Milwaukee Biz Blog

Since the 1960s, Wisconsin has largely stood by while other states aggressively competed for their fair share of federal grants and aid. That bottom-quartile performance among the 50 states is why Wisconsin has long been known as a “tax donor” state, meaning its taxpayers contribute far more to the feds than they get in return.

Now an award of $810 million in federal stimulus money will extend high-speed rail from the Chicago-Milwaukee corridor to Madison and, in time, to the Twin Cities area in Minnesota. For once, Wisconsin got to the train station on time.

By working with other Midwest states, Wisconsin made a compelling case to get a share of the $8 billion in federal high-speed rail grants. About $55 billion in requests were submitted, many from larger states, yet the Wisconsin line was selected to receive more than 10 percent of the total pie. Only Florida and California (states with many times Wisconsin’s population) and another Midwest project stretching from Chicago to St. Louis received larger federal grants.

That’s a result of Midwest states hanging together instead of hanging separately. At the Midwest High Speed Rail Summit in Chicago last summer, eight states signed a memorandum of understanding that delivered a clear message of political unanimity. Wisconsin Gov. Jim Doyle was among five governors who pushed for the summit, which led to Washington receiving one regional set of priorities instead of potentially competing plans.

Opponents of high-speed rail will continue to question the federal investment and what it might cost states in matching dollars, but there are reasons to celebrate the Jan. 28 announcement vs. lying down on the tracks:

• Better connections for Wisconsin: Milwaukee will get two more lines to Chicago and Madison will be connected to Chicago via Milwaukee by 2013, if all goes as planned. Those are vital connections for commerce within the region and they help to establish better connections to the East and West Coasts – and beyond.
• Better connections for the region: The proposed line to the Twin Cities would tie together the major hubs of the “I-Q Corridor,” which extends from Chicago through Wisconsin and into Minnesota. A distance of only 400 miles separates two dynamos of the Midwest economy – Chicago and Minneapolis/St. Paul. That’s a shorter distance than what separates San Diego from the “Silicon Valley” in California. Within the region are some of the nation’s leading research universities, federal labs, financial centers, tech companies and talent pools. High-speed rail will help bring them closer together.
• More travel choices make sense: Rail will give people another option while easing congestion on highways and in airports. As the economy improves, air travel will see more delays, the Brookings Institution noted in a recent report. Lengthy airline delays (two hours or more) are twice as common now as in 1990 and may get worse as the economy recovers. By the way, half of all flights in the United States and 30 percent of the passenger traffic take place on trips of 500 miles or less – well within the range of the Wisconsin lines.
• High-speed rail use is growing: Passenger rail ridership has been trending up nationally. Amtrak carried nearly 27.2  million passengers in fiscal 2009, marking the second highest ridership total since the National Railroad Passenger Corp. began operations in 1971. The 27.2 million passengers for the 12 months ending Sept. 30, 2009, fell short of the all-time record of 28.7 million for fiscal 2008, but exceeded fiscal 2007 by 5.1 percent.
• It will create jobs: State officials have estimated the project would lead to 13,000 jobs in construction and manufacturing in Wisconsin. Some of those are train manufacturing jobs through an agreement between Wisconsin and Patentes Talgo, the Spanish train maker. That 13,000 estimate may not be far off, according to the American Association of Railroads. It calculates that each $1 billion in rail investment creates 20,000 jobs.

The costs of high-speed rail are high - but so are highways and air travel, which are also heavily subsidized.  Wisconsin can gain a competitive advantage through high-speed rail while strengthening its role as an economic player in the Upper Midwest. With help from its neighbors, Wisconsin finally won a major federal lobbying campaign. Let’s keep it on track.

Tom Still is president of the Wisconsin Technology Council.

On behalf of the nearly 7,400 employees we represent, we wish to express the important role regional transportation plays in our economic future. We are committed to ensuring dedicated funding for a balanced regional transit system and encouraging our business colleagues to do the same.

