Tag Archives: wisconsin

New Wisconsin Governor to Follow IEDC Model

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A state wants to do away with its Department of Commerce and replace it with a public-private partnership. It wants the focus to be job creation. Citing Indiana as an example for its move six years ago, that is the current game plan from incoming Wisconsin Gov. Scott Walker.

Gov.-elect Scott Walker wants to eliminate the state Department of Commerce and replace it with a public-private entity focused solely on job creation.

Walker said he still wants the state to play "a direct role, a supporting role" in economic development, "but not necessarily doing that all through a state agency."

It’s not yet clear how the new partnership would operate, who would run it, or whether it would be subject to the state’s open meetings and records laws.

Walker mentioned the plan at a gathering of business leaders and interest groups at the Madison Club to promote a new report, "Be Bold — The Wisconsin Prosperity Strategy."

The report offers similar suggestions for replacing the Commerce Department, saying the agency is responsible for many duties that have "little to do with job creation, which should rank as its top priority." It pointed to other areas, like natural resources and the public university system, where the state has governor-appointed boards.

It suggested creating an independent board to oversee the state’s job creation strategies and putting a variety of "private sector job creators" on that board, as well as the university system president, technical college system president, a union leader and a labor economist. It also recommended that the board be appointed by the governor and confirmed by the Legislature, and be given oversight of the economic development bond fund and the power to review regulations affecting businesses.

Walker applauded the plan, but said he may go beyond some of its suggestions.

"It certainly is bold. And we want to be bold. In fact, we’ve told them repeatedly I want to be even bolder," Walker said. "And so, we may take this plan and build off it and be even more aggressive than what they’re presenting."

 

Business Owners Tell It Like It Is

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Earlier this week, we shared a fictional video that depicted the uncertain regulatory climate and its impact on business. Now, two groups – Public Notice and the Small Business & Entrepreneurship Council – have a series of stories from actual small business owners who are in the position of wondering about their ability to survive.

"Moving Forward in Uncertain Times," begins a four-part series called "The Story of Business." The first video features Wes Garner, President of Great Lakes Calcium Corp. in Green Bay, Wisconsin. 

"Like families across America, business owners are having to make tough choices.  They’ve cut hours, costs, and even laid off dedicated employees. These entrepreneurs are heavily invested in their businesses and have everything to lose-but they don’t see Washington making the same tough choices," said Gretchen Hamel, executive director of Public Notice.

In order to survive and thrive, business owners need pro-growth policies that provide clarity and certainty. Without these, business investment, expansion, and job creation suffer. Unfortunately, Washington has produced new laws and regulations that have added to business costs and widespread confusion among business owners.  In addition, unresolved issues – like what the tax rates will be next year, and whether certain tax incentives will be available – are keeping entrepreneurs on the sidelines, and general business confidence in the tank.

"Small business owners do not have it easy, even in good economic times.  They’ve certainly been put to the test during the last two years.  Unfortunately, Washington only made matters worse — imposing mandates businesses can’t interpret and threatening to raise taxes to make up for years of overspending. Entrepreneurs face an uncertain future and they simply can’t afford what government is currently dishing out," said Karen Kerrigan, President & CEO of the SBE Council.

Costly Rail Projects Casualties of 2010 Election

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Efforts to advance high-speed rail in Indiana have always focused on a Midwest approach. Those efforts suffered a setback in last week’s election as new governors in Wisconsin and Ohio have clearly stated their intentions to halt projects in their states supported by federal funds. Stateline reports:

A shift from Democrats to Republicans in the governor’s mansions of Ohio and Wisconsin means that federally backed high-speed rail projects in both states likely will be stopped in their tracks.

Last week, just days after Republican Scott Walker won election to succeed Democratic Governor Jim Doyle in Wisconsin, Doyle’s administration told contractors on one of the projects, a proposed line between Madison and Milwaukee, to temporarily stop working, citing Walker’s victory, The Milwaukee Journal-Sentinel reported. In his successful campaign, Walker ran on a vow to end the project, which he considers a waste of money.

