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June 30, 2010

The Wednesday Update

June 30, 2010 Volume 4, Number 25  IN THIS ISSUE: Transit Trending Downward; New Ways to Hide the Decline 
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Wisconsin Club for Growth
June 30, 2010  
Volume 4, Number 25




In This Issue:

1) Transit Trending
    Downward

2) New Ways to HIde
    the Decline

3) Obama Caves to 
    Pressure on Bucyrus


 




 

 

Transit Trending Downward

 
Recent polling by UW-Milwaukee, The Business Journal and the Public Policy Forum found support for rail transit dwindling.  Since last fall when a majority supported KRM commuter rail and the Milwaukee to Madison high speed rail line, public support for these projects has shrunk to 46 and 43 percent respectively.
 
But the really big loser is Mayor Tom Barrett’s $95 million Milwaukee streetcar which is supported by just 35 percent of respondents.
 
Meanwhile, State Reps. Robin Vos (R-Racine) and Jeff Fitzgerald (R-Horicon) have asked the Federal Transit Administration (FTA) to reject the application by the Southeast Regional Transit Authority (SERTA) to begin preliminary engineering work on KRM because SERTA has yet to identify a local funding source for the project.
 
Vos reasoned that since a Democratic majority in the state legislature couldn’t muster the votes for a sales tax to bankroll KRM, we shouldn’t spend more taxpayer dollars on engineering plans.  If the FTA approves the application, SERTA would receive $6 million in federal tax dollars to cover 80% of the engineering costs.
 
Milwaukee County Executive Scott Walker expressed his concerns about the SERTA application citing a shortage of funding for existing transportation infrastructure and his opposition to a sales tax increase to fund KRM.
 
“There is a hole in the state transportation fund and that led to problems for local road aids and local transit aids and a delay in many major highway projects in the region.  The Zoo Interchange and the North-South Corridor are two major examples of the projects we need to work on soon.”
 
Milwaukee County Board Chairman Lee Holloway also weighed in against the application saying he could not support a new multi-million dollar transportation system when the county is already struggling to fund existing bus service.  
 
In a sane world federal and state government officials wouldn't force an unwilling public to pay for a shiny new train that nobody will ride. But that would require sanity.

 

 

New Ways to Hide the Decline


 
Do our leaders in Washington and Madison actually believe everybody can work for the government? The notion seems bizarre, but how else do you explain the reaction of President Obama and Governor Doyle to the continued loss of private sector jobs?
 
Last month, seasonally adjusted figures from the Department of Workforce Development (DWD) showed another 8,000 Wisconsin private-sector jobs disappearing.
 
Governor Doyle conveniently ignored the departure of public sector jobs and hailed “the tremendous drop in the May unemployment rate and the state’s addition of tens of thousands of jobs.” To make that statement work, you need to take the part about “the state’s addition” very, very literally. The DWD numbers show seasonally adjusted unemployment dropping three tenths of one percent (8.5 to 8.2) as a result of federal, state and local government hiring.
 
It wasn’t clear how many of the new government employees were temporary hires for the 2010 census.  A few weeks ago the federal government admitted that the overwhelming majority of some 430,000 people were newly employed census workers who by now might well be job-hunting again.
 
Nevertheless, the governor took credit for “our hard work to help communities across the state recover from the national economic crisis.” A little bit more of this kind of recovery and we won’t need to visit the museum to see examples of a hunting-and-gathering economy. Hope it stays warm and be sure to hold onto a few bushels of roots and berries to pay your taxes.  
 



Obama Retreats on Bucyrus

 
Yesterday Milwaukee County Executive Scott Walker announced placed an open letter to President Barack Obama in the Racine Journal Times. The letter urged the President to reverse his administration's policies that would kill 300 Wisconsin jobs. Based on President Obama's policies, the Export-Import bank denied a loan to an Indian company to buy $600 million of mining equipment from Bucyrus, a company based in South Milwaukee.

This morning, Obama's Export-Import bank reversed course.

Walker issued a blistering release focusing on the larger issue at stake.

“While we’re pleased the Export-Import Bank is reconsidering their decision to deny loan guarantees to Bucyrus, it’s not enough for President Obama, Governor Doyle, and Mayor Barrett to sweep their consistent support of radical environmental job killing policies under the rug in time for their joint photo op today in Racine,” said Walker. 

“As governor I won’t just find ways to sweep in at the last hour to protect Wisconsin jobs when a media firestorm breaks loose – I’ll work to improve the business climate for everybody, all the time, and will halt global warming policies supported by Gov. Doyle and Mayor Barrett that have the potential to kill not only the 300 jobs at Bucyrus, but the projected 43,000 jobs across Wisconsin.”

Walker's open letter to Obama

Dear President Obama

On behalf of the people of Wisconsin, I respectfully ask you to reverse the environmental policies enacted by your administration that are directly killing jobs in our state. 

Right now, 300 Wisconsin jobs at Bucyrus International are in jeopardy because of radical environmental policies created by your administration.  Today, you have the power to help.
 
Last week, your Export/Import Bank denied loan guarantees for a coal-fired power plant that was to be built with coal mining equipment from Bucyrus, headquartered in South Milwaukee.  The Bank cited your administration's environmental directives as the cause of the denial of the loan guarantees.  Because of the Export/Import Bank’s decision, 300 Wisconsin jobs and hundreds more jobs in neighboring states will be lost.

Mr. President, the ingenuity, work ethic, and determination of Wisconsin workers is what has made us world leaders in the manufacturing of everything from motorcycles to mining equipment.  Wisconsin stands ready to compete, however, we can only do this if government leaders in Washington and Madison are willing to give us the opportunity. 
 
We have already lost 163,000 jobs in the past year.  Our state government was on the verge of passing similar global warming policies that could have resulted in an additional 43,000 jobs being lost. This plan, supported by Governor Jim Doyle and Milwaukee Mayor Tom Barrett, failed to pass in Madison during this past legislative session because of the impact on our state’s economy.
 
Mr. President, being green should not be about taking green out of our pockets.  The 300 good paying jobs at Bucyrus are the first of many jobs in Wisconsin that could be in peril because of your policies.
 
Anytime the President of the United States visits it shines a national spotlight on Wisconsin and all we have to offer, and we welcome you to our state and are eager to hear your plans to get our state working again.  Today, you have the opportunity today to help 300 people in Wisconsin keep their jobs.  We hope you will. 

Sincerely,

 
Scott Walker
Milwaukee County Executive
 
 
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