Fifty Three to Fifty Six: Candidates respond to Winnebago B2B

Thursday, November 23, 2006

Candidates respond to Winnebago B2B

Candidates were asked to prepare responses of no more than 300 words to each question. Their responses are as follows.

1. Economic development professionals have long identified regulatory burdens as one of the challenges to attracting and retaining businesses in Wisconsin. In recent years, several thousand jobs have left Wisconsin headed for other states. What can the legislature do to make Wisconsin a more attractive place to do business, create jobs, and generate tax revenue for local government?

2. In recent years, state legislators have proposed various local government spending and taxing measures intended to hold down property taxes. Some, including the so-called Taxpayers Bill of Rights and the Taxpayer Protection Amendment, were proposed as changes to the state’s constitution. How do you feel the legislature should proceed with such local government taxing initiatives?

3. Our legal system should be reserved to help people who are wrongly injured or misled. Unfortunately, Wisconsin manufacturers, distributors and service providers have faced a more prolific climate of unfair punitive litigation against them, even after they’ve taken every effort to ensure delivering the utmost in quality and integrity. What role should the legislature take in reforming our legal system to avoid a liability crisis?

4. The governor’s Healthy Wisconsin Council is currently involved in three months of discussions to develop recommendations toward providing more state residents with health insurance. What role can the legislature take in making health insurance more affordable and accessible to more state residents?

5. Wisconsin and the nation as a whole are facing an impending energy crisis, as evidenced by sharply increased costs for gasoline, diesel fuel and natural gas, as well as the number of aged electrical generating facilities operating at or near capacity. What can the legislature do to further promote energy efficiency or to encourage additional, cleaner energy production?


54th Assembly District - Includes most of the city of Oshkosh.
Gordon Hintz – Democrat, Julie Pung-Leschke - Republican

Question #1
Hintz - Wisconsin can be a more attractive place for business if we address the issues that businesses and economic development professionals regularly identify as the key factors in relocation and retention decisions. The primary business consideration is the availability of skilled labor. Wisconsin is known for its skilled and dedicated workforce, but as current workers retire, it is critical for the state to maintain a strong commitment to K-12 schools, higher education and job training programs.Wisconsin can improve its training partnerships with area businesses, especially in pre-layoff training. Businesses also need good transportation facilities in order to efficiently reach markets. Wisconsin must maintain its transportation network.Business costs such as energy and health care are of great concern. Wisconsin can enact health care plans that will lower costs for businesses. Our state should encourage more business growth in areas of its greatest research and development strengths, particularly in biomedical and stem cell research.With regard to taxes, Wisconsin has made great strides to lower business taxes, but still has not come to grips with the property tax. On regulation, state agencies should adopt the Toyota cultural model of constantly questioning the effectiveness and efficiency of policies and practices. Businesses should expect prompt and fair regulatory processes.Finally, business leaders value quality of life. If they and their employees are going to live in a community, they want a place with good schools, safe streets, excellent health care facilities, a clean environment, and interesting things to do. Wisconsin should be looking at the business model of Ontario, Canada rather than Mississippi.

Pung-Leschke - As representative of the 54th Assembly District, I would most importantly build and keep a strong communicative relationship with business leaders in our area in order to make necessary changes in Madison for economic development in Oshkosh and Wisconsin. I would convene a local Economic Development Advisory Council, comprised of our local businesses and business groups, UWO, the technical college system, Chamco, OAEDC, labor, and others to develop ways to eliminate burdensome regulation and to support the collaborative efforts between business and education already begun in our area. Regarding previous legislative action, I am supportive of the bi-partisan collaborations (Republican Legislature, Democrat Governor) that have occurred recently in Madison including the Job Creation Act, Jobs Tax Phase-Out, and Brownfield Redevelopment Reform. I will work for similar jobs-promoting legislation.An area that is emerging as a growing problem and warrants more attention is our state’s severe skilled trade shortage. The Wisconsin Department of Workforce Development’s chief labor economist said “we’re running into more skill shortages that are keeping manufacturers from adding jobs as fast as they should.” Cultivating skilled workers, therefore, should be a focus in the years ahead. I will support incentives, such as an Apprentice Tax Credit, for businesses who invest in training and I will work toward education initiatives that match education with post-graduation jobs.Finally, the Wisconsin branch of the National Federation of Independent Business (NFIB), the nation’s largest small business advocacy group, has endorsed my candidacy because of my opposition to increased business regulations and my support for litigation and tax reform.

