In Business magazine put the following questions to Madison mayoral candidates Dave Cieslewicz, the incumbent, and challenger Paul Soglin. We present their answers to members of the Madison business community in advance of the April 5 spring election, and provide links to their recent IB Radio podcasts. (You can hear Soglin’s interview here. Beginning on March 30, you will be able to find Cieslewicz’s interview by browsing the IB Radio podcasts here.)
1) Since Wisconsin rates poorly in the number of start-up businesses, what policies will you promote at the city level to encourage business formation?
Cieslewicz: First, we need to work together with the business community. I’m proud to have the support of the Greater Madison Chamber of Commerce and Downtown Madison Incorporated, and I meet regularly with Jennifer Alexander and Susan Schmitz to make sure that together, we work to remove barriers to starting a business in Madison. It’s also why projects like the Edgewater are so important – not only for the immediate jobs, tax base, and amenities it will provide, but also for the image of Madison as a place that welcomes investments.
We need to continue to encourage the entrepreneurial spirit in Madison. That takes a variety of forms – everything from high-tech ventures at the University Research Park to small businesses on Park Street. While city government itself doesn’t create jobs, we work hand-in-glove with the business community to remove barriers and provide the right atmosphere.
One thing the city can do to help start-up businesses in the high-tech industry is to help create space to incubate their ideas. That’s why I’ve worked with the University on the development of Research Park II and on the Metro Innovation Center and with other partners on the BioAg Gateway. We’re also working hard to develop exciting low-cost space in the Capital East District, which could be the city’s next major employment center. We also worked with the Chamber to develop the Small Business Advisory Council to advise city government on small business friendly policies.
Soglin: We need to examine our success like Epic Systems, Inc. and some of the failures to see what differentiates them. Clearly, Epic thrived in the Madison environment as its founder was successful in finding financing, marketing a great idea, and managing the company as it grew. The city must collaborate with the County, Thrive, and others to duplicate these results. And the start-up need not reach even one-tenth of Epic’s size.
2) Economic development entities like Thrive say a key to any economic development strategy is to grow existing businesses. From a policy standpoint, what should the city be doing to help its existing business base?
Cieslewicz: First, we need to have open and frequent communication. That’s why I initiated regular meetings with the Greater Madison Chamber of Commerce. We should also be meeting regularly with existing businesses to address any concerns or opportunities that they might have. We need to keep that communication going as we consider any new initiatives that will affect our businesses. And last, we need to continue to create and promote space for businesses to expand, like the city is currently doing in the Capitol East District.
Soglin: I agree that encouraging existing businesses is the way to go. The city’s role is to support the UW Research Park and encourage the Madison Development Corporation and similar organizations that nurture and grow local businesses. This can be done through networking, modest financial support, and providing access to resources that small businesses need to properly plan their future. Linkages to state agencies such as WHEDA, the SBA, and others are also critical.
3) Gov. Walker said his budget repair bill would give local municipalities and school boards the “tools” to negotiate more sustainable contracts with local government employees, especially with aid to local governments and school boards likely to be cut in the 2011-2013 state budget. Would you gratefully accept these tools, or do you believe this is a smokescreen designed more to curtail collective bargaining than to help local governments avoid layoffs? (Please explain your reasoning.)
Cieslewicz: Tools is just another word for cuts. The Governor’s budget cuts funding for schools, snowplowing, recycling, bus service, economic development, and other basic services provided by local governments. We work better when we collaborate to solve our problems and bring the best ideas from everyone. That’s what collective bargaining is all about. In fact, our largest labor union recently came to me with changes to their contract that saves the city money and will help us avoid major service cuts or layoffs. Under Gov. Walker’s law, we’re prohibited from talking and negotiating with our unions in that way.
Soglin: Economic development is a partnership between the public and private sectors. Public investment in human capacity (education and training) and infrastructure are critical to private investment. The combination of changes imposed by the state will severely limit the ability of the city to borrow and improve infrastructure. This in turn will jeopardize our AAA bond rating and drive up the cost of borrowing. Taken as a body of laws and regulations, Walker’s proposals will damage the Madison economy by punishing us for growth, much like the old revenue sharing formulas that penalized communities that grew their property tax base.
4) The zoning code rewrite is considered by some to be the single most important land use policy change in many years. What are three (3) of the most critical elements of the code that you see as necessary to make it a workable and successful code?
Cieslewicz: The zoning code rewrite is one of the most important things we can do for the future of economic development in Madison, and I am proud of the progress that we’ve made so far. There is still more work to do, but the code is poised for adoption.
First, districts that better reflect the City’s desired vision for various neighborhoods throughout the City are critical. Second, although it is our desire to see them significantly reduced, we need to maintain some ability for PUDs (planned unit developments). And finally, we need an openness to make amendments and adjustments to the new code a year or two into its use to address any issues that were not identified when it was prepared.
