MADISON — Wisconsin employers vastly overpaid for unemployment-related costs during the Great Recession because the state wasn't adequately prepared. And when the next big downturn comes, the state could face the same problem all over again.
The issue resurfaced last week when Republican Gov. Scott Walker highlighted a likely drop in what employers are required to pay into the fund covering unemployment benefits. With a $1 billion balance in the fund, legislators and state officials are pointing to it as a success.
But the state Department of Workforce Development says the financing system still has longer-term structural challenges and faces high risks in the event of another recession.