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Federal funding cut endangers Wisconsin unemployment system update

Outside view of State of Wisconsin Department of Workforce Development building
Reading Time: 4 minutes

In the early days of the COVID-19 pandemic, when many businesses closed or laid off workers, a massive influx of 8.8 million unemployment claims overwhelmed Wisconsin’s aging unemployment insurance system. 

That created a backlog of hundreds of thousands of claims. Many potential applicants weren’t able to connect to the department’s call center to complete the process, and some Wisconsinites waited months without receiving a single unemployment payment. 

Following those backlogs, the state has made strides to update the system and move away from outdated, decades-old computer systems, said state Department of Workforce Development Secretary Amy Pechacek. 

She said DWD now has a digital portal for people to file unemployment claims and send documents online. The department also uses online chatbots to respond to questions in multiple languages, as well as uses artificial intelligence tools to assist with data entry.

“With these enhancements, the department is now paying 88% of all claims filed within three days or less,” Pechacek said. “That other 12% of claims that go a little bit longer are typically just because we have to do investigations if there’s some discrepancies between what the claimant and the employer are saying.”

In a letter to the Trump administration on Tuesday, Gov. Tony Evers said the administration is blocking nearly $30 million in federal funding to Wisconsin, which could prevent the state from finishing the project and potentially leave it vulnerable to cyberattacks and fraud.

“If the Trump Administration does not reverse course and provide the $29 million Wisconsin expected to receive, the state will not be able to complete its UI system modernization project,” Evers wrote to U.S. Labor Secretary Lori Chavez-DeRemer.

That funding was part of the American Rescue Plan Act, a pandemic recovery law signed by former President Joe Biden, and was being primarily used on anti-fraud measures, according to the governor’s office. Evers’ letter says the U.S. Labor Department “suddenly terminated” the funding in late May. 

The termination halted work on identity authentication tools, a digital employer portal, artificial intelligence enhancements, fraud prevention and cybersecurity tools, according to Pechacek. She said the employer portal was the DWD’s next major rollout and would have made it easier for employers to provide information to the state.

“The employer portal is really one of the largest losses from this federal action,” Pechacek said. “Our employers … have to submit quarterly wage information (and) verify claim information, and some of those components are still very antiquated.”

Evers wrote that the Department of Labor “cited no objections” to those initiatives beyond “an unsupported assertion that they ‘no longer effectuate the Department’s priorities.’”

Pechacek said the state has already spent “slightly over half” of the $29 million. She said those grants were “reimbursement-based,” meaning the state first had to spend the money and then be paid back by the federal government.

“There are seven projects that have now been paused in a variety of different states of completion, so those are sunk costs,” she said. “Without realizing the full modernization effort, we can’t roll those projects out.”

The state appealed the Labor Department’s termination and received a letter from the federal government in late July that “acknowledged the appeal while restating the Department’s earlier basis for termination,” the governor’s letter states.

“The people of Wisconsin deserve systems that function, state of the art, with high integrity and accuracy,” Pechacek said. “We are also going to pursue litigation to reclaim the funds which were rightfully awarded to us already and improperly rescinded.”

In addition to the $29 million in lost funding, the project was using $80 million from a different program under the American Rescue Plan Act, according to a report sent to the Legislature’s budget committee. The document states that the $80 million has not been impacted but is “insufficient to support the full modernization work.”

Pechacek said DWD has also asked the state Legislature to allocate additional state funds toward finishing the effort but said there hasn’t been much movement on that front.

Wisconsin isn’t the only state that’s had federal funding to upgrade unemployment systems clawed back by the Trump administration. In May, Axios reported the White House terminated $400 million of that funding across the country. A July report from state agencies said $675 million in grants awarded to unemployment programs in over 30 states and territories had been terminated.

The U.S. Department of Labor did not immediately respond to WPR’s request for comment. In May, the federal agency told Axios in a statement that the unemployment modernization funding was “squandered” on “bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need.”

In the letter, Evers also said failing to complete Wisconsin’s modernization effort would put the state’s unemployment system at risk of becoming overwhelmed again during any future economic downturn. He says that would “create acute hardship for Wisconsin families.”

“It is our obligation to prevent this scenario from coming to pass,” Evers wrote. “I urge you to reverse the decision to defund these critical government efficiency and fraud prevention initiatives.”

Pechacek said the state isn’t reverting back to old technology in the pieces of the modernization that have already been completed in “major areas.” But she said failing to fully finish the effort poses a risk to Wisconsinites because there are still aspects of the system running on an outdated coding language.

“Any time we don’t fully invest in upgrading and reach the programmatic goals that we have set to get fully off of the antiquated systems, we are at risk to be overwhelmed again,” she said. “All of that leads us to be more vulnerable, in a time of significant increase of accessing the system, to the cyber attacks, to fraudulent efforts, to being compromised.”

