Since my last E-update, the Assembly
Committee on Jobs & the Economy held a public hearing on the Foxconn
project. The hearing lasted about 10 hours, and individuals from all sides
of the issue voiced their opinions. If you'd like to watch the hearing you
can do so
The next step in the process will be an
Executive Session in the Committee on Jobs & the Economy. We are currently
looking at ways we can improve the bill, and it is likely there will be
amendments presented for consideration and a vote at the hearing. The
tentative date for the Executive Session is next Monday or Tuesday.
A lot of new information has been presented
regarding the Foxconn project this week. The big headline from the
Legislative Fiscal Bureau memo being pushed in the media and by opponents of
the project is that Wisconsin will not "break-even" until around 2042. This
analysis however, does not factor all the other benefits of the project.
This is noted by the Legislative Fiscal Bureau later in the
should be noted that the analysis focuses only on the impacts of the
Foxconn project on the state treasury, but does not account for other
benefits to the state’s economy and residents. For example, based on the
assumption outlined above, the capital expenditure credit and sales tax
exemption would have a value of approximately $1.5 billion, but would
also induce private investment of $10 billion from Foxconn alone, for a
leverage ratio of $6.70 of private investment for each $1.00 of public
outlay. Likewise, the 17% payroll credit implies a leverage ratio of 5.9
to 1, just considering Foxconn’s payroll. The leverage ratios are even
higher if the indirect and induced jobs associated with the project are
considered. Most state expenditures do not result in private investments
of this nature. The project would also provide greater employment
opportunities for the state’s present and future workforce, and add a
new sector to the state’s manufacturing economy.
project has the potential to transform manufacturing in our state by adding
an entirely new sector. While the LFB memo provides important insights into
the cash flow of the Foxconn deal, it does not necessarily detail or depict
the overall economic benefit to be realized by the state. In addition to the
13,000 jobs directly created by Foxconn, it is estimated that the project
will create at least 22,000 indirect and induced jobs throughout the state.
Foxconn's annual supplier purchases are estimated at $4.26 billion in
supplier purchases annually, about one-third of which will be sourced here
in Wisconsin. These are jobs and investment that give individuals and
families the opportunity for good salaries, and give businesses the
opportunity to grow. The project is expected to have at least a $7 billion
economic impact, and will generate an estimated $181 million in state and
local tax revenues annually, including $60 million in local property taxes.
to the dollar figures, the Foxconn project can be a catalyst to attract new
people and businesses to the state. It provides the foundation to build a
new arm of technology manufacturing in Wisconsin.
last couple of weeks, I have received calls and emails from both supporters
and opponents on the proposed project. If you have thoughts on the issue I
encourage you to send me an email to let me know what you think.
Wisconsin Gets a Bump
Last week, Wisconsin's credit rating got a
Wisconsin won a one-notch credit ratings
upgrade to 'Aa1' from Moody's Investors Service on Friday despite the
state's fiscal 2018-19 biennial budget being overdue.
The action affects about $8 billion of outstanding general obligation
bonds, according to the credit ratings agency.
"The upgrade to 'Aa1' reflects the proven fiscal benefits of the state's
approach to granting and funding pension obligations when many other
states are experiencing stress from rising costs and heavy liabilities;
an economy that delivers steady but moderate growth; conservatively
managed budgets, and adequate liquidity," Moody's said in a statement.
While Wisconsin began its new fiscal biennium on July 1, its
Republican-controlled legislature has yet to pass a spending plan as
lawmakers debate how to fund transportation projects and consider a $3
billion package of incentives for a new LCD screen plant by Taiwan's
"We don't consider occasional late budgets as having a credit impact,"
said David Jacobson, a Moody's spokesman.
Root Beer Bash - Police Department Charity
Date and Time:
26th at 9:30 AM
Richard E. Maslowski Community Park
Check out the website for more details
Annual Pet Fair
Date and Time:
August 19th 9:00 AM - 4:00 PM
Location: Rotary Park off Fond du Lac Avenue
Join us at the 10th annual HAWS Pet Fair in
Rotary Park off Fond du Lac Ave. on both sides of the river August 19th,
2017. Food, raffles, vendors, demonstrations, Photography Portrait with
donation to HAWS, clippings, games and more.
Community Vibes Concert Series
Date and Time:
16th at 6:00 PM
Saturday June Band (Classic Rock) will be