All Saints lays off 43 employees

All Saints told its employees Wednesday that it's eliminated 43 positions because of the declining economy.

The cuts to Racine's leading medical provider falls in line with layoffs occurring throughout the Wheaton-Franciscan Healthcare system.

Along with the layoffs, All Saints cut some employees' hours and moved managers into direct-patient care. It also ended the contract with its concierge service, Best Upon Request.

Here's the letter sent out to employees:

Date: January 14, 2009
To: WFH-All Saints Associates,
WFMG South Market Physicians and Midlevels
From: Ken Buser, President and CEO, Wheaton Franciscan Healthcare – All Saints
Loren Meyer, MD, President and CEO, Wheaton Franciscan Medical Group
Re: Expense Control and Reduction of Workforce

As we have seen in the news and may be experiencing in our own homes, we are in the midst of an economic downturn most of us have never seen before. Unfortunately, the recession is also taking its toll on the health care industry. While we have been engaged in an Operational Excellence initiative for several years, the current environment requires us to respond by pursuing new and more efficient ways of providing care.

• Yesterday we eliminated the positions of 43 people within All Saints including four leaders. These changes affect both clinical and nonclinical areas and represent less than 2% of our workforce. The elimination of nursing staff was minimal. In all but a couple of cases, we were able to reassign nursing staff to open positions. Those associates leaving our organization will receive severance and support services consistent with their position and years of service.

• We've implemented additional changes to help bring us closer to our budget goals. One critical component to our financial performance is working to help departments meet their budget. To better match with patient volumes, some staff will experience a reduction of hours. Additionally, about 23 leaders will be shifting 50% of their time into direct patient care. Another 2% of our workforce is affected by these kinds of changes. And finally, we will continue to leave vacant positions open unless they are critical to patient care.

• Wheaton Franciscan Medical Group is changing care processes and adjusting staffing ratios consistent with current volumes. In the South Market, several WFMG positions are being eliminated in addition to a few reassignments to other areas with the Medical Group. WFMG is also reducing operational expenses and redesigning patient education programs.

• We also explored ways to redesign programs or services that were not financially sustainable, including the Comprehensive Pain Management program, Pulmonary Rehabilitation, Resolve Through Sharing, and Senior Advantage. We will continue to provide these important services to our patients through existing resources. More information about these changes will be shared with you over the coming days.

• We ended our contract with our associate concierge service, Best Upon Request, and services will end in 90 days.

All Saints and WFMG's South Market are not alone in this expense reduction work. Over the coming weeks, other Wheaton Franciscan Healthcare sites will be making additional changes as well.

Meet snappy dresser, Max

It's not often you can adopt a dog with its own wardrobe!

We're going to just assume that Max, the white Lhasa Apso pictured here, comes with the winter sweater he's wearing. Countryside Humane Society tells us that Max has been shaved -- but in a few months he will have a soft furry coat. Sure, but what about now, when the temperature is below miserable? That's where the stylish outfit comes in!

Max is a friendly six-year-old, and he's already house-trained. His family had to give him up due to allergies. Max would fit into a family with any age children or adults.

Come make his acquaintance at the Countryside Humane Society, 2706 Chicory Road, or call (262) 554-6699.

Becker posts bail, could be out of jail tonight

Mayor Gary Becker is out of jail this evening, according to Kenosha County Jail records.

The J-S is reporting that Jean Becker, a relative of Becker's, posted the $165,000 bond.

The paper also reported Racine Attorney Patrick Cafferty is representing the Racine mayor.

Becker is due in court Thursday at 1:30 p.m. for his initial appearance. Read the charges here.

It's not a big surprise Becker could afford the bond. Prior to being mayor, he ran a chain of successful drycleaning companies, which he sold.

Racine Zoo now charging county residents $1 admission on Mondays

It now costs $1 for Racine County residents to attend the Racine Zoo on Mondays.

The fee replaces "Free Mondays" that had been in effect since the zoo went to an admission fee in 2007. The decision was finalized Monday night when the Racine Zoo Board approved the organization's 2009 operating budget.

County residents and their guests will pay the reduced fee. Out-of-town visitors will pay the full rate of $5 for adults, $4 for seniors, $3 for children between 3 and 15 and free for children under 3 during the "peak rate" season of April to October 31.

