(WisBusiness) FRI News Summary — 9 Jan. 2009

From WisBusiness.com …

— A number of Wisconsin investment and economic development groups are joining forces to push for changes to the state’s investment tax credit law for high-tech startups.

Competitive Wisconsin’s Bill McCoshen announced the formal launch of the statewide effort during a Wisconsin Innovation Network luncheon Thursday in Brookfield on ways to improve the tax credit program.

The group, called the Wisconsin Growth Coalition, was started recently with Competitive Wisconsin, the Wisconsin Technology Council, Thrive, and Wisconsin Venture Partners and has now added statewide partners such as Milwaukee’s M7, DaneVest, the Central Wisconsin Business Angels, the Wisconsin Biotechnology and Medical Device Association, BizStarts, New North and others, McCoshen said.

The group is seeking changes to Act 255, which provides angel and venture capital investors a 25 percent tax credit for investing in qualified early stage companies in the fields of advanced manufacturing, biotechnology and information technology.

Changes called for during the luncheon included increasing the annual statewide cap for the credit from $11.5 million to $50 million, increasing the amount individual companies can access in credit-eligible dollars from $4 million to $8 million, removing sub-caps on investing entities, making credits for investment groups transferable and other changes.

McCoshen said after the luncheon that primary purpose of the group is to focus, at least initially, on the Act 255 changes.

“The primary purpose is to get this information to lawmakers,” McCoshen said, “to let them understand how important it is to create more of an entrepreneurial climate in Wisconsin to grow jobs.”

See more on the new group: http://www.wisbusiness.com/index.iml?Article=145163

— The Wisconsin Retirement System’s two primary trust funds ended 2008 with sharp declines in returns, which will likely lead to the first-ever cut for WRS retirement accounts, according to a preliminary analysis by the State of Wisconsin Investment Board.

The Core Fund, the larger of the two WRS funds, had a return of minus 26.2 percent to end the year at $57.8 billion, while the Variable Fund declined to $4 billion after a return of minus 39 percent.

SWIB said the “worst year for financial markets since the 1930s” sparked the decline, but maintained that the Core Fund performed just behind Lipper Index of Balanced Mutual Funds while outperforming the S&P 500 and numerous international markets.

The declines are estimated to lead to a 3 percent to 3.5 percent rate for current state employee accounts, and a minus 2.5 to minus 3 percent annuity adjustment for WRS retirees. SWIB spokeswoman Vicki Hearing said the Department of Employee Trust Funds is providing an estimate to retirees because WRS members should be prepared for the downturn in retirement check amounts.

“It is the first time ever that their pension checks have gone down in the Core portion,” Hearing said.

The department is scheduled to finalize the rate and annuity adjustments in March.

See the SWIB statement: http://www.wispolitics.com/index.iml?Article=145113

— The Wisconsin Merchants Federation, the trade association for retailers founded in 1960, dissolved as of Jan. 1.

Mary Kaja, vice president of operations for the association, said the move was due to “economic changes.” She said she didn’t know where the group’s members — which used to include some of the biggest chains in the state — would go for lobbying needs.

Kaja will continue in her role as executive director of the Association of Wisconsin Lobbyists.

WMF’s president and CEO, Chris Tackett, retired last month after 35 years.

Madison insiders have speculated about the future of WMF over the past year as talk of financial troubles at the association circulated and a competitor emerged — the Wisconsin Retail Council. That group was headed by former WMF senior VP David Storey and former Assembly Majority Leader Mickey Foti.

The Retail Council has now merged with Hanson Service Corp. and Schwartzer Management Group to create Capitol Management.

Storey said he hadn’t targeted WMF’s membership.

“But because of the time I spent there, I have connections and relationships with those guys and, sure, we would take them if they’re looking for a new home,” he said.

— A cold start to the winter pushed the typical residential customer’s natural gas heating bill up about 17% for December 2008 as compared to normal, according to Wisconsin Public Service.

See the WPS release: http://www.integrysgroup.com/news/view_article.cfm?reckey=01710

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