1 00:00:07,441 --> 00:00:10,944 PBS Wisconsin Original production. 2 00:00:11,011 --> 00:00:15,582 >> We want to do everything we can to make folks who 3 00:00:16,350 --> 00:00:19,553 have suffered those tragedies as whole as is 4 00:00:19,620 --> 00:00:22,523 possible. >> Recovery efforts 5 00:00:23,690 --> 00:00:27,394 continue after cities and towns were buried under 6 00:00:27,461 --> 00:00:31,098 floodwaters and more tornadoes were recorded 7 00:00:31,164 --> 00:00:35,736 last week than the state typically sees in a year. 8 00:00:35,802 --> 00:00:39,039 I'm Frederica Freyberg. Tonight on "Here& Now", 9 00:00:39,106 --> 00:00:42,276 with some communities still underwater, we look at 10 00:00:42,342 --> 00:00:45,779 cleanup of the damage and if insurance will cover it. 11 00:00:45,846 --> 00:00:48,081 Plus, a state climate report says this kind of 12 00:00:48,148 --> 00:00:50,951 extreme weather is here to stay. 13 00:00:51,018 --> 00:00:54,154 [MUSIC] for refunds from tariffs 14 00:00:54,221 --> 00:00:58,425 deemed illegal, but it may not be that easy. And we 15 00:00:58,492 --> 00:01:01,028 continue our coverage of the governor's race. It's 16 00:01:01,094 --> 00:01:04,431 "Here& Now" for April 24th. [MUSIC] 17 00:01:05,999 --> 00:01:08,435 >> Funding for "Here& Now" is provided by the Focus 18 00:01:08,502 --> 00:01:13,173 Fund for Journalism and Friends of PBS Wisconsin. 19 00:01:21,148 --> 00:01:25,085 >> After a week of historic storms across the state, 20 00:01:25,152 --> 00:01:28,222 residents near the Wolf River in central Wisconsin 21 00:01:28,288 --> 00:01:31,658 were some of the hardest hit with flooding. Some are 22 00:01:31,725 --> 00:01:35,162 just beginning to assess the damage after evacuation 23 00:01:35,229 --> 00:01:38,799 orders sent them fleeing to higher ground. Beyond 24 00:01:38,866 --> 00:01:42,002 bailing out the water, many are calling their insurance 25 00:01:42,069 --> 00:01:45,572 companies to find out what damage is or isn't covered. 26 00:01:45,639 --> 00:01:48,509 Here and now, reporter Steven Potter has this 27 00:01:48,575 --> 00:01:53,580 report from Waupaca County. >> People were in kind of a 28 00:01:55,582 --> 00:01:57,284 panic because this rose faster and more water than 29 00:01:57,351 --> 00:01:59,286 we've ever seen in our lifetime. 30 00:01:59,353 --> 00:02:02,055 >> When heavy storms struck central Wisconsin late last 31 00:02:02,122 --> 00:02:04,958 week, it was far too much for the Wolf River to 32 00:02:05,025 --> 00:02:07,961 handle. A long waterway that bends through Waupaca 33 00:02:08,028 --> 00:02:10,731 County, many residents near the river, and even some 34 00:02:10,797 --> 00:02:13,233 not near the river, quickly found their homes and 35 00:02:13,300 --> 00:02:17,104 property underwater. Communities like Fremont, 36 00:02:17,171 --> 00:02:19,907 New London and Shiocton were swamped. 37 00:02:19,973 --> 00:02:22,943 >> It's worse than anybody anticipated. 38 00:02:23,010 --> 00:02:25,812 >> Jim Falke is a village trustee in Fremont. 39 00:02:25,879 --> 00:02:28,515 >> There's quite a few homes in the area that are 40 00:02:28,582 --> 00:02:31,552 severely damaged with waist deep water. The businesses 41 00:02:31,618 --> 00:02:33,887 have all been shut down for for a week now. 42 00:02:33,954 --> 00:02:37,491 >> As you can see here in Fremont, much of downtown 43 00:02:37,558 --> 00:02:41,395 is flooded still days after. We've got water pumps and 44 00:02:41,461 --> 00:02:43,964 trucks trying to get this water out. One business 45 00:02:44,031 --> 00:02:46,033 owner told me they're simply trying to move water 46 00:02:46,099 --> 00:02:50,370 from one place to another. Resident Yvonne Clemens 47 00:02:50,437 --> 00:02:53,407 owns two businesses in Fremont, one downtown and 48 00:02:53,473 --> 00:02:55,876 one on the river. >> Of course, there's 49 00:02:55,943 --> 00:02:57,878 always been some high water, but I don't think anybody 50 00:02:57,945 --> 00:03:00,781 has ever expected to see it this high. 51 00:03:00,848 --> 00:03:03,984 >> So as for her resort on the river, she says she 52 00:03:04,051 --> 00:03:06,286 doesn't know what's been ruined because it's so 53 00:03:06,353 --> 00:03:07,988 waterlogged she can't get to it. 54 00:03:08,055 --> 00:03:10,490 >> Honestly, I have no idea. I won't know until we see 55 00:03:10,557 --> 00:03:13,060 the extent of the damage and what needs to be 56 00:03:13,126 --> 00:03:16,196 replaced. all the water and the 57 00:03:16,263 --> 00:03:18,265 damage, those affected by recent storms also have 58 00:03:18,332 --> 00:03:20,767 another challenge dealing with insurance companies. 59 00:03:20,834 --> 00:03:22,870 >> It can be a very difficult time for people, 60 00:03:22,936 --> 00:03:25,572 right? You have a storm come through. You realize 61 00:03:25,639 --> 00:03:27,808 that your car is damaged, your house is damaged. 62 00:03:27,875 --> 00:03:29,710 Maybe your your personal belongings are damaged and 63 00:03:29,776 --> 00:03:31,612 it can be scary. You know, people don't necessarily 64 00:03:31,678 --> 00:03:34,615 know what to do, where to turn. 65 00:03:34,681 --> 00:03:36,884 Wisconsin's insurance commissioner. His office 66 00:03:36,950 --> 00:03:39,653 serves as the state's insurance industry watchdog. 