Milwaukee Biz Blog

Editor’s note: Susan Urahn, managing director of the Pew Center on the States, wrote the following Milwaukee Biz Blog in response to Thursday’s Biz Blog entry by Wisconsin Department of Administration Secretary Michael Morgan about Pew’s study, "Beyond California: States in Fiscal Peril."

Pew's report is factually accurate and fair. Wisconsin was highlighted in our report because it exhibits many of the same fiscal warning signs seen in California, as documented by widely accepted, publicly available data.

The facts are clear. Wisconsin, like California and the eight other states Pew profiled, faces serious fiscal challenges. In reaching this conclusion, Pew relied on data from respected sources including the U.S. Department of Labor Statistics, the Nelson A. Rockefeller Institute of Government, the U.S. Census Bureau and experts in both academia and government.

Our report states that California's budget problems are in a league of their own. But Wisconsin has had persistent budget shortfalls - the state has had a negative general fund balance from fiscal years 2002 to 2008, according to its own Comprehensive Annual Financial Reports. Additionally, Wisconsin has used short-term fixes to meet budget challenges, such as relying on its transportation funds to cover day-to-day operating expenses.

Prior to the 2010 fiscal year, Wisconsin faced a more than $3.2 billion budget gap - nearly a quarter of its general funds, according to the Center on Budget and Policy Priorities. During the first quarter of 2009, the state’s revenues declined by $370 million from the same quarter of the previous year, according to the U.S. Census Bureau and the Rockefeller Institute. Wisconsin’s revenues declined even further in the next quarter from the previous year, down $1.25 billion or 24.3 percent.

Wisconsin’s third-quarter unemployment rate shows job losses are moderating. However, while Wisconsin manufacturing may be performing better in the current downturn than that of some of its neighbors, such as Michigan, the job losses in this sector have been heavy. The Center on Wisconsin Strategy, based at the University of Wisconsin-Madison, reported in September that, from December 2007 to July 2009, the Badger State lost one-eighth of its manufacturing workforce.

As our report reflects, Wisconsin, like other states, has made attempts to deal with its fiscal challenges. The legislature passed the current spending plan on time, before the biennium started, for the first time in 32 years. It used $2.2 billion in federal stimulus funds to plug some budget shortfalls this year. To cover the rest of the gap, lawmakers took difficult steps such as raising taxes on the wealthy, hospitals and smokers, and cutting spending by $3 billion. But for the next biennium, which starts July 1, 2011, additional budget shortfalls of about $2 billion are expected, according to the Wisconsin Legislative Fiscal Bureau

For the report Beyond California: States in Fiscal Peril, Pew identified factors that have contributed significantly to California’s difficulties, then determined the degree to which other states are experiencing the same challenges. These factors are: (1) loss of state revenues; (2) the relative size of budget gaps; (3) increasing joblessness; (4) high foreclosure rates; (5) legal obstacles to balanced budgets—specifically, a supermajority requirement for some or all tax increases or budget bills and (6) poor money-management practices.

Pew scored all 50 states using the best available data as of July 31, 2009. The snapshot captures an important juncture: the first and second quarters of 2009, the pressure point for governors and legislatures in the throes of crafting their budgets for fiscal year 2010 (which began on July 1 in all but four states). More information on the methodology and the report in its entirety is available at www.pewcenteronthestates.org/beyondcalifornia.

Susan Urahn is the managing director of the Pew Center on the States in Washington, D.C.

President Barack Obama showed up at Madison's Wright Middle School last week to talk about reforming education, but that topic may not have been top of mind for everyone who came to hear him.

It was the day after Democrats lost races for governor in Virginia and New Jersey, two states where Obama made personal appeals, and during a time in which Congress was stewing over health-care reform, troop levels in Afghanistan and legislation to extend unemployment benefits.

In case anyone was listening, however, the setting was as good a place as any to talk about what it will take to produce better educated citizens.

Wright Middle School is a 12-year old charter school within the Madison School District. It has about 240 sixth-, seventh- and eighth-grade students, mostly black and Latino, with attendance rates that historically hover around 93 percent. It's been a public education success story because the students who attend all choose to be there – and their parents choose to be involved.

Obama wanted to speak at Wright Middle School to highlight the "Race to the Top" competition, which will invite states such as Wisconsin to compete for a share of $4.35 billion in federal education grants. Obama, who believes lagging achievements in education are a chronic problem in the United States, urged Wright students to aim higher, calling education "a prerequisite for success."

He's right, of course. Better educated people are more likely to find jobs, keep jobs, earn a good living and contribute to society as a whole. The real debate is how best to produce more of them.

"Race to the Top" dangles federal aid carrots to states that raise academic standards, improve teacher quality and expand the reach of charter schools. While $4.35 billion is a lot of money, it represents only a fraction of total K-12 education spending in the United States - about $667 billion in 2008-2009. It's even a fraction of federal-only spending on elementary and secondary education, a category that has grown sharply since former President Bush launched "No Child Left Behind" in 2001.

More money alone won't solve the problem. For "Race to the Top" to work, it must spur education innovation that spreads far beyond a charter school here and a new standard there. It must build upon best practices that can be broadly implemented, in Wisconsin and elsewhere.

