Jobs for the Future

Policy Agenda
2011-2012

A Vision for Economic Renewal: Creating Better Jobs and a Brighter Future for Our Families and Our Communities

WMC: CELEBRATING 100 YEARS OF WINNING FOR BUSINESS!

1911-2011

JOBS FOR THE FUTURE

Policy Agenda
obs for the Future is an ambitious policy agenda aimed at fostering economic renewal and job creation for our state. The goal is to position Wisconsin to lead the way out of the current recession, creating a prosperous future for our families and our communities.

Unfortunately, when you compare the 50 states, Wisconsin does not look very attractive from a business perspective. Most independent rankings put Wisconsin in the bottom ten worst business climates in the country. These rankings appear in various national business publications, which contribute to a national perception that Wisconsin is not a competitive state in which to do business. As a result, improving our overall business climate needs to be a top priority of policy- makers. We must move aggressively to address the issues that undermine our competitiveness. Adopting the policies outlined below will improve the business climate by reducing the costs and barriers to business expansion and job creation, imposed by government. We must begin now to build a stronger economy for our families, our communities and Wisconsins future.

FOSTERING A COMPETITIVE BUSINESS ENVIRONMENT

The current economic downturn is expected to stiffen global competition, as companies and nations strive to position themselves to lead the economic recovery. To survive in this environment, Wisconsin businesses are working to develop new, innovative products and processes, improve quality, cut costs and increase productivity. Business leaders seek to partner with policymakers to build on past efforts and further strengthen our economic environment to promote investment in Wisconsin job creation. To accomplish this objective, we will work with the Governor and the Legislature on the following initiatives:

1. Foster a Competitive Regulatory Environment

A consistent regulatory environment will allow Wisconsin businesses to compete on a level playing field with their counterparts in other states. To accomplish this goal, we should attempt to harmonize regulatory statutes and administrative rules with those imposed under federal law and in competitive states.

2. Enhance Fairness and Predictability in Our Legal System

We should attempt to harmonize Wisconsins legal system with the system in other states, in order to remain competitive and promote investment and job creation. Specifically, we should make the rules regarding expert testimony consistent with those of the majority of states, adopt comprehensive product liability reforms, limit punitive damage awards, and eliminate joint and several liability.

3. Enhance Business Competitiveness

We should strive to make Wisconsin businesses more competitive in national and world markets by reducing the tax burden. Specifically, we should reduce and make uniform the top corporate and personal income tax rates.

4. Establish a Pro-Jobs Culture

In order to make all of state government an effective partner in growing the economy and creating jobs, we should work to change the command and control culture within state regulatory agencies. Agency personnel should be actively helping businesses get necessary permits, fostering economic development and job creation.

FOSTERING A COMPETITIVE BUSINESS ENVIRONMENT (contd)

5. Ensure Uniform Employment Regulations
Wisconsins essential employment regulations governing issues such as wages and benefits should be applied fairly and consistently on a statewide basis. State law should preclude the adoption of a patchwork of confusing and conflicting employment regulations by local units of government, and should be consistent with the employment laws of competitive states.

6. Promote Quality Health Care

Health care costs are a major concern to everyone in Wisconsin. To address this issue, we should focus our efforts on improving the current private sector health care delivery system and controlling costs through wellness initiatives, disease prevention, and investment in health information technology systems that improve patient safety, drive quality and enable efficient delivery of health care. We also should help consumers make better health care decisions by improving the collection and analysis of health care outcome data, making quality transparent and encouraging consumers, business purchasers and insurance companies to direct resources to providers who demonstrate a commitment to patient safety, improving quality and reducing unnecessary or inappropriate treatment.

IMPROVING PUBLIC SYSTEMS

A stable and effective government is essential to the health of our economy, our communities, and our quality of life. We rely on government to provide needed community services, education, infrastructure, an appropriate regulatory framework, and to care for our neediest citizens. The challenge is to deliver these fundamentals at a reasonable cost to keep our level of taxation fair and competitive. We should constantly look for ways to improve government efficiency and effectiveness to ensure Wisconsins cost of government is in line with other states. It is equally important to ensure our level of business taxation does not make us uncompetitive or unattractive to new business investment and resulting job creation. To accomplish these objectives, we seek to partner with the Governor and the Legislature on the following initiatives:

1. Encourage Balanced Budgeting

Encourage balanced budgeting through adherence to generally accepted accounting principles, and adequately fund the budget-stabilization fund to address the problem of fluctuating state revenues.

2. Control Property Taxes

Control property taxes imposed by municipalities, counties, technical college districts and other special districts, allowing for reasonable growth while keeping Wisconsin competitive with other states.

3. Encourage Consolidation
Encourage and facilite the consolidation of local government units and school districts. Encourage police, fire, utilities, and other government services to cooperate, collaborate and possibly consolidate to improve effectiveness and lower costs.

4. Manage Benefit Costs

Provide school districts, state, and local governments with maximum flexibility in managing costs associated with health care and retirement plans, and encourage them to be competitive with the best plans available in the private sector.

