cc
sixth year for this event, >> Jeff Mayers: This is the
for a sell out crowd. That's attributed to all of youw
of course and to the high profile guest speakers and the
organizers who help make this happen.
They are primarily the Wisconsin
Wisconsin Realtors Association Bankers Association, the
Chamber of Commerce. and the Greater Madison
special guest, allow me to Now before I introduce our
this year, the Wisconsin Bankers recognize our presenters for
And Kurt Bauer, the president, Association.
Wave, Kurt. is over [APPLAUSE]e right.
We also want to thank all the other sponsors.
In addition to the Greater
the Realtors Association, Madthe Boardman Law Firm,ce,
News/Talk 1310 WIBA,
American Family Insurance, WisBusiness.com,
Journal, the Capital Region Business
Wisconsin Business Development. RSM McG[APPLAUSE]&E and
Now you may already know this,
our first speaker was sworn in but just last week
In his inauguration speech, as Scott Walker proclaimedor.
once again that Wisconsin is open for business.
I think you're going to hear
while. that phrase every once in a
his plans to grow the state And he's heeconomy.ll us about
So welcome
Govern[APPLAUSE]alker.
Governor Scott Walker:
[APPLAUSE]
Thank you, Jeff,
It's good to be back here. for that introduction.
Terrace you might have saw, at Last time I was at Monona
Tonette and I on the front page least one dancing.apers had
I had to laugh, that night
state senator, sent me a text, Alberta Darling, my good friend
did you find time to learn how and she said, where in the world
I said, it was Monday nights at 8:30 on the way back from budget
briefings.
anything in. So you can squeeze just about
Bankers Association not only for And thank you to the Wisconsin
putting this on and all the other groups that are here
today, but thank you for Kurt and the team and the board's
leadership. We're pleased today, I know
we've got a wide representation of business interest, but
particularly from a banking standpoint, I'm proud to have
selected a great cabinet but
the Department of Financial Institutions and the Department
of Revenue, two outstanding secretaries who I think are
going to be a great asset to our
the state of Wisconsin. I appreciate your recognizingn
them as well. We know that when it comes to
financial institutions in this
about this before he came and sjoined our team, but if we'reg
going to help businesses grow in
truly show that Wisconsin is this state, if we're going to
important things is to have a healthy financial environment so
that our banks and other
small businesses, to our family farmers, to others who want to
expand in this state. And so we're going to be working
very hard through both DFI and
Revenue as well works hand-in-hand with our financial
institutions to make sure our state can grow.
Jeff alluded to this, I said it last Monday, many of you saw it
the night of election, but I had
podium, kind of like the one up here right now, and I said to my
staff in the days leading up to it, they said should we put a
brown bag plaque up there,
believe in Wisconsin again sign? should we put a Scott Walker
over as of November 2nd, we need I said, no, the election will be
message. to start sending a clear
make up a sign that you saw that So I literally asked them to
Wisconsin is open for business. Now that was a symbolic change
but starting last Monday, and you've seen it even today with
some of the hearings that are being held in the state assembly
and the state Senate, we're showing that that was more than
a symbolic change, that is a
the people and all the employers substantive change to show all
these days all the employers and in this state, and even more so
Wisconsin is indeed open for people in other states, that
And I want to talk to you about that because we've got some
great plans to get Wisconsin
It starts with our special working again.
continues in about a month as we session jobs plan, and it
next biennium and then we continue working on with our
friends and colleagues in the state assembly and the state
senate, with all of you across
message out. the state helping us get that
session, now couldn't be a When it comes to special
You look at what they're doing better time than ever.
what we're doing here in in Springfield in contrast to
better contrast. Madison, and there couldn't be a
They're talking about a 75% I meanincrease.out it.
At first I thought I was reading
when I saw that. "The Onion" the other day
a pretty bad increase. I thought a 7.5% would be
increase at a time when even in Thfacing tough, difficult5%
challenges we're trying to show that we're going the opposite
direction.
message, a slow but steady We're going to start sending a
tax burden. As times get better in terms of
this budget process we're going to be even more aggressive in
terms of changing the tax climate here in the state.
