Progressive Thinking

MILWAUKEE - Over the weekend, another young black man lost his life and civil unrest exploded in MIlwaukee.

Our hearts go out to all the residents of Milwaukee’s Sherman Park neighborhood who have experienced this weekend’s civil unrest, to the family of the young man who lost his life, and to the peace officers who have put their lives on the line to protect public safety. As public order is restored, it is important we take stock of what happened, and what we have to do together to create a Wisconsin where everyone has an equal chance to live a fulfilling life.

Although the violence and property destruction seemed spontaneous to outsiders, for many African American residents it was a predictable outpouring of frustration flowing from unbearable racial inequality and exclusion. Shocking statistics support this, as the Milwaukee metro area has for many years consistently ranked among the worst in the country for African Americans across a variety of indicators including, segregation, incarceration rates, black male nonemployment, child poverty, and many others.

African Americans in Milwaukee, who came during the Great Migration to work and work hard and claim their piece of the American Dream, where drawn by the plentiful opportunities to work in union manufacturing jobs. They have borne the brunt of deindustrialization since the late 1970s. According to the UWM Center for Economic Development, the percentage of African Americans working in manufacturing declined from 54.3% in 1970 to 14.7% in 2009.

Many leaders in the Milwaukee area seem to see this as a natural phenomenon beyond our control. But the economy is not a natural disaster or an extreme weather event beyond our agency to influence, it is human made. What has been lacking in Milwaukee is the courage and vision to fight for solutions up to the scale of the problem. Once the dust is settled in Sherman Park, the question will be which public officials, which community leaders, which corporate leaders are willing to stand up and fight for public interventions at the scale necessary to end Wisconsin’s system of economic apartheid and truly guarantee full opportunity for everyone in our great state. This means striving to create an economy where everyone who wants a good jobs can find one near their local community.

Citizen Action of Wisconsin and our over 12,000 members in the Milwaukee area look forward to continuing to work with everyone in the community who wants to work toward economic and social transformation.

$472.1 million in awards to businesses through August 1 this year produce fewer new jobs, but would go far in covering the cost of reforming our state’s flawed school funding formula or funding repairs for local roads.

ALMA, WI - “Where did all that money go?” Dennis asked me during a recent visit to the Jackson County Fair.

Dennis is one of many constituents who ask where the money for schools and roads is as our state recovers from the recession. Economic recovery means more money and more money should equal more resources for the public. Instead, state funds are very tight. For example, state aid to local public schools is less now than in 2006.

One reason is that the state is not collecting tax money from some large, and in several cases, very profitable companies. Recently I received a memo from the nonpartisan Legislative Fiscal Bureau detailing the awards given out for one large tax credit known as the Enterprise Zone Tax Credit. This credit – originally conceived to help rural communities – has morphed into large credits for single companies.

The memo contained a list of the total awards made and the companies that received them:

Amazon.com $10.3 million

Bucyrus International, Inc. $20.0 million

Direct Supply $22.5 million

Dollar General Corporation $ 5.5 million

Exact Sciences Corporation $ 9.0 million

Fincantieri Marine Group, LLC $28.0 million

InSinkErator $15.5 million

Kestrel Aircraft Company, Inc. $18.0 million

Kohl’s Corporation $62.5 million

Mercury Marine $65.0 million

MKE Electric Tool Corporation $18.0 million

Northstar Med. Radioisotopes, LLC $14.0 million

Oshkosh Corporation $47.0 million

Plexus Corporation $15.0 million

Quad/Graphics, Inc. $61.7 million

Trane US Incorporated $ 5.5 million

Uline, Incorporated $18.6 million

W Solar Group, Incorporated $28.0 million

Weather Shield Mfg, Incorporated $ 8.0 million

TOTAL (through Aug. 1, 2016) $472.1 million

All of those award amounts are refundable tax credits. This means a company can claim the credit directly against taxes owed. If the company owes little or nothing in taxes and claims the credit, they can receive a payment from the state in the form of a refund.

Owing little or nothing in state taxes is made possible, in part, by changes in tax law for corporations that date back to 2011. Majority legislators passed the Manufacturing and Agriculture Tax Credit that resulted in very low tax liability for some. A recent study released by the Wisconsin Budget Project found most of this credit goes to reducing taxes for millionaires, including “some tax filers with incomes of over $1 million receiving tax cuts of more than $100,000.”

That list of Enterprise Zone Tax Credit awards includes the total credits that can be claimed over a 16-year period (2009-2024). Different companies are on different schedules. One company’s contract began in 2009. Seven of the listed companies have contracts that go back to 2010. The remaining contracts were written since 2011. The credits are awarded for various business activities. Some credits are given for jobs created or retained, for training or buying from Wisconsin companies. In every case, the “Enterprise Zone” created is the footprint of the company itself.

Credit compliance is overseen by the troubled Wisconsin Economic Development Corporation (WEDC), which does not have a good track record for independently verifying that jobs were created. Three separate audits by the nonpartisan Legislative Audit Bureau showed that not one single job created was independently verified.

