(The Center Square) – A group of Wisconsin lawmakers are looking to expand the amount of data center spending eligible for sales tax exemptions despite the fact the current exemption has led to $70 million in forgone sales tax in its first two years, exceeding Department of Revenue estimates.
Assembly Bill 245 would expand the server computers eligible for the tax exemption from networked computers that are linked together to include individual standalone computers at a site. It is scheduled to be heard in the Assembly Committee on Ways and Means on Wednesday.
The bill was introduced by nine representatives, with Rep. Shannon Zimmerman, R-River Falls, authoring the amendment, while the Senate version of the bill is sponsored by Sen. Romaine Robert Quinn, R-Birchwood, and Sen. Julian Bradley, R-New Berlin.
The definition of qualified data centers would also expand to include data centers that include multiple companies, called colocation data centers. Data centers must include an investment of $50 million, $100 million or $150 million within five years from the certification date depending on the population of the county where it will be located.
“Because the Sales and Use Tax Exemption can be used for eligible items purchased by any entity for the benefit of the Data Center, it is difficult to track and monetize,” the Wisconsin Economic Development Corp. said in its fiscal estimate. “Data Centers currently certified well-exceeded the current Minimum Qualified Investment requirement for their respective counties in year one, and the exemption never expires.”
Good Jobs First Senior Research Analyst Kasia Tarczynska said that it is “safe to assume that most of that lost revenue went to Microsoft” of the $40 million in foregone sales tax last year alone.
The sales tax exemptions, enacted in the 2023-25 budget, are good for equipment, construction materials, electricity and more at qualified data centers in the state. So far, WEDC has certified three eligible data centers in the state.
“Broadening the eligibility criteria as proposed will increase the pool of potential data center projects, resulting in additional expenditures at the state and local level in the form of exemptions,” WEDC said in its fiscal note.
The sales tax exemptions are good for equipment, construction materials, electricity and more at qualified data centers in the state.
Many of the usually benefits of a business entering the state – property taxes, sales tax and employment – have already been conceded by the state while questions remain about the impact of energy and water use at the facilities.
The amount of long-term good paying jobs at data centers are also questioned.
Wisconsin’s Department of Revenue estimated the value of the incentives would be $8.5 million for the full multi-year construction of a facility and $735,000 recurring afterward. The department attributed the estimates to the U.S. Chamber of Commerce estimates that a typical data center costs about $215.5 million to construct.
But many of the Wisconsin data centers are much more expensive, with Microsoft recently announcing a second data center in Mount Pleasant that will cost $4 billion.
“The state budget accounted only for regular data centers, not hyperscale like the Microsoft one you have in Wisconsin,” Tarczynska told The Center Square. “Therefore, the cost estimates in the tax expenditure report might be way higher than what they predicted in the budget in 2023.”
The 2023 estimates are the same used for the new bill.

(The Center Square) – Gov. Tony Evers’ office and the Wisconsin Economic Development Corp. have not released records related to an early April trade trip to Europe.
Evers and WEDC officials went to Germany and France and took part in Hannover Messe, the world’s largest industrial trade show.
The trip included visiting Hannover, Hessen, and Berlin in Germany and the Bourgogne-Franche-Comté region in France.
Former WEDC Secretary and CEO Missy Hughes traveled to Europe for the trip along with WEDC Vice President of Global Trade and Investments Micah Oge as well as other WEDC staff.
The Center Square filed public records requests with both Evers’ office and WEDC regarding expenses shortly after the trip and has not received a response for five months as of Sept. 29. That included a follow-up from The Center Square asking for a status update on the requests on Sept. 18, which received no response from either office.
Public funds are often used for official economic development trips. WEDC and Evers’ office also did not respond to requests for further detail on who went on the trip or the costs associated with the trip in early April.
“We’ve seen growing delays from state agencies over the last several years,” Attorney Tom Kamenick, President & Founder of The Wisconsin Transparency Project, told The Center Square. “It’s important for the public to be able to monitor government expenses, especially when officials are spending our money taking trips to foreign countries.
“But journalists can’t report on such things in a timely manner when those same officials delay providing records for months and months. Evers’ administration has to do a better job responding promptly to record requests.”
Hughes has since resigned from her post, as of Sept. 19, and announced on Monday morning that she is running for governor.
Evers’ administration is searching for a replacement, according to a press release. Evers has announced he will not seek reelection.

