Paul Soglin: Waxing America

Zilber's Gift: It Is More Than The Money

When it was announced that Milwaukee business and civic leader, Joseph Zilber, was giving $50 million to fund neighborhood initiatives the response, as expected, expressed gratitude and hope.

Zilber gives $50 million Philanthropist hopes to revive low-income areas in city, encourage others to give

Milwaukee Mayor Tom Barrett called the action "an unbelievably generous gift from Joe Zilber to this city."

The Milwaukee Journal-Sentinel article focused on something just as important as the size of the gift, it's scope:

The Zilber Neighborhood Initiative, as the effort will be called, will work with local organizations to support specific efforts to improve the quality of life in up to 10 neighborhoods...

...A key early step will be creating or selecting a "central intermediary," an organization to oversee the effort and make decisions on where money should go, while giving neighborhood organizations and representatives a strong voice in what goes on.

The gift to the people of Milwaukee measured in dollars is obvious.  Not so obvious is the thought and planning that went into the structure of the gift. As Zilber noted:

...There are a great many individuals and foundations prepared to invest resources to strengthen our community. For months I have worked behind the scenes with these entities. My mission is to mobilize them with good ideas, strong proposals and the promise that our shared commitment to our great city will yield positive results...

Joseph Zilber and his advisers gave careful thought to the structure of neighborhoods, how neighborhoods change, and the importance of building upon neighborhood assets:

We can (and must) act quickly and decisively to support programs that work, replace those that don't, bring proven and promising solutions to scale, sustain them long enough to gain traction and provide them with sufficient resources to get the job done.

The selection of Susan E. Lloyd of the Program on Human and Community Development to direct the effort is just one more indicator that this is a well planned gift. The money is important, but the context makes it even more valuable.

Brittany Zimmerman Phoned - Reach Out And Touch Someone

Before Brittany Zimmerman died, her last effort was a telephone call. Brittany tried to reach out and touch someone.

The most important domestic function of government is to safeguard the innocent: those who need assistance when they cannot protect themselves. To establish justice and promote the general welfare.

Society tries to prevent crime. When it cannot, it offers assistance in many forms, including 911 services which we all pay for, in part, through taxes and special fees.

I cannot imagine a more poignant example of a 911 call than a person, life at risk, dialing for help, dialing for that life.

It is the very instant where they manage to dial the number but cannot speak out that we are expected to listen and respond. It makes for gripping stories and haunting movies.

For Brittany Zimmerman it was a cold, lonely reality.

Now comes the blame. First there is the dispatcher who became too busy and moved on to other calls and forgot about Brittany. Them comes the director of the 911 Call Center who did not help his agency's stature by implying there was no reason to apologize.

The fault is more complicated than that. There are a lot of capable 911 dispatchers who could fail under the same circumstances.  It is reminiscent of the constant reminders of problems in our nation's skies. Air traffic control: Safety concerns on the nation's radar: As controllers keep their eyes on the skies, mistakes and cover-ups are surfacing.

The system did not function:

• an overworked dispatcher.
• a policy that police only automatically respond to a silent 911 call from a land line, not a cell phone.
• a lousy system for linking cell phones to their location - with all of the telephone company/government spying, you would think that emergency dispatch centers could have the primary address of every cell phone number.
• underfunded critical government services (the 911 center is just one of many).
• a desire for simple solutions like blaming the dispatcher.
• and do not forget the morons who deliberately call 911 unnecessarily.

Government failed Brittany Zimmerman. Government failed all of us. In turn, the time consuming, boring task of making systems work, focusing on public management and administration does not appeal to either politicians or the public. 

In 2004 Dane County conducted a study of the dispatch center and the 911 system.  That study predicted significant failures if reforms were not instituted. That study is one of thousands floating around city and county halls, state capitols, and Washington D.C.

They still float.

We all failed Brittany Zimmerman.

Republican Party Winning Battle To Destroy University of Wisconsin System

It was a struggle to maintain the great faculty assembled by the University of Wisconsin - Madison and its sister campuses throughout the state. In the early 1960's state budget deliberations over the higher education budget were peppered with such homilies as, "A champaign university on a beer budget."

