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• Wisconsin officials launched a teacher apprenticeship program in 2024, offering students an alternative route to the profession. 
• But the program’s future is unclear. 
• Leaders are struggling to find students who are interested in joining the program and public school districts to sponsor them.

Matthew Jacobson found his calling in middle school history class.

As a sixth grader at St. John Vianney Catholic School in Brookfield, he voluntarily completed additional research projects and jumped at the chance to present to his classmates. He never saw the extra assignments as work — he was having fun. When Jacobson’s teacher told him he’d make a great educator himself, he set his sights on the profession. In high school, he participated in Elmbrook School District’s future teachers program and planned to enroll in university for his teaching degree. 

But life had other plans. Several weeks before his high school graduation, Jacobson was forced to move out on his own. He picked up a cooking job to “pay the bills and survive.” The gig didn’t leave extra money or time for college. 

“I didn’t really know how to get back into college and go meet my dream,” Jacobson said. 

Two years later, he heard about a novel apprenticeship program, where future teachers earn money working in schools as they obtain their education and certifications. 

“I was like, ‘That’s my way back in,’” he said. 

State officials launched the program in 2024 to ease the educator shortage by offering students an alternative route to the profession — one where they don’t have to put their careers on pause while racking up student debt. Jacobson is one of the first eight teacher apprentices. 

Today, Jacobson has returned to Elmbrook to serve as a classroom aide. In two years, he’ll have the proper training for the district to hire him as an elementary or middle school teacher.

But as participants reach the program’s halfway point, its future beyond this initial “pilot” phase is unclear — raising questions about whether apprenticeships will become a viable solution to Wisconsin’s struggle to find and keep educators. 

While the route has been life-changing for students like Jacobson, program leaders are having trouble enticing school districts to take on more apprentices. Enrollment has ground to a halt; the two technical colleges involved don’t have any new students signed up to begin in the fall. 

Wisconsin Department of Workforce Development officials say whether the program continues or grows depends on if districts get on board and sponsor trainees to join up. But district leaders say a major hurdle is the cost — a key appeal of an apprenticeship is the employer paying them for the time they spend learning, but many public schools are already strapped for cash. Some want more funding tied to the program. 

“(It’s) stalling a little bit,” said Trent Sorensen, a Fox Valley Technical College dean. “We don’t have any (students) coming in for the fall. … There’s plenty of time, but it’s not taking off like it did in other states, and it’s simply because of the funding.”

A new way to train teachers

Wisconsin schools struggle to find enough teachers needed to lead classrooms — a problem largely fueled by poor retention and new workers moving to other states after graduating.

In 2024, Congress came through with some assistance: $570,000 in federal funds earmarked for establishing a teacher apprenticeship program in Wisconsin. 

Officials from DWD, the Department of Public Instruction, the Wisconsin Technical College System, and two universities teamed up to debut the pilot in January 2024. They praised the “earn-while-you-learn” approach to establishing a pipeline of workers: Districts could guarantee they’d have future teachers, while also filling lower-skilled jobs in the meantime. 

Typically, aspiring teachers work a shorter classroom internship while studying for their bachelor’s degree and then complete a semester of student teaching after graduating. The apprenticeship is “taking that entire approach and flipping it on its head,” said Nick Abbott, senior program and policy analyst at the Bureau of Apprenticeship Standards — creating a potentially more accessible path to the profession. 

“Traditional educator preparation programs can be expensive, as they often require unpaid student teaching, which might not be feasible for low-income students, nontraditional students, or individuals looking to change careers,” Gov. Tony Evers said when the program launched. “The new teacher apprenticeship pilot program will help address issues in turnover and retention, reduce barriers, and encourage young people to enter the field.”

Apprenticeships are becoming more common in Wisconsin in fields ranging from plumbing to nursing. Participation has hit record highs for the last four years. These gigs are far more common for hands-on jobs in the skilled trades than fields like education and health care, but that’s changing with initiatives like the teacher apprenticeship program.

Here’s how it works: A school district hires an apprentice, who enrolls at Fox Valley Technical College or Waukesha County Technical College for two years to complete a Foundations of Teacher Education associate’s degree. When finished, the student transfers to Lakeland University or the University of Wisconsin-Whitewater at Rock County to finish a bachelor’s degree.

Throughout those roughly four years of schooling, the apprentice works inside the classroom as an assistant for 32 hours each week and spends eight hours a week learning at college. The school district the person works for pays an hourly wage for those 40 total hours. When apprentices finish the training, they’re qualified to work as a classroom teacher.

“Nothing prepares you for doing this job, other than doing the job,” Jacobson said. “Being at a school working with kids is easily 10 times more important than any of the classes I’ve taken, and I get way better experience and much more value out of just doing it and learning through failure.” 

As a way of incentivizing the program during its infancy, the eight students get half of their tuition costs reimbursed with federal grant funds. 

Four districts participate in the pilot: Wauwatosa, Greendale, Elmbrook and Appleton. The districts are not required to pay for the remainder of the apprentice’s tuition — Elmbrook, a relatively wealthy district, was the only one that did. 

State leaders also hope the apprenticeships might help with teacher retention. Teachers will start with four years of classroom management experience already under their belt, far more than usual. Plus, other teachers mentor them on the job. That essentially eliminates the difficult experience of being a first-year teacher, said Appleton Area School District Chief Human Resources Officer Julie King. 

“Managing a classroom and the curriculum and all the demands of the job is very overwhelming after having maybe 18 weeks of student teaching experience,” King said. “To learn alongside a professional that has been in the career, knows all the ins and outs, has skill sets and strategies to work with students – to have that benefit of working alongside somebody like that for four years, you’re much, much better prepared.”

Given these promises, teacher apprenticeships have recently exploded nationwide — 45 states have brought programs online in the last few years. They vary widely in their funding approaches and in the costs to districts and students. States have often looked to Tennessee, the country’s first program, as a standout model. The state’s program, launched in 2020, now helps fund 600 new teacher trainees annually at no cost to the apprentices.

Enticing schools a challenge

In his Foundations of Reading class last fall, Jacobson learned about phonological and phonemic awareness, or the ability to recognize distinct parts of a word — a key skill for learning how to read. Using what he learned, he started running his own reading support group for students needing extra help. 

“The second you learn something, I don’t have to wait two years before I actually apply that knowledge to my job,” Jacobson said. “No, I’m applying it that same day or the next day, which then makes it stick a lot more.”

The program gets high marks from trainees and schools. So why aren’t more signing up?

Money. Both school districts and apprentices are struggling to afford it. 

The four districts that already have apprentices are waiting until their current students graduate to decide whether to add more, Abbott said. 

“I want to stress that the apprenticeship model itself remains available to all school employers in the state who wish to adopt it,” Abbott said. “It comes down to finding partners.”

But getting more of Wisconsin’s 400-plus districts to bite has been difficult. 

Sorensen, the Fox Valley Tech dean, said the college isn’t seeing interest from districts because many are contending with too-tight budgets. School leaders have long argued the state’s funding system hasn’t kept up with rising costs, which, as Wisconsin Watch recently reported, has resulted in a recent wave of school closures, layoffs and budget cuts. 

That’s made it hard for districts to pay for the hours when trainees are in college, and not working in the classroom. 

“It’s challenging for school districts to be able to build in that release time. We did hear that, and that’s really understandable,” said Dena Constantineau, Waukesha County Tech’s associate dean of education and human services. “I mean, they really rely on their people, and so they need them in the classroom.”

Even with the discount from the federal grant, tuition can be costly. For example, the average annual tuition costs at least $5,900 for the technical college portion and about $6,000 for UW-Whitewater at Rock County. That means the leftover cost to apprentices could still be upwards of $12,000. 

Plus, the federal funds that helped launch the pilot run out next March, so there could be even less tuition assistance for future apprentices.  

The Appleton Area School District would love to put more students into the program, “if there was funding” to entice participants, King said. The district couldn’t afford to give students more tuition assistance, which hampered participation. 

“The unknown for us moving forward is there is no state funding. If there’s other opportunities for that tuition relief for the individual, that’s really what entices people to engage in that program,” King said.

“The question on the future really is, ‘Where is the funding and the structures going to be in the future to make sure that it’s a viable option moving forward?’” King said. “‘That it reduces the financial barrier? That it’s accessible?’” 

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Find her on Instagram and Twitter, or send her an email at mdunlap@wisconsinwatch.org.

An apprenticeship aiming to ease Wisconsin’s teacher shortage is ‘stalling.’ Will it catch on? 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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• Oshkosh resident Nikolas DeGroot started Groundfloor Democracy after seeking an informal place where community members could gather to discuss politics and local issues. 

• Run entirely by volunteers, Groundfloor Democracy hosts Politics in the Park events several times per month. 

• Organizers focus on fostering respectful discussions in person, which they say helps people connect with their neighbors and find what they have in common. 

• However, it’s been a struggle to attract participants to their gatherings. 

• The group plans to become a nonprofit organization and hopes to eventually host events in more Wisconsin cities.

