In Washington, D.C., House Democrats and President-elect Barack Obama on Thursday unveiled some of the details of an $825 billion economic stimulus package over two years as a plan to respond to the loss of 2.6 million jobs in 2008.
The plan calls for $550 billion in new spending and $275 billion in tax relief.
The plan would provide businesses with tax cuts for depreciation to encourage them to invest in new plants and equipment. Businesses also would be able to write off current losses against the past five years of tax returns.
Obama's inauguration will take place Tuesday.
On Wall Street, the stock market fluctuated wildly this morning, as investors reacted to a series of news reports and data.
The U.S. Treasury announced will throw $20 billion more in bailout funds to Bank of America Corp. Bank of America reported a fourth-quarter loss of $1.79 billion, or 48 cents a share, on escalating credit costs, including additions to reserves, and significant writedowns and trading losses in the capital markets businesses. The company's latest deficits stemmed from previously undisclosed losses from its Merrill Lynch & Co. acquisition.
Meanwhile, the Federal Reserve Bank reported today that the output of the nation's factories, mines and utilities plunged 2.0 percent in December. Output has fallen in four of the last five months.
The Consumer Price Index increased just 0.1 percent in 2008, the smallest increase in 54 years, the U.S. Labor Department reported today. The CPI fell 0.7 percent in December, the third consecutive monthly decline, as the prices for energy and food fell significantly.
Locally, most of the stocks in the BizTimes Stock Index fell this morning. The largest local decliners today were Fiserv Inc. (down $1.72 to $32.87), Badger Meter Inc. (down $1.66 to $23.51) and Johnson Controls Inc. (down $1.49 to $15.58). The largest local advancers this morning were Wisconsin Energy Corp. (up $1.06 to $42.93) and Ladish Co. (up 29 cents to $13.36).

Milwaukee County Board Chairman Lee Holloway forwarded a separate Milwaukee County capital and infrastructure project to Gov. Jim Doyle Thursday for $92 million in federal economic stimulus funds for a replacement mental health hospital.
Holloway wants to the facility to replace the current deteriorating facility on the Milwaukee County Grounds in Wauwatosa.
"It is important for Milwaukee County to be on the record to seek funds for a new mental health facility. I believe this facility should be located on the County Grounds to take advantage of the other health care providers that are in that area. Developing this new mental health facility is one of my top priorities during this term on the County Board," said Holloway, a Democrat.
When President-elect Barack Obama announced his plan to rebuild the nation's infrastructure and create new jobs, he said, "We will set a simple rule - use it or lose it. If a state doesn't act quickly to invest in roads and bridges in their communities, they will lose the money. We will measure progress by the results we achieve, the jobs we create and the energy we save."
Milwaukee County Supervisor Scott Walker, who has not submitted any applications for federal economic stimulus money, criticized Holloway's proposal.
Walker, a Republican, issued the following statement: "Our proposal to lease a state-of-the-art mental health facility at the site of the former St. Michael Hospital is ready to go right now. After two years of work on the project, we are ready to start immediately if the county board would only grant approval. Building a new mental health complex does not meet the 'shovel-ready' status that the incoming administration is looking for with infrastructure projects because it will take more than a year to even break ground. No site preparation or plans have been established and that will take a year to 18 months to finish. Plus, building a new facility does nothing to help the neighborhood around the former St. Michael Hospital site and it does not maximize the value of the land on the County Grounds that can be used for new medical facilities that will add significant jobs to the area. Also, operating a county-built facility is not as cost effective as our plan to lease the former hospital site. Our plan provides long-term cost savings. Overall, the build-new plan costs too much, takes much longer than our proposal, does not add as
many jobs overall as our plan, and does not meet the criteria of 'shovel-ready' to get aid from the federal stimulus plan."
Holloway's request came a day after he submitted a longer list of projects to apply for federal economic stimulus dollars from the incoming Obama administration.
Joe Wineke, chairman of the Democratic Party of Wisconsin, criticized Republicans for refusing to apply for the state's share of the federal stimulus plan.
"Let's be very clear about one thing: there will be a stimulus. We are not debating whether or not there should be a stimulus package; we are debating whether or not we should accept Wisconsin's share of the hundreds of billions of dollars that will create thousands of jobs in our state," Wineke said. "The question that now desperately needs to be answered is this: given that the chairman of the Republican Party of Wisconsin has laid down the law on saying, 'no thanks' to Wisconsin's share of this money, is this also the position of our Congressional Republicans? Is it the position of Republicans in the state legislature? If so, the Republican leadership in our state stands alone in the world. Virtually every economist is debating not whether a stimulus is needed, but rather how big it needs to be. Yet Wisconsin Republicans seem to know better. Their solution is a stubborn adherence to bad ideas: tax cuts for the wealthy and nothing for middle-class Americans."