But right off the bat,
businesses, we're working with particularly for small
move forward a series of our allies in the legislature to
is lowering the tax burden on chsmall businesses, improvingch
adding an incentive so that as
and Springfield and other places we go to Rockford and Chicago
Wisconsin we're also going to have a tax incentive for them to
bring their corporate interest
and into the state of Wisconsin to put more people to work here.
We're talking about working with
a change that says that to those the legislature to put in place
are here as well as others employers looking to grow that
we're going to send a message cthat not just in this currentat
administration but into the future there's some degree of
protection against tax increases
requirement for future tax with the super-majority
steady keel on where taxes are increases so we can keep a
And we're looking to enhance our in this state.
program so we can attract even economic development tax credit
state. more businesses to grow in this
their name because the deal is A good example, I won't mention
significant employer, a good not done, but I had a
the state of Wisconsin come and midmeet with us yesterday.e in
She was so excited after the
inauguration last week. They've got a facility with
about 135,000 square feet.
out there that wants them to They've got a good customer base
more than double the size of grow, and so they're going to
They want to add another 200,000 their operations.
one they have right now. square feet facility next to the
sorts of challenges. And they're facing the same
going to be a partner with them and that long-term it's going to
be stable to do business here.
they're probably looking at a number of you here, they want to
have a good bank partner with them to help them finance the
deal along with the state and with their local community and
the bid that they're looking to have in place.
But that's part of the
So one of the things I mentioned excitement out there.
is that while there are lacertainly plenty of peoplen
and plenty of employers in this state hurting, and we by no mean
overlook that, but the reality
employers like the ones I met iwith yesterday who would likef
to add more jobs in the state.
consistent message that things They just needed a clear and
direction. were going in the right
election they were worried You see, up and before the
budget deficit that we faced, seeing over $3 billion.out the
They were worried about some of the regulations and standards
that were being imposed on them that it would be more difficult
to do business in this state. And instead, even in this past
week, they've seen it's just the
the right direction. contrary, that we're moving in
burden, particularly for small So we want to cut the tax
Secondly, today we introduce the businesses.
of this special session package, official legislation that's part
reforming the regulatory climate but it's about specifically
One of the things I hear here in the state of Wisconsin.
businesses, from many of you repeatedly from small
you in the financial industry know from many of your clients,
as much as the tax burden,
compliance with regulations and litigation costs in this state
that are having a devastating impact, particularly in our
small businesses. We're putting forth legislation
today, we've talked about but the actual draft comes out
today, that will change the administrative code process in
the state.
the country. We have one of the broadest in
We need to make sure it not only It needs to be reigned in.
the governor but the members of ethe legislature to say if theyf
pass laws, the administration should be administering those
laws. The bureaucracy shouldn't be
expanding beyond what those laws
Instead it should be honed in on fulfilling the legislative
intent of the statutes as they
legislative process. were defined through the
before anything gets through its And to make sure that happens,
to come to the governor's office final phase it's going to have
To me that's one of those insurers that you don't get
administrative rules that really
the elected branch, both in the hexecutive and the legislativeve
branch, the elected officials of this state ultimately
responsible to all of you to
A balance between protecting make sure there's a balance.
but also making sure we protect pthe economy and the people ofh
this state, and that's exactly
administrative code process whare going to be about.e
We also added another element that's maybe a little foreign
or at least has been
capitol for some time, we put in foreign in Madison and the
We actually believe there should place a cost benefit analysis.
is actually going to cost the private sector and whether that
outweighs whatever other public safety, public health interest
there is out there so that we're
have a vested interest for the only putting forward things that
state government. So we're making changes in the
tax burden, we're making changes
making changes, today there was ia hearing held on our proposed
changes in the litigation, the
state. lawsuit abuse burden in this
reform that says if somebody We want to pass aggressive tort
should be held liable for that. But there shouldn't be this
situation where our small businesses across this state
under a position where they're
against frivolous lawsuits. If this legislation passes,
we're going to change, remember five years ago when the "Wall
Street Journal" ran an editorial
We're going to be the opposite. We're going to show that we got
the message, we woke up and it's
clear message that you can about time we start sending a
Wisconsin. afford to do business in
is one of the clearest ways we To me, passing this legislation
than just a sign board but a can send a message that's better
two-thirds of whom when surveyed message to employers, about
in a state has a significant said the litigation environment
they're going to place their impact as to whether or not
We want to be one of the states where we say through our
legislation, through our
our litigation environment that adWisconsin is indeed open forh
business. On top of that, a couple other
quick changes.
more affordable for workers and for family farmers and others to
afford access to quality
And so one of those options amongst others we'll pursue in
the budget, but one of those
package is to change, right now we're one of about four states
in the country that still taxes health savings accounts.
