May 1, 2023 at 12:24 p.m.
GOP-controlled Assembly passes unemployment, workforce reforms
Democrats say bills attack average Wisconsinites
The legislative package now heads to the state Senate.
One of the bills would prohibit local governments from using taxpayer money to create guaranteed income programs; another requires the Wisconsin Department of Workforce Development (DWD) to randomly audit 50 percent of work search actions to ensure that claimants are satisfying statutory work search requirements.
A third bill potentially cuts off unemployment benefits for "ghosting" job interviews, that is, never responding to an interview request or failing to show up for an interview; another rebrands the unemployment insurance program as the Reemployment Assistance program and provides all unemployment claimants job counseling to aid in reentry to the workforce.
State Rep. Calvin Callahan (R-Tomahawk) called the bills common-sense legislation.
"Unemployment insurance was never supposed to be a permanent solution," Callahan said. "It was designed as a safety net to help those who have lost their job through no fault of their own as they continue to seek their next job opportunity."
Callahan pointed out that the bills would implement additional fraud detection methods, job search assistance, and metric systems to support the state's workforce.
"Last election, Wisconsinites were very clear that able-bodied childless adults should be on the hunt for a job if they are receiving state unemployment benefits," he said. "These bills are a step in the right direction."
Callahan said that the U.S. Department of Labor estimates that Wisconsin's rate of improper unemployment insurance payments is 18.32 percent, which comes to about $322 million over three years, and that 30 percent of those improper payments was because of the work search requirement and the lack of enforcement.
According to the Job Center of Wisconsin, there are more than 97,000 jobs available in the state.
Rep. Jessie Rodriguez (R-Oak Creek) said the bills would encourage personal responsibility, prevent fraud and abuse, and ultimately get people back into the workforce.
"Wisconsinites spoke loud and clear earlier this month when an overwhelming majority of voters statewide responded to an advisory referendum that welfare programs should have work-search requirements for able-bodied adults," Rodriguez said. "We have the lowest labor force participation rate we've had in the last four decades. ... We have a severe workforce shortage in our state, and we can't allow our tax dollars to be a disincentive for able-bodied adults to gain employment."
Rep. Chanz Green (R-Grand View) said the workforce issue in northern Wisconsin was especially critical.
"People focus on the unemployment rate to determine how well the workforce is doing, but we should also look at the labor force participation rate," Green said. "According to the Wisconsin Department of Revenue, the labor force participation rate is 64.5 percent, the lowest rate since 1976. That is not a good thing."
Rep. James Edming (R-Glen Flora) echoed the lament about worker shortages.
"Across [my district], one of the top concerns I continue to hear from employers, both large and small, is that they cannot find enough workers to meet their needs," Edming said. "Everywhere you look, employers are hiring. When employers cannot meet their workforce needs they are forced to either reduce their hours or the services they offer to their customers."
Matching the unemployed to suitable employers was especially important, Edming said.
"Shifting the focus of the unemployment insurance system towards getting folks into their next career will not only help the workers get back on their feet faster but is also an important step in helping to address the labor shortage in our state," he said.
Democrats disagree
But Assembly Democrats said the bills neglect the real needs of Wisconsin's workers while being punitive in nature.
Rep. Robyn Vining (D-Wauwatosa) said Wisconsin was facing a workforce crisis, but not because Wisconsinites were sitting on the sidelines refusing to work.
"With record low unemployment and high workforce participation, Republicans have decided to rush through unvetted, expensive, and harmful bills for partisan political gain instead of addressing the real issues facing Wisconsin workers," Vining said. "This legislation doesn't respond to the issues Wisconsinites are currently facing, and it doesn't honor Wisconsinites for who I know them to be -tough, strong, hard-working, and people deserving respect from their elected officials."
Vining said what her constituents need to earn a living and support their families is affordable child care, affordable housing, and reliable transportation.
"'The high cost of child care has forced way too many parents, often mothers, out of the workforce' said one constituent, commenting on the need for affordable child care for working parents," Vining said. "'Childcare Counts funding is critical to our child care program staying open and continuing to provide high quality care to our community' echoed another constituent, highlighting the need for state help to our child care providers. These concerns are shared by Wisconsinites in every community across the state, and nothing we did today responds to their needs."
Vining said two things were true.
"Wisconsinites work hard, and parents need affordable child care," she said. "And Democrats in this body will continue to listen to Wisconsinites, evaluate the need, and respond appropriately - in this case that means not attacking the very people we swore to serve, and instead hearing them when they tell us that in order to expand the workforce, we need affordable child care."
Rep. Katrina Shankland (D-Stevens Point) said every one agrees that the people of Wisconsin work harder than just about anyone.
"Across the state, working people are putting in long hours to keep our state and economy moving," Shankland said. "As members of the Wisconsin state Legislature, it is our job to pass legislation that prioritizes their needs by putting workers and families first."
The Assembly session should have advanced meaningful solutions that would mitigate the state's workforce shortage and grow the statewide economy, Shankland said, but did not.
"Unfortunately, instead of working on child care, housing, and transportation, my colleagues across the aisle decided to prioritize misguided, expensive, and ill-advised changes to our state's unemployment insurance program that could actually exacerbate our workforce challenges and cost our state millions of dollars," she said. "We should be expanding access to affordable child care so parents can enter and remain in the workforce, addressing Wisconsin's severe shortage of affordable and available housing to allow workers to live in the communities in which they work, and investing in public transportation to ensure modest-income workers can reliably get to their jobs."
All of those initiatives are included in Gov. Tony Evers's biennial state budget, Shankland said.
"It's incumbent on us to put politics aside and pass these popular policies into law to truly address our workforce challenges," she said.
State Rep. Clinton Anderson (D-Beloit) said the bills gutted unemployment insurance.
"Assembly Republicans are attacking unemployment insurance to address the workforce shortage," Anderson said. "If they are serious about solving the issues with our workforce, they would work across the aisle and work on real issues facing Wisconsinites, such as child care."
Anderson called for investing $340 million to continue the Child Care Counts Program.
"Child Care Counts funding will be reduced by half by June," he said. "This would cause child care centers to raise tuition, reduce slots, and potentially close. Let's invest in our kids and maintain this much needed program."
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