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Business Beat: State ranks high for drinking, not for workforce talent

Mike Ivey  —  7/23/2008 8:20 am

Those magazine rankings that pass for investigative journalism these days are always subject to spin.

For example, Madison's plunge down Money Magazine's "Best Places to Live" from No. 1 mid-sized city in 1996 to No. 89 today has absolutely delighted those who detest the city and its liberal traditions.

See what happens when you coddle the homeless, don't fix potholes and waste time on issues like affordable housing or mass transit, say the critics about Madison's slide.

But one ranking that has received virtually no press attention in the state -- and understandably so -- is the one from CNBC showing Wisconsin falling from No. 33 to No. 37 in the list of "America's Top States for Business."

Texas was ranked No. 1, followed by Virginia, Utah, Idaho and Colorado. Neighbors Iowa and Minnesota were ranked No. 9 and No. 10, respectively.

Sadly, Wisconsin is down there between Maryland and New Mexico and barely ahead of No. 40 Michigan, another struggling rust belt state that's become the poster child for a U.S. economy dependent on an unending supply of cheap oil.

Unlike a lot of magazine rankings that are just guesses from a bunch of editors sitting around a table, the CNBC survey does seem to hold some validity. It scores all 50 states -- using publicly available data -- on 40 different measures of competitiveness.

States are then ranked in 10 broad categories, with input from business groups including the National Association of Manufacturers. Finally, the different categories are weighted depending on how often they are mentioned in a state's own marketing materials.

CNBC lists dairy products, paper manufacturing, beer and tourism as the state's major industries but there is no mention of any "new economy" sectors. Wisconsin is rated No. 22 among states for technology and innovation, a ranking based on patents issued and use of broadband.

Wisconsin actually scores pretty well in some categories, including No. 9 for education, a ranking based on traditional measures of K-12 education including test scores, class size and spending. It ranks No. 13 in transportation based on the availability of air travel and the quality of the roads. The state has dropped to No. 25 in quality of life and No. 22 for cost of living, two areas long pitched as Wisconsin advantages.

But where Wisconsin really lags, according to CNBC, is in the quality of its workers.

Wisconsin is ranked a shocking No. 47 for its workforce, a ranking based on the education level, number of available workers and relative success of state worker training programs in placing participants in jobs.

The low ranking from CNBC in this key category is no doubt also linked to the fact Wisconsin is always touting the quality of its workforce in its marketing materials. (See Business Beat, May 14, 2008.)

Only West Virginia, New York and Hawaii are ranked lower for their workforce. Frankly, if I lived in Hawaii, I wouldn't feel much like working either.

But to really gain some insight into Wisconsin's workforce, one need only look at the recent analysis by Gannett Wisconsin Media of the state's drinking culture -- where boozing goes hand-in-hand with tailgating, snowmobiling, deer hunting and even children's events.

Gannett scored Wisconsin No. 1 in the nation for imbibing, a ranking based on the price and availability of alcohol, its economic importance and its criminal justice, social and health effects.

Following Wisconsin on the list of top drinking states are North Dakota, Montana, Wyoming and South Dakota. That's not exactly the kind of company to keep when you're pitching yourself as the next biotech hotbed.

So long, farewell

The abrupt departure of Jack Fischer as head of the Department of Commerce leaves Gov. Jim Doyle looking for his fourth point person on economic development in 3 and a half years. But Doyle spokesman Lee Sensenbrenner doesn't see that as any kind of revolving door.

"There's nothing unusual about cabinet secretaries resigning," Sensenbrenner said. "I'm confident the governor will find a good replacement."

Fischer left last week following news reports he and staff from the Commerce Department billed the state for nearly $22,000 for recent trips to Ireland, the Czech Republic and Canada. That included $2,200 for a one-night stay at the Conrad Dublin, a five-star hotel in Ireland's capital city.

Reviews from state business people attending the Ireland trip didn't help either. One said Fischer was more of a hindrance than a help to making overseas connections.

Who can say if Fischer was a good fit or not? What's clear, however, is that the Appleton businessman likes to toss his money around in political circles.

Records compiled by the Wisconsin Democracy Campaign show Fischer gave $3,750 to former Govs. Tommy Thompson and Scott McCallum during their terms in office. He's also contributed $4,900 to Doyle since October 2002, including a $1,500 check on Nov. 28, 2007 -- two weeks after his appointment to the Commerce position was announced.

I'm no expert on economic development, but rather than rewarding campaign donors when picking his fourth Commerce chief, perhaps Doyle should look for a bright young face to represent the state's supposedly burgeoning new economy. Think business casual, with some of those trendy dot.com glasses.

Mike Ivey  —  7/23/2008 8:20 am