We represent two of southeastern Wisconsin’s largest institutions and provide critical services to thousands of local residents on a daily basis. We understand that a fully-funded transit infrastructure impacts our clients, customers, business, and the economic climate in southeastern Wisconsin. We have hundreds of employees that use buses to get to work every day, however that number continues to decrease as the bus system disintegrates. Continued cuts to the system impair our employees’ ability to get to work and our clients’ and customers’ ability to get critical services and products.

We hope it is clear that we understand firsthand how transit affects our larger community as well as our specific organizations, and we are committed to working with the Legislature to see that a politically and economically sound funding source for transit is implemented in our region during this session.

We are issuing a call to action for our representatives in Madison. We need a truly regional, multi-county, multi-modal regional transit authority including Kenosha, Racine and Milwaukee Counties to be immediately focused on improving bus transit throughout the region and advancing the KRM commuter rail project. We must have a dedicated funding mechanism for transit, which must provide property tax relief, restore routes and rescind fare increases to allow for efficient and effective bus operations throughout the region to allow for economic development and regional growth.

We are willing to call, write or visit with our legislators to communicate the urgency of this issue to our region and our vision for regional transit, we urge residents of Kenosha to do the same.

In summary, our feeling regarding adequately funded regional transportation is simple- get it done. It is our goal, and we hope yours, to work actively to see that it does.

Robert Mariano is chairman and chief executive officer of Roundy’s Supermarkets Inc. in Milwaukee. This blog was co-written by Dick Hansen, president and CEO of Johnson Financial Group Inc., Racine.

Southeastern Wisconsin is in the midst of the greatest and most expensive upgrades to its transportation infrastructure since the Interstate Highway System was constructed by the Eisenhower administration in the 1950s.

Projects include:

• The $810 million completion of the Marquette Interchange reconstruction was recently completed.
• The current $1.9 billion construction of the I-94 expansion between Milwaukee and the Illinois state line is set to be completed in 2016.
• The temporary $15.3 million reconstruction of the Zoo Interchange has begun.
• The Obama administration recently announced $810 million in federal funding for high-speed rail to connect Milwaukee to Madison.

The burning question now is how will all of these projects be paid for at a time when local, state and federal governments are broke? The issue of funding dominated the discussion of a transit forum co-presented by WisPolitics and BizTimes Milwaukee on Thursday.

 

The Zoo Interchange, built in 1963, is the busiest interchange in Wisconsin, providing connections between I-94, I-894 and U.S. 45. The Wisconsin Department of Transportation (WisDOT) is repairing three of the key bridges of the interchange.

“Milwaukee has an aging system. It did the job it intended to do from the start,” Tom Carlsen, former WisDOT Secretary, said at the forum. “This was done according to the age and the use of the structure of when it was designed.”

“It has been a perfect storm of design deficiencies in the last 50 to 60 years,” added Kenneth Yunker, executive director Southeastern Wisconsin Regional Planning Commission, referring to the Zoo Interchange.

According to Ryan Luck, project construction chief for emergency bridge replacement for WisDOT, the temporary repair construction of the Zoo Interchange is contracted for $15.3 million. Construction has occurred primarily during the evening hours. However, ramps have been shut down on weekends.

According to Luck, there are two more closures projected for May and demolition on June 14.
WisDOT is evaluating a long-term solution for the Zoo Interchange. Some have speculated the long-term plan could cost $2.3 billion, which would make it the most expensive project in state history.

“The Zoo Interchange is a bottleneck, and that interchange is the heart of Milwaukee’s freeway system, and that heart beats for the Wisconsin economy and all commercial traffic comes together there with the traffic from Fox Valley and Appleton,” Carlsen said.

“The Medical College of Wisconsin’s No. 1 priority is transportation. We were disappointed with what happened with the budget last year. It is critical to get patients, faculty and students on our campus, especially when we serve over 1 million patients on our campus each year,” said Kathryn Kuhn, associate vice president of government affairs at the Medical College of Wisconsin. “We don’t want to wait until 2016, we need it now and need it done right.”

