The 850 employees at the Chrysler Group's Kenosha engine plant will not be affected by the company's aggressive new plan to change its business model, cut its costs and eliminate 13,000 jobs.

Company spokesman David Elshoff will be spared from the job cuts by the Chrysler Group, which also plans to make a $3 billion investment in its power train program. That investment will include new facilities to build engines, transmissions and axles, he said.

A site to build the new power train systems has not yet been selected. That announcement will be made soon, but Elshoff declined to elaborate.

DaimlerChrysler AG's Chrysler Group today announced a three-year "recovery and transformation plan" that is designed to return the company to profitability by 2008.

The company also is taking steps to change its business model for the long run.

Chrysler will idle plants in Cleveland, Ohio, and Newark, Del., and cut shifts at plants in Warren, Mich., and St. Louis, Mo.

Chrysler Group president and chief executive officer Tom LaSorda outlined the plan at the DaimlerChrysler AG annual press conference this morning in Auburn Hills, Mich.

Dieter Zetsche, chairman of the board of management of DaimlerChrysler, said, "The Chrysler team worked out a comprehensive recovery and transformation plan using all resources within DaimlerChrysler. In addition to that and in order to optimize and accelerate the presented plan, we are looking into further strategic options with partners beyond the business cooperation partners mentioned. In this regard, we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler."

The plan's primary focus on costs, but the company also will make a $3 billion investment in new engines, transmissions and axles, setting the stage for Chrysler to launch a line of more than 20 all-new and 13 refreshed vehicle models from 2007 to 2009.

"There are two integrated parts to the plan," LaSorda said. "First, the Chrysler Group needs to solidify its position in the North American marketplace. In addition, the key to our long-term success will be our ability to transform the organization into a different company to achieve and sustain long-term profitability."

Former Wisconsin Lt. Gov. Margaret Farrow, Elm Grove, the founder and president of the Waukesha County Action Network (WCAN), is the guest commentator in the new Wisconsin Biz Blog today. Farrow calls for a new educational partnership to spur job growth in southeastern Wisconsin. Read her entry in the Milwaukee Biz Blog at www.biztimes.com.

Gov. Jim Doyle on Tuesday unveiled his $57.7 billion biennial budget, an increase of more than $4 billion from the 2005-07 budget. The governor's budget includes a $1.25 increase in the per pack cigarette tax, an additional $225 million for the UW System and a property tax levy increase limit for local governments of four percent or the rate of economic growth, whichever is higher.

Doyle's budget includes a $1.8 billion health care expansion, which would include an expansion of BadgerCare to cover 71,000 low-income, single adults and to allow parents to purchase coverage through the program for their children, regardless of income. Doyle plans to pay for that plan with the cigarette tax increase, a new 1 percent assessment on net hospital revenues and a $175 million transfer from the state's malpractice fund.

For public schools Doyle wants to continue providing two-thirds funding and he wants to repeal the qualified economic offer for teachers.

Doyle also wants to spend $4.6 billion on road and highway projects during the next two years, a 8.7 percent increase. To pay for the increase, he has proposed a 2.5 percent assessment on oil company earnings and a $20 increase in vehicle registration fees. His budget includes $241 million for the reconstruction of the I-94 north-south corridor between Milwaukee and the Illinois state line, $24 million for the Zoo interchange reconstruction project and $1 million for the Kenosha-Racine-Milwaukee commuter rail project.

For more information about the budget, read the coverage by WisPolitics.com,  a media partner of Small Business Times.

If trends in state, federal and county funding continue the Milwaukee County Transit System likely will need to make "severe" cuts in service and will have to raise fares significantly by 2010, according to the Southeastern Wisconsin Regional Planning Commission (SEWRPC).

At the request of Milwaukee County, SEWRPC is developing a short-range plan for the Milwaukee County Transit System (MCTS) for 2007 to 2011.

MCTS depends heavily on state funding, which in recent years has not kept pace with inflation, according to SEWRPC. The transit system has increased fares and reduced service in recent years.

In recent years MCTS has used federal funds, that are intended for capital projects, for operating expenses. Without increases in state transit funds MCTS will deplete its reserve of federal funds and will have to make service cuts of up to 35 percent by 2010, according to SEWRPC.

More information about the SEWRPC report can be found at www.sewrpc.org/milwcotdp.

