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WEDC targets industry clusters for investment

The Wisconsin Economic Development Corp. (WEDC) recently made a $750,000 investment in the Water Research and Business Accelerator Center in Milwaukee. This investment in the water technology research and business incubator is a prime example of WEDC’s new target industry investment strategy.

WEDC’s approach is innovative and a more effective approach to target industry advancement than traditional approaches. 

Traditional cluster strategies use statistical data to identify concentrations of like-coded companies, or identify the next “hot” industry sector and declare these as target industries, regardless of actual industry support or realistic opportunity.  WEDC’s targeted industry approach delivers customized solutions to accelerate business consortia that exhibits strong industry leadership, has a defined plan for growth and has realistic potential for strong and long-term economic impact. 

This new targeted-industry investment strategy by WEDC has a number of advantages.  First, it is not government picking winners or losers but a market-led strategy that accelerates already promising opportunities. Second, it does not apply a one-size fits all solution but provides an approach tailored to the consortia needs. Third, it maximizes the impact of taxpayer dollars by co-investing in solutions that are likely to yield the best results.  For example, WEDC also supports the trucking consortia’s efforts to increase the number of truck drivers and diesel mechanics by coordinating WEDC, Department of Workforce Development, and technical college solutions.  

Wisconsin is fortunate to have a number of existing and emerging consortia opportunities to drive regional and statewide job growth. Many of these are part of our strong manufacturing base – an industry characterized by export, strong job multipliers, and high R & D investment. Industry sectors such as water technology, defense vehicle manufacturing, energy storage and biotechnology-related equipment and processes also hold promise for growth. These sectors provide economic diversity and support quality jobs throughout the state.

Here’s why Wisconsin’s water technology industry is a target industry worthy of support. It has strong industry leadership through the Milwaukee Water Council; a concentration of key globally competitive businesses in Wisconsin; and the strong support of local and state resources.
WEDC’s investment to underwrite the rent of start-up water research and technology companies at the Accelerator Center is a unique solution designed to move the entrepreneur from the start-up and research and development stages to the product development and marketing stages. Our customized industry support doesn’t stop there. WEDC will expand water technology growth through exports by hosting a trade mission to India, April 22-May 1, 2012.

WEDC’s identification and investment in the water technology cluster is an example of WEDC’s new, innovative, market-pull approach to target industry growth in the state.  This approach will accelerate the growth of more industry-led consortia in Wisconsin. 


Paul Jadin is the CEO of the Wisconsin Economic Development Corp. (WEDC).

Executives open pockets to help Walker fight recall

Jaws dropped when the supporters of the recall against Gov. Scott Walker recently submitted more than 1 million signatures of Wisconsin residents.

Then jaws dropped again when Walker’s campaign announced a few days later it had raised more than $4.5 million in the most recent reporting period from a total of 21,443 contributions.

State law allows candidates who are targets of recalls to raise unlimited cash while the signatures are being gathered. Walker seized the moment, making a series of out-of-state fundraising appearances during the 60-day window.

“Gov. Walker's message of moving Wisconsin forward continues to resonate with voters,” said Ciara Matthews, communications director of the Walker campaign. “It is this message, and the success of the governor's reforms, that have inspired people to contribute to his campaign in overwhelming numbers. These donations will allow us to fight back against this baseless recall and ensure Gov. Walker can continue to lay the foundation for a more successful Wisconsin and keep government working on the side of taxpayers.”

The Walker campaign finished the quarter with a combined total of more than $2.6 million cash on hand in the recall and general campaign funds. The campaign has raised more than $12 million since Jan. 1, 2011. According to the campaign, 16,406 of those contributions were $50 or less, representing 76.5 percent of the overall number of contributions.