In Ohio, Republican governor-elect John Kasich is calling on Democrat Ted Strickland — whom he defeated on Tuesday (November 2) —to promptly cancel a pair of studies on a proposed rail line connecting Cincinnati, Cleveland and Columbus. "Given that the train is dead under John, no additional state or taxpayer dollars should be spent on this project," a spokesman for Kasich told The Columbus Dispatch.

Ohio’s rail project is expected to cost $450 million and Wisconsin’s has been allocated $810 million in federal stimulus funds, The Wall Street Journal reported last week. It is not clear what will happen to the federal money if both new governors follow through on their pledges to cancel rail projects, though Walker has said he wants to use the money to repair Wisconsin’s roads and bridges instead, according to The Journal.

So far, the anti-rail pledges by Walker and Kasich are the most notable spending cuts being proposed by Republicans who swept into numerous governor’s offices last week. As Stateline reported Thursday (November 4), at least 11 new Republican governors and one new Democrat, New York’s Andrew Cuomo, have vowed to address tens of billions of dollars in budget shortfalls without raising taxes, leaving major spending cuts as the likeliest outcome.

Parties Badger Each Other in Wisconsin Over High Speed Rail

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Discussion about the possibilities of high-speed rail has been plentiful over the years. The federal government is putting dollars behind the talk, with Wisconsin the big winner in a network that could extend throughout the Midwest. But there is controversy in the Badger State.

A brick-and-glass state office building on the banks of Lake Monona, just a few blocks from the Wisconsin Capitol and the rest of downtown Madison, shows no outward sign that it has become the focal point of one of the most heated — and unexpected — debates to divide this state’s Democrats and Republicans in a crucial election year.

The controversy is over what the building could become: one of the first new station stops on a high-speed rail network paid for primarily with federal dollars. Wisconsin won big in a national competition to get the high-speed rail stimulus money, and the issue historically has attracted bipartisan support here. Proponents say the new rail service will spur development and link Midwestern cities more tightly together.

But many Wisconsin Republicans this year are denouncing the new trains, using the project as a symbol to show how Democratic leaders in both state and federal government are spending money that neither can afford. “More than anything,” says Scott Walker, the Milwaukee County executive and Republican candidate for governor, “it symbolizes what people think of here when they think of runaway government spending.”

Both Walker and Mark Neumann, a former congressman who faces Walker in Tuesday’s (Sept. 14) Republican primary, want the state to stop work on the project. Walker launched his own website called NoTrain.com, calling for using the money to fill other transportation needs. Neumann doesn’t want it used for transportation at all; he wants the money for tax breaks, although it’s not clear how viable either option is.

Rail proponents are not backing down. President Obama visited Milwaukee to preview his plans to improve the nation’s transportation infrastructure, specifically mentioning high-speed rail. His transportation secretary, Ray LaHood, said in a recent visit that “nobody can stop this train.” And Milwaukee Mayor Tom Barrett, who is running to keep the governor’s mansion in Democratic hands, is firmly behind extending high-speed rail to Madison.

Choose the Proper Course on Carp

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Asian carp are a serious threat to the waterways of the Great Lakes, but the solution to their potential invasion must not create additional economic harm. 

The carp, which can weigh up to 100 pounds, are predators. They would threaten numerous fish species native to the area, the broader environmental balance and even boaters and tourists striving to enjoy recreational opportunities. Once positive contributors to helping remove algae from Southern fish ponds, they are now regarded as among the most dangerous of invasive species. 

One misguided attempt to deal with the risk is to close the navigational locks in the Chicago area. This would disrupt hundreds of millions of dollars’ worth of shipping and essentially sever Northwest Indiana’s crucial water-based commerce with the rest of the world. 

Federal investment, in the form of additional electric barriers, would prove more effective in keeping the carp out of the Great Lakes while still allowing Indiana and the other states in the region to maintain the shipping prowess that benefits so many companies and their employees.

Washington is paying attention – as it should. The barrier plan emerged from a White House-led summit. Indiana and its neighbors must now work together to support this prudent alternative. The threat is real; a radical closure of shipping lanes and economic opportunity, however, is not the answer.

