The rankings of the best and worst states for business was recently released by Chief Executive Magazine, which was based on a survey of more than 500 CEOs who considered a criteria ranging from taxation and regulation to workforce quality and living environment.  This annual ranking shows that Wisconsin, who in 2010 was ranked the 41^st best state to do business in, jumped more than any other state in the nation to the 24^th best state in 2011.

According to Chief Executive Magazine:

Wisconsin and Louisiana posted the two biggest gains since 2010…By contrast, Illinois has dropped 40 places in five years and is now in a death spiral. Its bond ranking is 49th, ahead of only California. The state may play host to fugitive state senators from nearby Wisconsin and Indiana who avoid voting in their home legislatures, but businesses are heading for the exits. Doug Oberhelman, CEO of Peoria-based Caterpillar, is raising the specter of moving the heavy equipment maker out of Illinois. In a letter to Gov. Pat Quinn, he wrote, “The direction that this state is headed in is not favorable to business, and I’d like to work with you to change that.”

Business leaders graded the states on a variety of categories grouped under taxation and regulation, workforce quality and living environment. “Do not overtax business,” offered one CEO. “Make sure your tax scheme does not drive business to another state. Have a regulatory environment and regulators that encourage good business—not one that punishes businesses for minor infractions.”

Not surprisingly, states with punitive tax and regulatory regimes are punished with lower rankings, and this can offset even positive scores on quality of living environment. While state incentives are always welcome, what CEOs often seek are areas with consistent policies and regulations that allow them to plan, as well as intangible factors such as a state’s overall attitude toward business and the work ethic of its population…

Indiana Governor Mitch Daniels slowed state government payrolls to the point where Indiana has the nation’s fewest state employees per capita. In addition, while at least 35 states raised taxes during the recession, Indiana cut them.

These are some of the actions that encourage business leaders. As another CEO respondent remarked, “We need some political backbone to control spending, address out-of-control debts, and use common sense on environmental and other governmental regulations. Quit demonizing businesses. Who do they think provide real jobs?”

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State Revised Tax Collection Estimates Up

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From a fiscal estimate released by the Legislative Fiscal Bureau yesterday:

"Based on our review of the collections data and the new economic forecast, we now believe that general fund tax revenues will be higher than the previous estimates by $233 million in 2010-11, $204 million in 2011-12, and $199 million in 2012-13. The three-year increase is $636 million, or 1.6%. Over the three-year period, the income tax estimates have been increased by $910 million, and the sales tax and corporate tax projections have been reduced by $240 million and $68 million, respectively. Smaller revisions have been made to the estimates for other taxes."

This is terrific news but I will not get "spend happy" as those in the past have done to bring us to a $3.6 billion structural deficit.  With this increased projection I will be advocating that we end this Budget cycle with NO structural deficit (it currently was projected at $250 million) and look at paying off some other outstanding debt issues.   

You can find the 6 page document here.

 

“This afternoon (Friday, May 6) I directed my Department of Administration Secretary, Mike Huebsch, to immediately rescind the layoff notices that were sent to state prosecutors.  I also instructed DOA to notify the state’s prosecutors that we would fund their personnel costs for the remainder of this fiscal year.  It’s unfortunate that the previous administration largely tied the state’s hands and limited our ability to balance our budget without significant cuts to public safety.  However, public safety is a top concern of my administration and thousands of Wisconsin families that can not be disregarded.  For this reason we will ensure that prosecutors are not furloughed and receive the funding necessary to pursue justice.”