Funding for the Zoo Interchange reconstruction has fueled a heated debate with local business leaders and politicians who disagree on how to sustain transportation funding for the state of Wisconsin.
“The state of transportation in Wisconsin is in flux, it is in trouble, but is positioned for opportunity,” said Craig Thompson executive director of the Transportation Development Association of Wisconsin. “We need to diversify our funding for transportation.”

On Jan. 28, the Obama administration announced $822 million in federal stimulus funds for high-speed rail projects in Wisconsin, including $810 million for a highs-speed rail line to connect Milwaukee to Madison. The Milwaukee to Madison rail service is expected to be operational by 2013, according to the White House.

“All (projects) need to get done. We can’t just pick and choose and say transit is necessary but then pick and choose. We can’t set a priority. All needs to get done, and that’s the challenge ahead,” Yunker added.

One heavily debated alternative source of funding today was a gas sales tax increase.

“I’d like to get off the gas tax,” said Carlsen in his opening remarks.

Tollways also were discussed as an alternative to tax increases. According to Gretchen Schuldt co-chair of Citizens Allied for Sane Highways, “Tolls are inevitable.” 

“When the taxpayer invests money, they want it used wisely, and we need the confidence of the public to invest in this infrastructure,” Luck said.

“We need to find a smarter way for funding in both southeastern Wisconsin and across the state. We need more money and transportation is a return on investment for our economy,” Thompson said.

“Transportation funding is static. If we look at it as static, then we can’t afford to do one project over another.”

“We need to synchronize efforts and get all on the same page with cost factors to eliminate confusion,” said Dan Devine mayor of West Allis.

“To continue to have the CEOs of S.C. Johnson and Son Inc., Roundy’s Supermarkets Inc., and AT&T Wisconsin, some of our last major employers in the state of Wisconsin and economy-based industries behind rail says a lot,” Yunker said.

 

Liz Ramus is a reporter for BizTimes Milwaukee.

On behalf of the Greater Milwaukee Committee, I applaud Gov. Jim Doyle on several major transit announcements last week and his efforts to address southeastern Wisconsin’s transit shortcomings.

In his recent State of the State Address, Gov. Doyle demonstrated key leadership by continuing to work for transit legislation that would provide dedicated funding and property tax relief to save our local transit systems and bring about the KRM (Kenosha-Racine-Milwaukee) commuter rail, efforts that my members overwhelmingly support.

I would also like to congratulate the governor for securing more than $800 million in federal dollars to build a high-speed rail line between Milwaukee and Madison.

This investment in transit further illustrates the need for a fully functional infrastructure, starting with an adequately funded bus system, to strengthen and revitalize our economy.

I am hopeful that Gov. Doyle’s leadership on this issue will be reflected by legislative action in the current session.

Transit legislation currently in the works in Madison reflects the collective appeal from the local business, labor and civic communities who understand that dedicated funding for transit is critical to the future of our region.

As echoed by my colleagues at a recent press conference, an adequately funded transit system will preserve and expand job opportunities in southeastern Wisconsin, promote job creation and allow us to be competitive in attracting and retaining top talent.

On behalf of the GMC, I commend the governor for his support of transit solutions for our region and urge the State Legislature to follow his lead. Our region cannot afford to be without the jobs, economic development and property tax relief that will result from the passage of the current transit legislation.

It is now in the hands of our State Legislature to continue upon the momentum created by Gov. Doyle, the business community, labor coalitions and countless southeastern Wisconsin constituents.

 

Julia Taylor is president of the Greater Milwaukee Committee (GMC), a nonprofit organization of southeastern Wisconsin’s business, labor, academic, philanthropic, nonprofit and civic leaders.

It is time to act in bold ways to improve Wisconsin’s business climate and create jobs! The quality of life we enjoy in Wisconsin hinges on assuring a strong economy with a growing job base.