On a late April evening, in an Oshkosh park bordering the shores of Lake Winnebago, Nikolas DeGroot and Elaine Koch arranged four fabric lawn chairs in a circle. They unfolded a small table and used it to prop up posterboard reading “POLITICS IN THE PARK” in bubble letters. Then they sat down and waited for curious passersby to notice. 

During a time when Americans are increasingly polarized and politics can feel too tense a topic to broach in conversation, Oshkosh resident DeGroot wants to inspire his neighbors to tackle the topic head on — and handle disagreements thoughtfully. 

“There’s a disconnect in the way that we relate to one another, on many different levels. I think that the internet has kind of become the public commons, and it does it really badly,” DeGroot said. “We all know it’s terrible. We all hate it, and yet that’s still like the place where the most discussion is happening.”

The antidote, he thinks, is simple: bring conversation about shared issues back in the flesh, in a public place neighbors frequent, and make sure it stays respectful. 

That’s the gist of “Politics in the Park,” an event series where DeGroot and several helpers invite people to have civil conversations about politics and local issues at a public park. Through this, he hopes his neighbors can learn to connect again and chip away at the polarization driving people away from each other. 

Perhaps unsurprisingly, getting people to take part in the initiative has proven difficult. Still in its infancy, the twice-weekly events this spring mark the series’ second year. Turnout has been sparse — typically, a handful of people stop by each event. The group, dubbed Groundfloor Democracy, hosted about 10 attendees at once at its peak. 

But the conversations they’ve had have been encouraging, and they hope it’ll catch on soon. 

“I want people to see that there is a big difference between debate and just regular conversation, and that we can get back to conversation,” said Emmy Carrick, who helps put on the events. “We want people to take away that regular conversation without yelling, without debate, without cameras — it’s possible.”

‘We’ll pull up some chairs, and we’ll just see’

As a political science student at the University of Wisconsin-Oshkosh, DeGroot was eager to attend political and academic events on campus. But when he looked around the room at donors, university administrators, professors or students required to be present for a class, he felt out of place. 

“As somebody who comes from a working-class background, I don’t see any people like me at events like this,” said DeGroot, who works two part-time jobs.  

He started looking for other community organizations he’d be more aligned with. But he didn’t see any addressing his biggest concern: “How do we get people off of their devices and speaking in person again?” 

He decided to take matters into his own hands. 

“I was taking my son to the park every day after school anyway, for like two hours. So I was like, … ‘We’ll just set up a sign, we’ll pull up some chairs, and we’ll just see. We’ll just see what happens,’” he said. 

He made Facebook posts to tell people when he was going to be outside and wanted to facilitate conversation. He let people talk about what was on their minds. A few visitors came the first couple times, but they sometimes struggled with what to discuss. 

He started asking questions to guide discussion: 

“If you could change one thing about your government (local, state or federal), what would it be?”

“What’s something you think we could fix if we just talked about it more honestly?”

“What’s one thing you’d like politicians to stop doing?”

“What gives you hope when it comes to politics or your community?”

“What do you think people get wrong about folks who vote differently than them?”

Meanwhile, DeGroot posted a callout for people to help him with the endeavor. Four board members now help him organize events, post on social media and try to grow Groundfloor Democracy’s turnout. 

That includes Carrick, who discovered the project while surfing Reddit. She wanted to get involved because she feels like “we’ve never been more disconnected from our neighbors.”

“I like the premise of it because it was just something so low-stakes,” Carrick said. “With how polarized things are, it feels like any political conversation that you have is very high-stakes. I liked that this was just informal and welcoming.” 

By the end of last spring, they’d had enough turnout to feel encouraged to continue. This year, the events are guided by a one-word prompt, such as “local,” “education” or “justice.” They ask participants what topics the words bring to mind and let attendees steer the conversation.

Continuing the conversation

Carrick’s favorite Politics in the Park event took place on an early April evening, when about 10 people attended. Two teens on their way to the bus stopped briefly to learn about the initiative. Another man wanted to discuss the Trump administration’s policies — an exchange that ended with him and Koch praying together. 

“Nobody ever said whether they were a Democrat or Republican. We just talked,” Carrick said. “That was so refreshing to me. We didn’t talk about parties at all. We just talked about us and our lives and local issues and more of what brought us together.”

While discussion at the events has stayed civil to date, conversations about politics can often slide off the rails. 

Their goal isn’t to avoid debate, but to encourage handling disagreements respectfully. For that reason, DeGroot took a 40-hour mediation training at the Winnebago Conflict Resolution Center to learn how to handle and dissolve conflict. 

“A big part of that training was getting from the thing that somebody is saying to the underlying feeling that’s connected to what they’re saying,” DeGroot said. “It’s just trying to get to that little crumb at the center of like, why does this person feel so strongly about this particular thing?”

If needed, he will intervene to help the person see how those “big feelings” at the root of their argument overlap with the values of the people sitting with them, to help them see the similarities they share. Though he’s prepared, he hasn’t yet needed to interrupt a conversation.

Since it is a nonpartisan organization, DeGroot and other members are careful not to advocate for specific candidates, parties or policy positions. That’ll become especially important as they look to become an official nonprofit. The federal government prohibits these types of organizations from engaging in political campaign activity. 

As time goes on, they also want to grow the initiative by hosting conversations in more Wisconsin cities or partnering with other local civic organizations. 

They also want to find ways to raise funds — right now, everyone who helps out is a volunteer. 

Mostly, though, they want more people to come talk about politics with them in the park. 

“We can’t delete social media from the world, heal our nation’s politics overnight or anything like that,” Carrick said. “But we can set up some lawn chairs in a park and have a couple neighbors come out and just chat and get to know each other more.”

Learn about Groundfloor Democracy’s upcoming events here.

These Oshkosh residents want you to log off and talk politics — in real life 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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• Fidelity bonds protect businesses if an employee steals or commits fraud. 

• The state issues the bonds, and research shows they’re one of the most effective ways to persuade employers to hire people with criminal records.  

• But Wisconsin issues few fidelity bonds. 

• Experts are divided on the issue, with some saying the free insurance can’t hurt and might help. 

• Others say it doesn’t address all the concerns employers have or educate them about the benefits of giving people with criminal records a second chance.

For every 10 people released from Wisconsin’s prisons, just seven find jobs within two years — even as the state’s ongoing worker shortage leaves many employers scrambling to find the help they need. 

The struggle isn’t unique to Wisconsin. Formerly incarcerated people nationwide are far more likely to be unemployed than the general population. One reason: Though people with criminal records often outperform their colleagues, many employers worry they’ll be unreliable or even dangerous. 

That’s why, 60 years ago, the U.S. government began insuring employers against that risk, for free. 

The Federal Bonding Program, established in 1966, offers “fidelity bonds” to reimburse businesses for losses if the covered employee steals or commits fraud. 

Recent research suggests these bonds are one of the most effective ways the government can persuade employers to give jobs to people with criminal records. Those jobs have ripple effects.  Families become more financially stable, communities become safer — as people with jobs are less likely to commit new crimes — and taxpayers save money as fewer people return to prison.  

So why aren’t Wisconsin employers requesting these bonds? While some states issued hundreds last year, Wisconsin issued just three — even though an estimated 1.4 million Wisconsinites have a criminal record. 

Demand in the state is so low that when the federal government in 2019 offered Wisconsin $100,000 to spend on bonds, workforce officials used just $15,000.

To figure out what’s going on, Wisconsin Watch spoke to economists, insurance experts, criminologists and workforce development officials, who ranged from enthusiastic to cynical about bonding. 

Some said the coverage limits may be too low to address employers’ worries, or that bonds don’t help when employers are worried about safety or a bad work ethic. Some said employers overestimate the risk of hiring people with criminal records and that education — not insurance — is the solution. But most said offering this free insurance can’t hurt and might help. 

In a worker-strapped state, is this insurance program a little-known lifeline or an irrelevant relic? 

Bonding basics

Imagine you’re a hiring manager who wants to offer a job to an applicant with a criminal record. If you’re in the same boat as many businesses, your commercial insurance may not cover any theft or other act of dishonesty if the employee in question has a criminal record. 

To fill that insurance gap, you contact your state’s bonding coordinator to apply for a six-month, no-deductible fidelity bond that will reimburse you for up to $5,000 in losses. In special circumstances, you can apply for additional coverage of up to $25,000. The state handles the paperwork and the $100 cost. 

The program boasts a claim rate of just 1%, meaning businesses in the program seldom report losses. At the end of the six months, you may now be satisfied that your new employee is trustworthy — or you can buy additional coverage. 

In Wisconsin, these bonds are the only incentive available to encourage what’s often called “second chance” or “fair chance” hiring.

“It is a unique tool to help a job applicant get and keep a job,” the state’s Department of Workforce Development says on its bonding webpage. “It is like a ‘guarantee’ to the employer that the person hired will be an honest worker.” 

The same bonds are also available to other job applicants whose background could make it hard to get or keep a job. That includes people in treatment or recovery for alcohol or drug addictions and people with little or no work history. 

In practice, the program is almost exclusively used for people with criminal records, according to program administrator Kevin Kulling. 

