(WisBusiness) WED News Summary — 11 Feb. 2009

From WisBusiness.com …

— The Democrat-controlled state Senate — on a party-line vote — has OK’d an increase in the state minimum wage from $6.50 an hour to $7.60 per hour.

The new rate would be implemented in June if passed by the Assembly and signed by the governor.

The bill also would index future minimum wage increases to the rate of inflation.

The bill was amended to push the start of the indexing back to September rather than June after some employers from programs like summer camps said that the increase would doom their budgets.

Republicans in the Senate said Democrats were starting off the session on the wrong foot as the state struggles with a faltering economy and that the wage increase would force businesses to cut employment.

Gov. Jim Doyle was guarded when asked if he would sign the bill, saying he supports raising the minimum wage. But he’ll have to see what bill comes to his desk.

“I have always believed we should have a statewide minimum wage,” he added.

— The state Senate has unanimously OK’d Dick Leinenkugel as Doyle’s Commerce secretary after Senate Minority Leader Scott Fitzgerald withdrew a motion to send the appointment back to committee.

The Juneau Republican said he wanted to hear from Leinenkugel about plans to transfer the state-funded portion of Forward Wisconsin and move it Commerce. The public-private organization has been working to recruit businesses to Wisconsin since 1984.

He dropped it after the Senate returned and Fitzgerald said he had received assurances from Leinenkugel’s staff that the agency would meet with Republican senators to discuss the changes.

— Times are tough for the ethanol industry all over the country, including the nine producers here in the Badger State. Josh Morby, executive director of the Wisconsin Bio Industry Alliance, says very few, if any, of the state’s ethanol plants are now making money.

And late last month, Renew Energy, the state’s largest ethanol producer and the operator of a plant in Jefferson, announced it would file for Chapter 11 bankruptcy.

The Renew board chairman, Paul Olsen, blamed lower revenues, and a bank’s refusal to renew its operating loan. But he said the company will keep making ethanol, and will continue its dry-milling corn operation.

“The future of the ethanol industry is of concern for all of us who are involved in it,” Morby mused.

He said the decline in the price of gasoline has hurt ethanol producers.

“It’s tough for the ethanol industry to compete with its No. 1 customers, which are big oil companies,” Morby said. “Certainly other economic conditions around the country have contributed to the struggles ethanol producers are facing.”

Read more and listen to a WisBusiness interview with Morby: http://www.wisbusiness.com/index.iml?Article=148712

— Centrose, a Madison-based drug discovery company, announced that it has raised additional funding that will drive its lead drug program closer to the patient-testing phase. To date, the amount in this latest round of financing is in excess of $2 million and comes from out-of-state investors.

See the Centrose release: http://www.wisbusiness.com/1008/090211centrose.pdf

— Wisconsin Public Service Corp.has filed a request with the Public Service Commission of Wisconsin to make a refund of almost $5 million to Wisconsin electric retail customers.

The refund, which is due to lower fuel and purchased power costs in the second half of 2008, will be based on actual use and would amount to about $3.36 for the typical residential customer.

**********************************

REGISTER TODAY FOR EARLY DISCOUNT: FOCUS ON MIDWEST ENERGY CONFERENCE II Feb. 23, 2009 at Monona Terrace in Madison

Conference includes: U.S. Rep. Baldwin; Obama environmental adviser Learner; Gary Mar, Alberta’s official representative to the United States; and David K. Owens, executive vice president of business operations at the Edison Electric Institute. For more information, see a recent press release: http://www.wispolitics.com/index.iml?Article=147100

For more information or to register, contact Jim Greer at 608-237-6296 or greer@wispolitics.com.

****************************************
THANKS TO OUR WISBUSINESS SPONSORS

• University of Wisconsin-Milwaukee
• Madison Gas & Electric
• University Research Park
• Wisconsin Technology Council

****************************************