We Energies wind project turned on

We Energies' Blue Sky Green Field wind project in Fond du Lac County was placed into commercial service today.

The 88 turbines have a demonstrated capacity of 145 megawatts and are expected to generate more than 328 million emission-free kilowatt hours annually — enough to power 36,000 homes.

“Blue Sky Green Field is one of several targeted efforts we’re undertaking to generate more energy from renewable resources,” said Rick Kuester, executive vice president of Wisconsin Energy Corporation, the parent of We Energies. “We appreciate the support we have received from our customers and from the communities of Calumet and Marshfield and northeast Fond du Lac County in making the project a reality.”

At a cost of approximately $300 million, the Blue Sky Green Field project consists of 88 Vestas Wind Systems turbines spread across 10,600 acres. Each turbine is capable of producing 1.65 megawatts of electricity. The V82 turbines have a hub height of approximately 262 feet and a blade length of 134 feet. From the foundation to the tip, each tower has a height 397 feet.

We Energies continues to pursue the development of additional renewable energy to meet customer demand and to meet the state of Wisconsin’s Renewable Portfolio Standard, which requires utilities across the state to generate 10 percent of their energy from renewable sources by 2015.

“While the Blue Sky Green Field project is an important contributor to our renewable goals, We Energies will need to add several more renewable projects to meet the state mandate,” said Kuester.

Construction of Blue Sky Green Field began in June 2007. The project was built largely with the talents of Wisconsin companies and craft labor. Collectively, more than 400,000 labor hours were devoted to completing the project. Although the turbines are now in operation, We Energies will be working with the landowners in the area to ensure that proper restoration from construction activity is completed.

Economy grew 2.5% in past four quarters

According to the economic definition of “recession,” the U.S. is not in a recession.

Economic data from the U.S. Treasury Department show that the economy grew 2.5 percent over the past four quarters, including 0.6 percent in the fourth quarter of 2007 and the first quarter of 2008.

Most areas of the private-sector economy grew in the first quarter, including exports (annual rate of 5.5 percent), imports (2.5 percent) and consumption (1 percent). Federal government spending grew by 4.6 percent, and state and local government spending grew by 0.6 percent.

The biggest drop in real gross domestic product in the first quarter of 2008 was in residential construction, down 26.6 percent, followed by business structures, down 6.2 percent.

Productivity increased at an annual rate of 4.1 percent in manufacturing and 2.2 percent in nonfarm business.

Unit nonfarm labor costs increased 2.2 percent, hourly nonfarm compensation increased 4.4 percent, and the civilian Employment Cost Index increased 3 percent.

The personal saving rate was 0.4 percent in the first quarter and in the past four quarters.

In April, the unemployment rate dropped slightly from 5.1 percent in March to 5 percent, although total nonfarm payrolls dropped by 20,000.

The April Consumer Price Index increased 0.2 percent from March, and the annual year-to-date inflation rate is 3 percent.

Industrial production decreased 0.7 percent in April, with manufacturing production decreasing 0.8 percent.

Manitowoc ups bid for Enodis

Milwaukee Journal Sentinel/Associated Press

The bidding war for British cooking equipment supplier Enodis PLC heated up today, as Manitowoc Co. (MTW) came back with a second offer to trump an approach by another U.S. company, Illinois Tool Works Inc. (ITW).

Manitowoc raised its offer to 296 pence ($5.79) per share, valuing Enodis at 1.08 billion pounds ($2.1 billion). ITW had offered $2 billion.

Enodis had no immediate comment, but investors appeared to expect even higher bids.

Shares in the company, which supplies fryer systems to restaurants and retailers, including McDonald’s Corp. (MCD) and Wal–Mart Stores Inc. (WMT), rose 2.4 percent to 305.25 pence ($5.97) today.

Manitowoc, which makes cranes, marine, and food service equipment and is the biggest ice machine maker in the United States, opened the bidding on Enodis in April when it made an offer of 260 pence ($5.09) per share, which was accepted by the British company.

However, Enodis changed allegiance when Illinois Tool Works, a Glenview, Ill.-based manufacturer of engineered products with more than 800 business units in 49 countries, made a sweetened 282 pence bid, or about $2 billion, earlier this month.

Both of the suitors are including a 2 pence (4 cents) a share dividend as part of their bids.