Wisconsin focuses much of its outreach effort on prisons, making sure people know how to take advantage of the program when they get out. The stakes are high: Of those released in 2023, nearly 1 in 3 were rearrested within a year and 1 in 8 ended up back behind bars. 

Recent research backs bonds 

Governments have tried a variety of ways to persuade employers to hire people with criminal records. 

Nationally, there’s the $2-billion-a-year federal Work Opportunity Tax Credit, which rewards employers for hiring people with felony convictions. But new research finds the tax credit doesn’t increase pay or hiring for the workers it’s designed to help. It expired in December but could be reinstated.

Meanwhile, a growing number of states have tried to boost job seekers by barring employers from asking about criminal records on job applications. In about a dozen states, public and private employers are subject to such “ban-the-box” measures. 

Evidence is mixed. Several studies find these laws reduce hiring for Black and Hispanic men, suggesting that when employers can’t check an applicant’s criminal record, they instead make assumptions based on demographics.

Enter the bond, a policy that predates the others by decades. In 1975, the U.S. Department of Labor commissioned a study of the then-new program. Participating workers reported major salary increases after joining the program, and a majority held on to their bonded job longer than one year. 

New evidence supports the program. In a 2023 article, researchers from the National Bureau of Economic Research teamed up with an online hiring platform to survey businesses. The platform asked users about their willingness to hire people with criminal records and how that might change if the platform offered wage subsidies or insurance coverage. 

Researchers found employer willingness to hire someone with a criminal record rose 12% when offered up to $5,000 in crime and safety insurance. It would take an 80% wage subsidy to get the same result. 

Mitchell Hoffman, an economics professor at the University of California-Santa Barbara, co-authored that study. He said policymakers have often tried to solve these hiring challenges by trying to change the workers, like with training or therapy. This research suggests it’s possible to change employers’ behavior, too.

That matters, he said, because employers hold the cards. “If firms don’t want to employ people with a record, then it’s hard to move them to employment and to good jobs,” Hoffman said.

The findings are welcome news to Jen Doleac, executive vice president of criminal justice at the philanthropy Arnold Ventures and author of the book “The Science of Second Chances: A Revolution in Criminal Justice.” Doleac, who researches crime and discrimination, was surprised when she first learned about the Federal Bonding Program.

“It’s such a smart idea. Employers say they’re worried about the risk of hiring someone with a record. How do we deal with risk? We provide insurance,” Doleac said. A critic of the Work Opportunity Tax Credit, she said the new research shows why bonds are a better bet. 

“Insurance just moved the needle more, and much more dollar for dollar,” Doleac said.   

Experts divided

Even in states issuing hundreds of bonds a year, that’s just a fraction of those released from prison annually, and a smaller share of all people with criminal convictions. 

“The total number of firms nationally that were involved, it seemed like a very small number,” Hoffman said. “There's interesting variation across states, but overall, just not that much usage.”

Just 27 Wisconsin employers participated in the program in the last five years, according to federal records obtained by Wisconsin Watch. Those businesses range from national retailers like Dollar Tree to smaller agricultural businesses like Rine Ridge Farms. 

Why haven’t bonds proven more popular? Wisconsin Watch asked more than a dozen Wisconsin businesses and industry groups about their experience with the Federal Bonding Program. Just one responded, and none agreed to answer questions. 

Hoffman thinks maybe employers just aren’t that worried, or that the risk they’re worried about isn’t covered by the bonds. They may worry the applicant will be unreliable or even dangerous, despite evidence to the contrary. In a 2021 survey by the Society for Human Resource Management, more than 80% of business leaders said second-chance hires perform the same as or better than other employees. 

“If someone does something bad to a customer,” Hoffman said, that customer might sue, or customers might take their business elsewhere. Bonds don’t cover that risk. “That is very difficult to quantify. What is the cost of that sort of event?”

Another possibility, Doleac said, is that employers don’t know about the bonds. Some states may be doing more to get the word out than others, but marketing costs money that state workforce departments may not have.

The more likely explanation, she said, is that the process is too cumbersome for employers who are used to buying insurance that covers all their employees. Although job applicants and employers do not have to complete any paperwork to get a bond, employers still need to keep track of the policies that were issued to a specific employee. 

“It’s just too inconvenient and too much paperwork to keep track of,” Doleac said. She and her colleagues are exploring whether standard policies could include riders covering these workers, without a separate process or schedule. 

Meanwhile, some advocates for formerly incarcerated people worry that the bonds can backfire, making employers worry even more. 

Craig Coleman, a case manager for Forward Service Corporation, helps formerly incarcerated Wisconsinites get trained and find work. He doubts bonds will help them. 

“You’re saying to your employer, ‘If I steal from you, then you'll be reimbursed,’” Coleman said. “I’m not an HR person, but if I had someone come in with an insurance policy saying, ‘If I steal from you,’ that’s the end of the conversation. I'm not hiring you.”

Genevieve Martin of Talent Nova agrees. Before starting a website designed to help formerly incarcerated people prepare for the workforce, she worked at Dave’s Killer Bread, which built its brand on hiring people with criminal records. 

There, she trained more than 50 other companies on “fair-chance hiring,” teaching them that hiring people with criminal records isn’t risky. Talking about extra insurance policies undermines that message, she said.

“Rather than hiring the person because they’re the best person for the job, but they happen to have a record. Now we’re trying to say, ‘Here’s an insurance policy. Please do it,’” Martin said. 

The fact that Wisconsin employers seldom use fidelity bonds might even be a good sign. The state has unusually strong organizations that prepare applicants for work and match them with employers, said Josh Morby, who represents such groups as spokesperson for the Wisconsin Workforce Hub. If those organizations are doing their jobs well, employers will trust their participants — no insurance policy necessary. 

“Wisconsin employers are looking for candidates who are screened, prepared and supported so hiring justice-impacted talent becomes a reliable workforce solution, not a risk,” Morby said in an email.

Wisconsin bond use lags 

The bonding program’s popularity varies among states, according to data Wisconsin Watch obtained from the U.S. Department of Labor’s Employment and Training Administration. In 2025, New Jersey issued 277 bonds, and Washington, D.C., issued 192. 

Meanwhile, 12 states didn’t issue any in 2025. 

Wisconsin Watch requested interviews with workforce officials in New Jersey, Tennessee, Washington, D.C., and West Virginia to learn why employers there are using more bonds. None responded. A U.S. Department of Labor spokesperson also declined an interview. 

One possible explanation for the higher numbers is that those states have higher unemployment rates. But Wisconsin’s unemployment rate was at a historic low in 2018, when the state issued 27 bonds, more than 12 times as many as it did in 2025. 

In 2019, Wisconsin workforce officials requested the maximum $100,000 federal grant to buy more bonds. They said they planned to buy 1,000 bonds over four years, plus more with other funds. They estimated more than 5,500 Wisconsinites with criminal records were eligible. The bonds, they said, would help break “the cycle of recidivism.”

But the COVID-19 pandemic — which shuttered businesses and locked down prisons — derailed the state’s plans. 

“With the unemployment rate at an increased rate in Wisconsin, many recruitment efforts for employers to use Fidelity Bonds (have) slowed,” officials wrote in each quarterly grant report from April 2020 to February 2021.

When the grant period ended in 2023, Wisconsin had issued just 59 bonds. Officials wrote that, despite their outreach efforts, their bond numbers were “extremely low.”

The bond’s popularity has since further waned. In each of the last two years, Wisconsin issued no more than three bonds. Department spokesperson Haley McCoy attributed that to the state’s tight labor market. 

“Given the strong demand to fill vacant positions, employers have not needed the added incentive of fidelity bonds to hire justice-involved employees during this historically strong economic period,” McCoy wrote in an email to Wisconsin Watch.

Asked whether the Department of Workforce Development plans to make any changes to Wisconsin’s bonding program, McCoy said the bonds are “just one tool in the toolbox that can help a job seeker secure a job.” 

“We’ll continue to work with our partners to provide opportunities and prepare job seekers and workers for their next opportunity in Wisconsin,” McCoy wrote.

From a job market ‘hidden force’ to a lever against bias

Meanwhile, Arnold Ventures researchers are trying to figure out how to get more businesses across the country to use federal fidelity bonds or something similar. 

Criminal justice director Carson Whitelemons has been studying ways to improve the federal program. But she said just trying to understand how bonding works and how it fits with existing business policies can be “incredibly difficult.”

“Even for business owners who are trying to ask their insurers what is covered and what is not covered, it's not always clear, and often that realm of uncertainty, I think, is what makes employers cautious,” Whitelemons said.

But it’s not just about bonding. The work is part of a new effort she’s organizing with experts from a variety of fields, trying to understand the biases that can keep people from getting all kinds of coverage and how to fix them.  

“(Insurance) is such a powerful lever in terms of what people feel safe or empowered to do, what they feel protected from. This has come up again and again in terms of different issues in the United States, in home ownership and redlining — insurance is often this hidden force, especially in areas where there is stigma or discrimination.”

Hoffman, the HR economist, said if more employers use bonds, that could help dispel misconceptions about people with records. 

