Special Report: Measuring the impact of the Great Recession on bank lending

After the nation’s financial sector nearly collapsed in 2008, bank lending to Fox Valley small businesses declined sharply as the local credit market essentially froze, according to data from the federal government.

In the Appleton-Neenah-Oshkosh metro area, small business lending fell from $542 million in 2007, when the Great Recession started, to $328 million in 2009, when the recession ended, according data available through the 1977 Community Reinvestment Act, which requires large and mid-size banks to report small business loans.

Lending slipped again in 2010 — the latest year for which data is available — to $317 million, off about 34 percent compared with inflation-adjusted lending in 1997, the earliest year for which data is available.

The data provide a powerful illustration that the national financial calamity had deep and protracted reverberations in the Fox Valley.

“It confirms what you’ve heard small businesses saying — they just didn’t have access to credit at all,” said Kevin Quinn, an economics professor at St. Norbert College in De Pere. “In a sense, it’s our lost weekend. This is time we’re never going to get back. We were less than stuck in neutral — we went backwards.”

But Quinn and other economists are already seeing signs a new life in the national economy, which likely indicates a turnaround in the Fox Valley’s commercial and industrial credit market as well.

“If you look at the economic data — not that everything is fully recovered — but it’s definitely stabilizing (or) improving compared to what it was a year or two ago,” said Thane Bublitz, senior equity research analyst for Thrivent Financial for Lutherans in Appleton. “Commercial lending (nationally) has been on the uptick quite a bit in recent quarters.”

Credit crunch

After the housing bubble burst in 2008, banks became increasingly reluctant to add risky loans to their balance sheets and grew more scrupulous in their lending practices, which caused credit markets to tighten across the country.

But Bublitz said other environmental factors squeezed lending practices even further.

“There was a period of time when the demand for commercial loans just wasn’t there,” Bublitz explained. “Businesses just were not interested in borrowing, and on top of that the banks had restrictions on how much they could (loan).”

As the economy contracted, small businesses had little reason to expand by borrowing money.

“When there’s less demand, there are obviously (fewer) loans for banks to choose from, and it’s tougher to make good loans,” Bublitz said.

At the same time, he said, banks faced “competing mandates” from regulators.

“On the one hand, (banks) were really forced to pull back on some of their lending because the regulators wanted them to build capital,” Bublitz said. “On the other hand, they were being pressured to increase lending.

“There was an aspect that the banks were lending less because they perhaps didn’t want to use their capital in that way because they saw the loans being riskier,” he continued. “But there were also other factors in the environment that were really making it less likely for them to lend.”

Looming turnaround

Though economists say demand for commercial loans was stronger in 2011 and will continue to ramp up in 2012, they caution that an easing in the credit market depends largely on the strength of the broader economy.

“We need the larger, big machine of this economy to kick in,” said Gary Vaughan, a small business consultant and lecturer at Lawrence University in Appleton. “Until that happens, we’re all going to survive. We’re not going to flourish — we’re going to survive.”

Stephen Tramp, market president for Associated Bank in the Fox Valley, said many small businesses in the region “rely on the trickle-down effect from the large companies making capital purchases.

“This is beginning to improve and should increase throughout 2012,” Tramp said.”

But economic growth may be hampered, at least in part, by lingering roadblocks to capital and investment.

“If you don’t have banks willing to lend and if you don’t have individuals and businesses willing to expand or start new businesses, where’s the growth going to come from?” St. Norbert’s Quinn asked. “When we have recessions that are the result of credit crises, they tend to be deeper and they tend to take a lot longer to get out of. This is exactly why.”

To break that cycle, Quinn said, the economy needs a boost in confidence.

“It’s between the ears; it’s not the bank account,” Quinn said. “You have to have actual people who think that it’s worth taking a chance to invest their life savings and to convince loan officers who live in the same world we do — they’re just as scared as anybody else — to take a chance.”

Quinn placed blame for the lack of confidence squarely at the feet of state and federal politicians, who he said have created unnecessary national crises, such as the debate about raising the national debt limit and recent tensions with Iran.

“Honestly, it’s been one body blow after another for quite a long time now,” Quinn said. “All that stuff kills us. It creates a very uncertain environment.”

Bublitz said economic indicators suggest some degree of confidence may have already returned as the economy picks up steam.

“The economic data is improving,” Bublitz said. “Businesses are seeing more opportunities for expanding and they need to borrow to grow their business.”

The Wisconsin Bankers Association released a report on Monday that suggests local bankers feel increasingly optimistic about the credit market this year.

In a survey of 144 bank executives from across the state, about 99 percent expect demand for commercial loans will either grow or hold steady over the next six months.

“The fact that banks are poised for growth indicates that the industry is stabilizing and that both the economy and the banks in Wisconsin are getting stronger,” Rose Oswald Poels, WBA president and CEO, wrote in a statement.

“There is plenty of money available for quality small businesses that have a solid plan and good management,” Associated Bank’s Tramp said. “(We) and many of our competitors have been through the rough part of the cycle and are once again looking for growth. Companies that have solidified their businesses, based on the uncertainty in the last couple of years, should have no problem finding banks willing to lend to them again.”

About this report
The Great Recession, from 2007 to 2009, and its fallout dramatically changed lending practices by banks. To determine the severity of the
impact on the Fox Valley, The Post-Crescent analyzed data made available to the public by the federal government.

SEARCHABLE DATABASE: Click on this story at postcrescent.com to search for details about lending by all banks in Calumet, Outagamie and Winnebago counties from 1997 through 2010.

WHAT DO YOU THINK? Chat real-time on postcrescent.com at 2:30 p.m. Monday with reporter Michael Louis Vinson about the dramatic drop in loans to local small businesses following the financial sector free fall of 2008, and what it means to Fox Valley workers, employers and consumers.

