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Updated on January 02, 2008
December 2003
Volume 20, Number 3

Inside This Edition

Front Page Article
Legal Matters
Education & Products
Web Wise
Public Policy Forum
Land Use Forum
Inside the WRA

 

Public Policy Forum

  Legislature Makes Major Progress on Economic Development Package

by Rick Chandler

Economic development and job creation are major issues facing Wisconsin in 2003 as the state and the nation are slowly recovering from a two-year recession. Beyond the immediate concerns caused by this low point in the economic cycle, many people are concerned by longer-term economic trends that have caused Wisconsin incomes to fall behind the national average and our growth rate to lag behind other states.

Governor Doyle outlined a wide variety of economic development proposals in September, while the Legislature has been working throughout the year to pass a comprehensive set of legislative initiatives. At the end of the Legislature's fall floor period in mid-November, these bipartisan efforts had resulted in agreement on several important pieces of legislation, with both sides preparing to pass additional measures in an extraordinary legislative session in December and January. The WRA has been working to support a number of specific economic development bills, in addition to encouraging the governor and Legislature to enact a broad-based package of legislation.

There are many interrelated issues that need to be addressed to improve economic growth and job creation in Wisconsin, including the following:

  1. Local development efforts - Local governments need to have tools to facilitate economic development and we need to reduce unreasonable burdens placed on economic development by local fees and state rules.
  2. Regulations - Obtaining permits for business expansions takes much longer in Wisconsin than in other states and the regulatory process is too complex and cumbersome in Wisconsin.
  3. Taxes - Wisconsin's overall tax burden is among the country's highest ten, and we have not been competitive with other states in key areas of business taxation.
  4. Capital investment and new business startups - Wisconsin has a lower rate of new business startups than most other states, due in part to the fact that we have had less venture capital and other early stage financing available to new businesses.
  5. Infrastructure - Wisconsin needs to have state-of-the-art infrastructure for energy, transportation and telecommunications.
  6. Workforce training and development - Wisconsin workers need training available to develop skills needed in the new economy.

The Legislature has acted on the following items to address these key economic development issues:
1. Local development efforts:

  • TIF reform package (SB305 and SB306) - expands the availability of tax incremental finance (TIF) districts for economic development and revitalization projects, including affordable housing and environmental remediation projects. It has passed the Joint Finance Committee and Senate. Legislative leaders and the governor have reached agreement to support this package. These bills are WRA priority items.
  • Transportation 233 rule update - revises the ability of the state Department of Transportation to halt, delay or modify development projects based on their hypothetical impact on future highway projects. A Joint Committee for Review of Administrative Rules hearing was held on October 29. This is a WRA priority item.

2. Regulations:

  • Job Creation Act of 2003 (AB655 and SB313) - adopts comprehensive reforms for Chapter 285 (air permit program), Chapter 30 (water permit program), Chapter 227 (general administrative rulemaking process) and other regulatory processes. It also states that fees imposed by local governments must have a reasonable relation to the services paid for by the fees. A Joint Finance Committee public hearing was held on November 12. This bill is a WRA priority item, especially the Chapter 30 and reasonable fees provisions.
  • SB 246 - Provides that permits are automatically issued if state agencies do not meet reasonable review deadlines (also known as "presumptive approval"). It has passed the Senate and has passed the Assembly with amendments. The bill is awaiting further action by the Senate.
  • AB267 - reduces regulatory burden on small businesses. It has passed the Assembly and Senate.
  • AB 228 - authorizes cooperative environmental regulation for businesses with good records. Has passed Senate and Assembly. Available for signing by governor.
  • AB 523 - streamlines the industrial development bond process. It has passed the Assembly.
  • Uniform Electronic Transaction Act (UETA) legislation - revises the state's electronic commerce statutes to facilitate use of electronic signatures and transactional platforms. Legislation is being drafted. This is a WRA priority item.

3. Taxes:

  • SB197 - adopts the single sales factor approach for allocating corporate income taxes to keep Wisconsin competitive with neighboring states. It has been passed and signed by the governor.
  • AB 507 - eliminates sales tax on fuel and electricity used in manufacturing to keep Wisconsin competitive with other states, especially for energy-intensive manufacturing businesses such as paper companies. It has passed the Assembly and Senate.

4. Capital investment and New Business Startups:

  • AB520 - allows more small technology businesses to use technology zone tax credits. It has been passed signed by the governor.
  • SB261 - creates tax incentives to encourage investments in early-stage growth companies. It has passed the Joint Finance Committee and Senate.
  • SB249 - expands CAPCO program to encourage more venture capital investment in Wisconsin companies. It has passed the Joint Finance Committee and Senate.

5. Infrastructure:

  • SB300 - streamlines regulations for adding electric generation and transmission capacity. It has passed the Senate and Assembly.
  • AB602 - stabilizes funding sources for the transportation fund. It has been passed and signed by the governor.

6. Workforce training and development:

  • AB626 - creates an income tax credit for training apprentices. It has passed the Joint Finance Committee and Assembly.