A quick review of the Walker donations reported to the Government Accountability Board shows strong support from prominent Wisconsin business executives (name, company and city of residence): John Bergstrom of Bergstrom Automotive, Neenah, $2,500; Frederick Boelter of The Boelter Companies, Hartland, $2,500; John Burke of Burke Properties, Fox Point, $10,000; Jere Fabick of Fabco Equipment, Oconomowoc, $50,000; Gerald Frye of The Benefit Services Group Inc., Elm Grove, $5,000; Robert Greenheck of Greenheck Fan Corp., Schofield, $7,500; William Haack of Zywave, Elm Grove, $8,000; Thomas Halquist of Halquist Stone Company, Menomonee Falls, $2,500; Harvey Hammond of HNTB Corp., Mequon, $5,000; Emery Harlan of Gonzalez, Saggio & Harland LLP, $5.000; Robert Hillis of Direct Supply Inc., Milwaukee, $10,000; Chris Kappl of Wildwood Reserve LLC, Menomonee Falls; Ted Kellner of Fiduciary Management, Mequon, $8,564.84; Dennis Klein, KBS Construction, Milwaukee, $10,000; Richard Klein of Aurora Health Care, Brookfield, $10,000; Herbert Kohler of Kohler Company, Kohler, $8,000; James Leef of ITU Inc., Brookfield, $4,000; Fred Luber of Super Steel Products Corp., Milwaukee, $2,000; Glenn Madrigrano of CJW Inc., Kenosha, $2,500; Michael Mahoney of Park Bank, Mequon, $2,000; Daniel McKeithan of Tamarack Petroleum Company, Milwaukee, $20,000; John Mellowes of Charter Manufacturing Co. Inc., Mequon, $10,000; Mark Neumann of Neumann Homes Inc., Nashotah, $2,500; Albert Nicholas of Nicholas Company Inc., Hartland, $25,000; Eric Peter of Jax Inc., Elm Grove, $2,500; Thomas Quadracci of Quad/Graphics Inc., Hartland, $2,000; V. Ross Read III, Clement Finance & Leasing Inc., Milwaukee; Roy Reiman (retired) of Reiman Publications, $10,000; Steve Ristow of Schneider Excavating, Lannon, $2,500; Michael White of Rite-Hite Holding Corp., River Hills, $16,700; Richard Wiederhold of Managed Health Services, Elm Grove, $2,000; and James Wigdale (retired) of Marshall & Ilsley Corp., Fox Point, $3,000.

A Wisconsin Democracy Campaign analysis of the individual Walker contributions reported in the latest campaign finance report shows that 61 percent came from outside Wisconsin. Nearly $2.3 million of the $4.5 million raised came from just 33 donors.

The largest out-of-state donations included: $250,000 each from Sarah Atkins and David Humphries of Tamko Building Products in Joplin, Mo.; $250,000 from Stanley Herzog of Herzog Companies Inc. in St. Joseph, Mo.; $250,000 from Bob J. Perry of Perry Homes in Houston, Texas; and $100,000 from Bruce Kovner of Caxton Alternative Management LP in New York City.

Perry was the financier of the infamous “Swift Boat” ads against 2004 Democratic presidential nominee John Kerry.

The political action committee (PAC) of the Metropolitan Milwaukee Association of Commerce donated $150,000 to Walker’s campaign on Dec. 16 and another $25,000 on Jan. 2.

“Gov. Scott Walker is traveling across America selling out Wisconsin to the highest bidder,” said Scot Ross, executive director of One Wisconsin Now, one of the groups working to recall Walker. “No wonder Walker doesn’t have time to try and stop the six straight months of job loss. Traveling across the country to raise money is his day job, being governor is just his hobby at this point.”

- Steve Jagler is executive editor of BizTimes.

These are the voices of the recall movement

Who are they – the half million folks who signed recall Scott Walker petitions? What are their demographics, income levels, education, occupations? And, most importantly, what are their issues?
The Walker supporters would probably call us ignorant liberals, progressives, fools, and worse – but we are a diverse group of intelligent people. Here are some of our stories:

I recently chatted with Jeff, a married and employed attorney in Whitefish Bay. His specialties include negotiations and international practices, and his education includes Yale and Columbia Universities. He also holds a certification from the Parker School in foreign and comparative Law. He has been an advocacy chair for the American Diabetes Association of Wisconsin and donates pro-bono work with children. Jeff feels that Walker’s policies have divided the state as never before (i.e. Voter ID). Taking a cherished American freedom away from Americans is damaging. Changing voting rules is very costly, especially during a budget crisis, and unfair redistricting has enhanced Republican power.
Jeff, who is in his 50s, believes in the greater good for the community rather than the accumulation of material possessions. The lower 50 percent of the income level people would spend more if they had more and could pay more taxes. The wealthy are not really making jobs. Doyle’s budget had a $6.5B deficit which was resolved through successful bargaining (including collective bargaining).

