Paul Soglin: Waxing America

WMC: Wisbusiness.com Covers Changes - consensus on state business climate

Mike Schramm was kind enough to remind me that the new WMC strategy is reported in wisbusiness.com by Brian E. Clark

WMC effort looks for consensus on state business climate

With Democrats soon to control the state Assembly, as well as the Senate and governor’s office, the state’s largest business lobby is shifting gears to deal with what it calls the “new political landscape."

Wisconsin Manufacturers & Commerce, which has often been at odds with Gov. Jim Doyle, is reaching out to diverse groups -- including labor -- to develop plans to stimulate the state’s slumping economy....

Wisconsin Manufacturers and Commerce: Moving Wisconsin Forward

This past week we discussed Wisconsin Manufacturers and Commerce's (WMC) new program, Moving Wisconsin Forward, which is described in their publication What Will It take?

While WMC refers to improving or growing the Wisconsin economy and improving the business climate, which are not the same, their new program is a significant departure from previous WMC government relations ventures.

In past legislative sessions, WMC attempted to unilaterally drive through the legislature new laws, or even constitutional provisions, such as TABOR. They took no prisoners.

The reality of Republican minorities in both houses of the legislature set in and now WMC speaks of "reaching out,'" "building coalitions,'" and "collaboration."

Regardless of the motive, the new approach is refreshing and welcome.

The real test for WMC is demonstrating that it comprehends that an improved Wisconsin economy is not synonymous with lower taxes and less environmental regulation.

Wisconsin needs investment in infrastructure and and investment in human capacity. That means more transportation systems, more energy, more workforce development, and more education.

Unlike the federal bailouts, which come with virtually no oversight or regulation, growing Wisconsin must be put in perspective.

Just as some knee-jerk liberals say, "no' to anything that is good for business development, WMC must realize that they cannot say "no" to oversight or regulation that demands green technology or that extends education and training into poor neighborhoods.

There may be public investment that creates new jobs and builds factories, but it is not unreasonable to stop that programming if the jobs are located in suburbs with no public transit. There are solutions - build in the inner city or minimally require access to public transit.

Workers need training and education.  It costs more money to educate young men and women who are in households below the poverty line. In rural and urban areas WMC must support access to education, even if the cost is significant. The cost of not doing so is too expensive.

One of the biggest wastes of taxpayers dollars is the price of incarcerating so many of our state's residents. WMC must participate in discussions and solutions to end the rising crime in our state and that means more than conventional law enforcement. Real community policing is expensive.  Providing the childcare, transportation, job development, health care, and economic literacy training is costly. Again, not doing so is even more expensive.

We have highlighted some of the shortcomings of WMC's approach. We also recognize the value of WMC changing its strategy, its agenda, and broadening the discussion.

WMC, welcome to twenty-first century Wisconsin.

Wisconsin Manufacturers & Commerce: What Will It Take?

WMC: What WIll It Take?

 

Wisconsin Manufacturers & Commerce - Repackaging the Outfit

Despite denials and protestations, Wisconsin Manufacturers and Commerce (WMC) spent the better part of the year wracked with internal strife and dissent. First, the loss of the membership of Foley and Lardner as well as TDS Telecommunications was followed by the highly publicized withdrawal of Cullen Construction. Then came retiring UW Chancellor Wiley's article in Madison Magazine, which characterized WMC as the biggest impediment to economic growth in our state.

As the summer wore on and the fall elections approached, WMC leadership came to the following conclusions:

• A significant portion of the membership was deeply concerned about WMC's image and was threatening to leave if reforms did not take place.
• The reformers, mostly retailers with a presence in food, financial services, and health care, were a critical base of the organization and had to be taken seriously if WMC was to remain a potent political force.
• It was not possible to save a Republican majority in the Assembly.
• Given WMC's horrid public image, it was best not to do the Willie Horton style ads of previous elections, thus avoiding  more bad will and saving resources for the spring Supreme Court race.

