Milwaukee Biz Blog

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.

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.

In 2008, the Urban Economic Development Association (UEDA) focused its seventh annual community development summit on transportation, jobs and regional cooperation. One year later, the issue remains and a solution has yet to be determined.

Much has happened over the past year illustrating the urgent need and overwhelming support for investing in a regional infrastructure to oversee bus and rail transit in southeastern Wisconsin: a referendum was passed in Milwaukee County demonstrating the support for a dedicated sales tax for transit, parks and emergency medical services (EMS); the temporary study regional transit authority (RTA) completed their study and submitted their recommendations to Gov. Jim Doyle and the state legislature; RTA enabling legislation was included in Gov. Doyle’s budget bill; and although not what was originally proposed, an RTA for the Kenosha-Racine-Milwaukee (KRM) commuter rail was created and funded as a result of the 2009-2011 state budget.

Most recently, progress was seen as Gov. Doyle announced new compromise legislation to create a truly regional transit authority for Kenosha, Racine and Milwaukee to govern and fund bus and rail transit in the three-county region. We are encouraged by this leadership in advancing a truly regional transit infrastructure that encompasses both bus and rail transit throughout Kenosha, Racine and Milwaukee.

Additionally, we are pleased to see that the governor honored Milwaukee County’s referendum by including property tax relief and a sales tax of 0.5 percent for transit. The framework detailed by Gov. Doyle will allow Milwaukee County to immediately address the urgent need for funding its local bus transit, while phasing in Racine and Kenosha with the long-term goal of consolidating into one regional authority. As an added benefit, the plan outlined by Gov. Doyle strengthens the KRM’s application for the Federal Transit Administration New Starts funding by outlining our local plan for a regional framework and dedicated funding.

The momentum created by this recent development must not be lost. As a community we have worked hard to show our elected leaders the importance of seeing this item through to completion, with a real solution that moves our residents from home to work and school, strengthens southeastern Wisconsin’s infrastructure and positions our region as a strong competitor with our peers. It is with this momentum in mind that UEDA has decided to revisit the urgent, and unresolved need for regional transit in southeastern Wisconsin. Though the conversation has intensified over the past year, there is still much work to be done. This year’s community development summit will deliver a call to action, to make regional transit a reality for southeastern Wisconsin. We urge you to be a part of the conversation, and not let this momentum fade.

For more information on Urban Economic Development Association of Wisconsin’s eighth annual community development summit, or to register please visit www.uedawi.org.

Bill Johnson is executive director of Urban Economic Development Association of Wisconsin, a nonprofit membership association comprised of over 100 nonprofit, corporate and individual members dedicated to the professional development of individuals and groups working in community and economic development. Its mission is to support housing and economic development initiatives that revitalize Wisconsin communities.

Gov. Jim Doyle recently announced that he will not be running for a third term as governor. In his announcement, he promised that he would continue to work for the people of Wisconsin.

He said he would have an aggressive agenda over the next 16 months, focusing on education, green jobs, the economy and health care. "I believe without the politics and the campaign we can get a lot done over time. This moment in history will not be wasted."

We all need to thank Gov. Doyle for his 20 years of tireless service to the people of Wisconsin, first as attorney general, and then as governor through some rather challenging times with creativity and concern for the citizens of Wisconsin.

Though he will be sitting out the next election, the governor's job is far from over. Hopefully Doyle will keep his promise of not serving out the remainder of his term as a lame duck governor, and to help the economy of the entire region of southeast Wisconsin by honoring the voices of Milwaukee County voters who approved a 1-percent sales tax in last year’s elections. The sales tax would be vital to restore the transit system of Milwaukee County and providing a strong base for any future RTA (regional transit authority), including the KRM (Kenosha-Racine-Milwaukee) rail system.

RTA aside, the need for strengthening Milwaukee County Transit System is growing more urgent as time passes. Without a dedicated source of funding for the transit system, 40 percent of the routes could be slashed in the near future. This would affect up to 60,000 workers who would no longer have a way to get to their job. And without workers, employers would have untold difficulties in producing and selling their products and services. Needless to say, this would have a devastating effect on the local economy, and unnecessarily prolong the economic woes that Milwaukee County and the State of Wisconsin are trying to work its way through.

