Wisconsin Counties Association: Job creation and economic development bill passes Senate unanimously

Contact: Mark D. O’Connell

WCA Executive Director

866.404.2700

SB 399 Gives Business Access to Affordable Financing

A bill aimed at creating jobs and economic development opportunities in Wisconsin unanimously passed the Wisconsin Senate on Thursday, March 4, 2010 and will now move on to the Assembly for action.

The bill, Senate Bill 399, authored by Senator Pat Kreitlow and Representative Donna Seidel, passed the Senate on a 32-0 roll call vote.

“The overwhelming, unanimous support of the Senate demonstrates their commitment to getting people back to work in Wisconsin,” said Wisconsin Counties Association (WCA) Executive Director Mark D. O’Connell. “We look forward to this important bill going to the Assembly and ultimately to Governor Doyle’s desk so businesses right here in our state – businesses that are ready to grow once they are able to secure affordable financing, can create the necessary jobs to propel our economy and Wisconsin into the future.”

O’Connell continued, “In his 2010 State of the State address, Governor Doyle outlined in detail his desire to help Wisconsin get back to work. His pledge to do whatever he can to help create jobs and employment is just what is needed and we are thrilled to see this legislation move closer to helping him accomplish this goal.”

SB 399 authorizes the creation of a joint powers authority, or commission, which can act at the request of Wisconsin local governments to issue conduit bonds for private entities engaged in public benefit projects through the financing process – or refer them to WHEDA, WHEFA, or the state Department of Commerce – saving individual local governments the financial burden of directly employing the necessary experts.

This legislation will provide access to low-cost capital for projects that create jobs– access which has been difficult at best with frozen credit markets.

Under current law, Wisconsin local governments may issue federally tax-exempt municipal bonds for public purposes and conduit bonds for private projects that serve a public benefit. Additionally, unique financing opportunities have recently been made available for the use of these development tools through $3.8 billion in Midwest Disaster Area (MDA) Bonds and $238 million in Recovery Zone Facility Bonds.

However, these financing opportunities have a time limit that require local governments to act quickly in order to promote needed development in their communities. Unlike traditional tax-exempt bond programs, the MDA and Recovery Zone allocations were granted directly to local governments. Therefore, local officials need a central mechanism to effectively use these unique programs – a mechanism that currently does not exist.

“We are grateful to the Senate, as well as to Senator Kreitlow and Representative Seidel, for their leadership in moving this critical piece of jobs legislation forward,” said O’Connell. “Now is the time to embrace every economic development tool available to advance Wisconsin and return our economy to its once strong position.”