Earlier this year, the Wisconsin State Journal reported that WEDC’s claims of jobs created were based on “faulty calculations”. They went on to report, “The agency gave out almost $90 million more in awards, but the total number of related jobs fell by nearly 6,000.”

The cost of the Enterprise Zone Tax Credit and the Manufacturing and Agriculture Tax Credit would go far in covering the cost of reforming our state’s flawed school funding formula or funding repairs for local roads.

Funding for road repair is something on the minds of many in Wisconsin. We were reminded once again that in a short time the power of Mother Nature and water can demolish our roads. I offer my heartfelt thanks to the road crews, law enforcement, emergency management, the Red Cross and county officials all of whom worked tirelessly to keep the people safe in the aftermath of the torrential rains and flooding that hit western Wisconsin. We will not be back to normal for a while but we are all safe. If you need help please call 211. And read Rep. Danou’s column this week.

Many Americans distrust both of the country’s major political parties this year, especially young voters, but is there another option?

ALTOONA, WI - Here we sit, with most Americans deeply dissatisfied with and alienated from both of the country’s major political parties. This condition is likely to worsen before it gets better, as young Americans are especially disgusted with the two major parties.

For the time being, the clear majority of Americans are feeling doomed to either sit out elections and surrender their vote or engage in the distasteful exercise of Lesser Evil Voting. The only alternative to LEV they can see is voting for a minor party like the Greens or Libertarians, and visions of spoiler candidates and wasted votes dance in their heads at the thought.

There is another option, but it is one scarcely remembered because it hasn’t been tried in a very long time despite proving successful in the past.

In the early 1900s, farmers in North Dakota were at the mercy of powerful cartels and couldn’t get fair prices for their grain or credit at a reasonable interest rate. They were at the mercy of powerful cartels. In hopes of getting out from under the thumb of the out-of-state tycoons who were gouging them, they banded together to form a political organization called the Nonpartisan League (NPL).

Some say the NPL was the idea of a former Socialist Party organizer named Albert Bowen. Others figure it was the brainchild of flax farmer-turned-political agitator A.C. Townley. One way or the other, Townley and Bowen teamed up and Townley was soon driving across the state in a Model T Ford spreading the word about the NPL. Bowen and Townley enlisted tens of thousands of followers.

The NPL gained power by making use of a creation of the late-19th Century Progressives: the primary election. The primary system adopted in North Dakota and other states like Wisconsin not only gave voters the power to nominate major-party candidates, but most importantly allowed voters to participate in a party’s primary even if they did not belong to that party. By putting NPL-endorsed candidates up against those favored by the state’s political machine, the NPL took over North Dakota’s dominant Republican Party in 1916. A wheat farmer and NPL member named Lynn Frazier was elected governor with almost 80% of the vote and NPL-backed candidates won every other statewide office except one as well as a majority in the state assembly.

Upon gaining power, the NPL acted, giving farmers credit at significantly lower interest rates through the establishment of the state-run Bank of North Dakota opened in 1919. A state mill and grain elevator was completed in 1922, providing a fair market for grain and a source of feed and seed. Insurance was provided against fire, tornado and hail damage.

The NPL’s enduring legacy in North Dakota stands as an inspiring example of what is possible when people declare themselves free of unresponsive major parties while simultaneously using elements of the two-party framework to force change. The NPL stands as proof that the dismal choice between Lesser Evil Voting and wasted votes cast for spoiler candidates from minor parties is a false choice. There is another way.

This survey on Internet access now being conducted by the Public Service Commission will paint a more accurate picture of broadband coverage in Wisconsin. Participate and your responses will help inform lawmakers on how to bring our state into the twenty-first century.

ALMA, WI - Do you have a great Internet connection? Less than what you’d prefer? Makes it impossible for you to do your work or your children’s homework? No service at all?

Make your opinion known!

The state is taking a survey of how Wisconsinites connect to the Internet. The survey is free – and ironically – available online. Those without Internet – or such a slow connection they cannot fill out a survey – can let their voice be heard by calling the following toll-free phone number - (877) 360-2973.

Home connections and businesses are measured in separate surveys. You can reach the residential survey here: https://www.research.net/r/WI_PSC_broadband_survey

Businesses can voice their opinion here: https://www.research.net/r/WI_PSC_business_broadband_survey

To prepare for the survey, make sure you know your Internet provider and the number of electronic devices in your home or business that connect to the Internet. The survey will ask for your address, the type of problems you experience, and if you have students in the home who also have Internet problems.

The Public Service Commission – the state agency responsible for supervising public utilities – is conducting the survey. The state must improve information on who is well served and who is not. The current map of where broadband exists is based on information from the companies who provide the service – not from customers.

As a consequence, the state broadband map is inaccurate. Service in an area that appears covered on the state map can be very uneven.

Some companies inaccurately described both the areas they cover and the speed available. People complained about the inaccuracy of the state map and the illusion the map conveys to policymakers.

In conversations with the State Broadband Director earlier this year, I shared examples of how the map misinformed state leaders. For example, one company advertised speed with the modifier “up to” as in “up to 10 Mg.” However, the company didn’t tell the consumer the only way to get that speed is if he lives right next to the company’s equipment and no other customer tries to get on the Internet.

