Tuesday Trends sample: Milwaukee water industry rising, tobacco taxes mixed and Frontier falling

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RISING

Milwaukee water industry: Advocates for bolstering Milwaukee’s status as a hub for water technology convened in the city last week for the fifth annual “Water Summit” at Discovery World, and enthusiasm for solving water issues was reportedly high throughout the conference despite a lack of clear answers for the twin challenges of maintaining clean water supplies and conserving energy. U.S. Environmental Protection Agency Administrator Lisa Jackson gave conference attendees a rousing pep talk and pledged that her agency “supports everything you do.” A rash of federal grants for the local water industry accompanies the conference, as well. The Jobs and Innovation Accelerator Challenge — a $37 million initiative backed by multiple federal agencies — announces a $1.65 million award to the Milwaukee Regional Water Accelerator Project, while the federal Commerce Department awards $1 million for water technology and entrepreneurship to be shared by UW-Milwaukee, UW-Parkside, UW-Whitewater, the Milwaukee School of Engineering and Marquette University. The National Science Foundation also provides $500,000 for water technology training programs to Milwaukee Area Technical College.

MIXED

Tobacco taxes: The state Revenue Department issued a letter last week warning retailers who operate “roll your own” cigarette machines that they must comply with current state laws that classify them as both a manufacturer and distributor of cigarettes. That means the estimated 50-100 machines operators in Wisconsin must have two permits from the Revenue Department, along with certification by the Department of Justice and the Department of Safety and Professional Services. DOR says it’s implementing the policy to “protect responsible small businesses,” and the Wisconsin Petroleum Marketers & Convenience Store Association agrees, adding that the state stands to lose some $19 million in potential cigarette tax revenue due to the machines. Health groups also hail the move, saying the cheaper alternative encourages more smoking. But some retailers say the DOR’s interpretation of the law is too burdensome, with a Portage shop operating RYO machines saying the move is likely to put it out of business.

FALLING

Frontier Airlines: The airline became one of the most visible brands in Milwaukee after it absorbed Midwest Airlines last under Indianapolis-based Republic Airways Holdings. But the last week hasn’t been kind to the formerly Denver-based company. Frontier informs the state labor department it will lay off 213 employees at Milwaukee’s Mitchell International Airport. That announcement follows news of major service cuts from the city. Effective Nov. 1, the airline will suspend non-stop service from Mitchell to Green Bay and Madison, as well as out-of-state destinations Minneapolis, Cleveland, Des Moines and Dayton, Ohio. Frontier also says it wants to leave the Oneida County Airport altogether by next spring, but federal regulations may prevent it from doing so. The airline is the last operator out of Rhinelander after Delta departed earlier this month, and that city is one of 11 state sites deemed essential for airline access under the Essential Air Service program. Without a replacement carrier, Frontier may be in the northwoods for the foreseeable future.