Lasee's Notes
 July 27, 2017

Lasee's Notes is a way for me to communicate directly with you on key issues of our day
and to champion limited government, lower taxes, and individual liberty.
How we respond to these issues today, will affect the direction of our state and nation tomorrow.

I look forward to hearing from you about the issues of concern to you. Please feel free to contact me, Sen.Lasee@legis.wisconsin.gov or (608) 266-3512. If you are planning to be in Madison, please visit, I look forward to seeing you at the Capitol.

So What's In It For Us?



 


On Wednesday at a White House press conference Foxconn Technology Group Chairman Terry Gou announced that the company will be building a 20 million square foot Foxconn campus in Southeastern Wisconsin. The new Foxconn campus will build Liquid Crystal Display (LCD) screens that will used in everything from family televisions and cellphones to aircraft systems. The new expansion, expected to be operational by 2020, will employ 13,000 with an average salary of $53,875, plus benefits. The announcement was followed by remarks from Governor Walker, Congressman Ryan, Vice President Pence, and President Trump, who all mentioned how Wisconsin is the perfect fit for this $10 billion investment by Foxconn.
 

That’s great and all for Southeastern Wisconsin but Racine and Kenosha counties are a long way from the 1st Senate District. It’s not like someone going to commute from Sturgeon Bay to Kenosha for a job every day. And while that’s true, the economic impact of Foxconn’s investment in Wisconsin is something that is going to be felt statewide.
 


In addition to the 13,000 jobs directly created by Foxconn, along with the 10,000 construction jobs over the next four years to building the new campus, the project is expected to create at least 22,000 indirect jobs throughout the state. Foxconn is to make $4.26 billion in supplier purchases annually, about one-third of which will be sourced within Wisconsin. Northeastern Wisconsin with two interstates and the ability to ship goods via Lake Michigan to Southeastern Wisconsin is a very good, viable option for many of those 22,000 new jobs and supplier purchases. 
 

Ernst & Young, one of the world’s “Big Four” accounting firms, estimates Foxconn’s expansion into Wisconsin will have at least a $7 billion annual economic impact on the state. A $7 billion impact in our state is one that will be felt statewide.
 


Foxconn didn’t magically pick Wisconsin because they like brats and the Packers. The company worked with Governor Walker, local, state and national officials, on a performance based incentive package that will have to be passed by the state legislature.  While the official bill for the incentive package hasn’t been released yet, some of the provisions have been released. All of the incentives offered by the State of Wisconsin are tied to Foxconn’s ability to perform and create jobs. If Foxconn fails to create jobs or invest capital into Wisconsin all incentives and tax credits are null and void. The incentives are projected to cost between $200 million and $250 million a year. The tax credits Foxconn could earn could be as high as $3 billion over 15 years. When the legislature takes up the special session bill it is important that we make sure the taxpayers are getting a good return are their investment in this project.
 

It is hard to give my thoughts on a document I haven’t seen in full, however, I am happy to read that Foxconn has to meet job and capital investment goals in order to get any incentives and tax credits. And while $200 million and $250 million a year in incentives is a huge number, the $700 million a year Foxconn is expected to spend in payroll in Wisconsin is an even bigger number. I look forward to reading and dissecting the incentive package when the special session bill is introduced.   



 
 

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State Capitol Room 316S- PO Box 7882, Madison, WI 53708
(608) 266-3512
Email: Sen.Lasee@legis.wisconsin.gov