How will Wisconsin's new political makeup affect business?

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Election night performed an extreme makeover of sorts not only on Congress, but Wisconsin state government.

Voters returned Democrat Jim Doyle to the governor's office but handed the attorney general job to a Republican for the first time in 16 years. They also gave control of the state Senate to Democrats and narrowed the GOP majority in the state Assembly.

As lawmakers take the oath of office this month and begin the arduous process of putting together another two-year state budget, issues critical to the state economy and business climate are in play.

Doyle's second term brings crossroads and economic initiatives.

The governor used his first term to cultivate relationships with business leaders and work with GOP legislators to pass business-friendly legislation aimed at reforming and streamlining the regulatory process. The move alienated some environmental groups while some business leaders thought Doyle watered down reforms too much.

Wisconsin Manufacturers & Commerce poured $1.5 million into the governor's race trying to unseat Doyle, in part for his vetoes of tort reform bills it argues the business community sorely needs. WMC's leadership says it stands ready to work with him, but Doyle has accused the group of not representing its members. How he will respond to their lobbying efforts is unknown.

Doyle now wants to pursue an energy independence plan, that calls for the state to generate 25 percent of its own electricity, 25 percent of its own transportation fuel from renewable fuels by 2025 and capture 10 percent of the U.S. renewable fuels market. He also wants to move ahead with a plan to invest $750 million in biomedical research, including a $375 million public-private project, the Wisconsin Institutes for Discovery, scheduled to break ground next year.

Exit polling showed voters responded favorably to continued work with stem-cell research, and that should help Doyle secure support in the Legislature for the funding he needs to keep the project going.


A house divided

Democrats regained control of the state Senate, winning four seats held by Republicans, and narrowed the GOP's majority in the Assembly.

Lawmakers in both houses are expected to look at revamping the state's economic development programs following an audit that found duplication and a lack of accountability. Republican legislators might also piggyback off of Mark Green's campaign proposal to scrap the Department of Commerce and create a state economic development corporation.

Democratic leaders in the Senate have stressed they will focus heavily on reforming health care so all state residents have adequate coverage. Democrats argue the result would lower the burden on business owners, but Republican leaders warn such an effort could result in overtaxing businesses.

Assembly Republicans have indicated that lowering taxes is a top priority. Wisconsin ranked sixth this year in overall tax burden among the 50 states, according to the Wisconsin Taxpayers Alliance.


Republican AG has business backing

J.B. Van Hollen campaigned hard on his criminal prosecution experience, but also won support from business and agriculture groups who are wary of environmental enforcement actions Democrat Peggy Lauten-schlager spearheaded during her tenure running the Justice Department.

WMC spent $2.5 million running ads against Falk and touting Van Hollen because its members believed Falk's agenda for the state agency would hurt the business community.

With Van Hollen, business groups expect fewer environmental prosecutions like a public nuisance lawsuit Lautenschlager filed against a cranberry grower on Lac Courte Oreilles in Sawyer County, which alleged the operation was polluting the lake.

Van Hollen has said such cases are "political crusades" and a waste of resources that should go to criminal investigations; he said he will simply enforce the laws and regulations on the books.

The incoming attorney general also opposes a lawsuit Lauten-schlager's office brought against the federal Environmental Protection Agency for weakening rules governing mercury pollution from power plants.


Jenny Price is a Madison freelance writer.
jenny.price@gmail.com

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(CRAIG SCHREINER)