Manitowoc said its offer was more than double Enodis’ share price on April 8, the day before it made its first approach and called on Enodis to recommend its new offer.

Illinois Tool Works said it noted the increased offer and was “considering its position with respect to Enodis and will make an announcement in due course.’

An Enodis–Manitowoc combination would give Manitowoc entry into two major new market segments — hot food service and food retail equipment. A successful purchase by Illinois Tool would nearly double that U.S. company’s food equipment business and make the combined food equipment business nearly a fifth of its total revenues.

Enodis, which has a range of food-service products includes cooking equipment, refrigeration units, and ice and beverage dispensing equipment that are used in fast-food restaurants, institutions, grocery stores and supermarkets, has successfully fought off a series of takeover bids over the past two years.

The company, which has manufacturing facilities in North America, Europe and Asia, and employs 6,800 workers, last week reported a profit of 9.7 million pounds ($19 million) for the six months ending March 29, compared with 17.3 million pounds in the comparable period a year ago. It attributed the drop in profit to the cost of restructuring.

Doyle vetoes deepen state budget cuts

By Patrick Marley and Steven Walters
Milwaukee Journal Sentinel

Democratic Gov. Jim Doyle carved up a budget-repair deal with his veto pen today, allowing him to make deeper cuts than lawmakers approved and take money from the state’s transportation fund.

Lawmakers voted this week to make $69 million in cuts through mid-2009, but Doyle increased the cuts to $270 million with his veto powers. He also vetoed a restriction that limited how much could come from the state transportation fund.

Of that, state Budget Director Dave Schmiedicke said $103 million would come from the state transportation fund. But Doyle said his vetoes would still give transportation spending as much as it got in the two-year budget passed last October, because the Legislature this week voted to boost that spending by about $180 million.

No summer highway maintenance or construction contracts will be delayed as a result of his vetoes, Doyle said.

Legislators have long dueled with Doyle over how the transportation fund is used, saying the governor has hurt the integrity of the account by using it to help pay for schools.

The Democratic Senate and Republican Assembly passed a package this week to ease the state’s budget woes because tax collections are expected to be $652 million lower through mid-2009 than projected when the budget was passed in October.

Doyle had repeatedly told legislators he did not like major aspects of the bill, and he carried through with his warnings today.

Doyle vetoed a $125 million accounting move that legislators relied on that would have booked a payment to schools into the next fiscal year. Doyle said he would make cuts instead.

He also dialed down a plan by lawmakers to refinance the state’s settlement with the tobacco industry to get $209 million now at the expense of higher payments in the future. Doyle said he now hopes state government can get about $150 million from the refinancing deal, depending on its effective date and conditions in the bond market.

Doyle also left a bigger budget-ending emergency fund — about $100 million — than what lawmakers had called for. Under the Legislature's plan, the budget would have ended with a surplus of only $25 million — an amount the governor called dangerously low.

Doyle preserved all but $2 million of $22 million that was to be used to implement the federal Real ID act, which requires states to issue fraud-proof IDs. Lawmakers had voted to take all $22 million, which was raised with a $10 increase in driver's license fees that went into effect Jan. 1.

Doyle said he would keep an additional $18.6 million for child care subsidies in the bill that lawmakers gave him, but he left himself the flexibility to curb those subsidies in the future in case of shortfalls.

Doyle vetoed a property tax exemption for low-income housing included in the package because he said a full public debate was needed on the issue. Lawmakers have long disputed how to structure such an exemption, and some said the provision in the bill would have had the effect of making taxable property of what now is exempt.

Miron Construction to expand corporate office

Miron Construction Co. plans an expansion of its corporate office, located at 1471 McMahon Dr., Town of Menasha.

The project, which is scheduled to break ground in July, will have an impact on both the local economy and support the existing and future growth of Miron.

The project will add 46,000 square feet on to the existing 65,000-square-foot building. The addition will consist of two,two-story wings, which will extend from the west and east ends of the existing structure and allow for additional office space, conference rooms, and an expansion of the health and fitness center. Renovations will also take place inside the existing structure. Two unique features of the expansion will be the wood roof structure in an inverted-arch design, and the construction of two sky bridges, which will provide a walkway for employees between the different areas of the facility.

