Governor: Bailout may not save Janesville plant
MADISON, Wis. (AP) — Without a bailout for the auto industry, there is no chance for the General Motors plant at Janesville to remain open, Gov. Jim Doyle said Tuesday.
Even with a bailout along the lines of one being discussed in Congress, Doyle said chances for the plant to keep producing vehicles are "very remote."
Doyle planned to testify before a congressional budget committee on Thursday about Wisconsin's dire economic situation and the need for federal help. Wisconsin could face a $5.4 billion budget shortfall by mid-2011.
The GM plant, a fixture in Janesville for 86 years, is slated to end sport utility production in two weeks, leaving about 1,200 people out of work. The plant is set to close completely by spring.
The bailout being discussed by Congress would provide $15 billion to GM, Ford and Chrysler, but it also would require the closing of even more plants, Doyle said.
"Without it there's no chance at Janesville," he said in an interview. "With it, there's still a very, very remote chance. ... With the bailout, we're at least still alive."
Following a meeting with top GM officials and union leaders last week in Washington, state Rep. Mike Sheridan said keeping the Janesville plant open remained a long shot. The Janesville Democrat is the former leader of the local United Auto Workers union and will be taking over as speaker of the Assembly next month.
GM is still considering a state incentive plan presented in September to keep the plant open.
The fate of the Janesville plant is just one example of how the recession is affecting Wisconsin.
Doyle said he planned to talk about the challenges at Thursday's hearing before the House Appropriations Committee, chaired by U.S. Rep. Dave Obey of Wisconsin. New Jersey Gov. John Corzine and Vermont Gov. Jim Douglas also are slated to testify.
Doyle has repeatedly said Wisconsin's budget shortfall could require deep cuts to public education and health care without federal assistance.
President-elect Barack Obama promised the nation's governors at a meeting last week there would be swift action to ease the budget burden on states. One proposal being discussed would send the states $500 billion over two years.
Money for improvements to infrastructure, such as transportation, schools and "green" technology, is expected to be a part of the stimulus plan.
Doyle said he would release a list soon of infrastructure projects that Wisconsin could get started immediately with federal aid.
Doyle's budget for the next two years comes out in February, but he's already given some clues about how he intends to balance it.
He has said 3,500 state jobs will be left vacant, bonuses for state workers will be eliminated, 500 state cars will be sold, $30 million in grants will be cut, and state agency budgets will be slashed.
Doyle supports targeted tax increases, such as one on hospitals that would be repaid with federal money and another one on oil companies. Both ideas were previously rejected by the Legislature.
Even with gas prices dipping below $2 a gallon for nearly five-year lows, Doyle said he will continue to pursue a tax that would be levied against companies selling oil in Wisconsin. Doyle said it made sense to have those companies pay a portion of the cost for maintaining Wisconsin's roads, no matter the current price at the pump.
"To me, whether we're in a crisis or not in a crisis you have to continue to find a way to fund the roads of the state," Doyle said. "That cost continues to go up."
Critics that derailed the proposal in the Legislature argued that it may be unconstitutional and it would be impossible to stop the tax from being passed along at the pump.
Doyle has said he wants to avoid a general sales or income tax increase to balance the budget.

Dec 12, 2008 at 9:31 p.m.
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I think the ppl buying foreign cars should grow up, support our country, and buy a real american car (GM preferably).
Dec 12, 2008 at 6:45 a.m.
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Thank you for the link to the closed information. Don't worry about me MOC0248, I am just fine. The media said back in June that the plant is closing, when it was only in layoff status,so that when it actually submitted the closing status with the state, who could tell there was news?
Doesn't anyone see a problem with this? I spoke with the Gazette about this and they said they were saying it was closed when they hadn't made it official prior to October 13 because "everyone else was saying it". See the problem now Gazette? Tell the truth and people won't get confused.
Dec 11, 2008 at 10:53 a.m.
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Anything on Google seems to have been more acurate than you so far. Shall I repeat some of your better "facts"?
Dec 11, 2008 at 9:43 a.m.
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why does hell have to be hot? maybe its cold and a fire wouldn't stand a chance in hades
Dec 11, 2008 at 9:32 a.m.
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Then no. No chance.
Dec 11, 2008 at 9:26 a.m.
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"Chance" is the operative word. If you also believe snowballs can survive in Hades, then yes, there is a chance.
Dec 11, 2008 at 8 a.m.
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Help me out here people.
Individual welfare bad, because they have made poor life choices.
Corporate welfare good, because...?
Dec 11, 2008 at 7:47 a.m.
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Joan: Are you OK? You should really read the spreadsheet that ZOOM posted. It shows a layoff and then further down the spreadsheet is shows the closing. If you want to cling to something that isn't real go ahead but don't yell at the media who has it right!
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Joan, maybe you you issue an appology to the Gazette and AP
Dec 10, 2008 at 9:48 p.m.
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Joan is kidding...right?
You might want to check out the Plant Closing and Layoff spreadsheet, from the Wisconsin DWD. 10/13/08 and 10/21/08. 1,345 GM people total. Note that it says Closing, not Layoff. You'll also see Lear, LSI, and Allied there too. Sorry.
http://worknet.wisconsin.gov/worknet/dow...
Dec 10, 2008 at 9:12 p.m.
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Yes. I was just joking..I know there will be no new product. But I am worried about Joan.
Dec 10, 2008 at 8:35 p.m.
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how about lear and the others they get a bail out too>?
Dec 10, 2008 at 8:24 p.m.
