Progressive Thinking

The most recent LAB report again points out that WEDC does not collect the information necessary to report on the jobs promised when taxpayer dollars are used. Is our money effectively and efficiently invested?

MADISON – Our state spends a great deal of money on economic development. The Wisconsin Economic Development Corporation (WEDC) is responsible for overseeing much of the taxpayer money that goes to job creation.

A recently released audit by the nonpartisan Legislative Audit Bureau (LAB) found that “WEDC cannot be certain about the number of jobs actually created or retained as a result of any awards that ended.”

By law, WEDC is required to report jobs created or retained. The agency meets the requirement through reports posted on its website. However, auditors found these data inaccurate.

“We found that the on-line data in January of 2017 included 183 jobs created and 1,082 jobs retained by recipients that had sold their operations in Wisconsin, ceased their operations in Wisconsin, or had withdrawn from their contracts before the contractually specified completion dates.

For example, WEDC claimed credit for retaining 340 jobs for a company that ceased operations in Wisconsin; claimed credit for creating 68 jobs for another company that sold its operations in Wisconsin; and claimed 485 jobs retained for a third company that withdrew from its contract years before it was to deliver the created and retained jobs.

In addition, auditors found WEDC double counted jobs created and retained. For example, one company received awards in both June 2012 and September 2012 for the same 305 jobs created and 284 jobs retained. Another company signed two different contracts in July of 2011 but the company claimed they would retain the same 110 jobs for both awards.

Auditors also looked at 192 contract awards made since July 2011 through the end of September 2016. Presumably, at the end of a contract one would know if the promised results were achieved. Upon review of the 192 awards, LAB found only 12.5% (24) even had an expected result of job creation or retention.

Of those 24 with expected results, three of the contracts did not actually require the company to create or retain jobs; 13 contracts ended before their completion date (meaning the requirements were not fulfilled). Of the eight contracts completed, WEDC did not collect sufficient information to verify that promised jobs were created.

Without accurate information about WEDC program results, lawmakers and taxpayers cannot know if the investment in job creation and retention was money well spent.

WEDC authorized hundreds of millions in tax credits, grants and loans since its 2011 inception. The most recent audit is the third report that raises ongoing concerns about the lack of independent verification of jobs created or retained.

Some WEDC problems were corrected, such as establishing accounting policies and procedures for the agency (the lack of which was a finding in 2013). But other problems identified in prior audits continue. For example, in 2015 auditors found WEDC kept a reserve of state money larger than necessary. In the most recent audit, auditors found WEDC’s cash and investment reserves more than doubled over four years.

Prior problems with administering its loan program caused legislators to phase out any further loan activity by WEDC. In this most recent audit, the potentially uncollectable loan balance nearly tripled and auditors found a substantial rise in the loan delinquency rate.

Just days before the release of the audit, the Legislature’s budget writing committee voted, along partisan lines, to restart WEDC’s troubled loan program. The committee also voted along partisan lines to increase state taxpayer dollars going to WEDC.

Both of these actions should be stopped.

For nearly six years, Wisconsinites asked whether WEDC lived up to the promises made at its inception. The Legislative Audit Bureau continues to tell us that WEDC does not collect adequate information to provide lawmakers and citizens with accurate information on whether promises of job creation and retention were delivered

Most of WEDC’s money is state taxpayer dollars, a precious resource that is used to fund many other programs. A dollar spent on unverified job creation/retention programs means a dollar is not available for critical investments like transportation infrastructure, public schools or local government.

It is time for all of us to demand that the Governor and the WEDC Board step up and correct the ongoing problems documented in three separate audits of WEDC over the last six years. Job creation is important, but so is the most effective and efficient investment of state taxpayer dollars.

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The audit briefing sheet and full audit can be viewed online.

http://newiprogressive.com/images/stories/S5/medical-transport-s5.jpgThe American Health Care Act passed in the House cuts $839 billion from Medicaid, removes coverage from millions, and drastically alters healthcare protections for the rest. It would shift billions to Wisconsin taxpayers and does nothing to reduce health care costs, it only reduces the revenue available to pay them.

MILWAUKEE, WI - The House of Representatives voted last week to deliver Wisconsin citizens, including our most vulnerable adults and children, a multi-billion-dollar bill we cannot pay. The American Health Care Act (AHCA) initiates a $839 billion cut to Medicaid, removes healthcare coverage from millions, and drastically alters healthcare protections for the rest. Most disturbing, rather than focusing on the promised replacement of the Affordable Care Act, the AHCA robs a quarter of the Medicaid budget to pay for tax changes that will benefit only the wealthiest Americans.

Medicaid funds far more than medical insurance for the poor. In Wisconsin, forty percent of Medicaid funds support popular and innovative programs like Family Care, IRIS, and Community Options that keep older adults and people with disabilities in their homes and out of expensive institutions, supporting them to work, volunteer, and contribute to the economy.