Question #2
Pung-Leschke - TABOR, as initially introduced in Colorado, and TPA as most recently proposed in Madison, are substantially different measures. I would have voted for the modified Taxpayer Protection Amendment that the State Assembly passed in the last legislative session. The TPA would have provided mandate relief for local governments by prohibiting the state from imposing unfunded mandates on local government. Unfunded state mandates are often a significant factor in property tax increases. This TPA, then, concentrated on requiring the state to keep-in-check its own spending before putting restrictions on local governments. Wisconsin’s position as 6th highest taxed state in the nation must be addressed. Discussion of implementing state spending limits is an important part of relieving the high tax burden that Wisconsin resident’s face.Unable to budget within the “freeze” restraints, the city council approved an unpopular $120/year City of Oshkosh garbage fee. Referendums on the November ballot will allow residents to communicate to local officials regarding their positions on the garbage fee and their desire to tax above the freeze limit.The current reality is: the state is estimated to begin its 2007-09 biennial budget with a $2.5 billion structural deficit; Wisconsin is a high-tax state, citizens are looking for tax relief and responsible spending; politicians in Madison must communicate and collaborate to find effective spending controls to begin getting our state budgeting under control.

Hintz - I do not support constitutional limitations on fiscal matters such as the Taxpayer Protection Amendment. I believe that legislators are elected to make tough decisions, not to hide behind legal formulas.However, I also believe that property taxes are too high. How much we spend on services is a legitimate issue in Wisconsin. How efficiently services are provided is a very legitimate issue. But we need to recognize that there is a relationship between good services and public expenditures. For example, Wisconsin has very good schools and roads. If we reduce support for schools and roads, at some point there will be a decline in quality. If people think that schools and roads are too good now, then there is an argument to reduce public support.My point is that we need to start by asking what services and service levels we want and then to determine what we are willing to pay. TABOR does not do this. It assumes that we are paying too much and that there are no negative consequences from reductions. This is living in a fantasy world. TABOR also is a one-size-fits-all approach that does not take into account the many differences among communities and the constitutional principle of home rule.At this particular juncture, I would support Gov. Doyle’s proposal to properly fund state shared revenues to municipalities (frozen since 1995) to reduce the property tax burden and provide incentives for local governments that are involved in regional cost-cutting initiatives. Finally, I believe that it is time for the governor and legislature to seriously examine state-local finance in Wisconsin.

Question #3
Hintz - The nature of product liability litigation is complicated and easily misunderstood. Successful punitive actions brought by individuals on businesses are statistically very rare. According to statistics maintained by the Wisconsin Court System there were only 120 product liability suits unrelated to asbestos-based claims filed statewide in 2004. Of these, only three were opened in Winnebago County and none of these have resulted in favor of the plaintiffs. By contrast there were 28,253 civil actions in Wisconsin pertaining to contract and/or real estate disputes – suits that are typically filed between businesses – during the same year.While the problem of juries awarding “lottery” sized damages to litigators and their clients understandably captures the imagination it obscures a far more prevalent phenomenon within the business community. Most product liability actions are settled out of court or dismissed out of hand by a judge. Yet companies still face the burden of legal fees that can accumulate over time if an opportunistic litigator begins to see a particular business as an easy target of nuisance lawsuits. We need to establish a partnership with the state, businesses and the legal community to stop dubious lawsuits before they begin and not after they have taxed the judicial system’s resources.Further complicating matters is the fact that the insurance industry has responded disproportionately to sensationalist accounts of rare liability verdicts by using them to justify rapidly inflating the premiums of all their clients, and not just the ones with the misfortune of facing litigation. According to the Insurance Services Office the industry was able to use this strategy (along with some shrewd investments) to increase profits by 1,000 percent between 2002 and 2003. Wisconsin manufacturers know the best business model is to produce a safe product of the highest quality – unfortunately, their insurers are looking for something else.