The global economic recession has hit Wisconsin hard.  More than 120,000 jobs have been lost in our state during this recession, and beyond this many people are underemployed.  Most experts are now predicting it may take years to restore the jobs lost during this deep, lengthy recession.  As the national economy improves, Wisconsin will have to compete with other states to be sure jobs are retained, and new jobs created in our state.   

Unfortunately, Wisconsin’s business climate is rated low on most national surveys. We must act to transform the Wisconsin business environment to create jobs! 

States ranked with a more robust business climate have:

• Tax systems that are low, fair, and simple to administer.
  Business-friendly regulatory systems that issue needed permits quickly and efficiently.
• Fair and predictable civil justice systems. 
• Aggressive programs which bring together the resources of government and education to assist existing businesses with expansion, as well as recruiting new businesses.

All Wisconsin citizens have a stake in improving the Wisconsin business climate. A strong, free-market economy provides the tax base necessary to support government’s role in educating, building infrastructure, protecting the environment, and caring for the needy. 

 

The top priority for government officials at all levels must be to implement policies that foster private business growth and improve Wisconsin’s overall business climate to create jobs. Private business is the engine of prosperity, not government. We must position Wisconsin to lead the national recovery or risk further stagnation and decline. 

Three game-changing priorities are the key to this transformation. Adopting these priorities and taking actions to implement them will demonstrate that Wisconsin is serious about becoming the most competitive state in the nation. 

Here’s the WMC’s Wisconsin Jobs 2010 Agenda

Living within our means
Controlling government spending means more money in consumers’ pockets, and enables business to create more jobs for our families. We need to limit government spending and provide tax relief for individuals and businesses. That starts by:

• Putting limits on government spending increases and setting aside money for a rainy day fund. 
• Balancing the state budget under generally accepted accounting principles.
• Sending a message to the world that Wisconsin is open for business by repealing recently enacted tax increases and providing incentives for job creation.  

 

Unleashing private investment
When employers are burdened with unnecessary regulation, it costs us jobs.  Fair regulations keep us safe; unfair regulations and regulatory delays lead to slower growth and higher unemployment. That starts by:

• Ensuring state regulations are in line with federal regulations and those in competitive states.
• Establishing the Department of Commerce as the central business permitting agency, charged with quickly and aggressively securing all needed approvals for economic development.

 

Ensuring justice for all
Everyone deserves a day in court. A fair legal system provides a stable climate for job creation.  
But frivolous lawsuits and other lawsuit abuse hampers job creation. That starts by:

• Enacting comprehensive product liability and other legal reforms. 
• Establishing strict limits on punitive damage awards.

 

Jim Haney is the president of Wisconsin Manufacturers & Commerce.

Last week, I wrote a blog about how Wisconsin’s economy has begun to rebound from the Great Recession.

I noted all of the economic indicators showing as much, and I documented how dozens of Wisconsin companies in recent months have been adding jobs, dating back to Mercury Marine’s decision to expand here, rather than move to Oklahoma.

What I did not share was the fact that Michael Knetter, Ph.D., a former presidential economist and the dean of the School of Business at the University of Wisconsin in Madison, agreed with my prognosis that a rebound has begun.

I also did not share that a panel of CEOs surveyed by Julia Taylor at the Greater Milwaukee Committee (GMC) also agreed that 2010 will be a year of recovery, to one degree or another.

We’ll share Knetter’s predictions and the GMC forecasts, along with outlooks from the Metropolitan Milwaukee Association of Commerce and many others at the Northern Trust Economic Trends Breakfast on Friday, Jan. 22, and in our special report that will accompany the event.

In my blog last week, I intentionally left out any of the political implications or ramifications of an economic recovery in 2010. That was by design. I wanted to stick to the facts at hand, and not pollute the analysis with any political interjections.

Nice try. Someone at Wisconsin gubernatorial candidate Mark Neumann’s campaign posted a link to my blog on Facebook, with the introductory phrase as follows: "From BizTimes Media: ‘Wisconsin’s economic recovery has begun.’ Have you seen recovery in your business? Are you more optimistic for 2010?”