While the UW salaries ranked at the bottom of Big Ten universities, it managed to assemble and retain an outstanding faculty. Despite the lower than average salaries, the UW retained many wonderful teachers and researchers. Then two things changed:

• Leaders in the legislature launched relentless attacks on the faculty.
• Then other institutions with big dollars like the University of Texas, decided to enter the marketplace with a commitment to upgrade their institutions.

When new UW Chancellor Donna Shalala and her successors, David Ward and John Wiley, committed to recognizing the importance of a quality faculty, the trend slowed and reversed.

But even the best of intentions cannot undo the damage of a hostile legislature, attacks on academic freedom, a refusal to provide benefits to partners, and a general nastiness led by the Assembly Republican leadership.

All of which has now received prominent notice in the latest issue of The Chronicle of Higher Education:

Wisconsin's Flagship Is Raided for Scholars

The problem is money. Wisconsin's stagnating state higher-education budget has forced the university to keep faculty salaries far below average. When professors get feelers from elsewhere, they learn that a move can easily mean a whopping 100-percent salary increase — sometimes more...

...As the faculty pay gap between public and private institutions widens nationwide, lots of public universities are having a hard time competing. But Madison is having particular problems, losing faculty members not only to well-off private institutions, like Chicago, but also to lower-ranked public universities. In the past few years, professors in a variety of disciplines have left Madison for Arizona State, Florida State, and Rutgers Universities and the University of Minnesota, among others.

As the article notes, the UW is at the bottom in average salary ranking of the twelve universities that are in its peer group. In addition, every time a faculty member leaves there is the additional cost of recruiting and finding a replacement. That can be as much as 25% of the annual salary.

How not to grow a state's economy.

Why not let Speaker Michael Huebsch and his co-pilot in bombing the UW, Representative Stephen Nass, know that they are succeeding and you do not like it.

Going After Tax Evaders is a New Tax Increase: WMC

Last night I had a opportunity to hear Jack Norman, Research Director of the Institute for Wisconsin's Future speak about Wal-Mart and its use of loopholes to legally avoid paying taxes.

I started to wonder. Imagine that Wisconsin took steps to change the state law so that Wal-Mart would have to pay the taxes.

Would Wisconsin Manufacturers and Commerce (WMC) consider remedial legislation to fix the problem an amendment of the existing tax laws or would they consider that a new tax and/or a tax hike?

If anyone can get near to this august body that prides itself on patriotism and loving the state of Wisconsin, please put the question to them.

Here, from Broken Partnership: How Wisconsin’s Corporate Sector Underpays State and Local Taxes by $1 Billion is what Wal-Mart does to avoid the taxes.

Wal-Mart has a separate corporation that owns the real estate. Wal-Mart makes sure that the rent is high enough so that the stores never make a profit. Of course, the real estate holding trust that owns the land and building make a lot of money - like several hundred million dollars.

...The Wal-Mart operation that owned the stores collects rent is set up as what is known as a real-estate investment trust (REIT).

The REIT's profits, paid out in dividends to Wal-Mart are tax-free.

That is because the REIT is located in a state that does not tax the profits from rents. Very nifty. Figure out a way of showing no profit in Wisconsin and move the income in the form of a rent to another state.

Wal-Mart and WMC do not hate all lawyers. They must love the ones who figured out these tax loopholes.

Look into your pockets. Not a lot there?

That's OK. Wal-Mart and WMC wish to thank you for paying additional taxes since someone has to make up for their clever tricks.

Remember, if you support fixing this problem you are a supporter of big government who just wants to raise taxes.

Remember the WMC motto: Standing Up for Business! If it is good for WMC, it is good for you!

Lack of State Support Hurting Students, University of Wisconsin System

This week the University of Wisconsin System Board of Regents are meeting. A major issue on the table is tuition, including plans to vary tuition based on campus attended, family income, and adjusting aid formulas. Milwaukee Journal Sentinel: UW System to look at tuition restructuring

An advisory group recommended Thursday that the University of Wisconsin System Board of Regents consider new ways to increase tuition revenue at a time when less of the system's funding comes from the state.

I recently read where a financial advisor said that paying off student loans has changed since I went to school. My generation had a reasonable expectation of ending the debt within five years of graduation; this generation has to treat the student loans like a mortgage with a twenty year payoff.

Which brings us to the central point. State government is reducing its participation, driving up the cost to students, driving down faculty salaries, and deferring plans for needed improvements.