Should Milwaukee County apply for its share of federal economic stimulus dollars? Take today's Biztimes Poll and view the results so far at www.biztimes.com.

With full exposure in the construction and automotive markets, Glendale-based Johnson Controls Inc. today reported a fiscal first quarter loss of $608 million, or $1.02 per share, compared with net income of $235 million, or 39 cents per share, in the same period a year ago.
The manufacturer of building control systems and automotive parts said its quarterly sales fell to $7.3 billion from $9.5 billion a year earlier.
"While we are disappointed to report a loss in the quarter, we are addressing the challenges by improving our cost structure and preserving our liquidity," said Stephen Roell, chairman and chief executive officer of Johnson Controls. "We continue to invest in our businesses to provide long-term value to our customers."
The company's building efficiency sales in the quarter were $3.1 billion, down 5 percent from last year. Johnson Controls noted said it was experiencing some softness in the global new construction markets.
Johnson Controls' automotive experience sales in the quarter declined 32 percent to $3.1 billion. Automotive production in North America was down 30 percent from a year ago to a level not seen in more than 25 years. European production declined significantly, and the company said it continues to receive notifications of significant production cuts. The automotive experience segment reported a loss of $329 million.
Johnson Controls said it expects to report a overall loss in its fiscal second quarter similar in scale to the first quarter's operating loss but with improved performance by its building efficiency and power solutions businesses. The company also said its previously announced restructuring program is progressing according to plan. It is expected that the financial benefits of the restructuring program will provide an accelerating accretive impact to earnings beginning in the company's 2009 second quarter.
"The market environment and uncertainties we face are expected to continue in the second quarter," Roell said. "We are implementing strategies to take advantage of opportunities in the marketplace. I would like to thank our employees worldwide for their dedication and commitment through these challenging times. With their help, we believe we will emerge from this economic cycle with a significantly advantaged competitive position."
During the quarter, Johnson Controls was selected by the U.S. Department of Energy as one of 16 companies to participate in an $80 billion contract to improve energy efficiency projects in federal buildings. The company said it had expanded its government sales force to take advantage of the significant growth opportunities for efficiency retrofits in the government market.
Johnson Controls also announced today it has signed a new contract to provide automotive batteries to O'Reilly Auto Parts. Shipments will begin in February to more than 1,000 Checker Auto Parts, Kragen Auto Parts and Schuck's Auto Supply stores nationally.

Richmond, Va.-based Circuit City Stores Inc. announced today that it will seek bankruptcy court approval to begin the process of liquidating all of its assets.
"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company," said James Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores.
Circuit City will provide more details in the near term about the plans for the liquidation of the stores and other assets.
The company does not anticipate any value will remain from the bankruptcy estate for the holders of the company's common equity. The company filed for Chapter 11 bankruptcy protection last November.

Indianapolis-based health insurer WellPoint Inc., the parent company of Blue Cross and Blue Shield of Wisconsin, today announced it will streamline its administrative operations by eliminating 1,500 positions, including more than 900 open posts.
WellPoint said it anticipates the layoffs of 600 existing workers to cost $24 million.
"With the current state of the economy, we made the difficult decision to adjust the size of our workforce as we continue to meet our members' needs while appropriately controlling operating expenses," chief executive officer Angela Braly said. "We remain committed to providing our members with the high-quality customer service they expect and developing innovative solutions to address the rising costs of health care."

