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Advocacy Update: A Historic Win for Banks in Wisconsin

Updates from the 2023–2025 state budget

By Lorenzo Cruz

As the summer of 2023 comes to a close, the Wisconsin Bankers Association (WBA) is pleased to help usher in a number of historic changes for banks across the state. In July, Governor Tony Evers approved Senate Bill 70 as 2023 Wisconsin Act 19 and established Wisconsin’s 2023–2025 budget. As the Association has previously reported, budget negotiations — which included a massive $6.6 billion surplus — have been ongoing for several months. Undoubtedly, the passion demonstrated in the last several decades by banking advocates has led us to this moment. Thank you to those who have committed their time and efforts to ensuring the banking industry remains relevant and thriving for years to come!

The following recaps business-related provisions from Act 19:

  • Tax-Exemption for Small Business and Ag Purpose Loans

Act 19 creates a new, historic tax-exemption for banks related to certain business and agricultural lending. Learn more about the new tax-exemption here.

  • Largest Investments of $525 Million in Workforce Housing in Wisconsin History

Act 19 provides one-time funding for several new Wisconsin Housing & Economic Development Authority (WHEDA) programs.

  • Increased Shared Revenue for Municipalities

Act 19 added aid for municipalities for fiscal year 2024–2025 and represents a 36% increase over current county and municipal aid entitlements.

  • Income Tax Reduction for Two Lowest Tax Brackets

Act 19 reduced income tax for the lowest two individual brackets leaving more than $3 billion in the general fund for more income tax cuts or spending.

  • Increase in Retailer Vendor Compensation

Act 19 revises section 77.61(4)(c) and increases vendor compensation for retailers. The WBA Government Relations team will continue to monitor this development but are hopeful the vendor compensation increase will reduce an interest in a state credit card interchange fee bill.

  • Creates Sales and Use Tax for Equipment or Software Used at Qualified Data Center

Act 19 creates a sales and use tax exemption for equipment or software used for the processing, storage, retrieval, or communication of data at a qualified data center, as certified by the Wisconsin Economic Development Corporation (WEDC).

Personal Property Tax Repealed

Another significant change in tax policy occurred on the personal property front. For several decades, the business community has been working on legislation to eliminate completely the personal property taxes in Wisconsin. Many states have eliminated the personal property tax and Wisconsin was becoming an outlier in that area. WBA was a member of the Coalition to Repeal Wisconsin’s Personal Property Tax which successfully advocated for a legislative solution that fully repealed the personal property tax effective January 2024 in the 2023 Wisconsin Act 21, which was signed by Governor Evers on June 20. The repeal of the personal property tax eliminates an outdated administratively burdensome requirement and saves the business community nearly $200 million annually.

Upcoming Priorities

With the state budget behind us, the WBA Government Relations team will shift the focus towards fall/spring floor periods and political fundraising/ grassroots efforts. Despite the huge tax parity victory in the state budget — which was a top priority for WBA — the team is now working on other priorities that include, but are not limited to, financial institutions modernization reform, elder fraud, taxes, privacy, trust code updates, and credit card swipe fees.

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Executive Letter: Promoting Financial Literacy and Capability in Wisconsin

Rose Oswald PoelsBy Rose Oswald Poels

Across the state, bankers make remarkable efforts every day to assist their neighbors in building a solid financial future. Promoting financial capability is a long-standing tradition throughout the banking industry, and every year, hundreds of WBA members take part in various financial education-related events to bring awareness and useful resources to Wisconsinites of all ages. Although many bankers do not seek accolades for their achievements, there are important reasons for sharing your efforts with WBA.

The Wisconsin Bankers Foundation (WBF) annually collects two summary forms (individual and bank-wide) through which WBA-member banks share their efforts in improving financial literacy and capability throughout Wisconsin. The information gathered through the Foundation’s website is then utilized by WBA and WBF staff to inform our elected officials and members of our communities of the collective efforts put forth by banks in the state. Additionally, the Foundation staff utilizes these forms to recognize those who go above and beyond in their work during an award ceremony held at WBA’s FLEX: Retail & Marketing Summit (formerly known as the LEAD360 Conference) in the fall.

The 2022–2023 WBF Financial Education Summary Forms recognize the achievements of both banks and their individual team members for their financial education presentations and activities from June 1, 2022 through May 31, 2023. These activities often include volunteer hours with Junior Achievement, Teach Children to Save presentations, and seminars that assist community members in managing or understanding their personal finances.