Besides the necessity of the transit system to keep our economy moving, the sales tax, as passed in last year’s referendum, would allow for $67 million in property tax relief. That much money staying in the pockets of property owners would allow them to spend it as they wish, adding to the economic recovery for the entire region.
The sales tax would also have the benefit of preserving our parks and emergency medical system, which would only add to the appeal for companies to move here and keep the ones that are already here.

Why the governor vetoed the sales tax in the first place when none of these funds would come out of the state coffers is a head scratcher. Nevertheless, restoring the sales tax would be a great "do-over," leading to a better future for Milwaukee county and the businesses that operate within it.

Chris Liebenthal is a human service worker for Milwaukee County and chair of Milwaukee County First.

An attorney is trained to understand that witness statements do not equal the facts. Similarly, Department of Transportation (DOT) estimates do not equal facts. They are opinions and, if politically motivated, are biased.

Let's look at the facts: In a 2008 letter to Sen. Jeff Plale, the DOT estimated that the cost of replacing the Hoan would be $220 million. Now, after one year of deflation, the DOT has inflated the Hoan repair costs to $240 million, as reported in the Milwaukee Journal Sentinel on Monday. To put this into perspective, the entire Marquette Interchange project cost over $800 million. So, the DOT is estimating that the cost to repair an existing bridge is more than one-fourth the cost to build the Marquette, which included the construction of 20 new bridges, some as tall as the Hoan. The DOT also believes, according to Monday's article, that the cost to simply re-paint the Hoan will cost $40 million.

The DOT also gives "facts" from both sides of its mouth. In December of 2002, DOT officials concluded that the Hoan could not accommodate a bike lane because the 6 lane bridge with shoulders was nearing capacity and could not be reduced to four lanes. Now, in 2009, the DOT is proposing a four-lane boulevard with no shoulders and a roundabout to accommodate the 46,000+ daily traffic count. Imagine 120,000 trucks each year trying to navigate a roundabout. Trucks will likely take both lanes to navigate turns, if it's even possible at all.

More facts: the original Marquette Interchange was planned at $1.4 billion and included the replacement of ramps and the 794 connector to the Hoan. After robbing money from the transportation funds to balance deficit budgets, the current administration required DOT to reduce the scope of the Marquette Interchange to approximately $800 million instead of the $1.4 billion by cutting out this connector work. It's no wonder they got done early and under budget as DOT Secretary Frank Busalacchi touted; they did less.

Finally, going outside of the normal transportation planning process, the DOT arrogantly hired HNTB to plan alternatives to the Hoan and its connectors without consulting with the communities this would impact. Is it because the DOT no longer had the needed money to re-deck not only the bridge but also the work that had been cut out of the Marquette Interchange?

Fact: The Southeastern Wisconsin Regional Planning Commission (SEWRPC), the federally designated planning agency for this region, has completed and published its official report for transportation planning through the year 2035, which retains the Hoan Bridge and the 794 freeway as part of an important transportation corridor. This report followed the normal channels with DOT experts taking factual information gained from traffic counts, holding open meetings and getting all the information to form these recommendations.

So, for those who don't want to be irresponsible by not getting the "facts" when planning for the Hoan Bridge, let's include all of the facts. The DOT has done an end-run around the normal planning process and appears to be providing inflated estimates that advance an agenda. MMAC (Metropolitan Milwaukee Association of Commerce) sent a letter to the Governor asking to study this new agenda. My office did check the facts regarding ownership of the land below the Hoan. It was not surprising to find that most of this land is owned by the City of Milwaukee on both the north and south portions of the bridge. The city also owns much of the land used by the Port of Milwaukee that relies heavily on the Hoan for ingress and egress.

My office will continue to feed oxygen to this fire by asking questions about the reason for the HNTB study. It is notable that the DOT is not solving their deficit surrounding the Zoo Interchange or the I-94 corridor. Perhaps DOT thought that the south shore communities would be the least likely to object. If so, I am hopeful that the Coalition to Save the Hoan will show the DOT they were wrong.

Milwaukee County Supervisor Patricia Jursik represents the county's Eighth District.

Milwaukeeans and the few million other residents of the region should let out a collective three cheers for Gov. Jim Doyle for his leadership and vision on high-speed rail in Wisconsin.

The governor deserves credit because decreasing travel times and increasing train frequencies on the current Chicago-Milwaukee Amtrak service and inaugurating 110 mph inter-city service between Milwaukee and Madison will have a dramatic, positive economic impact on Milwaukee and the region.