67 00:03:39,720 --> 00:03:43,257 >> We're here for people who have questions about 68 00:03:43,323 --> 00:03:45,526 dealing with their insurance policy, or for 69 00:03:45,592 --> 00:03:47,895 people who maybe feel like they're not being treated 70 00:03:47,961 --> 00:03:50,297 fairly. have never encountered 71 00:03:50,364 --> 00:03:53,166 natural disasters before, he strongly recommends 72 00:03:53,233 --> 00:03:55,402 keeping good records in the aftermath. 73 00:03:55,469 --> 00:03:57,971 >> Before you start cleaning up anything or 74 00:03:58,038 --> 00:04:00,174 spending money on any repairs. Make sure you 75 00:04:00,240 --> 00:04:04,077 document the damage. Take pictures. Create an 76 00:04:04,144 --> 00:04:06,580 inventory of anything >> Houdek says people 77 00:04:06,647 --> 00:04:09,583 should resist the urge to move too fast during 78 00:04:09,650 --> 00:04:11,351 cleanup. >> Before you make any 79 00:04:11,418 --> 00:04:13,987 major purchases or throw anything away, you really 80 00:04:14,054 --> 00:04:16,657 want to work with the adjuster to make sure that 81 00:04:16,723 --> 00:04:18,825 you're doing everything in complying with what you 82 00:04:18,892 --> 00:04:20,794 need to, to make sure that the claim is handled 83 00:04:20,861 --> 00:04:22,429 properly. >> But what if your claim 84 00:04:22,496 --> 00:04:24,298 isn't being handled properly? 85 00:04:24,364 --> 00:04:27,801 >> If you feel like your insurance company or the 86 00:04:27,868 --> 00:04:30,237 adjuster is not treating you fairly in terms of 87 00:04:30,304 --> 00:04:32,072 covering things that you feel like should be covered 88 00:04:32,139 --> 00:04:34,408 by your policy, that's when we encourage people to 89 00:04:34,474 --> 00:04:37,010 contact our office to, you know, potentially file a 90 00:04:37,077 --> 00:04:39,112 complaint or just to ask questions. 91 00:04:39,179 --> 00:04:41,481 >> Houdek also notes that insurance policies vary 92 00:04:41,548 --> 00:04:43,984 widely and can be very different depending on the 93 00:04:44,051 --> 00:04:47,254 company and specific coverage. It pays to read 94 00:04:47,321 --> 00:04:49,823 the fine print. >> We encourage people to 95 00:04:49,890 --> 00:04:52,426 check their insurance coverage regularly to make 96 00:04:52,492 --> 00:04:55,395 sure that the coverage they have is appropriate and 97 00:04:55,462 --> 00:04:57,364 provides the necessary protection. 98 00:04:57,431 --> 00:04:59,566 >> One very pertinent example of that is like 99 00:04:59,633 --> 00:05:01,902 what people in Waupaca County are going through 100 00:05:01,969 --> 00:05:04,505 right now. >> If you have damage or 101 00:05:04,571 --> 00:05:06,940 you experience a loss from flooding that typically 102 00:05:07,007 --> 00:05:09,610 isn't covered by a homeowner's policy. 103 00:05:09,676 --> 00:05:11,378 >> Houdek says that Wisconsin residents who 104 00:05:11,445 --> 00:05:13,780 actually have flood insurance are very few and 105 00:05:13,847 --> 00:05:15,983 far between. >> Through the National 106 00:05:16,049 --> 00:05:18,752 Flood Insurance Program, there's only about 10,000 107 00:05:18,819 --> 00:05:21,054 policies statewide. And, you know, obviously we're a 108 00:05:21,121 --> 00:05:24,625 state of about 6 million >> But Houdek says flood 109 00:05:24,691 --> 00:05:26,994 insurance can be affordable and worth it. 110 00:05:27,060 --> 00:05:30,931 >> A designated flood plain or in a place where you 111 00:05:30,998 --> 00:05:33,267 experience flooding regularly. Really? You want 112 00:05:33,333 --> 00:05:35,469 to consider getting flood insurance because we're 113 00:05:35,536 --> 00:05:38,405 seeing more and more situations where flooding 114 00:05:38,472 --> 00:05:41,608 is occurring in places where it really never has 115 00:05:41,675 --> 00:05:44,811 before. Even one inch of water can cause as much as 116 00:05:44,878 --> 00:05:47,948 $25,000 of damage. >> Roy Toepke is a lifelong 117 00:05:48,015 --> 00:05:50,250 Fremont resident. >> I'm going to be 73 118 00:05:50,317 --> 00:05:53,453 shortly and never been anything close to this as 119 00:05:53,520 --> 00:05:55,489 far as flooding. >> He hadn't been back to 120 00:05:55,556 --> 00:05:58,058 his home since evacuation orders were given last 121 00:05:58,125 --> 00:06:00,694 Saturday. He doesn't have flood insurance. 122 00:06:00,761 --> 00:06:04,097 >> We have an exposed basement that I think may 123 00:06:04,164 --> 00:06:07,067 have had some water come in. We'll find out when we get 124 00:06:07,134 --> 00:06:09,169 there. We didn't really look into flood insurance 125 00:06:09,236 --> 00:06:11,038 because technically there's never been a flood where 126 00:06:11,104 --> 00:06:13,373 where we're at, but it might be something we need 127 00:06:13,440 --> 00:06:16,210 to look at in the future. >> Worse than not having 128 00:06:16,276 --> 00:06:19,513 flood insurance is not having any insurance at all. 129 00:06:19,580 --> 00:06:22,449 >> There is a lot of people on the river that do not 130 00:06:22,516 --> 00:06:24,518 have homes, homeowners insurance because of the 131 00:06:24,585 --> 00:06:27,754 cost or just because. Yeah, they just don't have it. 132 00:06:27,821 --> 00:06:31,024 >> Luckily, we do have flood insurance. We have a 133 00:06:31,091 --> 00:06:33,861 call in to them, you know, to start the process. Of 134 00:06:33,927 --> 00:06:36,830 course, it takes a while. We also have regular 135 00:06:36,897 --> 00:06:38,866 insurance. >> Those who may have 136 00:06:38,932 --> 00:06:42,135 insurance may not have enough or the right kind. 137 00:06:42,202 --> 00:06:44,271 >> But you know, sometimes that doesn't cover lost 138 00:06:44,338 --> 00:06:46,473 wages. So for those folks that have businesses that 139 00:06:46,540 --> 00:06:49,176 they rely on for income, it's going to be hard on 140 00:06:49,243 --> 00:06:51,445 those folks. >> Early estimates on the 141 00:06:51,512 --> 00:06:54,681 water damage from last week's storms in central 142 00:06:54,748 --> 00:06:57,217 Wisconsin are already in the millions and continue 143 00:06:57,284 --> 00:07:00,020 to climb. And that's not counting all of the time 144 00:07:00,087 --> 00:07:02,656 spent and tears already shed. 145 00:07:02,723 --> 00:07:05,359 >> I think it's going to be a long haul before we're 146 00:07:05,425 --> 00:07:08,428 able to get it up and going again. 147 00:07:08,962 --> 00:07:11,698 >> Reporting from Fremont. I'm Steven Potter for here 148 00:07:11,765 --> 00:07:15,002 and Now. >> Climate disasters like 149 00:07:15,435 --> 00:07:18,805 flooding and storms are on the rise across the state, 150 00:07:18,872 --> 00:07:23,277 resulting in added human and financial costs. A new 151 00:07:23,343 --> 00:07:26,280 report projects we'll see more intense storms into 152 00:07:26,346 --> 00:07:30,817 the future and more rapid shifts between very wet and 153 00:07:30,884 --> 00:07:34,321 very hot conditions. But there are ways to encourage 154 00:07:34,388 --> 00:07:38,559 climate resiliency, according to Steve Vavrus, 155 00:07:38,625 --> 00:07:40,827 co-director of the Wisconsin Initiative on 156 00:07:40,894 --> 00:07:45,499 Climate Change Impacts. Just out with its 2026 157 00:07:45,566 --> 00:07:47,000 assessment. And thanks very much for being here. 158 00:07:47,067 --> 00:07:50,003 >> Thank you for having me. >> So are the current 159 00:07:50,070 --> 00:07:54,842 floods and last week's 24 tornadoes across the state, 160 00:07:54,908 --> 00:07:57,778 evidence of a changing climate? 161 00:07:57,845 --> 00:08:00,180 >> I think last week's severe weather outbreak is 162 00:08:00,247 --> 00:08:03,517 a combination of random weather variability, i.e. 163 00:08:03,584 --> 00:08:06,587 bad luck in this case, and also climate change. And 164 00:08:06,653 --> 00:08:09,223 the climate change fingerprints are on it 165 00:08:09,289 --> 00:08:12,226 because climate change favors the warm, humid air 166 00:08:12,292 --> 00:08:15,429 masses that we saw out of season, we typically don't 167 00:08:15,495 --> 00:08:17,497 hit 80 degrees and have humid weather in the middle 168 00:08:17,564 --> 00:08:21,134 of April. But if we do, we have the fuel that 169 00:08:21,201 --> 00:08:23,971 generates severe storms. >> So according to your 170 00:08:24,037 --> 00:08:27,140 assessment, what are other trends for climate impacts 171 00:08:27,207 --> 00:08:30,244 going forward? And some examples of that. 172 00:08:30,310 --> 00:08:34,314 >> One of the the key terms or key phrases I like to 173 00:08:34,381 --> 00:08:37,451 use is warmer and wetter. That describes the climate 174 00:08:37,518 --> 00:08:40,020 change we've seen to date, and also the climate change 175 00:08:40,087 --> 00:08:43,056 we're expecting in the future. In Wisconsin, for 176 00:08:43,123 --> 00:08:45,592 example, the 2020s are currently the warmest 177 00:08:45,659 --> 00:08:48,362 decade in state history. The 20 tens were the 178 00:08:48,428 --> 00:08:51,465 wettest decade in Wisconsin's history, and 179 00:08:51,532 --> 00:08:55,068 we've seen an increasing number of heavy rainfalls 180 00:08:55,135 --> 00:08:58,272 punctuated, unfortunately, with the state record last 181 00:08:58,338 --> 00:09:02,910 year. Last summer in Milwaukee, dumping 14.5in. 182 00:09:02,976 --> 00:09:05,145 >> And your report said something that stood out. 183 00:09:05,212 --> 00:09:09,283 It was March used to be part of winter, but now 184 00:09:09,349 --> 00:09:11,885 it's part of spring. >> Yeah. And that's an 185 00:09:11,952 --> 00:09:14,421 interesting new finding that came out of the State 186 00:09:14,488 --> 00:09:17,291 Climatology office. And the reason we talk about it 187 00:09:17,357 --> 00:09:20,761 that way is that in the past, starting in the most 188 00:09:20,827 --> 00:09:23,830 of the 20th century, the majority of time in 189 00:09:23,897 --> 00:09:26,466 Wisconsin, March was below freezing, below 32 degrees. 