Below is an excerpt from the most recent edition of WisBusiness Tuesday Trends.
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RISING
Manufacturing: The Assembly also advances a pair of bills aimed at bolstering manufacturers in the state. The first measure, which directs the Wisconsin Economic Development Corp. to organize a manufacturing trade show with the goal of building Wisconsin supply chains, passes 92-6. The second, which would establish a marketing assistance program for manufacturing companies through WEDC, passes 90-8. In addition, the latest monthly report on Milwaukee-area manufacturing from Marquette University shows the sector’s strongest growth in recent months. The Institute for Supply Management-Milwaukee report showed a February seasonally adjusted index of 56.5. That’s up five points over January’s report and the third straight month of growth; an index of more than 50 indicates growth in the manufacturing sector.
MIXED
Frac sand oversight: As the practice of mining frac sand continues to grow in Wisconsin, so does the number of environmental concerns from the state. That’s according to a recent report showing nearly 20 percent of the 70 frac sand mines operating were cited for violations last year. And a DNR official adds the agency has sent written warnings to a vast majority of the mining operations in the state. The problems highlight the controversial mining in a state rich with frac sand, which is used in the process of “fracking” to drill for natural gas — itself an often controversial practice. The state is taking some action to oversee the rapidly expanding industry — the governor’s budget proposal would fund two new DNR positions dedicated to it, while the DNR is partnering on a study of frac sand mining’s impact on groundwater. But critics charge the DNR still isn’t doing enough to address pollution and public health concerns, noting that Minnesota lawmakers are considering a statewide moratorium on new sand mining.
FALLING
Hospitals: The federal financial hits keep coming for the state’s hospitals. The Wisconsin Hospital Association estimates sequestration will cost state hospitals $1 billion in Medicare payments over the next decade, or about $2 million a week. Then, there are the changes in the federal healthcare law that WHA estimates will reduce Medicare payments by $2.6 billion over the next decade, with another $200 million lost the next few years because of changes to the physician Medicare payment system. Some note that’s why hospitals are looking for some stability and certainty and why they feel some angst about the governor’s plan to move people now on the Medicaid program into the federal health care exchanges. As lawmakers begin to really dig into the state budget, state Sen. Jon Erpenbach, D-Middleton, says he’s heard from Republicans interested in at least temporarily accepting the federal Medicaid expansion — and the federal money that goes with it. But Republican Assembly Speaker Robin Vos flatly declares that’s not going to happen. Instead, he praises Walker for his work to turn down the money and reform how the state approaches Medicaid. The governor is similarly opposed to Erpenbach’s idea, indicating he’s not interested in any compromise on Medicaid expansion.