“Employers … think they’re less productive than they actually are,” Hoffman said. That’s not the problem bonds are designed to solve, but if bonding gets more employers to hire these applicants, the experience may change how they view similar applicants in the future, he said. 

Meanwhile, officials from Wisconsin’s Department of Corrections will continue teaching prisoners about these seldom-used bonds and encouraging them to pitch the opportunity to their potential future bosses — for better or worse.  

Hongyu Liu is a data investigative reporter for Wisconsin Watch. Email him at hliu@wisconsinwatch.org. 

Natalie Yahr reports on pathways to success statewide for Wisconsin Watch, working in partnership with Open Campus. Email her at nyahr@wisconsinwatch.org.

‘Second chance’ bonds show promise. Few Wisconsin businesses use them 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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• In the 26 school districts where voters prioritized lower property taxes over more school funding, their decisions spell brisk change. 

• Leaders in at least 11 districts have shared plans for cuts since the election, and those from three other districts are considering closures. 

• Several are preparing to put another referendum on the November ballot, or hoping state legislators allocate more funding to K-12 public schools. 

• The pace of the sweeping changes highlights how district leaders rely on referendums to balance their budgets — and how, for many, the ask to voters was a final effort before resorting to significant changes.

Parent Jackie Lindsey voted in favor of the Fond du Lac School District’s $30 million referendum earlier this month because she thinks past budget cuts have created a poorer classroom experience for her two children. So when voters shot down the proposal, she ached with frustration. 

Now, just three weeks after Election Day, district leaders said they’ll close two schools and cut 30 more employees. Lindsey worries the resulting larger class sizes will leave teachers even less equipped to help struggling students, like her seventh and ninth graders who have disabilities.

“We’re going to see a lot of worn-out teachers who are doing their very best with what they’re given, but have such a high workload that it’s going to affect them mentally and physically,” Lindsey said.

In the 26 districts that, like Fond du Lac, failed to pass referendums, school leaders have quickly turned to hacking away at their budgets. They’re cutting staff, making plans to close schools and shutting down programs after residents rejected their pleas for more revenue. At least three of these districts are considering closing altogether. 

The swift pace of the sweeping changes highlights how districts are relying on referendums to keep their budgets balanced — and how, for many, the ask to voters was a final effort before resorting to significant changes.

Many Wisconsin district leaders have bemoaned the state’s public school funding as inadequate and are increasingly solving budget imbalances with referendums, which ask voters whether school districts can increase property taxes beyond the limits set by state law to generate more revenue. 

“With the cost of everything, and the fuel prices going up and all of that type of stuff, I think it just played a kind of a perfect storm to put our community in a spot where they just had to say no this time around,” Augusta Area School District Administrator Reed Pecha said. “Hopefully that’ll change next time.”

In districts where voters prioritized lower property taxes over more school funding, their decisions spell brisk change. 

Several school districts are already drawing up plans to put another referendum in front of voters, or hoping lawmakers will bail them out by designating more school funding. 

“If this stuff doesn’t change, the funding formula doesn’t change, state aid doesn’t change, this is just the tip of the iceberg,” Ellsworth Community School District Superintendent Brian Nadeau said. “(Cuts are) going to become an annual thing that we have to deal with until something changes.”

Rocky paths forward

Over $1 billion in referendums from 73 school districts were on the ballot earlier this month. Districts had the tall task of appealing to voters who are increasingly weary of increased property taxes. Ahead of the election, a Marquette University Law School poll warned that a record high 60% of registered voters said they would rather reduce property taxes than increase spending on public schools.

Voters approved 37 of 63 operational referendums, which ask to raise taxes to fund the cost of running schools, such as educational programs, salaries and transportation services. The 12 other proposals asked for revenue for capital construction projects, like building upgrades, nine of which passed.

At least 11 of these districts have shared plans for budget cuts since the election. For example, Monroe School District cut 22 positions. Southern Door County School District plans to slash 16 jobs and freeze pay. The Necedah Area School District will cut staff and put off purchasing new school buses. Dodgeville School District will lay off 13 people. 

Nadeau, the Ellsworth leader, said the district already had cost reductions ready to go in case its $8.7 million referendum didn’t pass. Now it’s rolling out the changes, including cutting roughly 15 staff and redesigning its 4K program. The changes must total $1.9 million to plug next year’s budget hole.

“It’s getting to the point where it’s extremely painful,” Nadeau said. 

Several other districts are drawing up budget cuts or presenting them for a vote at upcoming school board meetings. 

That includes the Augusta Area School District, where voters rejected a $750,000 proposal. The western Wisconsin district is now drawing up cuts to staff, and officials plan to announce reductions in academic programs and extracurricular activities in spring 2027. 

“It was a fairly modest ask, but with the community not supporting that, it definitely means that we have handed out non-renewal (notices to staff),” Pecha said. “We are reducing staff and trying to absorb positions as people have resigned, but we don’t have a lot more to cut.” 

No way forward?

Without much more to whittle from their budgets, some school districts are considering closing altogether. 

After its $3.75 million referendum failed, Hustisford School District in Dodge County lacks “sufficient funding to continue operations beyond this school year,” leaders wrote in a letter to families. The 240-student district canceled its upcoming summer school classes. 

Hustisford could partner with a local district to provide classes next school year while it works to fully dissolve by the following year. The school board will make a final decision by July 1. 

Leaders at Gillett School District in Oconto County find themselves in a similar predicament. District Administrator Nathan Hanson said the district’s budget deficit will deplete its savings by the end of this school year. 

The district is already understaffed. Cutting any more to lower expenses would create class sizes of over 40 students, Hanson said. Schools generally aim to keep classes under 30 students.

“Cutting enough positions to break even next year would be beyond what we believe would keep a viable education for our approximately 549 students,” Hanson said.

Hanson has reached out to the state’s education department and the school attorney to learn more about closing or merging with another district. He confirmed the district will remain open through at least the 2026-27 school year, but would need to “borrow money and pay interest to keep our doors open.” 

“We are learning what we need to know regarding the process of dissolution and consolidation,” Hanson told Wisconsin Watch. “These are not options our board wants to use, but our board is committed to finding the best possible solution for our community’s children.”

If at first you don’t succeed …

Some leaders already have their sights set on the next election cycle, eager to ask voters for more revenue and secure a different outcome. 

School District of Winter Superintendent Craig Olson asked the school board to return to voters with another referendum this November. 

The four-year, $8 million referendum voters rejected earlier this month was Winter’s first operational referendum since at least 2000. Olson attributed the failure in part to a short preparation period that left many residents unaware of the district’s financial situation.

Olson said the district runs an annual deficit of about $1 million. Without a successful referendum, the district could run out of funds within a year and face the risk of closure. He hopes the voters will approve the next referendum if the district has more time to communicate the details with them.

Hanson also said Gillett’s school board will be “very strongly looking at running another operational referendum in the near future.” 

Data indicates districts might have better luck next time. In the 20 districts that went to referendum this year after voters rejected their proposals, 16 passed.

Several district leaders said they’re hopeful the Legislature will help ease their financial woes. 

“I’m just hopeful that our community can see the importance that our schools have,” Pecha said. “And I’m hoping that the state can maybe come through with some funding and hopefully give a little bit of a reprieve to some of us.”

Data reporter Hongyu Liu contributed to this report. 

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Find her on Instagramand Twitter, or send her an email at mdunlap@wisconsinwatch.org.

Failed referendums trigger school cuts, closures and new funding pushes across Wisconsin 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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• High schoolers account for nearly half the student population at the University of Wisconsin-Oshkosh – the largest number of dual enrollment students in the state. 

• As the traditional college-age population shrinks, dual enrollment courses have surged in popularity, transforming UW-Oshkosh’s identity. 

• Few high schoolers who take college courses at UW-Oshkosh decide to attend the university for their undergraduate studies, a trend officials are making efforts to change.

When University of Wisconsin-Oshkosh lecturer Paul Sager logs onto Zoom every Monday, Wednesday and Friday to teach his composition course, he asks his students to paste in the chat what emoji they feel like that day. 

If it’s cold outside, they might send a snowflake, or if they’re feeling motivated, a rocket ship. 

“They find that really fun and ice-breaking,” Sager said. “Feeling connected to your professor, I believe, is an extremely important part of being invested in a course, especially when it’s at the college level.”

That’s especially important for Sager, who has never met most of his students in the flesh, and likely never will.

At UW-Oshkosh, high schoolers make up nearly half of the student body. Many of them live hours away and never actually step foot on campus, instead taking the college courses from their high schools. 

It’s an increasingly popular dynamic as dual enrollment classes — where high schoolers simultaneously earn high school and college credit — soar in popularity and the typical college-aged population shrinks. But UW-Oshkosh enrolls more high schoolers than any university in the state, an endeavor that’s transforming the college’s identity.

The approach has helped UW-Oshkosh combat the big enrollment declines Wisconsin universities have seen in recent years. 

But as more colleges tap into the dual enrollment trend, the state’s fourth-largest UW campus is facing stiffer competition for these students. On top of that, few of them currently continue their education at UW-Oshkosh after high school. College leaders want that to change.