Another highlight of the expansion is the health and fitness center, which will feature an aerobics room and encompass 3,800 square feet. This new center will be 2,500 square feet larger than the current fitness space.

The new expansion will be built to LEED standards, and the renovation of the existing structure will also incorporate sustainable elements. Features will include outdoor sunshades on the glass walls, an immense amount of daylighting, and a focus will be placed on energy efficiency. Miron has incorporated numerous “green” initiatives into its corporate culture, and this new and renovated space will reflect that.

“Miron can attribute the growth of the company to our incredible employees who understand the importance and value of providing superior service,” says David G. Voss, Jr., president of Miron. “In placing an immense amount of value on creating unforgettable client experiences, our organization has undergone tremendous growth. In fact, one of the reasons for this expansion is to provide sufficient space for our existing staff while also looking to the future to allow for further expansion of our team, services and technological capabilities. Ultimately, creating a comfortable and welcoming working environment that grows along with our family is extremely important to us as a company.”

Voss also notes the importance of being able to provide conference and training rooms for non-profits and schools across the Fox Valley. In the past, schools have used the main atrium for school events and non-profits have utilized the training and conference rooms for meetings. “We value this opportunity to continue to contribute to the community,” he says.

Cost for the building addition, building renovations and site development is estimated at $6 million. With plans to use local materials, and to hold 30 to 40 subcontractor contracts, the local economy will also benefit from the expansion. Along with the additional space, the project will allow for continued future growth at Miron, providing space for an additional 75 employees. The project is scheduled for completion in the summer of 2009.

Tim Kippenhan, vice president of Miron, says the corporate office expansion will support future construction work out of the corporate office, and regional office support in Wausau and Madison, Wis., and Cedar Rapids, Iowa.

“Miron continues to lead with new innovations in construction and needed the support of additional space to allow for this,” he says. “It’s evident how quickly the construction industry is changing with technologies such as Building Information Modeling (BIM) and a focus on preconstruction activities to enhance the services provided to our clients. With this new addition, we are able to grow and integrate these capabilities even further into our business strategies and support our regional efforts, as well as numerous recently acquired national accounts.”

The architectural firm chosen for the expansion project is Wenzler Architects based in Milwaukee. The firm designed the original building, which was built in 2001.

Nuclear reactors online again

By Thomas Content
Milwaukee Journal Sentinel

The Point Beach nuclear plant’s Unit 2 reactor returned to full power Thursday after a refueling outage that lasted more than five weeks, plant owner FPL Energy Inc. said.

The Point Beach reactor and the nearby Kewaunee nuclear plant, which resumed generating electricity earlier this week, have both completed their spring shutdowns for refueling and maintenance.

Power generated at Point Beach is sold to Milwaukee-based We Energies, which sold the plant to FPL last year.

The Kewaunee plant is owned by Dominion Resources Inc. and sells its electricity to Wisconsin Power & Light Co. of Madison and Wisconsin Public Service Corp. of Green Bay. The Kewaunee plant was operating at 99% power Thursday morning, according to the Nuclear Regulatory Commission.

Completion of the refuelings means that Kewaunee and both Point Beach reactors are running in advance of summer, when demand for electricity spikes during extended periods of hot weather.

Hoffmaster Group closing Appleton plant, expanding in Clintonville

Hoffmaster Group is closing its Appleton plant and expanding its Clintonville plant.

The Appleton plant employs 300, while the Clintonville plant employs 200. Company officials said the two facilities produce the same product, and expanding the Clintonville plant was easier.

The two facilities are part of Hoffmaster’s Creative/Converting Consumer Division, which also has a plant in Indianapolis. Hoffmaster’s Foodservice Division is based in Oshkosh.

CEO leaving Jewelers Mutual for Integrity Mutual

By Avrum D. Lank
Milwaukee Journal Sentinel

Darin Kath will become president and chief executive officer of Integrity Mutual Insurance Co. of Appleton, after he leaves similar positions at Jewelers Mutual Insurance Co. in Neenah.

At Integrity, Kath will replace Rick Schinler, who is retiring.

Kath has resigned as president and chief executive officer of Jewelers Mutual. He will be replaced on an interim basis by Patti Geolat, who has been a director of the firm since 1994 and chairman since 2000.