Public-private efforts to enrich science, technology, engineering and math education provide ready examples of innovation. In Wisconsin, programs such as Project Lead the Way, Science Olympiad and FIRST Robotics have energized students and teachers alike - and are beginning to yield results.
Project Lead the Way is one instructive example. It prepares middle and high school students for careers in engineering and technology through courses that capture students' imagination. It's used in 2,300 schools nationwide, including 162 in Wisconsin, and is taught by existing public and private school teachers who are immersed in PTLW techniques. The track record is impressive: 73 percent of Project Lead the Way students enter engineering or tech programs, and 80 percent earn their degrees.

Another example of thinking differently about education involves student testing. Wisconsin has begun the process of phasing out its current system of testing student performance in grades three through eight and 10 in favor of a system that will more effectively guide teachers, parents and students - and help prepare those students for college and the workforce.

In the process, it should also help businesses in search for workers with 21st century skills, and Wisconsin taxpayers who have a stake in more effective use of local, state and federal dollars.
Other states have remade their testing systems already. Some, such as Oregon, have developed an Internet-based system, which dramatically shortens reporting time and allows for repeat tests for those who want to improve. Michigan requires the ACT test in its system, which lowers the statewide average score (a Wisconsin bragging right for decades) but serves to encourage more students to continue their education after high school. Nebraska built a statewide assessment system from classroom and district best practices. They're all designed to raise standards and performance.

Don't get me wrong: Wisconsin could use whatever share of the "Race to the Top" dollars it can get: It ranks a miserable 49th among the 50 states in per capita federal spending on K-12 education, according to one recent study. But let's make sure those dollars are put to work on innovation that can spread far beyond a school here or a classroom there.

Tom Still is president of the Wisconsin Technology Council. He is the former associate editor of the Wisconsin State Journal.

All of those naysayers who believe Wisconsin is a terrible place to do business need to take a deep breath and do some serious recalibrating.
To be sure, like every other state, Wisconsin has its share of challenges - its high taxes and the dropout rate at Milwaukee Public Schools always quickly come to mind. And no doubt, Wisconsin has taken it on the chin with the closures of automotive plants in Janesville and Kenosha.
The losses have made the Milwaukee 7 a convenient target for people who make a habit out of trashing Wisconsin's business climate.
However, the negative drumbeat news cycle needs to take a break sometimes, and Tuesday was one of those days.
BizTimes had known for weeks that Milwaukee is one of two cities to be finalists in a Spanish company's search to build its new North American headquarters. We were told by city officials that we should not report that fact, however, because doing so could jeopardize Milwaukee's chances of landing the project.
Well, Wisconsin Secretary of Commerce Richard Leinenkugel blew those concerns out of the water Tuesday when he reported by phone from Bilbao, Spain, at the Metropolitan Milwaukee Association of Commerce (MMAC) all-member meeting that he had just concluded a "12-hour cage match" presentation to a Spanish company.
Leinenkugel is courting the Spanish firm with a southeastern Wisconsin delegation that includes officials from the Milwaukee 7, We Energies and Richard "Rocky" Marcoux, commissioner of the Milwaukee Department of City Development.
Milwaukee is "at the finish line" of landing the company's North American headquarters that would bring hundreds of jobs to southeastern Wisconsin and could also generate more work for vendors in the region, sources said.
"It's between us and one other city," said one source close to the negotiations.
Officials representing the Spanish company have been studying the business climate in southeastern Wisconsin for weeks, BizTimes has learned. The company sent representatives to the MMAC's Future 50 program in September, and they toured several southeastern Wisconsin factories, including the GenMet metal fabrication plant in Mequon. The plant tours were designed to give the Spanish company some insight about the array of potential partners and vendors in the region, sources said.
Sources said they expect the Spanish company to make a decision on the site for the North American headquarters by the end of the year.
Sources declined to identify the Spanish company that is being courted by Milwaukee.
We've got a pretty good hunch, however. Think alternative energy. Spain has become the world's second-largest producer of solar and wind energy in the world (behind Germany).
Spanish companies such as Gamesa, a manufacturer and installer of wind turbines, Iberdrola, a power group, and Acciona Energia, a wind park developer, are becoming global players in the fast-emerging alternative energy markets.

Republic Airways jobs
The news that Milwaukee is a finalist for the Spanish company's jobs came on the heels of Republic Airways Holdings Inc.'s announcement earlier Tuesday that it will save 800 jobs in Oak Creek and move 800 new jobs to the region by the end of next year.
Republic, the new parent company of Midwest Airlines, plans to move the jobs to Oak Creek and Milwaukee's General Mitchell International Airport.
Republic chief executive officer Bryan Bedford confirmed the creation of a Milwaukee hub during the MMAC's meeting at the Bradley Center.
Wisconsin Gov. Jim Doyle announced the use of the state's Enterprise Zone tax credits to help convince Republic to bring the jobs to the state.
Indianapolis-based Republic Airways will consolidate operations in Milwaukee from other cities such as Las Cruces, N.M., and Denver, Colo.
Republic acquired Denver-based Frontier Airlines on Oct. 1.
Bedford praised Milwaukee's pro-business climate as a reason for deciding to bring the jobs here, rather than Indianapolis or Denver.
"We spent a lot of time in the last three months trying to figure out where we can be our best and most competitive," Bedford said.
Bedford also announced Republic will add new routes from Milwaukee to San Francisco and Raleigh, N.C. The company is considering adding service to six more routes.
"Midwest Airlines today is about 45 percent to 50 percent of what it was at its peak. Our goal is to get back to its peak as soon as possible," Bedford said.