“As the competitive landscape that we operate in gets more competitive, and as the number of total high school students in Wisconsin continues to go down, it’s going to be more important that we get more and more of these students to choose UW-O as their four-year solution, as well,” said Provost and Vice Chancellor for Academic Affairs Edwin Martini. 

A service and a strategy

Dual enrollment is now rapidly taking root across the country, but UW-Oshkosh was ahead of the curve when it launched its program 50 years ago. 

Today, over 6,500 high schoolers get a jump start on college through the university’s Cooperative Academic Partnership Program, dubbed “CAPP.” In most cases, UW-Oshkosh authorizes qualified high school teachers — typically those with graduate degrees in their subject areas — to teach CAPP courses at their own schools. 

Just five UW-Oshkosh professors, Sager included, teach courses to high schoolers virtually. This allows them to reach more rural schools that otherwise lack access to dual enrollment courses, often because they don’t have qualified instructors or enough resources. 

“Given the opportunity to teach these courses, I jumped on it … It’s definitely a calling,” Sager said.

The university charges high schools about half the typical tuition costs for the classes. Students considered economically disadvantaged by the state get added discounts. Each school district decides how it passes the cost of books and tuition onto students. 

If students choose not to attend UW-Oshkosh after graduation, their credits can transfer to 200 other colleges.

Over the past decade, the number of students doing dual enrollment through UW-Oshkosh has nearly doubled. While that mirrors nationwide growth, UW-Oshkosh has leaned fully into the trend, hoping to attract as many students as possible across Wisconsin — and, in some cases, beyond.

“The simple truth is, if Oshkosh didn’t do it, somebody else would,” Sager said. “It’s something that I believe at Oshkosh they’ve really understood as not only a moneymaker, but just an opportunity.”

To attract students, program leaders call schools to tell them about the program and advertise at teacher conferences around the state. But largely, word of mouth and its status as the state’s oldest help win school leaders’ trust. CAPP is the only Wisconsin program accredited by the National Alliance of Concurrent Enrollment Partnerships, an organization holding universities accountable to offering dual enrollment courses as rigorous as normal college courses.

“We’ve had, more than ever, people reaching out to us to get involved,” said CAPP Outreach Specialist Sarah Adelson. 

Today, 45% of UW-Oshkosh students are high schoolers, a phenomenon more common at community colleges than universities. Statewide, high schoolers are just 10% of university enrollment, compared to 1 in 3 community college students.

The dual enrollment growth has been, in many ways, a saving grace for the college. 

Like other Wisconsin universities, UW-Oshkosh has lost thousands of traditional college students — those enrolling after high school graduation — over the past decade. Dual enrollment has helped offset that loss. Overall enrollment is down 9%, but without the high school students, enrollment would be down closer to 36%.

“For us, in part, it is a service. It is something that we’re proud of doing and providing these opportunities to students,” Martini said. “But we do consider our dual enrollment portfolio very much part of our strategic enrollment management portfolio.”

A shifting college experience

Walking across the UW-Oshkosh campus, it’s not immediately obvious how much the student body has changed in recent years.

Classrooms are still filled with what many would consider “typical” college students. Sidewalks bustle with students walking to class. Finding parking can still be competitive.

But in recent years, as more students take classes without setting foot on campus, the university has undergone some noticeable changes: The campus-run bookstore closed. Satellite locations in Appleton and Fond du Lac shut down because of enrollment declines. During a budget crunch, leaders offered voluntary retirement to roughly 50 faculty. And three dorm buildings are slated for demolition, as they no longer need as much space to house students living on campus.  

Teagan Massey-Plamann, a senior at Menasha High School, takes UW-Oshkosh’s dual enrollment courses from about 20 minutes away but has visited campus only once.

“It may not be the experience of being on campus and everything, but I still kind of get to see what the curriculums will look like, and how much studying I’ll need to do,” Massey-Plamann said.

As dual enrollment continues to expand, it raises broader questions about what will define the college experience. While the typical experience most think of is by no means dead, Sager said, it seems pretty rare nowadays.

“All of them, I think, also seek that personal connection with faculty and wanting to have an on-campus experience in one way, shape or form … I don’t know if there is a ‘definition’ for what a college experience even is anymore,” Sager said.

For some, the experience of being a professor has shifted, too — teaching high schoolers is a different task than teaching students a few years older, Sager said. 

“It really is about trying to meet them at their level and understand that, and also apply a little bit of pedagogical changes, so that the assignments mean more to them, and they feel more invested in it,” Sager said.

Great colleges think alike?

When Massey-Plamann graduates from high school this spring, she’ll already have a head start on college, thanks to her UW-Oshkosh dual enrollment courses in statistics, calculus and biology.

“It’s just getting me in the mindset that I’m going to be doing more classes like this next year,” the aspiring art therapist said. “They’re not going to be just classes where I can just sit and do nothing because I get all my work done really quickly. It’s getting me prepared for that time management.” 

That head start will save her both money and stress as she heads to St. Cloud State University in Minnesota to play softball.

Like Massey-Plamann, most UW-Oshkosh dual enrollment students don’t continue their education there after high school. Only about 10% do. 

University leaders want to change that. 

While Adelson said students historically “just come to us,” that’s changing as other Wisconsin colleges try to ride the dual enrollment wave. At the University of Wisconsin-Green Bay, high schoolers now make up about a third of enrollment. Just 20 miles away from UW-Oshkosh, half of the 8,000 students at Moraine Park Technical College are still in high school.

In response, UW-Oshkosh leaders are stepping up recruitment efforts — they’re offering classes other universities don’t, awarding at least $1,000 scholarships to those who enroll the following fall and funding more campus visits for high schoolers.

But UW-Oshkosh leaders acknowledge there don’t seem to be many students left to go after — the pool of college-bound students may already be tapped. CAPP Director Margaret Hostetler said their next push is for students who aren’t planning to attend college at all. They wonder if dual enrollment could change their mind. 

The university is also ramping up advising services, pointing students toward courses that will actually benefit them in the future.

“We don’t want students just taking every single dual enrollment credit they can because that’s not necessarily saving them time or money,” Hostetler said. “To save time and money, you have to have a class that is going to transfer as a course that you will need in your field of study.”

They’ve ramped up marketing efforts to remind dual enrollment students that “they are Titans,” Martini said, mailing them branded T-shirts, banners and posters for teachers to hang in their high school classrooms. 

“What we want is them to have a great experience, and then that builds their affinity with UW-O,” Martini said. “And then they say … ‘Now I want to go to Oshkosh. Now I want to be a Titan.’”

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Email her at mdunlap@wisconsinwatch.org.

At one Wisconsin university, nearly half the students are still in high school 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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• St. Vincent de Paul-Madison started a microloan program in 2023 and has so far made nearly $100,000 in loans to 50 people.  

• Word spread about the program, and leaders at St. Vincent de Paul-St. Thomas More Conference in Appleton decided to implement a similar initiative. 

• People must meet several criteria to be eligible for a low-interest microloan. 

• The local St. Vincent de Paul chapter financially supports the loan, and borrowers work with a partner bank to establish a bank account, get the funds and go through financial education. 

• However, the effort is not without risk. The Madison organization has had people default on their microloans, though leaders declined to say how many.

Mary T. had a $2,500 balance on her credit card. It came with a 26.9% interest rate.

“I wanted to be responsible and pay off my loan … but it was so hard to get it paid off,” the Madison resident said. 

Then, she heard about St. Vincent de Paul-Madison’s microloan program. If she qualified, the organization would pay the credit card loan and Mary would then pay back St. Vincent de Paul on a loan with a 4.3% interest rate through a local bank.

“It’s July 2027 that I’ll have it paid off,” Mary said. “It was not hard to go through the paperwork, and they were so nice to me throughout the whole process.”

Mary is one of about 50 people helped by St. Vincent de Paul’s microloan program since it started in late 2023. The Madison organization launched its initiative to help people living in poverty manage a one-time bill or pay off high-interest payday loans.

“People get trapped in these loans,” said Julie Bennett, CEO and executive director of St. Vincent de Paul-Madison. “They take out a loan to help with a car repair, for example, and the interest just grows. They then need another loan or need to extend the loan because they can’t pay the interest, and it just spirals.”

Since St. Vincent de Paul-Madison started its microloan program, the organization has made nearly $100,000 in loans, and word has spread. The St. Vincent de Paul-St. Thomas More Conference in Appleton launched its microloan program in February. 

“The first microloan we made was for someone who had an auto title loan with a 305% effective interest rate. He had a $1,500 loan, and we were able to get him down to a 5% interest rate,” Bennett said.

Finding an alternative to payday loans

The Madison organization’s leaders learned about microloan programs offered by St. Vincent de Paul conferences in Columbus, Ohio, and Dallas, Texas, after attending national events. Members thought it was a great program they could bring back to Wisconsin, which has some of the highest average payday loan interest rates in the nation. A report from The Pew Charitable Trusts found state residents pay an average of $395 in fees and interest when repaying a $500 loan after four months, for an interest rate of 338%.

