Progressive Thinking

Big Corporate For Profit Media Missed “Bait and Switch”, Outsourcing Safeguards Were Never Implemented as Walker Administration Announced But Did not Implement WEDC Outsourcing Prohibitions.

STATEWIDE - In July the outsourcing issue dominated the Governor’s race, generating wall-to-wall news coverage, and some excellent reporting on the use of public money to support outsourcing companies by Governor Walker’s jobs agency, the Wisconsin Economic Development Corporation (WEDC).

But when both candidates seemed to take strong positions against public job creation dollars going to companies engaged in outsourcing Wisconsin jobs, and WEDC seemed to enact safeguards, the issue vanished from the Governor’s race. This disappearance was so complete that it did not even come up in the two debates.

An analysis of the public record by Citizen Action of Wisconsin reveals that the strong protections announced in the media against providing state job creation grants, loans, and tax credits to firms engaged in outsourcing jobs were never implemented.

In addition, even the safeguards that were announced in the media and not implemented do not effectively prevent huge state tax breaks from going to outsourcing companies. Shockingly, Wisconsin tax policies enacted by Governor Walker and the Legislature actually could allow companies to claim large tax credits for some of the costs of outsourcing Wisconsin jobs.

“It is stunning as we witness an eleventh hour media frenzy over pseudo stories that have no impact public policy that the media is missing one of the biggest and most impactful stories of this election,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It is scandalous that voters are in danger of going to the polls knowing all about various fake campaign stories and no knowledge that state policy still allows their tax money to go to corporations engaged in outsourcing their jobs, and even could allow corporations to write off some of the expense of outsourcing.”

Walker Administration Announced But Did not Implement WEDC Outsourcing Prohibitions

In July, as a result of an intense debate about which candidate would take effective action to deter companies receiving state job creation grants, loans, and tax credits from outsourcing jobs, the Walker Administration announced in the media a number of changes in state policy designed to prevent companies which receive state aid from outsourcing Wisconsin jobs. It was announced and reported in the media that a series of reforms, championed by Representative Peter Barca (D-Kenosha), were discussed at the July WEDC meeting and would be implemented at the next meeting.

A Citizen Action of Wisconsin analysis of WEDC Board Minutes and publicly available records finds no evidence that strong policies announced to the media were ever put in place. Instead, the policies implemented were so watered down that is still perfectly legal to provide state funding to corporations engaged in outsourcing.

There were only two changes Citizen Action could locate in the public records. First, there is now 30 days notice required for layoffs by companies receiving WEDC grants, loans, and tax credits.  Second, new WEDC contracts will require that state funds are not directly spent on outsourcing.  Given that WEDC funds large corporation such as Ashley Furniture have every ability to use non-state resources to outsource, it seems to be still perfectly legal for companies receiving state dollars to outsource jobs, and to cancel out the jobs public money is paying them to create.

Other much stronger measures reported in the media seem never to have been implemented.

One measure prominently reported as having been adopted by WEDC would have suspended funding for outsourcing companies until an equal number of jobs in Wisconsin are created.  As WKOW TV 27 reported: “companies who accept awards, then later reduce their net number of jobs in Wisconsin, cannot get any more actual money until they get their workforce back to where it was when the award was originally given out”. However,  This provision is not at all mentioned in WEDC board’s minutes or committee minutes, WEDC’s website, or in any subsequent board agendas. At the request of Citizen Action of Wisconsin, legislative staff made numerous requests to clarify the status of this policy with WEDC’s counsel, and to provide in writing the actual policies adopted by WEDC, but received no response.

The Milwaukee Journal Sentinel reported on July 29th that: “Gov. Scott Walker on Monday backed a proposal by Assembly Minority Leader Peter Barca to block state money and incentives from going to companies that shift jobs overseas.” The article goes onto state that the policy was discussed at the July WEDC board meeting and would be passed at the next meeting. Citizen Action’s review of public records, including WEDC minutes, finds no evidence this broad policy against giving state dollars to companies engaged in outsourcing was ever enacted. WEDC counsel has not responded to legislative requests for information on this policy.

Manufacturer's tax Credit an Even Bigger Outsourcing Loophole

Although the media has focused on WEDC’s connection to outsourcing, Governor Walker’s signature tax policy, the Manufacturer’s and Agricultural Tax Credit not only allows outsourcing companies to get massive tax credits, but even could allow them to write off some of the cost of outsourcing on their state taxes. The size of the tax credit is greater than WEDC funding for manufacturing. According to the Wisconsin Budget Project, it will add up to $874 million in tax credits over ten years.