(The Center Square) – Former Wisconsin Economic Development Corp. head Missy Hughes is entering the race for governor.
“As governor, I will create a main street economy that works for you and includes you,” Hughes said in a campaign video posted Monday morning.
Before taking the WEDC role, Hughes was the leader of Organic Valley, the farmer-owned dairy cooperative, for 17 years.
Hughes joins a crowded field for the Democratic nomination that includes Rep. Francesca Hong, D-Madison, Lt. Gov. Sara Rodriguez, state Sen. Kelda Roys, D-Madison, Milwaukee County Executive David Crowley and former Democrat State Rep. Brett Hulsey.
Republican Congressman Tom Tiffany and Washington County Executive Josh Schoemann are the candidates on the Republican side after Bill Berrien dropped out of the race on Friday.
“I’m not a politician, and that’s the point,” Hughes said. “To create a prosperous economy for the future in all 72 counties, we need a leader who knows what it takes to create jobs, support workers, and attract businesses – and who rejects divisive politics that leaves so many behind.”

(The Center Square) – Republican candidate Bill Berrien has dropped out of the race for governor in Wisconsin.
The Whitefish Bay businessman reportedLY canceled an event in Manitowoc this week after stories were published about him following a trans porn account on Medium.com.
That led Jiz Lee, who Berrien had followed, to write on social media “It’s okay to follow trans porn stars. It’s okay to read articles about sex and relationships. What’s not okay is the hypocrisy of backing forceful legislation that restricts what people, trans and otherwise, can do with their own bodies. That is shameful. “
Berrien sent a statement, saying ““After hunting down war criminals in Bosnia as a Navy SEAL Platoon Leader, I had no idea that running for political office could be almost as dangerous. Eleven weeks ago, I launched my campaign for Governor with a dream for making this The Wisconsin Century, starting this decade. Today, I choose to end it on my terms.”
Republican Congressman Tom Tiffany entered the race this week. He joined Washington County Executive Josh Schoemann on the Republican side while Rep. Francesca Hong, D-Madison, recently joined Lt. Gov. Sara Rodriguez, state Sen. Kelda Roys, D-Madison, and Milwaukee County Executive David Crowley as the major Democratic candidates in the race, along with former Democrat State Rep. Brett Hulsey.
“I consider myself very intellectually curious and, as a leader in business and hoped-for leader in politics, I thought it was a strength to read very widely and show a broad intellectual interest,” Berrien said. “I listen to podcasts every day on my way to work. I am constantly trying to take in new information, trying to learn something new. I follow over 5,000 people across so many platforms.
“I subscribe to over 100 newsletters. And I have hit the ‘like’ button on perhaps 20,000 different articles or postings. Yet the media cherry-picked a handful of individuals and written articles that came across my feed that I then followed (without the faintest clue as to an author’s lifestyle choices!) 6 or 7 years ago, and painted a salacious and sensational picture that was clearly targeted to force me out of this governor race.”

(The Center Square) – A Wisconsin bill would prevent judges who are suspended for misconduct from being paid while they are on leave.
Assembly Bill 380 came in response to Wisconsin Circuit Court Judge Hannah Dugan, who has been suspended by the Wisconsin Supreme Court while facing federal charges.
Dugan is charged with obstruction of a federal proceeding and concealing an individual to prevent discovery or arrest.
Dugan is being paid her salary of $174,512, according to sponsor Rep. Shae Sortwell, R-Two Rivers.
“Taxpayers will now be funding an extended vacation for her while paying additional taxpayers dollars for reserve judges to fill in or delaying more cases,” Sortwell said to the Assembly Committee on Judiciary.
The bill would not apply to Dugan, if passed and signed by Gov. Tony Evers, because Dugan’s case came before a change could occur.
When asked what Dugan should do to earn money while suspended, Sortwell made suggestions.
“We could put her in the clerk’s office and have her file papers, for all I care,” Sortwell said. “Make her do something to earn the salary.”
Sortwell said that the Wisconsin Supreme Court has only suspended 15 judges for official misconduct, calling it a “serious and rare action.”
“Wisconsin taxpayers should be protected from the misconduct and/or commission of a crime by rogue judges,” Sortwell said.
Sortwell said that there is precedent across the country for judges being suspended without pay before a case is finalized, saying that a judge indicted for cattle theft in Texas is currently suspended without pay.
Sortwell said that he was open to amendments to clean up language in the bill or to provide a protection for back pay if a judge is cleared of wrongdoing.
But he added that he believes “the supreme court is not taking action unless it is pretty much a done deal.”