Bank Mutual Corp. reported net income in the fourth quarter of $6.2 million, 13 cents per share, up from $4.1 million, 8 cents per share, in the same period a year ago.
For the full year, the Milwaukee-based company's net income was $17.2 million, or 35 cents per share, up from $17.1 million, 31 cents per share, in 2007.
Michael Crowley Jr., chairman, president, and chief executive officer of Bank Mutual, said, "We are extremely pleased with our company's performance in 2008 in light of the tremendous upheaval in financial markets and the banking industry in general. Although our earnings for the full year are comparable to last year, our core results showed more improvement, led by a 6% rise in net interest income."
Crowley added, "Our performance in 2008 validates our company's long-standing commitment to conservative lending and investing, capital strength, and liquidity, which will enable us to continue to meet whatever challenges our industry may face in the near term."
The company's gains came despite a $6.9 million impairment loss on a mutual fund that invests in mortgage-related securities; a $1.4 million impairment loss related to Federal Home Loan Mortgage Corp. common stock; a $1.3 million loss provision on a loan secured by a completed condominium development project; and an $822,000 valuation allowance for impairment of mortgage servicing rights.
These developments were substantially offset by $7.2 million in gains on the sale of certain mortgage-related securities during the year.

Boelter + Lincoln Marketing Communications will move its offices into Milwaukee's Historic Third Ward this spring.
The agency will move from the Germania Building, 135 W. Wells St., where it has been for 25 years, to the American Biscuit Building at 222 E. Erie St.
"We are committed to staying in Milwaukee and continuing to be a part of its vibrant creative class," said B+L president Jill Brzeski. "Our new location is ideal for us in that it offers more open work areas, which better fits our collaborative, team-oriented culture. It also offers us enhanced spaces for meeting with clients - not to mention a lively atmosphere in the surrounding neighborhood."
B+L provides marketing communications solutions such as branding, strategic planning, advertising creative, media relations, media buying, online marketing, social media marketing, crisis communications and events marketing.
B+L clients include the Wisconsin Department of Tourism, Wisconsin Dells Visitor & Convention Bureau, North Shore Bank, the Milwaukee Journal Sentinel and Wisconsin State Fair.
The Milwaukee agency has annual capitalized billings of more than $29 million.

Sightseeing tours of Milwaukee and surrounding areas will be added this spring to the services of The Brunow Company, an event hospitality business in Wauwatosa.
MKEtours.com joins the company's MKEyacht.com division to provide both land and water excursions in the Milwaukee area.
"We saw a real need to highlight the excitement and energy of this city to visiting groups through the eyes of people who know it best," said Robert Brunow, owner of The Brunow Company.
Coupled with the unique views of the city offered from the Milwaukee River and Lake Michigan aboard its two event boats, visitors will be able to tour the inland areas of the city in a pre-planned and organized manner.
MKE Tours is taking reservations now for both its land and water services, Brunow said. "Our mission is to provide tour groups with a safe, comfortable and affordable fun day as they explore Milwaukee," Brunow said.
MKE Tours has partnered with Historic Milwaukee Inc., a nonprofit educational organization, to provide year-round tour options. Historic Milwaukee provides trained tour guides, and MKE Tours arranges the needed planning, including modern motor coaches, admission fees, and a place to dine.

The Cardinal IG facility in Tomah has laid off about 70 employees this week because of weakness in the residential construction market, and Phillips Plastics Corp. announced it will close its Medford plant. Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at http://www.biztimes.com/#news.

The Jolly Holly Folly raised $35,000 for the fight against AIDS in Wisconsin. View a photographic slideshow of the event in the latest edition of BizTimes Around Town.

Busy readers of the BizTimes Daily can get a jumpstart on the weekend ahead by reading the OnMilwaukee.com Weekend Preview. OnMilwaukee.com is a media partner of BizTimes Milwaukee.