190 00:09:26,533 --> 00:09:29,903 And recently in the past decade or so, that's 191 00:09:29,970 --> 00:09:32,840 flipped. And now we spend the majority of March above 192 00:09:32,906 --> 00:09:35,409 freezing. And that has big consequences in terms of 193 00:09:35,475 --> 00:09:38,412 whether we get rain or snow. If we get snow, how long it 194 00:09:38,478 --> 00:09:40,981 sticks around, and when our lake ice melts in the 195 00:09:41,048 --> 00:09:43,517 spring. very measurable. And yet 196 00:09:43,584 --> 00:09:47,187 there is still, if not scientific political 197 00:09:47,254 --> 00:09:50,123 skepticism around climate change. What is that like 198 00:09:50,190 --> 00:09:53,827 for a climate scientist? >> More and more people 199 00:09:53,894 --> 00:09:55,829 understand that the climate's changing. The 200 00:09:55,896 --> 00:09:58,632 evidence is all around us. It's hard to miss the 201 00:09:58,699 --> 00:10:02,002 politics. Enter into it in terms of how serious a 202 00:10:02,069 --> 00:10:04,571 problem it is compared with other issues that we're 203 00:10:04,638 --> 00:10:07,841 dealing with, and also what can we do about it, or what 204 00:10:07,908 --> 00:10:10,644 should we do about it, and how much resources should 205 00:10:10,711 --> 00:10:13,847 we put in terms of climate change and other other 206 00:10:13,914 --> 00:10:17,818 issues that we're facing? So I think that the shifts 207 00:10:17,885 --> 00:10:20,254 there's been a shift in terms of how we talk about 208 00:10:20,320 --> 00:10:23,123 climate change, and the surveys show that 209 00:10:23,190 --> 00:10:25,492 increasing numbers of Americans understand and 210 00:10:25,559 --> 00:10:28,629 are aware of climate change. >> Your report looks at 211 00:10:28,695 --> 00:10:32,900 ways Wisconsin can mitigate against the impacts like 212 00:10:32,966 --> 00:10:36,103 nature based strategies. What's an example of that? 213 00:10:36,170 --> 00:10:39,406 >> Yeah. So we talk about in the wiki report, the 214 00:10:39,473 --> 00:10:42,509 wiki assessment, a range of options ranging from what 215 00:10:42,576 --> 00:10:44,912 we call traditional mitigation strategies, 216 00:10:44,978 --> 00:10:47,047 which is cutting carbon emissions, reducing the 217 00:10:47,114 --> 00:10:50,484 source of climate change to adaptation. And that is 218 00:10:50,551 --> 00:10:52,586 accepting that there will be impacts. And now 219 00:10:52,653 --> 00:10:55,923 figuring out what to do with it. We try to promote 220 00:10:55,989 --> 00:10:58,659 nature based impacts. These are things like green 221 00:10:58,725 --> 00:11:01,762 infrastructure. Instead of relying strictly on 222 00:11:01,828 --> 00:11:04,131 traditional infrastructure. So for instance, with more 223 00:11:04,198 --> 00:11:06,767 heavy rainfalls, the traditional engineering 224 00:11:06,834 --> 00:11:09,970 approach is to build bigger stormwater pipes, increase 225 00:11:10,037 --> 00:11:13,040 the size of culverts. But there are also nature based 226 00:11:13,106 --> 00:11:16,777 green strategies such as rain gardens and green 227 00:11:16,844 --> 00:11:19,780 roofs, and bioswales and wetland restoration that 228 00:11:19,847 --> 00:11:22,649 can all be as effective or more effective, and also 229 00:11:22,716 --> 00:11:25,619 more reduce the costs as well. 230 00:11:25,686 --> 00:11:28,555 >> How well does Wisconsin's infrastructure 231 00:11:28,622 --> 00:11:31,892 hold up to these changing climate impacts? 232 00:11:31,959 --> 00:11:35,162 >> It's a mixed bag. One of the ways that we're 233 00:11:35,229 --> 00:11:37,431 struggling right now is with these increasing 234 00:11:37,497 --> 00:11:41,401 numbers of extreme rainfall, because much of Wisconsin's 235 00:11:41,468 --> 00:11:44,872 infrastructure was built 40, 50, even 100 years ago, in 236 00:11:44,938 --> 00:11:47,441 some cases for a different climate. And that climate 237 00:11:47,508 --> 00:11:50,744 was cooler and it was drier than the climate we're 238 00:11:50,811 --> 00:11:54,615 experiencing now. And so certain ways that we used 239 00:11:54,681 --> 00:11:57,684 to manage stormwater just aren't valid anymore. They 240 00:11:57,751 --> 00:12:00,554 aren't as effective. And so the infrastructure can't 241 00:12:00,621 --> 00:12:03,624 hold up as well. >> So is there a dollar 242 00:12:03,690 --> 00:12:05,759 figure on how much it would cost to make Wisconsin 243 00:12:05,826 --> 00:12:08,462 climate resilient infrastructure and 244 00:12:08,529 --> 00:12:11,131 otherwise? dollar amount. But I like 245 00:12:11,198 --> 00:12:13,534 to bring up the old adage that an ounce of prevention 246 00:12:13,600 --> 00:12:16,336 is worth a pound of cure. And a lot of studies show 247 00:12:16,403 --> 00:12:19,139 that a dollar invested in becoming more resilient 248 00:12:19,206 --> 00:12:22,876 pays off many times over in terms of reduced damage. 249 00:12:22,943 --> 00:12:26,180 And a good example of that was with Milwaukee becoming 250 00:12:26,246 --> 00:12:29,016 much more flood resilient over the years. The 251 00:12:29,082 --> 00:12:31,385 Milwaukee Metropolitan Sewerage District in 252 00:12:31,451 --> 00:12:33,453 particular, has done a number of things that have 253 00:12:33,520 --> 00:12:35,822 made the city more resilient to climate change 254 00:12:35,889 --> 00:12:39,293 and heavy rainfalls, and the damage from last 255 00:12:39,359 --> 00:12:41,195 summer's rains would have been much, much worse 256 00:12:41,261 --> 00:12:43,664 without that. >> All right. Well, Steve 257 00:12:43,730 --> 00:12:45,599 Vavrus, thanks very much and thanks for your work. 258 00:12:45,666 --> 00:12:48,669 >> Thank you. >> The federal government 259 00:12:48,735 --> 00:12:53,407 is being forced to return more than $165 billion in 260 00:12:54,041 --> 00:12:57,578 collected tariffs to domestic importers and the 261 00:12:57,644 --> 00:13:00,948 online portal to request those refunds went live 262 00:13:01,014 --> 00:13:04,918 this week. The U.S. Supreme Court struck down President 263 00:13:04,985 --> 00:13:08,388 Trump's tariffs, resulting in the order to refund the 264 00:13:08,455 --> 00:13:12,025 import taxes. Wisconsin businesses are looking to 265 00:13:12,092 --> 00:13:16,129 get some relief, including Viroqua based Wonderstate 266 00:13:16,196 --> 00:13:19,900 Coffee, with its three locations across the state. 