logo
Sept. 29, 2003 e-newsletter

In this issue...

Rx for a Strong Economy

Changing Face of Wisconsin

Wisconsin's Demographic Hurdles

Alliance Freezes Dues for 2004 

Health Costs Loom Large in Budget Struggles

Health-Cost Solution?

City Leaders Inspect Lambeau

News Briefs Upcoming Events

----

'Talk About People Climate'
Fostering the 'Creative Economy'

By Rich Eggleston

Wisconsin has tremendous potential to lure the creative thinkers and doers around which the economy of the future will coalesce, but to avoid falling by the wayside, our communitiues must focus on technology, talent and tolerance, an economic development conference was told in Green Bay Sept. 18.

That's where movers and shakers of the creative economy  want to locate   that is where they thrive, more than 400 people at the "A Creative Future" conference at Lambeau Field were told. And the creative economy is inexorably supplanting the industrial economy, said Dr. Richard Florida, a professor in the Heinz School of Public Policy and Management at Carnegie Mellon University.

Tolerance is the hardest to change, but "without this third 'T' you know where your future is? Pennsylvania: five straight decades of job loss," Florida, author of Rise of the Creative Class, said.

By all rights, Wisconsin's long-term economic outlook ought to be a lot brighter than it is, Florida remarked.

""I don't see Wisconsin all that different than Colorado, except you have a better university," he said. "You have made an investment in one of the ten best research universities in the world, and you are the greatest talent exporting machine that the world has ever seen."

florida.jpg (3867 bytes)
Dr. Richard Florida

"Don't talk about business climate, talk about people climate," he advised his audience. "You've got to focus on it; you've got to hone it. Create systems that harness the creative capacity of everyone."

Wisconsin's Uphill Battle

ludeman2.jpg (13603 bytes)
Terry Ludeman

"Colorado has absolutely had us for lunch,"  Terry Ludeman, labor market economist for the state Department of Workforce Development, told the conference. And, he might have added, we're also on the dessert tray that's being passed around to our surrounding states of Minnesota, Michigan and Illinois.

Ludeman documented the trends that will challenge Wisconsin's economy in coming decades: Wisconsin citizens are somethat older than the national average, and today far fewer of us are foreign born than U.S. residents overall, even though we live in a state that depended on immigration for half a century to fuel its growth.

Wisconsin is 19th nationally in the number of science and engineering graduates, and 43rd nationally in our ability to attract them to our workforce, Ludeman said. In the 1990s, Wisconsin lost more than 50,000 college graduates, while Minnesota gained more than 140,000, he said. We need nearly 20,000 more employees in the information industry and 80,000 more workers in the financial services sector if we are to match the national average, he added.

Perhaps as a result of all that, Wisconsin is 28th nationally in average wages, while Minnesota is 14th, Michigan is 11th and Illinois is seventh. In the 1970s, Ludeman said, average wages in Wisconsin were higher than in Minnesota.

Ludeman challenged northeastern Wisconsin to redefine itself and become an economic leader.


----

top

Alliance  Votes  Dues Freeze, Makes Do With Vacant Position

Wisconsin Alliance of Cities members Sept. 20 approved a one-year dues freeze and passed a budget that calls for continued use of a contract lobbyist  through 2004, keeping open the position that Gail Sumi previously held. With an 18% rent increase in the works for our  office space on Capitol Square next year, the Board of Directors also directed staff to look for cheaper space near the square.


----

top

A Profile of Wisconsin — and the Alliance

density.gif (36417 bytes)
Source: Wisconsin Blue Book

Population Density in 3-D

In a feature article, the 2003-2004 Wisconsin Blue Book takes a look through "the statistical camera that every ten years takes the snapshot of our country," and attempts to tell us who we are and how we live.

Paul R. Voss and his colleagues at the University of Wisconsin-Madison looked at the census data and found a state that is changing before our eyes:

  • the Hispanic/Latino population more than doubled in a decade, though in 2000 it still represented less than 4% of Wisconsin's population.
  • more than one in four households are now one-person households.
  • more than two-thirds of us work: 74% of males and 64% of females 16 and over are in the workforce.
  • Manufacturing jobs are held by 22% of Wisconsin's workers, while 20% are employed in education, health and social services. Retail trade, the hospitality industry, construction, etc. trail.
  • Nearly 80% of us drive to work and don't carpool. Waukesha County has the highest percentage: 87%. Almost 10% of us carpool.
Snapshot of the Alliance

While Wisconsin grew 9.6% in the 1990s,  Wisconsin Alliance of Cities member cities grew much more modestly: 3% overall. While the Census counted 5% fewer people in Milwaukee in 2000 than in 1990, the accuracy of that number is being challenged by Milwaukee officials.

