June 19, 2013

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Senate passes WEDC reform

June 19, 2013 By

The state Senate on Tuesday unanimously passed a reform bill for the Wisconsin Economic Development Corporation, the state’s jobs agency.  A recent, scathing audit found the 2-year-old private/public entity did not follow state laws.

The bill from Sen. Rob Cowles (R-Allouez) calls for annual financial audits, requires WEDC employees follow state ethics laws and calls for quantifiable performance measures for job creation programs.

The bill also sets term limits for members of the WEDC board–of which Governor Walker is chairman–while creating a lead director position on the board. “In the private sector you have a lead director that tends to run things when the chairman’s not there and it’s person who simple knows more than any other board member,” says Cowles.

The WEDC reform package now heads to the Assembly.

Filed Under: Economy, News, Politics & Government

Secretary of state hopes to restore the office

June 11, 2013 By
Doug La Follette (FILE PHOTO: Jackie Johnson)

Doug La Follette (FILE PHOTO: Jackie Johnson)

The secretary of state wants the governor and the legislature to put politics aside for the good of the state, its economy, and job creation.

Secretary of State Doug La Follette is working on developing a good structure for his office to encourage people to form corporations, do business, and borrow money in Wisconsin.

“I think there’s been a lot of mistakes made about the Secretary of State’s office and it’s hurt Wisconsin. One of the best things we can do for the economy, that’s so obvious, is return the business functions to the Secretary of State’s office that were here originally and are in the Secretaries of State’s offices all across the country.”

In 1995 many responsibilities were transferred to a newly-created Department of Financial Institutions (DFI). La Follette says over the years people inquiring about trademarks, notaries public, and other business regulations were confused. He says it’s important to restore those business functions to the office of Secretary of State.

“This is not about Doug La Follette. I’m not gonna be around forever. It’s about what’s best for Wisconsin’s economy and for doing business. If we wanna be open for business we shouldn’t make it hard for people to find the things they need to do business.”

Rohn W. Bishop is critical of the position. The Republican last month announced his candidacy for La Follette’s “pretty cushy gig.” Bishop says he can carry out the limited duties of the Secretary of State while advocating for elimination of the office.

La Follette defends the office. He met with Governor Scott Walker recently, he says, to explain how Wisconsin has gone “off the track” by creating the DFI and putting it in charge of the business functions.

“All across the country we want to encourage people to come here — form corporations, do businesses, borrow money. All that requires dealing with the Secretary of State’s office everywhere in the country except Wisconsin. That doesn’t make sense.”

La Follette was first elected to the office of Secretary of State in 1974. He announced at the State Democratic Party of Wisconsin Convention over the weekend that he will seek re-election next year.

Bishop says “It’s a waste of taxpayer money to keep a position around just so Mr. La Follotte can set some kind of record for duration in office.”

The election is 17 months away.

AUDIO: Jackie Johnson report 2:10

Filed Under: Economy, Elections, News, Politics & Government

Home sales increase

May 21, 2013 By

Home sales continue to grow in the Badger State.

Wisconsin existing home sales jumped last month compared to the time a year ago, according to the Wisconsin Realtors Association, and the industry has seen growth for nearly two consecutive years.

“We’ve seen sustained growth now for 22 straight months in sales,” says Michael Theo, president and CEO of the Realtors Association. ”In April it jumped 9.2 percent above April of last year so that’s real positive growth right as we’re starting this prime selling season here in Wisconsin.”

In addition to increased sales, a report from the group shows median prices climbed by a solid margin, growing 7.8 percent over the past year to $138,000. Theo says we are in the prime selling season. “In a typical year about 60 percent home sales takes place between April and September roughly. The first quarter numbers were real strong in sales. These April numbers are equally strong so I think it’s a good foundation for that prime selling season.”

Theo is hopeful the numbers will be sustained throughout the year. Contributing to the growth in home sales — mortgage rates continue to be at historic lows.

Filed Under: Business, Economy, News

State unemployment rate held steady in April

May 16, 2013 By

Wisconsin’s unemployment rate held at 7.1 percent in April, although new numbers released Thursday show the state lost 24,100 jobs last month. Officials with the state Department of Workforce Development downplayed the numbers, citing long standing concerns about the reliability of the data they are based on and noting that they are often subject to heavy revisions. For example, numbers from March were revised upward by 1,500 jobs.

DWD economist John Koskinen blamed the cold and wet spring weather for stifling job creation in April. Koskinen says seasonally adjusted numbers show hiring in the construction, private services, and leisure and hospitality industries were all down from a year ago.

The monthly numbers were released on the same day that the state put out figures from the last three months of 2012, which show Wisconsin added 32,000 private sector jobs last year. The numbers bring the total jobs created since Governor Scott Walker took office up to 62,000.

The data is sent to the Bureau of Labor Statistics, which will release a formal report at the end of June with numbers from all 50 states.

Governor Walker and the DWD have long argued the quarterly numbers are more accurate than the monthly figures because they are based on feedback from a wider range of businesses. Spokesman John Dipko says the monthly numbers have “consistently underestimated Wisconsin job creation, even after revisions have occurred.”

Filed Under: Economy, News

Hearing airs out WEDC audit

May 9, 2013 By

The head of the state’s job creation agency was grilled by lawmakers on Thursday, regarding a troubling audit. Wisconsin Economic Development Corporation Executive Director Reed Hall was on the hot seat at a committee hearing to examine the highly critical audit prepared by the Legislative Audit Bureau. Madison Democrat, Representative Melissa Sargent was particularly pointed, questioning the WEDC record on job creation on the same day the legislature’s budget committee was scheduled to vote on funding for the agency.

“You’re asking for more money, when there is lack of transparency, a loss of taxpayer dollars and a loss of jobs to our state,” Sargent said. “Are you proud of the direction that your agency has brought us?” Hall said WEDC “created or impacted at least 24,000 jobs” and that he is proud of the agency, “and I’m proud of what we’re going to do in the future.”

Hall took issue with Audit Bureau findings of several violations of state law by WEDC, which he said is open to interpretation. Senator John Lehman of Racine told Hall it’s not. “We take their word as pretty much the fact,” said Lehman. “I know you’ve made a point that you have some disagreements there, but must of us sitting here feel that the audit bureau has our back.”

Assembly Minority Leader Peter Barca, who serves on the WEDC board, was derisive of Hall’s claim that the agency is impacting jobs. “Excuse my French, but what the hell does that mean? I mean it’s just ridiculous. quite frankly.”

Hall, a former Marshfield Clinic CEO, is the second person to head WEDC since it was created in 2011 to replace the State Department of Commerce. “The report does not reflect an organization that we wish it to be,” he said. Hall told members of the Joint Legislative Audit Committee that the transition from the old department was largely responsible for the many problems uncovered in the audit. “The report does not reflect an organization that we wish it to be”

While Democrats have hammered on the audit as indicative of serious problems at WEDC, Governor Scott Walker continues to defend the public-private partnership as an effective means to coordinate state and local economic development efforts.

 

Filed Under: Economy, Legislature, News, Politics & Government
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