The Manufacturer's tax credit represents a larger potential public support for outsourcing than WEDC grants, loans, and tax credits. The credit is available to those with manufacturing or agricultural property, but is not based on the size of the workforce. Because Wisconsin's corporate income tax is based on the sales a company has within the state, a company can still lay off or outsource large segments of its workforce and continue to be eligible for a sizable tax credit so long as it owns even one piece of property for manufacturing purposes. Recipients of this credit have no additional requirement to report outsourcing, and are not deemed ineligible for the tax credit if they outsource.

Although this massive tax credit is a major threat to Wisconsin workers, there has been no discussion during the Governor’s race about attaching job creation requirements to the credit or withdrawing it from corporations that outsource Wisconsin jobs.

“The Walker Administration's bait and switch on outsourcing is the biggest unreported story of this election,” said Robert Kraig, executive director of Citizen Action of Wisconsin. “Even the best informed voters are being left entirely unaware that it is still perfectly legal for a company like Ashley Furniture to outsource large segments of its Wisconsin workforce and claim  substantial job creation grants, loans, and tax credits while doing so. It could even be legal for them to write off some of the cost of outsourcing.”

A Green Bay Press Gazette story gave legs to a false report that Democratic Gubernatorial Candidate Mary Burke was fired by TREK, questioning her business credentials just before the election. Our sources say the reported firing was made up by Walker friend Gary Ellerman, Chairman of the Jefferson County Republican Party and fired by TREK himself.

GREEN BAY - Several days ago we predicted that the Republican “dirty tricks” people supporting Scott Walker would save one or two of the best smear shots at Mary Burke until the closing days of the campaign. That’s how it’s often done in the dirtier regions of Milwaukee County politics. You drop the dirt bomb just before the final weekend of the campaign so it has time to sink in with the electorate while still not giving your opponent enough time to counter it.

On Thursday morning, in a front page article entitled “Burke on report of being fired from Trek: `ridiculous'” by Adam Rodewald, the Green Bay Press Gazette gave legs to a false report that “Burke was fired by her family, who founded Trek Bicycle, following financial losses and low morale among staff.” Damage done, the seed of doubt about Burke's business credentials is planted, even if there is no truth to the story. Continued on page 10.

Of course when we get to page 10, the Press Gazette goes on to say the “report relies on statements by several anonymous sources and Gary Ellerman, who the Wisconsin Reporter identifies as a former Trek human resources director and current chairman of the Jefferson County Republican Party.”

We've dealt with the Wisconsin Reporter for years, and know it to be a Madison Republican front posing as a news source. And our sources say Gary Ellerman is the man behind the latest campaign to smear Mary Burke. Ellerman is the Chairman of the Jefferson County Republican Party and is known for posing as a Democrat during the recalls to force the real Democrat into a costly primary.

Ellerman is also known for enjoying a bad joke or two at the expense of Democrats. A visit his FaceBook page by a Democratic source turned up a October 19 share of a faked picture of Michelle Obama holding a sign saying such things as “My Family is a Fake”, “Husband is a Homo”, “Kids are adopted”, and “I am a man”.

Finally FaceBook also reveals that Gary Ellerman is a friend and committed supporter of Scott Walker. The July 2, 2012 picture above that Ellerman posted of himself posing “With the Governor and a few friends Sunday” provides the evidence.

Trek President John Burke released a statement Wednesday saying the report was inaccurate and noted that it was actually Gary Ellerman who had been fired from Trek in 2004, according to the Wisconsin Radio Network.

When asked for her comments, Burke said “I read the report. It’s ridiculous,” and then “Frankly, we’re in the last six days of the election, and I think it’s a desperate attempt to undermine my credibility based on absolutely no evidence at all.”

If anyone asks him, Scott Walker will probably say he didn't know what his friend was up to. Of course, he said he didn't know what the six convicted members of his staff at Milwaukee County were up to either.

That's how it goes. You throw something out, anything, and see if it sticks. It seems to be a way of life for politician Scott Walker and businesswoman Mary Burke is new to the game. Maybe we can do a little to clarify the story here.

MILWAUKEE - The shifting winds of who says they are most likely to vote and the different realities of men and women voters appear to have turned back in Scott Walker's favor according to the Final Pre-election Marquette Law School Poll released today. The new poll finds Republican Scott Walker leading Democratic challenger Mary Burke 50 percent to 43 percent among likely voters in the Wisconsin governor’s race.