Mercury Marine jobs
Step back for a moment and recall that Wisconsin also recently beat out Oklahoma to keep Mercury Marine's production plant in Fond du Lac. Wisconsin provided about $70 million in public assistance, along with about $50 million in a loan backed by a Fond du Lac County sales tax and $3 million from the city of Fond du Lac. With the combined package of incentives, Mercury Marine plans to move up to 2,700 jobs to the Fox Valley.

Biotech jobs
In addition to the wins with Mercury Marine and Republic Airways, eight biotechnology companies have recently moved from other states to Wisconsin.
Biotechnology in Wisconsin is an $8.7 billion industry with 400 companies and 34,000 employees. Biotechnology is the fastest-growing segment of the Wisconsin economy, with an annualized growth rate of nearly 7 percent.
The state is benefiting from the formation of the Wisconsin Angel Network and the Wisconsin Venture Fund to help facilitate deal flow, investor exchanges and network creation.
In February, Doyle expanded the investor tax credit law as part of an early economic recovery bill. Enhancements included: raising the cap on tax credits for angel investments from $1 million to $4 million; tripling the annual pool of credits available for angel credits, from $5.5 million to $18.25 million per year, and venture credits, $6 million to $18.75 million; and allowing angel investors to claim the entire 25 percent credit on their investment in the first taxable year.
The eight biotech companies moving to Wisconsin are: RJA Dispersions LLC; VitalMedix; Rapid Diagnostek; Aldevron; Flex Biomedical Inc.; Inviragen Inc.; Exact Sciences Corp.; and NanoMedex.
They're moving here from Minnesota, North Dakota, Massachusetts and Florida.
Those relocations recently prompted the Star-Tribune in Minneapolis to write a series (and a related blog item headlined, "Wisconsin kicks our butt") about how Minnesota is losing out to a better business climate in Wisconsin.

Jobs from the Flatlands
Meanwhile, Uline Inc. of Waukegan, Ill., will move across the Wisconsin border to its new headquarters in Pleasant Prairie in 2010, bringing 1,000 jobs to a state that is supposedly a terrible place to do business. Uline is investing about $100 million in this God-awful place.
Uline received more than $6 million in incentives and aid from the State of Wisconsin to come here. In addition to Uline, several other Chicago area-based firms recently have opted to build facilities in Kenosha County instead of northern Illinois, including Vernon Hills-based Rust-Oleum Corp. and Lake Forest Village-based Hospira Inc.
And guess what? Business advocates in northern Illinois are now screaming because Wisconsin is luring away so many of their businesses. At a meeting of the Lake County Chamber of Commerce in Independence Grove, Lake County Partners president Dave Young blamed Illinois' "unfriendly business climate" for the flight of businesses TO Wisconsin.
"We have a governor (in Illinois) who goes out of his way to antagonize the business community," Young said at the luncheon, according to the Lake County News-Sun. "Unfortunately, right next door in Kenosha County, Gov. Jim Doyle is very adept at business recruitment and actually enjoys it."
Oh, and there will be more good news. Look for the efforts of the Water Council and Badger Meter Inc. CEO Rich Meeusen to pay off with more freshwater technology jobs in the next couple of years.
On Wisconsin!

Steve Jagler is executive editor of BizTimes Milwaukee.

Tom Barrett has implied that he would not remove his children from their Milwaukee schools if he were to run for governor and that he would want to spend some time in Milwaukee if he was elected. I suggest that not only could this be a good idea for the governor, it would be a great idea for the rest of the elected state officials as well.

Spending time outside Madison would allow our legislators to spend more time in their districts talking to local businesses, having coffee with seniors, getting involved with the local schools, and getting to know the real problems and the real opportunities in their districts throughout the state.

I have served on a school board, city council, or as mayor of a community in this state almost continuously since 1982, and I can count on one hand the number of times an elected official actually came to a meeting or sat down to talk with the local elected officials. I have seen countless pieces of legislation passed that would have no doubt benefited from the input of these local officials.

Specifically, the qualified economic offer (QEO) for teachers, tax incremental financing (TIF) laws and many of the grants and loans for business all slightly missed their intended mark. Just a little insight could have prevented errors that have had to be fixed or have cost the state real tax dollars, new business or great teachers.

Wisconsin was founded on the ideal of a part-time legislature in touch with their respective communities. While legislators retain residences in their district, the "in touch" factor is, in most cases, simply not there

Ken Harwood is an alderman for the city of Verona, a former mayor of Neenah and a member of the Neenah School Board. He currently edits the WisconsinDevelopment.com newsletter and maintains the FutureWisconsin.com websites.

