%
%PRESENTATION OF ""HERE AND NOW"
%IS MADE POSSIBLE BY THE ANIMAL
%DENTAL CENTER OF MILWAUKEE AND
%OSHKOSH, A VETERINARY
%SPECIALISTS WORKING WITH PET
%OWNERS AND FAMILY VETERINARIANS
%THROUGHOUT WISCONSIN, PROVIDING
%CARE FOR ORAL DISEASE AND DENTAL
%PROBLEMS FOR SMALL COMPANION
%ANIMALS.
%ADDITIONAL SUPPORT FOR ""H&N" IS
%PROVIDED BY THE L.E. PHILLIPS
%FAMILY FOUNDATION.
% >> YOU CAN READ IN THE PAPER,
%WATCH THE NEWS OR LISTEN TO THE
%RADIO.
%PUBLIC EDUCATION IN WISCONSIN IS
%IN JEOPARDY.
%>> STATE SCHOOL SUPERINTENDENT
%TONY EVERS SOUNDING THE SCHOOL
%FUNDING ALARM.
%I'M FREDERICA FREYBERG.
%TONIGHT ON ""HERE AND NOW," WE'LL
%HEAR ABOUT EVERS' PLAN TO CHANGE
%THE WAY WE PAY FOR SCHOOLS, AND
%HEAR FROM A SCHOOL FUNDING
%EXPERT ABOUT WHETHER OR NOT IT
%CAN WORK.
%LATER, ASIAN CARP ARE NOW KNOWN
%TO BE SWIMMING CLOSER TO LAKE
%MICHAGAN WATERS THAN EVER.
%WE'LL HAVE AN UPDATE FROM A UW
%BIOLOGIST IN SHEBOYGAN.
%THE DIRECTOR OF THE WISCONSIN
%LAB THAT WILL BE TESTING SHRIMP
%AND OTHER SEAFOOD FROM OIL
%TAINTED GULF OF MEXICO WATERS IS
%HERE.
%AND WE'LL TACKLE THE TOPIC OF
%MILK MONOPOLIES IN DAIRYLAND.
%BUT FIRST, WHAT'S WRONG WITH
%WISCONSIN PUBLIC SCHOOLS?
%NOTHING THAT $900 MILLION WON'T
%HELP, SAYS STATE SCHOOL CHIEF
%TONY EVERS.
%WE'LL LEARN WHERE THAT $900
%MILLION COMES FROM IN A MOMENT,
%BUT FIRST THESE COMMENTS FROM
%THE SUPER'S THURSDAY MORNING
%PRESS CONFERENCE.
% >> OUR SCHOOLS FINANCE SYSTEM IS
%BROKEN AND WE MUST CREATE ONE
%THAT'S FAIR, SUSTAINABLE AND
%TRANSPARENT AND THAT SUPPORTS
%KIDS.
%WE NEED A BIPARTISAN SYSTEM TO
%CREATE A FAIR AND SUSTAINABLE
%SYSTEM THAT PROVIDES PREDICTABLE
%INVESTMENTS, BE EVEN IN THE MOST
%DIFFICULT ECONOMIC TIMES AS NOW.
%>> EVERS MONEY PLAN IS BASED ON
%TAKING WHAT'S KNOWN AS THE
%SCHOOL LEVY TAX CREDIT, A SUM OF
%ABOUT $900 MILLION, AND PUTTING
%IT ALL INTO GENERAL SCHOOL AIDS.
%TAX CREDITS, SCHOOL AIDS,
%ENROLLMENTS, REVENUE CAPS.
%YOU NEED TO BE A COLLEGE
%PROFESSOR TO PUT THEM ALL
%TOGETHER.
%WE HAVE ONE.
%PROFESSOR ANDREW RESCHOVSKY
%TEACHES APPLIED ECONOMICS AT THE
%UW LA FOLLETTE INSTITUTE OF
%PUBLIC AFFAIRS.
%THANK YOU FOR JOINING US.
% >> THANK YOU.
% >> EYED LIKE TO ASK FIRST, IF
%YOU PUT $900 MILLION INTO
%FUNDING SCHOOLS, WHAT HAPPENS TO
%PROPERTY TAX RELIEF?
% >> IF ALL THE CREDITS, THE $900
%MILLION WENT INTO SCHOOL
%SPENDING AND WE DID AWAY WITH
%THE CREDITS, PROPERTY TAX OWNERS
%WOULD PAY HIGHER PROPERTY TAXES.
% >> YET, SUPERINTENDENT EVERS
%SAYS THAT IS NOT GOING TO
%HAPPEN.