U.S. Rep. Paul Ryan (R-Janesville) is the co-author of an op-ed piece in today's Wall Street Journal, in which he warns about his perceived dangers of socialized health care. "For all his talk of allowing consumers to select their own health-care coverage, Mr. Obama's proposal, as he laid it out in his campaign, will provide strong financial incentives for employers and individuals to sign up with a new, Medicare-style government plan for working-age people and their families. This plan will almost certainly use a price-control system similar to the one in place for Medicare, allowing it to charge artificially low premiums by paying fees well below private rates. These low premiums will serve as a magnet for enrollment and will devastate the private companies trying to compete in the health-insurance market. The result will be the nationalization of the health-care sector, which today accounts for 16 percent of U.S. gross domestic product," Ryan states.

With the clock ticking on the City of Milwaukee's sick leave mandate, attorney Pamela Ploor has some advice for employers worried about compliance. Read more in today's Milwaukee Biz Blog.

Milwaukee Mayor Tom Barrett has been notified by the U.S. Department of Housing and Urban Development (HUD) that the city's action plan to spend its $9.2 million Neighborhood Stabilization Program (NSP) allocation has been approved.
The city's plan includes assistance for homebuyers purchasing foreclosed properties, rental unit rehabilitation, large project rental development, acquisition, rehabilitation and resale for homeownership, demolition of unsafe structures and a land bank.
"We've created an ambitious plan to further address the needs of Milwaukee's neighborhood created by the foreclosure crisis. We're eager to begin implementing meaningful solutions," Barrett said.
In addition to receiving the $9.2 million, the city is also applying for NSP funds from the State of Wisconsin's $38 million allocation in order to address the full scope of crisis. Additional funds secured from the state will be used to bolster activities already identified in the city's action plan, Barrett said.
For the last two years, the City of Milwaukee and many partners have been working to address foreclosure issues and the impacts of subprime and predatory lending in the community.
Last September, Barrett convened the Milwaukee Foreclosure Partnership Initiative (MFPI), a public-private partnership of lenders, foundations and community stakeholders with the primary goal of addressing the foreclosure crisis using a three-tiered approach: prevention, intervention and stabilization.
As of today, there are 1,868 foreclosed properties identified in the City of Milwaukee.  An additional 4,841 foreclosure filings have been opened.
The city's NSP Action Plan can be viewed at www.city.milwaukee.gov/CommunityDevelopment310.htm.

Wisconsin Gov. Jim Doyle today announced that Madison has been selected as the cycling hub for Chicago's bid to host the 2016 Summer Olympic Games.
"Not only is Madison a great place to live, it's the nation's premier area for bike riding," Doyle said. "I am pleased that the Chicago 2016 Committee has chosen Madison to be its cycling hub and can't wait for people from around the world to discover our beautiful region.
"Chicago 2016 has consistently placed athletes at the center of our Games plan," said Patrick Ryan, chairman and chief executive officer of Chicago 2016. "Our constituents emphasized their desire for technical and challenging courses, and we believe that the natural terrain found in Madison will exceed their expectations and make for an ideal competitive environment."
To select an ideal venue, the bid committee worked collaboratively with cycling experts, Olympic athletes and the International Cycling Union (UCI) to select courses that are technically challenging and conducive to high-level competition.
The Wisconsin Road Cycling Course would begin on the campus of the University of Wisconsin at Madison, head east through downtown and feature several steep climbs near the finish line in Blue Mound State Park. The Wisconsin Mountain Bike Circuit would take place in Tyrol Basin, a popular ski and snowboard destination in the winter that makes for a technically challenging course that meets the needs of the athletes while allowing for a great spectator experience during the Games.
Madison has one of the most extensive bike trail systems in the United States. Wisconsin's reputation as a major cycling destination accounts for its $800 million bicycle tourism industry. Pacific Cycle, Trek and Saris, three of the industry's leading companies, are headquartered in the Madison area.