|
|
 |
|
March 9, 2005 Contact: Todd A. Berry (WISTAX Jeff Beiriger (CWI) State Gains on Income, But Faces 'New'
Economy Challenges MADISONWisconsins annual report card measuring the states "competitiveness" relative to other states was released today. Passing grades outnumber failing ones, but there is room for improvement, as the state lags its neighbors and the nation in building a 21st Century economy. This is the key finding of Measuring Success: Benchmarks for a Competitive Wisconsin, 2004, a yearly study released by Competitive Wisconsin, Inc. (CWI), a nonpartisan coalition of state leaders in agriculture, business, education and labor. The CWI report card uses 33 benchmarks to track Wisconsins progress and compare its competitive posture with surrounding states and the U.S. Assigned ratings are positive, neutral or negative. The new report card gives Wisconsin 11 positive grades for self-improvement, the same as last year; ten are negative (up from six last year); and the remaining 12 are neutral. Compared to surrounding states and the nation, positives (9) also outweighed negatives (7), with most measures neutral, suggesting a similarity between Wisconsin and its neighbors. On the all-important benchmark of per capita personal income (PCPI), Wisconsin is making steady progress. After losing ground in 2000, the state ($30,723) is moving toward the national average ($31,459). In 2000, PCPI was 4.3% below the U.S. By 2003, the latest year for which data are available, the gap had closed to within 2.3% of the nation. Badger state per capita income grew 17.4% over the most recent five years, a rate that surpasses three of the four surrounding states and ties powerhouse Minnesota. However, Wisconsin per capita income still trailed all of its neighbors, except Iowa. A good quality of life is a state strength often mentioned in citizen surveys, and it is borne out in the CWI report card. Fewer state residents lack health insurance coverage (10.9%) than nationwide (15.6%) and, among our neighbors, Wisconsin trails only Minnesota (8.7%). At 221 per 1,000 population, Wisconsins violent crime rate has been declining steadily since 1995. It is safer here than in the surrounding states and the U.S. as a whole. Other quality-of-life measures are also positive. The cost of living is lower here than nationally and below that of the surrounding states, except Iowa. Poverty rates (9.2%) remain well below the national rate (12.3%). And our schools continue to compare favorably on college board scores, where we lead all states, except Minnesota. If there were one area where Wisconsin needs to play "catch-up," it is on benchmarks related to the "new economy." The states relative lack of college graduates is well known. In Wisconsin, 24.1% of the population had college degrees in 2003, a drop from the two prior years. This percentage was below the U.S. average (27.2%), Iowa (24.6%), Illinois (28.1%) and Minnesota (32.7%). Also troubling is the relative number of doctoral degrees being granted in the sciences and engineering. Ph.D. researchers develop technologies that spawn new companies and high-paying jobs. They also attract significant amounts of federal grants and private gifts. As recently as 1995, Wisconsin had 81.4 Ph.D. scientists for every million people; the statistic is now 61.9. Although this still surpasses the U.S. average (55.4), Michigan (59.3) and Minnesota (50.2), Wisconsins five-year percentage drop (-23.3%) exceeds the decline for the U.S. (-13.7%) and all the surrounding states, except Iowa (-30.5%). Long a source of concern to those promoting a "new, 21st Century" economy for Wisconsin is investment capital. In 2003, venture capital disbursements per worker stood at $13.71 here. This continues a decline that began after 2000 when the state stood at $72.84. The Wisconsin statistic also trails the U.S. ($144.50) and all surrounding states, except Iowa ($2.92). Minnesota stands at $111.76. Other "new economy" indicators are mixed in their messages. Wisconsin has more patents per million people (380) than the U.S. and more than Illinois and Iowa. Nevertheless, it trails Michigan (419) and Minnesota (645), and Wisconsins rate has dropped since peaking at 417 in 2001. Balancing these figures is some encouraging economic news. Creation of new private businesses in Wisconsin increased 2.7%, well above the U.S. (1.7%) and all of the neighbor states. Exports, too, moved higher. As a share of outputs in the manufacturing, mining and farm sectors, exports were at 25.0%, the highest in modern memory. That said, the increase trailed the U.S. (40.6%) and all neighbors, except Iowa (23.4%). Reflecting its long-standing state budget problems, Wisconsins public sector continues to be weak on several fronts. State general obligation bonds are rated lower than they were five years prior; the ratings equal Illinois but trail Michigan and Minnesota. Our state-local taxes as a share of personal income were higher than the U.S. and all adjacent states. Although they are down from 13.5% in 1995, they did an uptick in 2004 from 11.9% to 12.1% of income. One of the reasons for Wisconsins high taxes is our lack of federal aid. Receipt of federal funds peaked here in 2000 at 91% (or 91 cents for every dollar in Wisconsin taxes sent to Washington), but has since dropped steadily. In 2003, Wisconsin received only 84% of what it sent to Washington. This was lower than Michigan (86%) and Iowa (106%), but still surpassed Illinois (73%) and Minnesota (70%). This is the eighth year CWI has sponsored the Measuring Success effort to benchmark state performance. The study originated with the recommendation of a gubernatorial commission in the mid-1990s that urged the state to track its progress and relative competitive position vis-à-vis other states and the nation. The entire series of reports has been prepared by the Wisconsin Taxpayers Alliance (WISTAX), a nonprofit, nonpartisan public-policy research organization based in Madison. The 2004 edition of the CWI report card was underwritten with a grant from American Transmission Company (ATC), which is "helping Wisconsin meet its energy needs." Additional support came from CWI-member organizations: Hufcor, Inc.; J. P. Cullen & Sons; Marshfield Clinic; and M&I Corporation. For copies of the report, contact WISTAX at 401 North Lawn Avenue, Madison, WI ; phone ; or email . A $3.00 per copy price (plus tax) is charged to cover printing, handling and mailing. o
About WISTAX
| Publications | Services
| Resources | Facts
& Figures | Join Us! |