By the numbers
Congress enacted the Community Reinvestment Act in 1977 to encourage and monitor business, farm and community development lending in moderate- and low-income neighborhoods. State banks, national banks and savings associations that have at least $1.1 billion in assets are
required to report the number of small business loans made in a given year and the total amount of those loans.
Both the number of small-business loans and total amount of those loans fell sharply in the Appleton-Neenah-Oshkosh metro area after the 2008 financial-sector crash. What the data show from 1997 through 2010, the earliest and latest years for which such information was available:

Year, Total loan amount, Total loans
» 1997, $356 million, (4,317)
» 1998, $483 million, (5,077)
» 1998, $478 million, (5064)
» 2000, $405 million, (5,805)
» 2001, $523 million, (7,620)
» 2002, $521 million, (9,310)
» 2003, $580 million, (8,724)
» 2004, $540 million, (8,524)
» 2005, $521 million, (8,875)
» 2006, $519 million, (10,826)
» 2007, $542 million, (12,664)
» 2008, $524 million, (10,028)
» 2009, $328 million, (4,609)
» 2010, $317 million, (4,238)
Source: Community Reinvestment Act reports

Biggest loaner

Milwaukee-based M&I Bank accounted for about 37 percent of the small-business loans approved in the Fox Valley in 2010, the latest year for which data was available.
» 1. M&I Bank: $117 million (522 loans)
» 2. U.S Bank: $50 million (970 loans)
» 3. Associated Bank: $35 million (192 loans)
» 4. Johnson Bank: $21 million (72 loans)
» 5. Wells Fargo Bank: $19 million (402 loans)
» 6. Chase Bank: $19 million (628 loans)
» 7. Baylake Bank: $10 million (53 loans)
» 8. Citizens Republic Bancorp: $9.5 million (65 loans)
» 9. Community Bank & Trust: $6.5 million (40 loans)
» 10. North Shore Bank: $5 million (15 loans)
Source: Community Reinvestment Act reports

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

APPLETON — Local fire and emergency management officials have been racing to upgrade their radio systems by Jan. 1, 2013, to meet new federal guidelines.

More than two dozen agencies in Outagamie County are expecting a $1 million boost from the federal government that will help them purchase some of the needed equipment.

“Radio communication is critical for responders — whether it’s fire, EMS or law enforcement,” said Mike DeBruler, assistant fire chief in Grand Chute. “With the change of technology, the increase in call volumes and the increase in radio traffic, the new radio system will not only meet the challenges of today, but will (also) help us meet the challenges of the future.”

New radio frequency guidelines from the Federal Communications Commission require public safety agencies across the nation to switch to a broader, more agile radio system by 2013.

Fire and EMS agencies in Outagamie County will need to upgrade their frontline radio equipment to work with that new system.

The grant from the Federal Emergency Management Agency and the Department of Homeland Security will help the departments across Outagamie County pay for hundreds of new portable radios, mobile radios, data radios and pagers. The total cost for radios and pagers is estimated at $2.3 million.

“The overall cost of the radio system is significantly higher because that’s all the infrastructure — the towers, the receivers, the repeaters, the controllers,” said Eugene Reece, deputy fire chief in Appleton.

Reece said the system upgrade would improve radio coverage throughout the county, enhance radio coverage inside buildings and unclog the bandwidth constraints that have choked the current system.

“We had municipalities where firefighters within their own townships were not receiving pages,” Reece said. “We saw that as a problem. … The new radio system is designed in a new format that provides better coverage throughout the county.”

Kaukauna Fire Chief Paul Hirte said the new system would improve “our ability to communicate within the county to our 911 dispatch center.”

“We’ll have more channels to communicate on,” Hirte said. “It will give us greater coverage to speak not only to other responding agencies, but (also) to communicate amongst ourselves while on the scene of an emergency call.”

Grand Chute’s DeBruler said the agencies haven’t set a target date for when they will buy the radios and pagers.

“We’re now going to start looking at that equipment itself and state the procurement process,” DeBruler said. “But as far as the actual go-live date of the new system, we don’t have that yet.”

When the radios and pagers arrive, DeBruler said most residents likely won’t notice the change.

“The benefit is going to be behind the scenes, specifically for incident command and firefighter safety,” DeBruler said. “Residents are still going to receive the benefit of emergency services regardless of their need. They’re going to get professional, courteous personnel showing up to help them with whatever they need.”

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

FEMA GRANT

Twenty-six fire departments and Emergency Medical Service agencies in Outagamie County received a $1 million grant from the Federal Emergency Management Agency to upgrade a slate of mobile radios, portable radios, data radios and pagers. The upgrade will coincide with a switch to a new radio system that uses a more expansive and nimble frequency range.

The participating agencies are:

» Appleton Fire Department (98 personnel)

» Bear Creek Fire Department (36 personnel)

» Black Creek Fire Department (37 personnel)

» Black Creek Rescue Service (27 personnel)

» Buchanan EMS Rescue (8 personnel)

» Buchanan Fire & Rescue (31 personnel)

» Center Fire Department (43 personnel)

» Combined Locks Fire Department (26 personnel)

» Dale Fire & Rescue (32 personnel)

» Ellington Fire Department (29 personnel)

» Freedom First Responders (11 personnel)

» Freedom Volunteer Fire Company (34 personnel)

» Grand Chute Fire Department (71 personnel)

» Greenville Fire-Rescue (56 personnel)

» Kaukauna Fire Department (37 personnel)

» Kimberly Fire Department (26 personnel)

» Little Chute Fire Department (48 personnel)

» Nichols Rural Fire Department (39 personnel)

» Osborn Fire Department (35 personnel)

» Outagamie County Regional Airport (9 personnel)

» Seymour City Fire Department (29 personnel)

» Seymour Rescue (23 personnel)

» Town of Seymour Volunteer Fire Department (32 personnel)

» Shiocton-Bovina Fire Department (46 personnel)

» Vandenbroek-Kaukauna Fire Department (39 personnel)

» Vandenbroek-Kaukauna First Responders (14 personnel)

Source: FEMA grant application

APPLETON — U.S. Rep. Tammy Baldwin, a Democratic candidate for the U.S. Senate seat held by retiring Sen. Herb Kohl, defended the controversial health care reform law President Barack Obama signed in 2010, calling it “a good first step.”