Pung-Leschke - There were many reasonable liability reform measures that the Legislature passed in the last legislative session, which I would cosponsor and vote for if elected, but many of them were met with a veto from Gov. Doyle:• Comprehensive Product Liability Reform (SB 58) – would protect manufacturers from lawsuits when the damages are caused by misuse of the product.• Intent Standard for Punitive Damages (SB 447) – would require a showing of intent to cause harm before punitive damages could be awarded in a tort suit.• Standards for Expert Testimony (SB 70) – would allow expert testimony in state court only if it is based on sufficient facts or data, as is the practice in federal court and in most other states.Creating a welcoming tax and regulatory climate is just one step in attracting and maintaining businesses. We also have to take steps to curb the recent disturbing slate of Supreme Court decisions, which have created a liability crisis. Frivolous lawsuits are costing Wisconsin’s jobs and businesses billions of dollars. I would support legislation which would eliminate current obstacles that make it difficult for defendants to retrieve costs resulting from lawsuits determined to be frivolous.

Question #4
Pung-Leschke - From 2002 to 2005, the average percentage of Wisconsinites without health insurance was 10.3 percent, according to U.S. Census data, which means Wisconsin has the 4th lowest rate of uninsured residents in the country (national average was 15.7 percent).While health care access for all of our residents is a worthy goal, I am initially skeptical of several plans circulating that would impose an “assessment” on businesses. There are claims such plans might save businesses money on health care costs, but I am not aware of any completed actuarial studies proving such a claim.That being said, I appreciate the efforts of the various organizations that proposed something tangible. Part of the problem in public policy, and especially in health care policy, is the multitude of conflicting perspectives to consider. Proposed plans are often met with immediate objections, for example the $8.7 billion deficit projected for the Wisconsin Health Plan. However, I understand the discussion must have a starting point, and I will enter discussion on the Wisconsin Health Plan and the Wisconsin Health Care Partnership Plan, both of which were introduced late last session.I believe we need a more free-market approach to affordable health care policy in Wisconsin. Portions of the Massachusetts Health Plan would seem like a good start. For instance, the Massachusetts plan creates a single, consumer-driven marketplace for health insurance for small businesses, their employees and individuals. It also promotes portability by allowing individuals and families to buy and own the private coverage of their choosing and take it from job to job. We will be able to study the effectiveness of plans in other states as we move toward solutions in Wisconsin.The Legislature can evaluate promising and proven free market approaches to health care, like Health Savings Accounts, and build off of it.

Hintz - The legislature can, should, and must take a leading role. Former Gov. Tommy Thompson recently called on states to create health insurance plans to insure the 46 million uninsured in the U.S., estimated between 550,000 and 600,000 in Wisconsin. In a May Wisconsin Manufacturers & Commerce Survey, 34.57 percent of CEOs said the top concern facing their company was health care.Our current system penalizes companies that provide insurance as they cover the uninsured spouse or family member of businesses who do not. The shift of cost to the employee has increasingly led to individuals forgoing medical treatment to save money and then end up paying more treating a preventable medical problem. And taxpayers not only cover the increased cost of health care for government employees, but also pick up much of the cost of health care for workers who don’t get insurance through their jobs. Many uninsured workers and their families end up on BadgerCare or Medicaid. Others end up depending on emergency rooms, which are heavily subsidized by taxpayers.There are currently a few comprehensive health care proposals in the legislature that address cost and access issues and enjoy bipartisan support. Creating an insurance pool that covers the 5.5 million Wisconsin residents will share risk, allow for efficiencies and savings related to administrative costs, and eliminate cost sharing. Encouraging healthy lifestyles to prevent chronic illnesses, and other consumer driven incentives should be incorporated to reduce costs. Utilizing cost effective community health clinics that offer basic services for shots and check-ups instead of using the emergency room would be another way to save money. The devil will be in the details regarding financing, but a tiered system like the successful state employee health plan will allow for risk-adjusted cost and quality measures and allow for lower, stable and more predictable costs.

