Unemployment was up in the first month of this years, and 2009 saw massive job losses. Unemployment in Wisconsin rose slightly in January to 8.7 percent, up two-tenths of a percent from December, according to state figures. The Wisconsin Department of Workforce Development reported Thursday that the unemployment rate was 1.6 percentage points higher than a year ago, and that despite gaining 5,600 jobs in January, still finished the month with about 113,000 fewer jobs than a year ago. The national unemployment rate for January was 9.7 percent up two full points from January of 2009.

While Governor Jim Doyle accepted an award at Marian University in Fond du Lac, he used the event as a platform to talk about how Wisconsin will emerge from the downturn in the economy. Doyle says the state will prosper as there is  investment into reaching quality. “Quality is not about chasing low wage jobs it’s about competing at the high end for high, for highly engineered, highly sophisticated products,” said Doyle.

The governor was recognized for his efforts to keep Mercury Marine from consolidating manufacturing operations to Stillwater, Oklahoma. At the Thursday gathering, he said the difficult decisions to retain Mercury will be proven correct in five or ten years when energy-conscious Americans are buying hybrid engines made from the company.

Doyle took a swipe at California’s “Happy Cow” saying a reinvestment in the state’s dairy industry has led to expanded production of Wisconsin milk, which is showing up in the competition between the two states.

Gov Doyle (:12)

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Doyle also said the state needs to continue to offer a quality education to its students and keep investing in more “Green Energy” jobs.

Contributed by Bob Nelson-KFIZ

The state’s largest business group says thousands have come out against the global warming bill. In an attempt to let state legislators know how strong the opposition was to the governor’s global warming bill, Wisconsin Manufacturers and Commerce contacted their members with an online petition. Nearly a thousand signatures were collected in the first day, with around 3,000 received in four business days, according to WMC Environmental Policy Director Scott Manley who calls the response “very significant.”

The legislation seeks to have 25-percent of the state’s energy from renewable sources by 2025. Manley says it would take double digit utility rate increases to pay for the mandate.

Supporters of the bill say it will create green jobs through retrofitting homes and new energy technology. Manley says those temporary positions would be created at the expense of other industries suffering.

“Anytime you increase the cost of energy in Wisconsin you increase the cost of doing business in Wisconsin,” he says. Manley says manufacturing would especially be hit hard in the state.

Fond du Lac was one of the stops this past weekend as Milwaukee Mayor Tom Barrett campaigns for governor. Barrett, a former Congressman, said his experience running the state’s largest city and in the nation’s capitol give him the experience to lead Wisconsin. The Democratic candidate’s top priority is creating more jobs, which he said Milwaukee has had some success in doing as of late.

Mayor Barrett (:16)

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Job growth is a message being echoed by former Republican Congressman Mark Neumann, who has just launched his first TV spot in the governor’s race. The ad focuses on his background as a businessman in spurring economic development.

Neumann will face Milwaukee County Executive Scott Walker in the GOP primary. While speaking at weekend event hosted by the Dane County Republican Party Walker plugged his fiscal leadership. Walker said he cut Milwaukee County’s debt and the county amassed a budget surplus last year, while the state faced its largest budget deficit in history.

Bob Nelson-KFIZ contributed to this report

Wisconsin bankers and realtors say they’re happy to have WHEDA ready to lend again.

The Wisconsin Housing and Economic Development Authority plans to offer loans again on March 1st, after not providing new financing for nearly 18-months. Wisconsin Mortgage Bankers Association President Steve Hansen says it’s good to have that option back on the table for first-time home buyers, since many potential buyers may not be able to consider a purchase without it.

The WHEDA program allows buyers with good credit to access 100-percent financing and a 30 year fixed rate mortgage. Hansen says that’s often a much better option for those who haven’t been able to save up a large down payment.

The loans can be used with the eight-thousand-dollar home buyer’s tax credit, which expires April 30th. John Horning with the Wisconsin Realtors Association says that should generate interest very quickly, since buyers will have a limited window to close on a home. He’s anticipating a busy spring for realtors across the state.

Hansen says members have already been getting calls from potential buyers who are asking about the WHEDA program.

AUDIO: Andrew Beckett reports (1:11)

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A state program designed to help first-time home buyers says it’s ready to begin lending again.

After nearly 18 months of not issuing new financing for low and moderate income buyers, WHEDA officials say they will start offering loans again on March First. Executive Director Antonio Riley says the loans will be available through a partnership with Fannie Mae, and Wisconsin will be the first state to offering the program.