The Democratic-controlled U.S. House of Representative approved a landmark health care reform bill Saturday night by a 220-215 vote.
President Barack Obama, who went to Capitol Hill earlier on Saturday to lobby moderate Democrats who were wavering, said, "I look forward to signing it into law by the end of the year."
The bill will now go to the U.S. Senate.
BizTimes Milwaukee collected reactions about the legislation from Wisconsin's Congressional delegation and others. Their comments follow. More comments from other officials may be added during the day, and readers are invited comment at the end of the blog:

Rep. Tammy Baldwin (D-Madison)
"This is an historic moment for our nation. House passage of H.R. 3962, the Affordable Health Care for America Act, marks the first step toward ensuring health care for all Americans. I truly believe that we'll look back years from now and view the passage of this Act to be as significant as the passage of the Social Security Act in 1935 and the Medicare and Medicaid Act in1965. The bill the House passed today will cover 35 million Americans who currently have no health insurance. This legislation will end the abusive practices of the insurance companies. Your coverage will no longer be denied because of a pre-existing condition. The bill will end the despicable practice of retroactively cancelling your policy at the moment you most need care. It will place caps on out-of-pocket medical expenses so that families dealing with a serious illness will no longer face the prospect of bankruptcy or financial ruin. And it will offer a multitude of other reforms to make our health care system more efficient, less costly, and more effective in preventing illness, restoring, and maintaining good health for you and you family. Health care for all is the issue that brought me into politics and has been a driving force in my work ever since. I am proud of the role that I played in crafting this groundbreaking legislation and will continue to work on improving and strengthening this measure to send the strongest bill possible to the President's desk."

Rep. Steve Kagen (D-Appleton), who is a medical doctor
“Tonight, we have taken a bold step forward towards securing the health and safety of all of our families. Working together, we are beginning to fix what is broken in our health care delivery system, guaranteeing that no family will lose their home or need to hold a bake sale just to pay for life-saving treatment. The bill we passed will immediately help senior citizens by beginning to close the Donut Hole in Medicare Part D and eliminating deductibles and co-pays for preventive services in Medicare. It will help everyone in Wisconsin by increasing the number of primary care physicians; securing continued coverage for workers who, through no fault of their own, have lost their jobs; providing immediate help for the uninsured and expanding community health centers ... As someone who has been paying medical malpractice insurance premiums for three decades, I know that we need to fix this problem and strike the right balance. This issue came up frequently in our town hall meetings this summer, and I delivered that message to my colleagues in the House. I listened, came back and helped to write a better bill."

Rep. Ron Kind (D-LaCrosse)
"Comprehensive health care reform is long overdue because the current system is unsustainable. The Affordable Health Care for America Act not only makes health care more stable and affordable for those who already have health insurance, but it guarantees access to health insurance coverage for the uninsured, protects consumers, provides security for seniors, and reforms the way we pay for health care from one that is volume driven to one that is value driven. The health care reform bill builds on what works and fixes what doesn’t, offering stability and security to families who are satisfied with their health insurance and providing choices for those who aren’t, without leaving a legacy of debt to our children. Although it’s not perfect, the bill is a good start. As promised, it’s completely paid for. In fact, it reduces the national deficit by $109 billion over the next 10 years and will reduce the cost of care moving forward. I am proud to support the bill. Our current system pays for the number of procedures ordered instead of the quality of care provided; resulting in $700 -800 billion, approximately one third of health care costs, in wasteful spending each year that doesn’t help the patient. We need a value-based reimbursement system that rewards quality and cost-effectiveness. I’ve worked with health care providers in Wisconsin to correct the unfairness of Medicare reimbursement rates that they have been subjected to for so long. Our region is among the lowest reimbursed in the nation, forcing health care providers to shift costs to private plans, resulting in higher costs for patients. We’re fixing that flawed system with this bill, through negotiations I led, to include provisions for historic payment reform that reward the value of care delivered instead of the quantity of care provided. This bill will lead to a more cost effective way to pay for and deliver health care in our country and lower costs in the long run, making health care more affordable for all Americans. I have been assured by Mayo Clinic, Gunderson Lutheran and other health care providers that they will continue to work with me and other Members of both the House and Senate to achieve a final product that moves Medicare toward a model that rewards value. They understand that more of the same is not an acceptable option."

Rep. Gwen Moore (D-Milwaukee)
"With the passage of the House version of health insurance reform legislation, we recognize the government has a moral responsibility to make sure its citizens have access to quality and affordable health care. The health of a country’s population is absolutely critical to its productivity, and it’s about time that the United States got in the game. In my district, the Affordable Health Care for America Act will improve employer-based coverage for 354,000 residents, and provide credits to help pay for coverage to up to 192,000 households. This bill will improve Medicare for 87,000 beneficiaries, including closing the prescription drug donut hole for 6,200 seniors. It will allow 14,600 small businesses to obtain affordable health care coverage and provide tax credits to help reduce health insurance costs for up to 12,300 small businesses. This legislation will create a right to health care that many Americans have never had before, but it also creates a responsibility that all Americans get insurance so that everyone has some skin in the game. At some point, everyone in America accesses the health care system, and whether or not they have insurance, that care is not free. This bill brings 96 percent of Americans into the health care system – 36 million additional people. This is nothing short of transformational."

Rep. Tom Petri (R-Fond du Lac)
"I think the vote was a tragedy. The bill, when it is finally implemented, will be a killer of jobs and of economic growth. It is going to mean our unemployment will be higher rather than lower, and I think people are going to be shocked when they learn how much more they are going to be paying in premiums for the insurance that they get - especially young people and middle-aged people. There will be real increases in the cost of health care for an awful lot of Americans. Now, I think one thing we have to remember is that this is not final passage. The bill goes to the Senate and will have to go to a conference. There are many hurdles that still have to be passed."