The previous Marquette Law School Poll, conducted Oct. 9-12, found the race tied among likely voters, with the candidates holding 47 percent each, while 48 percent of registered voters supported Walker to Burke’s 45 percent support.

In Wednesday's poll, 3 percent say that they are undecided or that they do not know whom they will support, while 1 percent say that they will vote for someone else. Likely voters are those who say that they are certain to vote in the November election.

“Shifting turnout intentions have provided most of the dynamics of the race this fall,” said Marquette Law School Poll director Charles Franklin. “While the results among all registered voters have varied between a tie and a 3-point Walker edge, the likely-voter results have ranged from a 2-point Burke advantage to the current 7-point Walker lead.”

In the current poll, 93 percent of Republicans say that they are certain to vote, while 82 percent of Democrats and 75 percent of independents say the same. Two weeks ago 82 percent of Republicans, and 80 percent of both Democrats and independents, said that they were certain to vote. By comparison, in the final Marquette Law School Poll before the 2012 gubernatorial recall election, 92 percent of Republicans, 77 percent of Democrats and 84 percent of independents said that they were certain to vote.

Among registered voters this time, Walker receives 46 percent and Burke 45 percent, with 4 percent undecided and 1 percent saying that they will vote for someone else.

The poll interviewed 1,409 registered voters, including 1,164 likely voters, by landline and cell phone Oct. 23-26. For the full sample of 1,409 registered voters, the margin of error is +/- 2.7 percentage points. The margin of error for the sample of 1,164 likely voters is +/- 3.0 percentage points. This is the final Marquette Law School Poll before the Nov. 4 election.

Another factor in the final poll result is the return of the large gender gap among likely voters. After narrowing to just 2 percentage points in the previous poll, the gender gap in vote choice has returned.

Among registered voters, Burke leads 50-40 among women and Walker leads 53-39 among men. Among likely voters, Burke’s lead among women is 49-43 while Walker’s lead among men is 58-36. In the six Marquette Law School Polls since July, Burke has averaged a 49-42 lead among women and Walker a 52-40 lead among men for registered voters. Among likely voters, Burke has averaged a 52-42 lead among women and Walker a 55-40 advantage among men.

Another factor in the results may have been the deluge of negative ads launched by the Walker campaign and their allies to muddy the image of Mary Burke.

Burke’s favorability ratings have turned down in the latest poll, with 38 percent of registered voters viewing her favorably while 45 percent have an unfavorable view. In earlier polls in September and October, her favorable-unfavorable ratings were 36-35, 36-37 and 40-43. Among likely voters, her current favorable-unfavorable rating is 39-49, with the ratings in the three earlier polls since the beginning of September being, oldest to newest, 41-39, 40-44 and 44-44. Among registered voters, 17 percent lack an opinion of Burke, down from 69 percent in January. Among likely voters, 12 percent say they haven’t heard enough or don’t know their view of Burke.

Walker’s favorable rating in the latest poll is 48 percent, with 47 percent unfavorable, among registered voters. His previous ratings since the beginning of September are 49-45, 47-47 and 48-48. Among likely voters he is currently seen favorably by 51 percent and unfavorably by 46 percent. His ratings among likely voters in the three most recent polls are, in chronological order, 52-46, 52-46 and 50-48.

Given the wide swings in the last three polls, this race is still up for grabs. Early voting and absentee voting have begun and people who have already voted are much more likely to "say that they are certain to vote". Democratic voters are legendary for showing up at the polls after 6 PM on election day. Many factors could cause the wind to shift back in Burke's favor.

But this poll is not good news for the Burke campaign and the Democrats will have to double their efforts in the final days to get their supporters to the polls.

Senator Kathleen Vinehout writes about voting and the Voter ID law. She shares background on the decisions leading up to the U.S. Supreme Court action that puts the Wisconsin ID law on hold.

ALMA - “I haven’t voted in three years,” a Galesville fairgoer told me this summer. He leaned up against the pole barn at the Trempealeau County Fair and shoved his fingers in his pockets. “I don’t want to show up and be told I can’t vote.”

Changes in voting rules are confusing. A requirement to have a certain type of photo ID to vote has been an ‘on again, off again’ law leading up to this election.

On November 4, voters will not be required to show a photo ID.

The U.S. Supreme Court put a hold on Wisconsin’s photo ID law. The high court made no comment on the law and may rule on it later. If not, legislators in January may revisit the photo ID law. But for now, the law is on hold, so the Galesville man should vote along with every other eligible voter.

