Tom Barrett's Plan to Create Wisconsin Jobs

www.BarrettForWisconsin.com

www.BarrettForWisconsin.com

Tom Barrett’s Plan for Getting Wisconsin Working

The global recession has hit Wisconsin hard. Our unemployment rate doubled as we lost 180,000 jobs from December of 2007 to December of 2009. One-eighth of our manufacturing jobs and one-fifth of our construction jobs disappeared. Communities have been devastated as major employers have closed up shop. Recovery is underway, but it is slow and has put too few of our people back to work. We need ideas and action to get Wisconsin’s economy moving. We need policies to create jobs immediately – not vague promises to create jobs in the distant future. Moreover, we need a comprehensive plan that will build long-term economic success – not simplistic “solutions” and slogans. Tom knows that businesses create jobs. However, he also understands that we can build an even stronger economy in Wisconsin with a full partner in the Governor’s office paving the way. Tom has a specific plan that will create jobs, improve Wisconsin’s business climate, encourage the entrepreneurship at the heart of the new global economy, spur new business activity, jump-start needed construction, and develop the workforce talent to attract new businesses to our state quickly.

He will reform the state’s economic development approach to make it more efficient and effective. In addition, he will bring to state government a coherent vision for sustained economic growth in emerging new industries that allow us to capitalize on our traditional strengths in manufacturing, agriculture, and outstanding institutions of higher learning. He will make that vision a reality with detailed plans for making the investments in financial capital, our colleges and universities, and workforce skills that make the difference in whether the high-paying jobs of the future come here or go elsewhere.

The Barrett Plan is a comprehensive vision to create jobs and boost business across Wisconsin. As Governor, Tom will overhaul and strengthen the state’s entire economic development approach to make it more efficient and effective. He will bring to state government a clear vision that builds on Wisconsin’s traditional strengths of manufacturing, agriculture and outstanding institutions of higher learning to sustain growth in emerging new industries. Tom has detailed proposals to make investments in financial capital, our colleges and universities, and workforce skills that are the difference in whether the good paying jobs of the future come to Wisconsin. Tom’s plan features comprehensive inter-related ideas to address our economic future; his vision is built around five core principles to create Wisconsin jobs:

Page 3 of 67 www.BarrettForWisconsin.com

• Tax cuts to stimulate private sector job creation. Tom will make sure that tax cuts are targeted to stimulate the economic activities that will create the high-paying, high-growth jobs we need. Tom will provide tax cuts, linked directly to job creation, in the following areas so that people can get back to work:

o Construction to jump-start the projects we need to strengthen our economic

infrastructure and create jobs now o Research & development expenditures, as well as patent and software royalties,

to encourage development of the products of the future right here in Wisconsin o Venture capital and angel investments, to ensure that Wisconsin entrepreneurs

have the capital they need to launch new businesses o Investments in bio-fuels, green buildings, and the other new technologies we

need to lower our energy costs, achieve energy independence, and make us more competitive in the industries of the future

o Dairy production and processing, and farming coops, to preserve the traditional backbone of our communities

• Jump-start job creation right now. Tom’s plan starts with his “Jobs Now” Initiative

because that’s what Wisconsin families need. Tom will start immediately to provide the kinds of assistance and incentives that businesses need to create jobs quickly. He’ll cut the red-tape to get new construction projects going – projects that are needed for our long-term economic vitality. And he’ll invest in the workforce training and skills development that will attract new economic activity and translate into new job opportunities.

• Job creation – in the Governor's Office. Tom knows that creating jobs will be his main job. To make sure that every decision in his Administration is focused on job creation, Tom will create a Jobs Office combining oversight of all job creation, attraction, retention, and training efforts and locate this office right in the Governor’s Office. In the Barrett Administration, jobs will be Job One.

• Streamline state programs to make them more efficient and effective. Tom

understands that, for the private sector to create jobs, the public sector must play its role effectively and then get out of the way. As Governor, Tom will order a complete performance review of all economic development programs to identify those that work and eliminate those that don’t. He will simplify regulations and streamline the regulatory process to lighten the burden on business without sacrificing protections for workers, families and our environment. And he will create ‘one-stop shops’ to expedite the permitting process so that businesses can start and expand in Wisconsin more quickly and easily.

• Create a state venture capital fund. Wisconsin needs more venture capital if its

entrepreneurs hope to create the kind of high paying jobs that will transform our economy to compete in the 21st Century. We are home to one of the greatest research universities in the world. We have a skilled work force and a legendary work ethic. However, we lag the region in venture capital availability and the region lags the nation.


The Wisconsin Entrepreneur’s Fund would be a fund-of-funds modeled after the best elements of programs that have demonstrated effectiveness elsewhere in the nation. It would commit up to $100 million to eight to ten venture capital funds over five years that will raise at least $500 million in aggregate funds and commit to offices, staff, and investments in Wisconsin.

With these five core principles in mind, Tom created a comprehensive six-part plan to get Wisconsin back on track and back to work. This plan includes:

• Part I: Jobs Now Initiative • Part II: Reforming Economic Development • Part III: Encouraging Entrepreneurship • Part IV: Growing Wisconsin’s Economy for the 21st Century • Part V: Keeping Wisconsin’s Agriculture Strong • Part VI: Investing in Wisconsin’s Workers

Part I of the Barrett Plan for Getting Wisconsin Working presents Tom’s Jobs Now Initiative to improve Wisconsin’s business climate and stimulate immediate job creation. Tom will provide strong leadership and greater accountability in economic development – and that starts with the governor’s office, which is discussed in Part II. Part III lays out Tom’s ideas for creating more and better jobs for Wisconsin for the long-term by encouraging entrepreneurship, especially in high-potential industries. And Tom’s plan for capturing a larger share of industries that are growing faster and pay higher-than-average wages is presented in Part IV. Tom’s plan for building on our traditional strengths in manufacturing and agriculture is presented in Part V. Finally, whether it is in our traditional strengths or in emerging new industries, whether it is expanding existing Wisconsin businesses or attracting and creating new firms here in our state, today there is one requirement for growth: making Wisconsin workers the top priority. As the national economy recovers, skilled workers will prosper more than unskilled ones. Tom will give Wisconsin a competitive edge by building a pool of skilled workers for in-demand jobs with policies detailed in Part VI. That’s Tom’s plan for Getting Wisconsin Working. And it will work.


Contents I. Tom’s Jobs Now Initiative .........................................................................................................................................6

II. Reforming Economic Development .......................................................................................................................13

III. Encouraging Entrepreneurship ..............................................................................................................................18

Encouraging and Commercializing R&D ................................................................................................................ 19

Increasing Access to Capital .................................................................................................................................... 20

Promoting Entrepreneurship .................................................................................................................................... 22

Encouraging Minority and Women Businesses ....................................................................................................... 24

IV. Growing Wisconsin’s Economy for the 21st Century ...........................................................................................26

Manufacturing .......................................................................................................................................................... 27

Clean Energy............................................................................................................................................................ 29

Demand-Reduction Technologies............................................................................................................................ 30

Health Care and Bio-Tech........................................................................................................................................ 31

Advanced Manufacturing......................................................................................................................................... 33

The Emerging Water Industry.................................................................................................................................. 34

New Media and Film................................................................................................................................................ 35

Promoting Innovation in Manufacturing.................................................................................................................. 36

Expanding “Cleantech” Industries ........................................................................................................................... 38

Promoting Biofuel Availability and Use.................................................................................................................. 39

Expanding the Use of Biomass ................................................................................................................................ 41

Building a Market for Demand Management Industries ......................................................................................... 41

V. Keeping Wisconsin’s Agriculture Strong............................................................................................................. 44

Making Wisconsin America’s True Dairyland ........................................................................................................ 45

Expanding Other Value-Added Agriculture ............................................................................................................ 47

Energy Independence Through Agriculture............................................................................................................. 52

Restoring the Wisconsin Idea to Production Agriculture......................................................................................... 53

Keeping Wisconsin’s Rural Economy Competitive ................................................................................................ 55

VI. Investing in Wisconsin’s Workers ........................................................................................................................60


“Tom has a plan not just to create a brighter long-term economic future for our state, but also to promote immediate job creation now.”

I. Tom’s Jobs Now Initiative: Promoting Wisconsin businesses and creating jobs


Wisconsin workers have taken a beating during the recession. From December 2007 to January 2010 Wisconsin lost 181,500 jobs. The unemployment rate increased from 4.5% to 8.7%, manufacturing and construction jobs decreased by 15.3% and 24.0%. We’ve seen some positive signs in the early months of this year, but we’re still in a big hole. Wisconsin needs more jobs immediately. The recent recession has produced a greater percentage of job loss than the three most recent previous downturns in 2001, 1990, and 1981. To get Wisconsin moving forward and putting people back to work, we need immediate action to reallocate resources, provide a range of services to assist immediate job creation, and to aggressively pursue federal waivers to get Washington out of the way so jobs can be created now. Most importantly, Wisconsin needs a Governor who has a plan to create jobs immediately rather than an empty promise to create jobs in the distant future. Improving our business climate would be important whether or not we were in a recession – but it’s especially important because we are in one. Tom has a plan not just to create a brighter long-term economic future for our state, but also to promote immediate job creation now. Tom understands that this must start with improving the business climate by reducing the drag government imposes on the economy – and that means fixing the state budget, cutting taxes in ways that will create jobs and create jobs quickly, eliminating unneeded restrictions and streamlining burdensome regulations. But Tom also recognizes that government has a role – including stimulating job creation at this crucial juncture in both the public and private sector. Finally, Tom knows that businesses can’t put people to work if they can’t find the skills they need right here in Wisconsin, so we must make sure we give workers the ability to acquire in-demand skills as quickly as possible. As Governor, Tom will:

• Fix the state budget. It’s time to balance the budget honestly, for the long term – just

as Tom has done in Milwaukee. Madison needs to change. Tom will stabilize the state’s finances and make the state bureaucracy function better – which will make it easier for businesses to invest in the state. Tom will soon be releasing a complete plan on Making Madison Work – slashing waste and inefficiency, making state government more transparent and accountable, and demanding results.

• Provide a job-creation tax cut. Tom knows we have to be real: Wisconsin is already

facing a $2 billion structural deficit, and the people of Wisconsin need a governor who talks straight with them. Both Republican candidates are talking about huge tax cuts, none of which are targeted for working people or the middle class – but we cannot bring to Wisconsin the George W. Bush-style tax cuts for the wealthy and the powerful that explode deficits, reward elites, push more burden on working and middle class families, and got us in this economic mess in the first place. The Barrett Plan? Tax cuts tied to job creation. Tom will provide tax cuts, credits and incentives tied directly to businesses that invest in Wisconsin and create, save and attract jobs here – as we did with Republic Airways and 1,600 saved and created jobs. The


specific tax incentives – in areas ranging from agriculture to venture capital – are discussed in appropriate sections throughout the rest of this paper.

• Reinforce job-creation by making sure we get Combined Reporting right.

“Combined reporting” of corporate income for tax purposes is an important way we make sure that large national – even global – corporations pay their fair share of taxes here in Wisconsin so that Wisconsin businesses and taxpayers don’t have to pay more. Combined reporting makes sure that these large businesses operating elsewhere can’t use tax gimmicks and accounting tricks to shift their reported incomes – and thus their tax liabilities – artificially to other states or off-shore tax havens, thereby avoiding paying their fair share to Wisconsin. These profits are generally shifted out of Wisconsin into states with low or no corporate income tax, like Nevada. At the same time, hard-working families and local business owners remain responsible for paying taxes on their income earned. As a result of corporate income tax avoidance, the rest of us – and especially Wisconsin businesses employing Wisconsin workers – are forced to pay more for local services, highway maintenance and other public services. Combined reporting for corporations doing business in Wisconsin started with Republican governor Tommy Thompson. Twenty-two other states use combined reporting measures,1: And sixteen of those have done so for more than 20 years – and there hasn’t been a mass exodus of businesses from those states. Only 13% of businesses in Wisconsin are affected by combined reporting and only 11% of Wisconsin businesses will see an increase in their corporate income tax liability because of recently enacted changes. Forty-one of the largest corporations in Wisconsin already comply with combined reporting in other states, without shutting down operations or laying off employees, and 80% of Wisconsin’s 50 largest manufacturing employers, nine out of 10 of the biggest banks and all 15 top retail employers already do business in combined reporting states. And, of course, combined reporting will have NO impact on corporations that operate entirely in Wisconsin. That’s why Tom is confident that we can make sure combined reporting works in our state, so that every business pays their fair share for the profits they earn – and, at the same time, get rewarded for the jobs they create – in Wisconsin. He will work with any Wisconsin company, which as a result of recent changes is losing jobs in Wisconsin, but, most importantly, he will make sure that the entire Wisconsin tax structure is aimed at job creation.


• Create a Small Business Ombudsman and widely publicize the position in appropriate

agency publications and on the agency's website. The ombudsman will be responsible for receiving and responding to complaints received by the agency from small business; providing technical advice and assisting small businesses in resolving problems and questions; and reporting small business concerns and recommendations to the agency head.

• Launch a comprehensive regulatory reform and streamlining effort. As Wisconsin

Manufacturers & Commerce (WMC) says, “When employers are burdened with unnecessary regulation, it costs us jobs. Fair regulations keep us safe; unfair regulations and regulatory delays lead to slower growth and higher unemployment. That starts by: Ensuring state regulations are in line with federal regulations and those in competitive states, and establishing the Department of Commerce as the central business permitting agency, charged with quickly and aggressively securing all needed approvals for economic development.” Tom will do just that as Governor. The Barrett Administration will: o Use one-stop business and licensing models.

o Rewrite regulations to make them simpler.

o Require automatic sunset provisions in all new business regulations.

o Reduce the time and expense of securing regulatory permits by creating a

coordinated system that simplifies and speeds up permitting, and expands the licensing program.

o Expand the state’s electronic government programs, including government-to-business systems such as online professional licensing, online competitive bid processing, e-procurement expansion to benefit small business and access multiple departments involved in procurement, environmental regulation of business; and interactive employer/employee job posting and recruitment.

o Reform the DNR permitting process to ensure that, on average, it takes Wisconsin no

longer than Minnesota and Illinois (or other peers) to permit a business expansion. Environmental protection is consistent with administrative efficiency in other states – we can do at least as well in Wisconsin.

• Expand in-state business activity. The Barrett Jobs Now initiative will spur faster

business expansion and greater business-to-business activity among Wisconsin companies through:

o Pro-active rapid response team. In addition to rapid response services to assist

those losing jobs to plant closings, a pro-active rapid response team will be developed to quickly provide services to companies looking to expand. That


team will be charged with fast tracking regulatory/permit issues, job training needs, and economic development assistance.

o Business-to-business connector. Wisconsin will partner with the business

community to create a business- to-business connector database to encourage more Wisconsin suppliers and more sales for Wisconsin businesses.

o Supply chain initiative. The Oregon Business Development Department has

formed a coalition of local manufactures for the wind energy industry to develop a supply-chain that creates greater business activity within their state. A similar supply chain initiative will be created in Wisconsin to include a network of manufacturers to build local supply chains for several industry clusters. This will build on existing private-sector initiatives such as the New North wind energy project.

