Progressive Thinking

Green Bay Manufacturing Wages Down by $2,197, Appleton by $1,971. Janesville-Beloit area leads march to the bottom with $6,555 decline since 2015.

STATEWIDE - Leading into Labor Day 2016, Citizen Action of Wisconsin released data today which shows dramatically declining wages for Wisconsin manufacturing workers in every metro area.

Citizen Action was joined on a media call this morning by State Senator Dave Hansen, WI AFL-CIO Secretary Treasurer Stephanie Bloomingdale, State Representative LaTanya Johnson, and State Representative Evan Goyke. (audio recording here).

Earlier this week, Citizen Action of Wisconsin showed that the outsourcing Wisconsin jobs is continuing at an alarming rate.

Another impact of rigged global trade and state economic development programs shown dramatically in the data released today is shrinking wages for jobs that remain in Wisconsin.

“Labor Day weekend is a good time to focus on the fact that when Wisconsin workers are forced to compete with low wage countries, where the right to form unions is brutally suppressed, the jobs that stay here pay less and less,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin.

Citizen Action of Wisconsin looked at the latest federal data, and found a startling decline in manufacturing wages in every Wisconsin metro area. Real wages (adjusted for inflation) are going down for manufacturing workers in every Wisconsin metro area. On average, annual wages declined $1,430 between 2010 and 2015.

Annual Average Wages for Manufacturing/Production Workers in Major Wisconsin Metropolitan Areas

(Source: Bureau of Labor Statistics, U.S. Department of Labor, inflation adjusted annual average wages in 2015 dollars)

“Declining wages may be good for multinational corporations who have no loyalty to any country, but they are a disaster for Wisconsin’s economy,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “Declining wages damage small business because workers have less to spend at the local grocery store, supper club, coffee shop, and dry cleaner. The result is less employment, and a further drag on local economies.”

"People are feeling like they have less in their pockets, and this data proves they are right," said Stephanie Bloomingdale, Secretary Treasurer of the Wisconsin State AFL-CIO. “When families are not able to put that kind of money into their pocket, the whole community suffers. Smaller paychecks not only impact the immediate family but the entire local economy."

"What would you do with an extra $1,034? That's the difference in Milwaukee for a manufacturing worker's wages from 2010 to now," said State Representative Evan Goyke. “Think of the places in your community you would spend that money, and the economic impact of taking that money out of the local economy.”

“We're seeing the state lead the way in a bad way, leading at having the largest drop in the middle class of all states, and the worst place to raise an African American child," said State Representative LaTonya Johnson. "We've seen communities lose manufacturing jobs, and go from middle class economics to places where families are forced to do without the basics.”

"We in the Legislature can and should make sure that the hard earned tax dollars of Wisconsin workers don't get funneled to companies that turn around and outsource Wisconsin jobs," said Senator Dave Hansen. "The bill we brought forth last session would ban companies that outsource jobs from receiving any state tax break, loan or grant for 5 years."

This data also directly challenges Governor Walker’s constant assertion that a co-called “skills gap” is the cause of Wisconsin’s economic woes. If manufacturers were really having problems finding skilled manufacturing workers, they would be raising wages, not lowering them.

The decline is further proof we need to stop rigging the economy by scrapping bad trade deals which stack the deck against workers and economic development policies that reward companies engaged in outsourcing and lowering the wages of their workers. Wisconsin needs bold new strategies to re-rig the economy in favor of workers.

We have problems with our drinking water around the State and muddled thinking with our legislators in Madison. What can be done?

WITTENBERG, WI - You have seen the newspaper articles about Wisconsin’s water problems. How in 2009 high level of viruses were found in city water around the state and our legislators required testing and treatment of those water supplies. In 2011 legislators repealed that requirement.

In 2010 regulations were designed to reduce phosphorus in our waters. In 2011 legislators began fighting those regulations and eventually allowed compliance to be pushed back twenty years.

In 2014 molybdenum was found in twenty percent of private wells tested in the south east part of the state. The closer the wells were to recycled coal ash sites the higher the concentration. The DNR said the evidence was not strong enough to make any link.

Unsafe nitrate levels have been found in the drinking water of 94,000 homes in Wisconsin. Legislators created a compensation fund for those contaminated wells-but only if the well supplied drinking water for cattle, not children. The EPA says two thirds of the municipal and wastewater treatment plants and Concentrated Animal Feeding Operations in Wisconsin operate with expired discharge permits. One third of the wells in Kewaunee County have tested unsafe for drinking water. And while all this has been happening our DNR has issued citations in only four percent of the water pollution cases considered serious enough to warrant such citations. These problems have been making headlines in our newspapers on a regular basis.