As a result WMC adopted a strategy for this fall:

• Stay out of most of the legislative races
• Through a 'lend lease' program of money and talent, let surrogates like All Children Matter do the hatchet job on Democrats like Trish O'Neil in the November elections.
• Save resources and goodwill for the Shirley Abrahamson race, when the outcome really mattered and the rewards were greater.

There was more. The election strategy for 2008-09 needed a compliment of goodwill. The WMC image was tarnished and needed rehabilitation. WMC is now involved in a series of 'listening sessions' and discussions which are designed to further its goal of being a team player and softening its image.

As the winter goes on we will review WMC's plan to ratify its agenda, as WMC goes through the motions of 'gathering input' and "listening" to focus groups.

 

The Partnership for Wisconsin

The Partnership for Wisconsin is a collaborate effort of business, labor, professional, and academic leaders committed to a sound Wisconsin economy. The Partnership is a non-profit organization whose members share a common value, namely the importance of education for the growth, security and happiness of the individual, the family, and society.    The participants share a common belief that a highly educated and trained workforce is a critical element in making Wisconsin a better place to live, work and play.

The Partnership for Wisconsin acknowledges the benefits to the individual and society of an education.

A safe and healthy community is one that provides economic security and ensures economic opportunity for all of its members. Studies show that education is indispensable if individuals and their families are to fully realize the benefits of their labor.

Male college graduates earn well over $60,000 a year from the age of 35 to 60. High school graduates in the same age range earn under $40,000. The differential for women is similar. Women college graduates will earn over $40,000 a year while female high school graduates earn about $23,000 a year.

Society also benefits form the earning power of education.  Depending upon race and gender, the additional taxes paid by a college graduate compared to a high school graduate is between $200,000 and $400,000 in the course of a lifetime.

The benefits are not as stark, but still significant, if a high school drop out  were to finish school, or if a high school graduate were to have just one or two full years of higher education.

For example the public benefit of a high school education is $209,000. That amount represents the combination of greater taxes and reduced cost to the public of a high school graduate as opposed to a high school drop out.

From society’s perspective, it always pays to invest in education.

Add to this, the demands of Wisconsin business and industry for what one major employer who described his highest priority as a “need for an intelligent workforce.” Employers need workers who can contribute productively and intellectually.

The Partnership for Wisconsin recognizes that to provide for a sound education system there must be a fair and equitable system of taxation. In encouraging public support for education, the Partnership is committed to a Wisconsin taxation plan that not only adequately funds education, job training, and workforce development at all levels, but fairly distributes the cost among all of the parties who benefit.

The Partnership for Wisconsin recognizes that adequate investment in human capital and infrastructure are critical to stimulating private investment. For that reason, we are committed to encouraging a dialogue between the public and private sectors to set an agenda that acknowledges the many direct and indirect benefits that come from such strategies.

As its first commitment, the Partnership will focus on:

• Ensuring adequate financing of public education in all districts throughout the state of Wisconsin.
• UW System education. Financing adequate so that:
  • no in-state student has to pay more than % of their tuition
  • out of state tuition is not more than 100% of the cost of educating the student
  • Faculty salaries at the Madison campus are commensurate with other Big ten Schools
  • UW system Schools are (needs elaboration from academicians)…..
• A workforce development program through the VATC System  (more detail needed)….
• A tax structure that will most likely require an increase of existing taxes, the expansion of the tax base, and or the adoption of new taxes in order to adequately finance….(identification of educational and workforce development needs) 

The Partnership feels that our state must not only have an educated workforce but that we have an enlightened citizenry that understands the externalities and the consequences, or lack of consequences, from not giving full consideration to appropriate investment in human capacity as well as the learning environment.

For that reason the Partnership for Wisconsin is committed to supporting programs that are designed to provide economic opportunity to all Wisconsinites. A healthy state economy is predicated on strategy that encompasses all areas of the state, urban, rural, and suburban.

The Partnership, from time to time, may support the work of others or engage in its own research and policy development in areas related to education, workforce development, or which support the individual’s ability to further their education and training.  This may also include the examination of collaborations with employers, both for profit and non-profit, that are in need of an ever expanding educated workforce.