Rates from Nov. 1 to March 31 will be $4 for adults, $3 for seniors, $2 for children between 3 and 15, and free for children under 3.

In order to help people who cannot afford the $1 admission price, the Zoo created the Safari Club Ticket Donation Program. Individual and corporate members who receive guest admission tickets as one of their membership benefits can donate their admission tickets back to the Zoo for distribution to those in need. The tickets can be requested through the Zoo’s administrative office.

Schools and education-based organizations (e.g. Scouts, camps, etc.) with non-profit status will enjoy a $2.00 per person rate for students and chaperones with free admission for one chaperone for every eight students. Group outings for non-education based organizations will receive $1.00 off admission from April 1 through October 31. In order to receive a discount, groups must register with the Zoo at least two weeks prior to their outing date.

The Zoo will host three free days for ALL guests including Thanksgiving, Christmas Day and New Years Day. It will also offer free admission to mothers on Mother’s Day, fathers on Father’s Day, grandparents on Grandparent’s Day and active duty military members and veterans on Veterans Day.

The Racine Zoo is open daily. Hours between Labor Day and May 22nd are 9 a.m. to 4 p.m. The admission price currently is $4.00 for adults, $2.00 for children 3-15, $3.00 for seniors and children under three and Zoo Members are free. The mission of the Racine Zoological Society is to foster an enlightening and affordable wildlife experience that improves the bond between people and nature. The Society will provide for the recreation and education of the people, the conservation of wildlife and wild places, and the advancement of science.

Police Dept. expands hours at service counter

The Racine Police Department is expanding the hours at its Public Service Counter effective Saturday, Jan. 17.

The new hours now include Saturday service from 8 a.m. to noon. The counter is also open from 7 a.m. to 6 p.m. Monday – Friday (except holidays). Parking citation payments can now be handled at the Public Service Counter, in addition to payments for any City of Racine traffic or ordinance citation.

The Police Department also announced that all Police Department Records have been moved to the Public Service Counter on the first floor to make it unnecessary for the public to climb stairs to the old Record Bureau on the second floor. Ticket payments can be made via cash, checks, money orders, and credit cards. There is a service fee if you pay a parking ticket via credit card.

First hats in the ring to succeed Becker

That didn't take long!

Former West Racine alderman Pete Karas said today he is "strongly considering" running for mayor.

If the mayor resigns as a result of his arrest last night, state law requires the city to hold a special election within six weeks.

Karas was the 9th District member of the City Council for five years, before resigning in November 2007 when an obscure state law came to prominence. Karas sold commercial insurance to some customers who hold liquor licenses; under state statute 125.51 (1b) aldermen are prohibited from selling anything to those who hold liquor licenses.

The JT gets a few more people to admit they're thinking about running. They include: Acting Mayor David Maack, Alderman Greg Helding and Alderman Q.A. Shakoor.

Another name that could come up: Pastor Elliott Cohen.

And don't forget about Ron Thomas - he nearly won the mayor's office in 2003 - and Jim (and Joyce) Smith may see an opportunity in returning to City Hall.

Here's what Mayor Becker is charged with

The State Department of Criminal Investigation released the following information this afternoon, outlining the charges against Racine Mayor Gary Becker:

Last night, agents of the Department of Justice – Division of Criminal Investigation arrested Racine Mayor Gary Becker at Brookfield Square Mall in Brookfield. After his arrest, Mr. Becker was booked at the Kenosha County Jail on charges including child enticement, possession of child pornography, exposing a child to harmful materials, attempted second degree sexual assault of a child, use of a computer to facilitate a child sex crime and misconduct in public office. The Racine County Sheriff’s Department provided law enforcement assistance to the Division of Criminal Investigation Internet Crimes Against Children agents in this matter.

The matter has been referred to the Racine County District Attorney Michael Nieskes’ Office for evaluation and potential prosecution.

An arrest is an initial stage in a criminal proceeding. Mr. Becker is entitled to a presumption of innocence.

If charges are filed, Mr. Becker’s initial appearance is scheduled for 1:30 p.m. tomorrow at the Racine County Law Enforcement Center.

