At the end of July, Gov. Scott Walker made a startling claim: of the 18,000 net new private sector jobs created in the nation in June, more than 9,000 of them were in Wisconsin. The state GOP bragged in a press release that “over 50 percent of U.S. job growth in June came” from Wisconsin.
It would have been an impressive figure — if it were true, but, as many quickly pointed out, the federal Bureau of Labor Statistics uses different methods to estimate state and national employment figures, so the state totals don’t add up to the federal total. Other states such as Texas, California and even Minnesota added many more new private sector jobs than Wisconsin did in June. The Governor soon had to back off his claim, but not before it had been repeated widely in the news media.
The hoopla over the fuzzy math did serve to cover over the real news: the unemployment rate in Wisconsin actually increased in June, from 7.4 precent to 7.6 percent. Many of the new jobs the state added were low-paying, seasonal jobs. Workers in other sectors continue to lose their jobs, and those seeking good full time jobs with benefits are still having a desperately hard time.
The rise in the unemployment rate wasn’t the only bad economic news. Wisconsin saw a steep drop in venture capital investing in the second quarter of this year – down to $43 million from $98 million a year ago, according to a report by Moneytree. This happened even while the nation as a whole saw the biggest increase in venture funding in three years. Venture funding is the lifeblood of economic growth and expansion; this news won’t help the private sector create jobs anytime soon.
Gov. Walker came to office saying that “Wisconsin is open for business,” and promising to create 250,000 new jobs during his first term. But given the lack of real follow-through on that promise, it’s not surprising that Wisconsin’s economy continues to be sluggish.
Many of the bills rushed through in the special “jobs session” had little to do with creating jobs. One provision actually changes the standards for evidence in court cases, making harder for district attorneys to prosecute criminal cases. Walker’s regulatory reform proposal allows the governor to block administrative rules from coming to the Legislature for approval, enabling lobbyists and special interests to influence or kill regulations without the public knowing anything about their involvement. Other proposals were little more than massive tax loopholes for big corporations with no assurance they will create any new jobs.
Gov. Walker’s push to end workers rights threw the state into chaos and stifled progress on job creation efforts in the Legislature. His budget dealt crippling cuts to the state’s tech colleges and universities, widely known to be a key economic engine for Wisconsin. He abolished the Department of Commerce and transferred $161.8 million to the new Wisconsin Economic Development Corporation, which has still not produced an operational plan for how it intends to use that money.
Even when Republican leaders had the chance to make a real difference in job creation, they fell down on the job. Their bill to promote millions in new venture capital investments came apart when critics complained about provisions that would actually hurt Wisconsin businesses and give millions in tax breaks to out-of-state insurance companies.
I and my Democratic colleagues have introduced a package of bills that would promote new investment in Wisconsin businesses, build the state’s agricultural sector, encourage investment in rural areas, and foster new research and innovation. These proposals would also provide manufacturers with what they say they most need to expand — a highly skilled labor force — by helping the unemployed develop the skills Wisconsin industry needs. These bills have languished in committee for months, with no sign that Republican leaders will ever hold hearings on them.
It’s little surprise, then, that Wisconsin’s economy continues to struggle. If Gov. Walker is serious about keeping his job creation promises, it’s time for him to change his focus from power grabs and special-interest giveaways to programs with a track record of success. Fuzzy math and misleading statements won’t put the people of Wisconsin back to work.
Sen. Julie Lassa, D-Stevens Point, the ranking member of the Senate Committee on Economic Development and Veterans Affairs, represents our area in the state Senate.
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