Annie is a 68-year-old retired executive manager. She currently lives in Brown Deer but moved to Wisconsin in 1957. Her 50th wedding anniversary is this April. She has three successful children: an attorney, a teacher and a business manager. Her education includes Manpower Business Technical Institute with a focus on computer programming and the University of Wisconsin-Milwaukee with a focus on community education. She has tutored children around Milwaukee for years, teaching  math and reading.  According to Annie, the children worked hard because they wanted to get a job. She thinks Walker is harming these children and working families by cutting education funding and health care. She asked, “Is it true that Walker wants these children to die mentally and physically? He continues to give huge tax cuts to corporations sending jobs oversea. Walker is dishonest with the people.” She has worked very hard to get as many petition signatures possible to recall Scott Walker.

Bruce B. is a former flight instructor / charter pilot who is in his 50s and now retired. His education includes a B.A. in applied science-aviation. When I asked about his marital status, he replied, “I am single, not allowed to marry (gay).”  Bruce grew up in Wisconsin, left for a few years in the mid-70's (Arizona), then returned and has lived here since.
He claimed: “The issue that bothers me the most: Cutting Badger Care. “I have volunteered at free clinics in Milwaukee since 1978. Cutting  Badger Care will wipe out medical care to 64,000 Wisconsin residents, of which 25,000 are children.  Given my volunteer background, I can guarantee you that people will die. I suspect it will be mostly women and children, especially infants. Walker and the Republicans who voted to cut Badger Care know that people will die, but don't care. They think that balancing the budget is a higher priority than life itself. This concept cannot be Christian. Yet the governor holds "prayer breakfasts," and professes to all that he is a Christian. Jesus will judge him.”
Another issue that bothers Bruce:  “Cutting education funding by $800 million even as test scores of American students continue to decline, as compared to students in other countries.  We used to be #1 compared to the rest of the free world.  Now we are #25.  It is absurd to cut dollars for education now, with the argument that it will prevent raising taxes.”

Bruce’s other issues include the following:

  • Rules, laws, compliance procedures, etc. that used to require a vote in the legislature and senate are now controlled solely by the governor.  He can also override a decision in any city, town or other community that he feels is not conducting issues "appropriately."  He can assign a person to go into any town, and take over the governing system there.  This is a dangerous precedent.
  • Walker never mentioned his intent to bust the unions of collective bargaining during his campaign, and only support the unions who endorsed him.
  • He has recently appealed to the federal government to allow Wisconsin to be exempt from Medicaid requirements.
  • His financial support is from outside of Wisconsin. As an example, the Koch brothers. They gave him large donations during his campaign, and do so now as well.  They wish to buy utility firms that are now public utilities. Walker is now in the process of changing the laws to make that possible. The Koch brothers P.A.C., Americans For Prosperity, opened an office across the street from the State Capitol.
  • There were fake candidates to force a recall primary. This is actually an issue that is connected to the Alberta Darling recall election, but it is a sleazy way to buy time, and I suspect Walker will do the same during the election process after the recall succeeds. It should be illegal. Yet, the Republicans have made it clear that they are proud of this tool.
  • The voter I.D. law. Walker can claim that it is to prevent fraud, but I argue that it is meant to deny the Constitutionally protected rights of those who normally vote Democrat: The disenfranchised and poor, who are unable to advocate for themselves.
  • Since he took office, Wisconsin has lost many jobs. He claims to be the job-maker. Yet, it turns out that Wisconsin residents lost more jobs in October and November, 2011, than any other state in the country.
     