As the Madison organization’s leaders worked on the 2019-2022 strategic plan, Bennett said creating a microloan program was included on the to-do list. They looked at other microloan programs and struggled at first to understand the complexity of banking. St. Vincent de Paul-Madison created a task force that included financial representatives who helped them understand how the loan process would work. Representatives from local organizations that work with those living in poverty also joined the task force. 

While St. Vincent de Paul-Madison provides the money for the loans, its leaders must partner with financial institutions to process the loans and help create a positive lending experience for the borrower’s credit report. The Bank of Sun Prairie signed on as the organization’s first banking partner in 2023, with Lake Ridge Bank joining in 2025. 

“We needed a financial partner to take care of all the loan documentation and to make sure the loan was on (the borrower’s) record,” Bennett said. “If they pay off the loan successfully, it looks good on their credit record and gives them something to build on.”

Microloan recipients must meet several requirements to qualify, including being a Dane County resident, having a monthly household income at or below 300% of the federal poverty level, being willing to have a bank account and having a monthly debt-to-income ratio under 47%.

As part of the program, loans range from $400 to $2,500. Borrowers receive low-interest rates between 4% and 8% and set up flexible repayment plans over two years through local banks. 

“We see the microloans as an alternative to payday loans for people who need money but have no other source to go to,” Bennett said. “We also see the microloans as a way to pay off those payday loans, which cause immediate and long-term harm to borrowers since the interest rates keep going up.”

Borrowers also receive financial education and support to help them avoid similar situations in the future. Bennett said St. Vincent de Paul-Madison wanted to provide that education with a sensitive approach. The University of Wisconsin-Extension’s Financial Education program developed training for the microlending team so they could have sensitive, discreet conversations.

“No one likes talking to strangers about their money, and it’s even harder when their financial condition is precarious,” she said.

The microloan program carries some risk for St. Vincent de Paul-Madison. If borrowers default on their loans, the organization is on the hook for paying them off. Unfortunately, that has happened, though Bennett declined to share how many people have defaulted. 

To Mary, being able to get her interest rate to a predictable and manageable number was vital.

“I just know how much I need to pay without the total … going up all the time, with the interest … growing,” she said. “I felt I was never making any progress with the payments. Now, I can see when it’s all going to be paid off, and I know I’m going to get it done.”

An example to others

The Madison team paid their experience forward, and leaders from an Appleton organization took notice.

Karen Rickert, a member of St. Vincent de Paul-St. Thomas More Conference, heard Bennett speak about Madison’s microloan program at an event. In her years as a volunteer, Rickert saw many people caught living paycheck to paycheck. A woman who was hit with a car repair bill and turned to a payday lender stuck with Rickert.

“The repair costs were more than what we could help with. She couldn’t go to work because she didn’t have a working car. She couldn’t take her kids to school because she didn’t have a car. She eventually had to take out one of those terrible payday loans,” Rickert said. “I felt terrible about it, but it sprung me into action.” 

Members from the Appleton organization met with Bennett and learned as much as possible about the Madison group’s microloan program. They put their bylaws and plans together. 

The next step? Raising $20,000 to serve as security for the loans. Thanks to a grant and donations, they nearly doubled their goal.

Nicolet Bank signed on as the financial institution. Rickert said the organization has several volunteers who used to work in finance and banking. They “walk hand-in-hand with our borrowers through the process to help address any issues before they become a problem,” she said. 

For organizations looking to start their own microloan programs, Bennett and Rickert recommended talking to groups with their own initiatives and being prepared to ask a lot of questions. The St. Thomas More Conference learned a lot by talking with the Madison organization and others as they put their microloan program together, Rickert said.

“It was a lot of work and took us a while to get it going, but it was worth it,” she said.

With everything in place, the Appleton organization made its first microloan in February.

“It’s amazing to see this all come together and now we’re able to help people get loans at a reasonable rate and help steer them away from payday loans,” Rickert said. “We’re helping them get a step ahead.”

Learn more: Visit the St. Vincent de Paul-St. Thomas More Conference website at www.svdpappleton.org/other-ways-we-help to request assistance.

Madison microloan program inspires Appleton organization 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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• Jobs for data centers happen in three phases: development, construction and operations. 

• The largest numbers of workers are on site when a data center is being built, experts said. 

• The number of long-term jobs a data center brings depends on the size of the facility. 

• It’s difficult to measure the ripple effects data centers have on the economy; however, experts say local businesses can benefit from producing components and products for data centers. 

• Data center technicians will be in high demand as more facilities come online.

As data center developers stake out land in Wisconsin communities, much debate has surrounded whether the computer-packed warehouses will deliver economic benefits locally. 

Waves of opposition and concerns about land, water and electricity use routinely follow data center proposals, while supporters echo that the centers will create jobs and help the economy. 

But what jobs? How many of them? And will they last?

To answer those questions, Wisconsin Watch talked to three professors:

• Xiaofan Liang, who specializes in urban and regional planning at the University of Michigan.
• Scott Adams, a University of Wisconsin-Milwaukee labor economist. 
• Dijo Alexander, who specializes in information technology, digital transformation and artificial intelligence at the University of Wisconsin-Milwaukee. 

Here are some takeaways.

What kinds of jobs do data centers bring?

Data center jobs fall into three major categories that represent phases in their creation: 

• Development
• Construction
• Operations

A data center first needs people to plan for its existence. Developers, engineers, designers and planners lay that groundwork. 

“The data center industry as an ecosystem is pretty big … When they first introduce a data center to a place, they have to figure out the design standard, how to construct all kinds of facilities, how it connects to city systems,” Liang said.

Then, developers must hire heaps of hands-on laborers to construct the gigantic warehouses from the ground up — the largest portion of workers needed in creating and operating a data center. Among other professions, this includes electricians, plumbers and pipefitters, carpenters, structural steel and iron workers, concrete workers and earth drillers.

The job boom from early phases fizzles out once the building is complete, Liang said. 

“(During) construction time, you usually have a lot more jobs — maybe 10 times in magnitude more so than operations,” Liang said. 

Operations jobs, fewer in quantity, are largely “unglamorous,” Adams said. 

Some of these roles have relatively low barriers to entry, such as maintenance workers and security guards. Meanwhile, electricians and HVAC workers are needed, considering that power and cooling are data centers’ “two most important inputs,” Adams said. 

Adams echoed a popular analogy likening data centers to warehouses full of rotting bananas that need constant cooling and replacing.

“You need banana technicians, more or less, that take the rotted bananas out and replace them with new bananas,” Adams said. “Now, granted, they’re much more expensive bananas in there, and they’re doing a whole lot, and it requires a little more expertise. But again that expertise, by and large, can be developed pretty quickly.”

Those workers will be data center technicians — people who install servers, replace hardware and cables, monitor systems and notice when things break down.

How many jobs do data centers bring? 

The number of jobs created depends on a data center’s size, Liang said.  

That can initially mean thousands of jobs at gargantuan developments like in Mount Pleasant. Microsoft says it has employed 3,000 people to construct the location, compared to 500 full-time workers once the plant is operating. But these numbers are expected to climb as the company constructs a cluster of additional centers at the site. 

Not all of these workers will be local. Given the temporary high demand, the projects will likely need out-of-town construction laborers who travel to the area and don’t stay long term.

Smaller projects will employ far fewer people. For a typical data center, Microsoft estimates it hires about 50 full-time employees. What those numbers mean for the local area depends on the community’s size. 

“In a bigger city, like Atlanta, it’s like a drop in the ocean, right? It doesn’t really affect much,” Liang said. “In a rural area, in a smaller town, hundreds of jobs … are a big deal.”

What about the trickle-down economic benefits? 

A sizable new employer entering communities could ripple across other nearby industries, though Liang notes this is hard to measure. 

“(A data center) just has such a big infrastructure need that trickles down in many different ways,” Liang said. “Now we need expanded utility infrastructure, grid, fiber, water, all these things. Construction of these infrastructure, even though it’s not directly related to (a) data center, could increase local employment in those areas.”

Inside a data center are “cabinets after cabinets of steel frames holding computers” that need to be built, Alexander said. This can boost local manufacturing, especially the metal fabrication industry. 

Wisconsin manufacturers have already begun cashing in on the construction boom nationwide. As Wisconsin Watch previously reported, just three Wisconsin companies alone have amassed more than $1 billion in equipment sales — such as motors, generators and cooling systems —  to data centers.

Massive developments like Microsoft’s in Mount Pleasant can potentially lead to a “tech corridor,” a cluster of warehouses and manufacturers near the data center they serve, Alexander said. 

“If we take the initiative and if we bring a few big enough component manufacturers, we can create locally created components for these data centers to consume,” Alexander said. “It’s like if you have a big restaurant or food manufacturer here, you will have agriculture around there, because it is easy for you to bring your produce for their consumption. Just like that. ”

The trend could also activate industries like nuclear power, Adams said. Building data centers  in conjunction with nuclear reactors to generate their power would fuel even more construction and energy jobs, he added. In Kewaunee County, an energy company wants to rebuild Kewaunee Power Station, a defunct nuclear power plant, anticipating energy demand from AI and data centers.

