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Democrats Entering and Exiting Governor's Race
Missy Hughes and David Crowley both announced they are suspending their campaigns for Governor of Wisconsin. Then after financial reports were filed and made public, Sara Rodriguez suspended her campaign, and David Crowley reinstated his campaign with an endorsement from Governor Tony Evers. The Democratic Primary for Governor now includes:
- Mandela Barnes
- Joel Brennan
- David Crowley
- Francesca Hong
- Kelda Roys
Waukesha County Executive Paul Farrow Died
Waukesha County Executive Paul Farrow lost his battle with cancer at the age of 61. Farrow served in the State Assembly and in the State Senate where he served as Senate Assistant Majority Leader. He also served as Chairman of the Republican Party of Wisconsin. Farrow has served as Waukesha County Executive since 2015. A visitation celebration has been set for Thursday, August 6th from 4:30 to 6:30 pm at the Waukesha County Expo Center, 1000 Northview Rd., Waukesha.
Waukesha County Board Chair and Acting County Executive Jim Heinrich announced the nomination of Thomas Farley as Interim Waukesha County Executive. According to a release from the Waukesha County Board, “Farley retired in 2016 after a distinguished 31-year career with Waukesha County, serving 25 of those years as Corporation Counsel, the county’s lead attorney. Over the decades, he was an integral adviser during three of the county’s most significant structural transitions: the transition to the County Executive form of government, the 2005 interim transition following the resignation of Dan Finley, and the 2015 leadership transfer from Dan Vrakas to Paul Farrow.” Pending approval of the County Board, Farley will serve in the role until a countywide special election is held on Tuesday, December 15, 2026. The appointment recommendation is scheduled to be reviewed by Executive Committee today, July 20th. The full County Board will consider the appointment at its meeting on July 28, 2026.
2026 Study Committees Set
A full listing of the scopes and membership of the 2026 Study Committees, listed below, is available in this attachment.
Third Quarterly Payment of 2026 Highway Funds
Counties and municipalities will receive more than $180 million in the third quarterly payments for 2026 General Transportation, Connecting Highway, and Expressway Policing Aids. The third quarterly payments paid on July 6th included:
- General Transportation Aids (GTA): $176,663,968.96 to local units of government;
- Connecting Highway Aids (CHA): $4,258,799.53 to 116 eligible municipalities; and
- Expressway Policing Aids (EPA): $5,255,975.00 to Milwaukee County
A complete list of the third quarter aid payments.
Healthcare Now the Largest Employment Sector in Wisconsin
According to a new report from Forward Analytics, Wisconsin’s workforce has shifted from manufacturing as the largest employment sector to healthcare and social assistance professions. According to the report, “From 2001 to 2025, manufacturing employment fell from 560,000 jobs to fewer than 460,000 today, while healthcare and social assistance employment grew from 321,000 to more than 463,000 over the same time period. Wisconsin joins the 46 other states that have made this transition, following national trends. Manufacturing in Wisconsin is still a vital sector, employing nearly 460,000 workers at an average annual wage of $75,117 and contributing an estimated $74 billion to state GDP. The transition follows shifting demographic and economic patterns, driven by the needs of an aging population.”
Hospital Assessment Approved, Shortfall Still Expected
According to an Legislative Fiscal Bureau (LFB) Memo, the Center for Medicare and Medicaid Assistance (CMS) approved the Act 15 (budget) hospital assessment and payment provision, and on June 29th, the Department of Health Services (DHS) published a notice in the Wisconsin Administrative Register that the Act 15 assessments and related hospital access payment provisions are in effect. However, DHS currently projects the program will have a $322.4 million General Purpose Revenue (GPR) shortfall for the 2025-27 biennium, “due to factors unrelated to the Act 15 hospital provision.”
The memo goes on to say, “Except for the number of enrollees in the elderly category, which are now projected to be modestly higher than budget estimates, enrollment in other groups is trending lower than projected. Consequently, the projected deficit is primarily the result of higher expenditures in certain service categories, despite the lower enrollment. In particular, the program is experiencing higher costs for prescription drugs, nursing homes, and federally qualified clinic services, among others… While budget projections may change over the next 12 months, it appears that some action may be needed to avoid a shortfall in the Medical Assistance (MA) GPR appropriation. With limited exceptions, MA program eligibility and benefits are entitlements, established by state and federal laws and the State Medicaid Plan. Thus, the Department's options for taking actions to significantly reduce benefit costs are somewhat limited. The Department may have some ability to modify or delay healthcare provider or managed care payments in order to address the shortfall, although these measures would have negative consequences that would also need to be considered. Even if the Department does reduce the imbalance through payment changes, these measures may not be sufficient to fully resolve the shortfall, and budget adjustment legislation may need to be considered prior to the end of the biennium.”
Fire Departments Receive 2% Fire Dues
The Department of Safety and Professional Services (DSPS) distributed $38,181,592 to fire departments in Wisconsin as part of the Wisconsin 2% Fire Dues Program. The Fire Dues Program requires insurers to pay the state 2% of premiums collected for insurance against loss from fire. Detailed listing of the 2026 distribution.
DNR Asks for Feedback
The Department of Natural Resources is asking for public comment on an update to the Wisconsin State Park System’s strategic plan. The plan includes the following topic areas:
- Provide Quality Outdoor Recreation Opportunities and Settings
- Conserve, Manage, and Interpret Natural, Cultural, and Scenic Resources
- Actively Promote Excellence in Our Workforce
- Strengthen the Wisconsin State Park System Financial Condition
- Build and Strengthen Outreach and Partnership
New Allocation Plan for Housing Tax Credit
The final 2027-28 Qualified Allocation Plan (QAP) were announced. According to the Wisconsin Housing and Economic Development Authority (WHEDA), the Housing Tax Credit (HTC) is a “dollar-for-dollar reduction of federal income taxes owed by owners/investors in qualified projects for tenants whose income are at or below 60% of the County Median Income (CMI).” The HTC are awarded by the QAP.
DCF Announces New Rule in Group Homes
The Department of Children and Families (DCF) announced the approval of an administrative rule “designed to improve licensing, regulation, and quality of care youth receive in group home settings.” According to the DCF release, some of the changes include:
- Enhanced licensee reporting requirements for increased flexibility and training
- Improved admission and discharge processes to better support youth
- Stronger care principles to maximize outcomes
- Expanded rights for residents
- Trauma-informed behavior intervention support
- Better home-like environments
DCF Secretary Jeff Petrl said, “To truly support youth in group homes, our rules must evolve. Raising the bar for care requires a system that prioritizes quality, values the voice of our young people, and centers decisions around what is best for the youth. These changes are helping Wisconsin create environments where youth with complex needs don’t just get by – they thrive.” According to the release, the new rules align with the Putting Families First agenda.
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