Remarks of
U.S. Senator Russ Feingold
Fitchburg Business Appreciation Lunch
September 3, 2008
Thank you so much for having me here today. Fitchburg is such a terrific example of Wisconsin’s growing high tech economy. I applaud the businesses here for what you are doing to strengthen the economy not just in Fitchburg, but the entire state. Your know-how and ingenuity are exactly what we need more of as we work to create more jobs for Wisconsin’s families.
Next week in the Senate I will be introducing a new initiative to support economic development in Wisconsin and around the country. I’m calling it the E4 Initiative, because it’s focusing on the Economy, Employment, Education and Energy.
I just came from a meeting with Tom Still and others at the Wisconsin Technology Council, where we talked about the piece of the initiative that focuses on supporting small businesses.
In Fitchburg and throughout the Madison area we see business and research institutions on the cutting edge of innovation. In IT, biotech, and countless other areas, the Madison area is leading the way, both nationally and internationally.
And with this economy, we need to build on that momentum and do everything we can to support the businesses, especially the small businesses, driving that growth.
That support is critical to sustained economic development and meaningful long term job creation.
American small businesses generate approximately half of our nation’s payroll jobs and most of our new employment opportunities. They are the primary source of new employment, especially in inner cities, where they generate 80 percent of the total employment.
On an annual basis, our small businesses account for approximately $2 trillion of payroll employment.
Small businesses also drive product innovation, translating their cutting edge efforts and those of our universities and research institutions into products that make a difference in the lives of individuals and in the economic health of our communities and nation.
Our small businesses tend to be rooted in and central to our local communities and so directly contribute to the economic health of our cities and communities.
Despite the tremendous contributions small businesses are making to the country, and despite their being recognized as a leading source of innovation and entrepreneurial spirit, less than 3% of federal agency research and development budgets are specifically allocated to small businesses.
That’s not good enough. We need to increase our support of our nation’s small business to stimulate innovation, create sustained work force opportunities, and translate the research of our higher education institutions into tangible solutions to our nation’s top needs.
That’s why, as part of my E4 initiative, I am introducing the “Strengthening our Economy Through Small Business Innovation Act of 2008.”
My bill will substantially increase federal grant funding for innovation and research that goes to small businesses - and for university and research institutions working with small businesses.
And like every bill in my E4 Initiative, the cost of this legislation is fully offset and won’t increase the federal deficit.
Specifically, over a three year period, my bill would quadruple the proportion
of federal agency R&D budgets that goes to small businesses.
My bill also proposes to more than triple the proportion of R&D funds targeted for small business research and development that is specifically undertaken in collaboration with universities and other non-profit research institutions.
Finally, my bill will also establish and emphasize key national priority areas for small business innovation and research grants in energy; water quality and security; domestic security and transportation.
Wisconsin small companies, universities and other research institutions are ideally positioned to increase their participation in these programs, with particular strengths in these critical national priority areas.
It is time for us to seriously invest in the engines that drive our job creation and innovation and our long term economic development.
Energy innovation is one of the areas I’ve singled out in my E4 Initiative because it has exceptional potential to create more jobs and because it addresses one of the biggest challenges we face as a nation. I know the City of Fitchburg has made a tremendous effort in this area, with an outstanding commitment to conservation and clean energy. It’s an example that cities across the country should follow.
With skyrocketing energy prices, businesses, schools, and builders of all kind are looking for ways to make buildings more energy efficient, to conserve energy, and to expand renewables. This is creating a huge demand in the emerging energy sector for jobs – jobs that are far more likely to stay right here in America.
I will work to increase all kinds of “green-collar” jobs. As part of the E4 initiative, I will continue my strong support of federal programs that create jobs as they help communities, farmers and businesses become more energy efficient, and as they fund renewable energy and advanced technology polices.
In addition, as we create new jobs, we have to make sure that employers have access to a talented workforce. So another piece of my E4 Initiative will help businesses find qualified workers.
