University of Wisconsin - Extension

By Jay L. Smith, President, UW System Board of Regents

In a 24-hour period last week, the news media reported on 225 lost jobs in Monroe, a company in Ashland that laid off 184 workers, the close of a Racine book publisher, and the elimination of 45 manufacturing jobs in La Crosse. Throughout the state of Wisconsin, the national economic slump is hitting hard.

Wisconsin is particularly vulnerable, given our heavy reliance on traditional manufacturing and agriculture. A company in Monroe cut workers at its plant because they eliminated ballast assembly operations. The U.S. Department of Energy recently made changes that will lead to a shift from electromagnetic products such as those produced in Monroe to more energy-efficient electronic ballasts -- a metaphor for the shift from the old to the new economy that is affecting businesses and workers throughout the state.

This shift, and concerns about the state's economy, have received much attention in the media this past year. At this point, the problems are well defined:

• companies leaving the state,

• a "brain drain," as we lose more college graduates than we import to our workforce,

• a state population that is working harder for less money than people in neighboring states,

• a high income tax burden,

• lack of venture capital, and

• elements of our infrastructure such as energy, telecommunications and transportation that are inadequate to meet new economy needs.

We know the problems. The question is: what are we going to do about them?

Wisconsin is famous for its "can do" tradition. All across the state, people are rolling up their sleeves and digging in to help revive and grow Wisconsin.

This work will be a centerpiece of the upcoming Wisconsin Economic Summit II, scheduled for November 26-27 in Milwaukee under the leadership of the UW System and the Board of Regents. Last year, more than 900 people gathered at the first summit to consider the economic problems that state was facing. This year, we will gather to focus on solutions.

It is a time for action. It is a time for key players to put aside their differences - whether they are political or regional or economic - and agree on what's good for Wisconsin. In order to succeed, we must have leaders of government, business, education, nonprofits and labor working together for the common good of the state.

People ask me why the UW System has taken such an active role in organizing these summits. The answer is two-fold: the university is a major driver in the state economy, but we also depend upon it for our success.

As an "industry," we are one of the state's largest employers and one of its major importers of federal funding (more than $600 million last year alone). We are the state's largest single provider of skilled workers, a business incubator that spins off ideas and inventions for real-world application, and a significant supplier of business services and expertise via our faculty and staff.

But we are also "dependents" of the state. Roughly one-third of our budget comes from state GPR, a percentage that has declined steadily over the past decade while overall state spending increased. We have a vested interest in a healthy economy for Wisconsin.

This year, we are celebrating our 30th anniversary as a unified system of public higher education. In that time, we have graduated more than 700,000 people, the vast majority of whom have stayed and worked in Wisconsin. The impact of that is phenomenal in a state that has just five million people.

There are examples of the UW System's influence all around us. Thirty years ago, UW-Madison's research park was a university farm. Today it is home to some of the most dynamic, cutting edge businesses in the state, many of which are direct spin-offs of university research.

UW-Extension's 14 Small Business Development Centers around the state can point to thousands of Wisconsin businesses that have been assisted through their counselors and instructors. UW-Platteville is establishing an engineering program in the Fox Valley, partnering with UW Fox Valley, that will directly serve area businesses. UW-Eau Claire and UW-Stout, in cooperation with Chippewa Valley Technical College, have been instrumental in fostering the emergence of high tech industries in that part of the state.

In Wisconsin's largest urban area, the "Milwaukee Idea" is giving UW-Milwaukee a new leadership role in the local economy. At UW-Madison, the creation of the BioStar project promises to make our state a national leader in the field of biotechnology.

Such examples abound. They are part of the UW System's "Wisconsin Idea" tradition, putting the university to work addressing the needs of the state and its citizens.

This tradition is a responsibility that the Regents, system president and chancellors take very seriously. This month's economic summit testifies further to that commitment. We urge everyone, especially businesspersons, to check out the summit website, attend the summit, and become involved in this important discussion about the state's future.

Jay L.Smith is President of the UW Board of Regents and CEO of JLS Investments, Middleton.

http://www.wisconsin.edu/summit