The economy continues to take its toll on Wisconsin’s unemployment compensation fund.

The projected deficit is in the billions of dollars, and options range from more borrowing from the feds, decreasing benefits, or raising taxes on employers.

Based on how the economy is fairing, state Senator Jon Erpenbach (D-Waunakee) says the best option is likely going to be to continue borrowing for awhile. He says it would be unwise to raise taxes on businesses, especially if cuts in benefits would also be necessary.

At last count, the unemployment fund’s debt was nearly $1.5-million-dollars and growing. The state has already borrowed more than $1 billion from the federal government in order to continue paying unemployment claims.

AUDIO: John Colbert reports (:37)

The Republican contenders for Governor squared off in their final debate before the September primary. Education often came up during the town hall format which took questions from groups around the state. Milwaukee County Exec Scott Walker said more attention needs to be paid to the needs of the individual UW campuses, rather than the UW system or state’s “structure,” which will benefit their regions’ economies. 

Former Congressman and teacher Mark Neumann wants to take a page out of North Carolina’s book which matched the knowledge found in their major universities with the needs of business. Neumann said the result is the southern state added 110,000 jobs in the last five years.

Both candidates said they would reduce mandates on public schools, so they could spend more of their money in the classroom. Walker said he would try to bring back limits on pay teacher pay raises. And he said he would wait to push for wholesale changes in the school funding formula until the economy gets better.

The Republicans defended their ideas of cutting taxes amid criticism from Democratic opponent Tom Barrett saying it would create a bigger mess for the state.  Walker said his formula has worked for other states in which cutting taxes promoted job growth and helped balance their budgets. Neumann said he’s got a responsible solution. It starts by limiting how much state government spends each year to a rate of 1% less than inflation.

The GOP gubernatorial candidates agree the planned Milwaukee to Madison high speed rail plan must die despite federal money having been allocated and contracts being locked in. Neumann’s ideas to kill the train is renegotiate the contracts.

Walker said as Governor he would work to get Wisconsin’s Congressional delegation on board to reroute the 810 million federal dollars set aside for the train, to road building and improvement all around the state.

The debate was produced by WISN-TV Milwaukee and moderated by Mike Gousha.

AUDIO: Mark Neumann and Scott Walker closing comments (2:29)

A state lawmaker says the results of an economic study should have Wisconsin taking a hard look at its competitiveness.

State Senator Randy Hopper (R-Fond du Lac) was involved in the competitiveness study developed by Be Bold Wisconsin. He says the loss of 178,000 jobs between 2007 and 2009 were among the major findings of the report.

Hopper says nearly 43-percent of the jobs lost were in the manufacturing sector. The state lawmaker from Fond du Lac says that should raise a red flag, because of the jobs bigger companies create. He says those often help support smaller businesses in the surrounding communities.

Hopper says the state has also created an unfriendly business climate and trade publications like Forbes magazine took note of that, ranked the state 48th last year for business environment.

Hopper says he agreed with most findings of the study, such as recommending the state have a public-private partnership for economic development. He says the study didn’t address the tax climate and the fact that venture capital goes to states that offer the highest return and the least resistance.

AUDIO: Sen. Randy Hopper (:13)

Sales of existing homes have fallen to a fifteen year low. Bill Malkasian, President of the Wisconsin Realtors Association notes that existing home sales surged in the early spring largely because of a lucrative tax credit program for buyers. Malkasian said July’s drop is not surprising to many people in the industry. “It’s simply the fact that many of the buyers used the April 30th deadline and moved their decision to March and April instead of June or July,” Malkasian said. He said the tax credits had the effect of getting some higher end properties – at $250,000 and more – sold. “That was a good thing,” he added. Malkasian said Realtors will be closely watching fourth quarter sales numbers to see whether some normality returns to the marketplace. Sales fell in every region of the country, led by a 35 percent drop in the Midwest.