• Incentivize construction.

• Home starts in Wisconsin are on the rise for the first time in five years. Unfortunately, recession has taken its toll on the industry; the number of builders issued at least one permit dropped by as much as 70 percent from 2005 to 2009, with a 60 percent statewide decline in housing starts since 2005.2 There are fewer developers left in Wisconsin – many smaller, independent firms were unable to weather the downturn. While the last four years saw a steep drop-off in Wisconsin construction,

Green Bay began its comeback early – the only market to show increased housing starts overall in 2009, a success attributed in part to local builders offering free upgrades as incentives to those who may otherwise have purchased an existing house. Tight credit for builders and stiff competition with existing home sales and below-market sales on foreclosed homes still pose challenges for builders. As Governor, Tom will direct the State Building Commission and the Public Service Commission to consider the multiplier effect on local jobs and communities when approving new construction projects and contractors. Tom also will support the recovery of the construction sector by providing these incentives for community impact development:

o A short-term 20 percent direct tax credit for builders for construction projects

completed in areas of the state targeted for economic redevelopment – including infill projects, which focus on the reclamation of obsolete or underutilized buildings that blight communities.


o Public infrastructure bond guaranties to qualified local governments for approved

public infrastructure projects – putting builders back to work and revitalizing communities.

o Investor tax credits for the rehabilitation or construction of high-quality, affordable housing.

o Below-market rate financing for qualified for-profit or not-for-profit developers.

• Give business the workforce it needs to give our people the jobs. The Wisconsin Job

Center reports that there are over 23,000 job openings, and according to Wisconsin’s Labor Market Information System, those jobs that need to be filled most quickly require at most moderate training. Tom will:

o Support and implement the bipartisan C.O.R.E. Jobs Act, which creates a variety

of new tools for economic development in the state, including initiatives focused on capital access, worker training, and business expansion.

o Launch a 12 in 6 program. Modeled after the successful 12 in 6 North Carolina

program, a partnership between the Department of Workforce Development and Wisconsin’s technical colleges will be established to provide instruction and training for 12 in-demand occupations in which training can be completed in 6 months or less. Those 12 in-demand jobs will be identified using state labor market information, but local tech colleges will be able to identify additional occupations to meet local/regional labor market demands.

o Offer back-to-school grants. A lot of Wisconsinites looking for work have a

partial college education. Many of them could not complete college because either they could not afford to pay for the costs of tuition or they needed to return to work to provide for themselves or their family, Back to school grants targeted at in-demand degrees will provide immediate opportunities for those individuals to complete their college education.

o Create a Quick Start program. Like the Georgia Quick Start program, Wisconsin

will create a rapid response-training program for companies looking to hire skilled workers immediately. The Wisconsin Quick Start program will develop a network of training specialists within the tech college system to provide pro-active customized training. The typical, and federally funded, rapid response system is designed to quickly find job placement for workers that have been recently laid off. What is missing is a rapid response system for employers looking to hire; the Quick Start program is designed to fill that need. The Quick Start program in Georgia is designed to provide customized training for companies looking to expand or locate within Georgia. The State of Georgia has developed a network with their technical/community colleges to provide a pro-active rapid response system to help ensure companies looking to hire they have


a trained talent pool from which to hire. Quick Start covers two comprehensive areas: manufacturing and service training. Businesses are eligible for training in all segments.

o Offer Career Readiness Certificates and job profiling services statewide.

Wisconsin has just started to pilot the Career Readiness Certificate (CRC) program. Other states in the Midwest (e.g. Indiana and Michigan) have used the CRC statewide to match the skills of a job seeker with the skills an employer needs to fill open positions. Wisconsin needs to catch up and offer the Career Readiness Certificates statewide. The Barrett Administration will would offer every citizen the opportunity to determine his or her career skill level, training to raise their skill level, and have their skill level certified for employment. In addition, businesses will be able to prepare job profiles and then match those skill needs with job applicants. The CRC will serve as a common metric and language to match the skills employers need with the skills a job seeker has.


II. Economic Development Reform

II. Reforming Economic Development: Providing strong leadership and accountability

“Tom will set priorities and target state spending on meeting those needs, while cutting back on lower-priority expenditures. Tom will set specific performance goals and measure outcomes. Tom will eliminate waste, fraud and abuse and de-fund non-performing agencies and programs.”


Tom will bring leadership, accountability, and fresh thinking to economic development in Wisconsin. Responsibility for economic development in Wisconsin is now fragmented. A 2006 Legislative Audit Bureau report identified at least 152 economic development programs administered by at least 26 agencies, councils, and other bodies. The State Department of Commerce is the focal point of the state’s economic development efforts, but a large majority of its staff and budget is devoted to enforcing the state’s building code and safety laws and to cleaning up leaking underground oil storage tanks, worthy activities that have little to do with economic development. University of Wisconsin and Wisconsin Technical College campuses are often crucial economic development partners, but their interest in local economic development varies widely. Regional and local economic development capacity also varies widely. In this case, there is no substitute for leadership from the governor. The governor is the only person who can align all of state government around a shared goal of creating jobs. The governor is the best possible cheerleader for business growth in Wisconsin. And the governor is best positioned to reform the crazy quilt of economic development efforts across state government and around the state. As Governor, Tom will:

• Focus the governor, the governor’s office, and the rest of state government on

economic development. Tom will be the chief economic development officer of the State of Wisconsin. He’ll be a relentless salesman for Wisconsin, aggressively seeking out ways to expand businesses and create jobs here. He’ll make sure that all his appointees are aware of their role in job creation and focused on economic development.

• Reorganize state government to increase focus on and capacity for economic

development. Tom will move the Department of Commerce’s economic development staff, along with Workforce Development, into a new Governor’s Office of Economic Development – creating a true Office of Job Creation headed by a Jobs Director reporting directly to the Governor.

• Evaluate existing economic development programs for effectiveness in creating jobs

and consolidate them into fewer, more flexible authorities. • Create a comprehensive set of regional economic development associations and

strengthen ties between their private-sector leaders and state economic development officials. The state has eight economic development regions – but twelve counties are completely left out. Tom will make sure that the entire state is involved in regional economic development and that key state economic development officials keep in constant touch with these groups and use them to help identify opportunities to create jobs. Tom will empower regional economic development associations and increase the effectiveness of millions of dollars of economic development resources by consolidating revolving loan funds regionally.


Wisconsin’s Economic Development Regions New North Milwaukee 7 Centergy Thrive Grow North 7 Rivers Momentum West UP/WI Border Region Northwest BEST

It is clear that business as usual can’t continue when it comes to spending tax dollars on economic development. When tax dollars are used to lure businesses and spur private investment to the State there needs to be a significant return on investment. As Governor, Tom will ensure that tax dollars for economic development are not wasted on corporate welfare or company bailouts.

Several of our neighboring states have taken action to reform their economic development system. Illinois passed Corporate Accountability legislation and Minnesota has been recognized as a national leader for its reform laws. It is time for similar reforms in Wisconsin. Tom will bring fiscal discipline, transparency, and accountability to economic development spending so economic development spending produces good jobs at good wages. As Governor, Tom will:

• Institute a unified economic development budget. One of the first steps is to know

what investments are being made to create jobs and which are getting the best value. As Governor, Tom will create a unified economic development budget that includes a comprehensive inventory of all spending for economic development, including the cost of subsidies.

• Create a performance review of all state economic development policies. Not only

will state dollars be evaluated for what is being spent and where, but top to bottom performance reviews on economic development policies and programs will be conducted. This review will be able to help determine which programs achieve the greatest return on investment to the State. In addition, the performance review will look at not only whether jobs are being created but also if they are good paying jobs.


• Require greater transparency and results on job creation for corporate assistance.

Wisconsin taxpayers have a right to know how individual projects and assistance programs are making an impact. To ensure greater transparency and increased disclosure Wisconsin will have similar disclosure requirements to those in our neighboring states. Increased disclosure will include:

o Name of the company and

the agency/program that was the source of the assistance.

o The total taxpayer investment for the subsidy. o The number of jobs created/retained the assistance was intended to create. o Report on the actual jobs created as well as the wages. o Citizen access to expenditures via web and annual report.

To ensure that state economic development investments are used to create jobs rather than bail out companies, greater accountability for how tax dollars are spent also will be required. Companies receiving assistance will be required to reach job and investment goals within time limits and be subject to full or partial recapture when those requirements are not met. The Barrett Administration will:

o Target in-state investment to ensure that state dollars used to helping businesses

go to those businesses that are truly helping Wisconsin’s communities.

o Increase the job-creation return on state dollars by requiring major firms that win state contracts to subcontract a substantial portion of the work to Wisconsin businesses, and instituting a competitive bidding preference for Wisconsin-based firms. This will help put more money into the hands of Wisconsin businesses, stimulating our local industries, and directly creating more jobs for Wisconsin workers.

o Require companies to pay back incentives if they fail to meet the objectives of the deal. Job creation incentives are not intended to be corporate handouts; they are two-way contracts. As Governor, Tom will ensure those contracts are binding. Businesses that have received incentives for their expansion in Wisconsin must be held to their end of the bargain; and if they don’t meet their commitments, Tom will recover our investment through clawbacks – reclaiming those incentives that were not verifiably earned. Illinois took back funds from 37 companies who did not fulfill their local commitments in 2008, compared to six in 2005.3


o Make incentives contingent on good wages, so that businesses are encouraged to create high-paying jobs. Kansas and Rhode Island have strong examples in place. Businesses that apply and receive incentives should at least pay their employees a median wage given that incentives should be promoting a higher standard of living.

o Grant tax abatements only after a business documents that it has in fact made the investments in job creation, worker training and R&D that it promised in its application to participate in a tax incentive program.

o Review the effectiveness of incentives and report their cost to the taxpayers. To improve the fairness of the tax code and assure that corporate tax incentives achieve their intended purpose, we should review all of their corporate tax incentives as part of the biennial budget process.

• Appoint a Wisconsin Competitiveness Council. The best way for long-term economic

growth is to have a fully committed public/private partnership in which top leadership actively participates. As Governor, Tom will assemble a competitiveness council that will include state government agency directors, leaders of regional economic development associations, university chancellors and tech college presidents, labor leaders, and private sector executives that will meet on a regular basis to provide strategic direction and build partnerships to position Wisconsin for economic growth. Tom will provide hands-on leadership by co-chairing the council with a committed leader from our state’s business community. Some of the issues the council will address include: increasing the skill level of Wisconsin’s workforce, addressing demographic changes in the labor market, increasing college access to adults, and targeting training to the middle-skill jobs – those requiring more than a high school degree and less than a four-year college education – that represent 54 percent of Wisconsin employment today and will account for the largest share of new jobs during the next decade.4

• Strengthen Wisconsin’s regional delivery system. The Wisconsin Regional Training

Partnership (WRTP) is a national model in generating public/private partnerships to developing family wage jobs in very competitive environments by offering three core services: pre-employment training, manufacturing modernization, and incumbent worker training. WRTP has built its success through workforce intermediaries. This model needs to be extended throughout the state.

Of course, these improvements are only part of the effort Tom will bring to the Governor’s Office to reduce governmental drag on business and to manage state agencies better. He will set priorities and target state spending on meeting those needs, while cutting back on lower-priority expenditures. He will set specific performance goals and measure outcomes. He will eliminate waste, fraud and abuse and de-fund non-performing agencies and programs. He will detail all of this in his separate Plan for Making Madison Work.


III. Encouraging Entrepreneurship: Creating jobs for the long-term

“The Wisconsin Entrepreneur’s Fund would be a fund-of-funds modeled after the best elements of programs that have demonstrated effectiveness elsewhere in the nation. It is designed to be a partnership with the private sector to develop a market driven sustainable venture capital community in Wisconsin that is capable of serving a variety of sectors and various stages of development.”


The success of Wisconsin’s entrepreneurs will largely determine the success of Wisconsin’s economy. Most job growth comes from young companies. According to the Kauffman Foundation, businesses less than five years old created nearly two-thirds of net new jobs in the US in 2007. Successful entrepreneurship requires a good idea, money to finance its development, and management talent to make it real. Wisconsin has world-class institutions that create new technologies. We need to do better in creating access to financing and deepening the pool of experienced and talented people to manage new companies.

Encouraging and Commercializing R&D Tom will evaluate the existing economic development programs and consolidate them into a streamlined system with fewer, more flexible, more targeted programs. This effort will include redirecting state economic development investments so more funding is spent on support for and loans to research and development (R&D) firms, especially in our target sectors. As Governor, Tom will:

• Create Centers of Excellence at the state universities. To focus on strengths, further

develop expertise, and rapidly commercialize scientific and technological breakthroughs to market, New York established "Centers of Excellence" at its leading universities. The Centers support high technology ventures through a collaborative approach among the State, academia, private venture capital companies, and other private and public sector parties. New York State’s Centers of Excellence initiative is the centerpiece of the state’s regionalized economic development strategy. New York now has announced five Centers of Excellence: bioinformatics and life sciences, photonics, nanotechnology, wireless technology, and environmental and energy systems. The mission of the Centers is to increase collaboration among universities, research institutions and businesses that are doing related work within an industry cluster, and then to seek rapid commercialization of the innovations that emerge from that collaboration.

• Create a Wisconsin Technology Transfer Corporation. Several other states have

created technology development corporations to foster the development of a technology economy by enhancing the transfer of technology from universities and federal laboratories to the private sector and fostering the growth of innovative companies in critical or high growth sectors. The Maryland Technology Transfer Fund, for example, encourages the transfer of technology between Maryland companies and eligible federal labs or universities. Funds are used for research and development activities intended to develop a specific technology or technology package for commercialization. Tom will bring similar efforts to Wisconsin

• Eliminate 100% of State Taxes On New Patent and Software Royalties. This policy

would send a message to small businesses and individuals that Wisconsin is the greatest place in the world to start and operate a knowledge-based business. We want inventors, innovators and entrepreneurs to make Wisconsin their first choice when they decide where to start a business


• Create a state grant office to help the state, its universities, and its industries identify and apply for federal grants. Illinois and Maryland did this and saw grant receipts increase dramatically.

• Support commercialization of faculty research by working with WARF, WiSys, and

WEN to build a UW-Madison incubator for companies based on faculty research and then leveraging the model statewide. The Incubator will be designed to include an Entrepreneur-in-Residence program to help attract and retain management talent, and will replicate successful models at MIT, Georgia Tech, and UCSD, seeking the bulk of funding from WARF and private donors.