% >> THE KEY IS THE EXISTENCE OF
%THE REVENUE LIMITS IN PLACE FOR
%ABOUT 15 YEARS AND LIMIT THE
%AMOUNT OF THE SUM OF STATE AID
%AND PROPERTY TAXES CAN INCREASE
%EACH YEAR.
%THIS YEAR, IT'S $200 PER
%STUDENT.
% >> THAT MEANS THAT SCHOOLS WON'T
%ACTUALLY BE SPENDING THE FULL
%$900 MILLION IN THE CLASSROOM?
% >> THAT'S EXACTLY RIGHT.
%MOST OF THAT AMOUNT WILL GO BACK
%TO LOCAL SCHOOL DISTRICTS IN THE
%FOR OF LOCAL PROPERTY TAX RATES,
%LOWER PROPERTY TAX RATES.
%SOME OF IT WILL FIND WAY INTO
%HIGHER SPENDING.
% >> WHAT DO YOU MAKE OF THE
%SUPERINTENDENT'S YOU KNOW, PLAN
%AND COMING OUT AND SAYING IT'S
%GOING TO CHANGE THE WAY WE DO
%BUSINESS, MORE HE CAN WITH
%ITABLE.
%MORE SUSTAINABLE.
%IS THIS DIN ENGINE US WITH?
% >> I DON'T THINK SO.
%ONE IMPORTANT FACT IS THAT WE
%HAVE THESE TWO CREDITS ADD UP TO
%ABOUT $900 MILLION.
%THAT'S A BIG PART OF OUR ANNUAL
%BUDGET.
%$13, $14 MILLION DOLLARS.
%THOSE ARE DISTRIBUTED IN A WAY
%THAT ISN'T VERIEST IN THE WAY
%THAT IT DOESN'T GO TO THOSE THAT
%NEED PROPERTY TAX RELIEF.
%AND WE COUNT THOSE AS SUPPORT
%FOR EDUCATION WHEN THEY'RE
%REALLY NOT SUPPORT FOR
%EDUCATION.
%THEY PROVIDE PROPERTY TAX
%RELIEF.
% >> LET ME ASK YOU THIS.
%YOU SAID IT DOESN'T GO TO THE
%PEOPLE THAT HAVE THE HIGHEST
%BURDEN.
%WHERE IS MOST OF THIS $900
%MILLION NOW IN THE LEFTY CREDIT
%GOING?
% >> IT IS DISTRIBUTED
%PROPORTIONALLY TO THE VALUE OF
%YOUR PROPERTY.
%IF YOU HAVE EXPENSIVE PROPERTY,
%YOU GET MORE MONEY.
%AND WE THINK OF, WHEN WE TEND TO
%THINK ABOUT PROPERTY TAX RELIEF,
%WE THINK ABOUT, YOU AND I,
%HOMEOWNERS, GETTING RELIEF.
%MY CALCULATIONS SHOW THAT ONLY
%ABOUT HALF OF THAT $900 MILLION
%FINDS ITS WAY BACK TO
%HOMEOWNERS.
%THE REST GOES TO ALL SORTS OF
%PROPERTY NONRESIDENCE, BUSINESS
%PROPERTY.
%AND AS OPPOSED TO HOMEOWNERS WHO
%REALLY NEED HELP.
% >> THEN THAT OTHER ISSUE AND I
%WANT TO MOVE TO OTHER THINGS,
%BUT IT WAS STUNNING TO LEARN,
%AND PERHAPS I'M NAIVE, BUT
%STUNNING TO LEARN THAT THIS $900
%MILLION IS COUNTED ON OUR BOOKS
%AS GOING TOWARD FUNDING THE
%SCHOOLS, BUT IT'S NOT.
%IT'S A TAX CREDIT.
% >> THAT'S RIGHT.
%A NUMBER OF YEARS AGO, THE
%LEGISLATURE MADE A STATEMENT
%THAT SAYS THIS CREDIT IS COUNTED
%AS STATE SUPPORT FOR EDUCATION,
%ALLOWING THEM TO SAY WE WERE IN
%THE PAST FUNDING TWO-THIRDS OF
%EDUCATION.
% >> IF WE GET RID OF THOSE
%CREDITS OR DO SOMETHING
%DIFFERENT, WHERE DOES PROPERTY
%TAX RELIEF FOR SCHOOLS COME IN?
% >> WELL, MY SUGGESTION WOULD BE
%TO TAKE SOME OF THAT MONEY AND
%PUT IT EXPLICITLY FOR PROPERTY
%TAX RELIEF BUT PROPERTY TAX
%RELIEF DIRECTED TO THOSE PEOPLE
%THAT PAY A LOT OF PROPERTY TAX
%RELATIVE TO THEIR ABILITY TO
%PAY, RELATIVE TO THEIR INCOME
%AND WE HAVE A PROM LIKE THAT
%CALLED THE HOMESTEAD CREDIT.
