award $27 million to strengthen food supply chain infrastructure

http://wisconsinagconnection.com/story-state.php?Id=1091&yr=2023 

– The backlog for Wisconsin nurses, other professionals to get licenses appears to be clearing

https://www.jsonline.com/story/news/politics/2023/12/19/wisconsin-professional-license-wait-times-improving-audit-shows/71971726007/

– Wisconsin ranked 27th in population growth for 2023

# EDUCATION 

– Raises for around 34K UW workers approved after a nearly 6-month GOP blockade

https://www.wpr.org/raises-around-34k-uw-workers-approved-after-nearly-6-month-gop-blockade

# FOOD & BEVERAGE

– Boost local food biz – $27M WI grants up for grabs

http://wisconsinagconnection.com/story-state.php?Id=1093&yr=2023 

– Le C’s patisserie expands to Middleton with boba and matcha cakes

https://captimes.com/food-drink/le-cs-patisserie-expands-to-middleton-with-boba-and-matcha-cakes/article_9054f13a-9ea6-11ee-9c95-77a311d1dfe1.html

– Seroogy’s signature chocolates are hand-made by employees right in the store, here’s how

https://www.greenbaypressgazette.com/story/life/food/2023/12/19/seroogys-in-de-pere-uses-a-ton-of-chocolate-per-day-during-the-holiday-season/71896052007/

– How did kringle become so big in Wisconsin — and why is it nearly unique to our state?

https://www.postcrescent.com/story/life/food/2023/12/19/what-is-kringle-and-why-is-it-a-wisconsin-thing/71804254007/

# HEALTH CARE 

– Combined Froedtert Health and ThedaCare to launch Jan. 1 with HQ to be determined

https://www.bizjournals.com/milwaukee/news/2023/12/19/combined-froedtert-health-thedacare-launch.html

# INVESTING 

– Baird Capital raises $218 million for its sixth venture capital fund

https://www.bizjournals.com/milwaukee/inno/stories/fundings/2023/12/19/baird-capital-venture-capital-fund-six.html

# LABOR 

– Wisconsin Supreme Court hears arguments in case involving ‘gig workers,’ state unemployment fund

https://www.wpr.org/wisconsin-supreme-court-hears-arguments-gig-workers-state-unemployment-fund

# LEGAL 

– OSHA fines Wisconsin sawmill nearly $1.4M after teen’s death

# MEDIA 

– Amazon reportedly could acquire rights to Brewers and Bucks games

https://www.jsonline.com/story/sports/2023/12/19/amazon-reportedly-could-acquire-rights-to-brewers-and-bucks-games/71972347007/

# REAL ESTATE 

– Marcus Investments real estate arm buys its biggest shopping center yet

https://www.bizjournals.com/milwaukee/news/2023/12/19/marcus-investments-dicks-sporting-goods-kohls.html

– International real estate investment firm buys trio of metro Milwaukee industrial buildings for $31.5 million

# RETAIL 

– Sheboygan Falls-based Reyes Retail bolsters production with acquisition of A&B Embroidery

# TECHNOLOGY

– Milwaukee-based startup Advanced Ionics names president and COO, chief commercial officer

# TRANSPORTATION 

– Madison hopes federal money will help end traffic deaths in city

https://captimes.com/news/government/madison-hopes-federal-money-will-help-end-traffic-deaths-in-city/article_b10e9b44-9dff-11ee-b9f7-6368676e8b6d.html

– American Airlines to begin non-stop flights from Appleton to Texas

https://www.greenbaypressgazette.com/story/news/local/2023/12/19/american-airlines-announces-non-stop-flights-between-appleton-and-dallas/71960821007/

# PRESS RELEASES

<i>See these and other press releases: 

https://www.wisbusiness.com/press-releases/ </i>

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