Naomi  is a therapist and environmental educator who completed graduate school. She is married with three children and is a member of the 50+ crowd. She said the following: “The issues that really upset me are related to the idea that government, as a representation of the people, is an untrustworthy entity. Our collective resources of goods, energy, finances, talent, education, health care, etc., make for a stronger and healthier society. It is when our entire community is thriving that there is potential for collective happiness and good will. But human communities need help with this, and government is the only fair agent to distribute our resources to all members. I don’t understand how greed is okay, nor how we can continue to punish the poor with bad health care, bad schools, bad housing, and still be called a democratic free society. Granted, there are always some problems in government agencies, but not nearly  as corrupt as our current system.
“Governor Walker is trying to privatize Wisconsin, which means there is a private selection of who gets funding and for which projects. The for-profit entities are always trying to use the fewest employees on the cheapest terms. That is how China can pay very young laborers tiny wages for long hours of work. Wisconsin has a proud history of fighting for fair labor and conditions, good schools for all, parks and land preserved for the public. These are the products of the collective population, not the outcome of the select few controlling the resources. We depend upon our educators to bring the next generation to the world ready to read, write, think, plan, and be of good character. Teachers should be treated as professionals.”

These paragraphs could go on and on. We are a diverse group of intelligent thinkers who care about our state, our communities, and our friends and families. This is only a sample of who we are and what we want.

Doris Appelbaum is the founder, chief executive officer and president of Appelbaum’s Resume Professionals Inc. in Glendale.

We are turning Wisconsin around

We are turning things around.  We are heading in the right direction.  We are moving Wisconsin forward. 

In 2011, we added thousands of private sector jobs and the unemployment rate is down from a year ago.  In fact, it’s the lowest it has been since 2008. 

In the past, 150,000 of our fellow citizens lost their jobs in the private sector.  Two years ago, a mere 10 percent of our employers thought that Wisconsin was headed in the right direction. 

In contrast, we created a better environment for job creation in our state over the past year.  Now, 94 percent of our employers say Wisconsin is headed in the right direction.  A majority of those employers say that they plan on growing in 2012. 

To help small businesses continue to grow, our Wisconsin Working jobs plan helps connect job seekers to employers and to the skills that they need to fill those jobs.  Our initiatives have broad, bi-partisan support.   

To continue to grow our economy, we also needed to address the fiscal crisis we inherited.  Last January, Wisconsin faced a $3.6 billion budget deficit. 

We balanced that budget deficit.  Unlike other states, we did it without raising taxes, without massive layoffs and without budget tricks.  That allowed us to put more than $1.2 billion (one of the biggest increases in the country) into Medicaid to support programs that help needy families, children and seniors. 

Property taxpayers also benefited from our reforms.  For the five years prior to my talking office, the average school tax levy increased $220 million per year.  Our reforms led to the first decrease in the school property tax levy in six years.

We proved that we can have great schools and protect the taxpayers.  We just have to spend our money more wisely. 

In the past, schools were often forced to buy their health insurance from just one company.  Now, they can bid it out and school districts are saving millions. 

As the father of two students in a public high school in Wisconsin, I am thankful for our great schools and outstanding teachers.  That’s why I’m glad schools can now staff based on merit and pay based on performance.  That means we can put the best and the brightest in our classrooms, and we can keep them there. 

Looking ahead, we have a plan to improve reading in our state through our Read to Lead initiative.  We want to be certain that every child is reading early so they don’t ever feel that learning isn’t for them. 

We are also working with State Superintendent of Public Instruction Tony Evers on a system to hold schools and school districts accountable to educators, parents, employers and each community.  Our system will help replicate success and help fix problems.   

Overall, we are working hard to help the people of our state create more jobs, continue to balance our budget and make sure that every kid has access to a great education.  Working together, I know we can improve Wisconsin.

We made some tough decisions over the past year because I didn’t want to pass on a mess to my kids and others like them.  We thought more about the next generation than we did about the next election.  We kept our promises. 

Thankfully, we are turning things around and are heading in the right direction. Together, we will continue to move Wisconsin forward.