5. Reduce Cost Shifting

Support sufficient reimbursement for hospitals and clinics under the existing Medicaid program, and the leveraging of the state's fair share of federal matching funds in order to reduce the cost shift that currently occurs to patients and private insurers because of underpayment in that program.

IMPROVING PUBLIC SYSTEMS

6. Improve Public Accountability

(contd)

Improve public accountability in government by ensuring elected officials are ultimately responsible for approving new regulations, and that such regulations are explicitly authorized by the legislature.

7. Encourage Efficiency
Encourage a thorough examination of efficiency in government and implementation of lean principles and programs to improve the efficiency and effectiveness of government service and reduce costs.

PROMOTING INNOVATION AND JOB CREATION

A strategically focused economic development partnership will be necessary for Wisconsin to lead the economic recovery and create meaningful, well-paying jobs for our citizens. Transferring academic research into useful products and new businesses will create new jobs. Using the tax code to encourage investment in Wisconsin companies will create jobs. Aligning our diverse economic development programs and incentives to more effectively respond to the needs of companies looking to locate or expand here will help grow our economy. A cooperative public/private partnership focused on investing in innovation and job creation will lead to better jobs for our families, our communities and Wisconsins future. To accomplish this objective, we seek to partner with the Governor and the Legislature on the following initiatives:

1. Encourage Economic Development

Restructure the Department of Commerce and consolidate Wisconsins various economic development programs to improve efficiency and effectiveness. Align programs and strategies by establishing a single point of contact across all agencies for new business prospects, and encourage regional economic development strategies that build on a regions economic strength.

2. Enhance Tax Incentives

Economic development tax credits should be transferable, tradeable, and refundable to maximize their value, especially for start-up companies. We should also consider providing other incentives to attract new businesses and encourage existing business to expand in Wisconsin.

3. Encourage Reinvestment in Wisconsin

Grow existing businesses and create jobs by restoring the 60 percent exclusion for capital gains.

4. Accelerate Technology Transfer

We should work to accelerate the pace of technology transfer from Wisconsins public and private universities to harness the economic benefits of academic research and development, transformed into useful patents and start-up companies.

INVESTING IN OUR PEOPLE

For Wisconsin companies to successfully compete in a global economy, they must continually seek to add value to products and services through innovation and the application of higher level knowledge and skills. As a result, a resurgent Wisconsin economy depends on the availability and retention of an increasingly trained, educated and diverse workforce, with the flexibility to creatively adapt to the changing needs of the economy. Policymakers should make investments in Wisconsins public educational institutions from the college and university level through technical colleges, the K-12 system and incumbent workforce training programs a key priority. To accomplish this objective, we seek to partner with the Governor and the Legislature on the following initiatives:

1. Enhance Educational Achievement

To expand opportunity and develop the workforce of the future, we should work to enhance educational achievement in the K-12 system. This can be accomplished by: Focusing resources to develop strong curriculums in science, technology, engineering and math. Fostering the development of advanced placement programs with colleges, universities and technical schools. Supporting measurable evaluations and accountability standards for students, teachers and schools, and improve public access to evaluation data. Expanding educational options, including the development of charter schools and public/private school choice programs in communities that desire them.

2. Encourage Personal Improvement

The workforce of the future will need the higher level knowledge and skills provided by a robust post-secondary public and private educational system. Wisconsin can expand opportunity and encourage personal improvement by: Ensuring the University of Wisconsin has funding appropriate to, in a cost-effective manner, fulfill its mission of fostering a climate for economic growth through research, technological advancement and increasing levels of educational attainment. Ensuring the Wisconsin Technical College System has funding appropriate to, in a cost-effective manner, fulfill its mission of training the next generation workforce. Providing greater flexibility to UW campuses and Wisconsin Technical Colleges in setting enrollment and tuition levels, and greater autonomy in managing capital construction projects and operations at individual institutions. Supporting Wisconsins public and private colleges and universities by enhancing student financial aid. Promoting business and education partnerships in research and training strategies as a means of advancing economic development.

INVESTING IN OUR PEOPLE (contd)

3. Enhance Employment Training Opportunities
In a rapidly changing and highly competitive global economy, there is a need for continuous workforce training and retraining directed by employers. Improvement can be facilitated by consolidating and rationalizing Wisconsins numerous employment training programs to improve efficiency, effectiveness and responsiveness to specific employer needs.

INVESTING IN FUNDAMENTALS
A resurgent economy depends on the effective movement of goods, services and information to facilities and markets in other states, and around the world. To be competitive, Wisconsin businesses need: an efficient transportation network of roads, ports, rail lines, airports, and mass transit to move products and people; a robust communications infrastructure to move information and facilitate trade; and an adequate and affordable energy infrastructure to fuel economic growth. Government plays a fundamental and necessary role in improving and maintaining the critical infrastructures that undergird the economy. In order to position Wisconsin to lead the economic resurgence, we need to make investment in the fundamental infrastructure of our state a key priority for public resources. To accomplish this objective, we seek to partner with the Governor and the Legislature to promote the following initiatives:

1. Maintain and Improve Transportation Infrastructure

To facilitate the efficient flow of goods and services, Wisconsin must maintain and improve its transportation infrastructure by drawing on dedicated revenue streams which should be devoted solely to this purpose. Sustainable revenue sources should be identified, including revenue streams, that can continue to support infrastructure investment in the future as our reliance on traditional motor fuels declines.