Given that serving of red meat, Neumann’s Facebook followers jumped in with a barrage of verbal assaults (verbatim):

• “Bullsh_t many jobs lost will not come back ever. spending because of christmas helped like tax returns help when they hit the mail boxes. what new companies opened? what new jobs are there replacing old ones? if so get my home back!”
• “I was downsized 11 months ago. Have been applying at different places since then and still no luck.”
• “You cannot take revenue from the private sector and give it to the gov for redistribution and expect positive results. Moreover, Americans and our companies are addicted to cheap credit.”
• “You would have a hard time convincing me and my customers that the recession is over and recovery is coming. Government pays lip service to creating mfg. jobs when it continuously throws up road blocks with more regulations, higher taxes, etc.”
• “None of the stimulus money goes into small businesses....just the leftist groups like ACORN and NAMBLA!”
• “(Wisconsin Gov. Jim) Doyle will be gone soon. Hopefully we will get a governor who cares about our state, right Mark?”
• “I saw the headline of this article when it came over my email! I just laughed - do these people think we are stupid? And just because they say it - we believe it?? It is truly pathetic!”

Then some enlightened genius calling himself Chuck Kramp called me a “dum ass” (his spelling) and another name that won’t be repeated here.

 

Nice folks.

That’s OK. I have developed very thick skin over the years. And of course, I realize that followers of a candidate in one party are not going to welcome the message that an economic recovery has begun under the watch of a governor and a president in the other party (which is not to say that the governor and the president in the other party should be given credit for that recovery).

Still, the abrasive responses of Neumann’s followers reflect the toxic political dialogue (on all sides) this country is engaged in right now.

Anyway, I’m sticking to my prognosis that an economic recovery has begun, regardless of the political consequences. And if those Neumann followers think they know more than Dr. Knetter and the GMC’s CEOs of Milwaukee’s largest corporations, well, there isn’t much I can say to convince them.

Maybe they would find it more credible to hear the same message from a different messenger … How about Jim Cramer, host of CNBC’s “Mad Money,” who declared last week, “This darned economy is not only about to boom. I think it’s booming right now.”

Cramer backed up his assessment with positive news reported by Ford Motor Company and Boeing. The stocks of both companies recently posted new 52-week highs (as did the local BizTimes Stock Index, by the way). Ford reported a 42-percent increase in December vehicle sales, and Cramer said consumer spending is on the rise.

He said the economy will recover soon and “shock to the upside.”

Thanks for guarding my back, Cramer!

 

Steve Jagler is executive editor of BizTimes Milwaukee.

The controversy over Gov. Jim Doyle’s proposed Clean Energy Jobs Act illustrates a deep philosophical divide that is emerging within Wisconsin’s business community.

In some ways, the emerging chasm pits the politics of tomorrow against the politics of yesterday.
On one side of the divide – in favor of the green jobs plan - stand the coalition for Clean, Responsible Energy for Wisconsin’s Economy (CREWE) and the Wisconsin Business Council.

The CREWE includes venerable companies such as CleanPower, Alliant Energy, EcoEnergy, Johnson Controls Inc., Xcel Energy, C5•6 Technologies, Axley Brynelson, Madison Gas and Electric, Orion Energy Systems, Forest County Potawatomi Community, Wisconsin Energy Corp., Poblocki Sign Company, Emerging Energies of Wisconsin, MillerCoors, American Transmission Co., WPPI Energy, DTE Energy Services and Kranz, Inc.

"CREWE strongly supports (Doyle’s) Global Warming Task Force recommendations and will support legislation that preserves the careful policy balance reached by the task force. We are currently reviewing the draft bill,” the CREWE companies said in a joint statement. “We appreciate the strong leadership of the sponsors and thank them for hard work in preparing the draft.  We look forward to working with them in the coming weeks and months to pass and implement legislation that will address climate change, increase energy independence, and create new, clean energy jobs for Wisconsin."