A tip to Racine police led to Mayor Becker's arrest

Somber press conference: Lt. Jim Dobbs, City Atty. Rob Weber
and City Administrator Ben Hughes

A tip to the Racine Police Department set off a state investigation that led to Mayor Gary Becker's arrest outside of Brookfield Square mall on Tuesday, Lt. Jim Dobbs said at a press conference Wednesday.

Dobbs said the tip came in "several weeks ago" and was known by only the top brass in the department. He declined to say where the tip came from or the nature of the tip, deferring questions about the investigation to the state's Department of Criminal Investigations.

Full list of the charges against the Mayor is HERE.

Dobbs' comments came during a press conference led by City Administrator Ben Hughes. City Attorney Rob Weber also spoke.

It was clear from the press conference and comments afterwards that everyone in the city is bracing for Becker's prolonged absence (if not departure).

Under state statute, City Council President David Maack is now acting mayor of the city. He'll fill that role until Becker returns, resigns or the City Council removes him from office.

As acting mayor, Maack will sign official city documents, run City Council meetings and fulfill all of the ceremonial roles that come with being mayor.

Weber said it was too early to discuss the process for removing Becker, but did confirm the council could do so before a criminal conviction. Three-quarters of the council members would have to vote to remove Becker.

"At this point in time, Gary Becker is still the mayor," Weber said. "There is a presumption of innocence."

Hughes said city government would continue to operate without Becker in charge.

"City government will continue to function," he said. "Streets will be plowed, garbage will be picked up. Services will continue to be delivered."

If criminal charges are filed against Becker, he will be represented by his own attorney at his own expense, Weber said. The city will not pay his legal fees.

Weber said he spoke with Becker's family. "The family is shocked," he said.

City officials started hearing about Becker's arrest at 12:30 a.m. Wednesday morning. Maack was notified first, and then called members of the City Council.

Hughes received a call from the Racine Police Department with the news around the same time.

Two aldermen attended a press conference on the arrest. Alderman Greg Helding said he met the news with "stunned silence" after getting the call from Maack.

The shock aside, Helding said he was preparing to move forward with city business. While the city needs a mayor in the long term, in the short term it will run smoothly, he said.

Alderman Aron Wisneski said he was stunned by the news. "It doesn't make sense," he said.

But he added this was an opportunity to show city government is about more than the mayor's office.

"Not all of city government is driven by one man's personality," Wisneski said. "It's a democratic, collaborative process."

Press conference attended mostly by media and city employees

Uglier and uglier ...

Lt. Jim Dobbs, City Atty. Rob Weber and City Administrator Ben Hughes

Mayor Becker was arrested by the state Division of Criminal Investigations. DCI runs the Internet Crimes against Children Task Force unit, which conducts Internet sex stings on computer users. Basically, they pretend to be underaged girls looking to have sex with older men. When the men respond, agents arrest them at a meeting point.

That may not be what happened here, but the fact that DCI is involved doesn't look good.

Update: The J-S confirms DCI's Internet sex sting unit was involved.

Mayor Becker arrested on child pornography charges

Mayor Gary Becker was arrested last night on child pornography charges. Unconfirmed reports say he is also charged with solicitation of a minor.

He's being held in the Kenosha County Jail at the request of the Racine County Sheriff's Department His bond is set at $165,000.

Becker was arrested by the state Department of Criminal Investigation some time late last night. He was transported to the Kenosha County Jail at 2 a.m.

City Council President David Maack told WRJN this morning that he received a call last night from Police Chief Kurt Wahlen telling him Becker had been arrested. Becker was arrested on child pornography charges as part of an ongoing investigation, Maack told WRJN.

Maack said he would meet with City Administrator Ben Hughes and City Attorney Rob Weber about ongoing operation of the city.

According to state election law, a special election is required six weeks after a mayor resigns.

A press conference is scheduled for 10 a.m. at City Hall.

It's a shocking turn for Racine's top official, who ran unopposed for re-election in 2007.

Becker was a national leader on Great Lakes issues and was actively involved in the US Conference of Mayors. Locally, he's promoted a number of business development programs and has been a booster of Downtown Racine.

Despite some early success, he's taken heat lately for trying to convert Uptown Racine into an artists district. Becker also ran into problems in 2007 with the minority community after he talked about closing or changing the community center.