What is not being discussed is the problem with contaminated drinking water in Madison, especially in the capitol building. That contamination seems to have started about the time our legislators repealed the requirement for testing and treatment of city water supplies. First it was decided our teachers were responsible for all of the state’s economic woes and had to be punished. Then hundreds of millions were cut from state aid to public schools and the university system. At the same a tax credit was created that reduced business owners state income tax to zero, a credit that required no job creation and will reduce state income by about $2 billion over the next ten years. Another law as passed that prohibited local school districts from making up their losses by raising their property taxes. Finally, the school voucher program was expanded and the decision made to completely remove the cap on the program in ten years. It was also decided to give more tax dollars per pupil to private schools than to public schools and to give parents of those private school students a $10,000 tax credit.

No logical thinking person would deliberately harm one of the nation’s finest public school systems this way on purpose. No one elected to represent the people of this state would deliberately turn against them this way. Wisconsin’s most important resource is her children and the future they represent. No one would deliberately take steps to harm that future. There can only be one explanation for the decisions coming from the capitol building that are destroying our schools. The drinking water is contaminated.

What can be done? Our attorney general and our Department of Natural Resources say they have no authority to protect our state’s water. No help there. After hours of research I have found an old remedy that was first used in 1845. Folk wisdom says not only can this remedy solve water contamination problems but many others as well. The steps involved are almost like an exorcism. On the first Tuesday after the first Monday in November people around the state must gather together in specific locations during specific hours of the day and mark pieces of paper with an X. If enough of those people do this correctly the water in Madison will be clean once again.

Sen. Vinehout writes about the staff shortage facing many Wisconsin school districts and Superintendent Evers’ Work Group on the teacher shortage.

ALMA, WI - “Who will be my teacher?” my son asked me years ago. For a brief point in time, the teacher was the most important person in his young life.

As children head back to school and parents scramble with new schedules, schools are facing their own scheduling headaches. This year a teacher shortage hit many local schools. Around the state, school districts have hundreds of vacancies.

Recently, I presented an overview of state education budget issues in Viroqua. At least a dozen local superintendents, school board members, principals and teachers were in the audience. Following my presentation, the conversation turned to the teacher shortage.

Educators described an environment in which teachers in certain high demand subject areas move from one school district to another based on the best offer.

Two superintendents from neighboring school districts laughed when they realized they spent the summer bidding against each other to snag the same teacher. “Now we have teachers who come back [to our school] and say, ‘I’m getting a $6,000 increase in an offer from another school.’”

A staff member paid a $12,000 raise creates problems in districts where teachers went seven years with little raise in pay. John, a local teacher, told the group, “The impact on morale is just horrendous.”

Many superintendents, including State Superintendent Tony Evers, saw this crisis coming. Mr. Evers took a number of steps, including the creation of a Working Group on School Staffing Issues.

“Act 10 created a ‘free agency’ environment where competition for high demand and talented teachers is fierce, and financial and geographic differences put many districts at a competitive disadvantage,” stated the group’s final report submitted this summer.

I recently spoke with former Durand Superintendent Jerry Walters who now administers CESA 11, a regional cooperative sharing educational services. He explained post-retirement benefits tended to “give teachers a sense of loyalty”. After Act 10, and the loss of benefits, teachers are like sports player – open to the highest bidder. Few districts can compete in this new world.

School districts have state-imposed revenue caps limiting what they can spend. People are the heart of the school and make up nearly 80% of a district’s budget. Some districts are very short on funds. They gave few raises for many years.

“But some have money to do this,” Mr. Walters told me. “Some Minnesota schools [for example] offer a $10,000 signing bonus… For districts left behind this creates attraction and retention issues…Ultimately it’s the smaller, poorer school district at the bottom of the food chain.”

Rural schools are at a particular disadvantage. Many rural school districts pay ten percent of their budget in transportation costs and have a low revenue cap, which means they don’t have the money to make special offers.

A teacher who worked in Milwaukee, Oconomowoc, Tomah and Westby said, “As long as there is a Middleton, we will lose teachers in Westby.”

To compound problems, fewer students are going into teacher education programs. An April 2016 Journal Sentinel story reported some teacher education programs have 20% to 40% fewer students than a few years ago.

At the Viroqua event, a local elected official, Karen Dahl told the group, “Young people don’t want to go into education because [some in] Wisconsin denigrate the profession and the value of education.”

State Superintendent Evers’ working group offered some solutions to the teacher shortage: cultivate “grow your own” teachers especially in rural areas; make it easier to hire in an emergency; add flexibility so teachers can take on new roles; strengthen ties between K-12 and university teacher education and change recent laws that limit retired teachers from part-time work.