Increasing Access to Capital

• Create and manage a state venture capital fund. Wisconsin needs more venture capital if its entrepreneurs hope to create the kind of high paying jobs that will transform our economy to compete in the 21st Century. We are home to one of the greatest research universities in the world. We have a skilled work force and a legendary work ethic. However, we lag the region in venture capital availability and the region lags the nation. The Wisconsin Entrepreneur’s Fund would be a fund-of-funds modeled after the best elements of programs that have demonstrated effectiveness elsewhere in the nation. It is designed to be a partnership with the private sector to develop a market driven sustainable venture capital community in Wisconsin that is capable of serving a variety of sectors and various stages of development. The Fund would:

o Commit up to $100 million to eight to ten venture capital funds over five years

that will raise at least $500 million in aggregate funding and commit to offices, staff, and investments in Wisconsin.

o Create access to capital for Wisconsin entrepreneurs in various industry sectors and different stages of development.

o Minimize and defer the cost to Wisconsin taxpayers, with a long-term goal of significantly increasing Wisconsin’s tax revenue and eliminating the cost of a sustainable program.

A tax credit enhanced fund-of-funds, privately managed to invest in traditionally structured, experienced venture capital funds, is a tool that has been used in a number of states (Michigan, Ohio, Oregon, Oklahoma) to attract experienced venture capital firms to a state. When coupled with the approach of the Kansas Biotech Authority, new tax revenue generated from the investment activity would be used to retire the debt and create a sustainable source of venture capital and entrepreneurial funding well into the future.

The fund managers would have to commit to opening an office in Wisconsin that was served by a full time investment professional that resides in Wisconsin and would be obligated to invest an amount of not less than the total commitment of the fund-of-funds in qualified Wisconsin businesses. Qualified businesses would have to:


o Be headquartered in Wisconsin. o Have at least 50% of their employees in Wisconsin. o Be in sectors widely backed by the venture capital industry nationally and meet

certain size and financing restrictions.

The primary focus would be economic development in areas that currently are underserved by private venture capital firms.

• Promote legislation allowing the allocation of between 1 and 3 percent of state employee pension funds to alternative “venture capital” investments.

• The state would establish an investment board similar to those in Pennsylvania and California to oversee the investments within guidelines established by the legislature. All such investment would require private matching and be private sector-driven, not state-initiated, and would focus on early-stage capital needs of technology startups. Wisconsin should seek to replicate the success of the Ohio Third Frontier Fund, which combines pension fund investing, up to $125 million in state bonding, and a state venture fund to achieve targeted growth objectives.

• Create a Capital Access Partnership. Under Capital Access Programs, funds are

committed by the State to provide cash collateral assurance to banks making loans to companies that might otherwise not be credit worthy. The borrower and lender each pay a 2-3% fee into a pooled loan reserve account, which is then matched by the state government; the account protects lenders in case of defaults, which are quite low.

• Create an Investment Fund Act. We can replicate the Kentucky Investment Fund Act,

which provides 40% tax credits (up to 25% in any single year) to individuals and companies that invest in approved venture capital funds. Contributions must remain in the fund for at least five years, and approved funds must invest in Kentucky-based small businesses. Projects may range between $1 million and $10 million in total size.

• Maintain state funds in Wisconsin banks to keep our money at work at home and to

help shrink “too big to fail” national financial institutions. Careful lending practices and slow-but-steady growth are reasons why Wisconsin’s banks are in better shape than those in most other states.5 In fact, two well-known independent financial ratings services both gave two south-central Wisconsin banks the highest marks for financial strength in 2009. In the meltdown of 2008, not only did many local, community banks turn out to be more fiscally sound than the global risk-taking giants of Wall Street, but many of them also have been there to help Wisconsin weather the storm. Of the $700 billion in federal Troubled Asset Relief Program (TARP) funds that bailed out the


nation’s financial institutions, $2.5 billion went to Wisconsin, 93% of it to three large banks. According to a study by the Institute for Wisconsin’s Future, small banks (whether or not they received TARP funding) increased their lending from September 2008 to 2009. The large banks that did not receive funding decreased lending by 3 percent. The large banks receiving TARP funds decreased lending by over 10 percent.6 Tom wants to keep Wisconsin’s money in Wisconsin, working in our communities and serving our citizens, which is why, as Governor, he will commit to banking state funds locally.

Promoting Entrepreneurship

• Use the education system to nurture and encourage future entrepreneurs - Offer entrepreneurship education at public universities. Support faculty entrepreneurship in the UW System. Promote entrepreneurship education in middle and high schools, as well. Offer courses for adults looking to start their own business.

• Evangelize entrepreneurship

among UW faculty and graduate students. Utilize existing capabilities in WEN, WiSys, and the Technology Council, as well as the creation of Entrepreneurship 101 training programs.

• Defer the taxes of qualified startup businesses for the first three years. Taxes would

be deferred for the first three years the business operates. If a deferral is approved, the taxpayer must pay taxes on the deferred taxable income in five equal annual installments during the five tax years following the three years of deferral. If the taxpayer has a net loss during a tax year during the three-year deferral period, the loss may be applied to any deferred taxable income during that period. The deferral helps new businesses from a cash flow standpoint. Since the taxes are only deferred, not eliminated, the only long-term cost to the state is the interest that would have accrued on the delayed tax receipts. Since most startups are small, with relatively small tax burdens, the fiscal impact of the tax deferral would be insignificant to the state, but could make an important difference to Wisconsin startups during their critical first years.

• Promote high-tech start-up investment to family investment companies. Wealthy

families are increasingly using family investment companies (Faces) as an alternative to family trusts. FICs actively pursue innovative investment opportunities, and Wisconsin should do more to market its high-tech start-ups to these types of investors.


• Create incubators for entrepreneurial companies statewide. Provide business incubation services through physical incubators; Create virtual and remote incubation options for rural and remote regions. Some of Wisconsin’s biggest entrepreneurial success stories, like Jellyfish.com, Mirus Bio Corp., NimbleGen Systems Inc., Third Wave Technologies , and TomoTherapy, Inc., have roots in at least six “incubators” located in the area’s 35-plus research parks. These incubators, which include space designed for lab-buildouts, access to cutting-edge research equipment, infrastructure, and communications systems, help high-tech entrepreneurs save thousands of dollars on monthly research expenses, while facilitating collaborative partnerships within the field that accelerate business development. Two more such incubators are being planned in Madison, including the city-planned Bio-Ag Gateway Park. While these incubators thrive in Madison, more needs to be done to incubate entrepreneurs in the rest of the state. Fast-growing firms in cities like Milwaukee, for example, are spread around the city, without the benefit of valuable informal networks that arise in Madison’s entrepreneurial clusters. As Governor, Tom will replicate statewide the private-sector partnerships that make Madison’s well-funded incubators a success to create clusters of entrepreneurial collaboration across our state.

• Expand the Impact of the Small Business Development Centers. In 2009,

Wisconsin’s Small Business Development Centers (SBDCs) provided small business counseling to 5,000 clients and training to 9,000 clients and completed 257 business plans. Their presence at UW campuses provides an opportunity for urban entrepreneurs to access targeted continuous training in business management and business technology in conjunction with the educational community. They provide access to specialized financial services, technical assistance for starting a business – including grant application counseling, entrepreneurial training, and on-to-one entrepreneurial support. Tom will build on the strengths of the SBDCs to expand their impact beyond the 17 UW campuses where they current provide services – particularly into rural regions of state where few such resources exist for small businesses. There are currently no SBDC’s in the entire Northeastern region of Wisconsin. Tom will support and fund the replication of these one-stop centers, tailored to the needs of currently underserved communities.


Encouraging Minority and Women Businesses

Wisconsin’s economy has benefited from the gains made by minority-owned businesses over the years. Before the recession, minority-owned businesses grew at a faster rate than the national average. To create jobs and encourage new start up businesses, Wisconsin needs to invest in one the most promising growth sectors: minority owned businesses. To encourage the growth of minority-owned businesses, Tom will:

• Help low- and moderate-income individuals become self-sufficient by starting their

own businesses. State government can help foster the growth of small businesses, help low- to moderate-income working families, and displaced workers build assets and obtain financial independence by initiating a state effort to support Individual Development Accounts –savings accounts in which small, regular deposits are matched by government or private sources. They can be used to pay for starting a small business, or for a first house or education and training.

• Develop a “dashboard” of indicators to measure women- and minority-owned

business participation in state contracts. • Revitalize and refocus Wisconsin’s minority and women business programs.

Coordinate approach across Commerce, WHEDA, SBA, WMEP, and other agencies to increase jobs at minority manufacturers in particular.

• Target growth industries. Minority- and women-owned businesses need to be fully integrated as a part of the sector strategies for high growth industries, e.g., clean technology and health care.

• Encourage growth beyond “sole proprietorships.” The Kaufman Foundation reported that 82 percent of minority-owned firms are sole proprietorships versus 71 percent for other firms. To encourage expansion of minority-owned businesses, we need to create opportunities for mezzanine-level financing to help them grow.

• Increase access to capital. Small and medium sized businesses have been hammered from the finance industry. Many minority- and women-owned firms had challenges before the tightening of credit and now face an even bigger challenge in getting access to capital.


• Create connections to supply chain. Minority- and women-owned firms need to be more fully integrated into the range of supply chain networks within Wisconsin. Greater business-to-business development needs to be fostered in which minority-owned firms are an essential part of supply chain opportunities.

• Establish an Institute of Minority Economic Development to encourage, foster, and sustain greater minority business development in Wisconsin. This institute would be an organization representing the interests of underdeveloped and underutilized sectors of the state’s economic base. Part of the mission would be to build capacity by forging partnerships modeled after the Minority Economic Development Council in Ohio:

o Corporations and industries – facilitate commitments to supply chain diversity

with an emphasis around high growth industries. o Entrepreneurial development services – provide support to new entrepreneurs

as well as help sole proprietorships to grow and expand. o Professional services industry – build an advisory network for mergers and

acquisitions, funding, strategic business fundamentals and business management services.

o Successful entrepreneurs and corporations – encourage mentor-protégé relationships, partnerships and teaming.


IV. Growing Wisconsin’s Economy for the 21st Century: Attracting growth industries and high-paying jobs

“To build an economy for the long-term, we first need a strategic vision of what we want the Wisconsin economy to look like. This must focus on development of industry clusters with high-growth, high-wage potential, based on Wisconsin’s assets and competitive advantages. Clusters must be private sector led and regional in focus.”


To build an economy for the long-term, we first need a strategic vision of what we want the Wisconsin economy to look like. This must focus on development of industry clusters with high-growth, high-wage potential, based on Wisconsin’s assets and competitive advantages. Clusters must be private sector led and regional in focus. As Governor, Tom will work with regional economic development associations to develop cluster strategies and focus the state’s efforts and overall state policy – including our workforce development programs, capital investments, universities, natural resources, and financial incentives – on supporting them.

Tom Barrett’s Vision for the Future Manufacturing Wisconsin has a higher percentage of jobs in manufacturing than any other state. Wisconsin is known around the world for the quality of its manufacturing products and workforce. Manufacturing jobs demand considerable skills and training, and manufacturing accounts for a large share of American research and development spending. Indeed, this sector is part of the knowledge economy. Maintaining our manufacturing base generates countless economic spin-offs, especially in the small business sector. Selling more products manufactured in Wisconsin outside our borders leads directly to more wealth and jobs in the state. Manufacturing jobs pay substantially more than other jobs in Wisconsin, and the continued success of the manufacturing sector in Wisconsin is critical to our state’s future. The local purchases of Wisconsin-based manufacturers like Harley, Oshkosh Truck, Johnson Controls, and Bucyrus has a huge statewide impact. One study, for instance, found that just three companies – John Deere, Harley, and Oshkosh Truck – spent over $1.8 billion in our state with over 1,300 Wisconsin-based firms, and generating economic activity in all but 4 counties of the state. The presence of a strong, reliable, nearby supply base is a competitive advantage for us in attracting other firms to Wisconsin. But manufacturing is changing. The manufacturing sector is under intense pressure to become more productive. Wisconsin has a disproportionate number of smaller manufacturing companies. In the 1990’s, original-equipment manufacturers (OEMs) of high-value durable goods (such as cars, appliances, farming equipment) began outsourcing an increasing proportion of work to smaller supplier firms, while shrinking their own production base. Where 1970’s suppliers contributed 40 percent of the value of OEMs’ output, today they contribute 80 percent. For example, component-manufacturing suppliers are now key players in Wisconsin’s manufacturing economy, employing 75,000 people and accounting for 20 percent of the state's


durable-goods manufacturing jobs.7 Smaller firms with less than 500 workers, many of which lag behind their larger competitors in adopting global best practices, particularly with respect to research and development (R&D), now dominate Wisconsin’s manufacturing base. Innovative manufacturers win in a global marketplace and more importantly, they add jobs that drive the local and state economy. Eighty-five percent of Wisconsin-based manufacturers acknowledge that customer-focused innovation is critical to their organization's success over the next five years – but disturbingly, over half of those firms say that they have made average or below average progress in this area. Two-thirds of Wisconsin manufacturers invest five percent of sales, or less, in R&D. We need to change these numbers. We need to make Wisconsin home to the most innovative manufacturers in the world, and make sure and that the rest of the world has access to our top-quality products. We need to accelerate the manufacturing economy by enabling our manufacturing firms to invest in R&D – including new product development – and targeting new markets. An Example: Manufacturing Clean Energy Components The growth in renewable energy generation will create a demand that – accompanied by the appropriate incentives – will provide important new markets for manufacturers that are already manufacturing equipment similar to the components that go into new renewable power generation. With Wisconsin’s history as a national leader in manufacturing, and its proximity and easy access to markets in the rest of the Midwest, the western states (which have the greatest potential for solar and wind energy development nationally) and Canada, we are uniquely positioned to be a supplier of wind and solar components to those regions that will become major wind and solar energy producers. The Renewable Energy Policy Project (REPP) completed an analysis of the manufacturing components needed to build modern, large wind turbine technologies, and states’ historic manufacturing sectors. The results of this analysis were very encouraging both for the country as a whole and for Wisconsin in particular. Depending on assumptions, Wisconsin stands to receive nearly 14,061 new jobs and $1.6 billion dollars of investment in manufacturing components to supply the national development of renewable energy. Wisconsin is ranked fourth among states in terms of job gain, and fifth for potential investment. When the picture is expanded to include other renewable energy technologies, the potential benefit to Wisconsin manufacturing industries is even greater.8 The growth of the renewable energy industry will enable us to take our historic strengths in manufacturing – the infrastructure in buildings, equipment, transportation, and a talented workforce – and apply them in a growing, dynamic sector. Some specific examples of how this evolution in manufacturing might look:

• In Michigan, a closed Ford assembly plant is being converted to a “Renewable Energy Park.” The site is being retrofitted to manufacture equipment for wind and solar projects, and is also expected to house other green businesses and a renewable energy


training center. The park is expected to create more than 4,000 jobs, both at the park itself and at area suppliers.9

• At the University of Texas, researchers are trying to develop solar patches that can be mass-produced on huge printing presses like those used by newspapers.10 Our printing industry has tools and skills that could quickly be refitted to produce these ultra-thin solar cells, giving us a competitive edge over areas that would need to build manufacturing capacity from scratch.