In essence, these improvements will shorten the distance between Milwaukee, Madison and the vast Chicago metropolitan area, and all three regions will become more economically integrated allowing each region to piggyback on the advantages and strengths of the others. These regions will form a mega-region offering a tremendous mix of commercial, educational, cultural and entertainment activities.

For example, it will become significantly more convenient to live in Milwaukee and work or conduct business in Chicago or Madison. In particular, it will become easier and more affordable to live in Milwaukee and commute to downtown Chicago than it is to live in many Chicago suburbs and commute to downtown Chicago. The effect on residential real estate will be positive, and the housing market in downtown Milwaukee and nearby neighborhoods will experience a surge of demand.

A high-speed rail link will also make it easier and quicker to travel from Chicago to the Madison campus of the University of Wisconsin than to travel from Chicago to the University of Illinois campus at Champaign-Urbana, Illinois. The great educational institutions of Madison, Milwaukee and Chicago will all be closer together.

Likewise, Milwaukee's cultural and entertainment venues stand to benefit from closing the distance between Milwaukee, Madison and Chicago. It will become easier and quicker to travel from Chicago and Madison to downtown Milwaukee to enjoy dinner and a show or to visit our great museums and cultural attractions. It will also become easier and quicker to watch the Packers play the Bears at Soldier Field than at Lambeau Field. The seats of Soldier Field will be filled with many more green and gold clad fans, and we may have to rename the stadium “Lambeau South.”  

Last but not least, Mitchell International Airport (which is served by the Chicago-Milwaukee Amtrak route) will also stand to benefit from closing the distance between Milwaukee, Chicago and Madison. Mitchell International will be 50 minutes from downtown Chicago - less travel time than an auto trip from downtown Chicago to O'Hare International Airport at rush hour.

It is frequently said that "time is money," and Gov. Doyle's high-speed rail initiative will offer travel time savings to hundreds of thousands of citizens who currently travel between Milwaukee, Chicago and Madison, and it will open the door for new commercial activity, job creation, population growth, and economic development in Milwaukee.

Very simply, this important infrastructure investment offers the potential to achieve a paradigm shift in Milwaukee's economy by placing Milwaukee in the center of the Milwaukee-Chicago-Madison region, and I believe that shift will create a buzz of development and growth like we've never seen before.

Thank you, Governor!

Alderman Robert Bauman, a longtime transit proponent, represents Milwaukee's 4th Aldermanic District and is chair of the Common Council's Public Works Committee.

Just as many of us plant our summer flowers and water our gardens, we know that we will also have the unpleasant job of weeding. And like these weeds, this will be our second summer when we will have to deal with those that have an agenda to remove the Hoan Bridge, a bridge named for former Milwaukee Mayor Daniel Hoan, who had the vision of connecting the north and south sides of our great city and county.

While many of us enjoy summer festivals under this great arch, Alderman Robert Bauman of Milwaukee plans to introduce a Common Council resolution in July asking the state to build a new, smaller Hoan Bridge that is only 40 feet tall, compared with the current 125-foot-tall freeway.

Such a bridge would, of course, require a lift bridge or other device to permit shipping to enter our ports.

The Hoan Bridge has itself become part of the landscape of our city on the lake; this arch is our grand entry hall to the Milwaukee Art Museum Calatrava wing. The Hoan is a young bridge that has many years remaining in its mighty life expectancy.

There is an agenda being floated by some to change course before this bridge can be re-decked for its next two decades of life.

At the county level, I have requested that the County Board's Transportation and Public Works Committee schedule this item on our September calendar to address these objectives.

After all, it is Milwaukee County, not the city, which services the Hoan. I hope my colleagues on the board hear from our citizens on the importance of maintaining the Hoan.

For my part, I have already indicated that I will not support selling county land for expansion of the Zoo Interchange until our current assets, like the Hoan Bridge, are maintained.

Our South Shore communities have experienced billions of dollars of development since the Hoan Bridge was built. I have received from the Southeastern Wisconsin Regional Planning Commission (SEWRPC) a footprint for the extension of the 794 freeway to Ryan Road and am now calling on the Department of Transportation to discontinue studies on demolition of the bridge and instead begin to fund the completion of this South Shore asset.

If the state wants to know where it can get funds to pay for the re-decking of the bridge and the extension of the 794 freeway, it can come from a toll road from the Wisconsin/Illinois state line to the county line.