267 00:13:19,967 --> 00:13:23,437 CEO T.J. Semanchin joins us now from Viroqua. And 268 00:13:23,504 --> 00:13:26,139 thanks a lot for being here. >> It's good to be here. 269 00:13:26,206 --> 00:13:28,175 Thank you. >> So first question, how 270 00:13:28,242 --> 00:13:32,813 much did tariffs cost you? >> Yeah, we paid almost 271 00:13:35,883 --> 00:13:38,785 $140,000 in tariffs last year. 272 00:13:38,852 --> 00:13:43,290 >> That's that's a that's a big number for any business. 273 00:13:43,357 --> 00:13:47,127 But but in this tariff discussion is coffee 274 00:13:47,194 --> 00:13:50,864 unusual because it's almost all imported. 275 00:13:50,931 --> 00:13:53,033 >> Yeah. We have been saying this from the get go 276 00:13:53,100 --> 00:13:55,669 that we really didn't understand the purpose or 277 00:13:55,736 --> 00:14:00,007 the intent of taxing and tariffing a product that we 278 00:14:00,073 --> 00:14:03,744 can't even, you know, promote. Domestic 279 00:14:03,810 --> 00:14:07,581 production of all coffee is grown in the tropics. 280 00:14:07,648 --> 00:14:10,751 There's a tiny bit grown in Puerto Rico and Hawaii, but 281 00:14:10,817 --> 00:14:15,255 not close to being able to meet the U.S. demand. So we 282 00:14:15,322 --> 00:14:17,758 were, you know, paying a tax that we didn't even 283 00:14:17,824 --> 00:14:21,195 understand what the the impact was, was for. 284 00:14:21,261 --> 00:14:25,632 >> So describe for me where you source your coffee from. 285 00:14:25,699 --> 00:14:28,302 What country? >> Yeah, we source a lot of 286 00:14:28,368 --> 00:14:32,239 coffee from Latin America, from places that people 287 00:14:32,306 --> 00:14:34,808 think about when coffee like Colombia, but also 288 00:14:34,875 --> 00:14:38,779 Peru, Guatemala, Honduras, Mexico, and then also in 289 00:14:38,846 --> 00:14:42,049 Africa. We bring in a lot of coffee from Ethiopia, 290 00:14:42,115 --> 00:14:45,485 which is the birthplace of coffee, and also smaller 291 00:14:45,552 --> 00:14:49,823 countries like Rwanda and Burundi, Kenya. 292 00:14:49,890 --> 00:14:52,860 >> What of the cost of the tariffs meant for your 293 00:14:52,926 --> 00:14:54,361 business? >> Yeah, last year was 294 00:14:54,428 --> 00:14:59,199 really challenging. It was unexpected. You know, my 25 295 00:14:59,266 --> 00:15:04,004 years in coffee, we've never even once considered 296 00:15:04,071 --> 00:15:08,408 a tariff on our coffee that we import. So it was a 297 00:15:09,710 --> 00:15:13,647 curve ball. And already in a challenging business 298 00:15:13,714 --> 00:15:17,017 climate where other costs are going up, like health 299 00:15:17,084 --> 00:15:19,586 care, shipping costs, things like that, that this 300 00:15:19,653 --> 00:15:24,558 was just one more headache. And, and again, not being 301 00:15:25,292 --> 00:15:28,462 expected at all. We had to deal with these costs. One 302 00:15:28,529 --> 00:15:31,665 of the things that people don't quite realize is we, 303 00:15:31,732 --> 00:15:34,234 we had to pay for the tariff before we even got 304 00:15:34,301 --> 00:15:37,070 the product in the country. So, you know, this is 305 00:15:37,137 --> 00:15:39,907 before we could even sell it, we had to borrow money 306 00:15:39,973 --> 00:15:42,910 to pay pay the tariff. So we were then paying 307 00:15:42,976 --> 00:15:45,846 interest costs on, on the, the money we borrowed for 308 00:15:45,913 --> 00:15:48,315 the tariffs. So all these things were compounding and 309 00:15:48,382 --> 00:15:50,517 just making it harder and harder for us. 310 00:15:50,584 --> 00:15:53,687 >> Have you gone online to request a refund and if so, 311 00:15:53,754 --> 00:15:57,824 how is that process going? >> Yeah, we technically are 312 00:15:57,891 --> 00:16:01,662 not the importer of record, so we work with brokers who 313 00:16:01,728 --> 00:16:04,865 do a lot of the logistics for us. So their names are 314 00:16:04,932 --> 00:16:08,101 the ones that are on record for being the importer. So 315 00:16:08,168 --> 00:16:12,239 we're working with them and they as, as one of their 316 00:16:12,306 --> 00:16:16,009 clients and they are, they're applying for those 317 00:16:16,076 --> 00:16:19,446 refunds. And we haven't gotten any word of what the 318 00:16:19,513 --> 00:16:22,149 progress is or, you know, there's a lot of 319 00:16:22,216 --> 00:16:25,319 uncertainty on how this process is going to unfold. 