• Similarly, thin-film photovoltaics are a new technology that involves making paper-thin solar energy panels. This technology is appealing because of the expanded applications relative to traditional solar panels, and also because they use so much less material (including certain types of silicon) than traditional solar panels. The industry is still largely in the development stage – there are, for instance, a few places that are starting to produce the photovoltaic films, including a company called Nanosolar in Palo Alto, California that uses machines from the printing industry – but that just means that this development should be occurring here in Wisconsin.

If we look forward and think creatively, we can apply our manufacturing strength to these new opportunities and create new jobs in new green industries.

Clean Energy The question the whole world is trying to answer is: How do we move from a fossil fuel-dependent economy to one that relies on clean, renewable energy? That question has particular economic urgency in our state: Wisconsin gets two-thirds of its electricity from coal – the third highest proportion in the U.S.11 – and over the long run, fossil fuels aren’t getting any cheaper: Wisconsin residents pay 39 to 70 percent more than they did in 2001. Cities and states across the nation, and countries around the world, are scrambling to jump into the race to become production hubs for wind, solar, geothermal, biomass, and other forms of renewable energy, driven by growing concerns about global climate change and fossil fuel availability. The Obama administration has already increased funding for renewable energy development, and the momentum and funding are only projected to grow. A 2006 study by the Energy Center of Wisconsin found that we are well poised to develop this industry for several reasons, including: our strong agriculture, forestry, paper, and food manufacturing sectors, which can provide diverse feedstocks; the large number of potential in-state end users; our university system’s ability to provide research and development; our strong workforce development system; and our multi-modal transportation network.12 This field is especially exciting because it touches so many economic areas – forestry, agricultural, and food


manufacturing wastes can be used as inputs; our universities can be tapped on to conduct research and development; and advances could lead to manufacturing opportunities in chemicals, pharmaceuticals, and durable goods. While this is a relatively new field, it’s one in which the state already has a foothold. In 2007, the University of Wisconsin-Madison received the largest federal grant in the university's history – $125 million – to house the Great Lakes Bioenergy Research Center. The Center has become a cornerstone in the development of the UW Energy Institute. As we move forward with bioeconomy development, we must be ever conscious of our role as stewards of Wisconsin’s abundant natural resources, and take steps to ensure that farming and forestry resources used in support of this industry are sustainably managed.

Demand-Reduction Technologies Demand-Side Management (DSM) refers to programs designed to encourage consumers to modify their level and pattern of energy usage. These technologies generally relate to increased energy efficiency for products and appliances, and building weatherization. Building Efficiency is one of Johnson Controls’ three specialties, so it is already in the game and could potentially be an “anchor” in building a demand-reduction technology cluster in Milwaukee. Building retrofit, weatherization, and efficient appliance programs can stimulate job growth in the manufacturing and construction sectors. Increasing demand for energy efficient building materials and appliances has the potential to invigorate domestic manufacturing centers to produce advanced-performance windows, insulation, appliances, and other high-efficiency durable goods. Demand in this area can be stimulated by building the capacity to conduct more residential, commercial and industrial energy efficiency assessments and providing carefully targeted incentives for consumers to act on the recommendations. Many construction workers and trades people would need only moderate retraining and the proper certifications to enter the building retrofit workforce.13 In general, the state can create demand for energy-efficient products by encouraging efficiency standards and providing incentives (such as tax rebates) for consumer to buy these products. The state can also provide home, business, and industry weatherization programs.


Health Care and Bio-Tech Biotechnology is technology based on biology, agriculture, food science, and medicine. The field has many components: stem cell research, genetic engineering, pharmaceuticals, medical devices, bioinformatics (the application of information technology to the field of molecular biology), health care information technology, and health care services. It is the fastest-growing segment of the Wisconsin economy, with an annualized growth rate of nearly 7 percent. Biotechnology in Wisconsin is an $8.7 billion industry with over 600 companies, roughly 25,000 employees, and a total employment impact in Wisconsin of 71,600 jobs.14 What led to the development of this industry in Wisconsin? A history of biotech innovation leading back to the 19th century; institutions such as the UW-Madison, the Medical College of Wisconsin, the Marshfield Clinic, and the Wisconsin Alumni Research Foundation (which supports the scientific research at the UW-Madison by moving inventions arising from the university's laboratories to the marketplace); the University Research Park; and the leadership of many other individuals and organizations over time have combined to produce the right climate. It wasn’t created overnight, it developed over time.15

• It was UW-Madison developmental biologist Dr, James Thomson who was the first to isolate embryonic stem cells and the fist to produce quality stem cells from skin cells – without the need to create or destroy embryos. Dr. Thomson is in the good company of 120 other preeminent stem cell researchers centered around UW-Madison, making it the largest and most experienced cluster of stem cell researchers in the world.16

• Our state is a growing player in the field of biotechnology, ranking:

o 11th best in Higher Education Degrees in Biotechnology Fields o 13th best in Total Academic R&D Expenditures o 15th best in Biotechnology R&D Expenditures o 16th best in NIH Funding

• Wisconsin’s biotech jobs grew by nearly 16 percent, and the number of biotech

companies by 25 percent, from 2001 to 2008. Our state is one of only two specializing successfully in all four biotech sectors – agricultural feedstock and chemicals, drugs and pharmaceuticals, medical devices and equipment, and research and testing.17


• Venture capital invested in state bioscience during the last six years totaled $295 million, led by pharmaceuticals and human biotechnology, the report noted. The 2,187 patents issued to Wisconsin inventors over the same period were diverse, led by surgical, medical instruments and biotechnology. Since 2004, academic research and development funding in Wisconsin has risen by almost 21 percent, with $440.1 million of the state’s biotech research funding coming from the federal National Institutes of Health.

• Recently, eight biotech companies moved here from other states,18 and Verona,

Wisconsin, is home to Epic Systems, the world’s fastest-growing medical software company, which employs around 3,000 Madison-area workers at its 400-acre campus,19 In particular, “medical devices is one of our state’s “emerging clusters.” The Medical Device Industry is a major feature of the State of Wisconsin and an important contributor to the economic health of the state. Wisconsin’s medical devices sector includes an array of instruments, machines, and medical devices for the diagnosis, cure, treatment, or prevention of disease. This sector is closely connected with Wisconsin’s emerging biotechnology, health-care delivery and health-care information sectors as well as the historically strong manufacturing sector.20

This is a sector with high-paying jobs, so it is worth investing in. According to the US Census Bureau, the median income in 2004-2005 in Wisconsin was $45,956. The average annual wages in bioscience subsectors in Wisconsin was significantly higher:

• $75,012 in drugs and pharmaceuticals. • $63,402 in medical devices and equipment. • $57,339 in research, testing, and medical laboratories.21

Wisconsin should look forward and provide the incentives, leadership, and focus that are needed to capitalize on our momentum so we can grow into a leading biotech center. Madison’s economy is already moving toward health care and biotech. Much of the growth in health care and biotech is due to efforts by the UW–Madison to work with local businesses and entrepreneurs to transfer the results of academic research into real-world applications. The University of Wisconsin Hospital & Clinics is an important regional teaching hospital and regional trauma center, with notable strengths in transplant medicine, oncology, digestive disorders, and endocrinology. The University has also become a leader in stem cell research. The dominant economic development strategy for this region would be to target the health care/biotech industry and try to turn the area into a regional or national hub for both research and technology production. The state should strengthen the relationship between university R&D and private sector needs, with a focus on health care/biotech. Upon investigation, it may be determined that the region would benefit from an even more specific focus, such as stem cell research or transplant medicine.


Other areas of the state have the potential for growth in the health care and biotech fields, as well:

• Sheboygan, Oshkosh-Neenah and Milwaukee-Waukesha all have strengths in at least one of the four biotech sectors.

• Kenosha’s largest employer is Abbott Laboratories, a diversified pharmaceuticals health care company. It has three colleges, a hospital and medical center.

• The I-94 corridor centers on Eau Claire, approximately one hour and 40 minutes from

Minneapolis-St. Paul, Minnesota. Since the loss of several thousand manufacturing jobs in the early 1990s (due to the closure of the local Uniroyal tire plant), the city's economy has been reshaped by the opening of a number of plants engaged in the construction of computer hardware, such as Hutchinson Technology's largest plant, and IDEXX Computer Systems, a division of IDEXX Laboratories. The region has an assortment of manufacturing facilities, including electrical machinery and equipment, glass, and rubber and plastics. Additionally, the region has a strong health care industry. A promising economic development strategy would be to build off of these strengths and try to develop a health care technology manufacturing cluster in this region.

Advanced Manufacturing There is no agreed-upon definition of advanced manufacturing. In general, it refers to the trend in manufacturing away from large original equipment manufacturers (OEMs) towards more specialized, small-scale, adaptable, diversified, networked producers and the changes in management techniques needed to run this new type of operation. It is also called Advanced Planning and Scheduling (APS). APS simultaneously plans and schedules production based on available materials, labor and plant capacity. APS may be used in “Make to Order” facilities or places where different components are made in the same facility compete for plant capacity. In many industrial sectors, the relationships and responsibilities between large Original Equipment Manufacturers (OEMs) and their suppliers are in flux. Firms are increasingly focusing their activities on their own core competencies and relying more heavily on the outside to support the rest. At the same time, shorter product life-cycles, increased product differentiation and greater global competition have required all firms to innovate more quickly, effectively, and efficiently, which has required stronger partnerships with others. Firms must form these more “intense” collaborations within an increasingly network-centric manufacturing environment. Intense collaboration success will ultimately be based on the trust between firms since traditional “arms length” competition-based relationships have proven to be a barrier to the innovation process. As manufacturers begin switching from arm’s-length relationships to more intensely collaborative ones, these newly formed and closely integrated “value” networks will require new types of partnerships and governance. Related to advanced manufacturing is advanced manufacturing technology, which are high tech developments in computing and microelectronics designed to enhance manufacturing


capabilities. Advanced manufacturing technology is used in all areas of manufacturing, including design, control, fabrication, and assembly. This family of technologies includes robotics, computer-aided design (CAD), computer-aided engineering (CAE), MRP II, automated materials handling systems, electronic data interchange (EDI), computer-integrated manufacturing (CIM) systems, flexible manufacturing systems, and group technology. State government can provide networking, business, and technological support for those producers who are using this new model. For example, it could provide a database of in-state manufacturers, or training on how to specialize and identify markets.

The Emerging Water Industry Wisconsin has fresh water in abundance. We use our lakes, rivers, and groundwater for recreational purposes, agriculture, manufacturing, shipping, and of course, drinking. We have historically worked hard to protect our water resources: Wisconsin was among the first states to create programs to begin to address water pollution. That fifty-year history has resulted in a concentration of talent and the development of a water resources industry with the potential to be an outstanding economic growth driver in the region. The value and scarcity of clean water is increasingly being recognized by governments and industry. With that recognition comes greater interest in solving water problems. Milwaukee is on the cusp of becoming a world leader in the water resources industry; it already is a hotbed for water treatment. There is a critical mass of water and wastewater treatment companies there and it has access to a

well-educated workforce. With the right incentives to push the development of this industry, Milwaukee stands poised to become the “Silicon Valley” of the water resources industry. One reason Milwaukee has such great potential in this field is the state’s manufacturing density. Many local manufacturing firms are major suppliers to the companies that are more directly involved in water treatment. Even those firms that do their own or most of their own manufacturing buy parts from other firms located in the region. For example, building a wastewater treatment plant requires machinery, which translates into contracts for steel benders, plastic makers, electronic controls, and all sorts of other parts. One reason solution-providers have located here is that they can find most, if not all, of what they need in the supporting manufacturing sector.22


Milwaukee is not alone in recognizing the opportunity for job and wealth creation. Singapore, Cleveland, and the state of Michigan are also working to develop their water resources industries. Milwaukee is unique in the degree to which it already has started to build a “water cluster” in response to this opportunity.23 The Milwaukee 7 Water Council, consisting of members from business, academia and government, is working to make the Milwaukee Region the world water hub for freshwater research, economic development and education. And Marquette’s is the only law school in the Upper Midwest with a special course sequence in water law. Wisconsin needs to capitalize on this opportunity statewide: If we are going to become the international center of water technology, we must be willing to commit significant resources to the development of that industry now.

New Media and Film Just as technology has infused everyday life and industry, it is also playing an expanded role in the arts. The field of new media technologies includes digital art, computer graphics, computer animation, virtual art, Internet art, interactive art technologies, and computer robotics. A related field is the film industry, which consists of both the technological and commercial institutions of filmmaking (i.e. film production companies, film studios, cinematography, film production, screenwriting, pre-production, post production, film festivals, distribution, actors, film directors and other film personnel). These exciting fields have the potential to provide yet more high-tech jobs that are of particular interest to the young, highly-educated workers that Wisconsin needs to keep. While perhaps appearing ephemeral in light of Wisconsin’s hard-core manufacturing experience and needs, this industry actually is central to our prospects for a brighter economic future because of its role in attracting and retaining young people. One of our biggest exports is bright young people – which is a problem. For decades, Wisconsin has been losing population mostly among the young, who increasingly migrate out to find better job opportunities elsewhere. This is particularly true among better-educated young Wisconsinites – which is particularly ironic given our success in attracting them to our high-quality university system. We rank in the top quartile of states in producing college science and math majors – but we rank in the bottom ten for the percentage of science and math majors in our workforce. In short, we’re educating the building blocks of a major technology economy here in Wisconsin . . . but then we’re losing them to other states. We need to find ways to keep these high-value young workers here in Wisconsin – and that means attracting the kinds of jobs and employers where they want to work. Under Tom’s leadership, Milwaukee is moving to become a home to new media production. The state’s economic development tools should be used to target the region between Milwaukee and Madison, with its high-tech industries and concentration of universities and young people, as a “hi-tech creative corridor.” The “creative class,” a socioeconomic group first identified by economist Richard Florida, spans occupations in the arts, computer programming, research, and engineering and design – as well as those in professional careers that use bodies of knowledge to solve highly specific problems. According to Florida, the creative class will be a leading


sector of growth in the new economy, with over 10 million new jobs requiring these “creative” skill sets in the coming decade.

Tom Barrett’s Policies to Make This Vision Real Promoting Innovation in Manufacturing As Governor, Tom will make Wisconsin a leading state in the country for innovation in manufacturing. Tom will support the strongest supply base in the country for select industry sectors, an asset that will enhance business retention and make Wisconsin even more attractive to new and relocating businesses, creating high-quality jobs throughout the state. Tom will restore Wisconsin’s traditional manufacturing prowess – with a focus on our interdependent OEM and supplier manufacturers – and set us on a path to “high road” growth into new and promising fields for the 21st Century by:

• Doubling Wisconsin’s research and development (R&D) tax credit to 10%. According to the National Association of Manufacturers, R&D spending is the single biggest driver of productivity increases in manufacturing. Wisconsin companies spend less on R&D than the national average.

• Focusing Department of Commerce, and specifically the Wisconsin Manufacturing Extension Program (WMEP), resources on supporting small manufacturers in developing innovative products, especially in areas of renewable energy and energy efficiency.