Five Alliance members are home to 87% of Wisconsin's African-American population, and the top 10 Wisconsin communities in terms of Hmong population are all Alliance members.

----

Health-Cost Solution on the Horizon?

It's time to do somethign about the rising cost of health care, and tinkering around the edges of a dysfunctional system won't help much, the president of the Wisconsin State AFL-CIO told Alliance members Sept. 20.

"We're rapidly getting to the point where neither workers nor their employers can afford health care," David Newby told city leaders and top staff gethered at Lambeau Field in Green Bay.

 

newby.jpg (13824 bytes)
David Newby

Newby provided the Alliance with a sneak preview of an AFL-CIO proposal to drastically reduce the  cost of health insurance in both the public and private sectors and make it far more available to everyone in the state.

Key elements of the union's plan:

  • Get rid of the 25 to 30 cents of every health-care dollar that employers pay insurance companies for administrative costs.
  • Have every employer pay a flat amount for each worker.
  • Cover every worker and his or her dependents.
  • Provide for a $600 deductible for families and co-payments of $15 per visit, higher for visits to specialists that are not referrals. Unions could bargain to get employers to pay those costs.
  • Subsidize the premiums for employees of small businesses and allow the self-employed to buy into the system.

The plan would not cover long-term care, vision or dental care.

Alliance of Cities Population Trends

City

1990 Census

2000 Census

% chg

Appleton

65,695

70,087

6.7%

Ashland

8,695

8,620

-0.9%

Baraboo

9,203

10,711

16.4%

Beaver Dam

14,196

15,169

6.9%

Beloit

35,571

35,775

0.6%

Cudahy

18,659

18,429

-1.2%

De Pere

16,594

20,559

23.9%

Eau Claire

56,806

61,704

8.6%

Fond du Lac

37,755

42,203

11.8%

Green Bay

96,466

102,313

6.1%

Greenfield

33,403

35,476

6.2%

Kaukauna

11,982

12,983

8.4%

Kenosha

80,426

90,352

12.3%

La Crosse

51,140

51,818

1.3%

Madison

190,766

208,054

9.1%

Manitowoc

32,521

34,053

4.7%

Marinette

11,843

11,749

-0.8%

Marshfield

19,293

18,800

-2.6%

Menasha

14,711

16,331

11.0%

Merrill

9,860

10,146

2.9%

Milwaukee

628,088

596,974

-5.0%

Monroe

10,241

10,843

5.9%

Neenah

23,219

24,507

5.5%

Oak Creek

19,513

28,456

45.8%

Oshkosh

55,006

62,916

14.4%

Racine

84,298

81,855

-2.9%

Sheboygan

49,587

50,792

2.4%

Stevens Pt

23,002

24,551

6.7%

Superior

27,134

27,368

0.9%

Two Rivers

13,030

12,639

-3.0%

Watertown

19,142

21,598

12.8%

Waukesha

56,894

64,825

13.9%

Wausau

37,060

38,426

3.7%

Wauwatosa

49,366

47,271

-4.2%

West Allis

63,221

61,254

-3.1%

West Bend

24,470

28,152

15.0%

Whitewater

12,636

13,437

6.3%

Wis. Rapids

18,245

18,435

1.0%

Totals

2,029,737

2,089,631

3.0%

State Total

4,891,769

5,363,675

9.6%

Newby predicted the plan would reduce the number of uninsured people in Wisconsin from between 500,000 and 600,000 to 100,000.

The plan would be based on Wisconsin's unemployment compensation and worker's compensation systems, and estimates suggest it could cut costs dramatically.

"We can realize very significant reductions in the cost of health care in the state," Newby said. "(But) unless we have significant business support, support from folks like you and bipartisan support in the Legislature, it isn't going anywhere."

Details are to be unveiled in late October.

----

top

Milwaukee Freeze Depends on Low Health-Care Cost
Tough Budgets Abound in Alliance

Milwaukee Mayor John O. Norquist on Sept. 23 proposed a "no gimmicks" city budget that would freeze the city's tax levy at 2003 levels, but he said he couldn't have done so without a break in health insurance costs.

"Our health care costs came in more than $9 million under projections. If our increase had been more in line with other major employers, freezing the levy responsibly would have been impossible," Mayor Norquist told his common council.

While Milwaukee is projecting a 2% increase in health-insurance costs for next year,  Alliance members typically are bracing for 15% to 20% increases.