The plan also has the support of the Wisconsin Business Council, which includes leaders from several of the state’s key businesses, including American Transmission Co., Anthem Blue Cross Blue Shield, AT&T Wisconsin, Commerce State Bank, Dean Health System, Midwest Natural Gas, MillerCoors, Mortenson Construction, Orion Energy Systems and Park Bank (in Madison).

“Achieving the vision set forth in the Clean Energy Jobs Act will require diligence and innovative thinking,” said Scott VanderSanden, chairman of the Wisconsin Business Council and president of AT&T Wisconsin. “But we are confident that Wisconsin leaders in manufacturing, energy production, trade and service industries are up to this challenge. We look forward to the public discussion and the give and take that will be part of the legislative effort to fine-tune this proposal. The Clean Energy Jobs Act sets the stage for the creation of thousands of well-paying, family-sustaining ‘green jobs’ over the next decade, and if implemented in a way that recognizes the needs of our key industries, it will enhance Wisconsin’s business climate.”

The nonpartisan Wisconsin Business Council, which was formed last June, includes both conservative- and liberal-leaning people who believe that “better jobs and a stronger economy are critical to Wisconsin’s quality of life.”

Phil Prange, president and chief executive officer of the Wisconsin Business Council, held several key positions in the former Wisconsin Republican Gov. Tommy Thompson’s administration.

“The Wisconsin Business Council was established to provide a forum for business leaders to come together in the search for mutually beneficial solutions, and we’re cautiously optimistic about the potential of the Clean Energy Jobs Act,” Prange said. “A flourishing private sector is critical to our quality of life and it is clear that environmental innovation also makes sense from a competitive standpoint.”

On the other side of the divide stands the Wisconsin Manufacturers & Commerce (WMC), which is joined by 22 other business organizations, including the Metropolitan Milwaukee Association of Commerce (MMAC), in opposition to Doyle’s proposal.

The WMC cited a study by the conservative Wisconsin Policy Research Institute that contends the proposed green legislation would kill 43,093 private-sector jobs in Wisconsin.

“Many families in this state are hurting,” said Scott Manley, director of environmental policy for the WMC, which has long supported conservative political candidates and causes. “We cannot afford to lose any more jobs, but that is exactly what this legislation will do.” Wisconsin has lost 160,000 high-wage manufacturing jobs since 2000, and the proposed legislation will continue the high-wage job loss. We need to reverse the current trend, and find a way to bring family-supporting manufacturing jobs back to our state. But hitting Wisconsin’s economy with the expensive new energy regulations proposed today will significantly increase our cost of electricity, and kill jobs while doing nothing to address global warming. Lawmakers must understand that increasing the cost of energy for Wisconsin families and employers is a recipe for further job loss.”

Adding even more intrigue to this philosophical divide among Wisconsin’s business community is the fact that many members of the CREWE and the Wisconsin Business Council in favor of the green jobs plan also are dues-paying members of the WMC, the MMAC and the other organizations that are against the plan.

“It’s really created massive fault lines within the business community between the deniers (of global warming) and those that think something must be done,” said Thad Nation of the CREWE. “It’s probably going to get messier before it gets better.”

As for Doyle, he said an economic assessment of the Clean Energy Jobs Act (State Senate Bill 450 and State Assembly Bill 649) found that the package would directly create at least 15,000 green jobs in Wisconsin by 2025. More than 1,800 jobs would be created in the first year alone, he said. Doyle’s assessment also found that between 800 and 1,800 construction jobs would be created each year from 2011-2025, and more than 2,000 manufacturing jobs would be created once the laws are fully implemented.

“Addressing climate change is not just an environmental issue, it’s about creating green jobs,” Doyle said. “The Clean Energy Jobs Act offers new standards to help accelerate Wisconsin’s green economy. I am calling on the Legislature to update renewable portfolio standards to generate 25 percent of our fuel from renewable sources by 2025 and set a realistic goal of a 2 percent annual reduction in energy consumption by 2015.”

