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November 2011, Around the State

Around the State

Mon, Oct 31, 2011

CAPITOL REPORT
Legislature Convenes for Special Jobs Session
“Back to Work Wisconsin,” a special session of the state Legislature features an agenda that includes items to improve access to capital and loans, worker training, the regulatory process and also includes additional tort reform measures. However, noticeably missing from the session are measures to make more venture capital available for investors and to facilitate the development of the Gogebic Taconite iron ore mine in northern Wisconsin.

Included in the session will be items that create the framework for a high school vocational diploma, Lieutenant Governor Rebecca Kleeflisch told those attending a recent Wisconsin Manufacturers & Commerce luncheon in Waukesha. “The curriculum will have to be approved by the Department of Public Instruction,” Kleefisch said. “I can’t say right now that it will pass the Legislature. But if it does, I can guarantee you that the governor will sign it.”

Kleefisch said the administration has two other programs: Wisconsin Wins, modeled after Georgia Works where the state would help businesses offset the cost of training of new employees; and to increase money available for technical school training through the Department of Workforce Development from $2 million to $2.4 million.

State Plans for More Cuts
The Department of Administration is recommending state agencies plan for additional cuts, up to $300 million, to cover potential shortfalls in revenue as economic uncertainty continues. This figure includes $126 million more in possible reductions beyond what was included in the 2011-13 state budget passed in June. The UW System would be taking the biggest hit, with a proposed $65 million in cuts, on top of the $250 million decrease approved in the recent budget.

Walker Recall Plans Move Forward
The Democratic Party of Wisconsin has announced they will start efforts to recall Gov. Scott Walker on Nov. 15. With the assistance of the group United Wisconsin, who will begin circulating petitions, the party needs 540,000 signatures within 60 days. In anticipation of a possible recall, Walker’s Chief of Staff and former campaign manager, Keith Gilkes, has left the administration to spearhead a possible campaign.

Thompson Delays Announcement Until Spring
At a recent WisPolitics luncheon, former Gov. Tommy Thompson said he would wait until spring to formally announce his campaign to run for the seat being vacated by retiring Democratic Sen. Herb Kohl, but said he was “definitely” running. While Thompson waits to make a formal announcement, Rep. Assembly Speaker Jeff Fitzgerald officially joined the growing field vying for the seat. Other contenders include Democratic U.S. Rep. Tammy Baldwin and former Republican U.S. Rep. Mark Neumann.

STATEWIDE
Mixed Unemployment News for September
Numbers for September show a drop in unemployment from 7.9 percent in August to 7.8 percent for September. Overall, the state lost 900 jobs in September, with losses coming in manufacturing, business and professional services and retail trade. Healthcare picked up 3,000 jobs and construction saw an increase of 1,500 jobs for the month. 

Home Sales Up, Prices Down
Wisconsin home sales were significantly higher in September even as median prices dipped slightly from 2010 levels according to figures released by the Wisconsin Realtors Association. Existing home sales rose 17.7 percent in September compared to September 2010. Median prices fell 1.5 percent over the same period, however, it was the smallest monthly decline this year, as the first eight months saw prices fall on an annualized basis between 4.1 and 13.3 percent.

Huntington Expands into State
Huntington, an auto dealer finance company based in Ohio, is expanding services into Wisconsin and Minnesota. The company plans to hire staff to handle sales and underwriting and hopes to offer finance solutions to more than 400 auto dealers in Wisconsin and Minnesota.

Acuity Named No. 1
The annual Great Place to Work rankings rated Sheboygan-based insurance and financial services company Acuity as the No. 1 medium-sized company to work for in America. Other Wisconsin companies to make the cut included: Badger Mining Corporation, FatWallet and Kahler Slater in the small-size company category; 4imprint ranked sixth in the medium-sized category. This national list features companies with a workforce between 25 and 999.  Hundreds of small and medium companies applied for a spot on this year’s list. Applicant companies undergo a rigorous assessment that includes administering the Great Place to Work Trust Index employee survey and completing an audit of the company’s culture.

Judges Needed for Contest
Organizers of Wisconsin Yes!, a statewide youth business plan contest, are seeking judges to review plan entries. The contest features several phases, the first beginning with a 250-word abstract. Until the final phase, all judging takes place online. More details on judging are available at wisconsinyes.com or email kfischer@wisconsintechnologycouncil.com by Nov. 21.
 