%IT'S ON THE BOOKS.
%IT NEEDS TO BE SUBSTANTIALLY
%EXPANDED.
% >> YOU SAY THERE'S A PIECE OF
%EVERS' PLAN THAT YOU LIKE,
%HAVING TO DO WITH HE CAN WITH
%ITABLE SPENDING IN SCHOOL
%DISTRICTSES AND SPENDING ON HIGH
%POVERTY, HIGH NEEDS STUDENTS.
% >> RIGHT.
%WE'RE ONE OF FEW STATES THAT
%PROVIDES NO EXTRA FUNDING FOR
%STUDENTS THAT COME FROM POOR
%FAMILIES.
%THERE'S AN IMMENSE AMOUNT.
%RESEARCH THAT SUGGESTS THAT IF
%YOU HAVE STANDARDS AS WE HAVE,
%NO CHILD LEFT BEHIND AND STATE
%STANDARDS ABOUT STUDENT
%PERFORMANCE, IT WILL TAKE MORE
%MONEY TOO GET STUDENTS UP TO
%CERTAIN STAN CARDS IF THEY DON'T
%HAVE THE ADVANTAGES THAT MIDDLE
%AND UPPER INCOME FAMILIES HAVE,
%COMPUTERS AT HOME AND SO FORTH.
%THOSE EXTRA RESOURCES FOR POOR
%FAMILIES ARE I THINK ESSENTIAL
%IF WE'RE GOING TO HAVE AN HE CAN
%WHICH TABLE SCHOOL FUNDING
%FORMULA.
% >> FOR THE FIRST TIME, EVERS
%PUTS INTO THE SCHOOL FUNDING
%FORMULA A MEASURE OF SCHOOL
%POVERTY THROUGH SOMETHING CALLED
%WEIGHTED PUPILS.
% >> ALL OF THESE POTS OF MONEY
%AND CREDITS AND FORMULAS AND
%CAPS, IS IT SO OVERCOMPLICATED
%AT THIS POINT THAT IT'S TIME TO
%SCRAP IT AND START OVER?
% >> THAT IS A VERY GOOD QUESTION
%AND I, MY PERSON VIEW IS YES.
%THAT WE WOULD DO BETTER FOR
%DESIGNING A SYSTEM THAT DOES
%WHAT IS FUNDAMENTAL AND MOST
%IMPORTANT, GETTING THE MONEY TO
%WHERE IT IS NEEDED.
%THAT SCHOOL DISBE TRIBUTES THAT
%DON'T HAVE MUCH PROPERTY WE,
%SCHOOL DISTRICTS THAT HAVE HIGH
%COSTS OF EDUCATING KIDS, PUTTING
%SMALL RURAL DISTRICTS THAT HAVE
%ECONOMIES OF SCALE AND KEEP
%PROPERTY TAX SEPARATE.
%NO REVENUE CAPS.
%PROVIDE ON A SEPARATE BASIS.
% >> SCRAPPING IT AND STARTING
%ANEW AND PROVIDING EDUCATION TO
%ALL OF THOSE THAT NEED IT IN AN
%HE CAN WHICH TABLE WAY DOES IT
%MEAN SPENDING MORE OF OUR MONEY?
% >> IT PROBABLY DOES MEAN
%SPENDING SOMEWHAT MORE ON DIRECT
%SCHOOL AID THAN WE'RE SPENDING
%NOW BUT IT ALSO MEANS, AND I
%THINK THIS IS REAL IMPORTANT,
%REALOE INDICATING THE MONEY
%WE'RE SPENDING NOW AND IF WE
%COUNT THE CREDITS AS PART OF
%STATE SUPPORT, THAT IS VERY
%INEFFICIENT USE OF MONEY.
%IF WE COULD COUNT SOME PART OF
%THAT $900 MILLION THAT IS NOT
%SPENT VERY EFFECTIVELY NOW AT
%SCHOOL SUPPORT, I THINK WE COULD
%IMPROVE THE FUNDING OF EDUCATION
%IMMENSELY.
% >> ALL RIGHT.
%THANK YOU VERY MUCH FOR TAKING
%US THROUGH THIS.
% >> THANK YOU.
%NOW TO SOME ENVIRONMENTAL NEWS.
%BAD NEWS FOR PEOPLE CONCERNED
%ABOUT THE ASIAN CARP THREAT TO
%LAKE MICHIGAN.
%THIS WEEK
%FISHERMEN IN WATERS SIX MILES
%FROM THE GREAT LAKE CAUGHT A
%NEARLY THREE-FOOT LONG ASIAN
%CARP.