• Creating a lean manufacturing boot camp for small manufacturers, using WMEP,

UW, and WTCS resources. The Center on Wisconsin Strategy has shown that cooperative partnerships between larger OEMs (like John Deere and Harley Davidson) and smaller firms can increase competitiveness for both sectors. In the late 1990’s, a pilot partnership between WMEP and the Wisconsin Manufacturers Development Consortium, comprised of leading OEMs, provided advanced efficiency training for 1,600 employees of 50 supplier firms – resulting in modernization of operations and quantifiable improvements in productivity (such as delivery time, cost, and plant safety) as well as wages.24

• Working with large Wisconsin manufacturers to identify suppliers who could be

relocated to the state.


• Supporting greater collaboration between UW and state manufacturers – rebuilding

the “Wisconsin Idea” for the manufacturing sector. Support manufacturing Centers of Excellence at selected campuses focusing on locally-relevant manufacturing sectors based on clear demand from the private sector.

• Increasing focus on export promotion. Work through regional economic development

associations to identify and provide technical assistance to companies that could benefit from an international customer base. Leverage WMEP ExportTech program and Commerce International Trade staff. Expand WMEP's ExportTech program which jump starts participation by manufacturers in export opportunities

• Increasing linkages between manufacturers, educational institutions, and

workforce development boards to train workers and promote manufacturing careers, building on the success of organizations like Northeast Wisconsin’s NEW Manufacturing Alliance.

• Developing early-warning system to connect manufacturers with relevant resources

before they get into financial trouble. Work with multiple stakeholders (regional economic development associations, chambers of commerce, educational institutions, Commerce, WMEP, labor, etc.) to implement.

• Connecting up to the Midwest High-Speed Rail initiative. Our road, rail, and air

links are the essential infrastructure for business – enabling the flow of people, capital, goods, and services that are vital to economic growth. Our state’s manufacturers in particular depend upon our road and rail networks. As governor, Tom will preserve essential infrastructure spending. In addition, the federal government has offered to provide $810 million to fund a high-speed passenger rail line between Milwaukee and Madison, the first link in a system that will eventually tie those two cities, the Fox Valley, and Western Wisconsin to Chicago and Minneapolis. Construction alone will create thousands of jobs, and the train itself will increase commerce and give people a transportation options for years to come. Today’s Republican Party has forgotten what President Dwight Eisenhower knew: investments in infrastructure can create economic growth. Unlike his GOP opponents, Tom supports high-speed rail as part of Wisconsin’s future.

• Helping manufacturers to incorporate more advanced technology into their systems

to reduce costs and increase output and efficiency. Advanced technology can play a pivotal role in the competitive success or failure of manufacturing in Wisconsin. WMEP currently provides technical expertise and business assistance to help small to mid-size manufacturers adopt advanced business practices and technologies for increasing productivity. In addition to technical assistance, however, many manufacturers seeking to improve productivity need to make substantial investments. Tom will create a 10 percent Advanced Technology Tax credit, to be made available to qualified manufacturing firms who, in consultation with WMEP, identify and invest in appropriate technology upgrades designed to quantifiably increase productivity.


Expanding “Cleantech” Industries

In 2007, Wisconsinites spent $21.6 billion on energy; two-thirds of it on fuel costs, providing zero economic benefit to the state’s economy because Wisconsin has no native oil, coal or natural gas resources. But as the costs of these energy sources continue to rise – and thus demand for alternatives increases – Wisconsin can both save money and stimulate new economic growth by developing clean, renewable, and locally-produced energy sources. Hundreds of millions, and possibly billions, of dollars will be invested in cleantech – high efficiency and clean energy and water technologies – in the next 10 years, including: smart grid technologies, energy storage, water metering and purification, electric car recharging infrastructure, and other fast-growing industries. As Governor, Tom understands energy conservation is a journey not a destination and to move forward he will:

• Foster wind energy through improved transmission capacity. In 2008, Wisconsin

had the fourth highest rate of growth in wind capacity: up to 448 Megawatts.25 We Energies wind farm projects will soon be under construction by three Wisconsin firms at Glacier Hills Wind Park outside of Madison, which will generate 145.5 MW of electricity, or enough to power 45,000 homes. While up-front construction costs are high, once operational wind power produces very little in the way of operating costs – and zero polluting emissions. Within the Midwest region, however, construction of 77,000 MW of wind power capacity is on hold, due to a lack of excess transmission capacity that could pose problems getting new electricity to the grid. As Governor, Tom will work closely with our neighboring states to coordinate transmission expansion to maximize the effectiveness of our investments in renewables.

• Establish an interest-free Industrial Matching Loan program, initially in the amount

of $25 million each year over the next 5 years to be used as a match for federal grants to develop innovative ideas to reduce energy in manufacturing and to deploy energy saving technologies. Federal agencies, such as DOE provide millions of dollars on a competitive basis, but these federal agencies require non-federal matching funds sometimes as high as 50% of the total project costs. Wisconsin needs to capitalize on these federal funds.


Promoting Biofuel Availability and Use While great strides have been made, the technologies to produce such fuels are not yet fully developed for wide-scale commercial deployment. As Governor, Tom will:

• Advance conversion technology commercialization. While the current ethanol and biodiesel industry continues to grow, it is crucial that action be taken to mitigate risk in developing next-generation technologies in order to speed the transition of new technologies to commercialization.

• Broaden existing bioenergy incentives and create new

incentives that promote many uses of biomass, including not only a range of different liquid fuels, but also natural gas, heat and electricity.

• Develop next-generation regulation. New technologies can deliver environmental

benefits, but often do not fit neatly into existing regulatory schemes. This can create challenges for regulatory agencies and industry. Collaboration is needed to develop permitting rules for advanced technologies, share information about the environmental impact of various advanced technologies, provide regulatory exemptions for novel demonstrations to allow experimentation, and promote innovative regulatory strategies that seek to reward projects with good overall environmental characteristics.

• Provide technical assistance to advanced technology projects. By funding front-end

engineering and design studies and other feasibility studies, providing business planning and mentoring, and expanding technical capabilities, Wisconsin can help develop advanced technology projects.

• Increase regional research collaboration. By coordinating state and private research to

develop an information clearinghouse based on advanced bioenergy research and demonstration projects in the region. Identifying crucial research needs, organizing and launching regional research and other initiatives addressing key challenges to development of the bioeconomy, and promoting regional commercial-scale demonstrations of various biomass feedstocks will also be effective tools in promoting regional collaboration.

• Develop the Midwestern infrastructure for the manufacture of biobased products.

A key to the advanced bioenergy complex will be the profitability of the manufacturing of biobased materials that are co-products of biobased fuels. This materials industry is in its infancy, however, supporting research determining how the biomaterials supply chain can mature in conjunction with the biofuels sector and how new products can achieve economic viability.


• Develop Midwestern biobased products. Adopt biobased product procurement rules at the state level, participate in a regional biobased product procurement program with a common list of products, and consider expanding the program further by creating a regional certification program and promoting it through education and incentives for business participation as a means to foster biobased product development.

• Overcome the difficulty of biomass feedstock logistics. Employ technical assistance

and incentives to projects that are seeking to develop a supply of cellulosic biomass for bioenergy projects.

• Promote a perennial biomass supply. Because of the synergies between farm

economics, biofuel production and environmental objectives, supporting the development of a perennial biomass supply should be a priority. Develop and expand programs and incentives that encourage landowners to grow perennial crops and supply products to a bioenergy plant in a way that targets improvements in soil/water quality, wildlife habitat, soil erosion and carbon sequestration.

• Establish a Biofuels Fund in the amount of $15 million per year for 4 years to promote

the development of cost-effective breakthrough technologies to produce advanced biofuels. If necessary these funds can also be used as a match for federal grants, provide incentives to companies to relocate their companies in Wisconsin, and provide tax credits to qualified investors. Like venture fund tax credits, Tom also plans to increase Angel fund tax credits to 40% from 25%. This new policy will help Angel investors to recruit additional members and increase the pool of money for start-up companies.

• Create a Wisconsin BioIndustry Export Assistance Office. Exports will become increasingly important for Wisconsin and the US to emerge from recession. Biobased products such as wood pellets, dried distillers grains, biofuels, biochemicals or other biobased products are often produced and sold by small businesses that do not have the amounts, budget or expertise to effectively compete internationally. These small companies are often left with selling their products to large wholesalers at very low margins. A state funded export office could assist Wisconsin companies with breaking in to overseas markets, aggregate the output of small companies into large enough quantities for direct export (wood pellets, distillers grains), and assist with other export related activities. This office could help increase exports and help keep more profits in Wisconsin.


Expanding the Use of Biomass Biomass-based industries are those based on technologies that turn organic matter (“feedstocks” or “biomass”) into energy, fuel, pharmaceuticals, and other products. Biomass energy uses organic matter such as wood or plants to create heat, generate electricity, and produce transportation fuels that burn cleaner than oil. Biomass energy is growing rapidly and now accounts for 45 percent of the renewable energy used in the United States, helping to improve environmental outcomes and decreasing our reliance on oil. As Governor, Tom will:

• Push for policy incentives that shift our investments in oil to investments in biofuels through the development of tax credits and loan guarantees for the development of cellulosic biofuels and biodiesel, in particular, the four major areas of biofuels development: feedstocks, deconstruction, fuels synthesis, and technologies.

• Explore incentives for public vehicles to use biodiesel. Biodiesel is a renewable fuel

that can be manufactured from new and used vegetable oils, animal fats, and recycled restaurant grease. Although it is similar to petroleum diesel, biodiesel emits far fewer greenhouse gas emissions and toxic air pollutants when consumed. As long as the vehicle was manufactured after 1993, biodiesel can be used in diesel engines with little impact on operating performance.

• Spread it around. In 2007, the University of Wisconsin-Madison received the largest

federal grant in the university's history - $125 million - to house the Great Lakes Bioenergy Research Center. The Center has become a cornerstone in the development of the UW Energy Institute. Since likely feedstocks include farm, forest, and food industry wastes, there are possible productive sites all over the state. Siting developments in distressed areas around the state will help revitalize local economies while advancing science.

Building a Market for Demand Management Industries

• Enhance and increase funding for Wisconsin’s existing Focus on Energy program through adoption of challenging goals to further reduce energy consumption. The Focus on Energy Program is one of the best programs in the nation, and is unique because it focuses on deployment of both emerging technologies by using a very creative investment model and best practices by providing incentives as grants. Its annual energy savings results are audited each year by an independent third party, it provides significant benefit to cost ratio, and it has been recognized nationally.

• Launch a program to retrofit existing businesses and housing stock, creating jobs

especially in hard-hit construction trades. As Governor, Tom will authorize local governments to create Energy Finance Districts to provide residential, commercial and industrial loans to retrofit properties with energy-efficient systems, including tankless water heaters, low-flow toilets, energy efficient windows and wall/roof insulation. These loans would be repaid through future energy savings. Since 2008, at least 14


states, including New York, California, Colorado, Texas, Virginia and Louisiana, have enacted similar legislation.

• Engage utilities as aggregators and administrators in delivering efficiency programs to customers. They are the entity that customers interact with most directly and most often, so they could do more to advance efficiency – both through their own programs and by advocating for state programs.

• Undertake a public education campaign targeting both commercial and residential

customers. Public service announcements, information included with billing, and outreach in communities, can alert people to both the potential savings from adopting efficiency measures and the programs available to assist them. This is already a core industry strength in Wisconsin, thanks to such industry leaders as Johnson Controls in Milwaukee and Orion Energy in Manitowoc

• Encourage use of energy-efficient appliances and technologies here in Wisconsin:

o Weatherization/Building Retrofit programs - insulation and window efficiency,

sealing air leaks and duct leaks o Lighting efficiency o Efficient refrigerators and other appliances o Maintaining or replacing heating and cooling systems

• Provide consumer incentives including:

o Challenge local governments and communities to meet specific energy efficiency

goals and provide technical and financial assistance as needed. o Engage utilities as aggregators and administrators in delivering efficiency

programs to customers. They are the entity that customers interact with most directly and most often, so they could do more to advance efficiency – both through their own programs and by advocating for state programs.

o Develop a combination of “carrots and sticks” that policy-makers can use and help encourage greater efficiency and find ways for low-income customers to manage the front-end costs of efficiency improvements.

• Encourage more efficient building standards. Wisconsin needs to examine residential

and commercial energy efficiency construction codes beyond International Code Council model standards (including government buildings). The residential code would be equivalent to the current Energy Star Homes standard (Energy Star currently is a 15 percent reduction from the International Energy Conservation Code) and the commercial code will be capable of reducing energy consumption by 25 percent from the current code. The building code would also apply to state buildings.

• Provide green building incentives for the private sector. With such great savings possible from high construction standards, green building makes sense for both public


and private buildings. States can encourage private developers to meet high performance building standards by providing tax credits for building green. Under most systems, a green building tax credit is awarded to taxpayers who construct a building that receives LEED certification or meets certain requirements. There are several different criteria that states can use to determine the eligibility for, and value of, the credit. These include the floor space of the building, total square footage, LEED rating, and the percentage increase in energy efficiency. Maryland, Oregon, and New York all have a tax credit program to help offset the additional costs incurred by builders.26 If developers build an “Energy Star structure,” they might qualify for preferential and/or lower-interest financing.


V. Keeping Wisconsin’s Agriculture Strong: Expanding prosperity for our farmers and rural communities

“Tom wants to help make agriculture as much an “industry of the future” as all the others.”


When some people think of Wisconsin, they think of cheese. Agriculture is very much a part of our economy, and has the potential to be an even greater part – and that means a whole lot more than cheese. Dairy will remain the centerpiece of Wisconsin’s agricultural economy – in fact, Tom’s goal is to make Wisconsin the top dairy state in the country. But our agriculture industry is far more extensive and innovative – we produce specialty crops like cranberry and ginseng valued throughout the world, our wood products are some of finest in the world, we are one of the leading organic food states in the country, and many of our farms are creating an expanding range of value-added products. Tom wants to help make agriculture as much an “industry of the future” as all the others discussed in this Plan. Here is what Tom will implement:

Making Wisconsin America’s True Dairyland Dairy farming is the largest industry in Wisconsin, generating $26.5 billion for the state’s economy accounting for 54 percent of our state’s total agriculture revenue, and employing 150,000 people – including 13,000 family farmers.27 Our state is second only to California in dairy production.28 Tom wants Wisconsin to be #1 again. Unfortunately, the economic downturn has hit the industry hard, with high feed costs and low milk prices. Milk prices averaged $13 per hundredweight in 2009 – reaching a low of just $9 – down from $19.27 in 2008. Unlike California, however, Wisconsin has the advantage of producing its feed grain locally. 29 As a result, we are better positioned to weather tough times; where in California farmers were compelled to reduce their herds by 4.3 percent last year, Wisconsin herds actually grew slightly by 0.3 percent.30 Nonetheless, dairy farmers lost an average of $1,000 per cow in 2009, and farm income dropped by 56 percent to $1.1 billion, the lowest since 2002 – amounting to statewide losses of $1.8 billion.31 Dairy farm indebtedness rose to 18 percent of assets from 15 percent. While the dairy industry is still financially sound, with an average debt-asset ratio of less than 20 percent, the hardship to family farms cannot be understated: Wisconsin farmers have had to use equity- and personal lines of credit to keep their businesses afloat. As Governor, Tom will make Wisconsin the uncontested Milk State. Tom will:

• Support enhanced tax credits for dairy and dairy processing facilities. Wisconsin’s dairy farmers have just weathered one of the worst years for business in recent history. Given the losses that some have incurred, it seems counterintuitive to now invest in operations improvements and expansion. Yet with dairy prices and demand on the rebound, Wisconsin is poised for a strong comeback – and now is exactly the time for many of our dairy farms to make the capital investments in the latest and best available technologies that will enable Wisconsin’s dairy sector to recover in a stronger position than ever. The Dairy Investment Tax Credit, which expired this year, allows dairy farmers a 10 percent income and franchise tax credit for expenditures on modernization


and expansion. This incentive helps create and retain jobs, and encourages our number one industry to invest in growth. That is why Tom supported Assembly Bill 756, which will extend the Dairy Investment Tax Credit until 2012, allowing up to $75,000 per claimant.