My constituents understand the need to collect money from snow birds that earned their pensions here but no longer pay state taxes and only return to enjoy our parks and festivals. Many of these individuals visit Milwaukee County from places that already charge tolls to tourists from Wisconsin.

Milwaukee County Supervisor Patricia Jursik represents the county's Eighth District.

Some would think at a period of deep recession that this is not the time to push for a Regional Transit Authority (RTA). The truth is, we can’t afford to wait. A vibrant transit network is a fundamental part of a successful and sustainable economy.

Racine has an unemployment rate of 17 percent. Just like the unemployed in Milwaukee and Kenosha, they are our families, neighbors, people we go to church with. They are taxpayers and people who purchase goods and services, which make our local economy grow.

We believe that this is why the push to create an RTA has garnered the broadest coalition for any purpose that Racine and the region has ever seen. What makes this coalition unique? Labor groups and businesses, corporations, environmental groups and faith-based organizations, merchants and restaurants not only agree but are working together to support and advance a Regional Transit Authority.

We believe that this is our best, and possibly only, immediate opportunity to ignite a sustaining spark that will get people to work and bring our economy back to life. We recognize that an RTA would garner millions of federal dollars to invest in transit that will link us to the global economy of Chicago, and provide access to more than a million jobs along the Milwaukee, Racine, Kenosha and Chicago corridor.

The return on this investment is real and it is substantial, to the tune of billions of dollars in economic benefits over the next two decades. The obvious is the infrastructure of the rail itself; more importantly is the development that will follow along the corridor. Our corporations will be more successful because they are able to pull from a larger pool of workers with special skills and make their companies more attractive to new hires.

Our unemployed will be able to travel the corridor between Milwaukee and Chicago to seek opportunities beyond our community. Everyone in Racine County will benefit by more tourism and sales as Racine’s businesses and cultural venues are opened up to more than 2 million people near the train stations along the corridor.

And the reverse is true. Citizens of Racine will be able travel to our surrounding cities for larger cultural, educational and entertainment venues.

We are at a pivotal point where we must decide if we want to participate in the global economy or be left behind as other regions invest in their transportation system and gather up the jobs, businesses, talent, development, private investment and the billions of dollars in federal transit funds.

Through the extraordinary efforts of our legislators, several plans have been created that would keep an RTA and a modern transit network moving forward in the state budget. Although none of the plans are perfect, with the realities of the state budget and resulting political landscape, we must move forward with a plan we can build on.

A modern transit network should include enhanced buses and KRM commuter rail in Milwaukee, Racine and Kenosha. We would hope that our Legislature recognizes that dedicated funding and integrated buses and trains are needed in the entire corridor to keep people linked to job and business opportunities inside and outside our transit system boundaries. If we do nothing, transit services in Racine, Milwaukee and Kenosha will be cut substantially, harming workers and employers alike.

The current Assembly plan creates the foundation for a truly regional RTA. Under the current Senate plan, Racine and Kenosha buses are left out, and the KRM Commuter Rail project will remain on the shelf for lack of an acceptable regional transit plan that the Federal Transit Administration calls for.

Almost every senator or assembly person in our Capital has run their campaign on a "jobs" platform. Now, the RTA and the KRM commuter rail have given them the chance to walk the walk.

As the budget and the RTA proposal proceeds, we know that our legislators are working hard for us. And, as the saying goes, "The devil is in the details." The coalitions have come together and spoken and now the imagination and hard decisions must come from our state representatives. We will continue to prod and support our Legislature.

The time is now to make a truly regional RTA a reality so we can get to work creating jobs, sparking our economy to life and building a cleaner more prosperous future. We believe that the RTA, and the KRM Commuter Rail would be a win for jobs, for families and neighborhoods, small businesses and major corporations, the environment and for our future. Which, in the end, makes it a win for Wisconsin.

This blog was co-written by Jim Eastman, president of Merchants Moving and Storage Inc., and Jeff Van Koningsveld, president of IBEW Local 430 and co-chair of the Racine County Labor Coalition. They are the co-chairs of the Racine Transit Task Force. For more information about the Racine Transit Task Force, contact Kerry Thomas at Transit NOW at (262) 246-6151.

You may not fully sense it, but the State Assembly took action last week that could and should resolve many years of infighting and paralysis on major regional projects. When it comes to parks and transit, there have been decades of debate over regional cost sharing, new governance models, and tough questions of who pays and how much is enough. In Milwaukee County, and the entire metropolitan area of southeastern Wisconsin, there are two areas of public policy that have captivated the voting public, the media, and other stakeholders in the community: transportation and parks.