Rep. Paul Ryan (R-Janesville)
"I firmly believe that this is the most consequential vote each of us will take in our service here in Congress. When you expose this bill’s budget gimmicks, does it increase the debt and deficit? Yes. Will it take coverage away from seniors, raise premiums for families, and decrease health care innovation? Yes. Will it raise taxes on small businesses and workers, and cost us nearly 5.5 million jobs when our unemployment rate is 10.2 percent? Yes. Does this bill mean the government will take over running our health care system? Yes. But what is worse is this bill replaces the American Idea with a European-style social welfare state. This bill – more than any other decision we are going to make in this body – will lead to millions of Americans becoming dependents on the state rather than being dependent upon themselves. This is not about health care policy – if it were, we could pass a bipartisan bill to fix what’s broken in health care without breaking what’s working in health care. This is about ideology. “The choice is not whether or not you’re going to stick with your party leaders. The choice here is what side of history do you want to be on? Will you be on the side of history where you stick with the people and the principles that built this exceptional nation? That is the choice we face."

Rep. F. James Sensenbrenner (R-Menomonee Falls)
"The U.S. Constitution declares 'we the people,' not 'we the government.' Yet, with tonight's late night passage of H.R. 3962, the House voted in favor of a government takeover of health care that will raise taxes, cut health care services, and perhaps most alarming, set our nation on a dangerous path in which the government encroaches on our lives even more. In the last few days, we've learned the government couldn't foresee the real cost of Cash for Clunkers and the stimulus package did little to stimulate job growth - and now, the same leaders who brought us these programs are taking over health care with more red tape, increased taxes and additional mandates. Like these programs, with health care, we don't know when the spending will end or how high the final costs will go beyond the estimates. Health care needs to be reformed in our country, but Speaker Pelosi's 2,000 page health care overhaul bill is the wrong way to do it. H.R. 3962 is the wrong prescription for America. This bill makes care more expensive and less available, while hurting Wisconsinites and harming Wisconsin businesses. This legislation chips away at the independence our Founding Fathers fought for, and replaces it with citizens being dependent on their government for care. I hope Senators Kohl and Feingold have a better understanding of the principles of democracy when they consider health care legislation on the Senate floor."

Susan Eckerly, senior vice president of the National Federation of Independent Business (NFIB)
"Small business owners are outraged that their elected representatives voted to pass a health care bill that fails to lower costs, increase choice and provide real competition for America’s small businesses.  Instead, this bill will actually make things worse, not better. With unemployment at a 26-year high, the punitive employer mandates and atrocious new taxes will force small business owners to eliminate jobs and freeze expansion plans at a time when our nation’s economy needs small business to thrive. There is no question that this bill will have devastating consequences for small business owners, their employees and the country’s economic recovery. As we have said since its original introduction, H.R. 3962 is not the kind of reform America’s small businesses need or want. Small businesses have long supported reform that provides more affordable and accessible healthcare options for them and their workers. Instead of listening to small businesses, the House passed a bill that will actually make things worse for small firms. Punishing small employers with employer mandates, payroll taxes and a new government-run program paid for on the backs of small businesses, will not fix our broken healthcare system. H.R. 3962 represents a failed opportunity to help small business owners with their No. 1 problem – skyrocketing health care costs. As the health care debate moves to the Senate floor, NFIB hopes senators will consider legislation that actually makes addressing the needs of small businesses a top priority. This begins with enacting
responsible insurance market reforms and increasing competition in the small group and individual private market by creating an exchange modeled on the SHOP Act. It means allowing national benefit plans to be purchased across state lines – something long supported by small business. And, it means making certain that they do so in a way that doesn’t increase the cost of doing business for our small businesses. We have said repeatedly that we remain committed to trying to support reform efforts that will provide more affordable and accessible healthcare options for small employers and their workers. No one needs reform more."

Bruce Josten, U.S. Chamber of Commerce
"With the passage of H.R. 3962, the health care bill, the House missed a significant opportunity to advance reasonable and meaningful health reform that fundamentally changes how the health care system operates and changes the overall upward trajectory in spending.  American employers and employees want an improvement in the nation's health care system, not an unsustainable, unaffordable overhaul. Friday's news that unemployment has reached double digits for the first time in 26 years should have been a wake-up call for those considering job-stifling tax increases and employer mandates included in the House health care bill. Expanding coverage is an imperative; it is also imperative that the nation is moving on a credible and sustainable fiscal path. Unfortunately, in addition to the massive new tax burdens on individuals and small business owners, the health care reform bill just passed by the House of Representatives fails the crucial test of reducing the soaring cost of health coverage for businesses or individuals. We urge the Senate to listen to the American people and reject the House’s partisan approach to health care."

Robert Kraig, executive director of Citizen Action of Wisconsin
"It is very rare that a vote can be called 'historic,' but the vote Saturday night certainly was. Despite health care reform efforts that go all the way back to Theodore Roosevelt, this is the first time that any comprehensive health care reform bill has ever been passed by either house of Congress. By a narrow margin that would have been shifted by a change in 3 votes, Congress has taken a great step for the people of Wisconsin in passing the Affordable Health Care for America Act. Those who voted yes proved they were on the side of the American people and not the big insurance companies and special interests that have been working overtime to try and kill meaningful health care reform. Because of the strong support from members of the Wisconsin Congressional delegation to do what is right for their constituents, we can look forward to having more affordable health coverage with good, comprehensive benefits, and true choice and competition in the health insurance marketplace."