This story was originally published by WPR.

Federal funding cut endangers Wisconsin unemployment system update 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.

‘Our Louisiana Purchase’: Deal reached to move Green Bay’s century-old coal piles

Tarped over mounds sit behind green grass and a river, bordered by a highway.
Reading Time: 4 minutes

For the people of Green Bay, the long-awaited deal to move century-old coal piles from the riverfront near downtown is a big deal.

How big?

“This is our Louisiana Purchase. This is our purchasing of Alaska,” said state Rep. Dave Steffen, R-Howard. “It doesn’t get any bigger than this. We are not only just witnessing history, we’re part of it today.”

Steffen was one of the Green Bay-area lawmakers of both parties who were on hand Thursday before the Brown County Board of Supervisors approved a deal that will pave the way toward moving the hulking black piles that local officials and residents have hoped to oust for decades.

Thursday’s deal, approved unanimously after a closed session of the county board, sets the general framework for a lease agreement that will allow the coal to be relocated.

The coal sits on land along the Fox River that community leaders see as ripe for redevelopment. A very visible and not-so-pretty symbol of the city’s industrial heritage, it is also a nuisance for some residents who say dust from the piles blows into nearby neighborhoods.

But they are also a landmark, one that was immortalized by pranksters who decades ago made a “Ski Green Bay” poster of a man skiing down a coal pile with the skyline of the city behind him. That image was more recently included in a mural downtown.

A desire to move the coal piles to someplace less visible has been on the wish list of generations of city leaders.

“It’s literally something that mayors of the city of Green Bay and other community leaders have been working on for upwards of 75 years,” said Green Bay Mayor Eric Genrich.

Thursday’s vote means the county will not lose a $15 million federally-funded state grant that was in jeopardy after the county board altered a previous deal in December and negotiations stalled. The county had until Tuesday to come to an agreement and until Friday for the board to approve it, or risk losing the grant.

C. Reiss Co. owns the coal piles. The company has operated the bulk commodities storage facility on Mason Street, located along the the Fox River, since 1900.

Under the deal, C. Reiss and the county will work to finalize a lease agreement for a 16-acre parcel of land at a former power plant site the county is redeveloping for the Port of Green Bay. The company would also lease up to 1.5 acres for a stormwater pond that it would maintain. 

But the agreement stipulates that C. Reiss, or other users, may not store coal at the power plant site.

Rather, CEO Keith Hasselhoff said coal would be stored at a site near the power plant, known as the Fox River Terminal. C. Reiss’ parent company currently stores salt and other bulk commodities at the Fox River Terminal.

When the 16-acre parcel is ready, Hasselhoff said C. Reiss plans to move salt from the terminal site to the power plant. 

“As that salt at Fox River depletes and opens up more space at Fox River, we’ll be able to land new vessels of coal at Fox River, which then will allow us to deplete the inventories that we have at Mason Street,” Hasselhoff said.

At a press conference before the meeting, Brown County Executive Troy Streckenbach said moving the coal from downtown “is not going to happen overnight” and could take “a number of years.”

County Board chair Patrick Buckley said the final negotiations came down to the eleventh hour. He said talks were ongoing up through Tuesday night, when all parties came to a consensus. He said the county’s corporation counsel spent Wednesday and Thursday getting the agreement in writing for the board’s approval.

“It’s really a group effort here to get this done,” he said. “A lot of people did not think this was going to get done. … But a lot of hard work went into it.”

The lease for the power plant site still needs to be fully ironed out, but the agreement requires the lease be fully executed by Sept. 15 or the parties could be required to go to arbitration.

According to the conditions approved Thursday, it would run for 60 years with the annual rent set at $350,000 with inflationary increases every five years.

The length of a lease had been one of the biggest sticking points in past agreements. Back in December, C. Reiss had wanted a lease that ran up to 75 years, while the county board wanted a 30-year lease with a 10-year extension option.

Streckenbach acknowledged that the board previously had reservations about a long-term lease. But he said all sides had to make concessions in the negotiation.

“Ultimately, because of what we came to an agreement with and everybody making concessions, the county board felt comfortable going forward with the length that was proposed,” he said.

The agreement also stated that the city of Green Bay would provide up to $2.2 million if the county faces funding shortfalls related to the coal relocation effort. 

Genrich said the addition of the city’s financial commitment was “one of the latter changes” that was made to the agreement and was something that he and Council President Brian Johnson had committed to in their discussions with county officials.

“Our priority is Mason Street and (doing) whatever was necessary within reason to make that redevelopment project possible,” he said. “The commitment that we all made to each other in the room was like, ‘We’re going to get this done regardless.’”