What will really happen if the bill is approved? For now, I guess it depends upon whom you believe.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

A look back at the cover stories of BizTimes Milwaukee magazine over the past year reveals the most important issues of the day, including the impact of the Great Recession, the federal stimulus, bankruptcy survival, health care reform, the H1N1 virus and the emergence of social media.
What will be the most important stories of 2010? Here’s an educated guess about the top one: Wisconsin’s economic recovery.

The recovery has begun and will pick up steam in 2010. It won’t come easily, and it won’t come quickly, but we're seeing some very promising trends: In recent polls, 86 percent of BizTimes.com readers say their company will either add jobs or at least maintain the status quo in 2010, and 76 percent say they are optimistic about how their company will do in 2010.

The number of first-time unemployment claims in the state is falling. The number of company job layoff notices filed with the Wisconsin Department of Workforce Development is falling. The BizTimes Stock Index of local stocks recently soared to a 52-week high.

Expect the fourth quarter national Gross Domestic Product (GDP) to show continued improvement.

Looking back at early 2009, it was all we could do to keep up with the plant closures and the mass layoffs cascading throughout the state. The recession closed the General Motors Corp. plant in Janesville and the Chrysler plant in Kenosha in its wake.

Lately, however, Wisconsin has been winning more than it has been losing on the jobs front. The state has been stringing together these victories like pearls on a necklace in recent months:

• Mercury Marine decided to keep 850 jobs and move several hundred more to Fond du Lac.
• Republic Airways Holdings Inc., the new parent company of Midwest Airlines, will save 800 jobs in Oak Creek and move 800 new jobs to the region in 2010.
• AirTran Airways will expand its Milwaukee hub by adding at least 50 more pilots and 50 more flight attendants.
• At least eight biotech companies are moving to Wisconsin from Minnesota and other states (Biotechnology is the fastest-growing segment of Wisconsin’s economy, where it is an $8.7 billion industry with 400 companies and 34,000 employees).
• Uline Inc. of Waukegan, Ill., will move across the Wisconsin border to its new headquarters in Pleasant Prairie in 2010, bringing 1,000 jobs.
• Exacto Inc. has moved its headquarters from Illinois to Walworth County.
• North Chicago, Ill.-based EMCO Chemical Distributors Inc. plans to move to Wisconsin, bringing up to 125 new jobs to Pleasant Prairie.
• Bucyrus International Inc. will bring 400 to 500 new jobs to metro Milwaukee after it acquires Terex Corp.
• Telkonet Inc. is moving its headquarters and 50 jobs from Maryland  to the Milwaukee County Research Park in Wauwatosa.
• Helios USA, a startup solar panel manufacturer. plans to open a new plant in Milwaukee in 2010.
• Dickten Masch Plastics LLC in Nashotah will receive $293,000 in Economic Development Tax Credits from the Wisconsin Department of Commerce for an expansion project that will create 75 jobs and retain 160 existing jobs in Waukesha County.

 

The tide is turning for the better in the Badger State.

To be sure, we have our problems, including a $2.71 billion state budget deficit and a dysfunctional Milwaukee Public Schools system that reflects our society’s most disheartening shortcomings. The commercial real estate market for new development is flat, and some of our banks are not exactly on firm financial ground.

And because employment is a lagging indicator, it may take a few more months before we see a complete reversal out the Great Recession.

But the recession is over, and the future is looking brighter. Look for employment gains in the health care, technology, government and green sectors. And if Milwaukee can marshal its act together, with the help of cheerleaders such as Badger Meter Inc. chief executive officer Rich Meeusen leading the way, it can begin to transform itself as a fresh water technology hub that will add further fuel to its economic fire.

For a complete forecast about the year ahead in business, we invite you to attend the Northern Trust Economic Trends Breakfast on Friday, Jan. 22, at the Italian Community Center in Milwaukee. Stellar panelists will provide their insights. Register to attend the event at www.biztimes.com/trends.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

Let the record reflect that Milwaukee County Executive Scott Walker is singing the praises of the jobs being created in Milwaukee County as a result of President Barack Obama’s federal stimulus package.