We need to change that. We need to get in line with
where nearly everybody else is
We need to say it's affordable at.
accounts. If you want to control your owns
destiny, if you want to do that for your employees and others
you work with, you should be
without the burden of the state income tax imposing an added
burden on you doing that. So we're going to change that as
well. And finally in this special
session package we're going to
as the Department of Commerce, repeal what's currently in place
Commerce, which now spends a and take the Department of
regulating commerce, and instead fair amount of its time
Wisconsin Economic Development transform that into the
sole purpose is to promote Corporation, an entity whose
of Wisconsin. We're going to do that in a
public/private partnership that still has accountability to the
legislature and to the governor and still has accountability to
the taxpayers of this state but is nimble enough to act on
economic development interests
and years down the way after as they devolve and not months
We need to be more aggressive in it's happened.
interests right here in this pursuing economic development
those in from other states state as well as attracting
We do that, the first step is passing this legislation to
create the corporation in the budget will fully enact the
changes, and then you'll see as part of that one of the things
we're looking to do is take the regulatory elements that are
left in the Department of Commerce and put them into
what's now the Department of
We put a new secretary in place who's devoted to customer
service to actually working with
We're working with the the consumers of this state.
this state to make sure we've bugot an agency that actuallyof
responds to your needs and
the way of progress there as interests and doesn't stand in
make it solely focused to this well, but to take commerce and
on pushing the creation of more jobs in the private sector, notn
in the public sector but in the private sector, for the years to
come. That's an exciting agenda that
it's hard to believe just a weekend I was talking with
John Fund from the "Wall Street Journal" the other day and he
said, wow, how do you get that
Well we didn't start doing it last week, we started doing it
the day after the election. And many of you here have helped
us throughout the process and we
We're going to need your help to thank you.
The good news is our friends in the Assembly and the Senate are
eager to act on that. They're eager to move forward.
We've been talking with them
some tweaks and a few adjustments out there, but I
think if everything works out right we might even have the
majority, if not all the package
State of the State address by the time we give our
That would be a compelling time to send a clear message here and
to other parts of this country
Wisconsin is indeed open for and around the globe that
The other thing we need to do to business.
not only in the creation of jobs get Wisconsin working again is
the state government working in the private sector but to get
Because stability in our again.
forward as well. government will help us move
you just a little preview of And that's something, I'll give
on for the state budget and I'll some of the things we're working
afternoon. be working on it again this
a $3 billion deficit going into Wthe next two-year budgetr
starting July 1 of this year. Now that's a pretty formidable
obstacle. We talked about that in the
past. We're not going to use raids on
things like the transportation
fund. fuWe're certainly not going toon
rely on a federal stimulus
is not there nor do I think that's good prudent policy from
a fiscal standpoint.
on doing things So wthe old fashioned way.ward
We're going to adjust things
businesses and your homes. just like you do in your
but compassionate decisions about moving this state forward
not only to balance the current budget but to ensure that we
don't just keep kicking the can down in the future and pushing
those decisions off to future governors and future
legislatures. That's why we're facing the
trouble we face today.
Wisconsin but the vast majority of states across this country
are facing these same sorts of
In case you missed it yesterday, challenges.
well new again, I guess you Jerrywould say, governor.rnor,
He was governor back when I was in kindergarten in California.
Don't laugh you probably think
ago, right? thatBut he's back again.ears
Well Jerry Brown actually went
it yesterday, he ended up passing or proposing a budgete
that cuts spending in California
$12.5 billion. by $12.5 billion.
out of the University of California system out there.
Social services, other programs,
about every state employee in the state of California about a
10% net reduction in terms of take-home pay.