“This is a very complicated matter, but I think we’ve got a good start,” Baldwin said during an hour-long Wednesday interview with The Post-Crescent editorial board.

As the only Democrat in the race, Baldwin’s support of the president’s signature legislative accomplishment has come under fire from would-be Republican challengers who argue the health care reform law is unconstitutional and should be repealed.

“I wouldn’t repeal the Affordable Care Act,” Baldwin said. “I wouldn’t throw the baby out with the bathwater. I would perfect it as we move forward.”

Baldwin, 49, praised a provision in the law that prohibits insurance companies from denying coverage to children who have so-called “pre-existing” health conditions, and touted a provision she authored that allows young adults to stay on their parents’ insurance plans until age 26.

“(About) 2.5 million young people have affordable insurance that didn’t have any coverage at all before that was passed,” Baldwin said. “There’s a long way to go in fully implementing (the law and) reining in costs. But those are two provisions that are saving millions of Americans a huge amount of money and giving them peace of mind.”

Baldwin, who lives in Madison and has represented the 2nd Congressional District since her 1998 election, supported including a so-called public option in the health care reform package and promised to fight for its adoption in the Senate, listing Wisconsin’s SeniorCare prescription drug program as “a perfect example of how a public option works.”

“We’re the only example in the country,” Baldwin said. “It’s successful. It works. It’s driving prices down. … Seniors like it, and the private insurance market isn’t going away … It’s a win-win-win situation.”

Middle class matters

Baldwin said she felt compelled to join the race to “fight for working families, middle class families and people who want to revive the American Dream and make sure that their children can do better than they did.”

Baldwin, who served in the state Assembly, on the Dane County Board and on the Madison Common Council before her election to Congress, cast herself as the heir-apparent to Kohl’s campaign moniker, “Nobody’s senator but yours.”

As she toured Wisconsin while Congress was in recess, Baldwin said she sensed “incredible frustration with the disconnect between the policy debates going on in the city of Madison and Washington and their real lives.”

Baldwin said Wisconsinites told her, “We want somebody fighting for us. Not for Wall Street. Not for the Tea Party. Not for this interest, not for that interest. We want somebody who’s going to go there and fight for us.”

She pledged to be that voice in the Senate.

“There are some bad policies that we’ve had for a while that have led to a longer-term decline of the middle class,” Baldwin said. “Growth is our best way out of this mess that we’re in. As we look at places to belt-tighten to get (the federal budget) into greater balance … we (shouldn’t) neglect investments in education, infrastructure and innovation.”

Partisan gridlock

Baldwin castigated an “extreme” Tea Party movement no fewer than four times during the interview, and blamed Tea Party-affiliated lawmakers for partisan gridlock in Madison and Washington, D.C.

“An extreme Tea Party faction has taken office in the last two years and really brought progress to a halt and really has decided that partisanship is coming before the business of the people,” Baldwin argued. “It’s been shocking to me. … I’m very displeased about it, and I’m hoping that we’ll see some reaction to that in the 2012 election.”

“I understand the frustration with the dysfunction in the Legislature at the state level, the dysfunction in Congress,” Baldwin continued. “Tea Party-affiliated new members of the House and Senate want to go about (fixing the nation’s problems) by abolishing government. I want to go about it by making government work for the people again.”

But Baldwin also celebrated her own record of working across the aisle with Republicans — including Gov. Scott Walker when the two served in the state Assembly together in the 1990s — and vowed to bring that same bipartisan spirit to the Senate.

“Every bill that Tammy Baldwin ever passed as a state legislator was signed into law by a Republican governor,” Baldwin said. “More of my legislation at the national level has been signed into law by (former Republican President) George W. Bush than by Barack Obama. I work across party lines very well … I know that we can make this functional again.”

Senate campaign

By netting key endorsements from Kohl, former U.S. Sen. Russ Feingold and well-heeled interest groups such as EMILY’s List, Baldwin has effectively elbowed other Democrats out of the primary contest.

Though she is unlikely to weather intraparty criticism before the Aug. 14 primary, Baldwin said she will be ready to fend off attacks from the eventual Republican nominee.

“There’s a lot of testing that goes on on the campaign trail, whether you have an opponent or not,” she said.

Former Gov. Tommy Thompson, former U.S. Rep. Mark Neumann, state Assembly Speaker Jeff Fitzgerald and state Sen. Frank Lasee are seeking the GOP nomination for the seat.

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

Tammy Baldwin

» Party affiliation: Democrat

» Born: Feb. 11, 1962, in Madison

» Residence: Madison

» Education: Smith College (Bachelor’s degree in mathematics and government, 1984); University of Wisconsin-Madison (J.D., 1989)

» Political experience: Elected to U.S. House of Representatives in 1998 and reelected in 2000, 2002, 2004, 2006, 2008 and 2010; Elected to state Assembly in 1993 and reelected in 1993, 1995 and 1997; Elected to Dane County Board of Supervisors in 1986 and served until 1994; Elected to Madison Common Council in 1986

» Professional experience: Attorney and public policy analyst

» Campaign website: www.tammybaldwin.com

» On Twitter @TammyBaldwinWI

Source: Project Vote Smart, www.votesmart.org

APPLETON — Silently but swiftly, dozens of educators filed out of Wilson Middle School’s cafeteria Monday night mere moments after the Appleton Board of Education unanimously approved a controversial employee handbook that removes seniority as the sole basis for determining teacher assignments and filling vacancies.

