Challenging economic times have resulted in a year-over-year loss of nearly 14,000 non-farm jobs throughout Wisconsin, based on numbers from the state Department of Workforce Development.
However, state government has not been idle in the face of this challenge, and the combined efforts of the nine state-level entities that share responsibility for economic development have done much to preserve existing jobs while aiding business start-ups and expansions.
A new report compiled by the Wisconsin Department of Commerce spells out the efforts of various state agencies charged with operating programs that provide financial and technical assistance to businesses, individuals, nonprofit organizations and local governments. The report identifies 152 programs or activities related to economic development that have “the primary purpose of encouraging the establishment and growth of businesses in the state, including the retention and creation of jobs.”
During fiscal year 2008, which ended in June, these programs executed 929 deals that provided some $267.2 million in financial incentives to existing businesses, entrepreneurs and other entities. According to an appendix to the report, these efforts were targeted to help state businesses retain 22,640 jobs and create some 7,860 jobs.
The projects ranged from milk volume production loans designed to boost agricultural jobs to industrial revenue bonds, technology bridge grants, minority business development grants, entrepreneurial training grants and a variety of assistance provided through UW System entities. While some of the actual financial awards were relatively small, such as $3,000 planning grants to several dairy farms interested in expanding, others were on the larger side, including multi-million dollar investments to help communities upgrade municipal infrastructure in support of plant expansions.
Money for the incentives came in the form of state and federal grants, loans, investor tax credits and bonding. Participating agencies included: Department of Commerce; UW System; Department of Agriculture, Trade and Consumer Protection; Department of Natural Resources; Wisconsin Housing and Economic Development Authority; Department of Tourism; Department of Transportation; Wisconsin Technical College System and Forward Wisconsin.
Administering these programs requires significant time and talent within the state agencies that often goes unheralded. Yet, as shown from just a few of the following highlights, the benefits to the state’s economy can be very real. Over the past year:
- Forward Wisconsin, a public-private organization charged with marketing and business recruitment activities for the state, organized and coordinated its largest marketing initiative ever at BIO 2008 in San Diego. Forward Wisconsin’s summary also noted two significant successful expansion efforts in Wisconsin from out-of-state businesses: Affiliated Foods Midwest, a $99 million project with 450 jobs; and Nature’s Path, a $5.5 million project with 159 jobs.
- The Wisconsin Department of Commerce, which authorizes industrial revenue bonding at favorable rates and administers a variety of other key grant and loan programs, took a lead role in hundreds of business expansion and retention projects over the year.
Among the largest industrial revenue bond-supported projects in individual communities was a $10 million project by Fairmount Minerals in Dunn County. Meanwhile, creation of a $3 million enterprise development zone in Outagamie County helped Bemis Co. create 164 jobs and retain more than 3,162. A notable project involving another type of incentive was an expansion by Gehl Co. in West Bend that received a $1 million major economic development loan and promises to create and retain some 280 manufacturing jobs.
- The Wisconsin Department of Agriculture, Trade and Consumer Protection reported that all division expenditures on economic development programs and activities totaled approximately $3.3 million from state tax dollars; $839,000 from program revenue; $2.8 million from federal grant funds; and $309,000 in segregated funds. The department’s programs encompassed efforts aimed at agricultural development and diversification; a program called “Buy Local, Buy Wisconsin”; specialty crop development funds and more. Several major projects included: a $95,432 grant to the Wisconsin Potato and Vegetable Growers Association for research on improving energy efficiency and reducing storage losses for potatoes, carrots and onions; a $48,000 grant to ENCAP of Green Bay for advanced technology to remove solids and ag nutrients from manure; and $46,000 to Agrecol Corp. of Madison to study the feasibility of using pelleted biomass fuel from native grass feedstocks.
- The Wisconsin Department of Tourism reported on operations of five economic development programs that specifically focus on grants and direct services. These include joint-effort marketing grants; co-op advertising; co-op direct marketing; support provided by tourism development specialists; and travel and sport show partnerships. Last year, the joint effort marketing program alone provided grants totaling more than $1.1 million for 51 projects promoting Wisconsin destinations, new and existing events and attractions.
Although not every project in the comprehensive report identifies a specific number of jobs that are expected to result from the public investment, the purpose of the report is to help improve accountability and awareness of the state’s economic development efforts. Development of the report was required by the 2008 Wisconsin Act 125 and marks another step in efforts to establish clear and measurable performance goals for each economic development program.
