The health of the apartment business depends largely on people having jobs so, as residents, they can pay their rent. Their rent helps pay apartment property taxes. Gov. Scott Walker (R-Wis.), campaigned last fall on creating 200,000 jobs in our state and won the election. How is he doing on that promise so far?
Madison, Wis., has become ground zero for public employee and balanced budget issues. The two-headed dragon has taken on a real nasty tone. Walker has appeared cool under fire, and public school teachers have been the most visible among those protesting changes to public employees’ right to negotiate through collective bargaining. That ability was stripped of them in Walker’s law, signed in mid-March. How strong was the reaction? On March 14, my wife Carolyn and I were in Washington, D.C., participating in the NAA Capitol Conference, and leisurely walked the U.S. Capitol lawn on a Sunday afternoon. At the same time, back home in Wisconsin, well over 100,000 people were demonstrating at the State Capitol. That’s a bigger crowd than at Packers games.
Carolyn and I, as former public school teachers, understand what’s in a teacher’s heart. Likewise, as independent rental owners, we are keenly aware that we wake up each day to rent apartments. The rent we receive ultimately helps to pay property taxes that provide public services.
Perception becomes reality. Will the white-hot legislation in Wisconsin be perceived as a positive for business relocation or operation in Wisconsin? Will Walker’s new law lead to job creation and improved apartment occupancy? Or will teachers under attack and the reduced school and public service budgets be perceived as a reduction in quality of life? Will the 200,000 new jobs materialize? When? Where?
What happens in Madison or Washington, D.C., does make a difference in the apartment business. Our industry pays a lion’s share of the property tax and we rely on people having jobs to fill our communities. What happens in Wisconsin does not stay in Wisconsin. And the response to this legislation will likely have a ripple effect across the country. –R.S.