Paul Soglin on issues facing the construction industry

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Madison Mayor Paul Soglin, a longtime fixture in Madison government, is one of eight Democrats seeking to unseat Gov. Scott Walker in the November governor’s race.

Soglin’s political career began in 1968 after he had won a seat on the Madison City Council. His current term as mayor began in 2011. Between his time in public office, Soglin worked as an attorney and consultant for Epic Systems, the Verona-based software giant.

Here are his responses to The Daily Reporter’s questionnaire:

1. If elected, how would you manage the state’s existing deal with Foxconn and development expected to follow the company to southeast Wisconsin?

It is very likely that the parties, the state of Wisconsin and Foxconn, violated the terms of the initial agreement and existing statutes.  I will notify Foxconn that the agreement is null and that they have a choice: either come back to the table or sue the state of Wisconsin.  Three times in my career I inherited agreements not in the public interest, and three times I stood fast on behalf of the hard-working people I represented. I will do it again.

2. If you plan to back out of the state’s deal with Foxconn, how would you change plans for supplemental road projects along Interstate 94 and elsewhere to support the manufacturing campus?

When you stand up to a party entered into an illegal agreement and do so on behalf of the best interests of hard working people who are in the right on every issue — the environment, taxation policy, fighting corporate giveaways and greed — that is honorable and noble. To call such a strategy “back(ing) out” is the position of Quislings and cowards.

There are bright people, previously ignored in the Wisconsin Department of Transportation. A great and smart governor would seek out their recommendations.

3. Does the Wisconsin Economic Development Corp. effectively shepherd economic development in Wisconsin? Why or why not?

With the exception of the (Wisconsin Housing and Economic Development Authority), which is professionally managed, WEDC is a disastrous mess. The fact that they concurred in the Foxconn deal is proof of their incompetence. Even the Koch Brothers and the National Review recognized this was a horrible example of state-corporate socialism. All of my economic advisors will familiarize themselves with the research and findings of the Kauffman Foundation.

Specific attention will be paid to these three well-researched findings:

• The best way to create job growth is supporting small businesses and startups.
• States always lose when they get into a bidding war offering large corporate tax giveaways.
• The best jobs are created by small businesses.

6. What role to private sector unions play in Wisconsin’s economy? What policies would you enact or support to further this view of them?

All public and private sector unions should have their rights restored. I have bargained dozens of contracts in my 22 years as mayor. I took a strike from the teamsters in the 1970’s. It was not the end of the world. I never lost a binding arbitration case — which is probably the reason that despite my pro-union record, organized labor endorsed Mahlon Mitchell. You need to be fair and tough — a scary notion for many. That’s my policy.

5. Would you seek to repeal Act 10? If so, how would the state pay for the higher costs associated with a stronger bargaining position for public sector unions?

Prior to Act 10, Wisconsin had no problem paying for public employees. The problem was we were not growing the tax base fast enough because we were driven by the discredited notion that cutting corporate taxes and taxes on the wealthy would create more jobs. Of course, we know that private investment that leads to the creation of great jobs comes from wise public investment in infrastructure and human capacity. Rather than destroying unions, Wisconsin needs to raise the bar so that every worker has access to decent health coverage and a reasonable retirement plan. Bargaining rights for public and private sector unions need to be restored.

6. Do you support reinstating prevailing wage on state construction project? Why or why not?

Yes. Workers and the responsible contractors know it is best. Obviously, the prevailing wage protects construction workers. What most people do not realize is that its absence leads to shoddy construction and dangerous practices. Without prevailing wage, unscrupulous contractors, in an effort to obtain the lowest bid, will cut corners and hire unqualified workers who can be paid a very low wage. This means that qualified contractors who hire the best construction workers will not be able to compete for the low bid and everyone, including the developer who accepts the low bid, is damaged in the long run.

7. Does Wisconsin need new or higher taxes to pay for infrastructure projects? If so, what taxes would you enact or raise to pay for these projects? If you would not add or raise taxes, what parts of the state budget could be cut to pay for new infrastructure?

Wisconsin public infrastructure needs are many. This is critical from the standpoint of safety and from the standpoint of economic development since we know proper investment in infrastructure leads to the private investment that create good jobs. Three examples:

• Roads and public transit. Going back to the rise of the dairy industry, we learned that road investment stimulated the economy. Obviously urban industrial and manufacturing centers need to move their goods and not be tied up in traffic congestion. An increase in the gas tax, and its indexing, is one way of raising the necessary revenues

• High speed internet. Just as investment and regulations requiring electrification and land line telephones strengthened Wisconsin one hundred years ago, we need to do the same with high speed internet. We need speeds that are competitive with Paris and Seoul. The legacy companies like ATT and Comcast grew fat and lazy, content to churn each other’s customers, and offer speeds twice that of last year’s which means traveling 4 miles an hour instead of 2, when we should be going at 100 mph

It will cost an estimated $1.5 billion to wire every parcel in Wisconsin. The state should put up $500 million, half coming from increased fees on the new service and half coming from Foxconn savings. The private sector can bid on the project, the contract going to the proposal that commits the remaining $1 billion and the highest quality service. This will produce more and better jobs than Foxconn, greater income to the state and less risk.

• No community can be any stronger than its public schools. We need to significantly increase state participation in funding our public schools and cut, at least in half, the reliance on the property tax. The funding should be based on population and families below the poverty level, not on real estate values as is the existing formula. New revenue sources will come from the significant cut in the Wisconsin Department of Corrections budget and the possibility of an increase of a half cent in the sales tax.

I will not support Mahlon Mitchell’s constitutional amendment for the state to fund two-thirds of the cost of schools. That proposal makes no distinction between the needs of a wealthy suburb and a poor school district.

8. What is the solution to Wisconsin’s shortage of workers?

Workers congregate where there are great jobs and great schools. Intelligent and creative workers come from great schools. Add to that affordable housing (a state tax credit plan); transportation including roads and public transit; access to affordable health care including attention to nutrition, behavioral health, and substance abuse; and quality childcare and we will have no problem developing, keeping, and attracting a great workforce. And let’s pay them enough as well, starting at $15 an hour to be phased in over an estimated five years.