WMC Urges Rejection of Global Warming Task Force Proposals
Plan Would Devastate Jobs, Personal Income

MADISON – In the wake of a new study citing massive job and personal income loss, Wisconsin Manufacturers & Commerce Thursday urged the Legislature to reject Wisconsin-only global warming proposals endorsed by a governor’s task force.

The proposals would eliminate 43,000 private sector jobs over 11 years, and reduce personal income in the state by $7.9 billion, according to the report released by the non-partisan Wisconsin Policy Research Institute.

“Wisconsin is in the midst of one of the worst recessions in our history, and new costly, state-only regulations would make us even more uncompetitive,” said James S. Haney, WMC president. “When lawmakers debate state global warming bills, they should reject the expensive proposals identified in this report, and instead focus on research and development of clean energy technologies.”

In 2007, Governor Jim Doyle established a global warming task force that recommended a series of proposals intended to reduce carbon emissions. The task force issued numerous recommendations that were independently analyzed for their affects on jobs and personal incomes. Among the proposals are new fuel mandates, mandating increased use of renewable energy, new surcharges on utility bills, and other measures.

The Legislature is expected to take up bills to implement the task force report later this year, or early next year.

On Thursday, WPRI released a study from the Beacon Hill Institute at Suffolk University that found Wisconsin will lose jobs and personal wealth if the proposals are enacted.

If the global warming task force recommendations are enacted, WPRI/Beacon Hill Institute reports that:

• Wisconsin will lose 43,000 private sector jobs over 11 years.
• Wisconsin will add 12,000 government jobs.
• Motor fuel costs will increase $3.2 billion over 11 years.
• Electricity bills increase $16.2 billion by 2025.
• Every state resident will lose $1,012 a year in personal income by 2020.

“Wisconsin can’t go it alone when it comes to global warming legislation,” Haney said. “It puts our state at a competitive disadvantage, and would result in unilateral economic disarmament.”

The Beacon Hill Institute said: “Wisconsin will experience a negative shock to its economic well being, that given the economic damage of the proposals, may well inhibit its ability to fully recover the lost ground in the medium term.”

The Beacon Hill Institute analysis is the first cost analysis of the task force recommendations. The task force did not conduct its own review of the economic impact of the proposals.

“The global warming task force process was fundamentally flawed because it did not look at costs or economic impacts,” Haney said. “This report shows just how devastating many of these policies would be to our economy and job base.”

Currently, Wisconsin has unemployment greater than 8 percent. Forbes magazine ranked the state 48^th in competitiveness. The Pew Center for the States ranked Wisconsin among the 10 states in “fiscal peril” and most affected by the recession.

“If Wisconsin is going to focus on climate change, it needs to focus on business climate change,” Haney said. “The Legislature needs to enact tax relief, regulatory relief, liability relief and other measures to bring back our economy and encourage job creation.”

WMC has developed the “Moving Wisconsin Forward” plan of 22 key initiatives aimed at promoting economic growth. The plan is available at www.wmc.org.

FOR FURTHER INFORMATION CONTACT:
James S. Haney, (608) 258-3400
Scott Manley, (608) 258-3400

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Related Material:
WPRI/Beacon Hill Institute Study (pdf file)
WPRI News Release (pdf file)