Medicaid funds HealthCheck, ensuring babies and children get the early care and treatment they need. Medicaid funds Katie Beckett, the Children’s Long Term Support program, and special education services that support families of all incomes with children with significant disabilities. Medicaid funds mental health services, addiction treatment, and BadgerCare, providing health care security for low-income working adults. For nearly 1.2 million Wisconsinites, Medicaid matters.

Medicaid is an investment in Wisconsin’s economy. With access to healthcare, Wisconsinites can avoid illness and manage chronic conditions, keeping them working. Family caregivers can keep their jobs instead of being forced to leave to care for family members. Tens of thousands of Wisconsin jobs and our healthcare infrastructure are supported by Medicaid.

Wisconsin now receives 59 cents from the federal government for every dollar it invests in Medicaid. It invests those dollars efficiently. By selectively expanding coverage and moving to a statewide managed care system for adults with disabilities and the frail elderly, Wisconsin has saved tens of millions of dollars in more expensive hospital and institutional care.

Under the Affordable Care Act, nearly a quarter of a million more Wisconsinites have health insurance. In fact, Milwaukee won an award for the highest increase in coverage. This has benefitted Wisconsin’s economy. Hospital based uncompensated care costs have decreased by $500 million dollars from 2013 to 2015, lowering hospital costs and reducing cost shifting.

In contrast, Wisconsin stands to be one of the AHCA’s biggest losers. The AHCA will cap future federal payments based upon 2016 state Medicaid spending. In 2016, Wisconsin underspent its Medicaid budget by $312 million, refused Medicaid expansion funds, and had the lowest per capita spending on children in the nation. Worse, any attempt by Wisconsin to make up the “difference” will be met by a dollar-for-dollar reduction in federal funding. That is not flexibility – that is an unfunded mandate to reduce coverage, care, and support for our most vulnerable citizens.

The AHCA would shift billions of costs to Wisconsin, cause thousands to lose coverage, and pass on to Wisconsinites the hard decisions about waiting lists, terminations, and rationed care for our most vulnerable citizens. Nothing in the AHCA addresses the actual drivers of health care costs – it only reduces the revenue available to pay them.

It’s time for Wisconsin – and the United States Senate -- to recognize the value of Medicaid and the ACA to its people, the economy, and our State. We can’t afford any less.

Time for Assembly to Step Up for Spouses and Children of Law Enforcement Officers Killed in the Line of Duty.

ASHLAND, WI - Soon we will all be celebrating the unofficial start to summer, Memorial Day. I will spend the day with a group of veterans from Mellen VFW Post 2273 visiting cemeteries across Ashland County. I’m honored to join them as they quietly pay their respects and remember the men and women who answered the call, and too often lost their lives defending our freedom. I also will speak at a Memorial Day Ceremony at the Northern WI Veterans Memorial Cemetery in Spooner on the Saturday before Memorial Day. It’s important to find the right words. Even more important is making sure that our actions speak as loud as our words.

The same is true when it comes to honoring the men and women who lose their lives policing our streets, fighting fires and responding to emergencies. Sadly, we’ve lost too many good public safety professionals in Wisconsin recently. In the 25th Senate District we lost Dan Glaze, a 33 year old Rusk County Deputy Sheriff killed in the line of duty responding to reports of a suspicious vehicle in November of 2016. Trevor Casper, a young Wisconsin State Trooper was gunned down in a grocery store parking lot in 2015. Dennis Swenson, a dedicated EMT for South Shore Ambulance, died trying to save his 95 year old mother who also perished in the fire in 2015. Dennis left behind an abundance of family and friends; he did not leave behind a family who depended on him for financial support.

Unfortunately, other public servants who lose their lives in the line of duty do leave behind spouses and children who depend on their incomes and benefits. In 2009 the legislature passed a law that required municipalities to pay health insurance premiums for the survivors of a Firefighter who dies, or has died, in the line of duty. For some reason, the law did not extend the same benefit to the surviving spouses and children of Law Enforcement Officers, Emergency Medical Technicians, Rangers, Foresters and others who lose their lives while on duty protecting the public.

Jason Zunker, A Chippewa County Sheriff’s Deputy and graduate of Maple Northwestern High School, died in the line of duty in 2008. He left behind a young wife, Lisa. After Deputy Zunker’s loss, people in Northern Wisconsin began asking: “Why do we treat the surviving spouses and children of these public servants differently?” It is a good question, one that should be answered by passing legislation that extends the benefit to the young children and spouses left behind when any of our public safety personnel lose their lives while on duty.

I am proud to be working with one of my colleagues, Republican State Senator Van Wanggaard, a retired Racine Police Officer, to make this happen. I have coauthored a bill with him again this session to extend health insurance coverage for spouses and children of Law Enforcement Officers, DNR Firefighters, Correctional Officers and EMTs who are killed in the line of duty.