The revamped policy — spurred by changes to state laws governing collective bargaining powers for most public-sector employees — gives administrators the flexibility to consider a range of criteria when assigning teachers or filling vacancies.

In addition to length of service, administrators will be able to consider practical experience, work portfolios, testimonials and special skill sets — a significant departure from the seniority-dependent framework that has been in place since 1978.

“I doubt that there is an active educator in this room tonight that has ever worked under any other system than the seniority system,” said board member Jeffry Knezel. “This is a major change. We understand that. (But) you can look at change and be fearful of it, or you can look at change and embrace it. I’m asking all of you to think about embracing this change rather than fearing it.”

The changes will become part of the employee handbook once the current master agreement with the Appleton Education Association expires in June.

While districts such as Kaukauna and Neenah already had employee handbooks in place this fall, Appleton and other school systems that extended their union contracts through this school year are writing manuals now.

Eliciting a standing ovation from the audience, Hank Krokosky, executive director of Wisconsin Education Association Council-Fox Valley, objected to the policy change and asked the board to review it further.

“We were assured there would be balance in the provision,” Krokosky said. “Unfortunately, we find the document that comes forward to the board this evening to not be balanced. It basically takes my membership out of the equation and it puts pretty much sole control in the hands of the administration.”

Krokosky called the new process — which relies in part on interviews — “very subjective.”

“Why do you want to upset the membership?” Krokosky implored. “Why don’t you fine-tune things, rather than throwing out the whole thing?”

Board member John Mielke, speaking barely above a whisper, told the audience he and his colleagues understood their concerns.

“I think our board is a kind and compassionate board making tough decisions,” he said. “At the end of the day, we’re all concerned about giving the best education to our kids. Without our teaching staff, we’re dead in the water … We’ve spent (numerous) hours trying to figure out how to do the best thing for all concerned.”

Katie Holtz, a parent who initially rose to address a separate topic, seemed upset by the tension in the room.

“As a parent, it’s kind of scary to see all these teachers here and you know they’re worried about all these things in the school and their jobs,” Holtz said. “You’re really kind of worried as a parent as to what kind of education your kids will receive in the future … Where (teachers’) attitudes and their thoughts and their values are going to be — if they’re really going to be in the right place teaching my child.”

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson; Kathy Walsh Nufer contributed to this report 920-993-1000, ext. 290, or knufer@postcrescent.com

APPLETON — By waiting until the first week of January to step down as Appleton’s police chief, David Walsh earned a payout of nearly $10,400 for vacation time available to him in 2012.

That’s in addition to nearly $6,500 Walsh received for vacation time he did not use in 2011, plus health and dental benefits for the month of January. The city also will contribute $160 to Walsh’s pension benefit for the two days he worked in January.

City Human Resources Director Sandy Neisen told The Post-Crescent the resignation package for Walsh, who stepped down Jan. 3 to take a post in the private sector, will cost the city $18,172.03.

“Most (employee departures) occur shortly after the first of the year because it doesn’t pay to leave in the end of December,” Neisen said. “(To receive vacation payout for the new year), they have to actually work one day into the new year.”

Neisen said Walsh was eligible for 192 vacation hours in 2012, or about five weeks, effective Jan. 1. All of the 2012 vacation was earned in his position as police chief.

Walsh rolled over 120 unused vacation hours from 2011. He earned 80 of those as police chief and 40 as interim IT director, a role he took on in May after the former director retired. Walsh relinquished that role on Dec. 22.

“Typically, you only roll over 80 hours — (that’s) the max that you can roll over,” Neisen said. “Because of the demands (of the IT role) and some staff turnover, (Walsh) really didn’t get to use the vacation that he had planned. So the mayor made an exception to allow him to roll over 40 extra hours than what would have been the normal rollover because of that IT responsibility.”

Had Walsh worked any days in 2012 as IT director, he could have earned 2012 vacation time for that position, too.

A committee of senior city officials — which included Walsh — tightened the vacation rollover rules last year after Gov. Scott Walker signed a law that changed collective bargaining powers for most union-represented public sector workers.

Under the new rules effective in 2012 for employees who retire in 2013 or after, city employees will be able carry over only 40 hours of unused vacation time into the subsequent year.

Walsh, who unexpectedly announced Nov. 17 his plan to resign, was replaced by Deputy Police Chief Pete Helein. Walsh took over as police chief in July 2007.

In an email exchange this week, Walsh acknowledged he timed his departure to maximize his vacation payout.

“I chose the third of January to leave so that I would not lose all of the vacation I earned in 2011,” Walsh wrote. “It seemed a bit nonsensical to me to leave in late December (when I had already planned a vacation) and not get the vacation I had earned by working all of 2011. Yes, it was deliberate on my part.”

Mayor Tim Hanna said the city had no power to determine Walsh’s resignation date.

“The day he chooses to separate we don’t really have a lot of control over,” Hanna said. “When someone says, ‘This is when I’m leaving,’ you can’t say, ‘No, you’re not. You have to leave earlier.’ … We don’t have a choice. We can’t not pay out his vacation.”

The Post-Crescent asked Neisen and her staff to provide records of the number of employees who resigned or retired at the beginning of 2011 and the beginning of 2012. The P-C also asked for the average vacation payout. That information was not immediately available.

WALSH PAYOUT

Former Appleton Police Chief David Walsh earned a payout of $18,172.03 when he resigned Tuesday. Almost $6,500 of the total was from vacation accrued but not used in 2011, the rest comes from 2012 vacation time and medical, dental and pension benefits earned in January.