%IT WAS THE FIRST ONE FOUND
%BEYOND THE ELECTRICAL BARRIERS
%DOWNSTREAM THAT ARE IN PLACE TO
%PREVENT THE NORTHWARD MIGRATION
%OF THE INVASIVE SPECIES.
%THE UW SEA GRANT
%BIOLOGIST WHO HAS BEEN A
%POINT-PERSON IN WISCONSIN AND IN
%ILLINOIS IS PHIL MOY WHO JOINS
%US NOW FROM SHEBOYGAN.
%>>FINDING A THREE-FOOT LONG
%ASIAN CARP IS A FAR CRY FROM
%CARP DNA.
%WHAT'S YOUR REACTION TO THE
%FIND?
% >> I AM NOT TOO SURPRISE
%DOLLARS.
%THE DNA IS EVIDENCE THAT THERE
%ARE FISH UP THERE AND THIS
%CONFIRMS THAT.
%WHAT DOES THE DISCOVERY MEAN
%ABOUT WHETHER THE ASIAN CARP HAS
%ESTABLISHED ABOVE THE BARRIER?
% >> I DON'T THINK THEY'RE
%ESTABLISHED.
%I THINK THE POPULATION IS, GIVEN
%THE LACK OF SUCCESS IN TERMS OF
%CAPTURE IN THE TRADITIONAL
%SAMPLING, THE NETTING AND THE
%ELECTROFISHING, ESSENTIALLY A 3
%MONTH EFFORT TO CATCH ONE FISH
%UP THERE SUGGESTS TO ME THE
%POPULATION IS LOW.
%I DO NOT THINK THEY'RE
%ESTABLISHED UP THERE.
%THESE ARE THE FRONTIER OF THE
%POPULATION AS IT MOVED UPSTREAM.
% >> SO A 3 FOOT LONG ASIAN CARP
%DOESN'T MEAN IT HAS BEEN IN THE
%WATER AND THERE ARE SIMILARLY
%LARGE FISH IN THE WATER
%NECESSARILY?
% >> THERE COULD BE.
%IT'S A MATTER OF WHEN IT MIGHT
%HAVE GOTTEN UP THERE, HOW LONG
%IT HAS BEEN UP THERE, A RESIDENT
%IN THOSE WATERS.
%BUT PROBABLY THAT AREA IS NOT
%VERY CONTUSIONIVE TO THEIR
%SPAWNING AND ESTABLISHING A
%POPULATION.
% >> SOME ARE RENEWING THE CALL
%SOME ARE RENEWING CALLS TO CLOSE
%THE SHIPPING LOCKS NEAR CHICAGO
%TO STOP THE CARP.
%HAS THAT TIME COME?
% >> NO, PROBABLY NOT.
%YOU HAVE TO EVALUATE THE
%POTENTIAL TO ESTABLISH IN THE
%GREAT LAKES AGAINST THE ECONOMIC
%CONSEQUENCES OF CLOSING THE
%LOCKS.
%WE NEED TO WORK TOWARD THE LOCK
%TERM SEPARATION, SOME CALL IT AN
%ECOLOGICAL SEPARATION.
%ADDRESSING THE SERVICES THE
%CANAL PROVIDES TO THE AREA.
%SO.
%RIGHT NOW, I DON'T THINK WE'RE
%AT THAT POINT.
% >> WHAT DOES THE ECOLOGICAL
%SEPARATION CONSIST OF?
% >> WELL, I GUESS WE DON'T REALLY
%KNOW AT THIS POINT.
%BUT IT WOULD BE SOME SORT OF
%PHYSICAL SEPARATION THAT
%SEPARATES THE GOOD LUCK WATER
%FROM THE CANAL WATER -- THE
%GREAT LAKES WATER FROM THE CANAL
%WATER.
%YOU HAVE TO MOVE CARGO AROUND
%THAT AND FIND A WAY TO CONVEY
%CHICAGO WASTE AND STORM WATER
%AWAY FROM THE DOWNTOWN AREA.
% >> I'VE SEEN THERE ARE CALLS FOR
%POISONING THE AREA.
%IS THAT SOMETHING THAT YOU WOULD
%SUGGEST?
% >> WELL, THAT SMALLER SCALE
%POISONING THAT TOOK PLACE LAST
%MONTH WAS AN EFFORT TO ASSESS
%THE POPULATION ABUNDANCE.
%IT WAS A RECOMMENDATION FROM THE
%MONITORING AND RAPID RESPONSE
%WORK GROUP, PART OF THE REGIONAL
%COORDINATION COMMITTEE.
%THEY FOUND NO ASIAN CARP IN THAT
%AREA.