Soglin: Building height. The proposal severely limits building heights, massing, and density. There are waivers but they cannot be obtained for economic reasons. If we want to have dense development to maximize infrastructure investments and minimize sprawl, we must recognize that taller buildings are economically advantageous.
Plan developments (PDs). The new code creates planned developments and eliminates the old PUD. Many parts of the PD code require exceptions and waivers or conditional uses for design elements that were formerly part of the PUD submission. Developers will either give up and never submit plans, or they will be faced to see each exception individually reviewed, which will cost time and money and stifle the architects’ creativity.
Sustainability: the plan does not incorporate enough of the City of Madison Sustainability Plan.
5) The Economic Development Committee has been working on modifying the development review process in Madison, and they have made a formal proposal. Are you prepared to endorse this plan in its entirety? If not, what other changes, if any, would you make?
Cieslewicz: This review was sparked in part by the Edgewater development. I fought for that project because it created jobs, added tax base, increased public access to the lake and, most of all, it was a game-changer on the issue of the city’s commitment to economic development. The report is still being developed and receiving feedback and suggested amendments from various boards and commissions. It’s got a lot of good ideas in it, and I hope we can implement many or most of the final report once we see it. I asked the Economic Development Committee to undertake a review of our process because I wanted to improve communication, transparency, and predictability so both citizens and businesses have an easier path in Madison.
Soglin: No, not in its entirety. This is the kind of issue where I want to hear from the parties firsthand. This matter is too critical to finalize without the mayor carefully reviewing all of the details; to date I only have the benefit of reading the report.
6) The city’s debt service ratio is rising, some say to dangerously high levels, so dangerous that it threatens the city’s AAA bond rating. Is this a concern of yours? (Why or why not?) If so, what steps would you take to reduce the increasing debt service?
Cieslewicz: We are one of the few cities in the nation that has maintained its AAA bond rating in the midst of a recession. That top rating is based on our sound fiscal management and budgetary control. In fact, our debt burden is lower and our fund balance is higher than it was under Paul Soglin. In my time in office, we’ve built a healthy fund balance. Even though it had been the city’s practice, I have not taken anything from that fund balance my last three budgets in order to protect our financial stability. We’ll need to continue to keep that fund balance intact and scrutinize capital projects as we address budget challenges.
But I believe that now is the time to invest in job creating projects like street repair. Interest rates are the lowest in recent history, bids are very competitive, and the work needs to get done anyway.
Soglin: This is a critical issue. Using the same method we used to calculate debt service in the 1990s, Madison will exceed 14% in 2011. (The incumbent mayor excludes Monona Terrace and storm water projects in his calculation of debt service, which results in a lower figure.) No city in the United States that has debt service over 14% of the operating budget has an AAA bond rating. There is no question we will exceed 15% within two years no matter how you calculate it. Presently there are consulting contracts that should be in the operating budget – if those contracts continue, we should stop borrowing for them. We must examine all capital budget items and review those that are not essential. Lastly, we should sell the Don Miller and Union Corners properties as soon as possible for private development and use the income from the sale to reduce the debt. Our situation is made worse by the Walker budget, which puts a lid on the operating budget and drives up the ratio of debt.
7) Madison schools are being challenged by an increasing number of students in poverty and a growing perception that the suburban schools are better for area children. The city is somewhat limited in its role with the schools, but how would you work with the school district to address this fundamental concern?
Cieslewicz: For the first time in decades, Madison is fortunate to not have a neighborhood that is so challenged that it requires dramatic remedies and huge outlays of capital. However, the Great Recession has hit many families hard. I believe in a coordinated and targeted approach to fighting poverty that maximizes the use of existing resources. A joint effort is especially critical given that poverty is historically the biggest indicator of educational outcomes. My idea is to join forces to improve present and future economic outcomes for families – one by one – within an elementary school boundary.
The City should convene the many strong players who work to prevent poverty or counteract its symptoms: the school district, MATC, apprenticeship programs, the University, labor, the County, the State, the joint public health department, the Chamber, Madison Development Corp., Wisconsin Women’s Business Initiative Corp., neighborhood groups, etc. The coalition should choose an elementary school attendance area to target. School nurses and social workers would identify families in need. The coalition would assess the challenges facing the family and bring its collective resources to bear – whether it’s helping parents create a resume, contact an employer, obtain retraining, or launch a small business.
Success would be measured by the academic success of the children at the school. When significant progress is achieved, the coalition would move on to another school attendance area.
Soglin: This is the single most important issue facing the city next to our financial solvency. First we have to get our fiscal house in order and then tackle the escalating poverty, which is now over 50% of our public school enrollment; it was 32% just three years ago. This is a collaborative effort that requires city, school district, county, and private sector commitments. We need to focus on the six critical areas: housing, job training and education, child care, transportation, health care, and financial literacy. I have attached the complete report on this which I co-authored last year after three years of study.
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