In a news release, Jewelers Mutual said Kath “will be joining another Wisconsin property/casualty insurer as its president and CEO.”

State jobless rate at 4.4% in April

By Joel Dresang
Milwaukee Journal Sentinel

Wisconsin’s unemployment rate dipped last month, although the number of jobs also declined from the year before, according to preliminary data released today by the state Department of Workforce Development.

The unemployment rate dropped to 4.4 percent in April from 5.3 percent in April 2007. The unemployment rate is based on household surveys and reflects the degree to which jobseekers are finding work.

A separate count of payroll data showed a decrease of 18,800 jobs since April 2007, led by a 9,200-job fall in manufacturing. Educational and health services continued to add jobs, with a growth of 10,100 jobs in the last month.

Falling in with seasonal patterns, employers in most industries expanded jobs since March, when the unadjusted unemployment rate was 5.6%.

“Wisconsin’s labor market improved significantly in April, as the construction industry enjoyed warmer weather and manufacturing continued to see strong exports, due in part to a weaker dollar,” Workforce Development Secretary Roberta Gassman said in a statement. “This is the second consecutive month that we’ve seen improvement in both construction and manufacturing, and we look forward to continued growth. Employment in the leisure and hospitality sector also is improving, as the summer vacation season approaches.”

Economic stats: Real earnings down

Real average weekly earnings fell by 0.5 percent from March to April after seasonal adjustment, according to preliminary data released Wednesday by the Bureau of Labor Statistics of the U.S. Department of Labor.

A 0.1 percent increase in average hourly earnings was offset by a 0.3 percent decrease in average weekly hours and a 0.2 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

On a seasonally adjusted basis the Consumer Price Index for All Urban Consumers rose 0.2 percent in April after increasing 0.3 percent in March. The index for all items less food and energy increased 0.1 percent, following an increase of 0.2 percent in March.

Alderman/supervisor running for Assembly

Green Bay Ald. and Brown County Sup. Tony Theisen announced Wednesday he is running for the 88th Assembly District seat won by Rep. Jim Soletski (D–Green Bay) in 2006.

“Last year, Wisconsin had the largest budget deficit per capita in the nation and remains in the top 10 most taxed states,” said Theisen at a reception at Titletown Brewery in Green Bay. He added that the state Transportation Fund has served as Wisconsin’s “payday loan store,” covering more than $1 billion in budget shortfalls.

“We had a very do-nothing Assembly this time under the Republican leadership, and I think we're going to have a clear choice in Northeastern Wisconsin,” Soletski told WBAY-TV. “If you want stonewalling and foot-dragging, then you would vote for Republicans, and if you want to get something done, then you’d vote for Democrats.”

Theisen has been on the City Council for 24 years and the County Board for 14 years.

Assembly approves budget package

By Patrick Marley
Milwaukee Journal Sentinel

The Assembly narrowly approved a budget-repair package today, sending it to Gov. Jim Doyle, who has pledged to revise it with vetoes.

Democrats joined Republicans who control the house to push the bill through on a 51–46 vote.

Members of both parties bashed the deal on the Assembly floor, calling it irresponsible for refinancing the state’s tobacco settlement payments and not making tougher budget cuts.

The Democratic governor has said he dislikes major aspects of the bill and will rework it with his powerful veto pen.

Lawmakers passed a two-year budget in October, but corrections are because tax collections are now expected to be $652 million less than originally projected.

Papermaker NewPage turns a profit

By Joel Dresang
Milwaukee Journal Sentinel

Reporting results of its first full quarter since acquiring Wisconsin-based paper mills, NewPage Corp. announced improved earnings.

Net income for the Miamisburg, Ohio-based NewPage grew to $7 million from a loss of $20 million in the first quarter of 2007.

Sales more than doubled to $1.2 million for the first quarter of 2008 from $476 million the year before.

NewPage's acquisition of Stora Enso North America accounted for the bulk of sales growth, but the company also reported strong demand and increased sales prices for boosting performance.

NewPage is North America’s largest producer of coated paper used for printing catalogs and magazines. Its Wisconsin operations include mills in Wisconsin Rapids, Biron, Stevens Point, Whiting, Kimberly, and Niagara, although it plans to close the Niagara mill later this year.

Last week, NewPage filed paperwork for an initial public stock offering.

