Wednesday, September 24, 2014

Walker, "R"-led WI On 10-Worst-For-Business List

[Updated 12:26 a.m Wednesday from 12:02 p.m. Tuesday] Right direction, Wisconsin? 


A respected business ranking out this week put Scott Walker and Chris Christie, and their states, near the bottom of states. 

Here's a link to the ranking and a link to the full report: I also reproduced a news release that arrived with emails. It includes data and charts.
And note Walker is the only Republican Governor on the list who also has a GOP Legislature. 

Again, right direction? Wisconsin was 44th when Walker took over, so we're down two spots.

The takeaway analysis:

Just being Republican does not automatically grant you status as a pro-business guru. Of the bottom ten ranked states, three are run by Republicans including New Jersey Governor Chris Christie and Wisconsin's Scott Walker, two darlings of their Party.
New Jersey ranks #47 but ranked #45 when Governor Christie took office in 2010. Wisconsin ranks #46 but ranked #44 when Governor Walker took office in 2011. Unemployment for New Jersey is 6.5 percent ranked a weak 32nd,, and Wisconsin has an unemployment rate of 5.8 percent ranked a more respectable 25th nationally.
Governors Christie and Walker have worked at containing cost, but a job creation strategy has eluded them.
Until jobs can be created along with the resulting tax revenue, cost containment will remain an unending journey without a pleasant destination. Job creation is dependent on the creation of a pro-business environment.
Whom does Walker blame for this FUBAR, since he never takes any responsibility for his jobs and fiscal failures? Scott Fitzgerald and Robin Vos? Or do they blame Walker? How about all three take the Big Fail from these business leaders.

And it's fascinating that Walker and Christie will share a stage next week in Hudson. Turns out they have more in common that we thought.

Will anyone ask them about the data and discussion in the business release, reprinted below?
The Ten Worst States for Business in 2014

CHICAGO-(September 23, 2014) "Will voters again be blinded by negative TV ads and keep state politicians who have proven they do not perform? Unfortunately, the answer is very likely 'yes'," says Dr. Ronald R. Pollina, Chairman of the American Economic Development Institute (AEDI) and President of Pollina Corporate Real Estate, Inc.

The American Economic Development Institute (http://aedi.us/about-us/) and Pollina Corporate Real Estate, Inc. (http://pollina.com/), which jointly produce the Pollina Corporate Top 10 Pro-Business States, have expanded the release of their research findings to include the Ten Worst States for Business.

The original study, recognized as the "Gold Standard" for evaluating the pro-business status of each state, also provided the most comprehensive analysis of the worst states for business because it contained the exact same data for all 50 states.

The AEDI/Pollina Corporate study examines 32 factors over which state governments have control relative to efforts to be pro-business. The report uses a two-stage process. Stage I, Labor, Taxes, and Other Factors, evaluates 19 factors including taxes, human resources, right-to-work legislation, energy cost, infrastructure, worker compensation legislation, and jobs gained or lost. Stage II, Incentives and State Economic Development Agency Factors examines 13 additional factors, including incentive programs, state economic development department evaluations and marketing.

If consistency counts, then the states that ranked as the Ten Worst States for Business in the AEDI/Pollina Corporate study deserve to be given awards.California has been rankedamong the worst ten states ten out of the last eleven years. Massachusetts #41, Wisconsin #46, New Jersey #47, Rhode Island #48 and California #50 have all ranked among the Ten Worst States for Business over the last five years. Vermont #42 and Illinois #49 have been in the bottom ten for the last four years.

Although not among the bottom ten, Oklahoma #20 and New Mexico #35 deserve special mention as both dropped in rank 10 places in the last three years, showing the greatest drop of all states. A downloadable PDF with the List and the Report Cards for the Ten Worst States along with those for Oklahoma and New Mexico can be found in Monograph Archive by clicking http://aedi.us/data/documents/Monograph-AEDI-Pollina-Corporate-Ten-Worst-States-for-Business-List-State-Report-Cards_1.pdf. Each Report Card provides a grade for each of 32 factors evaluated.
   