This isn't Becker's first brush with high-profile controversy. In 2006, former Mayor Jim Smith called then Police Chief David Spenner's cell phone in an attempt to get Becker arrested for drunken driving. Becker was not arrested, but later found out about the call and went public with it.

Earlier this year, Becker had a kidney removed to contain a cancerous tumor. The surgery was successful and he was back at work soon after the operation.

Jefferson Lighthouse library renamed for a former student and teacher

Supporters of renaming the Jefferson Lighthouse's library in honor of Catherine Hagar, a fifth grade teacher at the school, attend the School Board meeting on Jan. 12. Hagar's sister, Mary Androff, and son, Matthew Hagar, are sitting next to each other in the front row.

Catherine Hagar attended Jefferson Lighthouse Elementary School as a student, and returned to teach fifth grade at the school for 21 years. Her mother, sister and three children also attended the school.

So it was appropriate, and touching, that the school's staff organized a proposal to rename Jefferson Lighthouse in honor of Hagar, who died recently.

The School Board voted unanimously Monday night to rename the library the Catherine A. Hagar Learning Center.

The first donations to the center came from Hagar herself. She asked that memorials at her funeral be made to Jefferson Lighthouse. Money donated in her honor will be used to upgrade the learning center's technology, add books to the library and buy a new sign with Hagar's name.

Stella Young

School Board candidate Stella Young was the only one of three non-incumbents to attend Monday night's special School Board meeting (It was "special" because board meetings are typically held on the first and third Mondays). Fellow challengers Kim Plache and John Leiber did not attend.

Incumbents Gretchen Warner and Don Nielsen were at the meeting. School Board President Tony Baumgardt, who is not seeking re-election, did not attend.

Jackson Parker

Unified will keep interim Superintendent Jackson Parker on the payroll for another six months. The board agreed with new Superintendent James Shaw's request to keep Parker around part time. Money is available in the budget to keep Parker because Unified did not fill another position in its Central Office.

TV Cable service interrupted

UPDATE: Ah, fixed, sorta... shortly after 10 p.m.

Original post:

Where's my cable TV?

No idea. All the Time-Warner phone lines were tied up Tuesday night, as cable went out in an unspecified area. When we finally got through it was only to a recorded message saying there are service interruptions in our area (Mount Pleasant), technicians are aware of it and working on it.

We first noticed the problem a little after 7 p.m. ... and it wasn't fixed by 10 p.m.

Thank Heaven for Netflix!

Foreclosures jumped by 295 in county in 2008

Racine County had 1,101 foreclosures in 2008, an increase of 295, or 37%, more than 2007. Percentagewise, the county's increase in foreclosures was almost double the state's average.

The numerical increase here was the third largest in Wisconsin, behind only Milwaukee County, up 785 to 6,468, a 14% increase, and Dane County, up 415 to 1,312, a jump of 46%.

Stories about two high-profile, Main Street, foreclosures:
The Christmas House The Miller House

Overall, Wisconsin had 25,547 foreclosures, an increase of 4,496 over 2007, up 21%. See county-by-county chart here, compiled by the director of State Courts Office, and based on foreclosure actions filed in Wisconsin Circuit Courts.

Director of State Courts A. John Voelker and Supreme Court Chief Justice Shirley Abrahamson said court administrators are making an effort to prepare for the influx of cases, and to protect the rights of both creditors and borrowers. .

A statement they released today said:

The court system has provided educational programs on mortgage laws and regulations for judges and court staff, and some judges have developed procedures to help ensure litigants are communicating in an effort to settle their disputes.

Also, Abrahamson and Voelker said the court system is communicating with court systems across the country to examine which programs may best help the parties resolve the difficult issues fairly and facilitate settlement, if possible.

One program – an alternative dispute resolution program started in other states – is being piloted in Wisconsin by Chief Judge William D. Dyke, Iowa County Circuit court. Dyke initiated a local rule that requires lenders who file a foreclosure action as of Jan. 1, 2009, to notify defendants that foreclosure mediation is an option under the state’s alternative dispute resolution statute. Foreclosure filings in Iowa County jumped from 58 in 2006 to 92 in 2007 and 105 in 2008.

