McCallum to veto Ashley exemption

La Crosse Tribune, Jul 25, 2002 by Sheehan, Tom

MADISON - Ashley Furniture Industries will not get an exemption from state law to fill a wetland for an expansion of its Arcadia factory. But the company's frustration with regulatory oversight might lead to reforms that better balance economic needs and the environment.

Gov. Scott McCallum on Friday will veto a state budget repair bill proposal that could have allowed Ashley to fill 13 acres near the Trempealeau River, McCallum spokesman Tim Roby said Wednesday.

The exemption would "set an undesirable precedent by allowing exemptions from a wide range of environmental regulations for projects that do not meet requirements established to protect Wisconsin's wetlands," McCallum wrote in a draft of a veto message to be delivered Friday.

McCallum's decision drew sharp criticism from Sen. Rod Moen, D-Whitehall, who said he had personal assurance from McCallum that the governor would not veto the exemption if it was approved by the Legislature.

"He's going back on his word. He's going to have to answer to a lot of people in western Wisconsin because this company employs about 3,000 people here," Moen said.

A letter McCallum received earlier this month from Ashley Chairman Ron Wanek changed the governor's commitment, however, Roby said.

In announcing his company would expand its plant in Ecru, Miss., instead of Arcadia, Wanek cited frustration with Wisconsin's regulatory process. The company is in the process of building a 300,000 square-foot, $6 million addition in Ecru that will add 500 jobs, he said.

"The legislation is a moot point because of Ashley's decision," Roby said.

As part of his veto message, McCallum will require a comprehensive review of how environmental regulations affect economic development in the state. The review will be headed by the state Department of Commerce but include input from other state agencies, including Natural Resources, Transportation, and Agriculture, Trade and Consumer Protection.

"I am concerned about the state's overall regulatory climate and its impact on job creation. As such, I am directing affected agencies to develop a plan for regulatory reform that will allow businesses to secure all necessary permits on a 'onestop' basis," McCallum wrote in a draft of his veto message.

Discussion about regulatory reform already is taking place, but the governor's veto would formalize the process and require that a regulatory reform plan be proposed in the 200305 state budget.

McCallum will not allow reforms to weaken wetland laws but wants changes to simplify the regulatory process for businesses and state agencies alike, Roby said.

Wanek urged the governor and the Legislature to "ensure that all departments and agencies within state government are motivated by statewide concerns and not the limited or personal view of one person or one philosophy."

Ashley officials say they never formally applied for a permit because they were told by DNR officials the company wouldn't receive one.

Environmental groups, which successfully sued over an Ashley wetlands ,exemption that was included in the 19992001 state budget, had urged McCallum to veto the repair bill item.

Ashley officials have said filling the wetland would have allowed the company to add 175 to 300 jobs in Wisconsin. Ashley employs 6,000 people in the United States, including 2,900 total at facilities in Arcadia, Whitehall and independence.