(The Center Square) – A day after Planned Parenthood in Wisconsin said it would pause abortions, the state’s attorney general asked a federal court to make sure Planned Parenthood doesn’t lose any money.
Planned Parenthood of Wisconsin announced that because of a provision in the Big, Beautiful Bill it will “pause” abortions as of Oct. 1.
“Planned Parenthood of Wisconsin is — and always will be — focused on putting our patients first. Our commitment is unwavering: Planned Parenthood of Wisconsin will continue to provide the full spectrum of reproductive health care — including abortion — as soon as we are able to,” Planned Parenthood CEO Tanya Atkinson said in a statement.
The federal legislation bans any clinic that provides abortions from billing Medicaid for other services. While Planned Parenthood isn’t specifically named, the new law is aimed at it.
The Hyde Amendment has blocked federal funds from paying for abortions since the 1970s, but Planned Parenthood has been able to use taxpayer dollars for other, non-abortion services.
Wisconsin Attorney General Josh Kaul and 21 other Democrats AGs asked a court to freeze the Medicaid provision in the bill.
While the AGs argue that Congress overstepped its power and argue that the BBB will cause irreparable harm and increased costs for Planned Parenthood, Kaul is worried that some women in Wisconsin won’t be able to get abortions.
He said it’s a “concern” that “access to abortion, at least for some time period, is again going to become largely unavailable in the state of Wisconsin.”
Pro-Life groups, however, are celebrating the BBB’s defunding requirement.
“It is undeniable that many human lives will be saved for as long as the pause is in effect,” Tia Izzia with the Wisconsin Catholic Conference said.
Wisconsin Right to Life Executive Director Heather Weininger said the defund piece of the BBB closes the ” loopholes that have allowed abortion providers to benefit from Medicaid dollars.”
“Taxpayer dollars should never fund the taking of innocent preborn lives,” she added.

(The Center Square) – Wisconsin lawmakers are asking to increase the penalty for impersonating a police officer after several incidents inside the state and after Minnesota House Speaker Emeritus Melissa Hortman and her husband were shot and killed by a man impersonating an officer in June.
Muskego Police Chief Stephen Westphal pointed to a case earlier this year where a man impersonating U.S. Border Patrol joined an officer at a scene where a teenager had collided with a deer. At that point, Westphal found out that impersonating an officer was a misdemeanor in the state, unlike impersonating someone who works for a state utility or public officer.
“It was a very odd situation for the officer at the scene,” Westphal told the Assembly Committee on Judiciary.
A new bill would make impersonating an officer a Class I felony punishable by up to 3 ½ years in jail and a $10,000 fine instead of the current misdemeanor where the maximum punishment is nine months.
“This bill sends a powerful message that impersonating a law enforcement officer isn’t just lying, it’s weaponizing public trust that puts citizens at risk, it underminds confidence in real officers and it enables serious crimes,” said Jim Palmer, Executive Director of Wisconsin Professional Police Association.
Rep. Chuck Wichgers, R-Muskego, said that there were two cases of impersonation in Washington County and Sun Prairie in 2023 along with the Muskego/New Berlin case this year and a 2018 case in Franklin.
In Washington County, he said, a man claimed he could help the victim avoid legal charges if he received explicit photos and sex.
“I would argue that anybody who is trying to impersonate an officer has nefarious intent,” Westphal said. “Why do I have to wait for them to commit the other crime to get the felony?”
Wichgers and police representatives all said that the bill would act as a deterrent to those attempting to impersonate an officer.
The misdemeanor charge is “out of balance with the gravity of the offense,” according to Palmer.

(The Center Square) – A joint operation between Immigration and Customs Enforcement and FBI Milwaukee led to 21 Manitowoc County arrests of individuals in the country illegally Thursday, FBI Milwaukee said.
Nine of those arrested were suspected to be involved in “the sexual assault and/or trafficking of minor American girls,” the department posted.
“FBI Milwaukee and our law enforcement partners are dedicated to and focused on protecting and safeguarding our Wisconsin communities every day,” the department said.
Attempts by The Center Square to reach FBI Milwaukee were unsuccessful.
The arrests were done with the assistance of U.S. Marshals, the Drug Enforcement Administration, U.S. Customs and Border Protection, and the IRS Criminal Investigations unit.
The arrests are part of increased ICE arrests and immigration enforcement across the U.S.