The Partnership recognizes that many factors enter into the decisions of investors to locate businesses in a community. Reputable studies show that public safety, efficient transportation systems – both public and private, a sound environment, cultural and recreational opportunities, along with fair taxation and a friendly attitude towards economic development are all critical elements that affect decision making.  For that reason the Partnership for Wisconsin, will convene workshops and forums throughout the state to discuss how to improve the economic climate.

Particular attention will be paid to how the international economic environment impacts Wisconsin business and the need to create sustainable industries that can compete in an economy that will afford greater opportunity to businesses that are ‘green.’

Dr. Martin Luther King Jr., noted for his leadership in the civil rights movement could have found an alternative career as a leader in the quality movement when he said “All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence.”  The Partnership for Wisconsin joins in Dr King’s sentiment and is committed to urging both business and labor to collaborate to the greatest degree possible in providing fair and decent wages and benefits, working conditions and hours, and at the same time appreciating the contribution to improvement that every employee can make.

While the Partnership will not become involved in disputes between employers and organized labor, it will urge that resolution of differences be made with an eye to the long term consequences as well as the short terms needs of both parties.

Wisconsin has a long tradition of utilizing the research capabilities of its universities for the advancement in health, science, nutrition, safety, technology, culture, societal organization, and a greater understanding of the human condition. For that reason the Partnership for Wisconsin is committed to supporting research and academic freedom in all of our institutions of higher learning.

 

author's note: This is a draft written six months ago and now available on another web site. Over the past year I met with many Wisconsin business leaders. They were unhappy with Wisconsin Manufacturers and Commerce (WMC). They felt that WMC should be ignored and that a new organization established in our state. Based on what they were saying and my discussions with labor and academic leaders, I drafted a plan for the Partnership for Wisconsin.

 

I will post next week its origin  and why it relates to our state's economy.

No Bailout for Automakers Unless...

I will not support a bailout for the U.S. automakers, General Motors, Ford, and what is left of Chrysler,  unless provision is made to stop them from lobbying and influencing elections and public policy.

It is that simple. That is the price for public money. Without proper restraints, the automakers will continue with membership in organizations like the United States Chamber of Commerce, the Institute for Tort Reform, and even Wisconsin Manufacturers and Commerce (WMC). Like bankrupt (fiscally and morally) AIG, millions of dollars will be funneled into these organizations.

AIG sent $23 million to the US Chamber.

These dollars will be used to lobby Congress, purchase television ads supporting the reelection of Republicans like Norm Coleman (R-MN), and issue ads designed to elect their friends to Congress.

More often than not these ads will elect anti-choice, anti-public education, anti-gay officials at the national and state level.

It is unconscionable that if the public, you and me, take a stake in owning the automakers, that our companies, our investment, be used to advance a right wing political agenda.

Wisconsin's Three Billion Dollar Hole

It is fun winning elections. It is no fun running a government in miserable economic times. The Milwaukee Journal Sentinel tells us: State Democrats face $3 billion budget hole

Capitol Democrats, you just got what you wished for. Are you still sure it's what you want?

For at least two years, you'll have to run state government - and it's in a deep financial hole.

...crafting the next two-year budget. That won't be easy because Doyle has said that budget faces a deficit of more than $3 billion.

The problem goes back a decade to flush times when the Republicans spent without limit, cut taxes, and failed to save for a rainy day. Then came the economy collapsing when the dot com bubble burst and the subsequent stock market collapse following 9/11.

The Democratic majority is inheriting a structural problem that goes back to when the Republicans controlled the Governor's office and at least one if not both houses of the legislature. 

In recent years the best Governor Doyle and the recent Democratic Senate majority could do was jerry-rig temporary solutions and hope the economy would recover so that sales taxs and income tax revenues would increase. Assembly Republicans made sure there were no permanent solutions. Matters only got worse.

There are some tough choices facing the legislature and the Governor next session. Fail to raise taxes, and the state's infrastructure collapses and the budget deficit worsens to the point where it can create permanent damage to Wisconsin's economy.