%SOME LIMITED POISONING COULD BE
%DONE UP IN LAKE CALL YOU MET
%WHERE THIS FISH WAS FOUND TO
%ASSESS IT.
% >> IT DOESN'T SOUND LIKE WE
%SHOULD JUMP UP AND DOWN ABOUT
%THIS ALL VERY CONCERNED?
% >> WELL, GIVEN THE LOW NUMBERS
%OF FISH.
%NOW WE HAVE ONE FISH AFTER THREE
%MONTHS NETTING EFFORT.
%IF WE WERE COLLECTING HUNDREDS
%OF FISH, YEAH, IT WOULD BE TIME
%TO JUMP UP AND DOWN, BUT IT
%APPEARS THAT THE POPULATION IS
%STILL QUITE LOW SO IT'S A CAUSE
%FOR CONCERN, LET'S NOT GIVE UP
%THOUGH ON THE GREAT LAKES.
%THE BATTLE IS NOT OVER BUT I
%THINK WE NEED TO TAKE THIS AS A
%BATTLE CRY THAT WE NEED TO MOVE
%AHEAD ON THIS LONGER TERM
%SOLUTION THAN ELECTRIC BARRIERS
%AND OTHER BEHAVIORAL BARRIERS.
% >> PHIL MOY, THANKS SO MUCH.
% >> THANK YOU.
%>>MORE ENVIRONMENTAL NEWS.
%EVEN THOUGH WE'RE 1,000 MILES
%FROM THE GULF OF MEXICO,
%WISCONSIN WILL BE ONE OF FOUR
%SITES NATIONWIDE THAT WILL TEST
%THE SAFETY OF SHRIMP AND OTHER
%SEAFOOD FROM GULF WATERS, SEA
%LIFE THAT MAY --OR MAY NOT --
%SHOW SIGNS OF CONTAMINATION DUE
%TO THE OIL SPILL.
%STEVE SOBEK IS THE DIRECTOR OF
%THE STATE FOOD SAFETY LAB AND HE
%JOINS US NOW.
%>> WHAT TYPES OF SEAFOOD WILL
%WISCONSIN'S LAB BE TESTING?
% >> SHRIMP, OYSTERS, CRAB AND
%SOME FISH.
% >> DO YOU HAVE ANY IDEA LIKE HOW
%MUCH OF IT YOU'LL BE TESTING?
%A LITTLE SUPER BOWL CHAMP EL?
% >> RIGHT NOW, THERE'S A TIERED
%APPROACH THEY LOOK AT SEAFOOD
%FROM THE CLOSED FISHERIES TO SEE
%IF THERE IS LIKE A CHEMICAL
%CRUDE OIL TAINT.
%IF THEY DETERMINE THAT THAT
%SEAFOOD DOESN'T HAVE THAT,
%THEY'RE GOING TO SEND ABOUT 30
%SAMPLES A WEEK TO OUR LABORATORY
%TO DO CHEMICAL TESTING.
% >> AND DO YOU HAVE A LEVEL AT
%WHICH IT WOULD BE DETERMINED
%SAFE OR
%>> IS ANY LEVEL OF PETROLEUM
%CONTAMINIATION OF SEAFOOD SAFE
%TO EAT?
% >> THE STANDARDS ARE THE
%DETERMINATION OF WHETHER IT IS
%SAFE TO EAT WILL BE MADE AT THE
%FEDERAL LEVEL.
%WE'LL DO TESTING.
%REPORTING CONCENTRATIONS TO THE
%FEDERAL GOVERNMENT AND THEY MAKE
%THAT CALL AS TO WHETHER THEY CAN
%OPEN OR MAINTAIN CLOSURES.
% >> WHEN IS THIS TESTING SUPPOSED
%TO START?
% >> OUR LABORATORY JUST RECEIVED
%INSTRUMENTS TODAY.
%WE EXPECT MORE OVER THE NEXT
%WEEK OR TWO.
%WE WILL GEAR UP AND OUR
%EXPECTATION IS TO DO TESTING IN
%PROBABLY THE END OF JULY OR
%EARLY AUGUST.
%FLORIDA'S LABORATORY, SKID
%MARK'S AND ARIZONA'S
%LABORATORIES HAVE EQUIPMENT IN
%PLACE AND ARE GEARING UP TO DO
%TESTING AT THE END OF JUNE OR
%EARLY JULY.
% >> HAS NOOA SUGGESTED TO YOU OR
%YOUR LAB WHEN THESE FISHERIES
%MIGHT REON?
% >> NO.
%IT'S ALL PREDICATED ON HOW THE
%OIL MOVES, EVERYTHING GOING ON
%WITH THE SPILL AND WHEN IT IS
%CAPPED AND THE MOVEMENT AND
%DIRECTION OF THAT AND WHAT THE
%TESTING FINDS AND WHAT THE LABS
%FIND.