“We’re fostering a discussion between the parties, and that discussion can take into consideration the loss of a job, for example,” Dyke said.

The mortgage crisis is affecting the system, but it doesn’t have to be devastating to the courts or the parties involved, Dyke said. Judges, clerks of court and district court administrators report that in many foreclosure actions, the borrower is not represented in court. The increase in filings also will increase demand on the court system’s resources for self-represented litigants.

SC Johnson to preserve historic fire station

The former First Station No. 1 at 1412 Racine St.

We heard back today from SC Johnson about the historic Fire Station the company bought in December at 1412 Racine St. The company plans to preserve the building. Here's the email from spokeswoman Jennifer Taylor:

SC Johnson did purchase the fire house in July and leased it back to the previous owner. When the lease expires, we plan to preserve the building as we believe it's a community treasure. At this time, we are uncertain of how the building will be used in the future but we do understand its importance and value to the community.

That's great news for city history, and a nice gesture by SC Johnson. The building could fit well with the company's plans to rebuild Uptown in conjunction with the city's Artist Relocation program. Perhaps a gallery one day in the former fire house?

State agency down on Racine? One developer thinks so

When it comes to the proposed $7.2 million development in West Racine, Damon Dorsey has heard it all before.

Last year, the Milwaukee-based developer was building excitement in the community for a sparkling new project that would mix retail and residential in a neighborhood waiting for an economic spark. Dorsey was one approval away from building the $9 million Corinne Owens-Reid Square project on State Street. But that approval never came.

The Wisconsin Housing and Economic Development Authority passed on the project, saying the market in Racine was "too weak" for more affordable housing. Dorsey's project would have included 24 three-bedroom townhouses for low-income families, plus 4,500 square feet of commercial space. Without WHEDA's $5.6 million tax credit, which was backed by city and state officials, Dorsey had to delay the project.

He hopes to bring it back this year, but he's worried WHEDA is down on Racine. While Dorsey supports the $7.2 million West Racine project, which includes 55 low-income apartments, the state agency may maintain its view that there's not enough of a market for low-income housing in the city.

"WHEDA didn't turn down our project last year," Dorsey said, "they turned down the city of Racine."

WHEDA Spokesperson Kate Venne said she didn't have specifics on the two projects, and couldn't immediately comment.

Part of WHEDA's basis for the denial was a vacancy rate of 15 percent among low-income properties in the city, Dorsey said. But his market study showed a need for large, nice housing units for low-income families. WHEDA, which gives out tax credits to make low-income and senior housing projects possible, disagreed.

"WHEDA hit me upside with a baseball bat," Dorsey said. "They didn't tell us (the market was weak) until after the fact."

Dorsey added he wouldn't have submitted the project if a market study showed there wasn't a need for low-income housing. Now, he wonders if a 55-unit building stands a better chance in the market than his 24 units.

"Twenty-four units is nothing in the market," Dorsey said. "The market can easily absorb that amount."

He added that he wished the North Carolina-based developer well. But unless city officials get ahold of WHEDA and make a compelling case, the West Racine project won't get funded, either.

"The North Carolina developers said they're optimistic their project will go through," Dorsey said. "No one was more optimistic than us last year. We were hyper-optimistic."

Hopefully, the state comes through with funding for both projects this year.

Tough budget times ahead for Racine Unified, but new superintendent stays positive

Superintendent James Shaw (right) and School Board member Dennis Wiser (left)

Racine Unified is looking at a $3.5 million budget deficit next year, and that may be the good news that came out of Monday night's School Board meeting.

The district is also losing students, drawing down (see below) its fund balance and trying to figure out how to raise student achievement while spending half the money per student then the average school system in Wisconsin.

Despite the tough news, district officials vowed changes from past years. They're not going to rush to referendum this spring to fill next year's budget shortfall. They're not going to scare employees into thinking their jobs may be cut. And they're not going to exchange a long-term focus for short-term gain.

But the numbers are troubling.

Based on the state revenue caps, the district's budget is expected to increase $7.4 million, or 3.7 percent, next year to $210.5 million, according to Dave Hazen (right), Unified's finance director.