State Building Projects Announced
The State of Wisconsin Building Commission has approved a number of projects across the state, which include: expansion of Marquette University Dental School; design reports for a new $52 million School of Nursing at UW-Madison and a $50 million School of Freshwater Sciences at UW-Milwaukee; and released funds for planning of renovations to UW-Stout’s Harvey Hall and UW-Oshkosh Clow Hall.

Report Offers Ways for Growing Economy
Growing Wisconsin, a recently released report commissioned by the National Chamber Foundation and prepared by The Praxis Group offers suggestions for improving the state’s business climate. The report was presented to Gov. Walker by Wisconsin Manufacturers & Commerce as part of their 100th anniversary celebration. Recommendations include:

  • Implement tax structures targeted at entrepreneurship and job creation.
  • Streamline regulatory processes to build up the state’s existing economic strength.
  • Invest in improving worker knowledge and training.
  • Modernize government and improve efficiency to reduce compliance costs for small businesses. Focus spending on critical investments like training and infrastructure that promote growth.
  • Protect and defend manufacturing — 33 percent of the Wisconsin economy — to promote job creation in all sectors.
  • Promote assistance for manufacturers for exports, training and tax relief.
  • Improve the state’s entrepreneurial and venture capital investment systems to support small businesses and promote start-ups that create the most jobs.
  • Promote the livability aspects of Wisconsin’s mid-size communities to attract younger, mid-career families to the state.
  • Build constructive lines of dialogue between government, business, education and workforce leaders to efficiently and effectively implement needed policy changes.


SOUTHWEST
BUSINESS BRIEFS
HospiceCare Changes Name
HospiceCare Inc. has changed its name to Agrace HospiceCare. Research showing public confusion between the nonprofit and two other for-profit  hospice care businesses that recently entered the Madison market led to the name change. “Not having an identifier in front of HospiceCare, like ‘Agrace,’ made it difficult for people to identify our organization,” says Agrace HospiceCare Vice President of Public Affairs Dan Chin. Respondents also found that the “Inc.” sounded corporate, causing some to assume HospiceCare was a for-profit organization.

Reinhart Brings 50 Jobs to 
La Crosse
Reinhart FoodService has announced expansion plans that will create up to 50 jobs in La Crosse and will include leasing of a new facility. The company delivers wholesale products to over 40,000 customers including independent and chain restaurants, hotels and sporting venues.  In addition to the new jobs, the company will retain 164 existing positions locally. Reinhart is eligible for up to $700,000 in economic development tax credits for the expansion project.

Veridian Lays Off 21
Veridian, Dane County’s largest homebuilder, laid off 21 employees in October, almost half of its staff. The layoffs  are reported to be office and management positions. While 58 housing starts for Dane County in August represented an increase of 18 percent over the same time frame in 2010, they are still just a fraction of numbers posted prior to the recession where 2003 – 2005 new home starts for the month of August ranged from 180 to 220.

Frugal Traveler Visits Madison
New York Times Frugal Traveler Seth Kugel is visiting Madison based on an online survey where he invited readers to choose the destination of his next adventure. Voters made Madison the overwhelming choice, beating out Montreal, New Orleans and Charleston, S.C. Look for the blog, which describes itself as “Seeing the World on a Budget,” detailing his visit to appear soon at frugaltraveler.blogs.nytimes.com/.

Lucigen Receives Grant
Middleton-based biotech company Lucigen has received two grants totaling $350,000 from the National Institutes of Health. The awards will be used for researching and developing improved tools for genetic sequencing applications and to develop more affordable and simple tools to help researchers study data from genes and proteins within individual cells.

SOUTHEAST
BUSINESS BRIEFS
Quad to Close Out-of-State Plants
Quad/Graphics is closing two plants in Richmond, Va. and Stillwater, Okla. Combined, the plants employ 365 people. Quad/Graphics says the closings are part of a plan to integrate facilities after the 2010 acquisition of Worldcolor.

Former Chrysler Site Plans Move Forward
Ownership of the Chrysler engine plant site in Kenosha is being transferred to ensure cleanup of the site under an agreement announced by the state Attorney General’s office. Everything on site will be demolished and sold off. Ownership of the property will then transfer to the City of Kenosha or state, based on Kenosha’s direction. Working with the EPA, $10 million in funding will be available for resolving environmental problems on-site, making way for the eventual redevelopment of the 100-plus-acre property.

MGIC Posts Larger Losses
MGIC Investment Corporation, the largest mortgage insurer for Freddie Mac and Fannie Mae, reported higher than expected losses for the third quarter as costs from mortgage delinquency claims increased. The Milwaukee-based insurer reported a loss of $165.2 million or 82 cents per share for the third quarter, compared with a net loss of $51.5 million or 26 cents per share for the same quarter a year ago.