My staff and I hear regularly from employers unable to find qualified employees, and from skilled workers unable to find employment. Surely, we can do more to help connect these workers with open jobs.
One way to address this challenge by getting more workers access to skill standards certification, so that employers can recognize right off the bat that those workers are prepared and certified to work in an emerging field.
My E4 Initiative will have the federal government evaluate the skill standards programs available now, including pioneering ones here in Wisconsin, and make the results available online so that they can be accessed easily by workers, educators, and employers.
Skill standard certification provides a valuable tool for local, regional, and state governments: the ability to clearly, meaningfully, and easily quantify a skilled workforce.
In Wisconsin, which has one of the most skilled workforces in the country, the ability to quantify the specific number of workers with various skills is a tremendous asset in attracting outside investment.
We also must tackle the transportation challenges that many workers face, so that they can get to the jobs and businesses that need them. Another part of my E4 Initiative will help do that by strengthening the Job Access and Reverse Commute or “JARC” program. JARC’s primary goal is to help low income individuals meet their transportation needs so they can have access to better jobs. It provides reliable transportation to low income urban, rural and suburban workers. Wisconsin has even found that assisting with indirect barriers such as transportation of children to and from childcare facilities is critical in allowing some individuals to improve their job prospects. My bill will increase funding for JARC, and allow the federal share of projects to increase to 80% from the current 50% level for operating expenses.
Improving transportation is an important way to connect workers to job openings right now. But we also have to think about how to prepare today’s students for tomorrow’s jobs down the road. A strong workforce has its roots in good education. Unfortunately, we’re seeing alarming high school drop out rates across the country, including right here in Wisconsin. While many factors can contribute to students’ decisions to drop out, too many students say that their school work is not engaging and they don't think that finishing high school has relevance in their lives.
On top of that, colleges and employers report that some students are graduating from high school without being fully prepared for college or the workforce. Part of the problem is that the curriculums being taught in schools too often leave students without the skills they need for jobs in new and emerging industries. We must reverse this trend by introducing students to these exciting career paths with engaging and relevant curriculums. With the Connecting Education and Emerging Professions Act of 2008, my E4 initiative will help schools, businesses and other parts of the community collaborate on new ways to teach our students skills that they can use in emerging industries.
This bill would provide 5-year competitive education grants to states and school districts to foster collaboration between schools, businesses, and others about the workforce needs of emerging industries, and about innovative ways to prepare our high school students to meet those needs, both academically and practically.
States and local school districts would use this money to form partnerships with local or regional businesses, postsecondary institutions, workforce development boards, labor organizations, nonprofit organizations and others.
These partnerships will survey emerging industries and decide the academic and work-based skills our high school students need in order to be successful in them.
The partnerships then develop new ways to teach the skills necessary to succeed in these emerging industries.
Once the partnership has designed a curriculum or program and received approval from the federal Department of Education, the partnership will work to implement the program in qualifying schools.
Education is critical piece of the puzzle here, and I think this bill will help prepare students for jobs in growing areas of the economy. There is no silver bullet to bring jobs to Wisconsin, but by focusing on a combination of critical areas like education, workforce development, and supporting small businesses, we can create more opportunities for businesses and workers alike. Here in Wisconsin we have an incredibly dedicated workforce ready to propel this state and its economy forward. We need to give them access to the education, the skills, and the jobs they need.
I know that everyone in this room is dedicated to the economic development of Fitchburg and the Madison area, and that needs to be a critical focus of the federal government’s efforts as well.
Wisconsin has tremendous potential for new growth if we can harness our innovative new ideas – and our workforce – to strengthen the state’s economy. If we can take a multi-faceted approach, engaging businesses, research institutions, educators, workers and all levels of government, we will create new opportunities for the people of this great city, and this great state, to thrive. I hope to contribute to that effort with the E4 Initiative. With efforts like this, we can support the businesses here in Fitchburg that are the backbone of our economy, and that will be the foundation of Wisconsin’s economic success in the years to come.