All of that increase is already taken up by:

* $5.5 million in estimated health care costs increases
* $200,000 in estimated dental cost increases
* $500,000 increase in salary increases office workers union Local 152
* $700,000 increase for teachers moving up salary step system
* $1.7 million increase for teachers in salary negotiations
* $1.5 million in general cost increases (based on an average 3 percent increase)
* $800,000 in one-time expenses put off in this year's budget

And that's just next year. This year, the district expects to lose $400,000 on investments, Hazen said. The district budgeted 4.5 percent interest on money market funds last year and got burned when the rate came in at 2.5 percent. So the district budgeted 2.5 percent return this year, but the tanking market only returned 1.2 percent.

The district is also facing rising utility bills. Through November, the district has spent nearly $100,000 more on natural gas than in 2007-08, and $23,000 more on electricity.

The source of the excess utility spending: it's been a cold winter. The district has used 52,000 more therms this year compared to last year, and that's not including a frigid December and, so far, January.

The problem for Unified is its savings are tight. The district has a general fund balance of about $14.5 million, which it likely will have to draw on this year to balance its budget. The overall budget's fund balance is $19.5 million (actually, it's a little higher, but the district is planning to spend out of the fund at the end of the year).

The good news is district staff is working on solutions. Changing school start times next year could eliminate the need for 20 buses, which each cost $25,000 a year to run, Hazen said.

The district is also looking at redistricting to cut down on the distance special education students are bused every day. While cost savings are unknown, it will save money, Hazen said.

During the School Board meeting, Superintendent Jim Shaw tried to alleviate concerns the district will layoff employees. Shaw noted the district turns over 10-15 percent of its staff every year, which makes it possible, if needed, to reduce employees through attribution.

He also backed up Hazen's recommendation that the Board not consider a referendum this spring, while also noting that, eventually, the community will need to spend more on public education.

"Money does matter," Shaw said. "You do need resources to educate children."

While Shaw stayed positive, School Board members voiced concern. Julie McKenna wondered aloud how the district could cut its budget every year and still improve student performance. While a $3.5 million shortfall next year may not seem significant, she said, the district has little more to cut.

School Board member Don Nielsen edged toward frustration.

"We're spending half of the state average," said Nielsen, noting even three-quarters of the state average would be a windfall to Unified. "If we had half of that half, we wouldn't be in trouble."

School Board member Melvin Hargrove (right), a local pastor, tried to rally the board with a non-sermon sermon. He pointed out if you walk in the dark you take small steps to avoid tripping on unseen objects. The board's job is to shine the light so the district can take bigger steps.

"We're the Board of Education," Hargrove said. "We have to lead this thing."

Correction: Initially, this story suggested the district's fund balance was $1 million. The balance is actually $14.5 million for the general fund, and $19.5 million overall. The fund balance is basically the district's savings account; it exists for unexpected expenses and generally as a cushion for downturns.

The district is committed to adding $1 million a year to its fund balance to build up those reserves, but doesn't always meet those goals. Last year, an unexpected worker's comp case and loss of revenue from interest forced the board to skip that commitment. But a year earlier, the board added $4 million to the fund balance, so it's averaged out over time.

Hazen said the district would need between $40 million and $50 million in reserves to avoid borrowing money every year to deal with cash-flow issues. That would save money, but it's unlikely Unified is going to come up with $25 million in the near future to tuck away for a rainy day. It's already raining.

Watch out OPEC, here comes NOPEC!

OPEC is so last century. (Well, it was founded in 1960; you could look it up.)

But now the oil cartel may have met its match. Here comes NOPEC, a creation of Sen. Herb Kohl, D-WI, who hopes to get the U.S. Department of Justice to take on OPEC's "collusive practices" in setting the price of oil or limiting the amount of production, Never mind that those practices are exactly why OPEC was formed by those 12 oil-producing nations half a century ago.

Kohl today introduced his bipartisan legislation allowing the Department of Justice to bring actions against foreign countries to prevent future gasoline price increases.

NOPEC stands for No Oil Producing & Exporting Cartels.

"This legislation will authorize our government, for the first time, to take action against the illegal conduct of the OPEC oil cartel,” Kohl said. “The time is now for the U.S. government to fight back on efforts to fix the price of oil and hold OPEC accountable when it acts illegally.