Social Media Use by Non-Profits Studied
Clear Verve Marketing, LLC and McGrath Marketing have released the results of a research project aimed at understanding the social media habits of nonprofit organizations in southeastern Wisconsin. More than 100 organizations participated in the study; results are available at www.wi-nfpsurvey.com. Among the findings:

  • 90 percent of participants use social media, but only 36 percent have a policy regarding its use.
  • 13 percent of participants tried using social media, but discontinued its use. The most common reason cited for this was lack of resources.
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Participants cited a number of challenges with using social media including learning how to use the medium and keeping messages consistent.

“Nonprofit organizations have a particular interest in social media because of their limited resources. We hope the results of this survey will help the participating organizations and other not-for-profits learn how to maximize the benefits and deal with the challenges of social media,” stated Christina Steder, president of Clear Verve Marketing.

R.A. Smith National (Brookfield) Installs Solar Array
R.A. Smith National recently installed a 19.7 KW, 84-panel solar array on the roof of its Brookfield headquarters. The Greater Brookfield Chamber of Commerce recognized R.A. Smith National’s alternative energy project at the second annual Sustainable Brookfield event in September. The event recognizes and celebrates businesses in the Brookfield area that are engaged in sustainable business practices.

NORTHEAST
BUSINESS BRIEFS
DNR Reconsiders Mega Farm Permit
The DNR is reconsidering one of several permits, which would allow a mega dairy with 4,200 cows to be built near Coloma due to concerns over water quality. Farm owner Milk Source of Kaukauna says two studies concluded no adverse affect on the air or water quality, however, a recent study by a UW - Stevens Point hydrogeologist says the dairy will reduce local water supplies.

Badger State Games Back On
The Wausau/Central Wisconsin Convention and Visitors Bureau has finalized the purchase of the Badger State Games from the Wisconsin Sports Development Corporation. The winter games will be held Feb.3-5, 2012 in the Wausau area and will feature seven events: Alpine skiing, billiards, bowling, curling, figure skating, indoor archery and cross country skiing; down from 19 events held in previous years. Summer games were included in the purchase and will remain in the Fox Cities for the near-future. 

Menakaunee Harbor Slated for Clean Up
The City of Marinette and the DNR are partnering to improve the quality of Menakaunee Harbor by removing 40,000 cubic yards of contaminated sediment at the mouth of the Menominee River. The project will cost $1.1 million, with the DNR reimbursing the city for 65 percent of that cost. Officials hope the project leads to improved habitat, water quality, recreation and economic development.

Bids Awarded for New Visitor Center and Museum
Five companies have been awarded contracts to participate in the construction of a new 38,000-square-foot visitor center and Wesley W. Jung Carriage Museum at the Wade House historic site in Greenbush. General contractor on the project will be C.D. Smith Construction; subcontractors include Ahern-Gross Plumbing, Fireline Sprinkler Corp., J&H Heating and Sprecht Electric Co. of Sheboygan. Uihlein-Wilson Architects designed the structure.

Veterans Clinic Construction Begins
Construction on a new veteran’s clinic in Green Bay has begun. The 161,000-square-foot facility will serve 20,000 veterans and replaces the current 11,000-square-foot building serving 3,500 patients each year.  Milwaukee-based Summit Health is general contractor on the $60 million project which is scheduled for completion in 2013. The facility will include ambulatory surgery, a specialty clinic, women’s clinic, mental health department and diagnostic imaging.

NORTHWEST
BUSINESS BRIEFS
Johnson Controls to Close Hudson Plant
Johnson Controls is closing a plant that produces car seats in Hudson, putting 51 out of work. Layoffs will begin in December. The closing comes in response to news that the St. Paul Ford Ranger factory where the seats are shipped to is closing. 

IPC World Cup Comes to Cable
Telemark Resort will host the 2012 IPC World Cup January 23-30. The Cable Area Chamber of Commerce received a $20,000 grant from the Department of Tourism to help secure the event. The week-long event is expected to bring $2 million in economic impact to the area and $1 million in earned media exposure.

MEC Expansion
Mayville Engineering Company Inc. (MEC) has purchased two facilities in Neilsville to expand its Fabricating Specialists division, which manufactures form tube and welded assemblies. Buildings include the former Regal Beloit structure and a facility currently leased by MEC, both located on Industrial Park Drive. 

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