Raise taxes imprudently, and Republicans will exploit the crisis by appealing to beleaguered home owners on fixed incomes. The irony of course, is that the Republicans and WMC enacted numerous tax cuts in the recent years that benefited the wealthy and shifted the responsibility of paying for government onto middle class families with incomes well under $100,000.

Revenue collections must be increased.

The worst way to do it is is to follow the Republican-WMC model by shifting costs to the property tax. Most desirable is increasing the income tax rates and make it more progressive. That combined with modifications to the sales tax open up creative solutions.

Democrats must come to understand that expansion of the sales tax may not be all that regressive. Especially when we consider that a significant portion of it is paid by out of state residents. The legislature must look at increasing the rate, especially to help pay for education, and expanding what it covers while leaving the exemptions for health, shelter, and food, along with modifications to the income tax.

Keep in mind that while WMC bellows about Wisconsin being one of the highest taxed states, that claim is misleading. Government gets revenue from two sources - taxes and fees. Wisconsin is a very low fee state. When fees and taxes are combined, total government revenues collected by Wisconsin put us in the middle of the 50 states.  A reasonable increase in sales and income tax revenues will not change our competitive position.

As for the continual loss of manufacturing jobs, that is a product of Republican-Gingrich-Norquist based trade policies that contend that there should be free international markets even though Asian competitors pay slave wages and their industries are heavily subsidized by their governments.

When Washington fixes the trade problems, Wisconsin will do just fine as long as we have an educated, well-trained work force.

November Elections 2008: The Morning After

I woke up this morning glad to have done the radio show on WTDY last night with Sly and Bill McCoshen, a Wisconsin Republican who will, hopefully, have a lot to say about the future of his party, but disappointed that I did not attend the parties where so many of my friends celebrated last night.

I was surprised at my own emotional response to the election of Barack Obama. I was more filled with wonderment about what the next four years will bring rather than joy over his election.  Perhaps it was the projections that he was going to win that took the edge off the victory.

In any case, for the first time in my lifetime, and that includes the election of JFK in 1960, or my years as mayor when Jimmy Carter and Bill Clinton were elected, I am truly excited about the future and the unknown possibilities for our nation and the world. The economy and the wars will prevent any immediate social change, but it is coming.

The engagement of so many young people of so many different colors in this election holds more hope for the future. Voting is the first level of civic engagement. With persistence and hard work, hopefully they will stay engaged by running for office themselves, getting involved in their children's' education, and voting in subsequent local and state elections.

• I missed the gathering of the supporters of the Madison school referendum which won by a large margin, putting to rest the myth that there is some kind of secret plot by the supporters of public education to place these measures on the ballot when turnout is low.
• The Democrats took control of the Wisconsin Assembly. Marc Pocan gets a big thank you for adopting a "50 state" strategy and finding great Democratic candidates in as many Assembly districts as possible.
• Perhaps the biggest local disappointment was the apparent defeat of outstanding Trish O'Neil in the 47th District. She was the victim of one of the nastiest television advertisements this election season.
• While Wisconsin Manufacturers and Commerce (WMC) was defanged, it is evident that extreme right-wing money and energy was shifted to outside groups like  Coalition for America's Families, the Club for Growth and All Children Matter which continues to produce WMC-style attack ads.
• In Oshkosh, Gordon Hintz was returned for a second term to the Assembly's 54th district with 66% of the vote.  Keep an eye on him. Here is a legislator who is effective, principled, and a nice guy.
• The biggest Midwest disappointment was Al Franken's apparent loss to incumbent Republican Norm Coleman in the Minnesota US Senate race. Franken would have made a great senator and Coleman is an opportunistic jerk. Coleman has some serious ethical problems in casting future votes regarding the financial bailout which he supported, since AIG put $25 million into the US Chamber of Commerce over a five year period and then the right wing business group spent a hefty sum in his support.
• Best news from the left coast: As of this posting, it appears that same sex marriage survives in Californian. Barely.  Update 2:42 UGH
• Those who checked in here last night can see from my solitary post that it is too difficult to do live radio and  blog simultaneously.
• Congratulations to the high school students who got involved in the school referendum and and all of the electoral races even though they will not vote for a few more years.
• I suppose my nice introduction of Bill McCoshen, above, will get back to the social conservatives and doom him as an influential leader in fixing the Republican Party. With moderate business leaders estranged from their party, and Democrats in control of both houses of the legislature and the Governor's office, they have no place to go. Now is the time for the Democrats to reach out and form a coalition of labor, business, and education leaders to fix and fund education from kindergarten through college in Wisconsin.