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I find it humorous that the loan for the carmakers are being opposed by the same lawmakers that were beat out by UAW supported politicians. That COULD mean the D3 have to file bankruptcy and void the UAW contracts, because the UAW decided to defy and go against the same lawmakers that could save them. What goes around, comes around. The UAW should have stuck to enforcing their contracts, and stayed out of the political arena, but they just couldn't control theirselves.
Dec 10, 2008 at 7:37 p.m.
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Officially, the plant is slated to cease production of vehicles - not close as all media have spouted including this paper. So it's basically a lie to say they are closing in the spring. They are ceasing production of the Isuzu in the spring, and at that time the plant will be idled. Plant closings legally require notice to the State, so that workers can prepare, and GM has not made such notice.
If GM wanted to close this plant, they would say so. They have not said so. So please, can we stop having the Gazette and Associated Press basically lying to everyone? It appears that even our journalists are brainwashed into saying what everyone else says, instead of reporting the truth. Where’s your integrity?
Is it too much to ask for our media to be accurate with what we say, and let us be the ones to draw the conclusions? Or, have they become such a vehicle for brainwashing all of us that they no longer even know what they have become?
The truth is the truth and a lie is not the truth. Where is the ethics in this world? Am I the only one who cares about the truth? Are bloggers the only real journalists left in this sad corporate run and sheeple led country?
Dec 10, 2008 at 4:19 p.m.
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momof5- Captain obvious is a great hame for Doyle, huh! Kudos to that!
Dec 10, 2008 at 3:41 p.m.
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I agree with Snarly! Put in tolls! make a w pass!
Dec 10, 2008 at 2:27 p.m.
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Wahoo, are you serious with your comment? If you are, then we are in more trouble than I thought.
Dec 10, 2008 at 2:22 p.m.
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oops--s/b Chrysler
Dec 10, 2008 at 2:21 p.m.
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GM & Chysler are on the brink of utter collapse. If either is able to survive at all, don't expect manufacturing facilities to remain in the U.S.
Dec 10, 2008 at 1:53 p.m.
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Janesville has two extremely good thinkers in Washington - Paul Ryan and Russ Feingold. Different parties but both have very good intellects and practice sound politics. Maybe if the two of them put their heads together they will be able to come up with alternative uses for the Janesville plant that will ensure conitued employment for the people of Janesville and Rock County. They might consult with Al Gore on producing wind turbines or solar panels that along with Govenment tax credits would ensure future generations of "green" employment in Janesville for years to come. Let's all start thinking "outside the box".
Dec 10, 2008 at 1:32 p.m.
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The best chance GM, and the entire State of Wisconsin has is to rid itself of "Captain Obvious."
Dec 10, 2008 at 12:55 p.m.
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So..we are not getting a new product?
Dec 10, 2008 at 12:27 p.m.
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Put up toll booth's at the borders,that will help make some change in wisconsin
Dec 10, 2008 at 11:42 a.m.
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raystone - Paul Ryan made it perfectly clear that he did not support the finincial industry bailout, but he had to vote for it due to 'experts' opinion that doom and gloom would follow the collapse of the industry. Basically his heart said yes, but his mind said no.
Dec 10, 2008 at 11:27 a.m.
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Now the question is will Congressman Paul Ryan vote "yes" on this auto bailout like he voted "yes" on the bailout disaster of big corporate banks ?
Dec 10, 2008 at 11:24 a.m.
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I hope you all noticed this line from above "Doyle has repeatedly said Wisconsin's budget shortfall could require deep cuts to public education and health care without federal assistance."
Doyle is setting up 2 possible strategies with that should he fail to get Wisconsin on the bailout bandwagon, he can blame the federal government for his need to raise taxes significantly to balance the budget, and he can renege on the state's commitment to fund 2/3 of public education thereby forcing big increases in property taxes and reductions in school district employment allowing him to balance the budget with spending cuts while making the school districts look like the bad guys.
Dec 10, 2008 at 10:22 a.m.
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I think most new this would not save the Janesville plant. The only thing that would save this plant, is a big swing in the economy.
Dec 10, 2008 at 10:03 a.m.
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Thanks Doyle. Captain obvious. Get rid of this clown.
Dec 10, 2008 at 9:15 a.m.
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Note: Doyle has said he wants to avoid a general sales or income tax increase. What he will do is raise or make new FEEs. Look how high he has the fees to put plates on a car or truck. He says they are not a tax, but a fee. Sounds like lipstick on a pig to me.
Dec 10, 2008 at 9:08 a.m.
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Some polititians have and will keep people on the hook of of the promise of keeping the plant alive so they can further their career. Remember the promise of a new plant out next to the interstate? That person milked that promise as far as it could go. "just vote for me and I'll save the plant" Yeah, yeah, yeah...
Dec 10, 2008 at 9:08 a.m.
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I hope when the thousands of jobless auto workers are about to lose their homes they will be able to go to Washington and get a bailout. Good Luck!
Dec 10, 2008 at 7:52 a.m.
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Gosh, that tobacco money sure would have been handy right about now. Instead, they took the one-time up front payout and shorted the state about...how many $billions?
Dec 10, 2008 at 7:36 a.m.
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Surprise, surprise! I have been saying this for weeks now. Let's move on and try to find some new industry.
Dec 10, 2008 at 7:33 a.m.
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Call it official then, the Janesville plant is closed and that’s the end of the story. When a politician tells his constituents that the possibility that something good will happen to them is “remote”, he means remote like winning the lottery. When it’s “very, very remote”, that’s political speak for “not in a million, billion, trillion years”. I wish things had worked out otherwise, but stick a fork in it, this plant is all done. Anybody who has been holding off making plans based on hopes the plant would reopen, and anybody who is spending public money to persuade GM to keep it open, needs to immediately redirect their efforts.
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