320 00:16:25,385 --> 00:16:28,222 >> To those tariffs, as significant as they were 321 00:16:28,288 --> 00:16:31,425 for a small business get passed along then to your 322 00:16:31,491 --> 00:16:34,628 customers. >> Yeah. In some way or 323 00:16:35,229 --> 00:16:37,464 fashion they did. We had again, last year was 324 00:16:37,531 --> 00:16:41,235 challenging in a lot of ways. Coffee itself, the 325 00:16:41,301 --> 00:16:44,805 cost, the commodity price of coffee skyrocketed last 326 00:16:44,872 --> 00:16:49,543 year. So we were paying a tariff on what was already 327 00:16:50,644 --> 00:16:53,747 historical costs for for coffee. So all these things 328 00:16:53,814 --> 00:16:57,084 were compounding. And we did have a price increase 329 00:16:57,150 --> 00:17:00,988 last year that we passed on to our customers. And 330 00:17:01,054 --> 00:17:05,025 tariffs were a part of that. So the you know how much of 331 00:17:05,092 --> 00:17:07,528 that was the tariffs gets a little confusing. And you 332 00:17:07,594 --> 00:17:10,264 know just because there was a lot of factors. 333 00:17:10,330 --> 00:17:12,533 >> What has business planning been like over the 334 00:17:12,599 --> 00:17:15,435 course of these changeable tariffs. 335 00:17:15,502 --> 00:17:19,673 >> We had to reforecast our profit and our budget last 336 00:17:19,740 --> 00:17:24,278 year. We even pulled back on some investments in 337 00:17:24,344 --> 00:17:28,448 growth. We decided not to buy a piece of equipment 338 00:17:28,515 --> 00:17:30,517 last year just because of the the business climate. 339 00:17:30,584 --> 00:17:34,922 This would have been expanding our production 340 00:17:35,622 --> 00:17:38,825 capabilities. And we, you know, this was a piece of 341 00:17:38,892 --> 00:17:41,528 equipment that the one that we're looking at was mostly 342 00:17:41,595 --> 00:17:44,998 built in Wisconsin. So we we did not, you know, 343 00:17:45,065 --> 00:17:47,501 invest. And we did not make that purchase. So you could 344 00:17:47,568 --> 00:17:50,237 see even where the ripple effects might be. But we 345 00:17:50,304 --> 00:17:54,775 did pull back on, on our kind of expectations for 346 00:17:55,375 --> 00:17:59,346 growth and profit and even hiring and being able to 347 00:17:59,413 --> 00:18:04,051 invest in our staff that, you know, coming into 2026 348 00:18:04,117 --> 00:18:06,887 with the change in tariffs. And it feels like, you know, 349 00:18:06,954 --> 00:18:10,390 we we are a little more optimistic kind of going, 350 00:18:10,457 --> 00:18:13,327 we're going back a whole year where we kind of came 351 00:18:13,393 --> 00:18:16,630 into 2025. We're kind of coming back into 2026 with 352 00:18:16,697 --> 00:18:19,433 that perspective. But I would say that it felt like 353 00:18:19,499 --> 00:18:21,902 a whole year of just kind of a holding pattern. 354 00:18:21,969 --> 00:18:24,872 >> How optimistic are you that you will get the 355 00:18:24,938 --> 00:18:27,941 tariffs that you paid refunded? 356 00:18:29,977 --> 00:18:32,513 >> I'm a pretty optimistic person, so I put our 357 00:18:32,579 --> 00:18:36,316 chances at better than 50%. But again, I'll believe it 358 00:18:36,383 --> 00:18:39,419 when the money is in our bank. Because again, this 359 00:18:39,486 --> 00:18:43,457 has been such a uncertain process from the beginning. 360 00:18:43,524 --> 00:18:46,126 We're hoping that the administration doesn't 361 00:18:46,193 --> 00:18:49,997 fight as the, you know, as this portal is open and 362 00:18:50,063 --> 00:18:53,267 money starts flowing, that they don't cut off those 363 00:18:53,333 --> 00:18:56,403 funds. But we don't, you know, we don't know. We're 364 00:18:56,470 --> 00:18:59,106 not we're not counting on it until we actually have 365 00:18:59,173 --> 00:19:01,175 the money in our bank, which might be months, 366 00:19:01,241 --> 00:19:04,745 months or a year from now. We don't know. 367 00:19:04,811 --> 00:19:07,814 TJ Semanchin, thanks very much. 368 00:19:08,815 --> 00:19:12,085 >> The burgeoning interest in sports related 369 00:19:12,152 --> 00:19:15,489 prediction markets over the last few years has led to 370 00:19:15,556 --> 00:19:19,092 platforms like Kalshi and Polymarket to trade in 371 00:19:19,159 --> 00:19:21,828 billions of dollars annually and wanting to 372 00:19:21,895 --> 00:19:24,998 cash in on Wisconsin customers. But State 373 00:19:25,065 --> 00:19:28,235 Attorney General Josh Carl this week filed a lawsuit 374 00:19:28,302 --> 00:19:31,338 against these and other similar platforms, saying 375 00:19:31,405 --> 00:19:34,074 they may use new terminology, but they are 376 00:19:34,141 --> 00:19:37,978 still violating Wisconsin gambling laws. 377 00:19:38,045 --> 00:19:41,048 >> The platforms where this is taking place are known 378 00:19:41,114 --> 00:19:45,219 as prediction markets. And what we allege is that the 379 00:19:45,285 --> 00:19:48,322 way these companies have framed this is that you can, 380 00:19:48,388 --> 00:19:51,091 on those prediction markets, purchase what they what 381 00:19:51,158 --> 00:19:53,894 they call an event contract. And what we allege here is 382 00:19:53,961 --> 00:19:57,531 that the the event contracts on sporting 383 00:19:57,598 --> 00:19:59,933 events are indistinguishable legally 384 00:20:00,000 --> 00:20:03,203 or practically for that matter, from sports betting 385 00:20:03,270 --> 00:20:07,441 and constitute sports betting under Wisconsin law. 386 00:20:07,508 --> 00:20:09,610 >> Anyone who has