MADISON, Wis. – There is a vast gap between the incomes of the highest earners in Wisconsin and the incomes of typical Wisconsin residents, according to a new report from the Center on Wisconsin Strategy and the Wisconsin Budget Project.
In the Badger State, the top 1 percent of earners had income of $933,000 a year or higher, which is 19 times the average annual income of $48,000 that the remaining 99 percent of residents made.
Jon Peacock, the Wisconsin Budget Project’s research director, says that's a huge imbalance.
"The very high percentage of the economic growth that has occurred over the last 45 years in Wisconsin: that's gone to the top 1 percent,” he states. “They're getting almost three-fifths of the income growth that has occurred during that period of time."
The report says income inequality in Wisconsin is now back to the high levels posted just before the Great Depression in the late 1920s.
According to the authors of the report, this widening gap between the highest earners and everyone else in Wisconsin poses a hardship for the state's families, businesses and communities. All Wisconsinites pay the price if too many families and businesses fail to prosper.
Peacock says while incomes in general have been increasing, the rising tide has not lifted all boats.
"It's really held back a lot of low-income and middle income people,” he states. “And it hasn't always been that way, which is why we're optimistic that some changes in policy could result in more equitable distribution of income growth in Wisconsin."
The report makes several suggestions to mitigate the problem. Among them are working to build the skills and education of the state's workforce, having a strong child care system, and raising the minimum wage, which has been frozen in Wisconsin for nearly a decade.
"And we need to remove barriers to work that are holding people back – things like driver's license suspensions for things that have nothing to do with driving,” Peacock stresses. “We also need to protect the Affordable Care Act and expand Medicaid in Wisconsin."
The report also suggests making state taxes more equitable across income groups, saying that people with high incomes should pay at least as much taxes relative to income as people with lower incomes do.
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A bipartisan nonprofit group in Michigan is opposing pending legislation which would reverse a Michigan Supreme Court ruling, stripping paid sick leave and minimum wage protections, slated to take effect this month.
In 2018, Michigan voters approved initiatives to raise the minimum wage and provide paid sick leave but the GOP-led Legislature amended them in the same session, which the court ruled was unconstitutional.
Michigan's minimum wage is currently slated to rise to $12.48 on Feb. 21 and reach $14.97 by 2028.
Monique Stanton, president and CEO of the Michigan League for Public Policy, stressed how the proposed laws would affect Michiganders, especially low-income residents.
"If you get sick, your child breaks their leg, and you need to take a day or two off from work, you're not able to do so," Stanton pointed out. "That means you're making a choice between taking care of your child or being able to pay your utility bills, or being able to make your rent."
The new proposed legislation sets the minimum wage at $12 an hour this year, with tipped wages at 38% of the regular wage. If it becomes law, some Michigan workers' yearly pay will be reduced by $1,000 to $2,400 in the coming years.
Stanton noted polling data revealed keeping the paid sick leave and minimum wage increase has support from both Republicans and Democrats. She added her group is engaging with Michigan residents, businesses and other organizations to raise awareness and gain support.
"This is an issue that really will help people make ends meet, especially as we're worried about the economy and the costs of prices going up," Stanton stressed. "Both the boost to the minimum wage as well that protection for earned sick time are really essential."
The new bills have passed in the House and are now headed to the Senate. If they become law, the change will take effect on Feb 21.
Disclosure: The Michigan League for Public Policy/Kids Count contributes to our fund for reporting on Budget Policy and Priorities, Children's Issues, Livable Wages/Working Families, and Poverty Issues. If you would like to help support news in the public interest,
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Pennsylvania lawmakers return to Harrisburg on Monday, facing renewed pressure to address long-standing issues, including improving the economy and education.
Advocates said it is a crucial opportunity to make meaningful progress on many policies.
Gillian Kratzer, deputy director of the advocacy group Better Pennsylvania, said one key priority Democrats are focused on is improving school funding.
"Making sure that we are equipping schools to do the best that they can for every child in every school district," Kratzer emphasized. "Obviously last year, we had the court case that laid out, finally, that Pennsylvania does not have fair funding for schools, which is part of our state constitution."
Kratzer noted her group anticipates Gov. Josh Shapiro's third budget address on Feb. 4. In the last budget, Shapiro made the largest investment in Commonwealth history for K-12 public education, at just over $1 billion.
Medical marijuana is legal in Pennsylvania but not for recreational use. In the face of a budget shortfall, Kratzer acknowledged it will take bipartisan support, especially from the Republican-controlled state Senate, to secure new revenue sources, which could include legalizing recreational marijuana use.
"Something that we will hopefully see get done this year is doing something on recreational marijuana," Kratzer observed. "As a state, we have to find new sources of revenue, because we are either going to have to dip into our rainy day fund or raise taxes."
She added the state minimum wage remains stagnant at $7.25 an hour. A bill to raise it will be reintroduced. And she stressed the need for lawmakers to consider paid family leave, as the U.S. falls behind globally on the family-friendly policy.
Disclosure: Better PA contributes to our fund for reporting on Civic Engagement, Health Issues, and Livable Wages/Working Families. If you would like to help support news in the public interest,
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Kentucky's unemployment rate is higher than the national average and workers who are employed said they are unsatisfied with their pay, according to new data from the Kentucky Center for Statistics and the Pew Research Center.
Paychecks have not kept up with the cost of living and are too low for the quality or amount of work they do, the survey revealed.
Dustin Pugel, policy director at the Kentucky Center for Economic Policy, said the Commonwealth has relatively low wages compared to other states, with an average household income of about $60,000 a year.
"The bottom 10% of workers had been stagnant for years and years, particularly following the Great Recession," Pugel pointed out. "After the COVID downturn, low-income wages have actually outpaced inflation."
Child care continues to be a major financial burden for households. According to the latest federal data, families spend between 9% and 16% of their income on full-day care for just one child, with costs ranging from around $6,500 to more than $15,000 a year.
Workers are now much more likely than in 2022 to say it would be difficult for them to get the kind of job they would want if they were to look for a new one, especially low-income workers. And more than 60% said they are unlikely to look for a new job in the next six months.
Pugel noted the wage gap and lack of options are driving increased labor organizing in the Commonwealth.
"I think what we've seen is a lot of response to that frustration through increased unionization," Pugel observed. "Especially in low-wage service sectors like baristas and bookstores."
According to the Kentucky Center for Statistics, the state's seasonally adjusted unemployment rate was 5.2% as of December 2024, slightly higher than the national rate. However, Kentucky continues to add new jobs in nonfarm sectors and manufacturing. More than 2 million people contribute to the state's civilian workforce.
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