Tufco second earnings quadruple

By Joel Dresang
Milwaukee Journal Sentinel

Citing payoff from efforts to increase operating efficiency, wipes manufacturer Tufco Technologies Inc. of Green Bay reported increased second-quarter earnings Tuesday.

Net income grew to $191,000, or 4 cents a share, from $47,000 or 1 cent, in second quarter 2007. Sales increased by 7% to $29.6 million from $27.6 million.

Through the first six months of Tufco’s fiscal year, net income rose to $231,000 or 5 cents a share, from $178,000, or 4 cents, in the first half of 2007. Sales declined slightly to $54.2 million from $54.6 million.

Besides making wipes for leading consumer products marketers, Tufco also has specialty printing services and business imaging products.

Packers Hall of Fame dinner sold out

The Green Bay Packers Hall of Fame, Inc., announced Tuesday the 38th Hall of Fame Induction Banquet, in the Lambeau Field Atrium Saturday, July 19, has been sold out.

This year’s banquet features the enshrinement of former nose tackle Gilbert Brown (top left photo), center Frank Winters (right photo) and video director Al Treml. This year’s presenters are Santana Dotson (to present Brown), Brett Favre (Winters) and Bart Starr (Treml).

Larry McCarren, game analyst on the Packers Radio Network and sports director at WFRV-TV in Green Bay, will serve as emcee for the event. A 1992 Packers Hall of Fame inductee, McCarren was an iron man at center for the Packers for 12 seasons (1973–84). He played in 162 consecutive games — the fourth-longest streak in team history — helping him earn the nickname “Rock.” He was voted to the Pro Bowl in 1982 and 1983.

In his second career, McCarren has been sports director at WFRV-TV since 1988 and a member of the Packers’ radio team since 1995. He has been voted Wisconsin Sportscaster of the Year in 1994, 1996 and 2002 by the National Sportscasters and Sportswriters Association. McCarren has been a frequent master of ceremonies for the enshrinement banquet over the past decade.

In addition to the induction of Brown, Winters and Treml, the Hall of Fame formally will recognize this year’s Fan honoree, Richard “Ike” Eisenhauer.

The Green Bay Packers Hall of Fame, Inc., Golf Classic, at The Bull in Sheboygan Falls Monday, July 14, also is sold out.

The Tax Court is not emailing you

The United States Tax Court has received many telephone calls regarding an email which purports to originate from the Court being sent by and a member of the Tax Court's practitioner bar.

This message is an example of “Spear Phishing,” which is an email spoofing attempt that targets a specific organization. The Tax Court is not disseminating any email notice to anyone who currently has a case before this Court.

If you receive an email with a subject line that includes the text, “US Tax Petition,” along with a malformed docket number following the format #000-000, and a sender address of noreply@ustaxcourt.org, please ignore/delete the email and do not click any link within the email message.

The Internal Revenue Service also does not initiate taxpayer communications via email. In addition, the IRS does not request detailed personal information through email or ask taxpayers for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts.

Appleton earns Wisconsin’s top international trade award

Appleton received the 2008 Governor’s Export Achievement Award for large manufacturing exporters from Wisconsin Gov. Jim Doyle at the 44th annual Wisconsin International Trade Conference held in Milwaukee Tuesday.

“We are focused on expanding our international market presence,” said Sarah Macdonald, vice president and general manager of Appleton’s International Division, who accepted the honor on behalf of the company. “We are encouraged with the success we have achieved so far and honored by the recognition those achievements have earned. This award is a tribute to the customer focused approach that all of our employees use in their daily work.”

The Governor’s Award, presented in several categories, honors Wisconsin-based companies and organizations that have achieved extraordinary results in international markets or have contributed to Wisconsin’s ability to compete globally. Entities are selected for innovation, effectiveness and special effort in growing exports, and enhancing employment, the economy and the international prestige of Wisconsin.

“I'm proud to recognize Wisconsin companies and institutions that have demonstrated leadership and innovation in responding successfully to international market challenges,” said Doyle. “They are building a great name for Wisconsin around the globe.”

Appleton became a two-time recipient of the Governor’s Export Achievement Award by capturing the distinction for large manufacturing exporters in 2008, as it also did in 1996. Appleton sells its paper products to customers in more than 70 companies. The company’s international revenue grew by more than 70 percent from 2005 to 2007.