They're in trouble. They and Illinois are in a whole
different stratosphere when you look at their bond rating, when
you look at the chart and they're off on their own
category over there.
significant reductions. You look at New York state where
Andrew Cuomo, another guy whose father was governor when I was
in kindergarten I think, Mario
governor there. He's talking over a billion
dollar cut when it comes to Medicaid in that state.
In fact, Jason Helgerson, the former Wisconsin Medicaid
director, is now the leader of
New York as well. There are going to be governors
in nearly every state, over than
have the value of some natural maybe the Dakotas where they
balance their budget, but short of that we're going to be in the
same boat as everybody else.
going to punt it into the The differfuture. we're not
We're going to resolve it now so
coming back and facing the same sorts of challenge from the next
budget and the next budget and
That really means honing in on the next budget after that.
One you've already heard me talk three core areas.
This last month when the about quite a bit.
session of legislature talked about voting on a package for
state employees, we asked them, and thankfully were successful
in the fact that they did not pass them, because we have to be
given flexibility when it comes to wage and benefit reform.
What I mention as an example is if every state employee were to
make a 5% contribution to the pension system.
Not exactly a radical concept.
average is out there for That's still less than what the
But a 5% contribution to the employees.
premium contribution for their retirement system and a 12%
Again, not exactly healthcare.
That would save us for the first an out of line proposal.
You compound that by four over six months of 2011 $154 million.
that I'm talking about of the next biennial budget, and yous
can see that quickly adds up
That's just state employees. to a lot of money.
were able to do the same sorts Imagine if local governments
town, school district employees, of things with county, city,
could have. That means, in turn, we also
have to partner with local
chunk, the majority portion of governments because a good
state standpoint is money that discretionary budgeting from the
particularly to school districts goes back to local government,
If we're going to make any but to others as well.
make we sure we do so in a way adjustments there we've got to
governments through age and benefit reforms there as well
so that in the end the product, whether it's classrooms, whether
it's plowing, whether it's
like that, the core services police service or other things
out of our local governments is something that can continue even
after the state budget is put in
And then finally, we've got to place as well.
and others and make sure that tathose elements of our budgetd
don't grow out of control.
that. NoI literally started theing
afternoon of November 3rd.
day and every weekend since Wtalking about that with thery
budget. Again, so many of you from
across this room and across this
throughout this budget process. We're going to be aggressive
about that. We're going to be very ambitious
in how much we push the edge of the envelope when it comes to
this budget because we have to. But the good news is when we do,
we set a steady standard for, I think not only years, but
decades to come that Wisconsin's
control, and we're not just bugoing to cut things, we'ren
looking to make things work better.
To me it's not just acceptable
by cutting things. enough to balance a budget just
agenda that pushes us forward Wand puts more people to workh
which long-term will bring more revenue into the state.
At the same time in the other areas where we make cuts that
reduce the size and scope of the
sure the things that we do we do government, we've got to make
that's our charge and that's my promise to you as part of ourd
administration. You can tell, and I spoke
quickly because they gave me
if you had a hard time digesting about 15 minutes, so I apologize
There's a lot to go through here that last of your dinner.
I get pretty excited about it. today.
about the future of this state. There's no doubt, don't confuse
that for one minute that I don't
employers in this state are recognizehurting.ople and
But I know that the basis for our recovery is in place.
Our plan for renewal is based on
but based on the fact that not just some theory out there
two years leading up to this touring this state for nearly
kind of will power out there election, I've seen that
what is failing us has not been anour people or our placest
in this state.
believe, for the last many years What has been failing us, I
expanse of our government. I can think of has been the
move that state forward, we start focusing on creating jobs
not in the government but within
going to get this state moving the private sector and we're
The last thing I want to ask you in the right direction.
moderating some questions is and then I'll open it up to Jeff
today, I've got one last request just this: remember nothing else
of what we talked about here, take the contrast with Illinois,
take the contrast with
there, take the agenda that Cwe've talked about that we'ret
moving forward to send a very clear message about this state
being open for business and putting people back to work
again and share it. I look around the room and I see
a lot of business leaders, I see
state and you might think okay a lot of civic leaders in this
My father was a pastor and I you're preaching to the choir.
a pastor, say, when asked why hedo you preach to the choir,dy,
he said, it's real simple,
I want the choir to the sing. I'm asking all of you to sing.