• Promote value-added opportunities for dairy farms of all sizes. Wisconsin needs its dairy farms, from the largest to the smallest, in order to achieve our goal of being the national leader in dairy products.

• Balance regulatory relief with environmental protection to ensure that our dairy industry is able to grow and stay profitable. Agriculture has seen unprecedented competitive pressure in recent years. Farms are businesses, and many Wisconsin farms have been compelled to make greater capital investments and increase their scale of operations in order to compete and survive. Just as Wisconsin needs its farmers, our farmers need a state that provides an agribusiness-friendly environment in which to grow. The Livestock Facility Siting Law enacted in 2006 has enabled farmers in our state to expand their businesses, by cutting bureaucratic red tape and increasing transparency. It allows, but does not require local governments to issue livestock facility permits, and it protects larger facilities against arbitrary zoning discrimination that is not based on established public health and safety grounds.

As the number of large-scale farming operations increase, we are presented with new environmental challenges; protecting our water and land-quality is paramount. But agriculture and natural resource management are often falsely presented as being at odds – our agriculture industry is also dependent on these resources for its continued viability. Farmers provide the backbone and life blood of our economy; they must not be vilified, but engaged as key partners in the stewardship of our land and water resources. New technologies for handling livestock waste and wastewater include anaerobic digesters and waste dewatering that can help mitigate waste concerns.32 Furthermore, the encroachment of suburban sprawl on agricultural land has had the dangerous effect of concentrating large-scale farms into increasingly smaller areas. Growing farms on shrinking farmland is not good for farms and not good for the land. As Governor, Tom will continue to support the existing agricultural siting law that allows our farming operations to grow and compete, while proactively pursuing policies to preserve farm land for agricultural use, and working with industry to develop and adopt best resource management that protect the sustainability of Wisconsin agribusiness.

• Establish an annual operating loan program through the Wisconsin Housing and Economic Development Association (WHEDA). This program could provide an additional $100,000 loan (maximum) to eligible dairy farms, to be repaid over a five-year period.

• Promote and protect the integrity of Wisconsin’s Organic Dairy Industry Wisconsin leads the nation in organic dairy family farms. These family farmers have faced enough challenges in recent years without the additional burden of competing with cheap counterfeits that have flooded the market. Organic farmers in Wisconsin have


worked hard, and made large investments in developing a strong reputation for ethics and quality. Unfortunately, federal rules have put the authenticity and integrity of certified organic products at a level where large food processing entities can enter the market by circumventing the sound organic-certifiable rules that Wisconsin’s organic dairy farmers have proudly followed for years. These large conglomerates have entered into the organic market by flooding markets, which violates both the spirit and letter of U.S. organic labeling laws. Aurora Dairy, for example, a $100 million corporation with five farms in Texas and Colorado, has been undercutting Wisconsin organic farmers by fraudulently selling its products as “organic” to large grocery retailers across the country that has contributed to the rock-bottom milk prices that threaten Wisconsin’s organic industry. This corporation was found by the USDA to be in “willful” violation of at least 14 provisions of U.S, organic law in 2007. Yet the Bush Administration never took any enforcement action, in spite of the billions in resulting losses imposed on compliant organic farmers in Wisconsin and elsewhere. Since 2007, 19 class-action lawsuits have been brought against Aurora for consumer fraud. As Governor, Tom Barrett will end the unfair, illegal competition that is crushing our proud organic industry. He will insist that the USDA enforce the law and level the playing field for the Wisconsin farmers who choose business practices that are in compliance with U.S. organic standards.

Expanding Other Value-Added Agriculture We need to find industries, companies, and jobs that can take advantage of the strengths of rural life and complement them, rather than destroy or replace them – while still moving forward into potential growth areas in the coming years. This means looking at “value-added” agriculture, turning raw agricultural products – animal or vegetable – into a processed product that commands higher prices and delivers higher incomes to farmers. There is more to farming today than simply growing commodity crops. Farmers know they can earn more by growing different types of crops, growing organic crops, or by raising nontraditional species of livestock. Other farmers are directly processing their crops into finished products that they market themselves. To support this new agricultural environment, states can provide capital, technical assistance, and infrastructure support that are not tied to the production of a specific commodity.33 Wisconsin can profit from the same value-added agricultural development strategy as states like California and Washington, which have successfully transitioned their declining hardwoods industries into associated value-added activities as wood product manufacturing. There are boundless value-added opportunities among the many unique strengths and advantages of our rural communities and economy.


In particular, the Department of Agriculture, Trade, and Consumer Protection (DATCP) has worked to enhance the state's specialty foods reputation with development rooted in specialty meats, livestock and dairy; promote strong market development efforts to create branded products and promote a "From Wisconsin" brand identity with national and global recognition; develop high-value industrial crops for nutraceutical (nutritional supplement) and pharmaceutical uses, along with ethanol and fiber crop production; and establish industry-led entrepreneurial agricultural with a state partnership and a proven development framework.34 As governor, Tom will build on existing programs to increase value-added agriculture in Wisconsin. Specific initiatives include:

• Agriculture Development and Diversification (ADD) Grant Program. Since 1989,

DATCP has funded 342 projects with $6.8 million in grants to stimulate and explore the development of new value added products, markets, or technologies in Wisconsin. Those grants in turn have leveraged $39 million in investment, and generated economic returns to the state of $140 million – a good return on our investment.35 Current projects funded include initiatives to develop sweet potatoes and walleye as cash crops, field trials for hardy table grapes, and a feasibility study for a biomass aggregation facility. GATT Grants, which are awarded competitively at up to $50,000 per approved project36 are an important resource for agricultural innovation, and can also help Wisconsin farmers diversify into ready markets where demand is currently unmet. For instance, most U.S.-grown ginseng is exported to China and Hong Kong, whereas most U.S. consumed ginseng is imported from Korea.37 Opportunities for Wisconsin ginseng farmers to develop domestic markets for their products should be actively pursued.

• Organic Agriculture. Wisconsin is a top-ranked state in organic agriculture. In 2005, the most recent year for which national data is available, only California had more certified organic farms than Wisconsin. In 2007, a survey of organic certification organizations found that there were approximately 900 certified organic farms in the state. Wisconsin is a leader in organic food production; it is first in organic dairy production, and top-ranked in organic livestock production, and organic herb and greenhouse acreage. It is among the top three states in acres planted to organic corn, hay and silage, and number of organic beef cows. Additionally, the number of certified organic processors in Wisconsin increased 30 percent from 2005 to 2006. Add to that the seed, input and equipment businesses that support the organic industry and you have 201 companies operating in the state.38 As Governor, Tom will support the state cost sharing initiatives in place for organic certification of farms. A good economic development strategy for this region would be to help farmers develop and find markets for value added agriculture, such as organic foods and food processing.

• Forestry. By exporting its natural resources as raw materials without manufacturing finished products, a forested region also exports jobs. Today, the growing recognition of lost opportunities in the timber industry is generating support for turning timber into valued-added products: shingles, paneling, flooring, decking, cabinetry, wood paneling, hardwood veneer, plywood, boxes and containers, log home kits, furniture, boats, caskets, signs, musical instruments, games, crafts and gifts. Value-added forestry could increase economic development in our state’s northern counties, where forestry is an


important industry, as well as in other readily accessible counties with a manufacturing base.

• Agricultural Innovation – New Uses for Old Crops. Identifying and developing a

new use for an existing agricultural product or commodity produced from renewable plant and animal sources is an important strategy for value-added agricultural development. For instance, Wisconsin is the nation’s leading producer of cranberries, and 25 percent of the production is shipped overseas. In these other countries, cranberries are found in products where they are not found in the U.S., such as Maraca Cranberry Kiss, a cranberry-flavored soft drink made in Australia; in France, cranberry-flavored ice pops are shaped to resemble James Bond actor Daniel Craig; and cranberry frozen pizza is a popular treat in Germany. The Cranberry Marketing Committee has strongly focused on promoting cranberries in other parts of the world.39 Wisconsin’s cranberry growers and food-processing industry should replicate their successes here in the U.S. Food processing is a growth-oriented industry; Del Monte foods employees 1,250 workers at its three Wisconsin plants, and contracts with 114 local Wisconsin growers.40 As Governor, Tom will support the expansion of food processing tax credits that help every sector of our agricultural base to innovate and develop value-add processed products that enhance revenues, create jobs, and promote an agricultural-industry diversification.

• Wisconsin’s Brand.

The “Something Special from Wisconsin” Program has offered Wisconsin farmers access to the trademarked Wisconsin brand identity since 1983 through a partnership of DATCP, UW Extension, the Wisconsin Grocers Association, and Thrive – regional economic development entity. SavorWisconsin was launched in 2002 as a program to expand the availability of Wisconsin products through technology – making online purchase and direct-from producers purchase available to more consumers outside Wisconsin, from delivery service to mail order access to local farmers’ markets and roadside stands. The people of Wisconsin know this brand represents integrity and the highest quality – but we need to get the word out to the rest of the country, and the world. One Wisconsin product that has recently reached new heights in gaining national exposure is Beechwood Cheese of Washington County, which just filled its largest ever order for 3,125 pounds of “Almost Famous” cheddar cheese curds for consumption on Midwest and Frontier Airlines – where it is consumed by travelers en route to far flung destinations. As Governor, Tom will launch a targeted marketing campaign in partnership with the Something Special and Savor Wisconsin programs specifically to


target marketing for specialty Wisconsin products to distributors with national and global reach, such as providing complimentary product samples for participating suppliers, airlines, hotels, and guest services contractors, which are uniquely positioned to promote brand recognition and spur demand for the Wisconsin brand far beyond our state.

• Diversification. While last year brought daunting challenges to Wisconsin farmers, our corn harvest, while late, produced a record yield, and should be a source of optimism.41 Wisconsin is one of the top producing states in the nation in corn, soy and dairy – Tom wants it to be tops in these areas too.

• Family farming through modernization, expansion of markets, transition into organic farming, farming education programs for small farmers, and other extension efforts.

• Incentives for farming cooperatives. As the cost of agricultural inputs continues to rise and prices of commodities fall, farmers need ways generate more revenue. Instead of only growing and selling commodities, many farmers have formed agricultural cooperatives to process crops and return added value to producers, rather than leaving these profits to middlemen. These new agricultural cooperatives are commonly referred to as “value-added co-ops” or “new generation co-ops.” Tom will push for tax credits, purchasing incentives, and grants or loans to encourage the formation of these co-ops. Done in conjunction with a green energy agenda, the incentives can be targeted to farmers in biodiesel production. Missouri has a program like this. The credit is allocated specifically for incorporated cooperative facilities producing products (including energy and fuel) derived from agricultural commodities. The tax credits are only available to members of the co-ops, not to outside investors.42

• Local food production. Local food production has the potential to be a major economic engine. Local food activists are working to boost that percentage dramatically and are developing public policy recommendations to advance the growing, selling, safety, marketing, access, distribution, preparation and serving of locally produced foods. Examples of policies they are investigating include:

o Farm-to-school programs: These can include everything from gardening on school property and teaching farm curriculum to helping kids cook and serving local foods in school lunchrooms.

o Local food procurement for schools, hospitals, jails, and other institutions – Is it possible for the food-service operations of schools, hospitals, jails and other institutions to serve more local foods?

o Urban agriculture: Can zoning and other barriers be erased to benefit farmers within city limits?43

• Aquaculture. Aquaculture is the fastest-growing agricultural sector in the world. The

transition from natural fisheries to aquaculture is occurring in part because there is more demand for fish than product. Although U.S. consumer demand is increasing for locally-grown products, the U.S. has a $9 billion seafood import deficit, with foreign


imports coming primarily from China and South America. As Governor, Tom wants to promote cooperation among all Wisconsin aquaculturists in order to best position ourselves to enter new markets nationally and globally – and establish Wisconsin as a leader in Midwest aquaculture. Tom will:

o Actively support stringent health and safety standards for seafood imports

to ensure our local aquaculture products can compete with foreign fish products on a level playing field: foreign fish must continue to be tested for the harmful antibiotics that were recently discovered in Asian bassa imports and which threaten human health.

o Enforce seafood truth-in-labeling requirements to give Wisconsinites and all

consumers the choice to support our state’s local and renewable fisheries. o Provide small business loans to help aquaculturists make the needed

investments in supplies and equipment to improve and expand their production. o Expand ongoing technical assistance programs to fish farmers to help them

to continuously implement best-quality production practices based on developing industry standards and research, and to meet environmental and safety requirements.

o Increase technical assistance and training support for aspiring fish farmers

who are transitioning from other seeking to supplement other forms of agriculture.

o Work with Wisconsin’s Native American tribes UW Extension’s aquaculture

program is active in providing technical assistance in best environmental, veterinary, and productivity practices to aquaculturists across the state. Wisconsin’s tribal fisheries including the Lake Superior Chippewa Tribal Fishery and the Midwest Tribal Aquaculture Network have also worked in cooperation with UW Extension.


Energy Independence Through Agriculture Biomass is Wisconsin’s most promising source of renewable energy. Unlike wind and solar alternatives, which rely on particular environmental conditions, biomass can produce power continuously, and relies on a supply of agricultural inputs – of which Wisconsin has abundant capacity to supply. Wisconsin currently ranks 10th among states for bioproduct companies registered with USDA’s BioPreferred Program.44 The accelerated development of biomass-based power run on homegrown fuels will be a boon to local agriculture industries, with long-term energy cost savings – since the cost of biomass is linked closely with availability of local supply – and the added benefit of cleaner air as we replace coal-fired power.45 The University of Wisconsin-Madison is in the process of converting its coal-fired plant to a biomass-natural gas hybrid that will power the university primarily on biofuels by 2013. Investment in pilot scale biomass plants such as this is one way Wisconsin can lead in the development of a biofuels market that is still in its infancy. At $250 million, investments in new biomass plants are not inexpensive, but Wisconsin now spends $20 million annually on fossil fuels from elsewhere, all of which are sent out of state; we have no native coal or gas resources. Investments in biomass energy production will keep more of our energy dollars in Wisconsin, generating jobs, fueling economic growth, and spurring demand in an agriculture-based biofuels market of the future in which we can position our state to be a national leader in energy production. As Governor, Tom will support the development of our biomass energy economy, strengthening the links between our agriculture sector and an energy-independent Wisconsin. Specifically, Tom will:

• Support loans for anaerobic digesters for Wisconsin’s livestock producers.

