Republican budget plan could pour sand back into licensing agency gears

The Department of Safety and Professional Services (DSPS), the agency responsible for licensing about 200 credentials, including in health care, business and the trades, would face a 31% staff cut starting Oct. 1 under the budget Republicans advanced in committee last week.
The reduction would mean longer wait times for licenses and worse call center customer service, DSPS Communications Director John Beard said.
During Thursday’s Joint Finance Committee meeting, Republicans rejected the agency’s proposal to add 14 full-time call center positions and 10 licensing positions for DSPS to replace the temporary positions funded through federal stimulus set to expire this fall.
DSPS warned lawmakers that without the additional staff, licensing wait times could double from about eight to 16 days and answer rates at the call center could fall below 40%, reaching pre-pandemic lows. In 2018 only a little over half of the calls were answered.
Gov. Tony Evers granted DSPS federal stimulus funding in 2023. At the time, licensees were stuck waiting months at a time to receive their licenses. After DSPS used the stimulus to hire additional, temporary staff, they saw those wait times decline sharply, now averaging about 2-5 days to review application materials.
The agency’s recommendations highlighted the impact additional staff members would have on the agency, including maintaining high answer rates for the agency’s call center and minimizing wait times for licensees.
If the agency were to fall back into a similar backlogging crisis from 2023, DSPS warns it could lead to drastic reductions in licenses issued to Wisconsin workers.
“That’s a staffing shortage in our clinics, in our hospitals, and it’s a problem for us individuals who are depending on these individuals to be licensed as quickly as possible and move onto the floor,” Sen. LaTonya Johnson, D-Milwaukee, said during the budget committee meeting.
The day before the meeting, the Wisconsin Medical Society and health care providers and institutions sent letters to lawmakers, urging them to vote in favor of the agency’s budget proposal, which Evers included in his budget recommendation.
“If the DSPS request is not approved, we fear a return to increased license processing times, longer call center hold times, and less responsiveness overall,” Wisconsin Medical Society Chief Policy and Advocacy Officer Mark Grapentine wrote. “These types of delays in the past resulted in applicants choosing to practice in other states due to languishing frustrations.”
DSPS said more efficient licensing created $54 million in additional wages for Wisconsin workers in 2023, compared with a projected $2 million annual cost to create the permanent positions.
Wisconsin Watch previously reported on an alcohol and drug counselor from Minnesota who waited 16 months before being told she had to take additional courses through University of Wisconsin-Superior to be eligible.
The DSPS legislative liaison at the time boiled it down to inadequate staffing, reducing the efficiency of the agency.
The Republican-controlled committee approved only five limited term positions for the agency. The JFC co-chairs said in a press release Thursday the committee voted to fund important government services, while limiting spending.
“We provided funding for DSPS call center staff who work to help credential holders and the public navigate licensure platforms. This investment ensures the department can operate effectively and provide these critical services to professionals,” Sen. Howard Marklein, R-Spring Green, and Rep. Mark Born, R-Beaver Dam, said.
Republican lawmakers have previously rejected Evers’ recommendations to add staffing to the agency, even though the funding comes from department licensing fees — not taxpayer dollars. As a result, the agency’s surplus of unspent licensing fees increased from $4.4 million to $47 million, all while its services deteriorated.
In 2021, the committee approved two of the 13 positions Evers recommended. In 2023, the committee granted 18 of the 80 positions Evers requested.
Evers used federal stimulus funding for temporary positions, including adding additional project positions. But the funding for those temporary positions will run out this year.
Beard said by Oct. 1 the call center staff will go from 28 to 11 positions and total staff will go from 58 to 40.
Republicans also voted to transfer $5 million in program revenue — the money collected from the fees paid when applying for, obtaining and maintaining a license — to the general fund, which is expected to have a $4.2 billion surplus at the end of the month.
At the end of the last fiscal year, the DSPS surplus was around $39 million, according to the Legislative Fiscal Bureau.
Despite having the huge surplus of program revenue — including money accumulated from fees applied to permit and license applications — DSPS can’t use those funds to hire more staff without JFC approval.
“Licensees pay fees so that they can be appropriately regulated, and what we are doing is starving that system and making it harder for every single one of us to access needed professional services,” Sen. Kelda Roys, D-Madison, said in support of adding 24 permanent positions using program revenue.

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Republican budget plan could pour sand back into licensing agency gears is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.