Scott Walker is the governor of Wisconsin.

Wisconsin’s trifecta of jobs must include mining

Wisconsin has a long tradition of hard working people. Our statehood has its roots in agriculture and mining, and soon after that our state began growing its strength in manufacturing, too.

Wisconsin consistently ranks near the top of states with a manufacturing intensive economy. Our many skilled craftsmen produce large steel fabricated goods, machine tools, forgings, ships, and many other products. Our can-do work ethic lends itself to efficient, safe, and productive industries – we know how to “make it.”

Our agriculture sector is one of the best producers in the nation, leading the way in milk, cheese, and dairy products. I grew up on a dairy farm and apple orchard, so I know first-hand the hard work it takes to maintain farms and produce quality products.  Our Wisconsin farmers know how to “milk it.”

Finally, the third leg I see in Wisconsin’s trifecta of jobs is mining. Our history is rooted so much in mining that a miner appears on our flag and the badger is our state symbol, referring to the settlers that burrowed underground in mines. Unfortunately, Wisconsin’s mining laws in recent years have effectively made mining non-existent through an uncertain and open-ended process that discourages capital investment.

The bill to be considered by the State Assembly this week reforms the process by establishing clear and achievable standards to issue a permit for an iron ore mine. We can pass legislation that forms a reasonable process for active mining while still protecting our environment.

The result of encouraging the mining industry to come back to Wisconsin will mean thousands of jobs and new investment in our state. Jobs will be created around the state from Iron and Ashland Counties where the mine would be located to southeastern Wisconsin where mining equipment is manufactured. 

I believe we create a framework for environmentally responsible mining. It’s been done before and it can be done again. I want to revive and strengthen our state economy.  The way to do that is by creating new economic opportunities. This legislation does just that.  It’s an opportunity to attract new manufacturers to the state, retain manufacturers already here, and spark economic growth around Wisconsin to create family-supporting jobs. We must once again make it, milk it, and mine it to be successful in Wisconsin.


Mark Honadel is the State Representative for the 21st Assembly District, which includes South Milwaukee, Oak Creek and a part of Milwaukee.

Wisconsin politics will be even more toxic in 2012

Tens of millions of dollars from out of state will be poured into Wisconsin in 2012.

That money will not go toward restoring the state’s crumbling infrastructure. It won’t go into the state’s aging school buildings. It won’t go into training the state’s workforce. It won’t go into protecting the state’s natural resources or in boosting its struggling nonprofit community.

Nope. All that money will flow directly into Wisconsin’s toxic political bloodstream.

For a moment, think of the time, talent and treasure that will be devoted to recalling or defending Wisconsin Gov. Scott Walker, Lt. Gov. Rebecca Kleefisch and four Republican state senators. Then add the millions of dollars to be invested in the most expensive U.S. Senate race in Wisconsin history.

And just imagine the lead-up to the Nov. 6, 2012, presidential race playing out in this purple state.

Make no mistake, Wisconsin is a state divided against itself. The state has devolved into camps of “us” and “them.”
Brace yourself. Your television is on the verge of becoming one perpetual political soap box. The bulk of the commercials will not even be bought by the candidates, but by outside, shadowy forces.

Walker is good. Walker is evil. Walker is good. Walker is evil. Back and forth the commercials will go. And go. And go some more. Other than Wisconsin TV station managers, the only people smiling will be attorneys assigned to either protect the recall process or disrupt it.

With such a fractured populace, how can the state’s economy collectively move forward in 2012?

How, indeed.

Let’s step back for a moment to June 16, 1858, when more than 1,000 Republican delegates met in the Illinois statehouse in Springfield for the Republican State Convention, where Abraham Lincoln, a candidate for U.S. Senate, made the following statement: “A house divided against itself cannot stand.”

Lincoln’s remark was a paraphrase of a Biblical passage (Matthew 12:25): "And Jesus knew their thoughts, and said unto them, every kingdom divided against itself is brought to desolation; and every city or house divided against itself shall not stand.” (King James Version)

Of course, Lincoln’s remark was in reference to the growing national debate over the morality of slavery.