Question #5
Hintz - Wisconsin must be equipped for the energy needs of the 21st Century and this will require a transformation of the fuels and facilities that keep our state running. Wisconsin faces energy challenges that it does not primarily control. Some of these issues will be resolved by market forces. However, the state can take steps to guarantee sufficient energy supplies at reasonable costs.First, with reasonable recognition of environmental concerns, the State can facilitate the construction of an electric transmission line from Minnesota and the expansion of natural gas pipelines on existing routes. New power plants in southeast Wisconsin have already been approved. Second, it can encourage “green” practices in its own uses of energy, as enacted by a bipartisan initiative last year. Oil is rapidly becoming a commodity that knows no end of cost or volatility. With regard to ethanol, I believe that market forces will determine the extent to which it becomes a major substitute for oil-based fuels.We need to begin promoting energy efficiency by offering tax incentives to individuals and businesses that take everyday measures to conserve energy. We also need to encourage the creative integration of alternative energy sources into operating models by allowing businesses the flexibility to experiment with bold and innovative ideas.

Pung-Leschke - The Legislature took a huge step in the last legislative session by passing Senate Bill 459, the Energy Efficiency and Renewables Act, legislation that was supported by industry and environmental advocates alike. Since 2003, more than $100 million in utility ratepayer funds have been raided from the Public Benefits fund and used for other government funding. SB 459 protects these taxpayer dollars by ensuring that they are used for their intended purpose of funding energy efficiency efforts, not “stolen” for completely unrelated spending.Currently, 4 percent of our state’s energy demands are met with renewable energy, but the Energy Efficiency and Renewables Act directs the state to lead the way in energy efficiency by setting a goal of purchasing 20 percent of the state’s energy from renewable sources.The legislation accomplished several other strides towards energy efficiency through the collaboration of diverse groups, and I am confident that more progress can be made through this type of collaboration among legislators, utilities, and the conservation community.


55th Assembly District -- Includes most of the cities of Neenah and Menasha.
Dean Kaufert – Republican (Inc.) Did not respond.
Mark Westphal – Democrat Did not respond.


56th Assembly District -- Includes rural northern Winnebago County rural portions of southern Outagamie County.
Roger Roth, Jr. – Republican Did not respond.
Susan Garcia Franz – Democrat

Question #1
Garcia Franz - I think that the State of Wisconsin has a lot to offer businesses in the form of a hard-working and educated work force here. We have an opportunity to look at our regulations on business and compare ourselves to other parts of the country. We need to keep in perspective that Wisconsin is unique in its landscape with over 13,000 lakes and a large tourist industry based on our natural areas. I think the legislature can look at the prime reason for business relocation as well as business growth into the state and work on policies to enhance our business economy.

Question #2Garcia Franz - I feel that putting one formula for local spending in place for all municipalities will NOT work in the State of Wisconsin. Even within the Fox Valley, we have very different fiscal realities between municipalities that would make a one-size-fits-all taxing initiative very difficult to enact. We need to take a look at spending as well as services offered and make decisions that will benefit ALL citizens of Wisconsin, not only those in a position to make financial gains from such decisions.

Question #3Garcia Franz - I think there is a fine line between negligence and accountability and responsibility. I think we need to outline the differences between the two and make sure that in our legal code that we have clear definitions for our judges and legal system to follow and pursue. We need to make sure that accountability is held to a higher standard so that we don’t need to turn to liability.

Question #4Garcia Franz - I think that the state legislature has a critical role in making sure that health care in Wisconsin is accessible and affordable. We have an opportunity in Wisconsin to take a step forward and iron out a plan that will pool employers and also include self-employed, farmers and those in between jobs and underemployed and uninsured. We have much more infrastructure in place to move forward such a plan than a lot of other states in the union. We are poised in Wisconsin to make this a reality if the legislature in the next session gets all those involved to agree to work together to hammer out the details.

Question #5Garcia Franz - I think the legislature has the opportunity to further promote energy efficiency and clean energy production with economic incentives. This will not only impact the need for additional energy but will also stimulate the businesses that are working on emerging technologies to make such energy production and savings a reality.

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