BizTimes.com recently ran a Milwaukee Biz Blog by Scott Walker touting all of the new projects approved in the 2010 County Budget for Capital Improvements. Walker is calling it the “Milwaukee County Works” program. In reality, all of this new spending is due to favorable interest rates made possible through the American Recovery and Reinvestment Act, better known as the federal stimulus program.

To take advantage of these lower interest rates, Scott Walker proposed to budget for three years worth of capital spending all in the 2010 budget. The County Board agreed with this approach to stimulate our local economy, and these projects will be completed over the next three years. For example, the projects in my district include new playground equipment at McCarty Park along with athletic fields and tennis court restorations at Zablocki Park. We are also using stimulus funds for some larger projects, including purchasing new buses, rebuilding area roadways, upgrading General Mitchell International Airport, and completing energy-efficient upgrades in County-owned buildings.

That’s why it’s preposterous for the County Executive to re-brand the stimulus project as his own “Milwaukee County Works.” In fact, Walker even went on write, “This sounds like a financially sound way to truly ‘stimulate’ the economy.”

Well, I agree, but this comes despite all of County Executive Walker’s previous statements regarding stimulus:

• “Federal money nearly always comes with strings attached.  ‘Free money’ sounds nice, but what happens when state and local governments cannot afford the match?  A real economic stimulus would put money in the hands of consumers – and not the government.” - Scott Walker, BizTimes BizBlog, January 9, 2009
• “This hardly sounds like free money to me.” - Scott Walker, Milwaukee Journal Sentinel, January 9, 2009
• “I’m not asking for any new project or things to be done here.” - Scott Walker, Milwaukee Journal Sentinel, January 6, 2009

No matter what he might call it, the record should reflect that these opportunities were made available by the federal stimulus plan. The County Board had to fight long and hard to bypass the County Executive and ensure we could apply for as many stimulus projects as possible. The County Executive opposed these efforts at every turn, and even directed his staff to not directly participate as Task Force members.

Now that real jobs are indeed being created, the County Executive is trying to mislead the public into thinking that he developed this federal initiative. The record should reflect that the County Board was the driving force behind the use of stimulus tools within Milwaukee County, and the County Executive is piggy-backing off of that success as he runs for Governor.

Milwaukee County Supervisor John Weishan, Jr. represents the 16th District, which includes parts of West Allis, Milwaukee and Greenfield.

Jobs are the top concern for people all across our region. The accelerated building program included in the 2010 county budget does a great deal to help jumpstart the local economy with a $208.4 million investment in capital projects.

Our Milwaukee County Works program includes support for 100 projects that will provide some 1,000 jobs.  Many of these jobs are in areas hit hardest by the global recession - like construction, architecture and engineering. 

Instead of just creating new projects, we reviewed our five-year plan and included items set for 2010, 2011 and 2012 in the 2010 budget. This allows us to take advantage of the Build America Bonds that provide lower rates than traditional bonds. Overall, we expect to save up to $3 million in interest payments.

And our plan calls for maintaining our caps on debt. In 2012, the outstanding debt for Milwaukee County will be 28% lower than in 2002.

Remove the accelerated building plan from the budget I proposed and you will find that overall county spending went down by .6 percent. To protect residents and jobs, we controlled spending to hold the line on the property tax levy.

Finally, there was a great deal of talk about "stimulus" money earlier this year. In January, I set out clear criteria for taking any of these funds:

• No local match requirement.
• No ongoing concern.
• No using the funds for operating budgets.

Our Milwaukee County Works program meets that criteria. 

 

The members of the Milwaukee County Board approved the accelerated building plan as part of the 2010 capital budget. Once completed, our Milwaukee County Works plan will provide three-times as many jobs as normal in 2010, lower our interest payments on the bonds by $3 million and reduce our outstanding debt by 28 percent by 2012.  This sounds like a financially sound way to truly "stimulate" the economy.

Milwaukee County Executive Scott Walker is a candidate to be governor of Wisconsin.