Link to Fox>/a> Andrew LaCombe, FOX 11 News Published: May 8, 2015, 9:43 am | Updated: May 8, 2015, 6:04 pm
MADISON – A report out Friday morning casted more doubt on how the state’s job creation organization is doing. An audit says the Wisconsin Economic Development Corporation (WEDC) hasn’t even tracked how many jobs it’s created.
Some lawmakers on both sides say WEDC could be wasting millions taxpayer dollars. Republican Gov. Scott Walker says the agency is still an important tool to spur the state’s economy.
Legislation was in the works to merge WEDC with another state agency that provides low-interest housing loans. Two hours after the audit was released, the governor asked lawmakers to drop those plans.
Walker pushed to create WEDC four years ago. It’s a public-private partnership. Walker is the chairman of the organization’s board of directors.
Friday’s report from the non-partisan Legislative Audit Bureau was not the first time problems surrounding WEDC have been uncovered. An audit two years ago also prompted a lot of criticism about how WEDC staff was spending money.
Many of Walker’s publicized appearances over the past four years have been announcements about new jobs. Companies who plan to add jobs often get tax credits, loans or grants from WEDC.
The report Friday says WEDC “did not report clear, accurate, and complete information on the numbers of jobs created and retained as a result of its programs.” •Click here to read a briefing of the audit •Click here to read highlights of the audit •Click here to read the entire audit
State Sen. Rob Cowles, R-Allouez, chairs the legislature’s audit committee.
“Get their act together,” Cowles said regarding what WEDC needs to do next . “Get going here people. This is state tax money. I’m a Republican criticizing an entity that was set up by Republicans.”
The facts show WEDC handed out more than $153 million through four types of economic development awards in fiscal year 2013.
The agency has been a punching bag for Democrats.
“It’s been an epic failure,” said State Sen. Dave Hansen, D-Green Bay.
Hansen blames Gov. Walker, a likely 2016 presidential candidate. “I think this is just another example that he’s dropped the ball,” said Hansen. “Wisconsin is secondary. His run for president is his primary goal.”
The governor would not answer questions Friday after an event in Madison.
WEDC leaders also declined to do an interview about the audit, but emailed a statement.
“We strongly disagree with findings in that audit that WEDC is not verifying job creation or following state statutes and policies,” said WEDC CEO Reed Hall. “We will review the audit’s recommendations, but it is imperative that WEDC continue to have the flexibility needed to respond quickly to the needs of Wisconsin’s business community.” •Click here to read a letter from Hall
Hall also pointed out the audit showed the organization has made positive changes, like reducing loan delinquency rates.
But Sen. Cowles says WEDC was not receptive to the audit.
“WEDC did not like the idea of the auditors being over there so much,” he said. “They complained to me privately. That always tells me that (you’re) trying to hide something. You should never be afraid of an audit unless you’ve got something to hide.”
Cowles says his committee will question WEDC leaders about the audit at a public hearing. The hearing may not happen until after the state budget process is complete, which may