The breakdown:

» $10,385.28 — Value of 2012 vacation time (192 hours at $54.09 per hour)

» $6,490.80 — Value of unused 2011 vacation time (120 hours at $54.09 per hour)

» $1,037.43 — Value of city cost for January medical benefits

» $98.41 — Value of city cost for January dental benefits

» $160.11 — Value of city cost for pension benefits for Jan. 2 and Jan. 3

Source: Appleton Human Resources Director Sandy Neisen

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

If she wins the U.S. Senate seat held by retiring Sen. Herb Kohl this fall, U.S. Rep. Tammy Baldwin would break a glass ceiling in Wisconsin, becoming the first woman to represent the Badger State in the upper chamber.

Wisconsin voters have never sent a woman to the Senate or elected a female to serve as governor — a gender gap that’s mirrored in the state Legislature, where women have never held more than 28 percent of the seats, and in Congress, where only two Wisconsin women have served.

“We have this difficulty of making the leap to the state Capitol or to the federal government, and those are really important leaps to make,” said former Lt. Gov. Barbara Lawton, who in 2002 became the first woman elected to that post. “The lack of parity and genuine sharing of power in decision-making costs all of us a lot in every aspect of our lives.”

Women hold about a quarter of the seats in the state Legislature, down to 34 seats from a 2003 high of 37 seats, according to a 2010 report by the Wisconsin Women’s Council.

That’s barely above the national average. Women hold about 24 percent of the seats in state Legislatures across the country.

The gender disparity is also stark at the local level in the Fox Valley.

In Appleton, alderwomen Kathy Plank and Cathy Spears are the only women on the 16-member Common Council. In Green Bay, Ald. Amy Kocha is the only woman on that 12-seat council.

“There are a few woman who are very visible in politics who give the sense that there are lots of women in elective office, but in fact there are really quite few,” said Debbie Walsh, director of the Center for American Women and Politics at Rutgers University in New Jersey.

“You have the marquee names like (U.S. Secretary Of State) Hillary Clinton or (U.S. Rep.) Michele Bachmann,” Walsh continued, “but when you dig down a little further you discover that 83 percent of Congress is male or 76 percent of all state Legislative seats are held by men. The numbers are not there.”

Invitation needed

The gender imbalance persists in Wisconsin and across the nation, Walsh said, because women often run for elective office only after they have been asked to do so.

“Men are much more likely to be self-starters,” Walsh explained. “They wake up one morning, look in the mirror and say, ‘I’d be a great state legislator,’ and they just run. Women don’t necessarily do that.”

Lawton said she waited to be invited to run for office.

“Most women come into the political realm because of a single issue, not because it is their life’s ambition to make their life’s work in politics,” Lawton said. “It’s not a natural inclination because it has been a boys game.”

Walsh explained that party leaders often play an outsized role in recruiting women to run for office.

“If both of the political parties really wanted more women in elective office, we probably would have more women because the parties would be doing more asking,” Walsh said. “That’s a powerful ask when a party leader comes to you.”

State Rep. Michelle Litjens, R-Vinland, said she received positive encouragement from party leaders at the county level and was asked to run for office, an appeal she initially rejected.

“When I first started volunteering politically, I always had women leading the way for me,” she said. “The political volunteers who ran the county parties that I dealt with on a regular basis were predominately women who encouraged me to keep going and try to make a difference as best as I could. I don’t think I ever felt I wasn’t encouraged to run for office.”

Role models needed

Lawton suggested Litjens’ experience is rare, and she lamented the absence of female role models in Wisconsin politics for young women.

“If nobody’s visible to you that you can connect to or compare to your life, then you don’t see it as a legitimate place for you,” Lawton argued.

Despite the dearth of female elected officials in Wisconsin, Lt. Gov. Rebecca Kleefisch said young women could turn to other role models for inspiration and guidance.

“As far as female role models in politics, I suppose you could say I really have none,” Kleefisch said. “(But) my dad has always been my role model. He was a sales and marketing (executive) … and I always wanted to go into sale and marketing, and that’s what I do every day. I am selling the economic development climate of the state of Wisconsin … It is a good opportunity to learn from others’ mistakes regardless of gender.”

The role of family

Walsh said women also weigh family considerations and child-care costs more heavily than men do.

“Women will run when they’re older,” she said. “We know that for men, having young kids is actually an asset when you’re running for office … But for a woman is you have young children and you’re running for office, people ask you, ‘Who’s going to take care of your kids if you get elected?’ A lot of women end up running when they’re older rather than when their kids are young, (which) means their trajectory in politics is shorter.”

Lawton said a lack of access to high-quality, affordable childcare sometimes restricts women from entering public life.

“If you serve in the Legislature either at the state level or at the federal level, you’re going to need overnight babysitters,” Lawton said. “Certainly a state legislator’s salary isn’t going to pay that … As more women necessarily have to be in the workplace and more families absolutely have to have two incomes and more women are heads of households, they can’t afford it.”

Litjens also argued women may be more hesitant to expose their families to public scrutiny and media attention than men.

“You are in the public eye,” Litjens said. “Women react to their family being attacked differently than men. You’re not as likely to put yourself in that position as a woman.”

Kleefisch said her background as a TV journalist helped her overcome that obstacle.

“The public life has always been a part of who I am,” she explained. “Right out of college, I went straight into an industry where I was a public figure. I’ve never known an adult life outside of that … There aren’t a lot of women who have that unique background.”

To that end, the Center for American Women and Politics is actively recruiting women in either party who have excelled in various industries at a high level to run for office this year.

“We’re saying to them, ‘Think about public service, think about government and politics as a place to exercise your leadership,’” Walsh said.

But Lawton predicted reversing the gender disparity in politics will come at a “glacial” pace.

