Construction employment increased in 28 states from January 2011 to January 2012, the country’s best showing since 2007, according to the Associated General Contractors of Wisconsin.

The benchmark improvement is evidence the industry has passed its lowest point, though some of the gain is likely due to a mild winter that has helped construction, Ken Simonson, AGC’s chief economist, said in a released statement.

While Wisconsin gained 4,200 construction jobs from December to January, it was not among the 28 to post a year-over-year increase as its 90,000 jobs tally in January is still below the 2011 mark of 93,500.

According to the AGC, Pennsylvania added the most construction jobs (13,000) between January 2011 to 2012, while North Dakota had the largest percentage gain (16.1) in adding 3,600 jobs during the same time period.

On the other side, Florida lost the most industry jobs since last year with a 21,500-job decline, followed by Illinois with 9,500.

For a breakdown by state, visit http://www.agc.org/galleries/news/State_Empl_201201-Alpha.pdf.

Within hours of the state Senate failing on a majority vote to pass the latest form of a bill to streamline permits for mining projects, a Florida-based company that prompted the legislation scrapped plans for its project.

Gogebic Taconite LLC, in a released statement Tuesday night, said that with the Senate’s 17-16 vote against Assembly Bill 426, the company would no longer pursue a Wisconsin iron mine in northern Wisconsin.

While Republicans hold the slight majority in the 33-person Senate, conservatives have been unable to persuade Sen. Dale Schultz, R-Richland Center, to support the mining legislation, with Schultz being the lone Republican to vote against the proposal Tuesday.

According to The Associated Press, Assembly Republicans passed a bill in January that would require the Department of Natural Resources to make a permit decision within a year. But it also would wipe out contested case hearings, which are quasi-judicial proceedings conservationists and other members of the public can use to challenge DNR decisions along the way to final approval, the AP reported.

It also would allow mining companies to offset damage they may cause to wetlands by restoring or enhancing water bodies anywhere in the state. And it would limit lawsuits challenging permit violations and divide an ore sales tax 60-40 between the state and local governments; currently 100 percent of the revenue goes to local governments in mining areas.

Schultz has criticized the proposal from fellow Republicans because it doesn’t restore public challenges to permit decisions or protect the environment, according to The Associated Press.

Tuesday night, Rep. Robin Vos, R-Rochester, who co-chairs the state’s Joint Finance Committee, released a statement criticizing Senate Democrats for failing Wisconsin refusing to see a clear need for jobs in the state.

Gogebic wanted to dig an open-pit mine in Iron County. The company has reported it would have created about 700 jobs with the first phase of the mining operation lasting 35 years. It said the average base salary of a mine worker would’ve been $60,000.

After the failed vote, Sen. Majority Leader Scott Fitzgerald pulled the bill back for Republicans to continue working on the measure, but with the legislative session ending Thursday, legislators are running out of time to approve changes.

But then again, with Gogebic’s announcement Tuesday night, the legislators might not be compelled to seek a compromise on the bill.

A bill Republicans say would streamline the permit process for building projects near navigable waterways has made its way to the Assembly Floor.

Assembly Bill 421, which would add time limits for the state Department of Natural Resources to respond to requests for marine construction, is slated for debate on Tuesday when the Assembly reconvenes.

I’ve covered various forms of this legislation during the past nine months, beginning with a similar proposal from state Rep. Jim Steineke, R-Kaukauna, in June.

I followed up again on the bill in September, but by winter the Republican-controlled Legislature had switched to a more comprehensive form of the bill introduced by Sen. Neal Kedzie, R-Elkhorn.

There was some confusion at the time as to why Kedzie’s bill popped up in December, covering changes already proposed by Steineke. I wrote about Kedzie’s version late last year HERE.

Steineke said his bill had been incorporated into Kedzie’s, though he didn’t completely understand why the Legislature couldn’t move forward with his bill.

At the time, Kedzie said his proposal had been part of a year-long initiative to make changes to the DNR’s permitting process and he wanted his version to go forward instead.

While the Assembly will take up Kedzie’s proposal Tuesday, the state Senate has yet to schedule its version of the same proposal, Senate Bill 326.

VIEW THE LEGISLATURE’S CALENDAR

The state Assembly passed contentious legislation Tuesday night that will eventually help builders.

The Assembly passed Senate Bill 368, which makes it easier for developers to build in wetlands, despite amendments and objections from many democrats.

Senate Bill 368 creates a 30-day permit review standard for the state Department of Natural Resources when considering applications to build in or near a wetland. The bill, which was authored by Sen. Neal Kedzie, would also allow the DNR to consider mitigation as a first option when reviewing applications, rather than a last resort. Mitigation occurs when an applicant agrees to restore or create a wetland when damaging another.

State mitigation law requires restoration or improvement of 1.5 acres of wetland for every acre disturbed by a permitted project.