Anaerobic digesters have the potential to resolve the land and water contamination concerns posed by volume livestock waste, while converting harmful waste into a source of renewable, locally generated energy. The two digesters located on the Crave Brothers farm, which hosted the Wisconsin Farm Technology Days in 2009, alone provide enough electricity to power 550 homes.46 The Minnesota Department of Agriculture Methane Digester Loan Program, as part of its Rural Finance Authority (RFA) revolving loan fund, helps livestock producers install anaerobic digesters used for the production


of electricity by providing interest-free loans to eligible borrowers.47 As Governor, Tom will establish a Wisconsin Anaerobic Digester loan program that will provide direct loans, or participate in loans provided by private lenders of up to 45 percent of the principal to a maximum of $250,000 for direct or participant loans, with a maximum term of ten years for qualified borrowers.

• Implement state policies that promote the commercialization of non-feed biofuels. While Wisconsin should to everything it can to spur demand for locally produced biofuels, we must be mindful of the unintended local consequences for local livestock operations of driving up prices and competition for corn, or other inputs relied on as feedstock by our existing industries. Plant sugars from cellulosic biomass, including alternative energy sources like woody biomass, switchgrass, can be used to formulate a “green gasoline” that is energy dense enough to make jet fuel or diesel, and has the potential to become a cost-efficient primary transportation fuel without impacting feedstock markets. In fact, Madison-based Virent was recently awarded $2.4 million of $33.8 million in grant funds designated by the U.S. Department of Energy for its research into bringing down the cost producing biofuels – and getting them into the market. Founded in 2002 to deploy research at the University of Wisconsin – Madison, Virent’s investors now include Cargill, Shell, and Honda. Its most recent work began in 2007 with a $2 million grant from the National Institute of Standards and Technology, and now it employs 80 people.48 Advantages of the green biofuel would be that it could be used as a pure biofuel, or blended with conventional gasoline, without requiring major investments in new infrastructure. Its tailpipe emissions are estimated to be half that of conventional fuels. And, the process for manufacturing the fuel uses less energy than does ethanol, which requires an additional fermentation process. Fleet testing evaluations will take place this year.49 Plans are in development for a commercial plant within the next five years, though the location has not yet been determined. In order to attract and retain this kind of valuable homegrown talent and technology that will catalyze growth in both agriculture and high-tech industries, Wisconsin needs to take the lead in developing the market for biofuels. As Governor, Tom will support early-adopter tax incentives for companies that invest in biofuel related infrastructure – as well as for individuals who purchase biofuels.

Restoring the Wisconsin Idea to Production Agriculture The Wisconsin Idea is based on the principle that education must be used to influence and improve people’s lives outside the classroom. For over a century it has been the cornerstone of the University of Wisconsin education, and of the educational philosophy that Wisconsin embraces at every level – as evidenced by our Number 6 ranking among university patents in 2009. It is a concept with self-evident value in moving ideas into today’s increasingly knowledge-based marketplace – but the value of this principle to our agricultural industries has been too often overlooked. Tom’s plan includes:

• Expanding Extension efforts. UW-Extension, the technical outreach arm of the

university is the embodiment of the Wisconsin Idea that values disseminating knowledge throughout the state. While patents are an important measure of innovation, not all


technology is patented before impacting Wisconsin’s agricultural community. As Governor, Tom will ensure that the state’s three agricultural universities UW-Madison, UW-River Falls, and UW-Platteville – along with UW-Extension are fully funded with a clear mandate to work directly with the state’s farmers to continue to modernize our state’s agricultural economy.

• Revitalizing the Babcock Institute for International Dairy Research and Development with a program that lives up to its name, and Wisconsin’s industry. Housed in the Animal Sciences building, the institute, with fewer than five employees, serves as a networking institute that brings together the state’s leading dairy experts and scientists from among academia and the private sector, and hosts international training meetings.50 The Institute is an invaluable asset to the university, which does much with few resources – which come mostly from USDA. But it is time for Wisconsin to acknowledge that its dairy industry of the future is a knowledge-based one, and invest in the Institute’s role as a global leader in dairy science by making Babcock a full-fledged university department with dedicated funding for faculty and university resources for conducting research and development. Babcock Hall is currently home to dairy processing equipment and dairy product research facilities that are often utilized by the private sector for product research –as well as a plant that boasts award-winning gourmet ice-cream. As Governor, Tom will work with state’s building commission and University of Wisconsin to remodel and modernize Babcock Hall to realize the vision of a state of the art cheese making training facility at Babcock Hall that will be second to none in the world.

• Creating a loan forgiveness program for the state’s large animal veterinarians. Cow herd numbers are growing again in Wisconsin after a 20-year decline. This is a good sign for our agricultural industry, indicating job gains and retention – but it also highlights a shortage of large animal veterinarians in rural Wisconsin. In order to encourage the professional specialization needed in-state to support our dairy and other livestock-based agriculture Tom will create an incentive program to forgive state and federal student loans for veterinary graduates of Wisconsin schools who practice livestock medicine in-state for at least five years.


Keeping Wisconsin’s Rural Economy Competitive Wisconsin is beautiful and has countless recreational opportunities – not only in the northern counties and Door County, but in many of the central and southern counties as well. The abundance of woods and water, plus quaint villages and festivals, could provide a big tourism draw from within the state, from neighboring states, and – if proactively and aggressively marketed – even from other parts of the country. But the things that make people want to visit Wisconsin are the same things that make them want to stay: opportunities to enjoy nature, wildlife, and the state’s natural beauty – but also its arts, history, and culture. It is also these same characteristics that help attract college students to the state and then retain the graduates who live and work here. If properly recognized and promoted, these are the qualities that will provide incentives for industry and enthusiasm among their employees to locate and make Wisconsin their home.51 Wisconsin currently draws visitors who contribute billions of dollars to Wisconsin's economy each year. In 2008, travelers spent $13.1 billion that also generated nearly $7.3 billion in income, 310,000 jobs, and $2.1 billion in state and local taxes and fees.52 The tourism industry provides jobs that range from unskilled manual labor to positions for highly trained and educated professionals.53 By continuing to invest in the things that bring visitors to Wisconsin – our natural attractions, our arts and culture – we can boost our tourism industry and our ability to attract and retain companies that provide good paying jobs, and the highly educated workers they need. Tom will invest in the quality of life of communities throughout Wisconsin, in order to make our state – and particularly our rural areas – an even greater place to live, to visit, and to start a business. As Governor, Tom will:

• Invest in a sound local transportation system. Too many of our towns and villages are suffering from bad, to very bad, roads. For instance, the village of Germantown – which was named in 2007 by Money Magazine as the 30th most appealing place to live in the U.S. – identified $15.4 million in high-priority road maintenance this year – but could afford to address only $1 million of the work. The Pavement Surface and Evaluation System, one tool to prioritize road maintenance, rates roads on a scale of 1 to 10, with 1 being the worst condition; in Germantown, some roads that rate a “2” on the scale will not be addressed in improvement projects until 2015.54 While small state grants have been made available, not enough is being done to keep our rural and town roads from falling into disrepair – and when the town roads go, it’s not long before the towns are in decline. Without adequate infrastructure, economic recovery will indeed be slow going.


As Governor, Tom will provide state guaranties for municipal road bonding and the grant funding available for urgent road repair. Repairing these roads immediately will put the people of Wisconsin back to work, and help put our whole state on the road to recovery.

• Protect use-value assessment to ensure that farmers are not taxed off of their land. Use-value taxation of farmland is designed to tax land based on the ability of the land to produce income under its current agricultural use, as opposed to what it could sell for in the open market (e.g., for development purposes). Over 40 states have laws providing for preferential assessment of agricultural land for property tax purposes. In 1995, Wisconsin was one of the last agricultural states to adopt such a policy protecting farmers and their lands under agricultural production – 20 years after it was introduced in the state legislature.55 Last year, use-value came under attack in the legislature in an amendment that changed the definition of agricultural use. The state Senate proposed to change the definition of “agricultural land” for purposes of use-value assessments to exclude any land that is platted and zoned for residential, commercial or industrial use.56 While this change was eliminated from the final state budget, as Governor, Tom will vigilantly protect Wisconsin’s farmers from any further attempts to undermine the tax code that appropriately reflects the value of preserving land for agricultural production. Use-value is not a tax break for farmers. It is an equity measure that reflects the value of the land for its current use – which Wisconsin has a vested interest in protecting and will keep Wisconsin rural economy vibrant and modern.

• Double the number of Main Street Communities. Every state dollar Wisconsin has invested in local communities through the Main Street program has generated $42 in economic benefit. From 1988 to 2007, every public dollar spent on Main Street revitalizations in Wisconsin towns has generated an additional $4 in private investment – and in some cases far more. Today, 34 Wisconsin communities participate in Main Street. One example of a Main Street success is the Broadway District of Green Bay, which thrived during growth of industrial commerce in the late nineteenth century. By the 1990’s, the Broadway District was a high-vacancy, high-crime neighborhood, neglected by any organized community development efforts for over 60 years. In 1995, local merchants, neighbors and community leaders launched a Main Street revitalization organization, On Broadway, Inc. Since its founding, the organization has developed a new streetscape along Broadway, a partnership with local police that has significantly reduced crime in the 48-block revitalization district, and the purchase of a 22-acre industrial property for sustainable redevelopment. This site will house small businesses and affordable spaces to live and work while minimizing the project's impact on the environment. So far, 91 buildings have been rehabilitated, and nine new buildings constructed. These efforts have resulted in the creation of 907 new jobs and brought 89 new businesses into the district. Public investment has been $4.3 million, leveraging private investment of nearly $50 million. As Governor, Tom will work to replicate successes like Broadway throughout Wisconsin that will promote tourism and commerce while creating jobs. Tom will:


o Double the number of Main Street towns and communities.

o Maximize private sector participation in Main Street projects through tax credits for investments by qualified individuals or businesses in: rehabilitation of qualified historic structures. qualified community development assets like community centers, parks, or

community enrichment programs and cleanup of contaminated “brown field” properties.

o Create Satellite Main Street Communities. Not every community has the

resources to hire a full-time program manager and become a full-fledged Main Street Community. Tom’s Main Street Satellite program would allow smaller communities to apply for and receive technical assistance in completing a project that revitalizes their downtown.

• Empower Rural Schools as Economic Development Catalysts. Every community,

regardless of its size and resources wants to create opportunities for new generations. Some of our very small and rural communities have the desire, but do not have the resources to devote staff to focus on economic development. Rural schools have a role to play in working with their communities to understand the strengths and opportunities in the economy and designing programs that give students the chance to be employed in the community when they graduate.

• Promote rural art economies. An arts-based economy can enhance state efforts to

diversify rural economies, generate revenue, improve the quality of life, and attract visitors and investment. Rural areas often feature various arts and cultural industries, which, with some assistance, can become productive economic sectors. State arts agencies can assist in economic development efforts. Tom’s specific strategies include:

o Integrating the arts as a formally recognized and quantified industry into state

economic-development planning as a part of overall investment strategies and programs.

o Using traditional entrepreneurship and economic-development tools, including incubators, start-up capital, and training.

o Attracting the arts community by offering incentives, supporting business collaboration, and improving physical infrastructure.

o Using higher-education systems in training and business assistance efforts.

o Integrating the arts into planning and marketing to build sustainable tourism.

o Investing in cultural resources for rural areas by helping fund rural programming and providing incentives for other entities to invest in rural communities.


o Identifying, obtaining, and creatively using the wide variety of federal resources available from sources including the National Endowment for the Arts and U.S. Departments of Agriculture, Transportation, and Commerce.57

• Expand broadband connections and coverage (especially to rural areas and

schools). The state should expand coverage to the entire state – rural and poor urban areas have a tendency to be underserved. Broadband deployment also comes into contact with host of permit and licensing regulations, including environmental enforcement and historic preservation, and "broadband often loses. Building codes and permits also provide another layer of issues for network builders. For example, as it built out its 33,000-mile fiber network, Williams Communications employed 400 agents in field to apply for 10,000 different licenses and permits from various government agencies. Nationally, permits used to account for about 10% of network costs and now that figure is closer to 20%. According to the National Association of Regulatory Utilities Commissioners, while most local governments are reasonable in their rates, terms and conditions for telecom access to their rights-of-way and public lands, "certain governmental entities" have imposed unreasonable and discriminatory right-of-way (ROW) conditions that are impeding deployment of broadband and new narrowband telecom network facilities, creating potential barriers to competitive entry. As Governor, Tom will:

o Help coordinate and fund efforts by municipalities to use their authority and

purchasing power to provide inexpensive broadband access to all their citizens. This policy also ties to one of the targeted economic sectors discussed in the next section. The state could seek private-public partnerships and/or federal funding.

o Put incentives in place to encourage all owners and managers of local ROW and

public lands to provide prompt, nondiscriminatory access to requesting carriers at reasonable rates and terms, consistent with environmental stewardship and other management responsibilities, as Michigan has done. Michigan’s rules also call for vigorous nondiscriminatory enforcement of existing ROW access laws, adoption of ROW access laws where none exist, and review or reform of existing policy to ensure local ROW access is not a barrier to broadband competition.

o Implement tax and permitting fairness through right-of-way permitting systems

to create common rules for all carriers and establishing one common fee system to replace differing fee and taxation systems in place around the state today. And, increase access to information through developing and enforcing quality-of-service standards so that businesses and other purchasers of advanced telecommunications services are able to plan ahead, and avoid disruptions to business operations due to continual installation delays. Again, our neighbors in Michigan have already enacted similar policies.


• Expand agritourism. One important aspect of “value-added agriculture” is the revenue

that rural communities and farm families can derive from increasing interest in tourism in rural areas – whether outdoor adventuring, heritage tourism, or just “getting away from it all,” many Americans today are willing to pay a premium to visit our rural and wilderness areas. Farmers can also profit from opening their lands for hunting and fishing – North Dakota farmers, for instance, created a whole new industry for hunting sheds by allowing hunters to use a portion of their lands for hunting, charging a small fee for these “prime hunting spots” and thereby increasing the annual revenues from their land – approximately $20,000 annually in additional revenues per farmer, in fact. The state can help with such development in a variety of ways:

o Increasing advertising for rural tourism.

o Improving easy-to-access website information on rural and adventure tourism

opportunities.

o Enacting “hold harmless” laws for private landowners voluntarily to waive their liability in exchange for permitting public use of their land.


VI. Investing in Wisconsin’s Workers Building a skilled workforce for the in-demand jobs of tomorrow

“To create jobs now, position Wisconsin for attracting good paying jobs, and sustain job growth over the long term investing in Wisconsin workers needs to be a top priority.”