Leaders at all levels of government: Chairman of Transportation and Public Works Michael Mayo, County Supervisor Chris Larson, Senators Lena Taylor and Jeff Plale have stood up to offer solutions and urged their colleagues to move forward on these issues. These leaders are backed by numerous community leaders, neighborhood associations, and influential civic organizations that have added their voices to the debate.  All of us, despite our differences from time to time, are shoulder to shoulder in trying to build a regional framework for important public priorities. Rather than pit one local unit of government after another, or endlessly point fingers between the Capitol and City Hall, we have done our best to move forward with positive solutions.

With the state budget currently being worked on in Madison, now is the time to make some decisions.  The following points help set the right framework for upcoming budget votes:

1.  Transit and modernizing our transportation system must be priority number one.  That means fix what you've got before you start new projects. The State Assembly version of the budget that passed last week includes a 0.65-percent sales tax option. Of that, up to 0.15 percent can be allocated to help pay for police and fire department costs throughout Milwaukee County. The remaining 0.5% must be used for transit. 
2. At a minimum, the Assembly actions would provide up to $65 million in property tax relief and completely remove the bus system from the tax levy paid by all homeowners and businesses in Milwaukee County. That's a huge step forward and would pave the way for commuter rail expansion and the city of Milwaukee's streetcar system.
3. We must not ignore the county park systems and the referendum voters that supported their funding. That means funding transit first, demonstrating we can provide property tax relief while lowering fares and expanding service for transit, then finding a solution that preserves our parks and expands recreational options into the rest of the 21st century.
4. However, transit must come before parks - (not instead of, but before). Politics and government involve tough work and setting priorities and making decisions. Ironically, the Parks People in recent years pushed hard for State legislation to take the Parks out of Milwaukee County hands and into an independent district that would have had the power to raise the property tax. Furthermore, most November referendum support on the 1-percent came in areas of the city of Milwaukee with strong Presidential turnout and frankly, outside of the Lakeshore most County Parks sit in suburban areas that voted against the sales tax.
5. Transit moves people who cannot drive or choose not to drive. Either way, transit riders contribute to the economy and help make this a great community to live, work and raise a family. They have taken it in the chin whether the devil is in higher fuel costs or petty politics. Enough is enough!
6. Transit is part of a metropolitan network of roads, trains, bike paths, and air and water ports.  Look at any thriving metro area in the United States, and you will find state-of-the-art public infrastructure:  airports, streetcars, high speed trains, and user-friendly connections so people are not forced into one option, or none at all. Schools, parks, shopping, hospitals, museums, convention centers will not grow, let alone survive, without upgraded transportation.
7. Citizens and taxpayers earn more money and enjoy a healthier quality of life when transit investments are expanded. In other words, we do this right and we get it done sooner than later, there will be future economic growth and more stable local government finances to replenish and sustain our great parks system.
8. People who want their cake and to eat it too cannot keep that diet going much longer. There are some in Milwaukee County who want the beautiful picnic, swimming, or day of golf but do not want to pay for anyone else's enjoyment but their own. And, with slight exaggeration, there are those on the County Board who want the benefits of a 1% tax increase without accomplishing the heavy lifting of voting on their own turf.

We have a one-time opportunity, despite a wicked economy and dangerous revenue projections, to help get something right. Let's deliver $65 million in property tax relief to Milwaukee County residents. Let's take the bus system off the property tax now and forever. Let's join with our regional partners in Racine and Kenosha to help build the economic infrastructure that brings more jobs to Wisconsin and a brighter future for our families.

And, let's send a collective message to the naysayers. We can do this, Milwaukee. No matter where we live, what our background, or how much money we have, when we work together, there is no stopping our progress. Yes we can Milwaukee.  Yes we will.

State. Rep. Josh Zepnick (D-Milwaukee) represents the Ninth District.

Despite the fact that the U.S. is Canada's largest trading partner and vice versa, northern border crossing conditions have sometimes been given short shrift. Today, in some places along the border, freight and travelers use outdated infrastructure in a post 9/11 world where security concerns have tended to slow cross-border movement.

Accordingly, suggestions have been raised on both sides of the border to improve passenger and trade flows between the two countries. The Seventh District's Great Lakes crossings, specifically the Detroit River crossings, are focal points of the growing debate on how best to improve the U.S.-Canada border.