Erin Musgrave, Small Business Majority
"The passage today of H.R. 3962 by the US House of Representatives was historic. We are finally within reach of effecting real change—change that has been hard fought, is long overdue and essential to small businesses’ survival.  Providing America’s 28 million small business owners with high-quality, affordable healthcare got one huge step closer to becoming a reality today. Small business owners have been mired in a healthcare system that burdens them with inordinate costs, threatens their competitiveness and discourages entrepreneurship. Economic research we released in June shows that without healthcare reform, small business owners will pay nearly $2.4 trillion over the next 10 years to provide health insurance for their employees. Clearly, the cost of doing nothing is too high, and failing to pass healthcare reform legislation this year is unacceptable. We’re pleased to see adjustments to the bill that will benefit small businesses in particular. These include short-term relief through a high-risk pool set to start in 2010, requiring insurers to justify premium increases to discourage price gouging, a requirement that health plans spend at least 85 percent of premium dollars on medical care and individual plans available in the exchange that would save the 22 million self-employed 25 percent on their premiums in 2016. These provisions, along with tax credits, a robust national exchange and strong market reform—specifically the elimination of preexisting condition rules—will go a long way toward getting small businesses the relief they desperately need. With that said, there’s still more work to do. As we await the final Senate bill, it is imperative that all stakeholders remain constructively engaged and focused on enacting comprehensive healthcare reform this year. There are good provisions in the Senate bill that can be merged with H.R. 3962 to improve the final bill—specifically additional measures to lower costs. Today was a good day for small business and America, and we must maintain this momentum if we are to succeed. We’ve come too far to stop now."

Robert Nesse, M.D., president and CEO, Franciscan Skemp Healthcare (La Crosse), Mayo Health System
"The status quo is not acceptable. What we see in health care right now in the United States is tremendous amounts of duplication of services that are not necessary. About 30 percent of the money we spend on health care could be saved if we were all practicing at the best standards of quality and efficiency. The House bill’s provision calling for an Institute of Medicine study and recommendations will move us in the right direction. I look forward to continue working with Congressman Kind to achieve a final product that moves Medicare toward a model that rewards value."

David Newby, president of Wisconsin AFL-CIO
"When the House of Representatives passed the Affordable Health Care for America Act, working families found out who their real friends are, and Rep. Moore is at the top of the list. Residents of the fourth congressional district can be proud that Rep. Moore cast one of the deciding votes to put us closer than we have been in the last 60 years to achieving real health insurance reform. Rep. Moore has been a champion for health care reform. In voting for the Affordable Health Care for America Act, Rep. Moore stood up to the insurance company fat cats who have fought so hard to maintain the status quo. She said 'no' to insurance company denials and discriminations due to pre-existing conditions. She said 'no' to the insurance company stranglehold on 94 percent of the markets and told insurance companies they now have to compete. Rep. Moore said ‘yes’ to fairness, competition, security and stability in our health care system. She voted for a plan that provides health insurance to 96 percent of Americans, pays for itself, and reduces the deficit. Saturday’s vote was a rare vote of conscience that distinguished which members of Congress truly represent the will of the people. We thank Rep. Moore for standing with the working men and women who sent her to Washington and we will honor her commitment by continuing to stand with her. It is very exciting that we are so close to winning genuine health insurance reform and we will redouble our efforts to finish the job."

Derrick Plummer, Democratic Party spokesman
"It's disappointing, but not surprising that Rep. Ryan chose to stand with the insurance companies instead of Wisconsinites. Today, Rep. Ryan voted against a historic bill which will protect Wisconsinites from unfair insurance company practices and will provide coverage for millions of Americans. But standing on the side of insurance company CEOs and the far right wing or the Republican Party isn’t just bad policy, it’s bad politics. Rep. Ryan can be rest assured that after voting against health insurance reform today, the people of the 1st Congressional District will not be voting for Rep. Ryan next November."

Barry Rand, CEO of AARP
"AARP is pleased that the House has passed the Affordable Health Care for American Act. This bill meets our goals of improving Medicare's benefits and making critical health insurance market reforms that make coverage more affordable. Our nation is now closer than ever to a health care system that actually works for all Americans. For too long, insurance companies have taken advantage of discriminatory practices to cherry pick the most profitable customers. And for too long, the high costs of prescription drugs have forced seniors to choose between their medications and other necessities. We must fix this broken, inequitable system. This legislation protects Medicare and ensures that it will be there for today's seniors and for the future generations. The bill makes prescription drugs more affordable for people in Medicare by closing the program's dangerous gap in drug coverage and allowing Medicare to negotiate lower drug prices. It adds cost-free preventive services like cancer screenings and cracks down on waste and fraud to protect and strengthen traditional Medicare benefits. In addition, the legislation provides benefits to help seniors and people with disabilities live in their own homes and communities by establishing the Community Living Assistance Services and Supports (CLASS) program. For all Americans, especially those age 50 to 64 who often struggle to find affordable insurance, this plan strictly limits how much more insurance companies can charge based on age, and stops insurers from denying coverage based on a person's health history or gender. For those who still cannot find affordable coverage on their own, this bill offers help so they can purchase insurance. We thank those representatives who voted for this landmark legislation, and we urge those members who did not support health care reform tonight to reconsider the needs of their constituents when this issue returns to the House for a final vote."