thought about buying or selling a 387 00:20:09,676 --> 00:20:12,779 house recently knows prices are up, interest rates 388 00:20:12,846 --> 00:20:15,315 remain higher, and more people seem to be locked 389 00:20:15,382 --> 00:20:18,852 out of owning a home. In our continuing series, 390 00:20:18,919 --> 00:20:21,421 looking at the biggest issues in the race for 391 00:20:21,488 --> 00:20:24,258 governor "Here& Now", senior political reporter 392 00:20:24,324 --> 00:20:26,493 Zac Schultz asked the candidates for governor 393 00:20:26,560 --> 00:20:29,296 about what the state should do to help fix the 394 00:20:29,363 --> 00:20:34,368 affordable housing crisis. >> A 2024 study by the 395 00:20:34,434 --> 00:20:36,937 Wisconsin Policy Forum showed. Over a five year 396 00:20:37,004 --> 00:20:41,275 stretch, home prices went up 53% while incomes rose 397 00:20:41,341 --> 00:20:44,912 by less than 20%. State government can't lower the 398 00:20:44,978 --> 00:20:48,348 price of materials or labor, but it can create an 399 00:20:48,415 --> 00:20:50,918 environment making it easier to build new homes. 400 00:20:50,984 --> 00:20:54,221 So we asked the candidates for governor how they plan 401 00:20:54,288 --> 00:20:57,424 to address the affordable housing crisis in Wisconsin. 402 00:20:57,491 --> 00:20:59,660 >> So the plan to increase affordable housing is to 403 00:20:59,726 --> 00:21:03,163 ensure that we put a stop on corporate monopolies 404 00:21:03,230 --> 00:21:05,232 that are buying up wholesale properties. This 405 00:21:05,299 --> 00:21:07,901 is going on in Milwaukee. These these monopolies are 406 00:21:07,968 --> 00:21:11,471 making it difficult for first time homeowners. 407 00:21:11,538 --> 00:21:14,007 These monopolies are making it easy or, excuse me, 408 00:21:14,074 --> 00:21:17,678 making it more difficult for people to be able to 409 00:21:17,744 --> 00:21:20,247 afford rent because if they own all the properties they 410 00:21:20,314 --> 00:21:23,016 can, they can price people out or just charge whatever 411 00:21:23,083 --> 00:21:24,985 they want to charge. And where else are people going 412 00:21:25,052 --> 00:21:28,055 to go? >> We need to look at it as 413 00:21:28,121 --> 00:21:31,291 a three legged stool. There is the legislation that we 414 00:21:31,358 --> 00:21:34,895 have to make sure that we have laws that allow us to 415 00:21:34,962 --> 00:21:40,200 build affordable housing. rules and making sure, like, 416 00:21:40,267 --> 00:21:42,536 you know, how you can build what type of permits that 417 00:21:42,603 --> 00:21:45,072 you need. And then there's funding. And right now, 418 00:21:45,138 --> 00:21:47,541 there is nobody who is looking at all three of 419 00:21:47,608 --> 00:21:50,244 those things to make sure that they're aligned. So as 420 00:21:50,310 --> 00:21:52,479 governor, I would assign somebody to make sure that 421 00:21:52,546 --> 00:21:56,416 they are looking at housing overall, having a statewide 422 00:21:56,483 --> 00:21:59,152 strategic plan to make sure that we have some of those 423 00:21:59,219 --> 00:22:01,722 starter homes that we certainly don't have in 424 00:22:01,788 --> 00:22:04,258 Wisconsin anymore. >> Housing is a is a vexing 425 00:22:04,324 --> 00:22:07,127 problem, but it is not insurmountable. And what 426 00:22:07,194 --> 00:22:10,797 we've seen at WEDC, the work that we did was to 427 00:22:10,864 --> 00:22:13,600 support innovative housing, housing, whether it's 428 00:22:13,667 --> 00:22:16,069 bringing a nursing home into housing, a nursing 429 00:22:16,136 --> 00:22:18,672 home that's closed in Gilman, we were able to 430 00:22:18,739 --> 00:22:22,276 support making that into apartments or schools that 431 00:22:22,342 --> 00:22:26,346 have closed due to lack of population, turning those 432 00:22:26,413 --> 00:22:29,583 into housing. But we are also seeing new housing 433 00:22:29,650 --> 00:22:32,419 being built. And so what I would want to do is make 434 00:22:32,486 --> 00:22:35,255 sure that local communities have the resources they 435 00:22:35,322 --> 00:22:37,191 need to provide the infrastructure, the water, 436 00:22:37,257 --> 00:22:40,761 the sewer for new housing, but then also making sure 437 00:22:40,827 --> 00:22:43,497 that we're supporting developers all around the 438 00:22:43,564 --> 00:22:46,800 state as they make the move to build housing. 439 00:22:46,867 --> 00:22:50,170 >> We have to have a multi-pronged approach, and 440 00:22:50,237 --> 00:22:53,373 we have to make it easier to build housing and look 441 00:22:53,440 --> 00:22:56,910 at different avenues and innovative ways to ensure 442 00:22:56,977 --> 00:23:00,147 that we have permanent affordability when it comes 443 00:23:00,214 --> 00:23:02,983 to housing. I'm interested in looking at community 444 00:23:03,050 --> 00:23:07,721 land trusts about how we can provide better zoning 445 00:23:08,555 --> 00:23:12,226 regulations and the ability to build ADUs and ensure 446 00:23:12,292 --> 00:23:16,330 that we have spaces for some folks who may no 447 00:23:16,396 --> 00:23:21,034 longer need to be in their homes. Where there can be 448 00:23:21,101 --> 00:23:23,971 starter homes for folks who are moving into communities 449 00:23:24,037 --> 00:23:26,573 and looking at diversifying our housing stock for folks 450 00:23:26,640 --> 00:23:30,043 who are moving or maybe downsizing. 