TUE AM News: Wisconsin BioHealth Tech Hub set to receive additional $49 million investment

July 2, 2024

— The Wisconsin BioHealth Tech Hub is set to get about $49 million to boost technological innovation, the U.S. Dept. of Commerce’s Economic Development Administration announced today.

The state was previously allocated $350,000 in planning funds for the public-private partnership. The latest investment is part of $504 million in implementation grant funding for distribution to 12 tech hubs across the United States. The implementation grant amounts will be finalized in the coming months.

U.S. Sen. Tammy Baldwin, D-Madison, in a press call with Missy Hughes, CEO of the Wisconsin Economic Development Corporation, and Lisa Johnson, CEO of Madison-based BioForward Wisconsin, said the effort “has the potential to revolutionize healthcare as we know it.”

“I’ve always said that in Wisconsin, we make things and we have more iconic items, like beer, brats, motorcycles and cheese, but we also make people’s lives better. This investment will move the needle for how we approach and give health care, helping people lead healthier lives,” Baldwin said.

Hughes said the tech hub is expected to generate about $9 billion in the first 10 years and create 30,000 direct jobs and 110,000 indirect jobs.

“The range of jobs that will be available will be very broad, and we are going to provide the training to make sure that those in underrepresented, underserved communities have an opportunity to participate in that,” Hughes said.

Vice President Kamala Harris in a statement said the money will ensure rural, tribal, industrial and disadvantaged communities benefit from the artificial intelligence, clean energy and biotechnology industries, among others.

The U.S. Department of Commerce in October announced the Wisconsin BioHealth Tech Hub, a consortium led by BioForward Wisconsin, as one of 31 regional tech hubs.

The Tech Hubs program was established under the federal CHIPS and Science Act. Designees include groups focused on advanced manufacturing, autonomous systems, biotechnology and more. Wisconsin’s effort focuses on personalized medicine, which incorporates genetics, AI, advanced imaging and data analysis to match medical treatment to specific patients.

— Milwaukee Public School is projected to receive $81 million less in general aid for the upcoming school year, according to estimates from the state Department of Public Instruction.

More than half of the reduction is due to past overpayments after the district failed to properly report financial data to the state.

The district is set to receive an estimated $555.3 million in the 2024-25 school year, down from the $636.4 million it received for the 2023-24 school year — a 12.7 percent decrease. That includes a $42.6 million adjustment due to a reporting error in the 2022-23 school year, according to an MPS release.

DPI noted in its release that the numbers are preliminary and won’t be finalized until October, when it will send out updated figures. The agency also warned of “greater than usual volatility” in the estimates due to MPS’ delayed reporting.

MPS acting Chief Financial Officer Todd Gray in a statement said “a lot will change between now and October.”

“In the meantime, MPS will use this information to evaluate strategies to make adjustments that will be reflected in the Amended Adopted Budget,” Gray said, adding the plans will be shared with the public once a final estimate is announced.

The district’s failures to properly file financial reports with the state came to light in late spring — after voters had approved a $252 million referendum. Since then, the district has been working on a corrective action plan to ensure compliance with financial reporting requirements.

Meanwhile, Gov. Tony Evers has announced an audit of the district’s operations and instructional practices and GOP lawmakers have been working on a proposal for the Legislative Audit Bureau to do a review as well.

Jilly Gokalgandhi, Milwaukee Board of School Directors vice president, said the board’s priority is to fulfill requirements under the corrective action plan “and put the district in a better place so we can continue serving the children of Milwaukee in the best way possible.”

— Schools will receive an estimated $5.58 billion in general school aids overall for the coming school year, according to the DPI release. It is the largest pot of state aid sent to districts.

While 68.6% of the state’s 421 districts are estimated to receive more aid than the previous school year, 29.5% will see a decrease. Eight districts aren’t expected to see a change in aid. Sixty-four districts are projected to see the maximum decrease of 15%, including the Bayfield, Drummond, Kohler and Northland Pines districts.

Several districts are expected to receive significant increases in aid, including boosts of 172.8% for the Mequon-Thiensville School District, 93.7% for the White Lake School District and 52% for the Wauwatosa School District.

The DPI release notes the agency will provide more information if there are any “significant, unexpected adjustments” to the estimates in the coming months. General aid can go up or down depending on factors such as valuation, enrollment, shared costs, and a change in funds available from the state, according to the release.

The Madison Metropolitan School District, the state’s second-largest, is projected to see a nearly $13.5 million increase in general school aids, a hike of nearly 35.6%.

The MMSD School Board a week ago approved putting two referendum questions on the ballot this fall for voters in the state’s second-largest school district behind Milwaukee. One is a $507 million facilities referendum over 20 years, while the other is a $100 million operational referendum over four years.

The nonpartisan Wisconsin Policy Forum in a report last month noted the district had been projecting a $12.1 million increase in overall state aid, including categorical aids.

The DPI numbers don’t include categorical aids for MMSD, which totaled $19.1 million in 2023-24.

An MMSD spokesperson didn’t immediately respond to an email message seeking comment on whether the new estimate would impact the referendum.

— At the midway point of the 2023-25 budget, the state’s $8.7 billion Medicaid fund is now projected to finish the two-year period with a $5.5 million GPR surplus, according to a new letter DHS sent to the Joint Finance Committee.

That’s down from the agency’s projection three months ago that the fund would finish the biennium with a $26 million surplus in GPR.

In a letter to the Joint Finance co-chairs late Friday, Health Services Secretary Kristen Johnson wrote the revised projection “represents a relatively minor change.”

The difference between the June and May projections is less than 0.25% of the nearly $8.7 billion in GPR that was budgeted for the program this biennium. When factoring in all funds, including federal money, it’s a nearly $28.3 billion program.

The revision was due to new estimates that predict higher nursing home and non-emergency care transportation, as well as other costs.

The agency also noted it has largely completed eligibility reviews of those on the program following the end of a federal requirement that anyone who obtained coverage during COVID-19 remain on the program. The year-end enrollment is 5% lower than what was assumed in the 2023-25 budget. Still, that hasn’t resulted in higher expected savings because enrollment for childless adults is 7% higher than what was assumed in the budget.

The letter doesn’t say why there are more childless adults in the program than expected; those participants on average have higher costs than other groups.

A DHS spokesperson wrote in an email to WisPolitics there wasn’t a single reason the agency could see for the difference in the projections, which were based on a range of variables.

Called “unwinding,” states were directed to begin reviewing eligibility of those enrolled in Medicaid after the federal government ended the requirement that those who joined the program during COVID-19 remain covered.

Wisconsin began the process in June 2023; the previous month, enrollment in Medicaid peaked at 1.68 million Wisconsinites.

According to the latest numbers posted by DHS, there were 1.35 million enrollees in May. That’s still above the 1.2 million that were enrolled in March 2020 as the pandemic hit Wisconsin.

— Froedtert ThedaCare Health, Inc. has announced Dr. Imran Andrabi has transitioned to a new role as president and CEO of the health system.

Andrabi will replace Cathy Jacobson, who retired as CEO effective today. Andrabi has served as president of Froedtert ThedaCare Health, Inc. since Froedtert and ThedaCare merged in January. Before the merger, Andrabi had been ThedaCare’s president and CEO since 2017.

Andrabi said he is “honored and humbled” to take on the new dual role.

“Our purpose is always to connect our diverse communities and patients with the right care at the right time and place,” Andrabi said. “I am eager for the many ways we can uniquely continue expanding access to a complete spectrum of care, from population and community health to the most advanced levels of specialty care.”

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