J. James Rohack, M.D., president of the American Medical Association
"The AMA hails the passage of the House health reform bill, which will help improve the health system for patients and physicians and calls for swift passage of H.R. 3961 to secure the stability of the Medicare program. Passage of the House health reform bill is a big step forward as we work for comprehensive health reform this year. The AMA will continue its work with Congress and the administration to strengthen and improve health reform legislation as the process continues for patients and physicians. The bill will significantly expand health insurance coverage to Americans; empower patient and physician decision making; institute meaningful insurance market reforms; make substantial investments in quality; institute prevention and wellness initiatives; provide incentives to states that adopt certificate of merit and/or early offer liability reforms, and reduce administrative burdens. As Congress considers new coverage commitments to the American people through health reform, it must ensure that commitments already made are fulfilled through passage of the Medicare Physician Payment Reform Act of 2009 (H.R. 3961). This bill will permanently repeal the broken physician payment formula and preserve access to care for seniors, baby boomers and military families."

The Impartial Justice bill passed Thursday by the Assembly and Senate easily qualifies as the most significant campaign reform in Wisconsin in more than 30 years. Not since 1977 has a reform approaching this magnitude been achieved in this state.

Wisconsin has been electing Supreme Court justices for more than 150 years, but in very recent years these elections have been turned into auctions. Passage of this legislation marks the beginning of Wisconsin’s return to the kind of high court elections that served our state extremely well for over a century and a half.

Our justice system is built on a bedrock principle. Judges aren’t supposed to belong to anyone. They are to be accountable only to the law and the Constitution. Every legislator who voted for the Impartial Justice bill today struck a critically important blow for that principle.

Thursday’s action was a timely and forceful response to the court majority’s outrageous decision last week to approve rules written by Wisconsin Manufacturers and Commerce and the Wisconsin Realtors Association allowing judges in Wisconsin to rule on cases involving their biggest campaign supporters.

The Impartial Justice bill does not address every cause of eroding public confidence in the independence of our courts and the fairness and impartiality of judges, and it does not solve every problem plaguing the Wisconsin Supreme Court. Other reforms – such as those proposed in Senate Bill 43 and Assembly Bill 63 – are surely needed. But this legislation does free candidates for the state’s highest court from the money chase and enables any who seek this office to vigorously campaign and communicate with voters without having to raise huge sums of private special interest money from individuals and organizations who may end up appearing before them in court.

Mike McCabe is the executive director of the Wisconisn Democracy Campaign, a nonpartisan government watchdog group. Additional information is available at www.wisdc.org.

I wonder if every American citizen who has jumped on the Al Gore bandwagon of global warming got just half as excited about our business climate, would Wisconsin be facing such high unemployment rates? Would Wisconsin be faced with so many businesses closing up shop and moving out of state?

First I must put forth this disclaimer. I do not believe in man-made global warming. I do, however, believe in climate change (there is a difference). If we are in a cycle of warming, then that's just the condition of the earth and the sun that we must assimilate.  This opinion has not come lightly. I have studied at least 100+ hours, listening to both the liberal and conservative sides.

But let's talk about our nation's business climate or more specifically Wisconsin's business climate. Wisconsin still has all the tools it needs to be a powerhouse in the Midwest, whether it be manufacturing, dairy, biosciences or mining equipment - Wisconsin has it all. But it seems we have forgotten the old 20-80 rule that 20 percent of our good businesses will provide 80 percent of our jobs and revenue. We must continue the great Wisconsin tradition to make it, mine it and milk it.

Cap-and-trade, also known as emissions trading, is a program to control pollution by providing economic incentives to businesses for reducing their pollutants. If the Wisconsin Legislature decides to embrace cap-and-trade and burden our businesses and our consumers, I am fearful that this will be the most lucrative governmental taxing scheme that we have ever seen. And to make it worse, government would soon become reliant on the revenue, and the original mission of helping our environment would become secondary.

Wisconsinites must begin to see that there is a difference between cap-and-trade, or "being green," and becoming energy efficient. Yes, we can become more energy efficient without sacrificing our economy. Think about it, and quickly!

State Rep. Mark Honadel (R-South Milwaukee) represents the 21st Assembly District, which includes the cities of Oak Creek and South Milwaukee and two wards of the City of Milwaukee. He serves as the Republican ranking member on the State Assembly Labor Committee.

Earlier this year, President Barack Obama and other political leaders in Washington, D.C., publicly admonished companies for - in some cases - overly lavish business trips.

These pronouncements unintentionally demonized legitimate business travel, which has had a devastating impact on tourism economies and the accompanying jobs throughout the country.

While a city in the nation's heartland such as Milwaukee has not seen the dramatic crash of familiar resort destinations, 70 percent of our $2.6 billion tourism economy (and 66,000 supporting jobs) comes from visitors on business travel or meetings and conventions and we're feeling the pain with hotel occupancies down in the low double digits over pre-recession levels.

Media reports of the president and federal government officials demonizing legitimate business travel earlier this year are still having a significant adverse effect on our economy. The Department of Labor reported that nearly 200,000 travel-related jobs were lost in 2008 and another 247,000 positions are expected to be cut by the end of this year

A new study by Oxford Economics and funded by the U.S. Travel Association and the Destination & Travel Foundation, makes a compelling bottom line case on the ROI of business and incentive travel.

Among the key findings:

• Executives cited customer meetings as having the greatest returns, in the range of $15-$19.99 per dollar invested.
• Executives identified the average return on conference and trade show participation to be in the range of $4-$5.99 per dollar invested.
• Companies would need to increase an employee's total base compensation by 8.5 percent in order to achieve the same affect of incentive travel, according to the executives.