Wisconsin’s philosophical debate of 2012 is much more murky, complex and nuanced. But the people on both ends of the Wisconsin debate feel no less impassioned. I know of families that have been split in half by Wisconsin’s divide.

Us and them.

And no matter whom your “us” and your “them” are as this Wisconsin drama plays out in 2012, we will eventually have to move forward somehow. Together.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

Meet the man with the money behind the mine

Wisconsin's legislature will soon decide whether to reopen part of the Northwoods to iron ore mining.

Much has been written and said about the proposed new mine in the Penokee-Gogebic Range, but not much attention has been paid to the man behind the project and the sprawling global conglomerate he is connected to.

The Wisconsin Democracy Campaign first started noticing large campaign contributions from mining interests to Wisconsin politicians just over a year ago, long before the mining bill was introduced.

All of the money came from out of state. Roughly a quarter of the donations came from West Virginia mining magnate Chris Cline. The rest came from associates of Cline's. Some of those associates are at Cline Resource and Development. Others are with a company called Foresight, which is majority-owned and led by Cline. Still others are with a law firm Cline does business with. The remainder are other mining executives who've done business with Cline.

Environmentalists claim the mining bill being pushed in Wisconsin was written by the mining industry and would gut existing safeguards. The legislation certainly is Chris Cline's dream. And its approach to permit streamlining and environmental deregulation does bear a striking resemblance to the corporate-funded American Legislative Exchange Council's model legislation known as the "Performance Based Permitting Act" and "Groundwater Protection Act."

Cline's Foresight is part of the global asset management firm Carlyle Group, a highly controversial and politically well connected corporate behemoth with tentacles that reach across the defense, aerospace, automotive, energy, health care, real estate, technology, telecommunications and transportation industries. Carlyle Group first earned a mention on the Democracy Campaign's website in a 2005 report we issued about shady Illinois donors who were funneling money to three candidates for governor in Wisconsin.

The Economist describes Carlyle Group as "deeply embedded in the iron triangle where industry, government and the military converge" and says it "arguably takes to a new level the military-industrial complex that President Eisenhower feared might 'endanger our liberties or democratic process.'"

Carlyle Group also is into mining, through Chris Cline's Foresight. Which is itself a danger to our liberties and democratic process here in Wisconsin.


Mike McCabe is the executive director of the Wisconsin Democracy Campaign, a nonpartisan election campaign watchdog agency.

Wisconsin is benefiting from Walker reforms

If there is one thing the people of Wisconsin have learned in this last year, it is that politics and policymaking can be extremely emotional. People often approach challenges believing their solutions are the only way to address difficulties.

It is in discovering that there are a wide variety of solutions to some of government’s paramount challenges that can cause the greatest emotional reaction, especially when these other ideas actually work.

In what can only be described as an emotional diatribe against the very tough but necessary decisions Gov. Scott Walker has made during his first year in office, Democratic Party of Wisconsin Chairman Mike Tate made some serious accusations in a previous Milwaukee Biz Blog regarding Gov. Walker’s reforms. While Tate and members of the Democratic Party had ideas on how the $3.6 billion budget deficit should be addressed – mostly by raising taxes on hard working Wisconsinites – Gov. Walker implemented reforms which fell in line with the promises he made on the campaign trail, and the Badger State is now benefiting from those reforms.

The reality is that Gov. Walker has laid the foundation for a more successful Wisconsin, put government back on the side of taxpayers, and got the state’s fiscal house in order. Not only has the governor closed a $3.6 billion budget deficit by not raising taxes or laying off public employees, he also added $1.2 billion to Medicaid, and his reforms led to the reduction of overall school property taxes by $47 million.

During the Doyle administration, Wisconsin lost more than 150,000 jobs, UW-Madison students saw a 9 percent tuition increase, and million-dollar cuts were made to public education which Doyle used one-time stimulus funds to backfill. Democrats have long used budgeting gimmicks to “balance” the budget, when all they really did was rob Peter to pay Paul and then used one-time federal funding to pay Peter back, but only temporarily.