Individual bankers who volunteer their time and expertise during a presentation, visit, or other financial literacy-focused event should complete the ‘Individual Summary Form.’ Submissions of this form are compiled to highlight the number of presenters and participants, as well as the financial literacy topics covered, each fiscal year. Based on the number of presentations, bankers may also be selected to receive the Financial Literacy Banker of the Year Award, Financial Literacy Banker Award, or a certificate of excellence or recognition.

The bank-wide form is intended to capture information related to the bank’s financial education initiatives. Based on the level of a bank’s total activity, member banks may earn the Excellence in Financial Education Award, presented at the award ceremony at the FLEX Summit.

The Foundation’s prestigious Financial Education Innovation Award is also awarded to one bank that demonstrates in the summary form a creative, far-reaching financial education initiative or program. A separate ceremony honoring the Financial Education Innovation Award is held during the WBA’s annual Bank Executives Conference in February.

By documenting your bank’s efforts in financial literacy, you are helping our team enhance the story and underscore the value of the banking industry by:

  • spotlighting the outstanding efforts of bankers in Wisconsin to increase the financial literacy and capability of their community members,
  • celebrating financial education and the achievements of hundreds of bankers, and
  • providing insight to Foundation staff on topics, tools, and demographics that can be incorporated into future resources.

Thank you to the bankers who continually commit hours of their time and efforts to improving the financial capability of individuals and communities throughout Wisconsin. The Foundation is pleased to recognize and celebrate the outstanding, and often creative, efforts of the WBA membership. I encourage all members — even those who do not seek recognition — to please submit the two forms located on the Foundation’s website by Monday, July 31.

Submit Now
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Chair’s Column: Be the Inspiration for the Future of Our Industry

By Donna J. Hoppenjan

Throughout my 46 years in banking, one thing has remained absolutely certain — the dedication of bankers in Wisconsin. For over 130 years, the Wisconsin Bankers Association (WBA) has stood as the pillar for banking throughout the state. From educational and advocacy opportunities to resources for members to utilize, our Association remains top tier in its ability to provide bankers in Wisconsin with a wide variety of ways in which they can get involved and make a difference in their bank and throughout their community.

As I begin my term as chair of WBA’s Board of Directors — representing over 30,000 bankers throughout Wisconsin — I look forward to continuing the Association’s longstanding tradition of inspiring success within our industry and encouraging every member to consider their role in shaping the future.

The inspiration to expand your skillset, grow your connections, and engage with your community is around every corner. In partnership with WBA, member banks have the ability to take advantage of educational programs designed to assist all bank employees in their pursuit of knowledge and expertise. Our Association hosts a variety of in-person and virtual courses that are not only relevant to bankers in our state, but also facilitate connections with their peers.

At its core, the Association is rooted in engagement. Without the participation of over 150 volunteer Advocacy Officers, committee participants, and advisory board members, WBA would be nowhere near as relevant or impactful as it is today. However, just as the WBA membership plays a role in shaping our Association, each of us has the responsibility to prepare our next generation of banking leaders and shape the perception of our industry.

Through WBA, bankers can participate in events or any combination of peer groups, networks, and committees to enhance their leadership skills and be inspired by the efforts of their peers. WBA also spearheads initiatives such as Power of Community Week, Teach Children to Save Day, Capitol Day, and career nights at various schools that encourage bankers to step out of the office and into their communities. The events offer members opportunities to establish and foster relationships with students, business owners, nonprofit organizations, elected officials, and so many others.

This year, as your team considers the multitude of ways in which you can inspire your fellow bankers, encourage the next generation, and influence growth throughout the industry, I remind you to look to your Association and stand united. Together, we can continue to support the long-term growth of the banking industry and elevate our Association for years to come.

Hoppenjan is president and CEO of Mound City Bank, Platteville, and the 2023–2024 WBA Chair.

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Executive Letter: Governor Supports Business Investment With Bank Budget Provision

Rose Oswald PoelsBy Rose Oswald Poels

On July 5, Governor Tony Evers signed the 2023–2025 state budget and supported a historic tax law change approved by the state Legislature that builds on the state’s success in attracting and investing in Wisconsin businesses. Beginning this year, the new law will promote further economic development by providing banks with an income tax exclusion on income earned from commercial loans for business or agricultural purposes of $5 million or less where the borrower resides or is located in the state of Wisconsin.