“This is a great expense to all of us because we aren’t getting balanced perspective on the legislation that we’re passing and moving through,” Lawton said. “Clearly, that perspective is very important for us to address a more cost-effective way of meeting the needs of the community.”

DARBOY — A year after enduring a stem cell transplant that could ultimately save his life, Charlie Knuth, 5, is focused on one thing — being a little boy.

“He plays like a regular kid,” said his mother, Trisha Knuth. “Charlie is happy, the family is happy and he’s not in pain. That’s really what matters right now.”

Charlie has the rare skin disease epidermolysis bullosa, commonly known as EB.

Born without the protein that binds skin together, Charlie’s body once blistered badly inside and out, a painful condition that typically leads to a lethal form of skin cancer. But that was before the Dec. 30, 2010, bone marrow transplant, which helped Charlie’s body produce the missing protein and strengthened his skin.

“He’s one of the kids that made tremendous progress,” said Dr. Jakub Tolar, Charlie’s physician at the University of Minnesota Amplatz Children’s Hospital in Minneapolis. “(Charlie) responded very well and he seems to be on the right track. His organs are functioning fine, and now he’s going to — I would hope — continue to heal.”

Abandoned at birth, Charlie came home with the Knuths from a hospital in Milwaukee when he was 2 weeks old. His adoption was finalized a year later.

Charlie’s remarkable progress has prompted the Knuths to adopt another child who suffers from the same severe form of EB that has shaped Charlie’s life. Trisha Knuth will travel to Washington next week to meet 6-year-old Seth.

“(Seth) is in a group home and he has never had a family,” Trisha Knuth said. “He’s in pretty bad shape.”

She said the outpouring of community support her family received during Charlie’s journey has prepared the family as they enter a new chapter with Seth.

“It’s a lot different this time,” she said. “Before all this happened, we were kind of alone. Nobody knew what was wrong with (Charlie); nobody knew how to help. And now because of all of the publicity and community support, I really feel like we have such a large support system that it’ll be much easier.”

The lesions that once blanketed Charlie’s small frame have largely receded. Just a few patches of fragile skin remain, and those are carefully wrapped with bandages that once entombed most of Charlie’s body.

“We try to leave as much skin as we can exposed,” Trisha Knuth explained. “It seems like the more we can leave exposed, the tougher it gets.”

Tolar said that’s precisely what Charlie’s skin needs to continue healing.

“The idea is to not cover the spots that are open wounds because the usual wear and tear of normal daily life is actually good for it,” Tolar said. “It informs the cells in the bone marrow to travel to the skin and make more of the collagen type 7 (protein) that he needs. There are several cycles of healing that have to occur to get the best result.”

The dramatic changes in Charlie’s life aren’t merely physical. Both his mother and Tolar expressed amazement at the way his mental and emotional well-being evolved as well.

“I can’t even remember the last time he cried in the bath (from the pain),” Trisha Knuth said. “From one extreme to this — it’s profound, it’s amazing.”

And the change in Charlie’s quality of life has rippled to the rest of his family, including his brothers, Alex and Hunter, both 16, and sister, Chloe, 8.

“Let’s put it this way — a happy mom is a happy family,” Trisha Knuth said, chuckling. “Before (the transplant) all of his pain and all of his anxiety was taken out on me because I was his main caregiver, so things were very stressful around the house. Charlie would deal with pain by acting out with hitting and screaming and calling names. He does not do that anymore, so everybody’s just very happy.

“My mom and dad have finally been able to baby-sit for Charlie, and that’s never happened. So me and (Charlie’s father) Kevin were able to go do something on our anniversary for the first time since Charlie was born. That’s a big deal.”

Tolar said it’s too early to tell whether the transplant reduced Charlie’s risk for developing skin cancer, but he said he’s optimistic.

“The model is that (EB patients) get skin cancer because of the enormous irritation of the skin,” he said. “So if you remove the irritation, you will remove the risk of cancer. But it’s going to take a decade or more to actually know if that’s the case.”

Tolar will continue to monitor Charlie’s progress and meet with him at least once a year until he turns 18.

For now, Tolar said, Charlie needs to focus on staying active and growing up as any little boy would.

“He’s as bright as anybody else and probably mature beyond his years because of what he went through and he should be given all the opportunity in life as anybody else,” Tolar said. “That was the whole goal of the transplant — to give him that.”

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

About EB

Epidermolysis bullosa is a genetic disease that makes the skin fragile, causing it to blister inside and outside the body.

» EB affects one out of every 50,000 children born in the U.S.

» EB is not contagious.

» The most aggressive forms of EB lead to disfigurement, disability and early death. Milder forms are not lethal.

» There is no cure. EB is treated through wound care and bandaging.

» EB can be diagnosed through prenatal testing.

» You can read more about Charlie’s journey with EB on the website for Pioneering Unique Cures for Kids, a foundation that funds EB Research. http://bit.ly/PUCK-Foundation

Source: The Dystrophic Epidermolysis Bullosa Research Association of America, www.debra.org; Pioneering Unique Cures for Kids

As Wisconsinites await W-2 forms and related tax documents, hundreds of thousands of low-income families are bracing for a state budget change that will mean less money in their wallets next year.

Last summer, the state Legislature reduced the amount of money low- income families can receive in tax credits by $56.2 million.

That places Wisconsin among only a handful of states that will effectively raise taxes on their poorest residents in 2012, according to a recent study by the Center on Budget and Policy Priorities, a nonprofit think tank.

“At a time when low-wage workers are already struggling, this makes it that much more difficult (for them) to feed their families and pay their utility bills,” said Jon Peacock with the Wisconsin Council on Children and Families, an advocacy group that opposed the changes.

Since 1989, Wisconsin has offered low-income families with children a so-called earned income tax credit, which offsets Social Security taxes and lowers poor families’ tax liability. The federal program was started in 1975.