More people going back to work. Wisconsin’s unemployment rate has declined for a fourth month in a row. Dennis Winters of the state Labor Department says 6500 seasonally adjusted private-sector jobs were added in July. ‘The private sector is adding jobs, our unemployment rate is coming down,” says Winters. “This has been a bit of a lethargic recovery and it’s taken a little while to translate down to the job side of things. But we’re making progress, slow as it might be, and we think it’s going to continue.” Wisconsin’s unemployment rate of 7.8-percent compares to the national figure of 9.5-percent. The Doyle Administration says 25,000 private sector jobs have been regained since the first of the year.

John Colbert, WIBA

Officials with Mercury Marine have announced that 200 additional jobs will be coming to the company’s Fond du Lac facilities over the next five years. The company will be moving its MerCruiser engine and drive assembly operations to the state, following a similar announcement last September to re-locate castings and machine operations from Stillwater, Oklahoma.

A bitter battle concluded just under a year ago led to the consolidation of Mercury’s castings and machine operations in Wisconsin. Company spokesman Steve Fleming says the decision was made after the company determined it would be best to put all operations under one roof, and the move will only strengthen the company’s position in the market.

Governor Doyle suggested in a press release that those jobs could have gone to Mexico and Fleming says that Mercury was considering several locations for the 200 jobs.

State Senator Randy Hopper, who had a role in last summer’s consolidation talks, says it’s good news for manufacturing in the state.

Mercury is also receiving $5 million in performance-based incentives from the state for adding those jobs over the next five years.

AUDIO: Mercury Marine spokesman Steve Fleming (:08)

Figures from the state Department of Revenue show property values dropped by about $16 billio last year. That included a 3.5-percent drop in residential property values, although Wisconsin Realtors Association President Bill Malkasian says it doesn’t seem to have had an effect on the prices homes are selling for.

Malkasian says the average sale price for a home in Wisconsin is sitting at $144,000 this year, which is off only about 0.01-percent from the average price for 2009.

Malkasian says Wisconsin home prices have managed to remain stable because there’s less speculation in the housing market here. He says other parts of the country, such as Florida and Las Vegas, have seen prices drop dramatically because too many properties remain vacant after the bottom dropped out of the housing market.

AUDIO: Andrew Beckett reports (1:03)

Home sales in the state soared during the second quarter of the year. The Wisconsin Realtors Association says home sales were up in the state by nearly 20-percent between April and June, compared to the same period last year.

Association President Bill Malkasian says the federal homebuyer’s tax credit is responsible for most of that increase. The credit for first time homebuyers expired on April 30th. As a result, many buyers who likely would have waited until the summer months to shop around rushed out to make a purchase before the deadline.

While it meant a good second quarter for home sales, Malkasian says numbers from summer home sales are expected to be down significantly. He says preliminary numbers already reflect that fact, although he expects home sales to return to somewhat normal levels by the end of the year.

Even without the credit, Malkasian says home buyers have plenty of reasons to continue shopping right now. Mortgage rates are at historic lows and there are plenty of affordable homes on the market right now for buyers to consider.

AUDIO: Andrew Beckett reports (1:08)

A new report shows the large impact golf has on Wisconsin’s economy.

Governor Jim Doyle says the report from the Wisconsin Golf Alliance shows the sport brings some major financial benefits to the Badger State. The study shows a $2.4 billion economic impact from golf in Wisconsin in 2008, and about 40,000 jobs created because of the sport.

The study comes as the PGA Championship gets underway at Whistling Straits in Sheboygan. Governor Doyle was at the course Tuesday to help kick-off the event, which is expected to draw over 200,000 spectators to the region and millions of viewers around the world.

Doyle says such a major tournament will help to showcase the scenic beauty of Wisconsin around the world.

AUDIO: Andrew Beckett reports (1:10)

Farmers markets are growing, the number of them at least. A new USDA report found that Wisconsin was eight best in the nation and had 204 operational farmers markets this year. Market Manager Larry Johnson of the Dane County Farmers Market says he’s seen a growing interest as he gets calls from market managers around the country asking about their operation.

Organizers believe the Dane County Farmers Market is the largest producer only farmers market in the country, meaning the vendor is the person who grew or made the product.

Johnson cites numerous benefits that customers receive from markets including freshness, support of local economy and less waste as the goods don’t have to travel as far. He says most of all the shoppers value the relationship with the producer and knowing from where the food comes.

Click here to find a farmers market near you.