451 00:23:30,110 --> 00:23:33,347 >> Wisconsin likely needs a top to bottom housing plan 452 00:23:33,413 --> 00:23:36,250 where we can look at all aspects of this, and there 453 00:23:36,316 --> 00:23:39,653 are tools at our disposal that we have through Wida 454 00:23:39,720 --> 00:23:42,723 that I'm not sure that we are using to the best of 455 00:23:42,789 --> 00:23:44,858 our abilities. And if we need new tools, we'll go 456 00:23:44,925 --> 00:23:48,095 out and get them. But this is kind of the core of 457 00:23:48,161 --> 00:23:50,931 affordability for Wisconsin families, is ensuring that 458 00:23:50,998 --> 00:23:54,268 they have a safe and secure place to put a roof over 459 00:23:54,334 --> 00:23:57,037 their head, that they can build equity, that they can 460 00:23:57,104 --> 00:23:59,139 build wealth for their family over time. So that's 461 00:23:59,206 --> 00:24:01,708 one of the issues that I look forward to working on 462 00:24:01,775 --> 00:24:03,410 as soon as I become governor. 463 00:24:03,477 --> 00:24:06,313 >> Well, first of all, we need to get control of 464 00:24:06,380 --> 00:24:08,549 property taxes. At a minimum, freeze them. I 465 00:24:08,615 --> 00:24:12,686 would get rid of the 400 year property tax increase, 466 00:24:12,753 --> 00:24:15,255 but I think we can do a lot of it via regulatory reform. 467 00:24:15,322 --> 00:24:19,393 And I refer to it as a red tape review. You look at 468 00:24:19,459 --> 00:24:21,862 the state of Virginia, they did something like this, 469 00:24:21,929 --> 00:24:24,898 and they reduced their regulations largely by 470 00:24:24,965 --> 00:24:29,102 by about 25%. They reduced the cost of building a new 471 00:24:29,169 --> 00:24:33,507 home by about $24,000. We've seen studies by the 472 00:24:33,574 --> 00:24:35,409 Wisconsin Institute for Law and Liberty, where they've 473 00:24:35,475 --> 00:24:38,679 said as much as $80,000 goes in to the cost of a 474 00:24:38,745 --> 00:24:41,248 new home. That has nothing to do with building 475 00:24:41,315 --> 00:24:44,017 materials. So I think we can get control of some of 476 00:24:44,084 --> 00:24:48,422 that by reducing duplication in regulations. 477 00:24:49,289 --> 00:24:50,958 >> It's important to understand that there isn't 478 00:24:51,024 --> 00:24:53,694 a one size solution that fits all of the problems 479 00:24:53,760 --> 00:24:56,730 that we're facing as a state. What works in 480 00:24:56,797 --> 00:24:59,700 Milwaukee may not work in Menasha, may not work in 481 00:24:59,766 --> 00:25:02,436 Marinette, may not work in Barron. And so we have to 482 00:25:02,503 --> 00:25:05,339 make sure that we're working with those local 483 00:25:05,405 --> 00:25:07,541 organizations, those local units of government, to 484 00:25:07,608 --> 00:25:10,978 figure out what right size solution works for them. 485 00:25:11,044 --> 00:25:13,313 Yes. Do we need more affordable housing? 486 00:25:13,380 --> 00:25:15,782 Absolutely we do. We need that for our seniors, for 487 00:25:15,849 --> 00:25:17,885 working families, for people with disabilities. 488 00:25:17,951 --> 00:25:20,821 But we also need attainable housing as well. And 489 00:25:20,888 --> 00:25:23,657 attainable housing is those who have the ability to 490 00:25:23,724 --> 00:25:27,461 afford those who may not qualify for affordable 491 00:25:27,528 --> 00:25:29,930 housing, but have the means to buy their own home. Yet 492 00:25:29,997 --> 00:25:33,000 we don't have the housing stock. 493 00:25:34,101 --> 00:25:36,970 doing more to incent development projects, 494 00:25:37,037 --> 00:25:40,374 helping local governments make zoning changes to 495 00:25:40,440 --> 00:25:43,510 allow for more housing to be built, and to allow more 496 00:25:43,577 --> 00:25:45,979 flexibility in how we use our dollars so that we can 497 00:25:46,046 --> 00:25:48,582 actually get more bang for our buck in terms of 498 00:25:48,649 --> 00:25:50,884 building new housing. But ultimately, this is really 499 00:25:50,951 --> 00:25:54,988 a supply and demand problem. We have too much need for 500 00:25:55,055 --> 00:25:57,157 housing and not enough houses being built, and 501 00:25:57,224 --> 00:26:01,094 it's been that way for since the Bush recession. 502 00:26:01,161 --> 00:26:03,163 We've underbuilt housing and now we're really 503 00:26:03,230 --> 00:26:05,933 reaping the consequences. So we just have to get more 504 00:26:05,999 --> 00:26:08,068 housing online quickly. >> Reporting from Madison. 505 00:26:08,135 --> 00:26:11,138 I'm Zac Schultz for "Here& Now". 506 00:26:11,572 --> 00:26:13,574 >> For more on this and other issues facing 507 00:26:13,640 --> 00:26:16,877 Wisconsin, visit our website at PBS 508 00:26:16,944 --> 00:26:19,413 wisconsin.org and then click on the news tab. 509 00:26:19,479 --> 00:26:21,682 That's our program for tonight. I'm Frederica 510 00:26:21,748 --> 00:26:24,651 Freyberg. Have a good weekend. 511 00:26:33,794 --> 00:26:38,465 >> Funding for "Here& Now" is provided by the Focus 512 00:26:47,307 --> 00:26:51,979 Fund for journalism and friends of PBS Wisconsin.