The size of the credit grows as income rises, until a maximum credit amount is reached. The program’s primary goal is to encourage low-wage earners to work their way out of poverty rather than collect welfare.

Families must fall below or meet income thresholds to qualify. This year, the federal limit is $36,052 for a single-parent household with one child. For a two-parent family of four, the income limit is $40,964.

Wisconsin’s earned income tax credit is offered as a percentage of the federal credit. Wisconsin is the only state in the nation that sets percentage levels based on the number of children per family, a progressive model that accounts for the financial strain having multiple children puts on a family’s budget.

Currently, low-income families with one child can receive a tax credit that is up to 4 percent of the maximum amount allowed under the federal earned income tax credit program. That equals a maximum state credit of $124.

For families with two children, the percentage threshold is 14 percent of the maximum federal tax credit, or $716.

For families with three or more children, the ceiling is 43 percent of the federal limit, or $2,473.

The 2011-2013 state budget reduces the percentages for families with two or more children, which the state Legislative Fiscal Bureau considers a net tax increase.

Starting next year, low-income families with two children will be capped at 11 percent of the maximum federal credit, or $562, down from $716.

Families with three or more children will be limited to 34 percent, or $1,955, down from $2,473.

The Wisconsin Council on Children and Families estimates a two-parent family of four that earns $32,500 a year would see an $81 cut in their tax credit next year.

“It’s one more thing that will make it hard for low-income working parents to make ends meet,” Peacock said.

A spokesman for Gov. Scott Walker did not respond to email and telephone requests for comment on Wednesday, but last winter Walker defended the proposal and rejected the notion that the cuts represent a tax increase.

Typically, the majority of tax credit recipients don’t make enough money to owe state income taxes, Walker noted, which means they actually receive the credit as a refund in the form of a check.

Furthermore, the cut is somewhat offset by an expansion of the earned income tax credit at the federal level, which was part of President Barack Obama’s 2009 stimulus bill.

The authors of the Center on Budget and Policy Priorities’ study suggested the tax credit has a simulative effect on the economy because low-wage earners are more likely to spend the money they make rather than save it.

Peacock said his group wouldn’t have opposed the state cuts in the earned income tax credit if those cuts had been set to expire at the end of 2012, when the federal increase is scheduled to sunset.

“If it had just been a short-term way for the state to save some money while the federal increase was in effect, we wouldn’t have loved that change but we certainly could have understood,” Peacock said. “This is going to be a double hit for low-income families in Wisconsin.”

— Michael Louis Vinson: 920-993-1000, ext. 368, or mvinson@postcrescent.com; on Twitter @MichaelVinson

earned income tax credit

The earned income tax credit reduces the amount of tax low-income workers owe federal and state governments. To claim the tax credit, filers must have a valid Social Security number, be a U.S. citizen or resident alien all year and have earned income from employment. In Wisconsin, tax credit recipients also musthave children.

» About 25 million families receive the federal credit each year. In Wisconsin, about 274,000 families received the credit in 2009.

» Current Wisconsin policy: The state offers the tax credit as a percentage of the federal credit.

Families with one child can receive up to 4 percent of the maximum amount allowed under the federal earned income tax credit program, or about $124.

Families with two children can receive up to 14 percent of the maximum amount allowed under the federal earned income tax credit program, or about $716.

Families with three or more children can receive up to 43 percent of the maximum amount allowed under the federal earned income tax credit program, or about $2,473.

» 2012 Wisconsin policy:

The state offers the tax credit as a percentage of the federal credit.

Families with one child can receive up to 4 percent of the maximum amount allowed under the federal earned income tax credit program, or about $124. (No change)

Families with two children can receive up to 11 percent of the maximum amount allowed under the federal earned income tax credit program, or about $562.

Families with three or more children can receive up to 34 percent of the maximum amount allowed under the federal earned income tax credit program, or about $1,955.

Source: Wisconsin State Legislative Fiscal Bureau

The Wisconsin Department of Health Services has asked Planned Parenthood to continue a cancer-screening program in the Fox Valley until the end of February, when the Winnebago County Health Department will take control of the program.

“I’m confident that we can get (the transition) done in two months,” said Doug Gieryn, Winnebago County’s public health director.

Since 1995, Planned Parenthood has coordinated a breast and cervical cancer-screening program for low-income and underinsured women ages 45 to 64 in Outagamie, Winnebago, Fond du Lac and Sheboygan counties.

Though funded primarily with federal dollars, the $1.8 million program — known as Wisconsin Well Woman — is a state and federal partnership.

Earlier this month, Planned Parenthood said state officials informed the group by phone that DHS would not renew a $130,000 contract to coordinate Well Woman in the Fox Valley at the end of the year.

DHS announced the 60-day contract extension on Friday after state lawmakers and public health officials in the four counties pressed DHS to come up with an alternative by Jan. 1.

“DHS sent a contract to extend (services) until the end of February,” said Nicole Safar, public policy director for Planned Parenthood of Wisconsin. “(On) Jan. 2, it will be business as usual for the women who are in the program (or who) need to enroll.”

In a Friday statement, DHS Secretary Dennis Smith wrote, “Our agreement with Winnebago County includes a transition plan to ensure that service coordination continues without interruption to help women access vital breast and cervical cancer-screening service in this four-county area.”

Though Outagamie County Public Health Manager Melody Bockenfeld praised Gieryn for his leadership on the issue, she lamented the end of Planned Parenthood’s stewardship of the program.

“Winnebago stepped up and offered to be the fiscal coordinator for that contract,” Bockenfeld said. “(But the) first choice for all of us was that it just stay where it is.”

The dispute caps a yearlong battle between Planned Parenthood and Gov. Scott Walker’s administration over abortion.

