Constitutional amendment could impact Wisconsin minority supplier program

Democratic officials in Milwaukee spoke out against a proposed amendment to the state constitution that they said targets diversity, equity and inclusion efforts across Wisconsin. Leaders said one program that could be potentially affected if the resolution passes is the state’s Supplier Diversity Program, which directs millions of dollars to minority contractors.

In its first session of the year, Republicans in the Wisconsin State Assembly passed Assembly Joint Resolution 102, part of a Republican-led effort to curb diversity, equity and inclusion efforts in the state with support of Assembly Speaker Robin Vos.

The resolution would bar state government agencies “from discriminating against, or granting preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in public employment, public education, public contracting or public administration,” according to the Legislative Reference Bureau.

Dan Lennington, vice president and deputy counsel of the Wisconsin Institute for Law & Liberty, said in a letter that the resolution would bring an end to discriminatory programs in Wisconsin. He pointed to the Wisconsin Supplier Diversity Program — which certifies minority-owned, disabled veteran-owned and woman-owned suppliers for access to state contract — as an example.

Created in 1983, the program set a 5% participation goal for state agencies and University of Wisconsin campuses to buy goods and services with certified minority-owned businesses.

In 2023, the state spent more than $3.3 billion on contractors and paid more than $200 million to diverse suppliers under the program, according to a Department of Administration report.

At a news conference Friday, state Sen. Dora Drake said that the joint resolution would take away the state’s ability to prevent discrimination based on historical data. If the resolution passes, the state will no longer be able to fund its largest minority contracting program, she added.
Democrats in the Legislature and in Milwaukee leaders, including Milwaukee Mayor Cavalier Johnson and Milwaukee County Executive David Crowley, echoed Drake’s concerns and urged their colleagues to vote “no” in the Senate session.

Ugo Nwagbaraocha, president of the board of the National Association of Minority Contractors-Wisconsin Chapter, said eliminating the program would disrupt the overall Wisconsin economy.

“We know that many of our communities have been historically excluded locally and nationally from participating in opportunities to participate in major construction projects,” Nwagbaraocha said. “These programs are vital in allowing us to do our work with access to major construction projects. This proposal will be a disruption to the overall economy in Wisconsin because small businesses contribute to workforce development.”

The resolution will next go to the State Senate. If it passes, it will go on the ballot of the general election Nov. 3.