The Department of (Insufficient) Commerce

Mary Burke has been touting her business experience (which seems, as you know, rather amorphous) and her experience as Gov. James Doyle’s secretary of commerce.

It turns out that Doyle apparently didn’t care for Burke’s work, while Burke apparently didn’t care for the agency she ran. Media Trackers reports:

An email between then-Gov. Jim Doyle and his chief of staff, Susan Goodwin, show Doyle was looking to replace Mary Burke as commerce secretary a full month before Burke announced she would leave the job. The chain of events that followed Burke’s resignation leaves questions about whether Burke was ready to leave the position of her own accord.

Burke, who is the Democratic challenger to Gov. Scott Walker (R) this fall, served as Wisconsin’s commerce secretary between 2005 and November 2007. Burke announced her resignation from the post on October 12th, 2007. But an email between Doyle and Goodwin on September 12th, 2007, shows Doyle and Goodwin were already in the process of looking to replace Burke.

Burke and Doyle were both on a trade mission to China and Japan at the time of Doyle-Goodwin exchange. Records show Burke racking up thousands of dollars in expenses on the taxpayer paid trip just a month before her resignation – including 1st class flights that Media Trackers previously reported on.

While it may not seem unusual that Doyle and Goodwin were looking for a replacement for Burke, assuming they were aware she planned to depart, the chain of events following Burke’s resignation indicate Doyle may had been caught off guard.

According to news reports at the time, Doyle did not have a replacement in place when Burke announced her resignation and he did not name a replacement until a month later, leaving the position vacant for several weeks.

The answer to why Doyle may have been looking to replace Burke may be found in an October 20, 2007 Milwaukee Journal Sentinel article. According to the article:

Shortly before announcing her resignation as Wisconsin’s secretary of commerce, Mary Burke issued a harsh criticism of her agency…The Commerce Department, which ought to be among the state’s most influential economic players, has sat on the sidelines while other states vie to recruit new businesses, she said…”We are not out there selling the state and attracting the companies,” Burke said late last month, echoing private-sector criticism.

The article goes on to note criticisms of Burke’s agency by those in the business community.

Burke’s criticism of her own department in September, as well as concerns raised in the business community about the ability of her agency to do its job, may indicate a rift between Doyle and his commerce secretary, giving credence to the likelihood that Doyle may have been looking to push Burke out before her resignation.

Another indication of the unplanned nature of Burke’s resignation is that as the sister of the president of Trek Bicycle, and a former Trek executive herself, one would assume Burke could have easily worked her way back into her family’s company. But a report from Right Wisconsin indicates that instead, Burke – who was 48 years old at the time of her resignation – has not worked since abruptly leaving her position as Commerce Secretary.

Doyle may have been the only person who cared for the Department of Commerce during his administration. Readers of my previous blog may recall the harsh criticisms of the DOC by not just Republican gubernatorial candidate Scott Walker, but his Democratic opponent, Tom Barrett.

Go back to the aforementioned Journal Sentinel story:

“We haven’t been there when we need to be,” said Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce.

Julia Taylor, president of the Greater Milwaukee Committee, hopes Doyle names someone with a track record of industrial attraction “in other states or someone who’s done it in this state. …

Other states vastly outspend Wisconsin, Burke and others conceded.

The nonprofit Forward Wisconsin agency, which does marketing but not industrial attraction, has a budget of $600,000, with half that amount supplied by the state and the rest from non-taxpayer donors. In his current budget proposal, Doyle wants to add $590,000 for business attraction. …

By contrast, the Minnesota Department of Employment and Economic Development proposes spending more than $500,000 next year to market rural economic initiatives alone, a spokeswoman said. And the Michigan Economic Development Corp. has one full-time staffer who routinely shuttles to Europe and another who travels regularly to Japan, both spending much of their time luring businesses to that hard-hit state, a spokesman said.

“You ought to call the folks in Texas – their capacities and funds are at least five times greater,” said Mike Shore, a spokesman for the Michigan Economic Development Corp.

Burke directed the agency for 2 1/2 years. Her predecessor, Cory Nettles, left after about two years.

“Both did well with the resources they had, but they have probably one of the weakest tool sets of any state commerce secretary in the country when it comes to incentives, tax breaks, flexible training dollars,” Sheehy said.

In the 2006 governor’s race, Doyle’s Republican opponent, Mark Green, criticized Doyle for economic passivity.

Doyle administration officials respond that the state has focused on growing its own businesses. His aides talk about “economic gardening” – tending to the soil with tax incentives and taxpayer aid to see what sort of operations spring up without importing industry.

“There is a real opportunity here for the state to put its best face forward for national attraction on key industries,” Taylor said. “If you’re going to focus on business attraction, you need to be charismatic, do the business of the state, get the governor to the table when you need him.”

This is another example that elections have consequences. Had voters correctly chosen Green instead of Doyle in 2006, Green would have not continued Doyle’s approach, whatever that was.

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