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How Walker Turned 'Job Creation' Into a Goodie Bag for Campaign Donors
TPM ^ | July 23, 2015 | Brian Murphy

Posted on 07/25/2015 11:04:11 PM PDT by 1947Jenn

Apologies for posting from TPM. Discussion on a thread sent me looking for information on the Walker/WEDC situation as that was a new program he implemented from the start. While I generally do not like this source, the information appears rather cut and dried. Even if 1/2 of it is exaggerated, there is a lot to be concerned about.

[SNIP]"One of his first acts in January 2011 was to call an emergency session of the state legislature. One of the first pieces of legislation he signed as governor, Act 7, privatized the state’s department of commerce by turning it into a public-private hybrid called the Wisconsin Economic Development Corporation. WEDC’s board of directors was to be chaired by the governor himself to help him make the state more “business friendly” by doling out grants and tax incentives to businesses, helping Walker fulfill a campaign promise to add 250,000 new jobs to the state during his first term.

Four-and-a-half years later, however, Wisconsin continues to stagger. The state has seen some of the weakest job growth in the midwest, and Walker is hitting the trail with one of the weaker economic records in the ever-growing Republican field.

What happened?

From the start there were problems. Only one year in, journalists and watchdogs began uncovering evidence of mismanagement in WEDC.

After filing open records requests in 2012 to scrutinize the agency’s first year of operations, the Milwaukee Journal Sentinel learned that WEDC had lost track of much of their initial $56 million loan portfolio. The agency was discovered to have understated, by about a third, the amount of money it had loaned out to companies who had fallen behind on repayments. And a pattern began to emerge: two loans totaling some $5 million had gone to two timber companies, Flambeau River Papers and Flambeau River Biofuels, both run by William “Butch” Johnson, a donor to Walker’s campaign. (At the time in 2012, Johnson said he planned on repaying taxpayers for the $2 million owed by the paper company and would personally vouch for $1 million of the outstanding loan to the biofuels company - neither happened.)" [SNIP]

To add to the problems, the new public/private agency didn't put into place personnel policies until over a year after it's inception. Then there is this:

"But months later in 2013, a legislative audit gave little reason to think much had changed and put the agency’s expenses into perspective. WEDC was found to have violated the laws it was required to follow in administering almost $350 million in bond assistance, $110 million in tax credits, $40 million in grants, and $20 million in loans.

“[WEDC] had no policies for determining how to handle delinquent loan amounts,” said the report’s authors. “We reviewed files for 64 awards that WEDC made in FY 2011-12 and found that WEDC made some awards to ineligible recipients, for ineligible projects, and for amounts that exceeded limits specified in its policies.”" [SNIP]


TOPICS: Crime/Corruption; News/Current Events; Politics/Elections
KEYWORDS: walker; wedc; wisconsin
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To: Jane Long

——Walker’s supposed affection for CommieCore.

There’s a thread above noting that Walker line item vetoed a provision strengthening common core.

====This provision is unnecessary and would have codified assessment criteria in state law that are closely aligned with national standards I oppose and which local school districts should not be mandated to adopt. Ultimately, local school boards across Wisconsin should be able to determine what test they administer and what standards they adopt.===

http://www.freerepublic.com/focus/f-news/3316741/posts

——how WI universities have suffered

Walker has taken professor tenure out of state law and placed it in the Regent’s oversight. This will allow flexibility in closing miniscule programs (ethnic studies) that graduate less than 5 graduates a year. Many U W professors teach zero or 1 class per semester.

Since when it is a bad thing to reduce the power and of leftist academics?

http://www.rightwisconsin.com/perspectives/3-Reasons-The-UW-System-Should-Dump-Tenure-306254391.html

Walker has also frozen tuition increases protecting middle class Wisconsinites.

http://www.bing.com/search?q=right+wisconsin+walker+freezes+tuition+2015&go=Submit&qs=n&form=QBRE&pq=right+wisconsin+walker+freezes+tuition+2015&sc=0-38&sp=-1&sk=&cvid=9c9e8ed3d0b74ff49b9416b9797f9d22

-——he left 1,000+ WI jobs on the table due to a political deal with the

His democrat predecessor gave the entire store to the tribes. Walker couldn’t break the terms of that agreement without massive losses.