In recent months I met with many business leaders from throughout the state. They echo or paraphrase what Northwestern Mutual Insurance CEO Ed Zore said some time ago, "The issue is not taxes, it is workforce development."

Here are facts to consider- this is not just about tuition, but the impact on the entire UW System budget:

• In the early 1970's the state provided 50.7% of the budget for the UW System. In 2006-07 that number dropped to 24.2%.
• As the MJS reports, "A quarter of Wisconsin residents 25 and older hold bachelor's degrees, a figure that lags behind Illinois and Minnesota. "
• UW-Madison faculty salaries are among the lowest in the Big Ten. Combined with the refusal to provide health care benefits to domestic partners, a nominal cost, it is difficult to recruit and retain the best professors.
• College graduates more than repay the cost of their education, because the taxes they pay back as a result of their greater earning power are more than twice that of a high school graduate.

Pew Gives Wisconsin a B- Biennial State Grading

The Pew Center on the States, an arm of the distinguished Pew Charitable Trust, has issued its 2008 grading of the states. As in 2005-06, Wisconsin receives a B-, the average grade for all states.

The State Management Report Card for 2008 ranked thirteen states higher than Wisconsin. States were evaluated based on: (Wisconsin grades follows the description)

• People - the quality of state employees B-
• Money - fiscal policies, including preparation for economic declines C+
• Infrastructure - capital planning and maintenance as well as governmental coordination B -
• Information - uses of technology, budgeting techniques, and management performance C+

Curiously, or not, the Wisconsin evaluation begins with a reflection on the high quality of state employees and the treatment of Georgia Thompson. The authors reflect, "The personnel situation even sounds a little Kafkaesque when you hear the story of Georgia Thompson. A well-respected state procurement supervisor protected by civil-service rules, she was briefly jailed in 2006 in a politically motivated prosecution."

The structural budget deficit is noted  and acknowledgment is made that Wisconsin is handling its infrastructure better.

In a little sidebar, it is noted that Wisconsin's per capita spending is $5,303 which ranks the state 24th. Our average per capita income is $24,875 which ranks us 20th.

Clearly we are taxing ourselves and spending within our means.

Other conclusions:

• We need not fear raising state revenues so we can set aside a reserve and ensure that the budget is balanced in the worst of economic times.
• We are improving our infrastructure, but we still have a ways to go.
• We should appreciate this generation of public employees and start demonstrating our respect for them if we wish to continue to attract and retain dedicated public servants. Frankly, I am a bit stunned at those who admire our soldiers, but distain them when they return to their public jobs.
• We need to improve our technological capabilities, which will lower the cost of government and improve service. 
• We need to focus on quality.

Hospital 'Tax' Supported from Left to Right, Except WMC

When I first came to Wisconsin as a student in 1962, I heard the constant chatter about how our state ranked last in receiving federal dollars relative to all of the money we sent to Washington.

Wisconsin lacked in defense industries, military bases, and space centers. To make matters worse we did not lead the nation in significant populations living in poverty or that were elderly. Consequently, we could not maximize dollars spent on poverty, entitlement, or block grant programs.

I am not a big fan of taxing any form of heath care. But the proposed gross receipts tax on Wisconsin hospitals of .8 percent makes sense. Unfortunately.

But that is not five percent, or one percent, but 4/5's of a percent.

As The Capital Times noted in its March 1, 2008 editorial, Hospital tax pays for itself

The tax would have brought in about $400 million from the hospitals, but the hospitals would have received that $400 million and more in matching federal money to help pay for Medicaid programs.

That is because the federal government will match much of the revenues. By not imposing the tax, we leave hundreds of millions of federal money on the table - in Washington D.C.

Madison's progressive newspaper is not the only one supporting the tax. The not quite so liberal, Appleton Post Crescent, says Hospital tax needed to ease budget crunch

It (the hospital tax) may even end up reducing costs for those with private insurance, too, since hospitals have said they make up for the poor Medicaid reimbursements by charging the insured more. With better reimbursement, they wouldn't have to.

The hospital tax is favored by hospitals and will bring in more money. The state can't afford to let the hundreds of millions of dollars slip away a second time.

Keep in mind that the projected Wisconsin budget deficit is $650 million. While these federal monies could not be used to fill the budget deficit, it demonstrates the magnitude of the matter.

