Wisconsin Ranked 3rd Worst State for Business

Last week, Forbes released the results of its annual survey on the best and worst states for business in the nation.  Given the make-up of the budget that was signed into law this year in addition to the budget repair bill passed early last spring, it should be no surprise that Wisconsin came in as the #3 worst state in the nation for business.  Ahead of us is Michigan, which was hit hard by the decline in the auto industry, and Rhode Island, a victim of high taxes. 

According to Forbes, there were six categories that factored into measuring and ranking each state's ability to accommodate the business community: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.  I have no doubt that our budget accounted for our rating in at least five of these six categories, particularly with the tax increases imposed upon Wisconsin businesses and residents at a time when they're already struggling with shrinking budgets themselves. 

Historically, higher taxes have always lead to a trickle-down effect: businesses are forced to pay more money to the government instead of using it to expand operations and hire more employees.  Some businesses may even end up cutting back on workers in order to pay those taxes, which in turn decreases the labor supply as well as any growth prospects.  Ultimately, this creates an economic climate in which jobs are lost (more than 112,000 over the last year alone in our state) and businesses end up closing or relocating outside of the state, leaving behind a negative impact on the quality of life among newly-unemployed workers.  Obviously, there are other factors besides tax increases alone, but the tax burden certainly doesn't help a business community struggling to survive in a recession.

Before Forbes released its survey results, my Republican colleagues in the Assembly and I unveiled our Jobs Now initiative in order to revitalize Wisconsin's economy and create more jobs.  Among the provisions included in this plan are tax credits for businesses and a proposed sunset on the tax increases included in the budget that would take effect in 2011.  Though I will not dispute the importance of certain pieces of legislation my colleagues and I have passed so far this session, I believe the Forbes list should be a big wake-up call to our majority leaders in the Legislature that we need to start focusing on job creation and economic recovery in Wisconsin.

The American Recovery and Reinvestment Act

At a recent hearing of the Joint Legislative Audit Committee, my colleagues and I heard testimony delivered by Chris Patton, the Director of the Office of Recovery and Reinvestment.  The purpose of his testimony was to learn how the funds allocated to Wisconsin through the American Recovery and Reinvestment Act earlier this year have been distributed among certain programs.  The office was created by Governor Doyle under Executive Order #274 in order to oversee the distribution of the funds and ensure compliance, accountability and transparency.

Enacted as Public Law 111-05 on February 17th of this year, the purpose of the American Recovery and Reinvestment Act was to spur job growth and revitalize the American economy through $787 billion in federal tax credits, grants, and loan programs.  Of the $250 billion directly allocated to states, Wisconsin's share was $7.7 billion.  According to Director Patton, "The results will be dramatic once complete.  Wisconsin families will have more money in their pockets to weather the downturn and receive over $1.5 billion in tax cuts."  He also said that he expects the recovery act will help create and retain jobs for more than 77,000 Wisconsin workers, though he was not specific on how long it will be before we see these results. 

The $7.7 billion in economic stimulus funds were divided among the following areas:

Health Care: $1,757,205,046

Education: $1,569,548,433

Tax Credits: $1,540,383,315

Transportation and Infrastructure: $1,148,308,693

Workforce: $889,527,019

Housing and Economic Development: $309,178,603

Energy: $243,623,533

Environment: $238,120,885

Public Safety: $46,820,438

Since it was created, the state Office of Recovery and Reinvestment (ORR) has overseen the administration of economic recovery funds and ensuring that compliance with federal requirements is met in the process.  Some of these requirements include: buying American goods and services, allowing access to federal inspectors general, implementing federal whistleblower protections, and reporting fraud and abuse to federal agencies.  In ensuring overall transparency in the use of the federal stimulus dollars, the ORR staff of six employees developed a public website for people to use in tracking where the money is being spent.  On October 10th, the ORR will perform a major upgrade to the site that will enable public users to track stimulus funds to the dollar.  The website can be accessed at www.recovery.wisconsin.gov. 

Fire Prevention Week is October 4 - 10

This week is Fire Prevention Week, an annual nationwide event in commemoration of the Great Chicago Fire of 1871 that killed more than 250 people, left 100,000 homeless, and destroyed more than 17,000 buildings throughout the city.  The fire lasted from October 8th through the 9th.  In the aftermath of this tragedy, Americans across the country called for reform and soon began a public awareness campaign focusing on new fire safety codes and fire prevention. 

Here in Wisconsin, we must also not forget another tragic fire that happened at the exact same time as the Chicago fire: the massive blaze in Peshtigo.  On October 8, 1871 a cold front moved into Peshtigo, bringing with it strong winds that fanned small rural fires into a major wildfire that destroyed twelve communities and burned approximately 1.5 million acres of land.  Incredibly, the fire also jumped over Green Bay and torched several more acres of land along the Door Peninsula.  Tragically, between 1,200 and 2,500 people lost their lives (it is difficult to pinpoint the exact number because many people reported missing after the fires were extinguished were never found).

Each October, the National Fire Prevention Association sponsors a fire prevention campaign during the week in which the Chicago and Peshtigo fires took place to raise public awareness about the importance of fire safety and education.  The theme for 2009 focuses on ways in which you can keep your home safe from leading causes of house fires.  Here are a few precautions recommended by the National Fire Prevention Association to prevent a house fire and keep your home safe.

1. Cooking is the leading cause of house fires and injuries.  Always pay attention to your cooking.  If you need to leave the kitchen, even for a short period of time, turn off the stove.

2. If you are a smoker or have a guest in your home who is a smoker, try to keep the smoking outside.  Be sure to have deep, sturdy ashtrays available for smoking and NEVER smoke if you are tired, have had alcohol, or have taken medication that makes you sleepy.

3. On average, there are more than 21,200 electrical and lighting-related house fires each year across the country.  When buying, selling, or remodeling your home, have a thorough professional electrical inspection done.  It is also recommended that you install fault circuit interrupters to protect electrical outlets

4. Heating is the second-leading cause of fire-related deaths.  To prevent a heating-related fire, keep space heaters at least 3 feet from people and from anything that can burn such as bedding and curtains.  Turn your space heater off when you go to bed or leave the room.  As the temperature cools down, before you turn on your heating system, have it professionally inspected and serviced.

If you would like to learn more about keeping your home and family safe from a house fire, please visit www.nfpa.org.  To teach your kids about fire safety, have them visit www.sparky.org, a website designed for kids.

Rep. Samantha Kerkman (in the light uniform) pictured with members of the Racine and Kenosha Fire Departments during Fire Ops 101 on May 16, 2009.

Burlington Area Medicine Collection Day

The City of Burlington will hold a medicine collection day on Saturday, October 17th from 9:00 a.m. to 1:00 p.m. at two locations:  6200 21st Street in Racine (north of Sam's Club) and 156 E. State Street in Burlington (Western Racine Co. Health Dept. Bldg.).  You can bring medication and over the counter medicines including inhalers, sprays and pet medications.  Please keep all medications in original bottles, cross out your name but leave the name of the medication visible, and put all medication in a sealed bag.  For more information, contact the Western Racine County Health Department at 262-763-4930.