THU AM News: WMC calls Evers budget an ‘attack’ on small businesses and manufacturing; Budget proposal includes provisions on AI workforce

February 20, 2025

— Wisconsin Manufacturers & Commerce, the state’s largest business group, is calling Gov. Tony Evers’ budget “an attack on small businesses, manufacturing, and the middle class” and vows to work with lawmakers to reject his ideas.

In a statement on Evers’ budget proposals detailed in Tuesday’s address, WMC Executive Vice President of Government Relations Scott Manley says the Dem governor wants to tax manufacturing production “at a time when we need to produce more goods” domestically.

Evers is seeking to cap a tax break for manufacturers at $300,000 of their income, which would amount to a tax hike of $792 million. A budget document from the guv’s office says the change would curb “excessive benefits” to high-income earners.

“Taxing small businesses and family-supporting manufacturing jobs is the exact opposite of what Wisconsin needs to do to ease the financial burden on families,” Manley said. “WMC looks forward to working with lawmakers to reject these misguided proposals, and instead enact tax reforms that will make Wisconsin more competitive and prosperous.”

Evers’ two-year spending plan now goes to the Republican-run Legislature, which will likely toss a lot of the governor’s initiatives before returning the massive document to him around June 30, the end of the current biennium.

Other business groups are praising elements of the governor’s proposed budget, with the Wisconsin Transportation Builders Association calling his proposal a “strong foundation” for critical infrastructure projects in the state.

The group says his budget would put nearly $1 billion in new funding into the state’s transportation system, increase the amount Wisconsin can borrow for large projects and boost vehicle title fees.

Steve Baas, the association’s executive director, calls Evers’ proposed funding framework “a strong starting position” for the Legislature’s work.

“The critical importance of keeping our roads safe and our economy strong through smart transportation investment is one of the rare areas of the state budget with bi-partisan consensus,” Baas said in a statement.

The Transportation Development Association says the proposal recognizes that current transportation funding streams are “insufficient” to meet the state’s needs.

“Transportation investment has been an area where bipartisan agreement led to significant progress in recent budgets, and we are optimistic that will be the case again this year,” TDA Executive Director Debby Jackson said.

Meanwhile, the Clean Economy Coalition of Wisconsin is applauding Evers for “numerous” provisions in his budget aimed at expanding clean energy access.

“From doubling our state’s commitment to energy efficiency to capitalizing the state’s green bank, these priorities demonstrate the Governor’s commitment to driving economic growth and job creation,” the coalition said in a statement, also noting Evers’ plans to cut carbon emissions from the energy sector by 2050.

And Imagine MKE, a nonprofit arts and culture organization in Milwaukee, touted the inclusion of “much needed investment” into Wisconsin’s creative industries. The group noted Evers wants a funding increase for the Wisconsin Arts Board, funding for a new Rural Wisconsin Creative Economy Grant Program, and creating a Wisconsin Office of Film and Creative Industries and Film Tax Incentives.

“We will work closely with partners and advocates in Milwaukee and statewide to amplify the understanding that this critical investment is one that will strengthen and grow not just this sector, but the broader Wisconsin economy,” Imagine MKE Executive Director Christine Hojnacki said.

See more budget reactions at the WisPolitics press release page.

— Evers’ proposed biennial budget would put $10 million into technical college grants focused on AI adoption, along with other allocations for related workforce training and implementing the technology at state agencies.

Evers on Tuesday night laid out a number of proposals from his $118.9 billion budget in an address to state lawmakers. His office has issued a 164-page “Budget in Brief” document detailing all of his proposals, ranging from new funding and programs for agriculture and other key industries to workforce initiatives and much more.

One section of the budget focuses on preparing Wisconsin’s workforce to harness AI, recognizing the technology’s potential for affecting labor trends and jobs of the future.

Evers is calling for putting $8 million in general purpose revenue in fiscal year 2025-26 and $2 million in 2026-27 for grants aimed at supporting AI adoption at technical colleges in Wisconsin. This funding would go toward developing curriculum and resources to meet the needs of employers, recruiting and keeping educators in this field, developing infrastructure and creating “stackable” credentials.

Along with the tech college grants, he’s proposing funding for registered apprenticeship navigation, career development and workforce retention programs. He’s also calling for allocating funds to the state’s Wisconsin Fast Forward program for AI training grants going to schools, businesses and “community tech hubs.”

