Milwaukee economy is stagnant, four studies report

Milwaukee – Milwaukee’s economy is stagnant and families are losing out, according to four recently released reports, and concrete suggestions for improving economic development outcomes in the state’s largest city are desperately needed.

The Center on Wisconsin Strategy today released two reports that highlight the lack of a successful economic growth strategy, as well as the fiscal impact of low wage jobs in the area.  These two are the latest in a series of reports highlighting the need for a stronger economic development strategy in Milwaukee. 

Efficient and Strategic TIF Use:  A Guide for Wisconsin Municipalities, published by the Center on Wisconsin Strategy, outlines a number of steps that would improve the effectiveness of Tax Incremental Financing as a development tool, with proposals on how to “structure TIF projects that yield the greatest public benefit.”  Milwaukee has most recently approved TIF financing for the former Pabst brewery site.

Reverend Joseph Jackson, Pastor of Evergreen Church and co-chair of the Good Jobs and Livable Neighborhoods Coalition, stated “We need more initiatives like the Park East Redevelopment Compact that promote equity in Milwaukee development projects and it is essential to extend our vision beyond the downtown.  We agree with COWS that stronger controls in TIF policies are needed.  Milwaukee has a crying need.  We must act.”

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The second COWS report, When Work Doesn’t Pay:  The Hidden Cost of Low-Wage Jobs in Wisconsin, quantifies the effect that low-wage jobs have on our economy and our state budget, especially the cost of public benefits that provided needed support to workers on those jobs.  The report discredits the notion that “any job is a good job.”

The report points out that 45 percent of families receiving publicly funded benefits are year-round workers, with a higher percentage of these people in the long term care and retail industries.  The report proposes an agenda for stronger jobs that will benefit families and the state as a whole.

“We have to change the way our community approaches economic development,” said John Jorgensen, Coalition co-chair from the Painters and Allied Trades union.  “The lack of standards creates lower-wage jobs, and that creates public costs that need to be considered.  Our goal is jobs that sustain a family, and this means good wages and benefits.”

The Public Policy Forum released its report, Growing up:  Analysis of city of Milwaukee economic development efforts, emphasizing the need for a comprehensive plan for City of Milwaukee economic development activities. 

“The Coalition agrees with the Public Policy Forum’s assessment that the focus has been on real estate development over job creation,” said Pam Fendt, incoming director of the Coalition.  “Much more attention to who will occupy the pretty buildings and what type of jobs they will bring to the City is desperately needed.”

UW Milwaukee’s Center for Economic Development report Income Change in Milwaukee’s Inner City, 2004-2005 shows the costs of the current development strategy.  Incomes in Milwaukee’s inner city declined 2 percent between 2004 and 2005, while they rose 2 percent in outlying suburbs.  The job creation measures we are pursuing now are not producing enough good-paying jobs.

“These reports on their own make a strong statement,” said Rev. Jackson, “But combined, they offer irrefutable proof that we must act as leaders and as a community to improve conditions for Milwaukee’s families.”

The Good Jobs and Livable Neighborhoods Coalition believes that it is only through development standards that promote economic sustainability and focus on good jobs for residents, housing for citizens at all income levels, and environmentally responsible building, that Milwaukee will turn itself around. 

To access the UWMCED report, visit www.ced.uwm.edu

To access the Public Policy Forum report, visit www.publicpolicyforum.org

To access the COWS reports, visit www.cows.org