U.S.–Canada border crossing policy
Over the last few years, the majority of U.S. border policies have focused more on Mexico and the flow of immigrants and illicit activity crossing the southern border into the U.S. The heightened attention on the Mexico border has been a concern both to Canadian officials and those whose economic interests depend on cross-border trade between our two countries. For example, automotive-intensive communities in Michigan and much of the surrounding region are especially keen to see border crossings made easier. Much of the fragile North American automotive industry continues to operate with highly inter-connected supply chains that traverse the border between the Midwest and Ontario.

Responding to these concerns, the Brookings Metropolitan Policy Program and the Canadian International Council held a forum recently on the challenges and opportunities to improve U.S.-Canada border policy and management.

Among the experts to speak at the Brookings forum, Christopher Sands of the Hudson Institute discussed his paper characterizing the U.S.-Canada border policies past and present and recommending a broad framework for improvement. Sands specializes in Canada, U.S.–Canada relations, and North American economic integration. He followed up his appearance at the forum with a meeting here at the Bank.

Sands divides the U.S.-Canada border into four separate traffic corridors. The Great Lakes Corridor sees the highest volume of automobile and truck traffic, most notably the crossings at Detroit–Windsor, Buffalo–Niagara, and Lake Champlain, which connects Montreal and New York City. All Great Lakes crossings see heavy volumes of what Sands calls "amateur" traffic, those who cross rarely, usually on vacation.

However, these Great Lakes crossings also provide infrastructure support for commercial goods and services to travel back and forth from both countries' manufacturing centers. The Michigan border crossings directly link the Great Lakes, where 28 percent of U.S. GDP is produced, and Ontario, where 41 percent of Canada's GDP is produced.

Sands' policy recommendations
Precision, decentralization, and consensus, Sands argues, should serve as the framework for future discussions on improving the border. Precision revolves around defining the specific problem and efficiently targeting and solving it. Decentralization refers to engaging local and regional stakeholders in the policy process while taking care not to stall the process by giving any party too much power. Canadian officials tend to agree more on border initiatives because most of the Canadian population lives near the border and is affected by border policy; they don't have the regional rivalries exhibited by the debates and issues seen in U.S. border cities and their inland counterparts. Consensus occurs when all levels of government agree on the future of the border and how it should be managed.

Michigan's aging infrastructure
Along the Michigan–Ontario border crossings, infrastructure issues have become pressing. Here, the Ambassador Bridge and the Detroit-Windsor Tunnel connect Detroit and the industrial Midwest with Windsor, Ontario, and Highway 401, which heads northeast through the major cities of London, Toronto, and Montreal. Combined with the Blue Water Bridge in Port Huron and the St. Clair rail tunnel just south of it, Michigan possesses some of the more important crossing points, making the state an important player in U.S.-Canada trade. As commercial and passenger traffic continue to cross the border in Detroit, added pressure has been put on infrastructure that is almost 70 years old and isn't equipped to handle current traffic volumes.
In recent years, federal, state, and local leaders in the U.S. have advocated for a new Detroit River border crossing approximately two miles south of the Ambassador Bridge that would be able to handle increased trade flows as well as implement post 9/11 security upgrades.

Adding to the campaign, the Canadian Minister of Transport, Infrastructure, and Communities has publicly stated that Canada's No. 1 infrastructure priority is the new Detroit River crossing. Currently, construction on the new bridge complex is scheduled to begin sometime next year, with the opening set for 2013. But first, Detroit and the state of Michigan have short- and long-term issues they must address. The land needed for the new bridge has not yet been purchased by the Michigan Department of Transportation; and critics argue that a new crossing isn't needed due to slowly decreasing traffic flows. Competing claims for attention have arisen as the Detroit city government and Lansing legislators attempt to agree on expansion and administration plans for Cobo Hall, the region's premier trade and convention hall, as well as how to contend with education budget deficits and recovery options for a poorly performing state economy.

Independent plans for a competing cross-border bridge in Detroit have further complicated the outlook.
Midwestern states along the northern border have keen economic interests in a national border that is secure, yet speedy. Because these interests are somewhat more diffuse throughout most of the remaining states, Midwestern residents would do well to take part in border-improving policy discussions.

Bill Testa is the vice president and the director of regional programs in the economic research department at the Federal Reserve Bank of Chicago. This essay was reprinted with permission from the author.