Notes from the West Wing
By
State Representative Garey Bies
Job Creation Act of 2003
At the national level, there are signs the economy is starting to
recover. The latest numbers show
first-time claims of unemployment have dropped to 2½ year lows, productivity
has increased, non-farm payrolls have increased, and 3rd quarter GDP
grew at 7.2%, the fastest rate in 19 years.
But what applies at the national level, does not necessarily apply to
Wisconsin.
While manufacturing may be part of
the historical foundation of our nation’s economy, it is no longer the leading
component it once was. While it is
true that job creation across the nation has increased dramatically in recent
months, with 251,000 jobs added in September and October alone, the vast
majority of these jobs were created in the service industry.
For example, the net gain in October was 126,000 jobs.
But within this number, 143,000 service industry jobs were created while
manufacturing LOST 24,000, the 39th straight monthly loss for
the manufacturing industry.
With Wisconsin’s strong ties to
the manufacturing industry, the state continues to feel the pinch from this
sector’s contraction. Manufacturing
jobs in the state peaked in 1999 and since that time, the sector has lost around
80,000 positions. Door County and
the 1st Assembly District have not been spared either with companies
such as Palmer Johnson and Emerson Electric cutting their workforces.
This summer, as I listened to a
presentation by an economist from the Department of Workforce Development, I
paid particular attention to how he stressed that manufacturing economies are
the hardest hit by recessions and are also the slowest to recover from
recessions. The latest economic
numbers confirm this assessment. Wisconsin’s
economy, heavily reliant on manufacturing, needs help.
That is where the legislature has stepped in.
At the end of October, Assembly
Speaker John Gard (R-Peshtigo) and Senate Majority Leader Mary Panzer (R-West
Bend) unveiled the Jobs Creation Act of 2003.
A plan to significantly reform the regulatory and bureaucratic restraints
on economic development, the economic plan was largely modeled after changes
made in Minnesota, a state which has been hugely successful in diversifying its
traditionally manufacturing economy to include the service industry.
Evidence of their success can be seen in the large number of highly
educated Wisconsin college graduates moving across the border to capitalize on
Minnesota’s growing professional job market and economy in step with the 21st
century.
Ignoring the writing on the wall
however, opponents are claiming that the Gard-Panzer proposal will devastate the
environment. I guess I should not
be surprised that opponents are playing the environment card in an effort to
generate sympathy for their position. The
facts are the Job Creation Act does not gut environmental protection, but
reduces the regulatory hassle businesses must endure to gain permit approvals.
The legislation does not ease requirements to obtain permits from the
Department of Natural Resources, it simplifies the permit process and increases
the expediency with which the Department must review and determine if the permit
should be granted. The Jobs
Creation Act does NOT reduce any air quality standards.
But specifically links Wisconsin air standards to federal standards.
This conformity does not reduce any Wisconsin air quality standards
currently in place.
Of course, opponents will preach
this legislation represents the end of Wisconsin as we know it.
In this regard, I would have to agree.
The Jobs Creation Act will help our economy move out of recession, get
our people back to work, and move our state into the 21st century.
This legislation will help open the door to investment in Wisconsin.
That is what our residents need.
As always, I appreciate feedback. If you would like to contact me on this, or any other issue of interest, please feel free to contact me. I can be reached by e-mail at Rep.Bies@legis.state.wi.us or by telephone, toll-free at 1-888-482-0001.