Not surprisingly,  if two opponents changed their minds, resolution would be forthcoming. The first is the Republican leadership in the Wisconsin Assembly, the second is their puppetmasters, Wisconsin Manufacturers and Commerce (WMC).

Here are the health career providers who sit on the WMC board of directors who are trapped between the best interests of their companies and the powerful business lobby:

• Marshfield Clinic
• Aspirus Wausau Hospital
• Gundersen Lutheran
• Humana Inc.

Why It is Hard to Relocate Snow - Think of the Residue

As another snow storm blanketed Wisconsin this morning, a question came up about snow removal.  Throughout the state there are sections of street that are overwhelmed by the volume of accumulated snow.

A simple solution is to bring in the plows and trucks and haul it out to some isolated site where it can melt by June or July.

Unfortunately is is not that simple. A lot of that snow contains petroleum byproducts, heavy metals, and even shards of sharp metal and glass. Just imagine what accumulates along the curbs.  Take that out to an isolated field or a local public park and imagine what remains after the melt.

Public Parks - the dump areas would be contaminated.

Wild environs - the areas would be contaminated.

Landfills - not really.  You would never dump raw petroleum in a landfill.

Ice covered lakes - ugh

No one said life would be easy.

Whining About Bloated Government: Wisconsin Style

This weekend I came across the opinions of State Senator Ted Kanavas (R-Brookfield) in the Waukesha Freeman.

Kanavas concludes, Short budget means governor must cut spending, resist urge to raise taxes with this gem:

...Wisconsin cannot support the bloated state bureaucracy he envisions for our state. Cutting spending and promoting our economy can increase revenues and solve budget problems without increasing our already out of control tax

It is time that Kanavas showed the bloat.

Right-wing ideologues have fed this drivel to the media and the public for years without any documentation or substance. Like any organization, public or private, there are going to be some mistakes, there will be errors, but these vast generalizations go undocumented.

Let's start with aids to municipalities and watch the elimination of 'bloat' impact law enforcement, fire protection, and street maintenance.  Perhaps Kanavas should start with Veterans Affairs or the State Department of Transportation. Education is expensive - tell us which schools to close.

The problem with these ideologues is that they are wrong on two accounts; two faulty assumptions  that are more important than the 'bloat.'

First, they offer no solutions to improve the quality of government.  I am not talking about the meat cleaver approach, but the thoughtful quality transformation that is proven successful in the private sector.

Secondly they rant about taxes. The collection of revenues for state and local government in Wisconsin is reasonable. Very reasonable. We are in the middle of the fifty states and the quality of service is certainly above average.

The problem is how we collect the taxes. We place too much of the burden on the property tax payer - the middle income household. Kanavas will never fix that. It means taxing his buddies.

Wisconsin Highway Report on I 90 Stranded: Whaddawedonow?

The real test of an organization is how it responds to failure and corrects it. The recent problems associated with the 14 hour back up on Interstate 90-39 presents an opportunity to the State of Wisconsin, Governor Doyle, and all of the agencies involved. The Department of Transportation and the Wisconsin National Guard can now engage in real improvement.

First things first. The report must be welcomed with sincerity and without recrimination. When improvement is need, the full cooperation of all the participants is needed.  They must feel free to speak frankly and truthfully without worrying about negative consequences or retaliation. We must support their effort to make things better.

As anyone familiar with a quality transformation of an organization knows, the first task is to drive out fear.

The Capital Times lead was simple and straightforward, Doyle apologizes to motorists stranded on highway:

Gov. Jim Doyle says he is now ready to apologize to the motorists who got stranded in a 2,000-vehicle interstate traffic jam during a Feb. 6 blizzard.

"Many people through just some bad decisions ended up on that road who didn't have to," Doyle said an a news conference today. "It's very clear this could have been handled much better."

That is what is needed and expected. There is no need for a totalitarian 'off with their heads' approach unless there was gross misfeasance.

Now the various state agencies must move forward with a spirit of cooperation, without concern for rank, status or power and fix a broken system. It is likely that some young trooper who was on the scene can contribute as much if not more than a twenty year veteran who viewed the problem from afar. It is likely that some young geek with the knowledge of the best communication systems can contribute as much as a division head.

With all of the clamor about the phony 'tax hell' and downsizing government, this is the real challenge. We must improve the quality of government services in a positive, systematic manner.

We have the report but not the fix. They should now go for it.