Long-term deficit grows as economy slows

By Steven Walters
Milwaukee Journal Sentinel

State government faces a long-term imbalance between spending commitments and tax collections of almost $1.7 billion, even if the budget-repair bill being debated in the Legislature becomes law, lawmakers were told today.

Bob Lang, director of the Legislative Fiscal Bureau, gave Senate Republicans that estimate of the so-called “structural deficit,” which is the projected shortfall Gov. Jim Doyle and legislators face next year when they must debate and pass the 2009–11 budget.

First, however, Doyle and legislators must fix a $652 million shortfall in tax collections in the current budget, which ends in mid-2009. The Senate was scheduled to debate a budget-repair bill today; the Assembly will take up the same bill on Wednesday.

Lang said the $1.7 billion long-term deficit is almost entirely attributable to the slowing economy. Tax collections are only expected to grow by 2 percent, which is less than half of the average annual growth of 5.5 percent. Every 1 percent lag in tax collections means state government collects $130 million less in taxes, Lang said.

“It will be a difficult budget in 2009–11, to say the least, unless the economy really turns around,” Lang told Senate Republicans.

The new $1.7 billion structural deficit is about $800 million higher than the estimate made in October, when the Legislature and Doyle agreed on the current state budget.

Flagpole needs work due to swaying

The flagpole at Acuity in Sheboygan (“The largest flag in the U.S. flies thanks to Wisconsin companies,” Marketplace, March 18) is being modified after substantial swaying was observed April 8.

The 338-foot pole, designed by Barr Engineering and installed by Oscar J. Boldt Construction, swayed during 10-mph winds that morning, although it reportedly did not sway in much stronger winds later that day. The pole is built to withstand speeds of 100 mph.

Once the work is complete in May, a 7,200-square-foot 300-pound U.S. flag will fly from the flagpole.

Town considering merging police

A Town of Grand Chute analysis of police department merger proposals favors merging with the Appleton Police Department over merging with the Outagamie County Sheriff’s Department.

The town’s police department doesn’t have a permanent police chief and is short of patrol officers according to police officials. The Appleton proposal would result in three officers being assigned to Grand Chute, and the town getting two seats on a six-member police commission.
The county proposal would dedicate four officers to the town.

The analysis considered three factors the most — special services, “ability to address neighborhoods in transition,” and accountability to the town.

“If the APD proposal can provide these additional needed services more cost effectively than duplicating these resources in our own department, it would be appropriate for us to initiate negotiations with APD and see if we can achieve these goals through a possible merger,” wrote town administrator Mark Rohloff in a memo to the Grand Chute board.

Merger talks have been delayed until city residents get an opportunity to express concerns or ideas. Two information sessions are scheduled before the city council’s May 21 meeting.

Wind power in Lake Michigan proposed

Two energy groups are proposing installing wind turbines in Lake Michigan between Kewaunee and Sheboygan.

Ewindfarm Inc. of California proposes to install 610 turbines one to two miles off the shore between Kewaunee and Kenosha. An additional developer proposes to build “a couple hundred” turbines “within a few miles of shore,” according to the Milwaukee Journal Sentinel.

There are no water-based wind projects in the U.S., although wind projects have been proposed off Cape Cod and on Lake Erie in Ohio. Interest in offshore projects is increasing because several Wisconsin counties have passed ordinances restricting wind farm projects.

Towns considering merging into village

The Town of Harrison, in Calumet County, and the Town of Buchanan, in Outagamie County, are discussing merging the two towns to preserve what’s left of the two towns’ land area.

The towns have lost territory to, in Buchanan’s case, Kimberly and Kaukauna and, in Harrison’s case, Appleton, Menasha and Sherwood through annexation. Merging would create a village of more than 15,000 residents.

Costs to merge are estimated at almost $200,000.

WTA: State health care spending greater than U.S.

Over 20 years ending in the mid-2000s, Wisconsin went from spending less than the national average on health care to spending more than the national average, according to the Wisconsin Taxpayers Alliance.

The WTA’s report identifies two main factors for the increased spending — per capita hospital spending, which went from 16.2 percent less than average in 1985 to 8.3 percent more than average by 2004, and per capita spending on physician and clinical services, which grew from 2.8 percent less than average to 12.4 percent more than average.