As the recovery leads to job openings and businesses look to hire, competition for employment will put a premium on highly skilled workers. Before the recession many employers were struggling to find skilled workers. The National Association of Manufacturers, in its 2005 Skills Gap Report, identified a serious shortage of qualified employees that a vast majority of U.S. manufactures are experiencing is taking an increasingly negative toll on America’s ability to compete. According to the study:

Today’s skills shortages are extremely broad and deep, cutting across industry sectors and having an impact on more than 80 percent of companies surveyed. Skills shortages are having a widespread impact on manufacturers’ abilities to achieve production levels, increase productivity and meet customer demands. High-performance workforce requirements have significantly increased as a result of the skills gap shortage and the challenge of competing in a global economy, according to 75 percent of survey respondents.

Despite a recession that has created a large labor pool from which employers can draw upon, the skills gap persists. As the Milwaukee Journal-Sentinel recently reported, “For all the talk of training people to fill green jobs in the future, some businesses at the Green Energy Summit say they're having trouble finding qualified people to fill job openings today…. Johnson Controls Inc.'s building efficiency business is looking to expand hiring this year but can't find qualified engineers – and expects to hire engineering students upon graduation and then train them, Jim Simpson, director of higher education at Johnson Controls, said at the Green Energy Summit. ‘We simply can't find enough people that are in the market to hire,’ he said. The mismatch between employers, trainers and job seekers is one of the key challenges for expanding green jobs…. A new report released by the non-profit think tank Center on Wisconsin Strategy at the University of Wisconsin-Madison found more coordination

is needed between technical colleges, government and employers to improve training for workers who most need opportunity.” The American Society for Training and Development (ASTD) recently reported that experts predict the skills shortages will intensify in the coming years as employers find the need to hire more knowledgeable workers for high-skilled jobs that will help their organizations grow as the economy rebounds. Anthony Carnevale, director of the Center on Education and the Workforce


at Georgetown University, stated, “In a recession, the economy goes to sleep, but when it awakes, there will be a need for higher-skilled people to fill skill-intensive jobs.” ASTD identified two underlying causes of the skills gap: jobs are changing and educational attainment is lagging. In the next several years a labor shortage will start to emerge resulting from demographic shifts in the labor market as baby boomers retire. The MetLife Foundation recently sponsored a report produced by Northeastern University that stated that by 2018 with an expected return to healthy economic growth, there will likely be more jobs than people to fill them. To create jobs now, position Wisconsin for attracting good paying jobs, and sustain job growth over the long term, investing in Wisconsin workers needs to be a top priority. The Barrett Plan will launch several initiatives to meet the challenges of a changing economy with a more modernized workforce delivery system. That system will be based on three needs:

Adaptability. Wisconsin’s workforce delivery system will need to be able to quickly respond to a constantly changing and fast paced marketplace. Workers will need training and education experiences that give them mastery of new skills that will constantly emerge.

Innovation. Just like Wisconsin businesses will need to innovate to remain competitive, so too must our training programs and educational institutions. Programs and policies will need to generate new solutions to the challenges of a competitive labor market.

Increased opportunity for learning. Workers will need the opportunity to continuously improve their skills and capabilities. To keep pace with a competitive labor market, Tom will focus on increasing Wisconsin’s college educated workforce while at the same time provide middle skill training opportunities.

Tom knows how to make workforce development work, he created the Mayor's Office of Workforce Development because the city's history on workforce development had not been aggressive. Tom had already achieved success by creating a Summer Youth employment initiative and locating a Job Corps center in Milwaukee. Tom’s leadership in workforce development under the Milwaukee Area Workforce Development Board has resulted in an employer-driven, responsive, coordinated, and well-funded regional effort that has been championed by a single accountable leader. The City has been a leader on many changes to the system and has been recognized by the U.S. Conference of Mayors for its effectiveness. As Governor, Tom will:

• Institute an applied baccalaureate program. One way to increase Wisconsin’s college educated workforce is by offering individuals applied baccalaureate degrees at Wisconsin’s four year and two year higher education institutions. Currently applied baccalaureate degrees are offered by the University of Wisconsin-Green Bay and the


University of Wisconsin – Oshkosh.. The applied baccalaureate program counts technical and associate degree-level courses as credits towards a degree. Wisconsin needs to expand offering applied baccalaureate programs throughout our post-secondary institutions.

• Launch a Middle Skill Initiative. Middle skill jobs are those jobs that require more

than a high school education but less than a four-year degree. According to Skills2Compete those middle skills jobs represent the largest share of jobs in Wisconsin – some 54 percent – and the largest share of job openings into the next decade. Part of the Middle Skill Jobs initiative will focus on a gap analysis on the training, occupational credentialing, and industry certifications needed to fill the middle skill job demand and the capacity within our training and education institutions to meet that labor market demand. In addition, the Career Readiness Certificate will be used to provide a skill credential towards middle skill jobs. Finally, school counselors at our high school will receive training about the opportunities for middle skill jobs to high school students.

• Join the Complete College Alliance of States. According to the Complete College

Alliance, Wisconsin has 40% of adults aged 25-34 with a college degree. By the end of the decade, more than 60% of jobs will require a college education. Currently 17 states have joined the Alliance of States to increase college completion. Under Tom, Wisconsin will join the alliance and commit to its three action items:

1. Set Completion Goals: Establish annual state and campus-specific degree and

credential completion goals through 2020. 2. Develop Action Plans and Move Key Policy Levers: Develop and implement

aggressive state and campus-level action plans for meeting the state’s college completion goals, including strategies to: • Ensure all students are ready to start and succeed in freshman credit courses. • Redesign remediation efforts to substantially improve success. • Increase the number of students completing on-time. • Develop new, shorter and faster pathways to degrees and credentials of value

in the labor market. • Utilize available financial resources to provide incentives to students and

colleges for progress and completion. 3. Collect and Report Common Measures of Progress: Use consistent data and

progression measures to create a culture that values completion. This includes: • Using common metrics for measuring and reporting progress. • Publicly reporting year one benchmark data and annual progress on college

completion, progression, transfer, job placement and earnings, and cost and affordability measures.

• Disaggregating data by level and type of degree/credential, age, race, and income.


• Build a Career Readiness Certificate system. Every citizen will have the opportunity to determine his or her career skill level, receive training, and have their skill level certified for employment. Every business will be able to have occupational profiles to determine the skill needs for open positions and then match those skill needs with job applicants. The Career Readiness Certificate will serve as a common metric and language to match skill needs employers are looking for with skill sets individuals possess. About half the States have created, or in the process of creating, a Career Readiness Certificate (CRC) program. The CRC utilizes ACT’s career readiness assessment system (WorkKeys) to identify an individual’s transferable career skills.

• Create job profiles for new occupations – with an emphasis on “green” jobs. The

quality of state labor market information systems has deteriorated over the last eight years primarily due to federal cuts by the Bush Administration. Wisconsin is no exception. Labor Market Information (LMI) has largely been designed to gather and report data rather than help drive allocation of resources to in-demand occupations. In addition to more fully integrating and upgrading the LMI system, there remains the challenge of how to identify the growth and skill needs of occupations that have not even been created. This is especially true for green jobs. In today’s marketplace, many of the future jobs have not even been created and the current LMI process for coding and identifying the skill needs for new occupations have too long a lag time. A solution to collecting and identifying the skill requirements for new occupations as they come on-line is to create job profilers – especially green job profilers. This profiling system would be modeled after the ACT WorkKeys system, which oversees the Career Readiness Certificate. The job profiling program is designed to quickly determine the skills needed for newly created jobs and then develop assessments and training programs to quickly fill the available labor demand. Wisconsin should provide funding to create job profilers and then fund profiles for in-demand occupations. This would position the state to quickly identify and design training programs as new jobs, especially green jobs, are being created.

• Invest in related manufacturing incentives and workforce development programs.

Building retrofit, weatherization, and efficient appliance programs can stimulate job growth in the manufacturing and construction sectors. Increasing demand for energy efficient building materials and appliances has the potential to invigorate domestic manufacturing centers to produce advanced-performance windows, insulation, appliances, and other high-efficiency durable goods. Demand in this area can be stimulated by building the capacity to conduct more residential, commercial and industrial energy efficiency assessments and providing carefully targeted incentives for consumers to act on the recommendations. Many construction workers and tradespeople would need only moderate retraining and the proper certifications to enter the building retrofit workforce.58,59

• Deepen and extend relationships between employers and educational institutions,

working through regional economic development associations and private-sector led industry initiatives like the NEW Manufacturing Alliance. Ensure alignment between degrees and local employment needs.


• Prioritize education. High-quality jobs increasingly require post-secondary schooling,

and our K-12, tech colleges, and university systems are part of the foundation of the state economy. Twenty-six percent of Wisconsin adults have four-year degrees – just under the national average of twenty-eight percent. And while the University of Wisconsin is attracting record numbers of students each year, less than eight in ten college freshmen in Wisconsin return for their sophomore year. With a goal of having at least half of adults credentialed beyond a high-school diploma, UW is pursuing more flexible and innovative educational programs, and exploring how better to serve the needs of working, adults, first generation college students, and minority students. Tom will encourage these efforts systemwide, and will make these higher education goals a statewide priority. As Governor, Tom will launch a Wisconsin Back to School campaign in coordination with Wisconsin’s public and private institutions of higher learning to make it easier for individuals with a partial college education to re-enroll and complete their degrees.

• Maintain environmental and safety standards. Aside from all its other advantages, a

healthy environment protects human health, and the natural beauty of Wisconsin helps us keep talented people in the state. Economic recession should not be an excuse to gut environmental protections or workplace safety standards.


Notes

1 Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Kansas, Maine, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Hampshire, New York, North Dakota, Oregon, Texas, Utah, Vermont, and West Virginia. 2 Rivedal, Karen. “Signs of life: slight rise in permits a small step toward housing recovery.” Wisconsin State Journal. 28 Feb 2010. 3 Babwin, Dawn. “Corporate tax breaks get zapped.” The Deseret News. (Salt Lake City, UT). 3 Jan 2010. 4 “Wisconsin’s Forgotten Middle Skills Jobs” Skills2Compete Wisconsin. Oct 2009. 5 Newman, Judy. “Ratings Point to the Financial Health of Banks of Wisconsin.” Wisconsin State Journal (Madison.) 11 Apr 2010. 6Hardie, Chris. “Don’t blame community banks for meltdown of 2008.” La Crosse Tribune, WI. 4 Apr 2010. 7 Rogers, Joel. “Advanced Manufacturing Project.” The Center on Wisconsin Strategy. Copyright 2010. 8 REPP, 2006, pp. 4-5 9 Kho, 2009. 10 Price, 2009. 11 Content, Thomas. “Debate over Clean Energy Jobs Act centers on prices.” Milwaukee Sentinel Journal. 13 Feb. 2010. 12 Gordon, 2006, p. 31. 13 MGA, 2007, pp. 7-9; Bracken Hendricks B. G., 2009, p. 9. 14 BizTimes, 2009. 15 Still, 2004. 16 Still, Tom. “Five reasons why Wisconsin is positioned to ride the wave of stem-cell research.” Wisconsin Technology Network News. 23 Nov 2007. 17 Battelle Memorial Institute, 2010 “State Bioscience Initiatives” report. 18 BizTimes, 2009. 19 Liebmann, Cory. “Wisconsin Manufacturers and Commerce’s Epic Blunder.” ExpressMilwaukee.com. 11 Jul 2008. 20 FW. 21 Bioforward. 22 White, 2008, pp. 7-8. 23 White, 2008, p. 1. 24 “The Advanced Manufacturing Project.” The Center on Wisconsin Strategy. Madison: November 2002. 25 Bivins, Larry. “Wisconsin windpower progress stalls because of outdated transmission system.” Appleton Post-Crescent. 6 Jul 2009. 26 AA, p. 15. 27 Wisconsin Economic Development Association (WEDA) 2010. Weda.org 28 Wisconsin Economy. Netstate.com 29 Kubisiak, Kristen J. “A Mooving Experience.” The Daily News (West Bend, WI). 26 Mar 2010. 30 Barrett, Rick. :Low wholesale milk prices cut farmers’ income.” Milwaukee Journal Sentinel. 19 Jan 2010. 31 Calahan, Steve. “Dairy farmers look forward to a better 2010.” La Crosse Tribune(WI). 31 Jan 2010. 32 Berry, Bill. “Let facts prevail on livestock siting rules.” The Capital Times (Madison). 1 Mar 2010. 33 NGA, 2003 34 WDATCP 35 Novak, Bill. “State Farmers Looking for Added Value in Agriculture.” The Capital Times (Madison). 10 Feb 2010. 36 DATCP www.datcp.state.wi.us 37 Mitchell, 2009, p. 2 38 UW, 2008. 39 Daykin, 2009. 40 “New Tax Credits will Help Dairy, Food-Processing Plants Grow.” Agri-View (WI) 14 Apr 2010. 41 Burns, Jane. “Overall 2009 was a ‘lousy year’ for state agriculture.” Wisconsin State Journal. 20 Jan 2010. 42 AA, p. 11.


43 Rem, 2009. 44 Wisconsin Office of Energy Independence. Bioproducts. http://energyindependence.wi.gov 45 Bergquist, Lee & Thomas Content. “UW Biomass Power Plant a Gamble for State.” Milwaukee Journal Sentinel (Madison). 18 Jan 2010. 46 “Economy Watch.” Wisconsin State Journal (Madison). 9 May 2009. 47 Database of State Incentives for Renewables & Efficiency. www.dsire.org 48 Content, Thomas. “Virent wins $2.4 billion biofuels grant.” Milwaukee Journal Sentinel (WI) 4 Feb. 2010. 49 Content, Thomas. “Virent launches plant to create gasoline from plant sugars.” Milwaukee Journal Sentinel. 23 Mar 2010. 50 Oncken, John. “Babcock Institute helps Ag efforts from UW Campus to China, Kosovo.” The Capital Times (Madison). 7 Jan 2010. 51 Freeman, 2003. 52 The Economic Impact of Travelers in Wisconsin. Calendar Year 2008.” Wisconsin Department of Tourism. 53 Freeman, 2003. 54 Klein, K.L. “Budget crunch means many bad roads won’t get fixed this year.” Germantown-Menomonee Falls NOW. 15 Apr 2010. 55 Paine, Laura K. and Mark J. Kopecky. “Use Value Assessment for Wisconsin Farmland.” University of Wisconsin – Cooperative Extension. Nov 2002. 56 Larson, Tom & Mike Theo. “State Budget Completed; But is it Balanced?” Wisconsin Real Estate Magazine. Aug 2009. 57 NGA, 2005. 58 MGA, 2007, pp. 7-9 59 Bracken Hendricks B.G., 2009, p. 9

Authorized and paid for by Barrett for Wisconsin, Catherine Shaw, Treasurer.

Date post:	18-Nov-2014
Category:	Documents
Upload:	barrettforwisconsin
View:	109 times
Download:	2 times

Tom Barrett's Plan to Create Wisconsin Jobs

Documents