A new organization called Unlock Our Jobs has formed to tackle this issue, offering alternative options while keeping our waterways open for business. Its web site can also help you quantify the economic impact of river traffic and lock closures on your state.

More Campuses Just Saying No to Smokers

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In 2007, about 60 colleges and universities had enacted a smoke-free policy. That number has grown to nearly 400.

There has been some external push. Clean air laws in Illinois, New Jersey and Wisconsin require smoke-free university housing. Smoking is prohibited on all public campuses in Arkansas and at every school (public and private) in Iowa. A couple of big players soon join the list, with no smoking at the University of Florida this fall or at any of the three University of Michigan campuses starting in 2011.

For those that still allow lighting up, more have policies that restrict the number of areas and move smokers away from building entrances. What have student reactions been? According to a CongressDaily story:

A Student Tobacco-Free Task Force was created when the University of Denver went smoke-free in January. Similar associations have been created at other colleges to help enforce the policy and support the change.

However, students who oppose the ban on smoking cigarettes outdoors have not remained silent. Groups of students held daily "smoke-ins" in protest when the University of Pennsylvania attempted to ban smoking at all 14 of its campuses in 2008.

The University of Denver found that about two-thirds of the student population was in favor of banning tobacco. "Interestingly, these divisions were not necessarily based on one’s personal use of tobacco," said Katie Dunker, the assistant director of health promotions at the school. "We had students who use tobacco who were for it and students who didn’t who were against it."

A list from the American Nonsmokers’ Rights Foundation puts campuses of 15 Indiana colleges and universities in the total smoke-free category. There are another nine Hoosier campuses rated smoke-free with the exception of some remote outdoor areas.

Insurance by the Numbers

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When the subject these days is health care, that dreaded six-letter "r" word that ends in "form" usually follows. Let’s skip that topic and its consequences. Instead, a few interesting insurance facts, courtesy of The Council of State Governments and its annual The Book of the States.

  • Top five states for percentage of residents covered by insurance: Massachusetts (97%), Hawaii (92.5%), Wisconsin (91.8%), Minnesota (91.7%) and Maine (91.2%)
  • Bottom five states for percentage of residents covered by insurance: Texas (74.8%), New Mexico (77.5%), Florida (79.8%), Mississippi (81.2%) and Louisiana (81.5%)
  • On a regional basis, percent insured are 88.6% in the Midwest, 88.5% in the East, 83.9% in the South and 82.8% in the West
  • Where people get their insurance: 53.7%, employer; 13.2%, Medicaid; 12.1%, Medicare; 4.9%, individual
  • People under age 65: 65% have private insurance and 17% are uninsured
  • Children under age 18: 58% have private insurance, 34% are on a public health plan and 8.9% are uninsured

What do all the numbers mean? Let us know your interpretation.

Let’s Go Out to the Movies: Displeased Customer Gets R-Rated Response from VP

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If you’re like me, you pretty much prefer watching Netflix films on your couch versus actually putting on pants and going to a movie theater. But when you go, there’s a certain expectation of customer service, especially considering the prices of tickets these days. So imagine the shock of one Minnesota woman who wrote a letter to theater ownership, and got a less-than-cordial response from a VP. The Minneapolis/St. Paul Star Tribune reports:

The first problem, she said, was that the theater didn’t accept debit or credit cards. They had brought cash for popcorn and sodas, but not enough to buy tickets. The lobby’s ATM was out of cash, so their friends covered them by writing a check.

That was just the beginning.

"I would say within the first five or 10 minutes, a woman came into the theater and announced that eight people were in there who weren’t supposed to be in there," she said. For about 20 minutes, she said, staff members flashed their lights, checking ticket stubs and being a distraction. "Once I got back into the movie, it was great," Kohl-Leaf said, but the first part of the night out had been marred.

Once home, she decided to e-mail the theater management to complain. Her note went to Evergreen Entertainment LLC of New Brighton, owners of St. Croix Falls Cinema 8 and five movie complexes in Minnesota.