The bill passed in the State Senate, but not in the State Assembly. No one has been able to give me a straight answer as to why the Republicans who control the Assembly won’t step up, pass the bill and send it to the Governor. Today Governor Walker will lay a wreath at a State Capitol Ceremony in honor of Wisconsin's fallen Law Enforcement Officers. At a similar ceremony earlier this month in Milwaukee, he laid another wreath and said “we owe them respect and honor their selfless courage.” I couldn’t agree more. I believe we can and should do better than some nice words and a wreath. We should pass the bill that provides health insurance benefits to their surviving spouses and children and give the Governor the chance to sign it.

We can steer clear of the social, political and economic turmoil and upheaval this new economy has the capacity to create. If heads are buried in the sand, chaos will reign.

ALTOONA, WI - Those in power in Wisconsin’s Capitol want everyone to notice that the state’s unemployment rate has come down some. They are equally eager to have everyone to look past other troubling facts, such as wage and job growth that is lagging behind the national average, a poverty rate that’s higher than it’s been in 30 years, and a middle class that’s disappearing faster than anywhere else in the country. They pay no attention to rising economic inequality and hope no one notices that the income gap is growing faster in Wisconsin than in other states.

As unwilling as they are to acknowledge much less do something about these politically inconvenient realities, they are even more reluctant to engage the public in any kind of discussion about even greater challenges that lie ahead.

There is a reason why most Americans believe our kids will be worse off than their parents. The U.S. is hurtling toward an increasingly jobless economy and everyone can see it coming. Even the politicians can see it but don’t want to deal with what is plainly visible on the horizon. Instead they look for scapegoats, telling frightened workers that immigrants are stealing their jobs. Or they offer empty promises that closed factories can be reopened and lost assembly line jobs will somehow magically reappear. This is the cruelest kind of hoax.

Today’s immigrants aren’t replacing yesterday’s factory workers on the assembly lines, robots are. Immigration is not the culprit, technology is. Even if new factories replace the old shuttered ones, how many people will work in those plants? Driverless vehicles are coming. When they arrive, what happens to the truck drivers and bus drivers and cab drivers?

Call this emerging American economy what you will. Some call it global, some call it high-tech. Others label it an information or knowledge economy. Still others see little left but a service economy. Probably the most accurate description is post-human. Workers have every reason to feel vulnerable, and those feelings are only going to intensify.

Fewer and fewer workers have union representation. There was a time when virtually every American household included at least one union member. Today, less than 11% of all Americans and only 6% of private sector workers belong to a union. Labor unions were an outgrowth of the industrial revolution. That revolution came and went. In what came after, unions struggled to adapt and steadily lost membership. Workers lost bargaining power.

In the short term, steps can be taken to empower working people, from affordable and debt-free education and job training to universal access to everything from health care to high-speed Internet. But in the longer term, if our society is going to hold together in an increasingly jobless economy, we are going to have to renegotiate the social contract. Totally new approaches to maintaining social cohesion are going to have to be considered. Maybe part of the answer is moving to the 30-hour workweek that Amazon and other companies are trying out. That would make work available to more people. Maybe the time will soon come for a universal basic income. That would require all of us to see the value in making sure no one is left behind. Maybe making union representation a civil right could be a piece to the puzzle. Perhaps some combination of these or other ideas will light the way.

If minds are open, we can steer clear of the social, political and economic turmoil and upheaval this new economy has the capacity to create. If heads are buried in the sand, chaos will reign.

— Mike McCabe

MADISON, WI – Milwaukee County Sheriff David Clarke announced Wednesday that he has accepted an appointment as an assistant secretary in the Department of Homeland Security.

With this disturbing news, it’s clear that Trump continues to betray the nation’s trust with his appointment of Milwaukee County Sheriff as the newest member of the Trump Deportation Team. This is the same person who attempted to incite violence against the very institutions he has sworn to protect by telling people to get their ‘pitchforks and torches.’

In January, Clarke threatened violence to fellow air passengers saying, ‘next time he or anyone else pulls this stunt on a plane they may get knocked out.’ That threat came after a passenger on a plane shook his head at him. Sheriff Clarke has, again and again, shown our community and the nation a disturbing pattern of bizarre, irresponsible and menacing behavior. Our neighbors are right to be concerned with the damage Clarke could wreak on the national stage.

Trump knows that Clarke will back bad policies that betray our values, harm our neighbors, and enforce policies that rip families apart. As Milwaukee County Sheriff, Clarke recklessly pursued joining the Trump administration in their implementation of 287(g), which gives local law enforcement the ability to operate as federal immigration agents. Many of our neighbors oppose the program as it allows law enforcement to stop and question people based on just their appearance.

It’s no wonder Clarke was seeking an escape from his Milwaukee County mess before the next election, as he is facing communitywide anger for his gross mismanagement of the Milwaukee County Jail, including the recent tragic death of Terrill Thomas by dehydration. In a span of just months, four families lost their loved ones due to Clarke’s negligence and lack of supervision over his department.

Clarke has a history of mocking, belittling and intimidating our neighbors. He is yet another bad actor in a cast of clowns.