I'm asking you to go back to
you to go back to the rotary and your own communities, I'm asking
and anywhere else where you can spread that message ands
start singing about the changes even in this past week that are
happening here in the state of
going to have on employers like Wisyours and others that yout's
represent all across the state
friends that you have outside of and then spread it to other
That Wisconsin is indeed open ourfor business.ers.
When we do that I have no doubt we can get this state working
again both when it comes to jobs
government, and I look forward and when it comes to our state
and every day. to your help in doing it each
questions if you like. With that, Jeff, I can take some
Stay right there. Okay, we have time for a few
questions.
to have a microphone here. So Mike and few others are going
your hand and they'll come over If to you and you can ask ase
question of the governor. Don't be shy.
Raise your hand if you've got a question.
I don't see any out there.
what I've said, they're ready to >> They're just so happy with
That's it. go sing.
There's one over here. >> They're tuning up right now.
here. >> We goMike, over here.ht over
Right over here.
I'll repeat it for you too >> David, stand up.
All right, David Locke if you want.
Governor, welcome. of McFarland Bank.
My honor. >> I just read recently in one
of the periodicals that there's a bill idea being floated around
in the capitol to over time eliminate capital gains tax.
And Wisconsin, of course, having
the tax issue, I'd like your to compete with other states on
Yeah, I think it's a great comments on that.
I believe that Senator Randy idea.
repealing the changes that were made in the past budget.
I support that. Figuring out the right way and
the right method to do that.
look at other ways of doing that He's got the bill, we'll have to
And frankly long-term, I don't but I think that makes sense.
done right away in this budget know if this component could be
outright for investments made here in the state of Wisconsin.
Right, another question?
Governor, I'd like to also
election. congr>> Thank you.n the
I'd like to know your position on the voter ID.
I've read about it. I'd like to ask you elaborate on
it a little bit and the E-Verify
situation. for the illegal immigrants
Two different parts. >> Sure.
ID. OnI was the author of the biller
10 years ago when I was in the
I'd sign that presuming it gets legislaturto our desk.t surprise
And my guess would be it will come up relatively soon through
the legislature just because I
people that would like to have think there's a fair number of
elections of this year having an that in place by the spring
races as well as the State impact on a number of key local
The other part is on Supreme Court.
To me, I've said in the past I immigration.
law in terms of immigration and believe, short of that as well,
that in terms of enforcing
providing public assistance or immigration we shouldn't be
those individuals who are not here legally in the state of
Wisconsin.
support both of those, my focal point right off the bat has been
and will continue to be on jobs.
important. Those other issues are
spring session, but the reason I They'll come up as part of the
right off the bat on jobs was I think we need to send a clear
message on the economic issues
come along shortly there after of this state, the others will
and we'll be willing to act on early on in the spring session
My name is Matt Younkle. those as well.
entrepreneur here in Madison. I, in the last couple of months,
have actually added about 10
So I've been hiring, which is pgreat.
One of the things that's allowed
investor tax credits, and I know me to do that has been the angel
changes to the Department of you're looking to make some
department that I really like. Commerce, that's the part of the
respect to that and helping Wbring investment to start-up
companies?
Former Senator Ted Kanavas >> We're going to continue that.
and I supported him in the past is when he did that.at,
We'd like to take that a step further and not only continue
those credits as part of the new
but work, as you saw the other economic development corporation
investment board, potentially working with our partners with
WARF and with others, as well as
capital firms evolve in this helping private sector venture
A lot of the investment up until state and continue to hone in.
California and places like now has been focused largely in
We want to make sure more of Boston.
particularly here in the state that is in the Midwest and
build a fund that partners with othose other elements to make
sure businesses like yours can
but grow here in the state of continue tWisconsin. start up
It's a shy group. >> We covered all the bases.
You told them everything they wanted to hear.
I went so rapid-fire through
Don't forget to sing. We'll hand out hymnals
on the way out. Thanks, everybody.
[APPLAUSE]