Finally, a focus on jobs

Over the past couple of months, I have publicly expressed concern regarding the lack of focus in the Legislature on the economy and on initiatives we could adopt to help facilitate job creation across the state.

Amid a recession that has launched unemployment to over 10 percent nationwide and right here in Manitowoc and Sheboygan, I’ve been advocating strongly for a change in focus in Madison. Many small business owners and regular citizens who are unemployed or underemployed have been making this plea as well. While the good-paying jobs we need in order to bring about economic recovery must be created in the private sector, state government can and should play a role in making that happen.

I am pleased to report that we have made some progress in convincing the leadership in the Legislature to focus on this important task. Recent developments in the state Capitol have me optimistic that the Legislature is finally awakening to its responsibility as a partner in job creation and economic growth.

While the initial actions are baby-steps, I am hopeful that they are steps in the right direction for making our state government a facilitator – and not an adversary – to job growth in Wisconsin.

Specifically, majority Democrats recently introduced a job creation proposal called CORE. The proposal, estimated to cost taxpayers $12 million-$15 million, contains 14 provisions, some of which include:

Education tax credit – Creates an income tax credit for businesses that pay tuition for an employee to attend a university, college, or technical college;

Angel investment tax credit expansion – Increases the amount of angel investment tax credits available for 2010 from $5.5 million to $6.5 million, and increases from $18 million to $20 million the total amount of credits that may be claimed in a calendar year beginning after 2010;

Farmshoring – Provide funds for grants to encourage companies to do “Farmshoring,” which is a strategy intended to encourage companies to bring jobs to rural areas instead of moving overseas;

Regulatory “Ombudsman” – Funding a regulatory ombudsman program with the intention of providing one-stop help with the state’s permitting and approval processes;

Business plan competition – A University of Wisconsin System-wide business plan competition;

WiSys business assistance – Funding the WiSys Small Business Assistance program to facilitate research commercialization partnerships between businesses and UW campuses;

Micro-loan program – Initiates a rural and urban pilot program that seeks to fund small business startups with small loans ranging from $1,000 to $25,000 in high-unemployment parts of Wisconsin;

Manufacturing skills training – Adds more funding for the Advanced Manufacturing Skills Training program grant.

In this package, legislative Democrats have compiled a reasonable set of initiatives, some of which I have authored and proposed. However, while I anticipate voting in favor of this plan if it maintains its current shape, I would argue that it misses the mark in terms of truly breaking down the barriers to widespread job creation in Wisconsin.

As I visit with the many small and large businesses in the 9th Senate District, the main obstacle identified regarding job growth in Wisconsin is the cost of doing business here – including the high tax burden and government regulations, mandates and red tape. “Wisconsin is the most expensive state in which we do business” is a statement I hear over and over again.

While I appreciate the good intentions of the CORE plan, it does not address these major job-killing elements of our state government. Until we reform our state tax and regulatory codes, Wisconsin will not be a leader among the 50 states in economic growth.

In the days ahead, I will work with my like-minded colleagues to convince the majority party of this unmet need and potentially seek enhancements to their proposal. I am hopeful that there is a willingness to include such bold ideas as repealing the income tax increase and Combined Reporting tax that were recently approved in the state budget, eliminating capital gains taxes if the gains are reinvested in Wisconsin-based businesses, a payroll tax holiday and a business tax offset for companies who grow jobs here in Wisconsin. I have offered these ideas and I am hopeful they will get included in the CORE package.

Again, I appreciate the direction in which the Legislature appears to be moving. We must focus on our economy and jobs. However, truly meaningful action on the economy requires more than nibbling around the edges. It requires a sustained effort by lawmakers in Madison to get out of the way of risk-takers, innovators and job creators and allow the private sector to work. I look forward to providing this perspective in the days ahead as the Legislature deliberates its job creation strategy.

As always, it has been a pleasure communicating with you. Please remember to communicate with me and share your input by calling 888-295-8750, writing to me at P.O. Box 7882, Madison, WI 53707-7882, or by e-mailing me at Sen.Leibham@legis.wi.gov. You can also log on to the 9th Senate District online office at www.leib hamsenate.com.

It is an honor representing the residents of the 9th District in the state Senate.