A few years ago, large companies successfully lobbied to remove state oversight of telecommunication companies. Consumer protections and penalties for companies not complying were removed. This makes keeping companies accountable very difficult. The lack of oversight encourages some companies to look for ways to appear to provide coverage without actually delivering it.

Some companies provide fabulous service at a very reasonable price. They do this despite the lack of oversight by the state. Many of these companies are local, customer-owned cooperatives. The Co-op model provides accountability directly to local customers who serve as the Co-op directors. People with problems call a local person or walk into a local office. In western Wisconsin, cooperatives are leading the way to build out reliable, high speed broadband to rural customers.

Pitted against the smaller local companies are the large telecommunication companies with expensive lobbyists in Madison. The result of the uneven resources between small, local companies and large multi-national companies means the Public Service Commission often views the large companies as “walking on water” while having little information about the small local companies who are working the real miracles.

Broadband has become a necessary service to all communities. In the twenty-first century, broadband is as necessary as electric power was nearly one hundred years ago. Businesses cannot function without broadband. Young people know more than many how vital fast Internet is to life today. They are leaving rural Wisconsin because they do not have reliable, fast and unlimited access.

State and federal money has been invested in building out broadband. Too often however the large companies used the access problems in rural Wisconsin to apply for that money and then did not deliver the goods to our underserved areas.

Just tracking the company’s progress in building out service is difficult for the state because there is no independent verification of new customers served.

If you have great service, poor service or no service at all, please take the time to fill out the survey and let your voice be heard. Your investment in time will help those working hard to bring Wisconsin into the twenty-first century.

Historic reductions in state aid to schools and Madison imposed revenue limits have left cash strapped local schools with no alternative but referenda to fund operations.

ALMA, WI - “Is the strategy in the state to move all funding for schools to the local level?” a local school official asked me.

I hesitated. No one in Madison – that I know – intentionally wanted to increase property taxes. However, one result of historic state cuts to schools is an increase in property taxes.

Ironically, taxpayers themselves are voting by way of referenda to raise their property taxes. But they are doing so because state law has left cash-strapped schools no other options.

Schools are under strict state imposed revenue caps. They cannot just raise local taxes to offset less state aid, but voters can override the revenue cap by passing a referendum to raise property taxes.

Many communities are voting to approve school referenda. According to Department of Public Instruction records, voters are on track to consider over 100 different school referenda in 2016.

The process is not new. However, twenty-five years ago the reason voters passed a school referendum was to borrow money for construction projects, for example to build a new school.

About ten years ago, school referenda for operating costs – the routine expense of running the school – began to replace debt as the majority of referenda in our state.

Even as school boards sought money from taxpayers to operate schools, actually passing the referenda a decade ago was roughly a 50-50 chance.

Now voters approved 78% of all school referenda. Referenda specifically to increase taxes to pay for school operating costs passed at a rate of 82% this year.

Many of us just wrote a check for the second half of our property taxes due the end of July. The memory of a big check you wrote may be fresh in your mind.

Property tax is the largest single tax we pay in Wisconsin. The state uses the value of property to determine how much state aid your local school district receives. The higher local property values the less aid your district gets from the state.

Many of you may remember Governor Tommy Thompson’s promise about state school aid back in the mid-1990s. Thompson promised that two-thirds of the school costs would be picked up by the state.

He then gained legislative support for over $1 billion new state dollars for schools. This action had a direct impact on property taxes. In tax year 1996, the school portion of property taxes dropped by 16% leading to a decline in overall property taxes of over 6%.

Today the state contributes almost half of the money for local schools – well short of the two-thirds funding from years ago. For taxes paid this year (2015 tax year), overall property taxes increased 2.3% to the highest level – $10.6 billion – in the history of our state.

When the referenda passed this year kick in, next year’s property taxes in those districts will be higher.

With eight out of ten referenda passing, and state school aid below 2006 levels, I find it not surprising that people suspect state lawmakers are going to put the whole cost of schools on local tax payers.

Many Wisconsin residents look to Minnesota and see that the state contributes almost 70% of the total aid for schools. Property taxpayers in Minnesota only contribute one quarter of all school costs. Wisconsinites say if Minnesota can do it, why can’t Wisconsin.

To substantially lower property taxes in Wisconsin the state would need to contribute a much larger portion of school costs.

Many of my colleagues say the price tag on school funding reform is just too high. But, without increases in school state aid, property taxes are just too high.

We can solve our school funding problems at the state level. I did the math. I constructed an alternative budget that fully funded State Superintendent Tony Evers’ Fair Funding for our Future, which would reform our school funding formula.

Property taxpayers are committed to their local schools but cannot continue to pick up more of the costs of school. The solution requires a commitment by lawmakers to adequately fund public education – for the sake of property taxpayers and our children’s future.

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There was a time when the state provided two-thirds of school funding but that level of support has eroded over the years. Property taxpayers are committed to their schools but cannot continue to pick up more of the costs. Kathleen notes that she created an alternative budget that fully funds State Superintendent Tony Evers’ Fair Funding for our Future. A commitment by lawmakers to adequately fund schools would reduce the burden on property taxpayers.