Gov. Walker knew that the long practiced strategies of raising taxes, cutting crucial government programs, laying off workers and fudging numbers were not going to create long-term stability for our state. Gov. Walker is committed to creating an environment which allows Wisconsin to lead the way in private sector job growth. He knows that tomorrow’s leaders will come from our education system, which is why public education makes up the largest percentage of state support in his budget.

It is because the ideas and solutions that are turning our state’s economy around did not come from big-government, public employee union bosses that these same unions have launched this baseless recall effort. Gov. Walker’s reforms implemented a system whereby public employees have been asked to contribute the employee’s share of pension and health care costs, just like is done in the private sector.

Now, Madison liberals, at the direction of special interest unions, are fighting tooth and nail to force the millions of dollars Gov. Walker has saved taxpayers back into the hands of public employee unions. Wisconsinites will not stand for the $9 million power grab this recall is going to cost them and they will not allow the blatantly false accusations of what Gov. Walker’s reforms have accomplished to prematurely end his term.

Mike Grebe is the chairman of Friends of Scott Walker.

Ryan won’t support Internet piracy bill

U.S. Rep. Paul Ryan (R-Janesville) found himself at the center of a controversy he did not create this month.

The controversy stemmed from H.R. 3261, the proposed Stop Online Piracy Act (SOPA), which would empower the U.S. Justice Department and copyright holders to demand that search engines, Internet providers and ad networks cut off access to sites “dedicated” to copyright infringement. The bill is aimed at blocking foreign sites that offer illegal and cheap copies of movies, music and television shows with impunity.

A broad coalition of forces, including the U.S. Chamber of Commerce, organized labor and advocates for Hollywood and the recording industry, are supporting the bill, which was sponsored by House Judiciary Committee Chairman Lamar Smith (R-Texas).

However, consumer watchdog groups and major Internet companies, including Facebook, Google and Yahoo, are opposing SOPA and warn that the bill could stifle innovation and censor free speech.

The division between support and opposition on the bill is not falling directly down party lines.

Ryan, chairman of the House Budget Committee, became a target of “Operation Pull Ryan” (www.pullryan.com), a Reddit campaign community, last month, and Internet rumors quickly spread that Ryan was a sponsor of the bill. He was not. Ever.

Ryan originally declined to take a stance on the bill. Eventually, as the Internet campaign against him grew, Ryan issued a statement announcing his opposition to the bill: “The Internet is one of the most magnificent expressions of freedom and free enterprise in history. It should stay that way. While H.R. 3261, the Stop Online Piracy Act, attempts to address a legitimate problem, I believe it creates the precedent and possibility for undue regulation, censorship and legal abuse. I do not support H.R. 3261 in its current form and will oppose the legislation should it come before the full House.”

Smith said his bill does not apply to lawful websites, and opponents such as Google are “spreading lies” about SOPA.

“Chairman Ryan is usually very knowledgeable on issues before Congress, which is why it’s surprising that he appears not to have closely read the manager’s amendment to the Stop Online Piracy Act," Smith said in an emailed statement to The Hill, a web site that tracks Congress.  "Had Chairman Ryan read the manager’s amendment, he would have realized that the bill targets only foreign websites dedicated to illegal activity.  It’s not regulation to enforce the law against online criminals. And it’s not censorship to prevent online criminals from stealing the products and profits that rightly belong to American innovators."

Smith claimed foreign websites are costing American businesses billions of dollars and thousands of jobs every year.

As “Operation Pull Ryan” progressed, members of the movement began to gravitate toward Rob Zerban, Ryan’s Democratic opponent in the 2012 elections. Zerban, a Kenosha County Board supervisor, was quick to denounce SOPA and credited his opposition with helping him to raise more than $220,000 in campaign donations in the final quarter of 2011.

Zerban said, "Paul Ryan has bowed to public pressure and decided to join me in opposing SOPA legislation, which endangers our freedoms online. This legislation is clearly contrary to the will of the people, and thousands of people helped get that message through to Paul Ryan. I realize I am a partner in this effort with the public and I am not claiming credit for this. The American people rallied behind this effort and my position, and they got results.”