"Our legislation will hold OPEC member nations to account under U.S. antitrust law when they agree to limit supply or fix price in violation of the most basic principles of free competition."

Kohl’s NOPEC legislation would make it clear that OPEC’s activities are not protected by sovereign immunity and that the federal courts should not decline to hear such a case based on the "act of state" doctrine. It clears away these judicially created roadblocks, he says, so the Department of Justice could bring an antitrust case against OPEC for price-fixing.

Kohl explains:

The Federal Trade Commission has estimated that 85 percent of the variability in the cost of gasoline is the result of changes in the cost of crude oil. Throughout 2007 and 2008, crude oil and gasoline prices marched steadily upwards, peaking last summer at over $140 per barrel for crude and well over $4 per gallon for gasoline. In recent months, these prices have plummeted as demand has dropped due to the serious global economic recession. However, despite declining prices, the global oil cartel remains intact and a major force conspiring to raise oil prices to the detriment of American consumers.

On Oct. 24, 2008, OPEC agreed to cut production by 1.5 million barrels a day, and on Dec. 17, OPEC agreed to a further 2.2 million barrels a day production cut. And the OPEC cartel makes no secret of its motivation for these production cuts. OPEC President Chakib Khelil put it very simply in an interview published Dec. 23, 2008, “Without these cuts, I don’t think we’d be seeing $ 43 [per barrel] today, we’d have seen in the $20s. . . . [H]opefully by the third quarter [of 2009] we will see prices rising.” In another interview in December, Khelil was quoted as saying “The stronger the decision [to cut production], the faster prices will pick up.”

Co-sponsors of the bill include Sens. Arlen Spector (R-Pa.), Patrick Leahy (D-Vt.), Chuck Grassley (R-Iowa), Russell Feingold (D-Wis.), Olympia Snowe (R-Maine), Charles E. Schumer (D-N.Y.), Dick Durbin (D-Ill.), Carl Levin (D-Mich.), Frank Lautenberg (D-N.J.) and Sherrod Brown (D-Ohio).

In the last session of Congress, the legislation was passed overwhelmingly by the Senate as an amendment to the Energy Bill and by the House of Representatives as a stand-alone measure, in both instances with veto-proof majorities. But it was left out when the two versions of the Energy Bill were reconciled.

Lehman wants employees, not banks, the priority when businesses fold

State Rep. John Lehman, D-Racine, is hoping to move employees to the front of the payment line when their employer goes out of business.

Now, banks get first dibs on whatever money is leftover when a business folds. The banks passed employees in importance in the late-1990s. Lehman wants to change state law so employees are paid for their work before banks during bankruptcy proceedings.

In other words, Lehman wants to ensure employees get paid for their work, even if their bosses bankrupt the company.

Here's Lehman's press release on the "Wage Protection Act" he introduced in the Senate:

Making sure employees are paid the wages they’ve earned if their employer goes out of business or declares bankruptcy should be a top priority according to State Senator John Lehman (D-Racine). The Wage Protection Act he’s authored (Senate Bill 2) would help to make sure that happens by giving “super priority” to liens for unpaid, earned wages.

Lehman said, “The idea of this bill is simple, as an employee you ought to be able to count on getting a days pay for a days work. That’s not always the case under current state law and that’s why it needs to be changed.”

In the late 1990’s Wisconsin’s law was changed to put liens for bank loans ahead of those for worker’s earned wages in bankruptcy proceedings. In 2003 some fairness was brought back to the system by allowing the first $3,000 in earned but unpaid wages to be collected by workers before the liens of other creditors.

“We’re in tough economic times and all too many Wisconsinites are losing their jobs. These workers are already dealing with the challenge of finding a new job. They and their families shouldn’t also have to deal with the hardship of not getting wages they’ve already earned,” according to Lehman.

Eliminating the cap means workers will be able to collect the full amount of wages they are due. Many middle class families and employees paid on a monthly basis could be placed in situations where they would not be able to collect their earnings due to the current cap. The Wage Protection Act also closes a loophole created by a 7th Circuit Court of Appeals decision that held Wisconsin wage lien laws would not apply in bankruptcy cases. Finally, the bill would allow a collective bargaining representative to file a wage claim on behalf of an employee.