Plus, Evers wants to fund additional positions at the Department of Workforce Development Bureau of Workforce Information Technology Support to collect and share workforce data, “with particular emphasis” on the impact of AI on the workforce. And he wants to dedicate positions at the Department of Administration to support development of AI tools and infrastructure for state agencies.

Joe Kremer, director of the Wisconsin Technology Council’s Investor Networks, says investing in AI workforce development is a “necessary and forward-looking step” to keep the state competitive. But he says the success of such efforts will depend on how well they align with the needs of employers.

He applauds Evers’ focus on stackable credentials, given AI’s rapid evolution, noting “last month’s AI models already feel outdated.” He said the ability to gain skills in targeted ways is critical.

“Expanding workforce data capabilities is another promising move, but the key is how we use that data,” Kremer said in an email. “Are we tracking which AI skills are most in demand? Are we identifying training gaps quickly enough to adjust? Without clear benchmarks, it will be hard to measure real success.”

— Evers in his budget address slammed the health insurance industry and said he wants Wisconsin to be the first state to audit insurers for denying too many health claims.

“I hear from folks all the time who feel like they’re getting ripped off by the health care industry and insurers,” the Dem governor said Tuesday night during his address to the state Legislature. “Folks can’t get a straight answer on what’s covered by insurance and what’s not.”

He ticked off a number of complaints about health insurance and health care more broadly. Included: insurers refusing to cover the cost of certain medical care, surprise charges in medical bills, health insurers deciding whether treatments are medically necessary and others.

“If an insurance company is going to deny your health care claim, they should have a darn good reason for it,” Evers said. “It’s frustrating when your claim gets denied and it doesn’t seem like anyone can give you a good reason why … under my plan, if an insurance company is denying Wisconsinites’ claims too often, we’re going to audit them. Pretty simple. It’s very simple.”

In response to the guv’s remarks, Wisconsin Association of Health Plans CEO and former GOP lawmaker John Nygren said the group is disappointed that Evers didn’t engage with health plans and cooperatives in the state “to discuss the solutions we’re already implementing” ahead of the address.

Nygren points to insurers’ efforts to lower costs, protect access and “deliver high-value care” to state residents.

“Instead, the plan unveiled last night would, in fact, have the opposite effect, and serve only to increase costs for patients across the state and continue to drive healthcare inflation for consumers and businesses alike,” he said.

Along with his proposal to audit certain health insurers, Evers also called for: creating a new office tasked with helping state residents whose claims are denied; establishing new standards to expand what insurers are required to cover; requiring greater transparency from insurers about prior approval; and banning insurers from requiring pre-approval for inpatient mental health services.

He also proposed: creating statewide standards for maximum wait times for scheduling health care appointments; requiring health insurance companies to make sure the services they cover are available nearby; making insurers give state residents notice of unpaid medical bills; and banning health care providers from reporting unpaid bills to consumer reporting agencies during a six-month grace period.

“Folks have to wait to get care until doctors get permission or may end up forgoing treatment altogether because of all the hassles with insurance,” Evers said. “That can cause health conditions to get even worse — even dangerous and even life-threatening.”

Nygren argued Evers’ comments are “particularly unhelpful in spurring meaningful dialogue given the current heightened tensions following the murder of an executive of a national health plan,” referencing the killing of health insurance executive Brian Thompson in New York City.

“The speech not only painted a distorted picture of health care economics, but could be construed to feed the negative and dangerous rhetoric that fueled that horrific act,” Nygren said.

Similarly, the Alliance of Health Insurers says it’s disappointed to see the guv’s budget contains items that “can only be viewed as a direct attack” on health insurers, and called his remarks concerning.

“We need to tamp down on unproductive rhetoric and exchange it for an intentional discourse on the totality of the healthcare delivery system and the root causes of high costs,” the group said in a statement. “Conversations about meaningful reforms to our healthcare system need to be a priority and we look forward to opportunities for those discussions.”

Meanwhile, the Wisconsin Medical Society is praising Evers for including a Statewide Clinician Wellness Program in his proposal, which would help doctors and other care providers with mental and behavioral health issues.

“We’ve all seen how physician burnout affects our workforce, as frustration with practicing medicine can lead to depression, addiction, and even suicide,” said Wisconsin Medical Society President Dr. Cynthia Hart.

See more on Evers’ health care-related budget proposals in the release, and find more coverage at WisPolitics.

Watch the speech here.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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