Merge Technologies Inc., which does business as Merge Healthcare, a West Allis-based medical imaging software and services company, today announced a new partnership with HBO Middle East (ME) to deliver radiology solutions throughout the Middle East.

As part of the agreement, HBO ME will distribute Merge Healthcare's PACS, clinical applications, connectivity products and other solutions throughout the region. The two companies will work together to service end-user health care needs.

Merge Healthcare and HBO ME will work jointly towards offering customers in the GCC region, which includes Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates, Oman, Qatar and Yemen.

"The strength of Merge's offerings lies in their ability to provide customers with truly unique solutions that are clinically advanced and tailored to meet their needs and environment," said Eli Chedid, president of HBO ME.

"We are very pleased to be working with HBO ME in the Middle East," said Jacques Cornet, president of Merge Healthcare EMEA. "Merge Healthcare is firmly committed to improving patient care through the development and delivery of healthcare IT solutions that directly address the different needs of each healthcare practitioner. In the Gulf countries, HBO's experience and knowledge of regional needs provide an important foundation to accomplish this goal."

Journal Communications Inc. today reported fourth quarter net earnings of $23.4 million, or 33 cents per share, up from $16.7 million, or 23 cents per share, in the same period a year ago.

The parent company of the Milwaukee Journal Sentinel reported quarterly total revenue of $186.6 million, up from $161.8 million a year earlier.

For the full year, the company reported net earnings of $64.4 million, or 89 cents per share, compared with $66.2 million, or 88 cents per share a year ago, and its total revenue grew to $671.9 million from $624.0 million in 2005.

"During 2006 we executed a number of key strategies that sharpened our focus on our core media businesses and position us for the future expansion of our traditional and new revenue platforms and online initiatives," said Steven Smith, chairman and chief executive officer of Journal Communications. "We announced an agreement to sell our Norlight Telecommunications business and executed a very successful integration of three television stations whose assets we acquired in December 2005. The achievements of these stations in their first full year with us exceeded our high expectations, reflecting our strong integration efforts and a focus on driving operational results.

"Overall, Journal Broadcast Group delivered an exceptional financial performance, with every television and radio market posting increases in both operating earnings and margin. Although our publishing group experienced an unprecedented decline in automobile advertising revenue and a revenue reduction for credits to be issued toward 2007 advertising, it successfully introduced numerous Web-based initiatives and grew its distribution and commercial print businesses in 2006. Additionally, at the daily newspaper, interactive revenue increased 34.3 percent to $9.5 million. Throughout the year, we maintained strict cost control across all of our businesses," Smith said.

Fair Wisconsin has compiled a list of more than 130 Wisconsin employers that offer domestic partner health insurance.

Wisconsin Gov. Jim Doyle announced he will include a request for state employee domestic partner benefits in the state's 2007 budget.

The list of employers that provide such benefits is posted at www.fairwisconsin.com/news/dpupdate.html.

"Our report demonstrates that offering domestic partner benefits is a mainstream business practice," said Joshua Freker, Fair Wisconsin's interim executive director Joshua Freker. "Whether it's Aurora Health Care in Milwaukee, Edward Kraemer & Sons Inc. in Plain or Kimberly-Clark in Neenah, Wisconsin companies from diverse sectors understand there's nothing controversial about trying to attract and retain the most talented and innovative workforce."

Nationally, more than 9,000 employers and 265 of the Fortune 500 companies offer them, according to the organization.

American Security LLC of St. Paul, Minn., has acquired Milwaukee-based Janus Security Services.

The acquisition enables American Security to expand its footprint in the Milwaukee market.  _"We are excited about this acquisition and its implications for our long-term growth strategy," said Steven Klein, president and chief operating officer of American Security. "We acquired Martin Security (in Madison) in 2004 and see the addition of Janus Security as an important step in expanding our service offerings in Wisconsin."

American Security has security experience in multi-tenant commercial, industrial, governmental, patrol, parking security and critical infrastructure.

Janus employs 55 security officers in Milwaukee and specializes in governmental, high-rise apartment, parking, industrial, patrol and alarm response services.

"Janus has a long history of providing quality service and we look forward to building upon their work in this market," Klein said.

American Security is a subsidiary of Marsden Holding LLC, a privately held facility and security services organization comprised of eight companies and 7,000 employees.