%LIKE EVERYTHING ELSE RELATED TO
%THIS SPILL, IT'S UP IN THE AIR
%AT THIS MOMENT.
%>> WHAT ABOUT SEAFOOD FROM
%AREAS JUST OUTSIDE THE AREAS
%CLOSED TO FISHING?
%SHOULD THERE BE CONCERNS ABOUT
%THAT?
% >> NOOA HAS IN PLACE BUFFER
%ZONES.
%SO WHEN WE SAY THE FISHERY, IT'S
%THE FISHERY AND SOME BUFFER ZONE
%OUTSIDE OF THAT.
%THEY DO TESTING OF THE WATER FOR
%PH AS WELL AS SEAFOOD.
%THEY HAVE AERIAL LOOKS AT THE
%GEOGRAPHIC AREAS TO SEE IF THERE
%ARE OIL SLICKS AND LOOK FOR
%SUBMERGED OIL PLUMES.
% >> WHAT DO YOU KNOW ABOUT THE
%OTHER LABS IN PROCESS WITH THIS?
%IS THERE SEAFOOD FROM THE GULF
%THAT HAS NOT PASSED THE TAINT
%TEST?
%IS THERE A HUGE AMOUNT OF THIS
%FISH --
% >> THAT WE DON'T REALLY KNOW AT
%OUR LEVEL YET.
%THEY'RE STILL KIND OF IN THE
%FORMULATION STAGE OF HOW THIS
%WILL ALL WORK OUT.
%THEY HAVE NOT SENT ANY SAMPLES
%PAST SENSORY TESTING THAT I'M
%AWARE OF.
% >> WHY WAS WISCONSIN'S LAB
%CHOSEN?
% >> WE'RE PART OF A EMERGENCY
%RESPONSE NETWORK AND WE'VE HAD A
%LONG HISTORY OF RESPONDING TO
%EVENTS AND BEING PART OF
%RECOVERY EVENTS.
%WE HAVE A HISTORY OF THAT AND
%BECAUSE WE'RE ALREADY PART OF
%THAT NETWORK AND RECEIVE GRANT
%FUNDS FOR THAT, WE STUCK OUR
%HAND UP AND SAID WE'D LIKE TO
%PARTICIPATE.
%WE HAD SOME EXPERIENCE WITH THE
%INSTRUMENTS THAT SOME OF THE
%LABORATORIES DID NOT HAVE.
%THEY THOUGHT WE'D BE A GOOD
%CHOICE.
% >> THANKS SO MUCH.
%GOOD LUCK WITH IT.
% >> THE RUSS DEPARTMENT OF
%JUSTICE AND AGRICULTURE HELD A
%DAY LONG WORKSHOP TO HEAR ABOUT
%COMPETITION IN THE DAIRY
%INDUSTRY.
%FEDERAL REGULATORS ARE MOVING ON
%INSURANCE FORCING ANTI-TRUST
%LAWS AS LARGE COMPANIES BOUGHT
%SMALLER COMPETITORS.
%MEANWHILE THEY COMPLAIN ABOUT
%FLAT PRICES.
%TOMORROWVILLE SEC HEARD FROM
%FARMERS LOUD AND CLEAR.
% >> I THINK THEY FEEL TWO THINGS.
%ONE, THEY DON'T FEEL THEY'RE
%GETTING A FAIR SHAKE OF THE
%OVERALL PIECE OF THE PIE AND
%SECONDLY AND PERHAPS AS
%IMPORTANTLY, THEY DON'T THINK
%THEY'RE CONTRIBUTION IS
%RECOGNIZED AND APPRECIATED BY
%THE CONSUMING PUBLIC AND I THINK
%THEY'RE RIGHT ABOUT THAT BECAUSE
%WE HAVE SO FEW FARMERS AS A
%PERCENTAGE OF OUR POPULATION AND
%BECAUSE WE ARE NOW SO FAR
%REMOVED FROM FAMILY MEMBERS WHO
%WERE ON THE FARM, THERE ARE
%GENERATIONS OF AMERICANS
%THINKING THAT FOOD COMES FROM A
%GROCERY STORE BECAUSE THEY GET A
%BARGAIN PRICE ON MILK OR BUTTER.
%THEY NEED TO BE THANKFUL TO THE
%FARMER.
%WE NEED TO ASK THE QUESTION
%WITHIN THE EXISTING RESOURCE, IS
%IT BEING FAIRLY AND RESOURCED.
% >> AMONG THE PANELISTS.
