Government Affairs - Rebecca Kleefisch Entry Sets in Motion Gubernatorial Race

Former Lieutenant Governor Rebecca Kleefisch officially launched her anticipated gubernatorial campaign setting in motion a high stake, competitive race for Wisconsin Governor next year. Kleefisch, 46, is the first known Republican candidate to join the race in a challenge to first term incumbent Democratic Governor Tony Evers, who announced that he’s running for re-election. Kleefisch served as Lieutenant Governor under former Governor Scott Walker from 2011 to 2019. The only other announced GOP candidate so far is businessman Jonathan Wichmann, a relatively unknown name in the race. Other names mentioned as possible Republican primary contenders are State Senator Chris Kapenga of Delafield, State Representative John Macco of Green Bay and 2018 U.S. Senate candidate Kevin Nicholson. But Kleefisch is clearly the heavy favorite among Republicans where she has a strong statewide name ID and has been traveling the state for the past year talking about her policy priorities.

The 2022 midterm elections are traditionally a challenge for the political party in the White House and Wisconsin’s race for Governor will be one to watch closely considering those headwinds will be strong.

The partisan primary election is on Tuesday, August 9, 2022 and the general election is on Tuesday, November 8, 2022.

As employers continue to deal with challenges brought about by the COVID-19 pandemic, the Wisconsin Republican-controlled state legislature and Democratic governor have found some common ground this legislative session to help try and ease the burden on businesses. Governor Tony Evers signed legislation this past summer that prevents an increase in Unemployment Insurance (UI) contribution rates on employers through 2023. This is a positive development for businesses all throughout Wisconsin.

Assembly Bill 406, now known as 2021 Wisconsin Act 59, passed both houses of the state legislature unanimously with no opposition. The newly enacted legislation:

• Prevents the increase of unemployment insurance tax rates on employers by ensuring the state remains in Schedule D for tax years 2022 and 2023; and

• Requires $60 million of General Purpose Revenues (GPR) to be transferred into the UI trust fund in each fiscal year of the 2021-23 biennium to offset any lost revenue

By way of a little background, under state law most private employers are required to make regular payments to the Unemployment Insurance (UI) program at a rate determined by state statute. State law requires two types of payments - contribution payments and solvency payments. Both types of payments are tied to one of four schedules (A-D) with Schedule A containing the highest rates for employers to pay and Schedule D containing the lowest rates. The balance of the Unemployment Reserve Fund on June 30th of each year determines which schedule will be in effect for the next calendar year. State law specifies that Schedule D is in effect for any calendar year whenever, as of the preceding June 30th, the fund has a cash balance of at least $1,200,000,000. Schedule D is in effect for calendar year 2021.

See new employer Schedule D Unemployment Insurance tax rates for 2021 at https://bit.ly/Oct21GovAffairs.

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