Milwaukee County Supervisor Marina Dimitrijevic, who represents the city's near south side and Bay View neighborhoods, announced this week the launch of "Green Print," an environmental and conservation initiative for the county.

"Higher energy costs have put a major strain on departmental budgets within the county, which owns more than 800 buildings. Many of them have not been updated in decades," Dimitrijevic said. "Modernizing the way we operate will pay dividends to our community over the long-term. Operating more efficiently will help preserve resources for future generations."

Dimitrijevic's plan includes several components, including: creating a director of sustainability position to oversee current and future energy efficiency and eco-friendly initiatives and help county departments comply with the Green Print; retrofitting county buildings with high-performance, energy efficient technology; requiring all county departments to perform an internal audit of ways to improve energy efficiency; directing the director of Public Works to purchase hybrid and alternative fuel powered vehicles; turning unused parkland back into native grassland and prairie reserve areas, which would require no maintenance or the burning of fossil fuels; managing storm runoff from county facilities and placing recycling containers in all parks; examining the potential use of "gray water" where treated water may not be needed; requiring that all county-supported construction projects meet Leadership in Energy and Environment Design (LEED) standards by 2008; and exploring the use of renewable energy sources such as wind and solar energy to power county buildings.

"We have an opportunity to improve the efficiency of our operations, save the taxpayers money and stimulate the local economy by partnering with businesses for supplies and services," Dimitrijevic said.

The Green Print plan also has the support of supervisors James White, Gerry Broderick,

Roger Quindel and Willie Johnson Jr. and board chairman Lee Holloway.

"Rising energy costs currently straining the county's budget can easily be lowered through these conservation efforts. It truly is a win-win, with fiscal and environmental benefits," Dimitrijevic said.

Midwest Airlines will soon launch "MyMidwest," a new in-flight magazine for its passengers.

The new publication, produced under contract by Ink Publishing, will be carried aboard all Midwest flights beginning March 1.

"Our new magazine reflects our continuing efforts to make our customers' top-rated onboard experience even better," said Scott Dickson, the company's senior vice president and chief marketing officer. "Passengers will enjoy a larger magazine filled with engaging feature articles, useful guides to our destinations and expanded onboard service information, packaged in a fresh, new design."

Dickson explained that the name "MyMidwest" reflects the unique ownership the airline's customers feel for the company's brand and their growing sense of community as Midwest Airlines' parent company, Midwest Air Group Inc., resists a hostile takeover bid by AirTran Holdings Inc.

Midwest said the magazine is among the enhancements to the airline's onboard product in 2007.

Jan Wade, a television broadcaster whose experience includes senior positions at leading TV stations in six different markets, is joining Hearst-Argyle Television as president and general manager of Channel 12 WISN-TV, the ABC affiliate in Milwaukee.

Wade has served since 1994 as president and general manager of WATE-TV, the Young Broadcasting-owned ABC affiliate in Knoxville, Tenn. Milwaukee is the nation's 34th-largest TV market; Knoxville is the 60th.

Wade succeeds Frank Biancuzzo, who is returning to Hearst-Argyle's New York headquarters as a senior vice president/group head.

"Jan's rich experience in general management as well as in programming, operations, marketing and promotions make her an excellent choice to succeed Frank and to help carry on the success WISN-TV has enjoyed as one of America's top-rated ABC affiliate stations," said David Barrett, president and chief executive officer of Hearst-Argyle Television. "She understands the vitally important role a leading local TV station plays, on-air and online, as a provider of local news and information, and as an active citizen in the community."

Channel 12 is a media partner of Small Business Times.

The BizTimes Stock Index rose 1.13 points to close at 182.61 Tuesday, and local stocks surged upward again in early morning trading today. U.S. stocks rose and the Dow Jones Industrial Average hit a new record high this morning, as investors reacted to comments from Federal Reserve Chairman Ben Bernanke who said inflation appears to be moderating. That eased investor concerns that the Fed might raise interest rates later in the year. Locally, the largest advancers this morning were MGIC Investment Corp. (up $1.71 to $66.95), Johnson Controls Inc. (up $1.55 to $96.87), Joy Global Inc. (up $1.48 to $47.58) and Bucyrus International Inc. (up $1.24 to $50.68). The largest local decliners this morning were Ladish Co. (down 17 cents to $40.81) and Johnson Outdoors Inc. (down 6 cents to $18.20). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.