At the Alliance's Sept. 19th meetings in Green Bay, finance directors and city leaders outlined how they are coping with their budget challenges. Highlights:

  • Marinette sent out a citywide survey soliciting ideas on how to solve a $1 million deficit. Options included layoffs, a fire-hydrant fee on water bills or a levy increase.
  • In Manitowoc, surveys are coming back to help the city determine which of 13 services residents would prefer cut.
  • Wisconsin Rapids will pay $5,000 to every city employee who agrees to retire by the end of the year. The deadline is fast approaching for employees to accept the offer.

Continuing media coverage of local budgets:

  • In Oshkosh, reducing spending by $2 million to keep the tax rate flat could involve closing a fire station, the Oshkosh Northwestern reported in a story here.
  • The Sheboygan common council voted 10-4 to impose a $3 monthly stormwater fee on property in the city to help control runoff and reduce the property tax by $1.1 million. Story here.
  • Results of that survey in Marinette: residents strongly supported employee layoffs as a solution to the city's budget crunch and fewer than 15% of those who responded supported a tax increase, the Marinette EagleHerald reported. Story here.
  • Superior is planning to reduce seasonal staff in its parks and recreation departments, discontinue swimming lessons and offer fewer concerts in the park. Story here.
  • Coverage of the proposed levy freeze in Milwaukee centered around Mayor Norquist's proposed elimination of nearly 650 jobs — most of them vacant as a result of a city hiring freeze. Story here.

Alliance Members Tour Lambeau

tour2.jpg (17809 bytes)
Curly Lambeau points toward
the Packers Pro Shop.

Tour Lambeau Field with Alliance members here.

----

top

News Briefs

West Bend City Administrator Dennis Melvin is the recipient of the 2003 International Professional Award of the International City/County Management Association. The award recognizes Melvin for forging a partnership with Pazardjik, Bulgaria whose first aim was to improve management and economic development planning, but expanded to include humanitarian relief and a full-fledged sister city relationship. See some of what was accomplished here.

Expanding 18 miles of U.S.10 around Wausau will gobble up a square mile of farmland, the Wausau Daily Herald reports. It's part of a project to extend a four-lane highway to Marshfield by 2010. See the newspaper story here.

Spending public money on transit is a wise investment that pays economic dividends by connecting commuters to jobs, pupils to school and travelers to tourism attractions, a study found. HLB Decision Economics Inc. concluded that every dollar invested in public transit in the state generates more than $3 in economic benefits. See the state Department of Transportation press release here.

Public parking lots are highways, at least as far as liability law is concerned, the 2nd District Court of Appeals ruled.   Cheryl Ellerman slipped on the ice in a public parking lot in Manitowoc in 2001 and broke her ankle. She said the city was negligent in failing to remove the ice from the parking lot. But state law says municipalities have up to three weeks to remove ice or snow from highways, and the court ruled that a highway is any public way and thoroughfare open to the public for vehicular travel, including a parking lot. See the AP story here.

The value of farmland for tax purposes will be frozen next year, a Department of Revenue advisory body decided. The freeze will lock in the taxable value of the average acre of Wisconsin farmland at about $134. Under the formula the department uses to calculate the "use value" of farmland, an acre worth between $1,000 and $10,000 on the market would have been worth a negative $150 for tax purposes. The use-value law has shifted nearly $1 billion of property tax burden to owners of other types of property since 1996. See the AP story here.

Green Bay suburbs are talking to Manitowoc about the possibility of providing Lake Michigan water to their communities. The suburbs are hoping they can get the water — their own wells have excessive radium levels — from Manitowoc cheaper than they could buy it from Green Bay or obtain it from their own $135 million pipeline to the lake. See the Gannett Wisconsin story here.


----

top

Upcoming Events   




(click on underlined text for more)
Oct. 7 hrg. on AB 510, metro services districts 10 a.m., 400 NE, Capitol
Oct. 8 Partners in Local Government Madison
Oct. 8-10 Inclusionary Zoning Conference Bethesda, Md.
Oct. 14 Smart Growth panel, Earth Charter Conference Oshkosh
Oct. 16 (Transptn) Funding Issues Ahead conference Madison
Oct. 22 UW Health-Care Economics Symposium Madison
Oct. 23-24 Upper Midwest Planning Conference Milwaukee
Oct. 27-28 Wis. Economic Summit IV Milwaukee
Oct. 29-31 League of Wis. Municipalities annual  mtg. Milwaukee
Nov. 6-7 Alliance meeting Wauwatosa

----

top

THE WISCONSIN ALLIANCE OF CITIES
14 West Mifflin Street Suite 206
Madison, Wisconsin 53703
(608) 257-5881