=====As Governor Walker weighed his decision, the Potawatomi Tribe decided to withhold a $25 million revenue sharing payment to the state of Wisconsin.

The tribal compact negotiated by Governor Jim Doyle with the Potawatomi Tribe required a special kind of process be followed when disputes like this arise, and that process is called arbitration. Arbitration just finished up, and now, the state and the Potawatomi Tribe must draft an amendment to the original Doyle compact.===

http://fox6now.com/2014/12/03/its-complicated-doyle-tribal-compacts-making-decision-on-kenosha-casino-project-challenging/


41 posted on 07/26/2015 7:32:42 AM PDT by sgtyork (Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy)
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To: Jane Long; Senator_Blutarski

I think #39 is all that anyone needs to understand on this subject at this time.

Walker does have weaknesses however and that is in a lack of consistent message. His attack on Trump and his flip flops on illegal aliens show confusion and inconsistency. Begging the pardon of those that love him but I am open to hearing a Walker supporter explain his sudden changes in positions. Trump attributes the changes to Walker’s big donors.

Trump went on the attack yesterday as a response to Walker’s unsolicited salvos. And now Trump is about even with him in Iowa where Walker had been holding a strong lead. Obviously Walker missed the shot but what else could he do?

Walker is in a jam on such matters. He’s got to get into the game to score. He can’t hold back. He decides not to get behind Trump like Cruz did because to do so would erode his lead in Iowa which happened nonetheless.

Trump is hard to overcome. The news media have already thrown everything they can at him and he comes out stronger. He even carries more vets now than McCain.

The reason Trump is emerging as the breakaway leader is because he reaches the low info voter better than anyone including Hillary. Then Cruz is taking conservatives, vets and yes Hispanic Americans and blacks and presto he’s far in the lead nationally ahead of everyone else.


42 posted on 07/26/2015 7:37:23 AM PDT by Hostage (ARTICLE V)
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To: conservativejoy

———The GOP in Wisconsin no longer defends what a mess WEDC has been.

It would have been more TRUTHFUL to say that the GOP in Wisconsin has addressed the difficulties of the WEDC which was an innovative approach to economic development.

===Debate over WEDC was tense, as committee Democrats railed against the agency’s transparency troubles in recent years. Republicans acknowledged the need for WEDC reform but defended the agency’s tools that have in fact played a pivotal role in bringing some jobs and companies to Wisconsin.

Republicans also pointed out that things were not so great under former Gov. Jim Doyle’s Department of Commerce, the precursor to WEDC. Transparency issues abounded there as well, especially under former Secretary Mary Burke.

http://www.maciverinstitute.com/2015/05/joint-finance-approves-changes-to-wedc-dhs-budgets/


43 posted on 07/26/2015 7:43:16 AM PDT by sgtyork (Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy)
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To: Jane Long; Senator_Blutarski
CORRECTION:

Then Cruz Trump is taking conservatives, vets and yes Hispanic Americans and blacks and presto he’s far in the lead nationally ahead of everyone else.

I'm a Cruz fan but recognize reality. Cruz is taking conservatives, Vets and a good chunk of Hispanics but he's not taking blacks or low info voters. The reality is Trump is taking these groups as well and then some.

I'm growing to like Trump; he's actually getting better as he moves ahead, he's becoming a better candidate as reported in the press yesterday. That's even worse news for Bush and the GOPe.

44 posted on 07/26/2015 7:46:02 AM PDT by Hostage (ARTICLE V)
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To: sgtyork; 1947Jenn; hoosiermama; Jane Long; Hostage
Doesn't look like the problems at WEDC have been addressed at all: Link

OSHKOSH (WKOW) -- For a second straight meeting the Wisconsin Economic Development Corporation (WEDC) Board of Directors failed to address questions about money the agency has awarded to a company that continues to outsource Wisconsin jobs.

