Issues

Economic Development for Southwestern Wisconsin

September 3, 2008

As I travel the district and meet with constituents, I hear a lot of concern about our country’s economy. There’s no doubt that with escalating gas prices, rising health care costs, and an ever changing global marketplace, local businesses and middle-class families are biting the bullet and struggling to make ends meet. That being the case, I’ve made a determined effort to (1) identify the key short-term and long-term challenges facing the district, (2) develop economic policies that enable our communities to retain and expand their business sectors, and (3) network with public bodies, economic development organizations, and local businesses to establish shared goals and maintain an ongoing exchange of ideas.

Steve discusses the needs of local businesses with Karna Hanna, the Executive Director of the Sauk County Development Corporation.

First, what are the key challenges facing the district?

For one, rising gas and energy prices are a major burden on the economy. Families and businesses are spending more on energy and as a result, they have less money to invest and fewer opportunities to build on their assets. Accordingly, we have a responsibility to investigate alternative, renewable energy sources that will reduce our dependence on foreign oil and revitalize the economy.

To that end, last session I supported the provision of $22 million for renewable energy grants and loans. I also supported the creation of a new tax credit for biofuel development as well as the expansion of angel and early stage seed capital investment tax credits. When we incentivize the use of alternative fuels, we stimulate local entrepreneurial operations, we enable existing businesses to expand into new markets, and we move a step closer toward cheaper, more sustainable energy consumption. Together, we need to continue to stimulate this sector of the economy and face up to the growing energy question.

Another major burden weighing down the economy is the rising cost of health care. As a former business owner, I know how difficult it can be to provide health benefits for employees – especially when the cost of providing benefits is rising by 9% every year. Last session, I introduced the Catastrophic Care Act to develop a statewide reinsurance program that stabilizes premiums by spreading the risk of catastrophic health care costs across a larger pool. Accordingly, we must continue to support initiatives that enable businesses to reduce expenses, retain skilled employees, and compete more effectively.

Finally, as we look toward the future, we must come to grips with the workforce development issues facing southwestern Wisconsin. In five years, the baby-boomers – who represent 40% of the workforce – will be eligible to retire and businesses will be in high-demand for skilled labor. According to Wisconsin Manufacturers & Commerce and the National Association of Manufacturing, this is the number one issue facing businesses. Given these circumstances, lawmakers and businesses have to renew their commitment to education. We have to work very closely with educational institutions to expand job-training, job-recruitment, and job-retention services.

While it will require a lot of hard work and cooperation to address these challenges, much of the groundwork has been laid. Southwestern Wisconsin is well-positioned to take the next steps to grow our economy by strengthening traditional industries while expanding into new markets. Our region has a rich agricultural heritage, an abundance of natural attractions, and a wide variety of historical landmarks. That’s why I advocated so strongly for economic stimulus programs like Buy Local, Buy Wisconsin. Buy Local, Buy Wisconsin is a new plan to boost our agro-tourism economy by developing infrastructure and expanding regional markets for farmers, food processors, and retailers. Right now, we are in the process of building a regional distribution system that will make it easier for farmers and local businesses to market and sell their products. Rural economies need growth and this plan is predicted to keep $1.9 billion in the state’s economy each year and re-circulate upwards of $3.8 billion in local agricultural industries.

In summary, Buy Local, Buy Wisconsin is a great example of what I have worked to accomplish and what I will continue to advocate for. We need to support programs and policies that address the key challenges facing the district, stimulate our existing industries, and encourage the growth of new local businesses. At the same time, we need to ensure that our landscape, our traditions, and our quality of life are not compromised by future development.

Together, I am confident that we can balance these goals and continue to move southwestern Wisconsin forward.
Maintaining and Improving Our Infrastructure

September 9, 2008

A dependable infrastructure – or in other words, a well-maintained system of roads, bridges, dams, public utilities, communication systems, emergency management services, etc. – is key to any safe, prosperous community. Like the network of veins and arteries in our bodies, civil infrastructure connects our vital systems and carries basic necessities where they are needed. As a result, and this is the bottom line, our residents, businesses, and communities have access to the resources they need to maintain safety and conduct business.

As the recent flooding illustrates, a reliable, well-managed infrastructure is absolutely critical to the safety of our communities. During emergencies, we rely on communication systems to provide us with adequate warnings, we rely on emergency personnel to respond to safety hazards, and we rely on roads, bridges, and dams to withstand severe conditions. Accordingly, when we properly maintain these systems, we reduce risks to public safety and correct inadequacies that could turn into costly and dangerous breakdowns during times of crisis.