Meetings with key legislators and bankers began last summer and continued throughout the year. WBA staff also regularly met with key people in the Governor’s office.

Ultimately, this historic tax law change directly supports economic development as Wisconsin banks continue to work with their Main Street small businesses and farmers. WBA wishes to thank Governor Evers and his Administration, Senate Majority Leader Devin LeMahieu, Speaker Robin Vos, Joint Finance Committee Co-Chairs Sen. Howard Marklein and Rep. Mark Born, and all Joint Finance Committee members, including Rep. Terry Katsma and Sens. Mary Felzkowski and Pat Testin, for their collective leadership in support of Wisconsin’s banking industry. Additionally, WBA wishes to thank the many Wisconsin business and agricultural groups that sent messages of support into the Governor’s office on the bank budget provision.

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Wisconsin Bankers Association Statement on the State Budget

By WBA President and CEO Rose Oswald Poels

In signing the state budget today, Governor Tony Evers supported a historic tax law change approved by the state Legislature that builds on the state’s success in attracting and investing in Wisconsin businesses. Beginning this year, the new law will promote further economic development by providing banks with an income tax exclusion on income earned from commercial loans for business or agricultural purposes of $5 million or less where the borrower resides, or is located, in the state of Wisconsin. 

Ultimately, this state tax law change directly supports economic growth as Wisconsin banks continue to work with their Main Street small businesses and farmers. The Wisconsin Bankers Association wishes to thank Governor Evers and his Administration, Senate Majority Leader Devin LeMahieu, Speaker Robin Vos, Joint Finance Committee Co-Chairs Sen. Howard Marklein and Rep. Mark Born, and all Joint Finance Committee members, including Rep. Terry Katsma and Sens. Mary Felzkowski and Pat Testin, for their collective leadership in support of Wisconsin’s banking industry.    

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Executive Letter: Investing in Our Industry’s Future

Rose Oswald PoelsBy Rose Oswald Poels

As our members are well aware, advocacy is at the heart of the Wisconsin Bankers Association’s (WBA) work to support banks and communities throughout the state. In addition to meeting with legislators, introducing and monitoring legislation at both the state and federal levels, and organizing “Take Your Legislator to Work” days, our team and banker volunteers would not be successful on behalf of the industry without meaningful fundraising for our political accounts.

Last week, nearly 30 bankers took part in the 2023 Kohler Outing benefiting WBA advocacy. Attendees had the choice of golfing at Blackwolf Run or shooting at the River Wildlife Tactical Pistol & Rifle Course. Through the event, participants contributed over $65,000 in support of the Association’s issue advocacy efforts.

Bankers naturally play a crucial role in the Association’s advocacy efforts. I am very proud to say that the Association staff, comprised of nearly 50 employees, also support the Association’s advocacy efforts in addition providing value to the membership through their various positions.

Group photo on golf course
Group photo on golf course
Group photo on hill
Group photo on hill

Earlier this month, WBA hosted our annual staff fundraiser in support of Wisbankpac and the Alliance of Bankers for Wisconsin Conduit Fund (ABW) — two different political accounts created on behalf of Wisconsin’s banking industry. The event, which helps to raise funds in support of pro-banking political candidates, welcomed staff donations (though participation was not required) by way of a specified contribution from payroll, a check made out to one of the funds, or the purchase of one or more ‘Jeans Day’ stickers for a casual dress day at the office. All money raised directly aids in WBA’s advocacy efforts.

For their generosity, and to honor the chosen sport of many bankers, WBA held a collection of U.S. Open-themed events. During the week, every staff member was invited to take part in a chipping competition and rounds of mini golf in our building.

I am proud to announce that our staff collectively raised over $10,550 this year — exceeding our goal of $7,000. This amazing feat by our team highlights the commitment and dedication each WBA staff member has to the industry and our membership.

Golfing indoors
Golfing indoors
Golfing in parking lot
Golfing in parking lot

As we look ahead, our Association has many priorities for the 2023–2024 legislative session — including a tax law change, fending off interchange legislation, and supporting banking modernization — and hopes to raise at least $300,000 to support our advocacy initiatives. With so much at stake, I encourage every WBA-member bank to consider the ways in which their team can partner with WBA to make a difference on behalf of the industry. Whether you choose to make a contribution and join the newly created Leadership Circle, or work alongside your team to earn the WBA BIGG (Bankers Involved with Grassroots and Government) Award, the support and involvement of every member bank is critical to the continued success of our advocacy efforts.