The efforts of the Legislature, in conjunction with the administration, have resulted in one of the most productive sessions in recent years on the economic development front. There has been a recognition that dramatic action is necessary to get Wisconsin growing at a rate that will allow us to maintain our high quality of life and provide fulfilling career opportunities for the future. Several important bills have already been passed or agreed upon, and the outlook is very good for the passage of additional legislation in December and early in 2004, including the WRA priority items.

Rick Chandler is a policy consultant with the WRA and former Department of Revenue Secretary and state budget director.

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  Who Do You Know?

by Joe Murray

For years, the Wisconsin REALTORS Association (WRA) has been regarded as one of the most powerful political advocacy organizations in the state Capitol. Currently 14,000 members strong, the WRA has members in every state Assembly and Senate district in Wisconsin.

While the WRA's clout may rank somewhat behind that of extremely large interest groups like the National Rifle Association, the trade unions, state employee unions, or teachers unions, our organization doesn't have to take a back seat to any group when it comes to the integration of effort by the leadership, local and state staff, and most importantly, rank-and-file membership. Thanks to your participation, REALTORS have a strong voice in the political process.

But we need your help to grow our political programs. Our goal for 2004 and beyond is to strengthen our grassroots organization to ensure a greater role in policy development at the state level.

In order to accomplish this goal, the WRA will implement the "Legislative Contact Team" (LCT) program. The LCT program is simple! We need REALTOR members who have a personal relationship with their state legislator (s), both state Senate and Assembly, to let us know who you are and which legislators you know.

What do we mean by personal relationship? Do you know your state Senator or Assembly member by his or her first name? Are you neighbors? Do your kids and legislators kids go to school together? Are you both members of the local Rotary Club? Did you serve in some capacity on their election or re-election committee? Have you contributed to their campaign?

In short, do you know your state legislator in a personal way beyond simple recognition of who they are? More importantly, when you explain the impact of specific legislation on your real estate business, will they listen? If you know your legislator like this, we ask that you contact your local government affairs director (GAD) or myself in Madison. Our goal is to identify WRA members in every state Senate and Assembly district in Wisconsin who agree to contact their state legislator on important issues affecting your business.

There are times when we ask all WRA members to contact their legislators and advocate for or against legislation. But we need to expand this program to insure that quality contacts regarding important legislation occur with all legislators when needed.

We will provide you with background information, talking points, phone or fax numbers and email addresses. When you contact your legislator, and your legislator knows who you are, you will be providing an important service not only to your business and your industry, but also your legislator and your state!

For more details please contact your local GAD or myself via e-mail at jmurray@wra.org or by phone at 608-241-2047.

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  Confidence Falls, But School Support Rises

by Mike Theo

If Wisconsinites are anything, they are optimistic realists. (That's not as much of an oxymoron as you might first think - just ask any Badger or Packer fan.) This truth was evident in the latest WRA Quality of Life survey as immediate economic concerns resulted in a decreased sense of optimism for Wisconsin citizens, but at the same time people had hope for the future. This hope is, in part, rooted in a rising support for our educational institutions.

Economy
The economy, jobs and health care costs were at the root of the decreased sense of optimism, with fewer than half (46 percent) of respondents saying things in Wisconsin are on the right track. Thirty-eight percent think things are on the wrong track and 15 percent aren't sure. While 62 percent of state residents said things were on the right track in their local community, that number was down from 74 percent in the spring. On a personal level, two out of five respondents expect their job situation to get worse in the next year, with citizens split on whether the economy will improve (29 percent) or get worse (34 percent). Forty percent say the job situation in their area will worsen in the future.

However, despite this pessimism over jobs, when asked more generally if things will get better, worse or stay the same, a more optimistic response was found with two out of five people (42 percent) saying things will improve for them in the next year, with only 16 percent saying things will get worse.

Schools
If state citizens are bearish on the economy, they are very bullish on the state's education system. Overall, our educational institutions at all levels have earned the support of state residents. Respondents think public K-12 schools, the university system and technical school system are doing a good job. On K-12 schools for example, 76 percent of respondents say they're satisfied with the quality of the schools in their area. Sixty-eight percent say they are satisfied with the quality of the instruction in their schools and the value they get for their education dollar.

Perhaps somewhat surprising in this era of anti-tax sentiment (especially the recent acute public animus toward property taxes) a majority of respondents say they would accept an increase in property taxes of $100 a year for initiatives such as increased teacher salaries, school safety and discipline, and computers. Strong majorities would support increases in property taxes to ensure smaller class sizes (66 percent) and for instruction in core curriculums (79 percent). But many citizens don't like using property taxes to pay for schools. Two in five citizens prefer to use a combination of property taxes and other sources, with one third wanting a whole different tax, other than the property tax, to pay for schools.

The QOL survey was conducted in late October, with a sample size of 600 respondents, and has a plus or minus of 4.3 percent.

For more details regarding the survey results, visit the Quality of Life website or contact Michael Theo at mtheo@wra.org.

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