But the simplest part of the solution starts with each of us. I spoke with a math teacher who closed her Facebook page because of negative comments about her profession made by “friends.” She said, “I was in the grocery store and a neighbor came up and said that he didn’t want to pay my salary because I ‘wasn’t worth a dime.’”

Words hurt. And you can help.

Providing every child a great education means getting great people to enter and stay in teaching. We must appreciate the work educators do every day. Our children need an answer to the question, “Who will be my teacher?”

LA CROSSE, WI - Wisconsin’s universities and technical colleges are the economic engines of our state. From workforce development and biotech research to improving farm production and assisting entrepreneurs, we’ve always benefited from strong schools.

But now, after years of Republican budget cuts, businesses are losing out on valuable opportunities, our middle class is shrinking and students are graduating with record amounts of debt. In fact, Wisconsin is home to nearly 1 million student loan borrowers who owe a combined $19 billion in debt.

The student loan debt crisis is causing an economic ripple affect across our state. As a result of high student loan payments, many in our state can’t afford to buy a new car, purchase their first home, open a business or simply start a family.

Democrats, led by Sen. Dave Hansen (D-Green Bay) and Rep. Cory Mason (D-Racine), have made it a priority to ease this burden. Working with students and families, we’ve introduced the Higher Ed, Lower Debt Bill. The proposal would allow individuals to refinance student loans at lower interest rates and provide targeted relief to working families who are struggling to make ends meet. It’s a commonsense and effective solution to lower student loan debt and make college more affordable.

Unsurprisingly, Gov. Walker and legislative Republicans have sided with big Wall Street banks to block this bill from passing. As a result, graduates continue to pay high interest rates on increasingly burdensome monthly payments and our economy continues to suffer.

Across Wisconsin, families are urging action to lower student loan debt. Other states including Minnesota are already leading the way and championing new and innovative solutions to help families afford higher education. Rather than ignoring this crisis and falling further behind, we should tackle this issue head-on and expand access to our colleges and universities.

This election offers voters an opportunity to join with Democrats, stand up against the special interests and chart a new course. Together, we can make student loan debt relief a priority and expand economic opportunities for Wisconsin’s hardworking families.

WEDC claimed to create 483 jobs in the economically depressed Sherman Park neighborhood, but all were actually in the suburbs. Neighborhoods in economic distress need job creation strategies at the scale of the problem.

MILWAUKEE - At a news event in Milwaukee’s Sherman Park Neighborhood today elected officials and community leaders spoke out about revelations that the jobs agency created by Governor Walker, Wisconsin Economic Development Corporation (WEDC), misrepresented its impact on jobs in the area.

Speakers at the event included elected officials such as State Representative LaTonya Johnson, State Representative Evan Goyke, State Representative David Bowen, and Alderman Chevy Johnson. The event also included community leaders such as Reverend Willie Brisco, President of WISDOM, and Martha De La Rosa, Executive Director of Wisconsin Jobs Now.

Citizen Action of Wisconsin revealed late last week that WEDC claimed only to create 483 jobs in the economically depressed Sherman Park neighborhood, the scene of civil unrest ten days ago. However, Citizen Action research discovered that the small number of jobs claimed by the WEDC were not created in Sherman Park, but in exurbs like Hartland.

WEDC CEO David Hogan responded to Citizen Action’s research today, but admits that WEDC’s impact map inaccurately attributed jobs to Sherman Park that were created in other areas such as western Waukesha County. Hogan said in his response: “When the physical address data cannot be precisely plotted, such as when a P.O. Box is provided, the system generates an approximate location. That is what happened with the companies identified by Citizen Action.” This statement constitutes an admission that WEDC does not even have accurate records of where its tax credits, loans, and grants are supposedly creating jobs. In one case the jobs were created 25 miles to the west in Harland. The response suggests that this was only a problem with an impact map on the website, but in fact WEDC’s written profile of what jobs were supposedly created in Assembly District 18 contains the same errors.

The Sherman Park neighborhood and other communities in Milwaukee’s urban core have borne the brunt of the outsourcing and deindustrialization that has taken place since the 1970s. WEDC actually claims to have created more jobs in up scale Waukesha County than in Milwaukee County, despite the much greater need for expanded opportunity.

WEDC’s inability to track the locations of the jobs it claims to create is a symptom of a bankrupt economic strategy. It is clear that Sherman Park and other economically devastated areas like it have been abandoned by Governor Walker’s failed economic policies. Now that the dust has settled in Sherman Park, we need public interventions at the scale necessary to truly guarantee full opportunity for everyone in our great state.