2014 - Pro-Business 50-State Ranking

Worst State Rank
State
Governor
Took Office
Legislative
Control
Unemployment Rate
& Rank
50
CA
Jerry Brown (D)
2011
D
7.4%        44
49
IL
Pat Quinn (D)
2009
D
6.8%        39
48
RI
Lincoln Chafee (D)
2011
D
7.7%        48
47
NJ
Chris Christie (R)
2010
D
6.5%        32
46
WI
Scott Walker (R)
2011
R
5.8%        25
45
WV
Earl Ray Tomblin (D)
2010
D
6.3%        31
44
ME
Paul LePage (R)
2011
D
5.5%        19
43
CT
Dannel Malloy (D)
2011
D
6.6%        36
42
VT
Peter Shumlin (D)
2011
D
3.7%         4
41
MA
Deval Patrick (D)
2007
D
5.6%        20

The governors in these states cannot be held solely responsible for their state's poor ranking. Each has held office for at least one term, giving them time to turn things around; however, a governor must have a supportive legislature to be successful. Even in the cases of a governor and legislature controlled by the same political party, as is the case in all but two states, failure persists. Only Maine #44 and New Jersey #47 have separate parties controlling the executive office and legislature.

Democratic governors (seven) dominate this list of the Ten Worst States, with the exception of those in Maine, New Jersey, and Wisconsin. 

States That Have Shown Greatest Drop in Rank
The states that have shown the greatest drop in rank over the last three years were determined by looking at the results of three years. Consequently, we eliminated states that might receive a one-time drop due to the deletion of a single program or increase in taxes. Examining three years of results also provides more of a consistent pattern over time and among multiple factors that resulted in a steady and consistent drop in rank. We set the standard high - a state would have to move down in rank a minimum of ten places or 20 percent over the three-year period.

We felt that these states, whose business climates are not keeping pace with their peers, deserve special notice so that their leadership can make appropriate corrections:

Greatest Three-Year Drop in Rank
  
State
Rank and Change
Governor
Took Office
Legislature
Unemployed and Rank
OK
#20      10
Mary Fallon
2011
R
4.6%              11
NM
#35      10
Susana Martinez
2011
D
6.6%              36


Just being Republican does not automatically grant you status as a pro-business guru. Of the bottom ten ranked states, three are run by Republicans including New Jersey Governor Chris Christie and Wisconsin's Scott Walker, two darlings of their Party.

New Jersey ranks #47 but ranked #45 when Governor Christie took office in 2010. Wisconsin ranks #46 but ranked #44 when Governor Walker took office in 2011. Unemployment for New Jersey is 6.5 percent ranked a weak 32nd,, and Wisconsin has an unemployment rate of 5.8 percent ranked a more respectable 25th nationally. Governors Christie and Walker have worked at containing cost, but a job creation strategy has eluded them. Until jobs can be created along with the resulting tax revenue, cost containment will remain an unending journey without a pleasant destination. Job creation is dependent on the creation of a pro-business environment.

Hostile Business Environment: A Perfect Storm for Economic Disaster
What don't the governors and legislators of the Ten Worst States for Business understand about the fact that a hostile business environment creates the perfect storm for budget deficits, service cuts, unemployment and poverty? A hostile business environment creates high unemployment that results in lower tax revenues, resulting in high state deficits and cuts in services. High rates of unemployment push more families from the middle-class to the lower-class and into poverty.

Breaking this cycle should be priority one, but it does not appear the message is getting through to politicians in capitals of bottom ranked states. Will they pay a price for their indifference to job creation after voters go to the polls in November?


Media Contact:

Frank Martin   
773-462-4144
martin.f@brandandimage.net   

6 comments:

Anonymous said...

I can't wait to see how they spin this.

Anonymous said...

Wow!!!!!!!!!....I guess Wisconsin really isn't open for business after all!

Boxer said...

Not to mention who would want to live here/move here? Degradation and depreciation of wisconsin's abundant and clean natural resources, attacks on the middle class, systematic dismantling of public schools, gleeful withholding of public support for the poor, students, and inner cities, disenfranchisement of voters in certain districts, permanent Republican assembly and senate seats thanks to redistricting, government of the Kochs, for the Kochs, and by the Kochs, deliberate shutting out of the public in decisions they used to participate in . . .

Anonymous said...

10 states, all but Wisconsin with a Democrat controlled legislature. Is there a relationship to national economic policies under a Democrat controlled White House?

Anonymous said...

We are truly and officially a backwater. Even conservatives don't think we are not a good place to do business. Maybe that leaves it open for the Kochs to own everything.

Jake formerly of the LP said...

Or maybe it shows that the group making the rankings is massively biased for the GOP and the "race to the bottom" mentality their states have.

Which speaks volumes that Wisconsin's performance is so bad that they can't avoid including them on this list!