For these reasons, I opposed the move to tap into the state’s Transportation Fund to cover the budget shortfall. I spoke with local engineers and community leaders and they told me that repair projects in the region are overdue as is. Our infrastructure can’t afford cutbacks. It’s our responsibility to maintain our commitment to the roads, emergency services, and various other civil systems we depend on.

A well-maintained infrastructure is not only essential to the safety of our communities, it is central to trade and economic development. Our infrastructure is and can be an even greater asset to our economy. When we invest in transportation and communication systems, returns accrue through increased productivity, improved working conditions, and greater distribution outlets. I’ve spoken with economic development specialists and they reiterate that an evolving, multifaceted infrastructure is essential to any business looking to reduce expenses and increase access to markets.

That being the case, it’s important to note that several communities in southwestern Wisconsin don’t have access to high speed internet and natural gas. The residents and businesses in these areas operate with less efficient, less cost-effective services – like dial-up and fuel oil. These communities have a competitive disadvantage when it comes to advancing their local economies. That being said, I am determined to address this deficiency and advocate for infrastructure improvements that give our businesses a competitive edge and enhance the quality of life for the residents of southwestern Wisconsin.

There’s one final infrastructure improvement I want to mention and that’s the Rails-to-Trails proposal being discussed in the Sauk Prairie community. If the unused rail line that runs north from Mazomanie to Devils Lake State Park is converted to a regional trail, the Sauk Prairie community would absorb a huge influx of bicyclists and visitors (reports estimate that over 10,000 bicyclists would travel through Sauk Prairie yearly). With proper maintenance and supervision, this regional trail would yield substantial benefits for the residents and businesses in the area.

Infrastructure improvements like these are necessary investments that generate numerous immediate and long-term returns. They preserve our safety, foster prosperous business conditions, and improve the quality of life in our communities. Together, we must maintain our commitment to these vital systems and ensure that they complement and satisfy the evolving needs of our residents and businesses.
Rethinking School Funding

September 18, 2008

Our local public schools are vital to the well-being of us all—preparing our children to become productive and successful members of society, while also providing the glue that holds our communities together and educating the workforce necessary for a healthy and growing regional economy. If we want to live decently, enjoy a high standard of living, and compete in the global marketplace, we must invest in quality education.

Steve discusses the coming of a new online school library catalog with Librarian Arlene Siss (right) and a Belmont High School student. Steve fought for the catalog in the budget negotiations.

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But our schools are in crisis. Indeed, for many schools it is a matter of survival. The future of our children, our communities, and our region is at stake. The source of the problem is obvious: The state leaves school districts with little choice but to increase spending by at least 3.8 percent per year while limiting their revenue increase to 2.5 percent. This guarantees perennial budget deficits. After cutting all but core programs, the only recourse available to local districts is to hold costly and divisive referendums to increase already heavy property tax burdens.

Sixty-one local school districts held referendums in Wisconsin on April 1st, with over half of them failing. The referendums sought to raise state-imposed revenue caps in some districts to repair or replace obsolete or deteriorated facilities and in others solely to pay everyday bills. Pecatonica’s passed by a scant 25 votes, and Darlington’s by only 24 votes, permitting those schools to remain open, at least for the time-being.

Because the state limits school districts’ revenues based on enrollment, districts having stable or declining enrollments also have lagging or declining revenues. However, a school’s costs do not change proportionately with enrollment. The result for school districts throughout the state, and especially here in southwestern Wisconsin, is budget deficits.

The plight of southwestern Wisconsin’s school districts is further worsened by the requirement that approximately one-third of their costs be covered by taxing local real estate. The state’s equalization formula for distributing aid among local schools fails to equalize the widely disparate tax rates that must be levied to obtain the needed revenue. Mill rates levied by the state’s school districts range from about $3 to $16 per $1000 assessed valuation.

The needed reforms are clear: (1) Rexamine the unrealistic state-imposed revenue caps put on our local school districts, (2) Distribute state aid among local school districts on the basis of actual education costs rather than enrollment or other arbitrary formulas, and (3) Reduce the property tax burden and eliminate the need for referendums by shifting a larger share of education costs to the state.



The crisis facing our local school districts is not a Democratic problem or a Republican problem. It is our problem, one that requires concern for our common interest. All children deserve accessible, adequate, and equitable educational opportunities, regardless of whether rural or urban, property rich or property poor.

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My top priority as your Assembly Representative is to act with bi-partisan support to ensure that our local schools not only survive, but thrive. Together, we must ensure that children in all our schools receive the quality education guaranteed by the State Constitution, regardless of their community’s property tax base.