(The Center Square) – Wisconsin students showed a slight increase in reading and a slight decrease in math scores in numbers released Thursday.
The state’s ACT college readiness test results were an average composite score of 19.2.
The tests showed that 47.7% of students were marked as meeting or exceeding expectations in English Language Arts while 48.6% were marked the same in mathematics in testing this spring.
“While these test scores give us some insight into how our kids are doing academically, they represent a snapshot from a single day and are only one piece of the puzzle,” State Superintendent Jill Underly said in a statement. “Our students, educators, and schools are facing growing challenges — from mental health struggles to economic uncertainty — and that context matters. These results remind us why it’s so important to support the whole child and ensure every Wisconsin student has access to strong, caring educators.”
The Institute for Reforming Government pointed to the state lowering test score benchmarks, making it “easier for wealthier suburban schools to reach proficiency than poorer urban and rural schools.”
The state has widening achievement gaps based upon economic need and between wealthier districts and poorer urban and rural schools.
The results come after Underly said in her recent State of Education speech that funding for Wisconsin schools is an issue and so are private school vouchers.
“All while facing micromanaging from Madison and endless finger-pointing from lawmakers who too often choose politics over partnership,” Underly said during her speech. “And here’s the truth: We are starving one system while funding another. We cannot afford to keep pulling resources away from public schools to fund private ones and expect both to thrive.
“That is not good stewardship. That is not Wisconsin.”
Wisconsin Institute for Law and Liberty Research Director Will Flanders, however, pointed out during the speech that “inflation-adjusted spending has doubled since the 1970s” for Wisconsin schools.
IRG’s Real State of Education showed that the state made record investments in K-12 education during the past two budgets but standards have lowered, results have been stagnant or lowered and “these changed standards make it nearly impossible to track student achievement over time.”
Underly pointed toward the hiring process and teacher retention as issues.
A report earlier this year from DPI showed the average total compensation for teachers in the state is down $22,000 per year since 2010 in inflation-adjusted dollars while only 26.1% of teachers remained at the same Wisconsin public school for their first seven years of teaching.
“Recruiting and retaining great teachers in our classrooms is one of the most powerful ways we can help all kids succeed,” Underly said.

(The Center Square) – The University of Wisconsin is now promising more classes will transfer between more campuses.
The university announced plans to ensure all core, general education classes will transfer between all 13 UW schools.
“While the credits associated with the core general education courses transfer between the UWs, the applicability of the courses has been uneven. The new policy is designed to ensure courses transfer and apply to new graduate requirements consistently,” the university announced in a statement.
“The success of our students is paramount,” UW President Jay Rothman added. “Nothing should keep students from pursuing their dreams, and this policy puts students first.”
Lawmakers have been pushing for the university to make intra-UW transfers easier.”
The idea is to get more UW students to graduate in four years.
“Establishing core general education courses and ensuring their transferability across the UWs would [s]trengthen existing transfer pathways for students transferring not only between UWs but also from the Wisconsin Technical College System,” the university added. “[And] reduce the time to degree completion and the cost of attendance following transfer between UWs.”
Core, general education classes cover courses like basic math, basic science, and social studies classes. The UW also says its ethnic studies class is considered a core, general education course.
Of the 120 credit hours required to graduate at UW school, the university says 30 to 36 of those hours must come from core, general education classes. That’s usually about 10 to 12 separate classes.

(The Center Square) – Wisconsin was graded with a “B” with a $1,100 financial surplus per resident in Truth in Accounting’s new State of the State report.
The Wisconsin numbers ranked the state 23rd out of 50 states while 25 states had negative obligations related to pensions and promised health care benefits to government workers.
Truth in Accounting Founder and CEO Sheila Weinberg told The Center Square that the state’s $1.5 billion in retiree health care liability as her largest concern on the state’s ledger.
“Wisconsin is usually doing pretty well but we are nervous about the federal funding drying up,” Weinberg said. “During COVID, the funding was increased for all of the states.”
Weinberg said that, if funding went back to pre-COVID levels less inflation that Wisconsin would lose $4.2 billion, which was around 8% of the state’s primary government expenses.
Wisconsin’s recently passed budget calls for $113.7 billion of spending over two years, an average of nearly $56.9 billion per year, with $3.6 billion of deficit spending over the two years.
Wisconsin had a $6.9 billion budget balance entering the last biennial budget and a $4.4 billion general fund surplus entering this budget with an estimated $714 million balance after this budget spends down $3.6 billion of the surplus.
“Keep in mind that now, theoretically, the economy is doing pretty well, so you shouldn’t have to be spending down reserves,” Weinberg said.
Weinberg said that her group has pushed for reform of the federal Employee Retirement Income Security Act so that Wisconsin and other states that have funded their pension liabilities won’t be held accountable for states such as Illinois that have not.
ERISA requires federal governments to fund those liabilities but not state and local governments.
Illinois was described by the report as a sinkhole state, ranking 48th overall with liabilities equal to $38,800 per taxpayer. North Dakota had the highest surplus at $63,300 per taxpayer.