%>> AMONG THE PANELISTS AT THIS
%STAR-STUDDED DAIRY WORKSHOP IS
%UW MADISON PROFESSOR OF
%AGRICULTURAL ECONOMICS, BRIAN
%GOULD, PART OF A PANEL EXPLORING
%HOW CHANGES IN DAIRY FARM SIZES
%AFFECT BOTH FARMERS AND
%CONSUMERS.
%>> WE KNOW THAT DEAN FOODS IS
%THE SUBJECT OF A FEDERAL
%COMPLAINT FOR ITS ACQUISITION OF
%FOREMOST FARMS PLANTS,.INCLUDING
%TWO IN WISCONSIN.
%ONE OF THE ISSUES HERE WAS THAT
%THOSE COMPANIES WERE COMPETING
%FOR THE SCHOOL MILK MARKET IN
%WISCONSIN AND DEAN SOUGHT TO
%CAPTURE THAT MARKET.
%WHY IS THAT A BIG DEAL?
% >> ONE LITTLE CORRECTION.
%DEAN'S DID NOT ATTEMPT TO
%CAPTURE THAT MARKET DIRECTLY.
%IT MAY HAVE BEEN AN OUTCOME OF
%THEIR PURCHASE.
%BUT THE PROBLEM IS USUALLY, WITH
%SCHOOLS BUYING SCHOOL MILK,
%USUALLY JUST A FEW BIDDERS AND
%THE PROBLEM IS WHEN FOREMOST
%FARMS WHO DOES A LOT OF BUSINESS
%IN THE UP AND NORTHEAST
%WISCONSIN, IF THEY WERE
%PURCHASED BY DEAN, THERE WOULD
%BE FEWER SUPPLIERS AND
%ESSENTIALLY ONLY ONE IN A LOT OF
%SCHOOL DISTRICTS.
%THEREFORE, DEAN COULD DICTATE
%THE TERMS OF THOSE CONTRACTS
%WITH THOSE SCHOOLS.
% >> YOU'RE ON THIS PANEL LOOKING
%AT THE LARGER ISSUE OF
%CONSOLIDATION.
%>> WHAT EFFECT DOES MARKET
%CONSOLIDATION ON THE PART OF
%DAIRY PROCESSORS HAVE ON THE
%PRICE FARMERS GET FOR THEIR
%MILK?
% >> THINK ABOUT WHAT A DAIRY
%FARMER DOES.
%HE PRODUCES MILK, A PERISHABLE
%COMMODITY.
%UNLIKE CORN.
%THEY CAN WAIT UNTIL PRICE --
%THEY HAVE TO SELL PRODUCT
%IMMEDIATELY.
%WHEN A COULD-ON COLLECTS FROM A
%PATRON AND HAS TO GO TO A
%PROCESSOR, IF THEY'RE NOT OF
%EQUAL VISOR POWER, IF THEY HAVE
%A GREATER ABILITY TO BARGAIN, IT
%COULD MEAN LOWER PRICES.
%UNEQUAL BARGAINING POWER.
%
>> DO YOU THINK THAT'S HAPPENING
%NOW?
%FARMERS HAVE BEEN COMPLAINING
%FOR A WHILE NOW ABOUT THE FLAT
%PRICES FOR THEIR MILK.
% >> I THINK GIVEN THE UNIQUENESS
%OF THE DAIRY INDUSTRY, I DON'T
%THINK THAT IS THE CASE.
%MOST PEOPLE DON'T UNDERSTAND
%THAT THE MINIMUM PRICES FOR
%DAIRY FARM MILK ARE SET BY A
%FORMULA AND THAT'S THE PROBLEM.
%THERE'S SOME ISSUES WITH THE
%FORMULAS BEING USED AND
%PROCESSING PLANTS THAT ARE
%BUYING THAT MILK HAVE NO CHOICE
%IN TERMS OF THAT PRICE THEY HAVE
%TO HAVE.
%AT LEAST THE MINIMUM PRICE T
%THERE ARE PREMIUMS ABOVE THAT
%MINIMUM PRICE BUT IT IS SET BY
%FORMULA.
% >> I WANT TO GET TO THAT ISSUE,
%BUT I WANT TO ASK WHAT AFFECT
%THE CONSOLIDATION OF THIS MARKET
%MIGHT HAVE ON THE PRICE THAT
%CONSUMERS PAY.
% >> AGAIN, IF THE PROCESSOR IS
%VERY LARGE OR EVEN RELATIVE TO
%THE RETAILERS WHICH IS NOT THE
%CASE ANY MORE, GIVEN THE
%WAL-MARTS AND THE LARGER FIRMS,
%THEY COULD HAVE THE POTENTIAL
%AGAIN OF BEING ABLE TO BARGAIN
%AND PASS THAT BARGAIN, A LOWER
%PRICE FROM THE FARMER AND PASS
%ON A HIGHER PRICE TO THE RETAIL
%OUTLET'S.