In more rural communities or near smaller data centers, the trickle-down effects could prove more modest — perhaps a few new restaurants and housing units, Adams said. 

Alexander also noted the effects could also be less concentrated, with growth spilling into neighboring cities as employees work at the center but live elsewhere.

But will enough permanent jobs be created to sustain the growth sparked during the early labor-intensive development phase? That’s unclear, Adams said. 

“We don’t have a firm enough grasp about the indirect effects in the longer term,” Adams said. “Short run, that’ll be great. Longer run, can we sustain the new development that might happen around these? I don’t know the answer to that. I think if the power generation side of it comes in connection with them, there’s more of a chance that that will work.”

Who are data center technicians?

Data center technicians are perhaps the most novel job introduced by the data center boom. The roles are more specialized than others needed inside the warehouses.

Job postings for data center technicians at Microsoft’s Milwaukee location say the workers will be “preparing, installing, performing diagnostics, troubleshooting, replacing, and/or decommissioning equipment under the guidance of more experienced data center colleagues.” 

The posting states the job requires a high school diploma, knowledge of computer hardware and some experience with IT equipment. Pay for lower-level technicians ranges from $23 to $36 per hour, with more experienced workers making up to about $48 per hour.

Adams said likely candidates will include engineers and computer coders and people now entering college with their sights on data center work. Microsoft and Gateway Technical College in Kenosha launched a “Data Center Academy,” preparing students to work in data center operations. Adams believes partnerships like this will become more common.

Are these good jobs?

You can use the interactive table below to explore many of the jobs data centers are expected to create, including wages, employment totals and required education.

Here’s what the data center boom means for Wisconsin’s workforce 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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• The federal Work Opportunity Tax Credit rewards companies for hiring people who often struggle to get jobs.

• Lawmakers are currently in the process of reauthorizing the $2 billion tax credit, which has been around since 1996.

• Proponents of it argue that it helps people get jobs and get off government assistance. 

• However, a new study by researchers at the University of Wisconsin-Madison and the University of Southern California found that the credit fails to increase hiring or pay for workers. 

• Furthermore, large businesses disproportionately use it.

A new study of Wisconsin data finds what some researchers and policy wonks have long suspected: The $2 billion Work Opportunity Tax Credit doesn’t work. 

Congress created the credit in 1996 as it overhauled the country’s welfare system. It rewards companies for hiring people who often struggle to get jobs, including some people who receive government aid, have disabilities or felony convictions or have been out of work for a long time. Employers can typically claim up to 40% of the wages paid to qualifying workers, with a maximum credit of $2,400. 

The credit subsidizes around 4% of all new hires, according to 2022 federal data cited in the study. Overwhelmingly, they’re low-wage, short-term jobs at large employers, including major retailers and temporary staffing agencies, researchers have found. 

Researchers have wondered for decades whether the credit pays off, but most states don’t offer the kind of records that would answer that question. Wisconsin does. 

Thanks to an unusual collaboration between the state government and the University of Wisconsin-Madison, researchers can track the earnings and employment status of participants in certain social safety net programs. 

In a 2025 working paper, researchers from UW-Madison and the University of Southern California studied two decades of records of Wisconsinites who received food aid through the Supplemental Nutrition Assistance Program (SNAP), the most common way an employee qualifies for the tax credit. Researchers compared SNAP recipients who were eligible for the credit with similar recipients who weren’t. 

Their findings were unequivocal. 

“We find that these subsidies do not increase hiring or earnings among eligible groups,” the authors wrote. In fact, they said, their findings rule out even so much as a 0.2 percentage point effect on hiring. 

They estimate 97% of the hiring subsidized by the tax credit would have happened anyway, a phenomenon known as “windfall wastage.” It’s possible, they wrote, that every one of the subsidized jobs falls into that category. 

The companies that take advantage of the credit are disproportionately large. In Wisconsin, they found, half of the subsidies go to just 48 businesses. Nationally, they estimate the credit costs more than $2 billion a year.

“Without reform, the program will continue as a costly transfer to firms with little benefit to the populations it is meant to support,” the researchers wrote.

Meanwhile, a bipartisan group of federal lawmakers wants to increase the credit, which expired in December. 

In November, legislators introduced a bill to extend the credit and expand eligibility to older SNAP recipients and spouses of military service members. The legislation would increase the amount companies can receive and automatically raise the credit amount with inflation. 

In a statement, co-author Rep. Lloyd Smucker, R-Pa., called the credit “a proven tool” that serves workers and employers. “WOTC is a bipartisan, commonsense approach that every Member of Congress should champion,” Smucker said.

Neither Smucker nor co-author Sen. Bill Cassidy, R-La., responded to a request for comment. 

Troubleshooting the tax credit

So why doesn’t the Work Opportunity Tax Credit work? The authors think one important reason is that hiring managers often don’t know which job applicants qualify. 

To receive the credit, employers must certify that they knew the applicant was eligible on or before the day they hired the person. Researchers surveyed 170 companies that use the credit. Less than 1 in 5 screened for eligibility on job applications. At companies that do collect this information, it might stay in the human resources office, never reaching the person who decides who to hire.

That may well be intentional, said UW-Madison economist Corina Mommaerts, one of the authors of the study. Federal and state law bars employers from considering certain factors in hiring decisions. That includes age and, in some cases, criminal record. There are ways to screen applicants without violating such laws, Mommaerts said, “but you can see why employers might still be very concerned.”

In addition, she said, some job applicants may hesitate to tell a prospective employer that they’re eligible. People with felony convictions, for example, may prefer not to draw attention to their criminal records. In the last two years, Wisconsin authorities certified the hires of just over 3,000 people with a felony conviction as qualifying for the credit.

“The concern is that there might be this stigmatizing effect,” Mommaerts said, explaining that some employers try to minimize that by asking applicants to review all the WOTC eligibility categories and indicate whether any apply to them. 

Melissa Riccio, director of inclusive hiring at the national re-entry nonprofit Center for Employment Opportunities, is an expert on that stigma. It’s her job to convince employers that hiring a formerly incarcerated person may not be as risky as they imagine.

Asked about the tax credit, she said such policies won’t singlehandedly make the kind of change she’s looking for, in part because many employers may see them as more work than they’re worth.

“You would never hear any of us say that it would be a bad thing,” Riccio said. “But I don’t think that that alone is enough to move the needle in encouraging employers to make a change in their hiring practices.”

Some policy experts say the new study proves that the temporary tax credit shouldn’t come back. 

Until now, there was little evidence on how well the Work Opportunity Tax Credit works, said Jen Doleac, executive vice president of criminal justice at the philanthropy Arnold Ventures, who researches strategies to reduce recidivism and help formerly incarcerated people get jobs. She and former colleague George Callas penned an October op-ed in Tax Notes calling the credit “completely ineffective.” 

“The evidence is clear: The WOTC does not serve its stated purpose and is a waste of taxpayer dollars,” they wrote. “Encouraging the hiring of workers from disadvantaged groups is a worthy goal. We must devote scarce public resources to solutions that actually achieve it.”

Lobbyists hail a proven, bipartisan tool

Initially authorized for just one year, the Work Opportunity Tax Credit has stuck around far longer — in part because of a powerful lobby. Major backers include payroll processing companies, temp agencies and groups representing the hospitality and retail industries. 

In 2022, a variety of industry groups seeking “solutions to the U.S. labor shortage” joined forces to form the Critical Labor Coalition. One of the coalition’s top priorities: lobbying for WOTC. The group spent $60,000 on lobbying last year, according to watchdog Open Secrets.

“Members of the Critical Labor Coalition — representing restaurants, retail, hotel and lodging, construction, food manufacturing, and other sectors — consistently affirm that strengthening and reauthorizing WOTC is essential both to their industries and to addressing the nation’s ongoing labor shortage,” Critical Labor Coalition Executive Director Misty Chally said in an email. 

Asked about the new Wisconsin study, Chally questioned its “narrow” focus on SNAP recipients. She said her group places “greater confidence” in a 2025 study commissioned by multinational talent management company Allegis Group. The authors of that study estimate renewing WOTC would subsidize 131,000 jobs, but they note it’s not clear how many of those jobs would have existed regardless.

“The exact impact of WOTC on net new job creation is uncertain … While some studies find that WOTC leads to meaningful employment gains among eligible groups, a significant share of the cost may stem from subsidizing hires that would have occurred anyway,” Allegis Group wrote. For their analysis, they assume more than 85% of those jobs would have existed without the credit. 

Why has WOTC stuck around?

Sarah Hamersma has been worried about WOTC for more than 20 years.

In the early 2000s, she was an economics graduate student at UW-Madison interested in programs designed to reduce poverty and help people work. She wanted to study the much larger Earned Income Tax Credit. Her adviser suggested she instead examine the smaller, newer and unstudied Work Opportunity Tax Credit. 

At the time, the credit was just 4 years old and limited to people who received cash welfare assistance. She asked state officials for access to the data. What she found matched what Mommaerts and her colleagues found decades later. Unlike the Earned Income Tax Credit, which gives money directly to low-income workers — and which studies show increases employment and boosts incomes — this tax credit seemed to just boost employers’ bottom lines.

