DAILY WISCONSIN

Cronyism

Bad Ideas, Corrections, Crony Capitalism, Cronyism, Foxconn, Gov. Walker, Government Spending, Mendacity, Trump, WEDC

Predictably, Trump Comes Up Empty on Foxconn

From The White House’s official transcript:

This is just the beginning.  This is one of the largest plants in the world.  And when you think in terms of 20 million feet — if you build in Manhattan a million-foot building, that’s a very big building.  They don’t get much bigger.  And here you’re talking about more.  Think of it: more than 20 million feet.  And that’s probably going to be a minimal number.

So I’m thrilled to be here in the Badger State with the hardworking men and women of Foxconn working with you.  Moments ago, we broke ground on a plant that will provide jobs for much more than 13,000 Wisconsin workers.  (Applause.)  Really something.  Really something.  Thank you, fellas.

Budget, Cronyism, State Government, WISGOP

Republican State Budget: No Help For One Million Student Loan Borrowers, But a Special Favor For One Electric Car Enthusiast

The Milwaukee Journal Sentinel first reported on the inclusion of the “Kapenga Kickback”: “A last-minute budget provision to make it easier to sell cars made by Tesla is aimed at winning the crucial vote of Sen. Chris Kapenga, who has pushed for the measure in the past and owns a business that sells Tesla parts and salvaged electric vehicles.

Corporate Welfare, Crony Capitalism, Cronyism, Foxconn, Government Spending, State Capitalism, State Government, WEDC

‘Every paragraph revealed another strange twist or failure’

As it turns out, history had already determined that state handouts to attract and keep businesses was a horrible idea, so bad in fact many states amended their Constitutions to prevent those mistakes from ever happening again in the future.

After reading the Cap Times article “Where to now with Foxconn? It won’t leave Wisconsin, but it won’t build what it promised,” where every paragraph revealed another strange twist or failure, I had to look up why Scott Walker and his band of plundering Republicans pirates liked the idea of state corporate handouts so much. Not surprisingly, their actions weren’t based on anything I found in the real world, it was simply pure ideological theory. Look at how much money we’re losing, and how few jobs they’re creating…

Via DemoCurmudgeon: History, Corporate Tax Incentives, and the State Constitutional Gift Clause collide with Scott Walker’s economic theories.

Business, Crony Capitalism, Cronyism, Government Spending, Newspapers

Business Leeches Dislike Private Initiative 

You see, in Janesville, extremely wealthy individuals and politically connected pals including large corporations with hundreds of millions in cash on hand focus more on getting substantial capital hand-outs and other free stuff, usually by way of lucrative TIF deals, from local taxpayers before they commit to Janesville. It’s the first commandment from their economic development bible here. Thou shalt not invest in Janesville or create jobs before capturing some free TIF surplus capital, free land or other free stuff. Their second commandment is a warning for local taxpayers: Thou shalt not believe in false hope that growth will come without providing “incentives.” You get the idea.

Via Rock Netroots: In Janesville, Potential From Developer Attracts The Moocher Club.

Business, Crony Capitalism, Cronyism, WEDC

Nebraska Sacks Former WEDC Official

Unwanted anywhere –

A woman who played a key role in Wisconsin’s economic development agency, including overseeing a $500,000 taxpayer loan to a failing construction company, has lost her job as the top economic leader in Nebraska.

Nebraska Gov. Pete Ricketts’ office announced Thursday that Brenda Hicks-Sorensen is no longer that state’s economic development director. She had been on the job a little more than eight months.

She was previously the vice president for economic and community development for the Wisconsin Economic Development Corp.

Via Former WEDC official fired as Nebraska’s top economic development official @ State Journal.

Crony Capitalism, Cronyism, Government Spending, WEDC

WEDC Spends More, Produces Less

The state’s flagship job-creation agency handed out nearly $90 million more in economic development awards last year than the previous year, yet those awards are expected to create or retain almost 6,000 fewer jobs and result in $400 million less in capital investment.

Most of the additional award funding resulted from a historic rehabilitation tax credit that Gov. Scott Walker and the Legislature expanded in 2013. The agency gave out $2.9 million in 2013-14, but that jumped to $78.1 million last year.

Even without the historic credits, total economic development awards increased $13.5 million, while promised job creation and capital investment dropped….

Via AGENCY HANDED OUT $90 MILLION MORE LAST YEAR: WEDC awards increase as job creation numbers fall @ State Journal.

Business, Crony Capitalism, Cronyism, Government Spending, WEDC

WEDC grants Kohls up to $62.5 million in state taxpayer subsidies, but multi-billion-dollar company falls far short of stipulated goals

But there’s another Kohl’s story Walker doesn’t tell.

It’s about the $62.5 million package of tax credits given to Menomonee Falls-based Kohl’s Corp. — the biggest state subsidy for creating jobs under the Walker administration — that three years later isn’t generating the promised jobs or capital spending.

The deal allows Kohl’s to collect tax credits annually for each created job that meets certain criteria — even if that position vanishes after a year.

Via Scott Walker’s untold story: Jobs lacking after big state subsidy of Kohl’s stores @ WisconsinWatch.

Business, Crony Capitalism, Cronyism, Government Spending, WEDC

No Change in WEDC Cronyism

“Are you going to follow the recommendations in the audit?” I asked the Board Chair of the Wisconsin Economic Development Corporation (WEDC). He crossed his arms, sat back and smiled at me.

A smile that, to me, said I was annoying him.

The clearest path to better outcomes at Governor Walker’s flagship jobs creation agency is to follow the recommendations of the nonpartisan Legislative Audit Bureau (LAB).

However, during a recent and very long public hearing investigating the troubled agency, I repeatedly heard obfuscation, deception and disdain for the law.

Via Sen. Kathleen Vinehout: WEDC Leaders Missed Opportunity to Apologize and Reform By @ Uppity Wisconsin.