State law already prohibits the use of state and federal funds to cover abortions, except in cases of rape or incest, or if the life or long-term health of the mother is at risk.

But the governor signed a biennial budget this summer that included language designed to further diminish Planned Parenthood’s footprint in Wisconsin.

The budget prohibits organizations that provide abortions, refer women to abortion services or have “affiliates” that do the same from accessing “women’s health funds.”

Planned Parenthood’s Safar said the transition “is going to be a complicated process” that would not be “easily hashed out in a week or so.”

To meet the March 1 launch date, Gieryn said he will ask the Winnebago County Board for “special consideration” to expedite the process of accepting the state funds, hiring program coordinators and locating office space.

“I don’t have anything in place yet because (of) the amount of the contract,” Gieryn said. “There aren’t a lot of excess funds (to cover salaries and rental space).”

Gieryn said he would like to simply hire the two coordinators who run the program for Planned Parenthood.

“We’re hoping to basically transition them,” he said.

Well Woman

The program has been funded mostly through the U.S. Centers for Disease Control and Prevention’s National Breast and Cervical Cancer Early Detection Program.

» At the state level, the $1.8 million program is administered through the Department of Health Services.

» Most counties coordinate the program, but some — including Outagamie, Winnebago, Fond du Lac and Sheboygan counties — outsource the work to private agencies.

» Women ages 45 to 64 are eligible for the program if they have incomes at or below 250 percent of the federal poverty line and lack adequate and affordable health insurance. For a single woman, 250 percent of the federal poverty line amounts to $27,225 in annual gross income. For a family of four, that equates to $55,875 in annual gross income.

» Last year in Outagamie County, 361 women were served. Some 148 women were screened for breast cancer and 67 women were screened for cervical cancer. Cancer was detected in four women. The county health department is at 410 S. Walnut St., Appleton. Phone: 920-832-4741.

» Last year in Winnebago County, 493 women were served. Some 194 women were screened for breast cancer and 81 women were screened for cervical cancer. Cancer was detected in five women. The county health department is at 112 Otter Ave., Oshkosh. Phone: 920-232-3000.

» Last year in Fond du Lac County, 246 women were served. Some 84 women were screened for breast cancer and 53 women were screened for cervical cancer. Cancer was detected in three women. The county health department is at 160 S. Macy St., Fond du Lac. Phone: 920-929-3085.

» Last year in Sheboygan County, 160 women were served. Some 74 women were screened for breast cancer and 43 women were screened for cervical cancer. Cancer was detected in three women. The county health department is at 1011 N. Eighth St., Sheboygan. Phone: 920-459-4382.

Source: Planned Parenthood Advocates of Wisconsin

APPLETON — After a heated debate, the Appleton Common Council voted 12-3 Wednesday to shift a greater portion of federal grant money to city-run programs, effectively reducing funds for local nonprofits.

“Now is the time to make this very difficult decision to make sure at least the city of Appleton’s programs are funded and operated,” said Ald. Peter Stueck, who authored the proposal.

For the better part of a decade, federal community development block grant money — which funds programs targeted at low- and moderate-income residents — has dwindled.

Appleton’s federal award is expected to fall to $486,281 next year, down nearly 50 percent compared with 2001 levels, adjusted for inflation.

Stueck’s plan allocates $407,000 — about 84 percent of the total award — to programs run by the city of Appleton and Appleton Housing Authority.

Previously, city-run programs got first crack at up to 50 percent of the federal money. The rest was given to local nonprofits, such as Greater Fox Cities Habitat for Humanity and Rebuilding Together Fox Valley.

Under Stueck’s plan, nonprofits will have a shot at about $80,000 next year, a considerable decrease compared with the $195,100 nonprofits received this year.

Stueck said the changes were needed to maintain the effectiveness of city-run programs.

“It’s not something (the committee Stueck chairs) took lightly, it’s not something we enjoyed doing,” Stueck said. “But it was something we felt was necessary.”

Ald. Jim Clemons, who dissented twice when the proposal came before the committee, argued it would be fairer to simply lift the 50 percent cap on how much city-run programs can receive from the federal grant.

That way city-run programs would continue to compete with local nonprofits for the federal dollars under the current application process, which Clemons said is “very efficient, extremely transparent and gives everybody a chance.”

Seeming to grow frustrated with the debate, Clemons accused council members of ignoring his arguments.

“I know some of you are bored by this because you’ve already made up your minds because somebody told you how to vote,” Clemons said.

Ald. Jeff Jirschele, who has been one of the more vocal supporters of Stueck’s plan, castigated Clemons for the comment.

“That’s needlessly insulting and disdainful,” Jirschele said. “I know it’s said in the heat of the moment. You can’t believe that.”

Other items

Council members voted 15-0 in favor of extra funding for a controversial stormwater retention pond project at Reid Golf Course.

The $34,931 increase in the city’s $102,710 contract with AECOM, a technical services firm, will cover design costs associated with recommendations from the Golf Course Advisory Committee, which represents the golfing community.

For months, golfers have expressed dismay at the city’s plan to build two ponds on the course to ease flooding problems that have plagued Appleton’s south side for at least a decade.

The new design duties include improving drainage and playability on seven fairway areas, designing natural rock retaining walls to enhance aesthetics and creating a new foundation for an existing rain shelter that will need to be moved.

Wednesday night the council also voted 12-3 to approve a salary freeze for alderpersons in 2013.

At a Glance

Last we knew: Last week a city committee approved a proposal 4-1 to give a greater portion of Appleton’s 2012 community

development block grant funding to city-run programs and the Appleton Housing Authority.

The latest: On Wednesday, the Common Council approved the plan 12-3. About $407,000 of the anticipated 2012 award will be controlled by the city. The remaining $80,000 will be split between local nonprofits.

What happens next: The city plans to hold a session for public comment on Jan. 9.