“They’re not passing it along to the workers in the form of higher wages. They’re just sort of being like, ‘Awesome, I got more money,’” Hamersma said.

She wanted to do similar analyses on other places, but she couldn’t find any other states willing to share their data. Now an economist at Syracuse University, she researches programs like Medicaid and SNAP.

“I started studying other programs that seem to make more of a difference … but I always come back to this,” Hamersma said.

From time to time, reporters contact her to ask about it. Lawmakers, not so much.

“I still wait for them to someday call me and say, ‘What should we do, Sarah? Should we reauthorize this?’ Congress has never called,” Hamersma said.

She’s sure legislators didn’t read her research. But she hopes they might read the new study, and that it might sway them. 

“They’ve checked every angle you could possibly check, and the program is not working,” Hamersma said, calling it an “ironclad case.”

The new research was enough to convince Elena Spatoulas Patel, co-director of the Urban-Brookings Tax Policy Center, who saw the authors present their findings at a conference. “That really changed my mind about how we think about the credit,” said Patel, who co-authored a December op-ed calling for an end to WOTC. 

But Congress has reauthorized the credit each time it lapsed before, and it will likely do so again this year, Patel said. It’s not just that there’s so much industry power behind the credit (“a classic case of lobbying versus good tax policy”), she said — it’s also that lawmakers like the idea of it. 

“Unless and until something better is offered, it’s probably easier to renew the credit than to let it expire,” Patel said. “But again, it’s sort of ignoring the point, which is that we are spending taxpayer dollars on this by offering this credit, and it really isn’t helping employment.”

Exactly what the alternative might be is “the million-dollar question,” Patel said. Policy experts say options could include supporting evidence-backed job training programs or expanding the Earned Income Tax Credit.

“If you’re trying to reduce poverty, putting money in the hands of working people is a great way to do it, which is what the Earned Income Tax Credit does … Those low-income working families get more money to spend on the things they need, and we kind of cut out the middleman of the employer altogether,” Hamersma said.

Still, Hamersma doesn’t think Congress will follow her advice anytime soon. 

“This is my cynical take: It’s kind of the perfect program because it benefits corporations, which Republicans historically like, and it seems like it’s supposed to be for poor people, which Democrats historically like,” Hamersma said.

“The facts are kind of irrelevant, the facts where nobody gets helped — it doesn’t quite make it to the top.”

Natalie Yahr reports on pathways to success statewide for Wisconsin Watch, working in partnership with Open Campus. Email her at nyahr@wisconsinwatch.org.

Tax credit meant to help struggling workers mostly helps employers, Wisconsin study finds 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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Click here to read highlights from the story

• In most states, career and technical education programs have received increasing bipartisan support and financial investments. That includes lawmakers creating funding flows in several states that previously lacked them.

• But Wisconsin hasn’t done the same, despite efforts from some state leaders. 

• As a result, access to these courses is uneven across the state, and the programs rely on federal funds many school leaders say are insufficient.

• Wisconsin Superintendent of Public Instruction Jill Underly said she’ll continue to press the Legislature to fund career and technical education programs in the next budget cycle.

Watch a video version of the story here.

As Wisconsin Superintendent of Public Instruction Jill Underly traversed the state last month to visit classrooms, she saw students harvesting and selling farm-fresh food, managing coffee shops and learning in wood shops, among other hands-on training. 

Through career and technical education programs, high school students can take unconventional classes like these that train them for in-demand jobs. The classes are popular among students, and schools want to offer more of them.

“Kids’ imaginations and their talents completely jump to life when they’re immersed in these settings and in these classrooms,” Underly said. 

But whether students can access classes like these largely depends on if their school district can cobble together the funding. That’s because Wisconsin is one of just five states that don’t dedicate state funding to public schools for career and technical education programs. 

In most states, programs teaching students hands-on job skills have secured increasing bipartisan support and financial investments in recent years, with lawmakers creating funding flows in states that previously lacked them. 

Wisconsin hasn’t done the same, leaving access to career and technical education uneven across the state. The programs rely mainly on federal funds many school leaders call insufficient. 

During Wisconsin’s most recent budget process, Underly requested $45 million for schools to spend on career and technical education. But as other issues took precedence, lawmakers rejected that proposal, likely leaving schools without guaranteed state funding for at least another two years. 

“I want to make sure that every kid has these opportunities, and if we were to have dedicated state funding, we can make sure that they do,” Underly said. “Otherwise, we’re just leaving it up to districts. And sometimes whether a district can pass a referendum or not is going to be the difference of if they offer these programs.”

Schools and state education leaders say the federal funding schools get right now falls short of covering these programs, which are often pricey and require high-tech tools and teachers with field experience. 

To make up the difference, schools often rely on piecemeal funding such as grants and donations, or ask voters to approve tax increases to fund new programs. The state has offered more piecemeal grants in recent years, but those funds are unpredictable.

“Career and technical education programs are among the most effective tools we have to keep students engaged, prepare young people for good-paying jobs, and address Wisconsin’s ongoing workforce shortage … Wisconsin employers are already facing serious labor shortages, and failing to invest in our workforce pipeline only makes that problem worse,” state Sen. LaTonya Johnson, D-Milwaukee, a member of the Joint Finance Committee, wrote in a statement to Wisconsin Watch.

Wisconsin an outlier

Early hands-on job training for students has emerged as a popular solution for nationwide skilled worker shortages.

States passed 90 policies bolstering high school career and technical education in 2024, illustrating its increasing political support. 

Advance CTE, a nonprofit representing state career and technical education leaders, reported in 2023 that state funding for high school programs was increasing, while Wisconsin was among a handful of states with no such funding formula.

States have since continued to increase funding, and at least one — Nebraska — has created a funding formula.

Underly made her $45 million request during the 2025-27 biennial budget process. Gov. Tony Evers then suggested a pared-down version – dedicating $10 million – which was scrubbed by the Republican-controlled Joint Finance Committee and not included in the final bill. 

Underly believes lawmakers rejected her request due to widespread pressure to boost funding for the special education services schools are legally required to provide. 

“I do think, though, that our Legislature values these programs,” Underly said. “They’re very proud of the programs that they have in their school districts, but it’s one of those things where it’s just, ‘What’s the most pressing need right now?’”

Wisconsin Watch asked all 16 lawmakers on the Joint Finance Committee why these funds were not included in the budget. Just three responded. Two Democratic lawmakers pointed to the lack of bipartisan communication during the budget process, making it impossible to know why the funding didn’t make the cut. 

“There is no discussion. It is not like we’re having a Mr. Smith goes to Washington, kind of a debate,” said state Sen. Kelda Roys, D-Madison. “There’s no WisconsinEye footage where I can point to them, where Democrats say, ‘Well, we should do this,’ and Republicans say, ‘Well, actually, we don’t want to do that.’”

Continuing the status quo?

The number of Wisconsin students enrolled in career and technical education courses has remained stagnant over the past few years, the most recent state data shows. 

Roughly 64% of Wisconsin high schoolers have taken one of these classes, while just 25% have taken more than one career-focused course. 

Wisconsin gets $25.5 million in federal funds for career and technical education, $8.3 million of which is appropriated to high school programs. Schools have used these funds to “keep the lights on,” said Sara Baird, the Department of Public Instruction’s career and technical education section director. In fact, 23 states give more in state dollars than they receive in federal funds, said Laura Maldonado, senior research associate for Advance CTE.

In the meantime, Wisconsin has allocated career and technical education grant money to schools. Rather than directly funding programs, the funds are “incentive grants,” meaning they give schools money after students graduate from a career and technical education program and earn a certification in a high-need industry. In the 2023-25 biennium, lawmakers bumped the pot from $6.5 million to $8 million, where it stayed in the 2025-27 budget. 

In a response to Wisconsin Watch’s request for an interview, Joint Finance Committee Co-Chair Mark Born, R-Beaver Dam, didn’t say why the committee denied the request for career and technical education funding. He pointed to the incentive grants as proof the Legislature “has consistently supported career and technical education by investing in workforce focused programs.” 

Advance CTE advocates for states to have dedicated funding because it expands access to more students, lends stability and allows flexibility as workforce needs change, according to Maldonado. 

“You’re trying to keep up with that labor market demand, and oftentimes it’s harder to do that with the federal funding,” Maldonado said. “You want to have that more flexible state funding source to be able to adjust that. So I think the main thing is that (federal funding) is often insufficient.”

In December, Wisconsin Watch reported on an Appleton technical charter school that struggles to manage high program costs and secure donations to stay afloat. The school received state grant funding to open, but a decade later, after those initial funds dried up, staff must chase down donations from local businesses.

Underly, whose term ends in July 2029, said she’ll continue to press for the creation of a state funding mechanism in the next budget cycle. 

“If it was up to me … It wouldn’t be $45 million, it would be a lot more,” Underly said.

Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Find her on Instagramand Twitter, or send her an email at mdunlap@wisconsinwatch.org.

Nearly every state funds hands-on job training in high schools. Why not Wisconsin? 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.