(WisBusiness) TUES News Summary — 4 Nov. 2008

From WisBusiness.com …

— UW-Madison Chancellor Carolyn “Biddy” Martin declared Monday that the university was a statewide economic driver that could do even more to foster small and big businesses alike during tough times.

Martin called the financial stress facing the state “unprecedented” but said that cutting the UW too much in the next budget would diminish the university’s stature and harm economic development in the long term.

“Given the massive investments that are being made in higher education around the world, including in this country, it will be very, very difficult to sustain and enhance our stature, but I think its absolutely necessary,” Martin said. “With relatively modest investment compared to what’s being made elsewhere, we can keep a university great that’s already great.”

See more from Monday’s WisBusiness luncheon with Martin:
http://www.wisbusiness.com/index.Iml?Article=140720

— With the stock market swinging wildly in recent weeks and losing more than 20 percent of its value since the summer, these are trying times for pension fund managers.

On the last day of September, in fact, the value of the State of Wisconsin Investment Board’s (SWIB) holdings — which now total nearly $73 billion — fell by a whopping $3 billion. The next day, however, it gained some of that loss back.

Keith Bozarth, executive director of SWIB, said in a recent interview he believes the board’s long-term focus can manage the market’s volatility and that the SWIB may actually be able to scoop up bargains in the form of strong companies with distressed shares.

Bozarth said he believes the market will eventually bounce back and that Wisconsin public retirees shouldn’t worry about their pension checks because the fund is well-supported for many years into the future.

“There is no question about whether people will receive monthly checks or not,” he said.

The checks will be there, but after this interview with Bozarth came news that pension payouts to retired government workers could drop by 1 percent to 3 percent starting in May 2009. The final numbers, which will be based on overall 2008 performance, won’t be calculated until early in January.

See more in a new WisBusiness interview with Bozarth:
http://www.wisbusiness.com/index.Iml?Article=140740

— Lorman Education Services has filed notice with the state about 50 permanent layoffs at its Eau Claire location effective Dec. 30.

See the company’s filing:
http://www.wisbusiness.com/1008/081103WARNlorman.pdf

— In a surprise announcement Monday, Dairyland Power Cooperative officials said they have suspended plans for a coal ash landfill in Vernon County.

Officials said the cooperative instead will burn a modified coal blend that produces less byproduct requiring disposal at its Genoa plant.

Dairyland’s plans for a landfill had sparked opposition among many people in Vernon County. Groups opposing the landfill had been raising funds for what looked like an inevitable legal battle over the plans.

See full story: http://www.wisbusiness.com/index.Iml?Article=140755

— The Milwaukee-area’s second-largest bank, U.S. Bancorp, plans to join the ranks of big banks swapping preferred stock for capital under the U.S. Treasury Department’s financial rescue program.

The Minneapolis bank said Monday it has received preliminary approval for the sale of $6.6 billion of preferred stock and related warrants to the U.S. Treasury.

See story: http://www.bizjournals.com/milwaukee/stories/2008/11/03/daily9.html

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See details: http://www.wisbusiness.com/index.iml?Article=139211

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