Genrich said the full Green Bay City Council will discuss the up to $2.2 million in funding at its meeting on Tuesday.

This story was originally published by WPR.

‘Our Louisiana Purchase’: Deal reached to move Green Bay’s century-old coal piles 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.

Adams County asks court to remove and replace elected treasurer

Exterior view of Adams County Courthouse
Reading Time: 3 minutes

A rural county in central Wisconsin has filed a lawsuit seeking to remove its county treasurer elected less than a year ago and replace her with the person she defeated in that election.

Adams County filed suit last week asking the court to declare that Treasurer Kara Dolezal “vacated” her position and her former opponent Kim Meinhardt is “entitled to hold that office.”

The suit is essentially seeking a judicial sign-off on a resolution the Adams County Board approved in late April. But state Rep. Scott Krug, a Republican who represents a portion of the county, argued during and after the meeting that the county followed an illegal process to remove an elected official.

Dolezal, a Republican, defeated Meinhardt, an independent, by more than 900 votes in November 2024. In April, Dolezal was reelected to her post as town treasurer for the town of Lincoln in Adams County, a position she held prior to being elected to county-wide office. 

In both the lawsuit and the county board resolution, Adams County has argued Dolezal vacated her county office by accepting a “legally incompatible” position with the town. 

In a statement, Adams County said it is “confident in its legal position.” The county said it’s taking the issue to court to bring “finality” to the situation.

“Understanding that a lot of interest in this issue has found its way into the media and on social media, the County is not going to comment on ongoing litigation or try the case outside of the courtroom,” the statement reads.

But Krug said it’s long been common in Wisconsin for people to hold similar offices for both their town and county.

He said he’s working with colleagues to introduce legislation to clarify it’s possible for the same person to hold positions as county and town treasurer at the same time if both are elected positions.

“We are specifically going to say that there is no contradiction or incompatibility between the role of county treasurer and town treasurer when both are elected by people in their community,” Krug said.

But he also said the lawmakers are trying to do so without interfering with the court’s process.

“We’re trying to be cognizant of the court process while we’re introducing legislation,” Krug said. “But at the same time … we still want legislation coming forward to protect those individuals from having to go through the same type of thing, and, on the flip side of it, trying to protect their communities from having to go through exorbitant legal fees.”

Scott Krug
Republican Rep. Scott Krug is seen at the Wisconsin State Capitol in Madison, Wis., on Nov. 2, 2023. (Meghan Spirito / Wisconsin Watch)

While Dolezal has continued to perform her duties as county treasurer following the county board’s vote, Meinhardt took the oath of office for the position on May 12, according to the suit.

Dolezal has held both offices since January and was never asked to resign from her post with the town, she told WPR earlier this month. In a May 3 statement, Dolezal said she didn’t view the two positions as “incompatible” and she was transparent about being a town treasurer when she ran for county office.

“The voters still elected me as their County Treasurer,” she stated. “I believe it sets a concerning precedent if County Board Supervisors can override the will of the voters.”

Dolezal’s attorney, Catherine La Fleur, was not available for comment Tuesday.

In the lawsuit, attorneys for the county said public officials cannot simultaneously hold incompatible offices, citing a past state attorney general opinion that says the duties of a local treasurer and county treasurer are “wholly inconsistent.” 

“A town treasurer collects property taxes on behalf of, not only the town, but the county, state, and other taxing jurisdictions in which the town is located,” the complaint states. “As a result, the town treasurer is subordinate to the county treasurer.”

After Dolezal took office with the county in January, the complaint states that disputes arose between Dolezal and local treasurers within the county during the property tax settlement process in the spring of 2025.

According to the complaint, the dispute was “regarding the treatment of certain property tax payments, resulting in the County directing an audit of the County Treasurer’s office.”

Mary Lou Poehler, treasurer for the town of Springville in Adams County, spoke in public comment at the county board’s meeting last month. Poehler said “financial issues” had arisen with the county since Dolezal took office.

“Being a town treasurer, I know of a lot of these,” Poehler said at the April 29 meeting. “And our town, for one, was shorted quite a bit of money.”

But Krug, the area lawmaker, said the county did not follow the proper process for removing an elected official, which requires a notice, public hearing and two-thirds vote.

Regardless of whether the county felt both offices were incompatible or had performance concerns, Krug said the board still should have followed the process outlined in state statute.

“You could just follow a simple state statute process to legitimize it,” he said. “When you take time to think and slow down, you could actually accomplish the same goal without looking like you’re trying to do something behind the scenes.”

This story was originally published by WPR.

Adams County asks court to remove and replace elected treasurer 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.

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