Wisconsin commerce agency to lay off employees

MADISON, Wis. — The Wisconsin Department of Commerce said Monday it plans to lay off 15 employees from its safety and buildings division, citing a downturn in the construction industry.

The division is funded through fees charged for services and is operating at an estimated $1 million deficit for this year, department officials said. They said fewer businesses are asking the division to review new construction plans, which has led to a drop in income.

In addition to reviewing proposed construction, the division inspects buildings and amusement park rides to ensure safety and issues credentials to building contractors, plumbers and other professional trades. The division has about 150 employees.

“The division is closely tied to the construction and building industries. With the economic downturn, we all know the impact those industries have felt,” said Zach Brandon, the department’s executive assistant. “Frankly government isn’t immune to those same pressures.”

Commerce Secretary Dick Leinenkugel warned employees last week the layoffs were coming. The division’s revenue dropped to $14.1 million in the budget year that ended June 30, down $3.5 million from three years earlier.

Brandon said the timing and specific number of layoffs are being worked out but should be roughly 15. He would not say what types of employees would be let go, saying individuals have not been notified. The division has offices in Madison and elsewhere in the state.

“It’s real and it’s unfortunate,” Brandon said.

The news comes as state agencies are cutting their budgets to help close an estimated $6.6 billion shortfall in the budget. State employees are being furloughed for eight days this year, which amounts to a 3 percent pay cut. Gov. Jim Doyle has warned that up to 1,400 layoffs could happen during the two-year budget.

Jill Bakken, a spokeswoman for AFT-Wisconsin, a union representing building inspectors and other state employees, said the Commerce job cuts are the first permanent layoffs she’s heard of so far. She said the division does important safety inspections.

“The general sentiment is that it’s really unfortunate that positions that are so crucial to public safety are on the chopping block,” she said.