Thank you to those who continue to aid the Association in advocating for a healthy environment for banks in Wisconsin. If you are interested in learning more about the ways in which your bank can get involved, please do not hesitate to reach out to me, Vice President – Government Relations Lorenzo Cruz, or Director – Government Relations Tyler Foti.

Make a Contribution
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Executive Letter: Driving Our Industry Forward

Rose Oswald PoelsBy Rose Oswald Poels

Last Thursday marked the beginning of the Wisconsin Bankers Association’s (WBA) 2023–2024 fiscal year. As I reflect upon the accomplishments our community of bankers has made in the past year, I am honored to not only work alongside a membership so dedicated to the success of their institutions and communities, but also to represent each of you in your unwavering resilience and adaptability.

For over 130 years, our Association has focused intently on the positive impact banks make on communities in Wisconsin. Advocacy — a foundational component to WBA’s mission — allows bankers to make their voice heard on policy that impacts them.

Not only does the team at the Association work tirelessly to comment on proposed rulings and regulations — submitting 11 comment letters in 2022–2023 — and tracking WBA legislative priorities at the State Capitol and in Washington, D.C., I am proud to highlight that over 200 bankers participated in WBA’s advocacy efforts by way of attending the Association’s annual Capitol Day or a D.C. summit. Additionally, bankers in Wisconsin contributed over $275,000 to WBA’s political action and issue advocacy funds.

Alongside advocating on behalf of the Wisconsin banking industry, our Association prides itself on providing bankers with in-depth and up-to-date educational opportunities. In the last year, 6,016 bankers attended at least one of the 93 training programs hosted in-person throughout the state or virtually. Tailored to every level of the bank, these schools, conferences, and webinars allow members to expand their expertise, gain leadership skills, and network with peers.

Above all, WBA’s top priority continues to be supporting its members however possible. Not only did the team produce 30 videos and create 11 consumer resources in 2022–2023, but the Legal Hotline wielded a total of 2,094 calls and the Wisconsin Banker Daily reached over 2,500 bankers from across the state each day.

Looking ahead to the Association’s next year, in addition to our efforts advocating, informing, and educating, WBA staff will continue to update resources and provide Wisconsin banks with the best tools for your technology, insurance, consulting, and other needs. For more information on WBA’s 2022–2023 fiscal year, please look for a complete, in-depth Year in Review in the upcoming July/August Wisconsin Banker.

As always, I thank you for your support of WBA and deeply appreciate your efforts in ensuring the success of our industry. Your membership allows us to continue to advocate for our industry, educate beginning and experienced bankers, and provide valued resources for all areas of the bank. If they have not arrived in the mail already, please expect an invoice for the new fiscal year dues to arrive in the coming days. Do not hesitate to contact me if you have any questions or concerns about your membership. I look forward to working with you and for you.

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Executive Letter: Federal Interchange Legislation

Rose Oswald PoelsBy Rose Oswald Poels

This spring, the Wisconsin Bankers Association (WBA) took two groups of bankers out to Washington, D.C. for our annual legislative lobbying trips in conjunction with the American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) in March and May respectively. The timing of both trips was positive for many reasons, including the ability to weigh in early on various legislative issues since the 118th Congress only first began in January.

One of the issues we lobbied on relates to interchange fee revenue banks receive as part of the payment process. The retail/merchant businesses are back again this Congress (and in Wisconsin as well) lobbying very hard for the re-introduction of the “Credit Card Competition Act (CCCA),” which was introduced last session by Senators Roger Marshall (KS) and Dick Durbin (IL). Proponents of this legislation claim that it will increase competition in the credit card marketplace when, in fact, it will reduce the number of credit card issuers competing for consumers’ business, remove the competitive differences among card products, negatively affect card rewards programs, and put the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board. Among the many arguments we raised included the fact that, according to the Federal Reserve Bank of Richmond, after the Durbin Amendment was implemented, 98.8% of merchants failed to pass through savings realized from debit regulation to consumers, and over 20% increased prices.