Business meetings and conventions are important lifelines to learn new information, grow businesses and meet with colleagues face-to-face. It's important that we work to protect beneficial meetings, conventions and incentive travel because it makes good business sense. We need the president and our elected officials to again use the bully pulpit and take the lead on this.

Working together, we can stop the hemorrhaging. The message we need our political leaders and all of us working in the hospitality and tourism industry to state is quite simple: start traveling. Please spread the message!

David Fantle is vice president of public relations at Visit Milwaukee.

I oppose the nanny state.

During May 2006, I wrote the following about a bill the governor signed into law that I voted against that forces parents to put their children under the age of eight in booster seats when they ride in motor vehicles.

"With a stroke of his pen, the Governor expanded the nanny state in Wisconsin by creating an enforcement and logistic nightmare. Under previous Wisconsin law, parents could decide whether their children between the ages of four and eight should be placed in booster seats or seat belts. That was plain old common sense. Under the new law there are several changes. How are police supposed to enforce this? Will every officer and squad car now be equipped with a scale and a tape measure to determine whether Mom and Dad or Grandpa and Grandma are breaking the law? How are parents expected to know or remember the requirements? Will they have to keep a copy of the law in their glove compartment or tucked under the visor? What are large families to do? Baby seats and booster seats are rather bulky. Imagine trying to squeeze two, three, or four of them into one of the new smaller size cars or vans."

I added the following in an August 2007 column:
"The many separate requirements by weight and height for each age category are confusing. Burdens are placed upon large families and carpoolers. Booster seats can be expensive and so can the fines for law violators."

As New York Yankee Hall of Famer Yogi Berra once said, "It's déjà vu all over again."

The state Senate has approved Senate Bill 162 (SB 162) that would require children 10 years and younger on boats to wear flotation devices. The bill originally proposed covering children 12 and under. However, an amendment approved by the state Senate lowered the age requirement to 10 and under.

SB 162 stipulates that "a person may not operate a recreational boat that is less than 26 feet in length unless, during the time the boat is under way, every person on the boat who is 10 years old or younger is wearing a personal flotation device (PFD) or is in a cabin space or below the deck."

What does "under way" mean? According to SB 162, "A recreational boat is under way if it is not aground, is not anchored or moored, and is not made fast to a structure or to the shore." In other words, just about any time a youngster is on a boat, a life preserver must be worn.

There is more.

The state Senate approved Senate Amendment 1 to the bill that the Wisconsin Legislative Council writes, "provides a specific penalty for a violation of this PFD requirement by the operator of the specified recreational boat. Any person violating this mandatory PFD provision must be issued a warning notice instead of a violation for the first offense. Any person subsequently violating the mandatory PFD provision must forfeit not more than $50 for the second offense and must forfeit not more $100 upon conviction of a third or subsequent offense."

SB 162 expands current law that simply requires each boat have on it a personal flotation device for each person riding in or on the boat.

Follow along to see if you have heard this song before. The government intervenes, assuming the role of big brother. New rules and regulations are established. Violators are subject to fines.

Do you see a pattern? It’s called booster seats for boats or, the nanny state strikes again.
Everyone supports child safety. However, the state once again takes on the role of thinking for people and the role of decision maker. The state should stay on the sidelines, in this case the shoreline, and allow parents to think for themselves and make common sense decisions about their children’s safety.

State Sen. Mary Lazich (R-New Berlin) represents Wisconsin's 28th Senate District.

The entire Wisconsin banking community is pleased that the banking regulatory system worked as designed last Friday when the Department of Financial Institutions closed Bank of Elmwood, Racine.

Importantly, depositors were protected as there was a seamless transition to Tri City National Bank of Oak Creek. Wisconsin's banking community expresses its support to the affected employees, directors and shareholders of the Bank of Elmwood. 

Until last Friday, only 16 states, including Wisconsin, hadn’t experience a bank closure since Jan. 1, 2008, which tells us two things:  The conservative lending culture of Wisconsin banks has served our state and industry well; but also that economic conditions across Wisconsin are weak and because of that fact, banks will continue to face challenging times.

Banks didn’t cause this recession as so many believe. We also were not bailed out as so many claim. We didn’t make irresponsible subprime loans to people who didn't have the capacity to repay them. We didn’t speculate in investment instruments we didn’t understand, like credit default swaps and other derivatives. And we are doing our best to meet the demand for loans to qualified borrowers.

We understand our vital role as the foundation of economic development and job growth in every corner of Wisconsin and our nation. We want to make prudent loans to businesses in the communities we serve because if those businesses don’t succeed, neither will we.

We know that many people are angry and looking for someone to blame. But targeting that anger at banks is misplaced and counterproductive toward achieving an economic recovery.

Specifically, too many elected officials are leveraging the public's confusion over who caused this crisis to attack banks and push legislative agendas that will make a bad situation worse for our industry and, ultimately for the businesses and consumers we serve.

There is already a lengthy list of obstacles beyond our control impeding our ability to do what we do best; make loans to qualified businesses and consumers. Lawmakers need to consider the consequences of adding more burdens and costs on the very institutions they need to help rebuild our nation’s economy.

Whether we are local, regional or national banks, we rise and fall together. WBA and CBW pledge to redouble our collective efforts against legislation and other regulatory proposals that are only counterproductive to the banking industry’s ability to help with an economic recovery.

This joint statement was written by Wisconsin Bankers Association president and chief executive officer Kurt Bauer and Community Bankers of Wisconsin president and CEO Daryll Lund.