Democrats were not happy with the bill in its original form. An amendment proposed by Rep. Penny Bernard Schaber, D-Appleton, would have made any project that builds in a wetland ineligible for any financial assistance or loans from the state.

Rep. Brett Hulsey, D-Madison, offered another amendment that would’ve required the DNR to analyze the risk of flooding of every individual permit building applicant that will affect more than one acre of a wetland in vulnerable areas.

“Quit kicking flood victims in the teeth every chance you get,” Hulsey told the Associated Press. “Because that’s all this bill does.”

The debate hit a lull in the Assembly after only a half-hour. Speaker Pro Tem Bill Kramer, R-Waukesha, called for a voice vote. Republicans control the chamber, reducing the vote to little more than a formality. No Republicans even rose to defend the measure.

Democrats demanded Republicans redo the vote with a roll call to get every lawmaker’s position on record. Rather than vote again on the floor, Kramer agreed to accept a list of how each Democrat would have voted and record it in the Assembly journal.

The proposal now heads to Walker, who has supported the measure, for his signature.

The state’s budget committee approved a late addition to the state’s 2011-13 building program Wednesday afternoon.

Gates Hall at the Wisconsin Veterans Home in Union Grove, a 42-bed assisted living facility that has been vacant since August, will be converted into a 38-bed skilled nursing facility under a proposal unanimously approved by the Joint Finance Committee.

The $4.9 million project, which must be approved by the full Legislature and signed off by Gov. Scott Walker, would provide beds to more than 20 veterans on a waiting list to enter Boland Hall, a 120-bed skilled nursing operation that has been at capacity for several years, according to state Department of Veterans Affairs officials.

The state’s building program is typically settled every two years in the Legislature’s biennial budget. Senate Bill 442 and Assembly Bill 546, proposed by Sen. Van Wanggaard, R-Racine, and Rep. Robin Vos, R-Rochester, respectively, are required for the project to be added to the building program before the end of the session this spring.

If the bills aren’t approved by the Legislature, the project would be put on hold for at least 18 months, officials said, meaning Gates Hall would be vacant and underutilized.

Sixty-five percent of the project will be paid with federal grant money, while the remainder will be paid using existing program revenue from the DVA, according to a Legislative Fiscal Bureau analysis.

In a statement, Wanggaard said he expected the full Senate to consider his bill next week, and then the proposal would move on to the Assembly for review.

Protestors chant in the state Capitol rotunda during Gov. Scott Walker's address to a joint session of the Legislature on Wednesday in Madison. (AP Photo/Andy Manis)

Jobs, schools, taxes and protesters were all the rage – and there was rage – during Wednesday night’s State of the State speech from Gov. Scott Walker.

But construction was largely glossed over by the state’s leader during his annual address.

Walker entered to some boos, and a chorus of cheers, before delivering the 40-minute speech.

As was expected, the governor focused plenty on jobs, pointing out how the state’s unemployment rate has improved since he took office last year, and he reminded the crowd several times he inherited an economy that had lost 150,000 jobs during three previous years.

While he could boast about create jobs, thousands in fact, the governor is still a far cry from the 250,000 he pledged to create over his four-year term.

Walker trudged through a handful of disruptions from protesters shouting at the governor during his address. I counted at least five protesters who had to be removed due to the angry outbursts, and I’m sure the shouting came through on the television broadcast as well.

In fact, I wouldn’t be surprised if the microphones picked up the shouting from the dozens of protesters congregating in the Capitol’s rotunda during the address. Yelling, singing, banging on drums and a foghorn gave the media, legislators and audience background noise during the speech.

But since I write for a newspaper focused on the construction industry, Walker didn’t provide me with a ton of content in which to react (or write about).

The following is one of the few times he mentioned construction at all during the address, and it was merely looking back on the year prior, not how the governor wants to handle the topic in the year ahead:

“Employers also told us that they need a 21st century infrastructure system to drive economic development. After the previous administration raided more than a billion dollars out of the Transportation Fund, I took action to restore our commitment to good roads, freight rail and strong ports. We know that a strong transportation system helps manufacturers and farmers get product to and from market and it keeps good people on the job building that infrastructure.”

Also, Walker called on the Legislature to pass the controversial mining bill that looks to streamline the permit process to clear the way for a project in the Northwoods that would create 700 jobs.

But with one tumultuous year down for the governor, he has another in front of him, so there’s uncertainty how much legislative work can be accomplished by the spring before all the attention moves to the looming recall election.

With his second address behind us now, what did you think of what Walker had to say? Comment on this blog or send me an email at adam.wise@dailyreporter.com.

With Gov. Scott Walker primed to give his second State of the State address Wednesday night, the governor’s press office released portions of what Walker will say.

Below are the portions released to the public ahead of the 7 p.m. address:

“When I addressed you in this chamber last January, Wisconsin had suffered through three years of 150,000 of our fellow citizens losing their jobs. The unemployment rate was 7.5 percent.  And after years of tax increases and budget tricks, Wisconsin faced one of the largest budget deficits in the country.