When we were in Washington earlier this month, we learned that many Wisconsin businesses, notably Kwik Trip, have been communicating with our entire delegation putting pressure on them to co-sponsor or even introduce the CCCA this session. With Kwik Trip headquartered in his district, newly elected Rep. Derrick Van Orden, in particular, has received a lot of pressure to be a lead sponsor in the House on this bill. Thanks to several constituent bankers who joined me in Washington earlier this month, as of now, Rep. Van Orden is not agreeing to be the lead sponsor or even a co-sponsor. This is a very significant achievement because prior to our visit that week, all indications were that he was going to be a lead sponsor. If it were not for the active grassroots involvement of these bankers on this trip echoing WBA’s (and national trade groups’) messages and communicating the specific harm that will occur to their institutions if this legislation were to pass, I’m not sure Rep. Van Orden would have made the decision he currently has taken.

If you are ever wondering whether your voice makes a difference, this very recent situation should illustrate that it does. It will be imperative for everyone to keep up active grassroots lobbying on this issue with our entire delegation as we meet with them later this summer in-district or see them at other events. For those of you who are in Rep. Van Orden’s district, please thank him next time you see him (or send a message to his office) for staying off the CCCA for now. WBA is closely watching any movement on this issue nationally in case more widespread formal grassroots action is needed. Continue to watch for information on this and other advocacy issues from WBA and know that when we request your involvement, it is needed and it really does matter!

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Executive Letter: Benefits for Every Member of the Organization

Rose Oswald PoelsBy Rose Oswald Poels

In the last year, bankers from around the state have made an incredible effort to make the most of their membership with the Wisconsin Bankers Association (WBA). When 2022–2023 Chair Dan Peterson began his term last June and spearheaded the member-wide initiative to increase engagement, it was impressive to see the multitude of ways in which bankers chose to connect with both their peers and the Association as a whole.

June, the beginning of WBA’s fiscal year, is the perfect time to reassess your involvement in the Association and uncover the programs, groups, and opportunities available for all. I encourage bank leaders to continue to emphasize the employee benefits brought forth by WBA and support all members of the bank in finding the engagement opportunities that are the most meaningful for their professional growth.

The WBA Advocacy Officer program connects individuals with an interest in public policy to opportunities to act and provide input on legislative and regulatory policy items. Working alongside members of the WBA Government Relations team and other Advocacy Officers from throughout Wisconsin, these banker volunteers regularly communicate with bank officers and directors, coordinate advocacy programs such as “Take Your Legislator to Work” days and fundraising initiatives, as well as stay abreast of the latest legislative and governmental issues.

BOLT, or Building Our Leaders of Tomorrow, members represent Wisconsin’s current and emerging bank leaders. The free program is focused on providing bankers with the opportunity to learn, network, and expand their leadership in the banking industry. In addition, bankers are encouraged to attend the leadership summits — held twice per year — to make connections, discuss challenges, and explore new opportunities for personal and professional development.

The CEOnly and CFOnly Network is open to all CEOs and CFOs currently employed at a Wisconsin-chartered bank. The group, which focuses on networking and idea sharing related to Wisconsin’s banking industry, provides bankers with the platform to anonymously ask questions and receive advice as well as connect with peers at up to three in-person networking events.

The newest benefit — WBA’s Diversity, Equity, & Inclusion (DEI) Employee Resource Group (ERG) — was formed in 2022 as a safe space for bankers of historically underrepresented backgrounds to meet and hold open-forum discussions. The ERG, led by a popular speaker at WBA events, Dr. Alonzo Kelly, provides a virtual space to share ideas and experiences, ask questions, and learn from others.

WBA’s Compliance Forum is the Association’s premier Wisconsin-specific program focused on presenting updates and addressing the latest hot topics in compliance. In addition to gaining in-depth information on key issues, members have the opportunity to attend several Compliance Forum events throughout the year to connect with peers, gain CLE and other compliance certifications (subject to approval), and gain access to the Forum’s Google Group.

WBA Connect is a collection of banker-only peer groups designed to keep bankers connected and help one another grow. The free benefit — currently representing bankers with interests in DEI, enterprise risk management, human resources and organizational development, marketing, retail banking, and technology and operations — provides excluive access to the related Google Group as well as the possibility to coordinate in-person networking meetings.

Not to mention the various digital resources — including, but not limited to, the Best Practices Library, Legal Call Program, and Banconomics.com — our Association works to ensure that you and your staff have the resources relevant with the work you do each day and the opportunities to get involved, stay informed, and make an impact both in your community and throughout the banking industry.

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Madison, WI 53718

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