% >> IS THAT KIND OF WHAT WE MAY
%SEE, THIS
%>> WHY THE DISSCONNECT BETWEEN
%LOW OR FLAT PRICES FOR THE
%FARMER AND HIGH PRICES AT THE
%GROCERY STORE?
% >> THERE'S SOME TRUTH TO THAT,
%BUT A LOT OF TRANSFORMATION OF A
%PRODUCT WHEN IT GETS TRANSFORMED
%FROM A RAW FARM MILK TO THE
%FINISHED PRODUCT, THERE'S A LOT
%OF VALUE ADDED.
%ALSO, MARKETING COSTS.
%NOT ALWAYS JUSTIFIED, THAT
%DISCONNECT BUT ISSUES OTHER THAN
%THE FARM LEVEL MILK PRICE F IT'S
%A THIRD OF THE TOTAL PRICE AND
%THAT PRICE GOES DOWN BY 25%,
%THAT DOES NOT MEAN THE RETAIL
%PRICE WILL GO DOWN BY THAT MUCH.
%THAT FARM MILK IS ONLY 38% OF
%THAT TOTAL COST.
%>> ANOTHER ISSUE BROUGHT UP IS
%THE WAY FEDERAL MILK PRICES ARE
%SET -- AT THE CHICAGO MERCANTILE
%EXCHANGE'S SPOT MARKET FOR
%CHEDDAR CHEESE.
%IT'S CALLED A THINLY TRADED
%MARKET THAT'S RIPE FOR
%MANIPULATION.
%HOW?
% >> WELL, THERE'S VERY KNEW
%ACTORS.
%A COUPLE OF THINGS GOING ON.
%VERY FEW ACTORS.
%AND THE INDUSTRY, THE CHEESE
%INDUSTRY LOOKS TO THAT MARKET TO
%SET THEIR WHOLESALE PRICES THAT
%THEY SELL TO THE WHOLESALERS.
%YOU HAVE A VERY MARKET WHERE
%ONLY ONE OR TWO PLAYERS ARE
%ACTIVE AND ONE OR TWO PERCENT OF
%THE TOTAL US SUPPLY OF CHEDDAR
%CHEESE IS TRADED ON THAT MARKET
%BUT IT HAS AN AFFECT ON ALL
%CHEESE PRODUCED IN THE U.S.
%THERE HAS BEEN A CASE, DECEMBER,
%2008, DAIRY FARMERS OF AMERICA
%AND THEIR OFFICERS FOUND IN
%VIOLATION OF COMMODITY FUTURE
%TRADING COMMISSION RULES THAT
%THEY MANIPULATED THAT MARKET
%BECAUSE THEY HAD AN OPPOSITE
%POSITION IN THE FUTURE MARKET.
%THAT HAS ACTUALLY OCCURRED.
%WE HAVE EVIDENCE.
%AGAIN, IT'S A PROBLEM THAT YOU
%HAVE FEW PLAYERS AFFECTING A
%MARKET WHERE A WHOLE INDUSTRY
%LOOKS TO THAT TO SET PRICES.
% >> DO YOU THINK THAT'S SOMETHING
%THE FEDERAL GOVERNMENT WILL
%REGULATE IN A DIFFERENT WAY
%THEREFORE?
% >> WE TRIED ONCE.
%THIS USED TO BE IN GREEN BAY.
%IT WAS MOVED IN 97 TO THE
%CHICAGO MERCANTILE EXCHANGE.
%AND WITH THE HYPOTHESIS BEING
%THAT IT WOULD BE MORE OPEN AND
%ACTIVE.
%THAT HAS NOT HAPPENED.
%I THINK WHAT IS GOING TO HAPPEN,
%IF I WAS TO HAVE A FORECAST WITH
%MY CRYSTAL BALL, I WOULD SAY
%THERE'S A DISTINCT POSSIBILITY
%WE MAY GET AWAY FROM THE MILK
%FORMULAS BASED ON WHOLESALE
%COMMODITY PRICES TO MORE OF A
%SURVEY BASED SYSTEM.
%INSTEAD OF WHOLESALE PIECES.
% >> ALL RIGHT.
%THANK YOU FOR YOUR EXPERTISE.
% >> THANK YOU.
%THAT'S OUR PROGRAM FOR THE LAST
%FRIDAY IN JUNE.
%NEXT WEEK, THE RETURN OF OUR
%AWARD-WINNING SINGING
%COMMENTATOR, PETER LEIDY.
%I'M FREDERICA FREYBERG.
%HAVE A GREAT WEEKEND.