The House Judiciary Committee is expected to vote on the bill when Congress returns from its recess later this month. The Senate is also set to vote on its version of the legislation, the Protect IP Act, when Congress returns.


Steve Jagler is executive editor of BizTimes Milwaukee.

Job creation must be bipartisan agenda

It’s a foregone conclusion that Gov. Scott Walker won’t hit his goal of 250,000 new jobs in Wisconsin by 2015.

It’s also a fact that Wisconsin’s best interests are served if everyone keeps that ambitious job creation goal firmly in mind.

The rhetoricians who came up with Walker’s 250,000 new jobs figure during the 2010 campaign weren’t entirely out of touch with reality when they came up with the number. Wisconsin had about 2.7 million non-farm workers in the fall of 2010, so adding 250,000 jobs by the end of a standard gubernatorial term didn’t seem impossible. The 250,000 goal represented about 9.2 percent growth spread over four years – or roughly 2.3 percent growth per year.

Aggressive? Yes. Out of line with historic trends? Not completely, given what economists knew at the time.

In fact, Walker’s Democratic opponent in the 2010 general election, Milwaukee Mayor Tom Barrett, set a goal of creating 180,000 jobs over his four-year term. That’s about 1.6 percent job growth per year. So it’s not as if Democrats don’t buy the importance of setting vigorous economic goals.

If a recall election takes place sometime in 2012, no Democratic candidate will run on a platform of being timid about job creation. “Let’s settle for less” doesn’t make for a winning bumper sticker, even if it does fit. In politics as in business as in life, people respond to clear, aspirational goals.

So the real questions become how many jobs can Wisconsin realistically create over time – and what are the right strategies for getting there? Here’s what we know:

  • According to the U.S. Bureau of Labor Statistics, there were 47,000 fewer jobs in Wisconsin in October 2011 than there were in October 2001. That’s a 10-year growth rate of minus 0.2 percent, which compared to 0.0 percent growth in Minnesota, minus 0.5 percent in Illinois, minus 0.1 percent in Iowa and minus 1.4 percent in Michigan. In short, flat job growth has been a regional phenomenon tied largely to the recession that began in late 2008 but also reflective of the manufacturing downturn that began much earlier.
  • The Wisconsin Department of Revenue predicted in October, based on its internal modeling, that 136,000 would be added to the state’s private payrolls by 2015. When the final job figures for 2011 are crunched, Wisconsin will show a modest net gain for the year – but the pace must quicken to achieve even the Revenue Department’s prediction.
  • Wisconsin may already be faring better than expected on job creation, at least in comparison to what other states are doing. A recent report by Economic Modeling Specialist Inc., a national firm headquartered in Idaho, examined all 50 states from the perspective of “expected” job creation in 2011 to actual performance. “Boom states” – mostly in the Great Plains and Rocky Mountain regions – were best at beating expectations. Wisconsin ranked 22nd on the list, adding 10,745 more jobs than a national formula might predict.


Critics can pound Walker all they want for setting a lofty goal, and it was risky for him to suggest state policies alone would be enough to trump national and international mega-trends. It’s not Scott Walker’s fault that parts of the European Union are an economic basket case or that Congress and the White House can’t come to terms on the budget deficit – but it was his mistake not to anticipate how external factors could wash up on Wisconsin’s shores.

 

So, what’s next? The 250,000 goal can be second-guessed forever, and probably will be in a recall-election environment. But there’s little doubt that Wisconsin needs a stronger economy and strategic job-creation strategies. Democrats and Republicans alike should be able to agree on that. As the Legislature returns this month, there will be several opportunities for both sides to work together on key bills that can help the private sector do what only it can do – create jobs.

Barring an economic miracle, Wisconsin won’t have 250,000 new jobs by 2015. But the goal should remain as a constant reminder that everyone has a stake in creating a more productive, prosperous Wisconsin.


Tom Still is president of the Wisconsin Technology Council.

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