In 2011, Wisconsin passed its restrictive photo ID law. Restrictive because the types of IDs allowed are limited, requirements on absentee voters are strict and the number of people potentially unable to vote is high– estimated at 300,000.

Since 2011, the law ping-ponged back and forth in federal and state courts as one court found it legal while another declared the law unconstitutional. Most recently the U.S. Supreme Court halted enforcement of the law but did not issue an opinion on its final status.

About the same time as the Supreme Court decision, Judge Richard Posner of the US 7th Circuit Court of Appeals wrote the dissenting opinion on that court’s tied vote on taking up an appeal of Wisconsin’s photo ID law before the full court.

At issue – among others – was whether the Wisconsin law was similar to an Indiana law upheld by the courts. If the laws of the two states were similar, presumably Wisconsin’s law could go into effect.

Back in 2011, I argued Wisconsin’s photo ID would be the strictest in the nation. Since then, Texas passed a stricter law. But Wisconsin’s law remains one of the most limiting. The nonpartisan National Council of State Legislatures (NCSL) recently listed Wisconsin as one of 9 strict photo ID laws nationally.

During debate on the Wisconsin law my Senate colleagues and I who opposed the law argued courts would find it unconstitutional because of its restrictive nature and the large of people without acceptable IDs. Proponents of the law argued it was modeled after Indiana already upheld by the nation’s highest court.

In his dissent Judge Posner argued Wisconsin’s law was not comparable to Indiana’s law except that the laws “belong to the same genre”. With 330,000 voters lacking required identification and Wisconsin’s law being more limiting than Indiana, the judge wrote “the effects of the photo ID requirement on voter suppression are likely to be much greater in Wisconsin, especially since as we saw earlier its law is stricter than Indiana’s.”

Many people in Wisconsin are concerned about voter fraud. There are many types of fraud ranging from voting more than once to ballots that are unsecured. However, Wisconsin has a history of clean elections with very little documented voter fraud.

A photo ID law is used to address one type of fraud: voter impersonation. This is when a voter pretends to be someone he or she is not.

In his recent judicial opinion Judge Posner summarized: “There is compelling evidence that voter impersonation fraud is essentially nonexistent in Wisconsin.”

In conclusion, Judge Posner wrote: “There is only one motivation for imposing burdens on voting that are ostensibly designed to discourage voter impersonation fraud, if there is no actual danger of such fraud, and that is to discourage voting by persons likely to vote against the party responsible for imposing the burdens.”

Rules governing voting make a difference in how many people go to the polls. Wisconsin ranks high among voter participation in elections. For example, in 2012, Wisconsin ranked second only to Minnesota with 73% of eligible voters voting; Indiana ranked 40th with 56% of voters going to the polls.

Voting is a precious right in our democracy. Democracy works when large numbers of people are involved on Election Day.

So, go vote!

MADISON - Senate Democrats are alarmed at new revelations about Governor Scott Walker's role in providing insider information to a personal friend and campaign donor in a Milwaukee County real estate scandal. Democrats said the new allegations of “bid-rigging” and "pay-to-play" politics raise troubling questions about Gov. Walker’s rush to sell state property.

“Giving inside information to close friends and campaign operatives to help them circumvent the public bidding process not only cheats the other businesses bidding on projects but the taxpayers and our open form of government,” said Sen. Dave Hansen (D-Green Bay). “No matter how you look at it, it’s wrong and raises serious questions about whether Scott Walker has taken other similar liberties as Governor.”

“As Republicans rush to sell state property, we need to ensure that similar backroom deals for special interests aren’t cheating our taxpayers,” said Sen. Jennifer Shilling (D-La Crosse). “Gov. Walker’s administration has already failed to disclose the fair market value of property they are looking to sell as required by state law. The rush to sell state property to the highest bidder without having adequate safeguards in place puts taxpayers at risk and has been troubling since day one.”

Gov. Walker has recently come under fire for several high-profile scandals including a $700,000 campaign contribution from GTAC – an out-of-state mining corporation – which successfully lobbied to change state open-pit mining laws. An investigation also revealed that Gov. Walker’s Economic Development Corporation has funneled millions of taxpayer dollars to businesses and special interests with close personal ties to Gov. Walker.

“Despite Scott Walker’s denials, all of these actions have taken place since he became governor and they give the public every reason to question his ethics and what else he’s been doing that we don’t know about,” added Sen. Hansen. “Wisconsin citizens deserve answers and it’s is time for the Governor to come clean about his actions.”