“Now, our unemployment rate is down from a year ago.  In fact, it’s the lowest it’s been since 2008. We are turning things around. We are heading in the right direction.

“During the past year, we added thousands of new jobs. And we balanced the state budget. We balanced it — without raising taxes; without massive layoffs; and without budget tricks; all of which allowed us to put more than $1.2 billion of new state money into Medicaid programs like Badgercare and FamilyCare.”
–
“To create more jobs, employers told us they also need help cutting through the red tape of government. Tonight, I’m announcing new members to the Small Business Regulatory Review Board which has the authority to review every rule in all of our state agencies. I will direct our agencies to work with them to remove antiquated and unnecessary regulations that pose a threat to creating new jobs.”
–
“For the five years prior to last year, the average school tax levy increased $220 million per year. Our reforms led to the first decrease in the school property tax levy in six years. The total school tax levy actually went down by more than $47 million.

“That means real money in the hands of real people. People like Pam Petry of Rice Lake. Mrs. Petry saw her property tax go down by more than $100 this year. Or people like Gail Griswold of West Salem who was surprised to see her bill go down, too.”
–
“Last year, I appointed the bipartisan Commission on Waste, Fraud, and Abuse. The members turned in their final report earlier this month. In it, they identified over $400 million in savings for the taxpayers.

“We’ve already implemented some of the recommendations from this report. And to date, these reforms have saved taxpayers tens of millions of dollars. That’s a great start.

“But identifying waste isn’t enough; we need to eliminate it. To that end, I’m announcing the Waste, Fraud and Abuse Elimination Taskforce charged with the responsibility to follow through on the report.

“Because I respect the hard working people of Wisconsin, I will continue to be a good steward of the taxpayers’ dollar. Eliminating waste, fraud and abuse is a top priority of my administration.”

Last year didn’t contain the economic recovery many construction officials hoped for, and it showed in the numbers.

According to state construction employment figures released by the Associated General Contractors of America on Tuesday, Wisconsin lost nearly 4,000 industry jobs from December 2010 to December 2011.

While December’s job figures in Wisconsin saw more than a 2 percent uptick in employment from November (83,900 jobs to 85,800), the numbers were still down compared to those in December 2010′s total of 89,600, according to the report.

Tuesday’s job numbers come a day after AGC released a study stating 57 percent of Wisconsin construction firms responding to a questionnaire plan to hire more employees in 2012. But Ken Simonson, chief economist for AGC, told me he doesn’t expect this to be the beginning of a resurgence for the state.

“Wisconsin contractors probably feel they hit bottom and will be able to pick up the hiring pace in 2012, even though I don’t think the state will be a shining star,” he said. “You don’t have any real strong drivers for construction activity; certainly not public construction. And you’re not getting an influx of population for any exceptional home building.”

The 4.2 percent job loss in 12 months ranks Wisconsin 46th in the nation. New Mexico ranked last with a 13.1 percent job loss over 12 months (43,900 jobs in 2010 to 37,900 in 2011), while North Dakota ranked first with a 24.4 percent increase from 20,900 to 26,000.

As for other states in the Midwest, Michigan saw its job totals increase slightly from 124,500 to 125,500 year over year; Illinois increased from 191,500 to 194,900; and Minnesota increased slightly from 82,900 to 83,200.

In all, construction employment increased year-over-year in 28 states, according to the report, the largest number since November 2007.

VIEW THE NUMBERS

Three state Republican legislators are seeking support for a bill that would impose many changes to the way projects in or near wetlands are regulated.

In an email to legislators Monday morning, state Sens. Neal Kedzie, R-Elkhorn, and Dale Schultz, R-Richland Center, and Rep. Jeff Mursau, R-Crivitz, were seeking cosponsors on a bill that would include establishing deadlines for the Department of Natural Resources when considering permit applications near wetlands, create an inspection and enforcement authority for projects and also allow general permits for minor projects.

Kedzie and Mursau are the same legislators attempting to reform the way state considers permits for projects in or near navigable waters.

Legislators have until Friday to co-sign on the proposal before Republicans will likely officially introduce the bill.

State Department of Administration Secretary Mike Huebsch permanently has appointed Summer Shannon-Bradley as the Division of State Facilities administrator.

Shannon-Bradley, who also serves as secretary to the state Building Commission, has been interim administrator since August, when Jeff Plale left the job to become the state’s railroad commissioner.

The DSF administrator is the top official in the Department of Administration’s building division, which manages hundreds of millions of dollars a year in construction projects.

The announcement was made in a Thursday morning email attributed to Huebsch and sent to all DOA employees. Messages left for Shannon-Bradley and the press offices of both Gov. Scott Walker and the DOA were not immediately returned.

Shannon-Bradley served as a staff member for Plale from 2007 to 2011 while Plale was a state senator. She also was a clerk for the Senate Committee on Commerce, Utilities, Energy and Rail.