Guilty pleasure I will pass on today - No right wing Milwaukee talk radio; I have too much work to do and it will be more fun spending the spare time chatting with friends.

Wisconsin Manufacturers and Commerce: Attitude Adjustment. Not

This week's Isthmus says, Wisconsin Manufacturers & Commerce tones it down a notch.

Correctly noting that the tone of this fall's election television advertisements designed to elect Republicans are by WMC's own admission, "reposition(ed)." Erik Gunn reports:

Such ads are a departure for WMC, which is better known for its spots trashing state Supreme Court Justice Louis Butler as "Loophole Louie" or, earlier, portraying Gov. Jim Doyle during his successful 2006 re-election bid in a green, toxic haze to suggest he is a crook.

We recall that it took enormous pressure to get WMC to make these modifications to its political message. They only did so  when the image of the individual members was tarnished by the trash they produced in previous elections.

Left to their own devices, WMC would resume creating more "Willie Horton" style messages.

It is clear that WMC's market position was assumed by such groups as the Coalition for America's Families, the Club for Growth and All Children Matter which continues to produce WMC-style attack ads.

All Children Matter is running nasty spots that have nothing to do with children or the truth.

The Government Accountability Board may or may not get the power to regulate these ads so that the public knows who is paying, but the WMC misinformation machine will continue to roll.

These public advertisements are just one face of the WMC propaganda effort.

When the new session of the legislature opens next year, expect WMC to continue to publish distortion and after distortion about Wisconsin tax levies, expenditures for compensation packages of public employees, and of course, the record of Wisconsin Supreme Court Chief Justice Shirley Abrahamson.

WMC is not going to go quietly into the night.

Where Does WMC, Where Does WMC Watch, Go From Here?

When I posted Wisconsin Manufacturers & Commerce Downsizes for Elections and Image noting that the reduced presence of WMC in this fall's elections could be the result of a number of factors, Xoff pointed out that:

WMC, with its image taking a battering, decides to run a token amount of positive advertising and quietly give its big bucks to one of the other right-wing groups that's running untruthful negative ads against Dems all across the state. No requirement to report it, since it's not PAC money, and WMC lets someone else take the heat. Can I prove it? No. But it's plausible, given how much money WMC was raising and how little it appears to have spent directly.

Absolutely correct.

My guess is that WMC and WMC-sourced funds are down significantly this year. However, even if the they did not  redirect political funds into groups like the Club for Growth in this election cycle, the extreme right wing forces will do so in the spring 2009 Supreme Court race.

There are a number of scenarios:

• Money will continue to pour into WMC from US Chamber of Commerce backed sources and WMC will buy the ads.
• Money will pour into WMC from US Chamber sources and WMC will pass the money on to the Club for Growth, and other fronts.
• Money will pour into the Club for Growth and its clones directly from the US Chamber of Commerce, completely by-passing WMC.

All of these scenarios can have different outcomes in that some will be less effective than others.

All of these scenarios are designed to do the same thing - advance a right wing agenda utilizing a Willie Horton media campaign, for the purpose of undermining public education and eliminating reasonable government regulation that protects consumers and the environment.

The studies due after next Tuesday that look at the purchase of television time by these reactionary groups may give us some clue as to which tactic they are pursuing.

In any case, WMC Watch has much to do. Not only will we continue to monitor WMC's election activities, but we willl continue to expose its anti-environmental record, its anti-education record, its distortions about the nature of taxation in Wisconsin, and its plans for the 2010 gubernatorial election.