Reorganizing Department of Commerce Top Priority for Wisconsin Candidates

Both candidates for Wisconsin governor want to reorganize and refocus the state's agency for job creation. Tom Barrett (D) has proposed moving the Department of Commerce's economic development staff into a new Office of Job Creation headed by a director who would report directly to the governor. Scott Walker (R) would hire an experienced economic development professional to head up a newly consolidated agency that replaces the department. Uncertainty regarding the state's ongoing commitment to stem cell research also has become a focal point of the race with the two candidates on opposing sides of the issue. Throughout his term as governor, Jim Doyle, who is not seeking a third term, worked with the legislature to establish state incentives to promote and enhance the biotechnology industry and expand stem cell research. Media reports indicate Barrett supports embryonic stem cell research while Walker advocates adult stem cell research and would support a ban on embryonic stem cell research.

Tom Barrett (D)
Milwaukee Mayor and former Congressman Tom Barrett issued a comprehensive 67-page economic development plan to create jobs in Wisconsin that includes tax cuts for R&D expenditures, venture capital and angel investment, and creating a state venture capital fund called the Wisconsin Entrepreneurs Fund. This fund-of-funds model would commit up to $100 million in eight to ten venture capital funds over five years and raise at least $500 million, according to Barrett's campaign website. To encourage and commercialize R&D, Barrett would create Centers of Excellence at state universities similar to the five established centers created in New York. He also wants to create a Wisconsin Technology Transfer Corporation, similar to Maryland's Technology Transfer Fund, to enhance tech transfer from universities and federal labs to the private sector.

In an effort to reorganize state government's focus and capacity for economic development, Barrett would move the Department of Commerce's economic development staff and the office of Workforce Development into a new Governor's Office of Economic Development headed by a Jobs Director, who would report directly to the governor.

Barrett's jobs plan also includes policies to promote innovation in manufacturing, restore Wisconsin's traditional manufacturing process and make the state attractive to new and relocating businesses. His four-pronged approach includes doubling Wisconsin's R&D tax credit to 10 percent and focusing the Department of Commerce and the Wisconsin Manufacturing Extension Program resources on supporting small manufacturers in developing innovation products, specifically in the areas of renewable energy and energy efficiency. Barrett's plan also includes creating a lean manufacturing boot camp for small manufacturers and working with large manufacturers to identify suppliers who could be relocated to the state.

To enhance advanced manufacturing within the state, Barrett supports greater collaboration between the University of Wisconsin and state manufacturers. He supports manufacturing Centers of Excellence at selected campuses focusing on locally-relevant manufacturing sectors based on demand from the private sector. To help manufacturers incorporate more advanced technology into their systems, Barrett would create a 10 percent Advanced Technology Tax credit available to manufacturing firms that identify and invest in appropriate technology upgrades designed to increase productivity.

Scott Walker (R)
Scott Walker's economic plan for Wisconsin consists of an emergency jobs plan in which a special session would be called immediately to address private sector job creation, and a long-term jobs plan to create 250,000 new job by focusing on six areas to make the state more economically competitive. Walker is Milwaukee County executive and a former state legislator.

If elected governor, Walker's first act would be to declare an economic emergency and call a special session of the legislature to pass measures dealing with cutting taxes on small businesses and reforming the Department of Commerce among others. During the session, Walker would call for a tax cut up to 20 percent on businesses that employ 50 or fewer workers. His plan also calls for replacing the Department of Commerce with a new consolidated agency focused entirely on the promotion of commerce. Instead of a traditional cabinet secretary, Walker plans to hire an experienced economic development professional to serve as executive director. Existing economic development functions of state agencies, including the Department of Workforce Development, and state affiliated agencies, including the Wisconsin Housing and Economic Development Authority, would be consolidated within the new agency, according to Walker's campaign website.

Walker's strategy for creating 250,000 new jobs by 2015 is centered on six principles: lowering taxes, eliminating red tape, ending frivolous lawsuits, improving the education of tomorrow's workforce, making healthcare affordable, and investing in infrastructure.