Noting the recent legislative attention for ailing banks, investment firms and the auto industry Lehman said, “We need to make sure that we’re looking out for the interests of the working folks too.”

He concluded, “No one wants to see someone lose their job because their employer went out of business or declared bankruptcy, but if that happens we ought to make sure state law is on the employees side in helping them receive the wages they’re entitled to.”

More on proposed Fair Housing ordinance

A couple of commenters raised questions about the city's proposed Fair Housing ordinance. Here's a little more information on the proposal:

1. You can read through the ordinance here(it's toward the end of the file).

2. Basically, the new commission would have significant enforcement power. They'll lead investigations of alleged discrimination, interview witnesses and turn over cases to the City Attorney's office for prosecution. Hard to say what the costs to the city will be. The ordinance allows the complainant to recover legal fees.

In research, one of the most common complaints is landlords turning away parents with children. A case in Milwaukee was recently settled for $18,000.

I'm not sure how many cases involve race, but the ordinance also requires the commission to keep landlords' names confidential unless they're found in violation of the fair housing ordinance. So, it seems likely all complaints will be locked out of public view until a decision is made on the case (a lot like complaints filed with the Police and Fire Commission).

3. This will give the Affirmative Action commission A LOT more responsibility. The commission will have real investigative and enforcement power to check fair housing discrimination. It seems like that's going to take a great deal of training for the commissioners charged with investigating complaints.

4. If I'm reading the proposed ordinance correctly, it'll have some teeth. Violators could be fined up to $25,000 plus court costs for first-time offenses. Additional offenses could net $50,000 fines.

5. The ordinance is sitting right now with the Office of the General Counsel of the U.S. Department of Housing and Urban Development. The office is expected to make changes before sending it back for final approval.

6. The City Council held a public hearing on the proposal on July 15. Nobody appeared at the hearing.

SC Johnson adds historic fire station to buffer zone around corporate offices

SC Johnson bought the historic Fire Station No. 1 on Racine Street last month. If the past is an indication, the company will tear the building down.

Over at least the past 12 years, SC Johnson has created a buffer zone around its corporate headquarters in the middle of Racine. The company buys up properties around its campus and tears down the buildings to create a border of green space along its edges. The practice creates a boundary between the company and the surrounding neighborhood. (Right-top: SCJ's buffer zone along 16th Street. Right-middle: The buffer along 14th Street. Right-bottom: Grand Avenue, where SCJ owns few properies.)

The most obvious example is along 14th Street, where SC Johnson owns every property on the north side of the street from Racine Street to Villa Street. Continuing around the block, the company owns a few properties on the northeast corner of 14th Street and Grand Avenue, but little else along the street that includes St. Richard's Church.

SC Johnson owns almost every property along the south edge of 16th Street from Racine Street to Grand Avenue, and owns three-quarters of the west edge of Racine Street from 14th to 16th streets.

In all, SCJ owns 64 percent of the properties that abut its headquarters. In terms of square-footage, the number is closer to 80 percent. All of SCJ's properties adjacent to its campus are vacant lots.

The company's purchase of the old fire station at 1412 Racine St. breaks up a section of privately owned properties on the northwest corner of Racine and 14th streets. The company paid $200,000 for the property, which was assessed at $65,000 in 2008. The previous owner was Roger Olshanski, who now lives in Wausau. Olshanski had owned the property since at least 1996, and has a story all his own (another one here).

The Racine native turned a Martin Johnson Meade painting he bought for less than $20 into a windfall. Olshanski, who described himself as an "accumulator," sold the painting at auction in New York City for $1.35 million. He had no idea the painting, which had sat in the old fire house for years, was worth that kind of money until a friend recognized its significance. Olshanski took home $936,000 from the auction.

As for the firehouse, which resembles a castle, it was built in the early 1900s. This site says the tower was used to hang up hoses to dry them out after use.

It'll be interesting to see what SCJ does with the old firehouse. The city lost one its historic stations last year when The Journal Times tore it down to make a parking lot. We'll see if SC Johnson holds onto the building, or knocks it down like it has all of the other buildings surrounding its campus.

Historic Fire Station No. 1 at 1412 Racine St.