Despite rising spending, the percentage of Wisconsin residents with health insurance has grown and remains better than the national average. In 1999, 9.5 percent of Wisconsin residents and 14 percent of the U.S. were uninsured; by 2006, Wisconsin’s uninsured rate dropped to 8.8 percent, but the U.S.’ increased to 15.8 percent.

The report credits a higher rate of employer-covered insurance in Wisconsin, 67.1 percent vs. 59.7 percent in the U.S., and state health insurance programs; BadgerCare enrollments increased 254 percent and Medicaid enrollments increased 86 percent between 1999 and 2006.

State budget repair deal reached

By Steven Walters
Milwaukee Journal Sentinel

Legislative leaders announced a budget-repair package today that nets $209 million from refinancing future payments from cigarette and tobacco manufacturers and delays a $125 million payment for public schools, pushing it into the next budget cycle.

The package is scheduled for quick votes this week in the Assembly and Senate to fix a $652 million shortfall in tax collections that were projected when the budget was adopted last fall.

Approval by the Legislature is also to keep Gov. Jim Doyle from delaying or canceling summer highway maintenance and construction contracts that total up to $261 million.

The deal was announced by Senate Majority Leader Russ Decker (D–Weston), Assembly Speaker Mike Huebsch (R–West Salem) and Democratic Rep. Jim Kreuser (D–Kenosha). The Republican-controlled Assembly will need some Democrats to vote for the budget deal, because some Republicans are expected to reject it.

Legislative leaders said the package would:

• Net $209 million by paying off bonds, approved in 2001, that sold off the first round of payments from cigarette and tobacco manufacturers. The new deal would issue bonds for expected payments from those manufacturers after 2018.


• Delay $125 million in aid to public schools until July 2009, so it doesn't count as an expense in the current two-year budget. Doyle has repeatedly said he opposes that delay, which raises the possibility that he may veto it outright.


• Lower balances in surplus state accounts, which were designed as a hedge against emergencies, by $97 million. The required budget-ending balance would drop from $65 million to $25 million.


• Require $69 million in spending cuts in current programs.


• Use $22 million raised by increases in the cost of drivers' license fees. The money was to be used to implement plans related to the federal Real ID requirements, but the money became available when the federal government extended the deadline.

When the state's cash shortfall was announced in February, Doyle aides announced that they would also save $125 million by mid-2009 by paying only interest — and not principal — on long-term state debt.

A Kreuser aide said the governor had not indicated whether he would veto any of the budget-repair provisions. Doyle is expected to address the package later today.

Alliance Laundry reports best first quarter ever

Alliance Laundry Holdings LLC of Ripon announced today its most profitable first quarter in the company’s history.

Net revenues for the quarter ended March 31 increased $13.4 million, or 13.8%, to $109.9 million from $96.5 million for the quarter ended March 31, 2007. Alliance’s net income for the quarter ended March 31 was $1.9 million as compared to $1.5 million for the quarter ended March 31, 2007. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the quarter ended March 31 increased $2.0 million to $17.7 million from $15.7 million for the quarter ended March 31, 2007.

“I am pleased to be able to report the best first quarter the Company has ever had, particularly given the overall economic conditions we’re experiencing in the United States,” CEO Thomas F. L’Esperance said. “Net Revenues in all of our major U.S. sales channels were up year over year. These results are a remarkable testament to the strength of our brands, the quality of our products, the resiliency of the markets we serve and our employees’ unrivaled commitment to our Customer One program.”

The overall net revenue increase of $13.4 million was attributable to higher commercial laundry revenues of $13.5 million, higher service parts revenue of $600,000, and higher European Operations revenue of $1.6 million, partially offset by higher worldwide sales eliminations of $2.3 million. The increase in commercial laundry revenues includes $8.6 million of higher North American commercial equipment revenue, $4.7 million of higher international revenue and $100,000 of higher earnings from Alliance’s off-balance-sheet equipment financing program.

Gross profit as a percentage of net revenues increased to 29.3% for the quarter ended March 31 from 27.7% for the quarter ended March 31, 2007, driven by higher sales volume and selling prices, partially offset by higher raw material and product distribution costs.