Under the program, Riley says there will be fewer fees and more potential home buyers should be able to qualify due to higher income limits being put in place. Buyers with good credit will also qualify for 100-percent financing and low closing costs. WHEDA will also begin offering a job loss payment protection program, which will cover up to six months of mortgage payments if a borrower becomes involuntarily unemployed.

The loans will offer a 30-year mortgage with a fixed interest rate.

Riley says the program will have some restrictions in place. The most notable is that the loans cannot be used to help purchase condominiums. WHEDA officials say that guideline was put in place by Fannie Mae.

WHEDA has budgeted nearly $180 million for home loans in the first year of the program. Although, Riley says they hope to expand their offerings as capital markets improve.

AUDIO: Andrew Beckett reports (1:01)

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Wisconsin should see some economic recovery beginning this spring, according to a report from the state Department of Revenue. “It suggests that for 2010 we’re expecting Wisconsin to basically outperform the nation,” says economist John Koskinen, who authored the report. “We’re expecting employment growth to start picking up second quarter. That is to say we will start adding jobs the second quarter of this year.”

Which runs from April through June. Personal income is expected to grow 3.3 percent in Wisconsin this year. “It beats going to down, like it was last year,” notes Koskinen. “I like to make a distinction between what an economist calls recovery, which is basically things are going up, and what everybody else understands, which is when do we get back to where we expect to be,” Koskinen explains. “We expect, in terms of outcome, to recover sometime next year, and in terms of employment it won’t be until 2012.”

John Colbert, WIBA

Home sales in Wisconsin rallied in the fourth quarter of last year.

The number of sales of existing homes for 2009 increases to 2008 levels. That’s according to the year-end analysis from the Wisconsin Realtors Association.

“The fourth quarter of ‘09 shows a dramatic increase in sales over the fourth quarter of ‘08 with a 25% increase in sales, which is a pretty high number in the real estate industry.”

The group’s president Bill Malkasian says the spike in sales could be attributed to the impact of the first time home buyer’s tax credit, which had originally expired on Nov 30, causing many would-be buyers to act quickly before they missed their opportunity. That credit has since been extended to April 30th of this year.

Malkasian says other factors for the jump in sales were low interest rates and many houses from which to choose. The report shows home prices were down 7.7% last year compared to the year before — to $143,000. However, Wisconsin prices declined less than other areas of the country, because we never had the inflated bubble that other states had.

While sales jumped in the second half of the year, the first half was down significantly. In the end, Malkasian says, it all evened out — 2009 home sales were unchanged from 2008. Sellers have reason to be optimistic in this coming year. He predicts 2010 is going to be a good year. Visit WisconsinHomeBuyer.org for more information.

Jackie Johnson report 1:44

Unemployment benefits will end sooner than expected for 100,000 Wisconsinites. At first, it was announced told they would run out at the end of April. But Monday, state workforce development spokesman John Dipko said thousands of people are in federal extensions that will run out on February 28th.

About a quarter-million Wisconsinites are now getting jobless benefits and the ending dates for those benefits depend on the types of programs they’re in, and how long they’ve been getting payments. Wisconsin is limited to 93 weeks of unemployment pay. The state lost its eligibility for longer benefits, after the average jobless rate for the last three months dropped below 8.5 percent. It’s now at 8.3. Governor Jim Doyle and 30 Democratic legislators have urged Congress to extend the benefits.

Bob Borremans of the Southwest Wisconsin Workforce Development Board says there are not enough jobs in places like Rock County where the General Motors plant in Janesville and related suppliers closed just over a year ago.

Around 104,000 Wisconsinites could lose their unemployment benefits by the end of April and state lawmakers have asked Congress to extend jobless payments and federal health assistance through the end of the year. Four Democrats from southern Wisconsin, including Assembly Speaker Mike Sheridan, told US Senate Finance Committee chairman Max Baucus that the job market has not rebounded.

The state’s workforce development agency sent out letters to 8,000 people, saying their benefits will end in a few weeks. Spokesman John Dipko says the department will send similar notices to about 1,500 recipients a week. They list other options for getting assistance with health care, food, housing, job searches, and training. Wisconsinites can get up to 93 weeks of unemployment benefits, after Congress granted several extensions during the recession.

The state has lost 163,000 jobs over the last year, and its unemployment rate is now 8.7 percent.