Taking Steps to Move Wisconsin Forward
Wisconsin Economic Summit III sets foundation for future economic collaboration, growth

By Erik Christianson

Keynote speaker Paul Gigot of The Wall Street Journal, UW System President Katharine C. Lyall, Summit Co-chair Jay L. Smith and Board of Regents President Guy Gottschalk enjoy a lighthearted moment during a summit session. (UW-Milwaukee/Alan Magayne-Roshak)

When Jay L. Smith stepped to the dais for the concluding session of Wisconsin Economic Summit III, he had important news to deliver.

The three-day gathering in mid-October of more than 800 business and labor leaders, government officials and educators had accomplished its charge, Smith said. The statewide summit was full of positive reports and accomplishments from the past year, including increased venture capital funding, creation of angel investing networks and growth in vital industry clusters, Smith said. He added that the summit has held organizations, and indeed the state, accountable for actions to spur economic growth in Wisconsin. More diverse groups and individuals also participated in this year's summit, a top priority of summit organizers, he emphasized.

But the important news didn't end there. After detailing how the summit had accomplished its mission, Smith then turned to the future as he unveiled the summit's capstone development.

Smith, summit co-chair, announced the creation of a statewide council to serve as a much-needed forum for public, private and nonprofit stakeholders to streamline and focus efforts to grow Wisconsin's economy.

Fiscal experts present a proposal to solve Wisconsin's estimated $2.8 billion budget deficit while restoring fiscal integrity to the state's economy. (UW System/Christian Schauf)

"It is not a lack of talent or ideas that is holding back Wisconsin in this quest for a stronger economy-but the lack of a coordinated effort," Smith told the crowd.

The Wisconsin Economic Collaboration Council-initiated by a group of business, government, education and nonprofit leaders-will provide a platform for conversation among the dozens of statewide, local and regional organizations with existing economic development action plans.

"I can feel the energy growing," boomed Smith, past president of the University of Wisconsin System Board of Regents, from the stage at the Midwest Express Center's main ballroom in Milwaukee.

The council plans to review current economic development strategies in the state and share "best practices" so organizations can avoid duplication and make their efforts more effective.

"You don't control the economy from the top. The economy is there, and what you do is nurture it," said council member Jim Haney, president of Wisconsin Manufacturers and Commerce. "We're going to nurture those of you at the local level who are doing the heavy lifting."

"Great ideas are not enough," added James Schneider, council member and president of the Wisconsin Economic Development Association. "Coordinated ideas are essential if we are to succeed."

The council will also identify obstacles that keep local groups from working together, propose incentives for organizations to collaborate and explore taking on the responsibility of hosting the annual economic summits, which have been organized by the UW System.

"The council is a group whose time has definitely come," said University of Wisconsin System President Katharine C. Lyall, summit co-chair. "The UW System intends to be a very active part of it."

Setting the Foundation

More than 800 attendees fill the ballroom at the Midwest Express Center during Gov. Scott McCallum's speech at the summit. (UW System/Christian Schauf)

In a very real way, the UW System already has been an active participant. The past three economic summits set the foundation for the collaboration council-and for future economic growth in Wisconsin.

"Large-scale strategic planning always starts with divergent thinking, with getting lots of ideas on the table," John Torinus, CEO of Serigraph, Inc., in West Bend, wrote in his weekly business column in the Milwaukee Journal Sentinel following the summit. "The summits have accomplished that beautifully."

Indeed, the economic summits have been precisely what they were envisioned to be: forums for discussion, debate and decision-making to strengthen Wisconsin's economy-and strengthen the state as a whole.

The summits are the modern embodiment of the Wisconsin Idea. First championed by UW President Charles Van Hise in the early 20th century, this notion stresses that the university exists not only to teach young people but also to assist the state in all sorts of ways. Said another way, the boundaries of the UW are the boundaries of the state.

The Wisconsin Idea was in full force at the third summit, held Oct. 14-16. Along with the formation of the collaboration council, the most tangible example of it was the presentation of a fiscal policy reform white paper, titled "The Fiscal Crisis in Wisconsin: An Analysis of Its Origins, Implications and Solutions."

Produced independently of the UW System by a panel of "gray eminences"-public policy experts, former state lawmakers and administration officials from all sides of the political spectrum-the paper presented the most detailed plan yet for solving Wisconsin's $2.8 billion budget deficit.

And it was not without controversy. The plan calls for a decrease in the income tax coupled with a sales tax increase and removal of some sales tax exemptions. The plan also includes spending cuts to state government and the UW System and hikes in various user fees, such as automobile fees, the gas tax and the cigarette tax.

Despite the main gubernatorial candidates' repeated campaign promises that they would not raise taxes, the panel maintained that it is impossible to balance the state's checkbook without both spending and tax reform."The budget presentation was welcomed at the summit as a political reality check," said Tom Still, president of the Wisconsin Technology Council, in a column on WisBusiness.com.

The Road Ahead

William M. Daley, former U.S. Secretary of Commerce and SBC Communications president, praises business-community partnerships during a keynote address to business executives and state lawmakers. (UW-Milwaukee/Alan Magayne-Roshak)

Now that the summit is over, business leaders, government officials, educators and economic development professionals are looking ahead. They agree the most recent summit produced a consensus on what steps need to be taken to improve Wisconsin's economy. Torinus outlined some of the main steps:

• The education sector—the UW System, the technical colleges, the private colleges and universities and the K-12 system—needs to work more closely as Wisconsin's economy becomes increasingly more knowledge-based;
• A seamless education system is necessary so workers can enter and re-enter the classroom or laboratory as needed to build their skill sets as the economy evolves;
• Future economic development efforts must focus on the state's industrial clusters to be successful; More investment is needed from angel networks and venture capitalists;
• Technology transfer needs to be accelerated from the laboratory to the real world.

Leaders agree that future economic summits are also needed to benchmark the state's economic progress and serve as yearly gatherings to share best practices and quality ideas.

The question is, who will take charge of future summits?

Smith and Lyall note that the university is committed to assisting with future summits. The statewide meetings fit squarely within the university's mission to serve the state. The collaboration council is designed to play a significant part in future summits as well, as will Robert W. Baird & Company, the Milwaukee-based financial services firm.

Smith announced at the summit that Baird will help organize and underwrite next year's economic summit, a move that should help attract more business leaders to future summits-and to future economic development efforts.

"We consider this a real step forward," Smith said.

Summit Co-chair Jay L. Smith gives attendees a charge: a renewed focus on action, results, and accountability in future economic development efforts. (UW-Milwaukee/Alan Magayne-Roshak)

Gov.-elect Jim Doyle tells summit attendees that the UW System is important to his plans for improving Wisconsin's economy. (UW-Milwaukee/Deb Generotzky)

Gary Stern , president and CEO of the Federal Reserve Bank of Minneapolis, offers summit attendees his predictions on the direction of the nation's economy. (UW-Milwaukee/Alan Magayne-Roshak)

State Superintendent Elizabeth Burmaster, Wisconsin Technical College System President Richard Carpenter and UW System President Katharine C. Lyall (left to right) serve as panelists during a workshop entitled "Education as an Economic Cluster." (UW-Milwaukee/Tom Grimm)