WED AM News: Increasing share of total WI income going to top earners, report shows; WCMA touting new federal funding for Dairy Business Innovation Alliance

June 26, 2024

— Wisconsin residents now have to earn more than $460,000 per year to be among the top 1% of earners in the state, according to a recent UW-Madison report.

The Division of Extension report was written by Prof. Steven Deller in the university’s Department of Agricultural and Applied Economics. It shows the income needed to be among the top 1% of earners has increased fivefold over the past century or so, as more of the state’s total income is going to the earners in this category.

Using data collected at Sam Houston State University, he found the income needed to reach the top 1% of earnings in Wisconsin increased from $77,339 in 1917 to $462,926 in 2020 for an increase of just under 500%. Those dollar figures are adjusted for inflation.

At the national level, the threshold increased from $110,892 to $541,277 over the same period — an increase of less than 400%.

“Over the last several decades, a common frustration with the U.S. economy is that much of the benefit of economic growth flows to individuals at the highest income levels,” Deller wrote in the report. “While evidence of rising income inequality across the U.S. and Wisconsin is solid, there remains a lack of understanding about how changing income thresholds determine high incomes.”

The report also shows the share of Wisconsin income going to the top 1% of earners rose from 14.2% in 1917 to 17.2% in 2020. For the U.S. overall, that share went from 17.7% to 23.6%.

Two reasons exist for this increase over the decades, Deller wrote. As the economy grows, overall income increases and the thresholds for “high income” rise as well, he noted. And a growing share of total income is going to that upper echelon over time.

“Whether the highest income households (IRS tax filers) are disproportionately benefiting from economic growth is subject to interpretation,” he wrote. “The trend of increasing income thresholds and a larger share of income flowing to the top one percent underscores the ongoing concerns about income inequality.”

See the report.

— The Wisconsin Cheese Makers Association is touting $3 million in new federal funding for the Dairy Business Innovation Alliance, which supports dairy businesses in Wisconsin and 10 other states.

The USDA recently announced $12 million in federal funding for four dairy innovation centers around the country, including the DBIA, which is operated by WCMA and the Center for Dairy Research in Madison. The $3 million will go toward support for product research and development, technical help, education and grants, the release shows.

“The DBIA is delivering real successes — and more than $16 million in grants so far — to dairy businesses across the Midwest,” WCMA Executive Director John Umhoefer said in a statement. “We appreciate USDA’s ongoing support, and we’re excited to continue this critical work with our partners at CDR.”

The DBIA works with dairy businesses in Wisconsin, Illinois, Iowa, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio and South Dakota.

The federal Dairy Business Innovation Initiative was created in the 2018 Farm Bill, and has since directed $165 million in federal dollars to local and regional efforts across the country. WCMA notes federal lawmakers are debating appropriations for the DBII in the next Farm Bill, noting dairy processors’ “voices are urgently needed to advocate for continued funding” for the program.

See the release and listen to an earlier podcast with Umhoefer.

— The director of Marquette University’s Wisconsin Geriatric Education Center is getting a $5 million federal grant for efforts to develop the elder care workforce.

Stacy Barnes, an associate professor of practice in the university’s College of Nursing, is getting the funding from the Health Resources and Services Administration, part of the U.S. Department of Health and Human Services.

The “Geriatrics Workforce Enhancement Program” is meant to improve health outcomes for older adults in Wisconsin, Barnes said in the release.

She says the project will educate the health care workforce about “age-friendly and dementia-friendly” care practices, while bringing more diverse students into the industry and encouraging them to work in underserved and rural areas after graduating. Project funding will be used to help students overcome non-academic barriers, ranging from financial aid to online resources and programs.

The release notes $1.7 million of the grant will be dedicated to Alzheimer’s disease and related dementias.

“This is a unique collaborative grant that pulls together teams from competing health systems, institutions and organizations across Wisconsin to expand interdisciplinary geriatrics education,” Barnes said. “It’s a massive undertaking, but geriatric workforce development is critically needed in Wisconsin and no single institution or system can do it alone.”

Along with Marquette University, the project also involves UW-Madison, the Medical College of Wisconsin, Advocate Aurora Health and the Alzheimer’s Association Wisconsin Chapter, as well as a number of other community partners.

See the release.

— Froedtert ThedaCare Health has named Dr. Robert Cavagnol president of the health system’s north region operations starting July 29.

After Froedtert Health and ThedaCare finalized their merger earlier this year, Froedtert’s previous President and CEO Cathy Jacobson initially took on the CEO role for the combined health system, while former ThedaCare President and CEO Dr. Imran Andrabi became its president. Jacobson is now set to retire at the end of this month, and Andrabi will become president and CEO of the health system, according to a release.

In his new role, Cavagnol will report to Andrabi as part of the health system’s executive leadership team.

“I look forward to joining a strong organization that is dedicated to providing comprehensive, quality care for the patients we are privileged to serve,” he said in a statement.

Cavagnol previously led St. Luke’s Health System in Boise, Idaho, and also held leadership roles with Mercy Health System in Missouri. Before that, he was a surgeon in the U.S. Navy.

See the release.

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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— WEDC is now accepting nominations for this year’s MARKETPLACE Governor’s Awards, recognizing Wisconsin companies owned by minorities, women and service-disabled veterans.

“These awards are meant to showcase Wisconsin’s most promising diverse businesses,” said Missy Hughes, secretary and CEO of the Wisconsin Economic Development Corp.

The nomination deadline is July 19, and award recipients will be highlighted during a Dec. 12 luncheon, part of the MARKETPLACE 2024 business development conference. Award categories include small and large businesses, CEO of the year, best workplace and more.

See more details and submit a nomination here.

— A group of Milwaukee-area business leaders called the 414 Council are hosting a “Red, White and Brew” party July 14 to welcome delegates for the 2024 Republican National Convention.

The RNC Host Committee yesterday announced the event, taking place at Milwaukee’s Henry Maier Festival Park. It’s open to convention delegates and partner organizations, featuring Wisconsin food and drinks and a performance by country music artist Trace Atkins.

Co-chairs for the newly launched 414 Council include: Anne Zizzo, founder and CEO of Zizzo Group Engagement Marketing; Omar Shaikh, Milwaukee restauranter and developer; Jim Kanter of Central Standard Craft Distillery; and Heather Ladage, market president and publisher for the Milwaukee Business Journal.

Alison Prange, chief operating officer for the Host Committee, says local business leaders have embraced the convention and its impact on Milwaukee.

“Our goal as the Host Committee is to showcase our city to the world this summer, and with the help of our supporting partners, we know that this will be a world-class party,” she said in a statement.

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