Remember when Scott Walker said he wouldn’tallow taxpayer funds to go to companies that outsourcejobs?
Well, looks like that didn’t happen.
The folks over at Citizen Action ofWisconsin took a look at the policies implemented by the Wisconsin EconomicDevelopment Corporation (WEDC), Walker’s public-private answer to the CommerceDepartment, and found that despitepublic statements that WEDC would close its outsourcing loopholes, nothing much has happened.
This wasn’t an easy story to track down.
Robert Kraig, executive director ofCitizen Action, told me that WEDC’s records aren’t terribly transparent. Theyhad to comb through rather opaque publicly available agenda and meeting minutesto find what they were looking for. And what they found was, well, not much:
- Companies that receive WEDC grants,loans or tax credits have to give a 30-day notice after laying off employees.
- New WEDC contracts require companies tonot use WEDC funds directly on outsourcing. But as Kraig explained, that doesn’tmean that these companies can’t outsource while receiving WEDC’s taxpayermoney. It just means that they can shuffling around the funds to that they cando both at the same time.
I’ve reached out to WEDC to confirm ordeny this story but haven’t heard back. Over at Wisconsin Public Radio, GilmanHalstead got this much:
"WEDC spokesman Mark Maley wrote in an emailedstatement that the agency has put new language in contracts for companies thatget loans or tax credits barring them from using any WEDC money to outsourcejobs. He declined to confirm whether that restriction prevents companiesfrom offsetting outsourcing they may do, by using WEDC grants to create jobs inWisconsin."
Even worse, Citizen Action turned up an evenbigger loophole. During the first budget cycle in Walker’s term, the GOPLegislature created huge new, multimillion-dollar tax credits for manufacturers with no accountability measures. (Here’s my take onit when it happened.) Citizen Action found that manufacturers can still claimthese tax credits while outsourcing. You’ve got that right: Manufacturers canplay it both ways. Send jobs elsewhere while getting tax perks simply forstaying in the state.
I’ll update this story as I get more information.
Since job creation is a central issue in thegubernatorial campaign, it’s sort of startling that the state’s largest mediacompany is taking a pass on this. Perhaps they’re too busy closing ranks aroundWalker to help his re-election bid. Another Journal Sentinel fail, if you askme.