In April, a 27 News investigation revealed the Eaton Corporation was laying off 93 people at its Watertown plant and sending those jobs to Tijuana, Mexico.

It marked the second time in three years the company has outsourced jobs to Mexico. In April 2013, Eaton Corp. sent 163 jobs from its Cooper Power Systems plant in Pewaukee to Tijuana as well. The company is outsourcing despite receiving nearly $370,000 tax credits from WEDC.

"Obviously our ultimate goal is to make sure that businesses aren't outsourcing," Gov. Walker told 27 News on April 30, 2015, three days after our investigation revealed that second case of outsourcing.

The Governor also said he had asked WEDC officials at that time to look at clawing back some of that money.

"We're not necessarily concluding that we can't take action even under the current arrangements. we're still trying to look through what other options we might have," said Gov. Walker.

It seemed clear Governor Walker thought he might get some answers on the issue at Monday's quarterly meeting.

"They're gonna give some of updates later at the board meeting, they do that on a constant basis," said Gov. Walker early Monday morning.

Rep. Peter Barca (D-Kenosha), who sits on the WEDC Board, also expected an update.

"Absolutely, we fully expect they will let us know this morning," said Rep. Barca

But when Rep. Barca asked for an update, WEDC Chief Legal Counsel advised board members not to discuss the matter, because it had not been noticed on the public agenda for Monday.

27 News asked new Board Chair Dan Ariens, President and CEO of Ariens Company, why Eaton's contract status wasn't considered urgent enough to be scheduled for discussion Monday.

"Today's agenda had its agenda structure and we followed that structure," said Ariens.

The WEDC Board won't meet again until October, meaning answers on what WEDC is doing to claw back taxpayer dollars may not be known for another three months.

45 posted on 07/26/2015 7:58:07 AM PDT by conservativejoy (We Can Elect Ted Cruz! Pray Hard, Work Hard, Trust God!)
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To: sgtyork

Thanks for the info and input!


Since when it is a bad thing to reduce the power and of leftist academics?


Never!


46 posted on 07/26/2015 8:10:47 AM PDT by Jane Long ("And when thou saidst, Seek ye my face; my heart said unto thee, Thy face, LORD, will I seek")
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To: Hostage

Thanks much, hostage. Always appreciate your information and take.

Agree, completely about Trump. I have relatives who were all in on the Hopenchange wave....that are actually sending me Trump articles. Says something.


47 posted on 07/26/2015 8:12:21 AM PDT by Jane Long ("And when thou saidst, Seek ye my face; my heart said unto thee, Thy face, LORD, will I seek")
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To: hoosiermama

The State agency made loans that turned out bad trying to lure and or develop business in Wisconsin. Just is not a scandal.

If people here want to not vote for Walker because he isn’t tough enough on illegal immigration or they think Walker is too bland a personality to win, those are legit reasons. But the lefty talking point crap Trump retweeted yesterday? Nah, that reflects bad on Trump.

There are a lot of good openings Trump has right now. He needs to transition to serious plans and measures to fix things shortly.


48 posted on 07/26/2015 8:32:04 AM PDT by SteveAustin
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To: Ben Ficklin

They can say that all they want, but it isn’t true.


49 posted on 07/26/2015 9:39:20 AM PDT by FredZarguna (Next stop: anywhere but Willoughby.)
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To: conservativejoy

“Doesn’t look like the problems at WEDC have been addressed at all: Link

OSHKOSH (WKOW) — For a second straight meeting the Wisconsin Economic Development Corporation (WEDC) Board of Directors failed to address questions about money the agency has awarded to a company that continues to outsource Wisconsin jobs.” [SNIP]

It’s worse than I thought. I’d love to see those grant contracts. Suspect the strings were flimsy or non-existent. Kids bartering Halloween candy may well be better at locking up deals.


50 posted on 07/26/2015 10:44:14 PM PDT by 1947Jenn
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