IL fiscal crisis (Milwaukee, Madison, Oshkosh: universities, salary, sales tax)

[Drewjdeg]

Originally Posted by Milwaukee City

There is not a economist in American that thinks Chicago or IL is in better shape than Wisconsin's economy. I am guessing not to many people in the Wisconsin forum read the small business times, the business journal or even Industry Today or Manufacturing.net much less any other financial/industry news source.



Wisconsin is at statistical full employment, anyone who wants a job has one, there is a massive worker shortage. All you need to do is drive around the New Berlin, Franklin, Meno Falls, Germantown industrial parks and see all the help wanted signs. There have been countless jobs and plants moving across the border from IL into Wisconsin for favorable tax treatment or "countless give-a-ways" as one other poster mentioned.

This is more a function of an aging population and stagnant growth than it is new job creation. University graduates are not clamoring to take a low-paid non-union manufacturing job in Germantown. I can empirically back this up.

Report: Milwaukee ranks among last in nation for millennial population growth

https://www.biztimes.com/2018/ideas/...lation-growth/

Furthermore, though Wisconsin is at full employment - I'd argue that the state relies dangerously on legacy industries. Kimberly Clarke just cut 5500 jobs, what will replace the paper mills? The Wisconsin economy needs to become more dynamic, and I don't see it happening except for in Dane County.

Originally Posted by Milwaukee City

Regulation is another job killer and not always measured easily, this another way IL makes it hard for business to succeed. Time to get things passed government regulation forces businesses to look elsewhere.

This is somewhat true. Regulations improve quality of life - and that can attract workers and economic growth. Though - it can also reduce competitiveness if not well structured.

[Drewjdeg]

Originally Posted by DougStark

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Please tell me you are joking: in what way is Chicagoland in better shape than WI? Don't you know the metro population is actually decreasing? I think the only major metro to do so.

Not only that, but Chicago city property taxes may have to be quadrupled in the future to handle the billions of pension debt. I guess you don't read much.

The reality is much more nuanced.

Chicago has ranked 1st in the nation for corporate relocation and investment for 5 straight years.

https://chicago.suntimes.com/news/ch...cation-target/

The new Lincoln Yards development on the Chicago's north side will create plenty more jobs than Foxconn - and Rauner didn't have to pay 4 billion in incentives like Walker.

https://chicago.curbed.com/2018/7/19...ng-bay-details

I think Democrats in Illinois are generally inept, but Chicago is not exactly going up in flames anytime soon.

[Empidonax]

Originally Posted by Milwaukee City

There is not a economist in American that thinks Chicago or IL is in better shape than Wisconsin's economy. I am guessing not to many people in the Wisconsin forum read the small business times, the business journal or even Industry Today or Manufacturing.net much less any other financial/industry news source.



Wisconsin is at statistical full employment, anyone who wants a job has one, there is a massive worker shortage. All you need to do is drive around the New Berlin, Franklin, Meno Falls, Germantown industrial parks and see all the help wanted signs. There have been countless jobs and plants moving across the border from IL into Wisconsin for favorable tax treatment or "countless give-a-ways" as one other poster mentioned.

The state's unemployment rate has returned to pre-recession (and pre-Walker) levels (conservatives credit Walker for this; liberals credit Obama), but unemployment continues to be a problem in the poorest urban neighborhoods, and underemployment (quality of jobs) continues to be a problem in many parts of the state. (Isn't that why so many people in certain parts of Wisconsin voted for Trump?)

It's refreshing to know that so many places in the suburbs seek workers (and I've seen a few such signs in Bay View), but it would be great to connect those jobs with disadvantaged city dwellers (and disadvantaged rural folks) somehow. The disconnect signals a lot of lost opportunities for the state.

Regulation is another job killer and not always measured easily, this another way IL makes it hard for business to succeed. Time to get things passed government regulation forces businesses to look elsewhere.


"wetlands" might be the biggest boogeyman to discourage businesses from expanding even when the swamp is on their own land even in Walker's admin the dnr won't sign off on filling in any land that is remotely swampy forcing then said business to move since they are not allowed to expand even on their own land.

To me, it's a matter of balance. There's plenty of space all around the state, and in blighted parts of the cities, for business expansion, but we need to be really careful about developing ecologically sensitive areas. Wisconsin's reputation as a haven for nature tourism is at stake, and there are important effects for everyone in preserving the state's natural beauty and ecosystems. I'm actually a volunteer monitor of animal populations in the state, and numbers for many flora and fauna species have declined over the past generation. I know that most people don't see these changes in their everyday lives, and when it comes to getting food on the table, most people don't really care, but the quality of life in our state (and everywhere) really is interconnected with the ability of nature to flourish. There has to be a balanced way to let businesses expand without sacrificing the most sensitive ecological areas of the state.

[DougStark]

FYI. I read an article today listing state rankings for each state's public pensions/percent funded (2014 article.) Not surprisingly, IL was dead last, numerical rank 50. But WI was second best in nation at #2. South Dakota was winner at #1. The biggest surprise to me was Kentucky--very bad (can't remember rank.)

[damba]

Originally Posted by DougStark

FYI. I read an article today listing state rankings for each state's public pensions/percent funded (2014 article.) Not surprisingly, IL was dead last, numerical rank 50. But WI was second best in nation at #2. South Dakota was winner at #1. The biggest surprise to me was Kentucky--very bad (can't remember rank.)

Luckily, public pension funds do not always give the entire economic picture.

[Milwaukee City]

States labor force, total employment reach record highs in June - The Courier: Local




"Other indicators of the state of Wisconsin's economy include initial UI claims ended 2017 at their lowest level in the last 30 years; continuing unemployment claims ended 2017 at their lowest level since 1973; Moody's investor Service upgraded the state's credit rating, nothing that "the stable outlook reflects the expectation that the state will experience moderate economic growth and will continue its prudent fiscal management practices."

[Empidonax]

Originally Posted by Milwaukee City

States labor force, total employment reach record highs in June - The Courier: Local




"Other indicators of the state of Wisconsin's economy include initial UI claims ended 2017 at their lowest level in the last 30 years; continuing unemployment claims ended 2017 at their lowest level since 1973; Moody's investor Service upgraded the state's credit rating, nothing that "the stable outlook reflects the expectation that the state will experience moderate economic growth and will continue its prudent fiscal management practices."

The trends in Wisconsin generally mirror trends nationwide.

https://data.bls.gov/timeseries/LNS14000000

Thanks, Obama!

[explorearkansas]

I have lived in Illinois 56 years of my life. Politically and economically, it is an absolute train wreck The population has been declining for years and Springfield's answer to the resulting tax decline is to raise taxes so they can keep the Madigan /Cullerton bloated Bureaucracy alive for a bit longer. I expect Illinois will raise the income tax in another 1.5 years and the rate of home and business owner departure will increase (duh!). The ignored pension issue will bankrupt the State.

[Empidonax]

In has been reported in local Milwaukee metro media that significant numbers of retirees and empty-nesters from Chicagoland have taken up residence in Milwaukee. Supposedly, this has helped a bit with the condo boom in the city.

I've also been made aware that UW-Milwaukee has been aggressively recruiting students from Illinois, as the public universities there were in budget limbo for a while and continue to exist on the edge.

[brrabbit]

Originally Posted by Empidonax

I've also been made aware that UW-Milwaukee has been aggressively recruiting students from Illinois, as the public universities there were in budget limbo for a while and continue to exist on the edge.

And I've read that Walker is killing universities here in WI.