2. Encourage Energy Efficiency and Clean Energy Technology

A ready supply of clean, reliable, low-cost energy is essential to maintain a strong Wisconsin economy. We should promote energy efficiency, conservation, investment in biomass and other renewable energy with appropriate incentives, and encourage research and development of clean energy technology by providing tax credits, grants or other incentives. At the same time, we should repeal the virtual moratorium on nuclear power plants so that nuclear power may be considered a safe and clean energy option for the future.

3. Facilitate Electronic Commerce

To foster economic development and e-commerce, as well as expand educational opportunities, Wisconsin should encourage the deployment of broadband services in underserved areas through the use of direct grant monies, bonding authority or other financial incentives.

BENCHMARKING SUCCESS
COMPARING WISCONSIN TO HIGHLY COMPETITIVE STATES
Florida Population Growth 2000 2007 1 Employment Growth % 1998-2008 2 High Tech Employment Per 1000 Workers 3 Union Membership % of Total Employment 2 State and Local Tax as % of Income 4 Per Capita Income Tax (Individual) 4 Per Capita Income Tax (Corporate) 4 Average Electric Bill for Industrial Customers 5 Per Capita Defense Spending 6 Per Capita Venture Capital Investment 7 Regulatory Environment 8
1 2 3

Georgia
% / Rank

North Carolina
% / Rank

Texas
% / Rank

Utah
% / Rank

Virginia
% / Rank

Wisconsin
% / Rank

% / Rank

13.7% / 7
% / Rank

16.0% / 4
% / Rank

12.2% / 9
% / Rank

14.1% / 6
% / Rank

18.0% / 3
% / Rank

8.6% / 15
% / Rank

4.3% / 30
% / Rank

20.0% / 7
# / Rank

11.6% / 20
# / Rank

11.3% / 21
# / Rank

19.0% / 8
# / Rank

23.8% / 5
# / Rank

13.8% / 17
# / Rank

5.8% / 39
# / Rank

40.97% / 29
% / Rank

49.14% / 19
% / Rank

43.95% / 24
% / Rank

55.75% / 15
% / Rank

57.22% / 13
% / Rank

90.95% / 1
% / Rank

34.10% / 33
% / Rank

5.9% / 40
% / Rank

4.4% / 47
% / Rank

3.0% / 50
% / Rank

4.7% / 46
% / Rank

5.8% / 41
% / Rank

3.7% / 49
% / Rank

14.3% / 14
% / Rank

10.0% / 38
$ / Rank

10.3% / 32
$ / Rank

10.5% / 29
$ / Rank

9.2% / 45
$ / Rank

11.0% / 19
$ / Rank

9.8% / 41
$ / Rank

11.6% / 11
$ / Rank

$0 / 44
$ / Rank

$924 / 23
$ / Rank

$1,111 / 12
$ / Rank

$0 / 44
$ / Rank

$960 / 18
$ / Rank

$1,330 / 8
$ / Rank

$1,131 / 13
$ / Rank

$131 / 31
$ / Rank

$107 / 41
$ / Rank

$173 / 20
$ / Rank

$0 / 47
$ / Rank

$149 / 28
$ / Rank

$166 / 23
$ / Rank

$165 / 24
$ / Rank

$4,367 / 38
$ / Rank

$10,675 / 20
$ / Rank

$12,279 / 17
$ / Rank

$4,171 / 39
$ / Rank

$3,491 / 43
$ / Rank

$15,463 / 11
$ / Rank

$18, 551 / 9
$ / Rank

$1,091 / 28
$ / Rank

$1,389 / 20
$ / Rank

$1,119 / 26
$ / Rank

$1,674 / 12
$ / Rank

$1,576 / 16
$ / Rank

$6,024 / 1
$ / Rank

$521 / 44
$ / Rank

$36.56 / 18
Rank

$51.13 /15
Rank

$51.05 / 16
Rank

$65.71 / 10
Rank

$78.25 / 8
Rank

$63.25 / 12
Rank

$17.66 / 30
Rank

25

3
5 6 7

10

11

37

US Census Bureau US Department of Labor, Bureau of Labor Statistics American Electronics Association: Cyberstates Report 4Bureau of Economic Analysis and US Census Bureau, Compiled by Congressional Quarterly

US Department of Energy Energy Information Administration US Department of Defense Price Waterhouse Coopers Money Tree Survey 8Forbes: Best States for Business

WMC is a business association dedicated to making Wisconsin the most competitive state in the nation. Currently, the association has nearly 4,000 members that include both large and small manufacturers, service companies, local chambers of commerce and specialized trade associations. Promoting a healthy business climate since 1911, it is a merger of the Wisconsin Manufacturers Association, the State Chamber of Commerce and the Wisconsin Council of Safety.