"I did not pay 18.00 to have a distracted experience," she wrote. " … I would rather drive to White Bear Lake, where they obviously know how to run a theater than have this experience again." The e-mailed response that greeted her the next morning left her stunned.

"Drive to White Bear Lake and also go [expletive] yourself," began the reply from Steve Payne, Evergreen’s vice president. "If you don’t have money for entertainment, get a better job, and don’t pay for everything on your credit or check card." It also included a couple more expletives before ending.

"I was surprised — I honestly didn’t think it was the vice president who sent it," said Kohl-Leaf. She showed it to her friend, "and we were just like, ‘What?’ … I’ve worked in retail, and I would never think to say something like that, or write it or anything."

Payne later sent a second, less-heated, message: "As vice president I should never have reacted that way, no matter how I felt about your e-mail."

Ya think? Trust me, when I worked as an editor of a community newspaper, I took several phone calls laden with vitriol, and in some cases that feeling was mutual. But dang. Let’s all let this serve as a reminder to take a breath before dealing with unhappy customers and clients. As with most things in life, firing back with emotion before thinking it through just creates more problems for yourself and your business.

Tax News: Good to Be Tied to Arkansas in This Case

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Interesting numbers from the Tax Foundation, which is in the business of analyzing interesting (tax) numbers. Its annual review of what states did with their tax policies included some strong praise for Indiana. A few excerpts from the release and a link to the full study, which takes some to task for targeted tax hikes and accounting gimmicks (instead of reducing spending).

Nine states increased individual income tax rates (five states reduced their rates), six states raised general sales tax rates, 17 states increased excise taxes on cigarettes and five states increased rates of alcohol excise taxes.
 
“Two states – Arkansas and Indiana – managed to roll back spending growth commitments and take actions to limit spending, but other states have either kicked the budget can down the road or increased taxes,” said Tax Foundation Director of State Projects Joseph Henchman, who authored Tax Foundation Fiscal Fact No. 204, “A Review of Significant State Tax Changes During 2009.”  

“With state revenues declining due to the tough economic situation, most state leaders in 2009 have tapped high-income earners, smokers, out-of-state business transactions, or other targeted groups, those being the only people that politicians feel safe raising taxes on,” Henchman notes. 

California, Connecticut, Delaware, Hawaii, New Jersey, New York, North Carolina, Oregon and Wisconsin increased individual income tax rates. States that increased sales taxes include California, Massachusetts, Minnesota, Nevada, North Carolina and the District of Columbia.
 
Other miscellaneous tax changes in 2009 include obesity and soda taxes, excise taxes on plastic bags (often mischaracterized as “fees”) and “Amazon” taxes, which force out-of-state retailers to collect sales taxes from customers if the companies have affiliate and advertising relationships with in-state businesses.

Using Social Media to Turn Frowns (of Customers) Upside Down

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The blog of Directions marketing agency (Neenah, Wisconsin) has an interesting tale about a company that turned a customer’s negative blog reaction to its product into a ringing endorsement through engagement and sincere customer service. (My holiday favor to you: The company makes toilet seats and I won’t even attempt one pun on the matter.) Read about the exchange here and take heed of the lessons learned:

1) To paraphrase David, this is how social media is supposed to work and this is how a business that really cares about its customers and product reputation is supposed to interact with today’s consumers.

2) Reaction to negative postings should be swift, honest, transparent and never defensive. Your demeanor and words should convey that you simply want to get to the bottom of the situation and that in the interim you want to make the customer whole.

3) Even a few years ago, an unhappy customer such as David might have picked up the phone and called the toll-free customer service hotline. Or he might have just complained loudly to friends and acquaintances. In today’s world, the Internet is where complaints go to be aired, amplified and live on forever. You can’t react if you aren’t actively listening in the first place.

4) Viral can be a positive or negative force. Commenting on the outcome, a Realtor in Utah posted the following: “This is a company that knows exactly what the new age media is all about. Hats off to Bemis for knowing a bad situation can be handled in such a way as to make a loyal customer for life.”