Richards Report - State jobs agency fails as Wisconsin ranks last in Midwest for job growth, May 3, 2013

Rep Jon Richards - 19th District

May 3, 2013


State jobs agency fails as Wisconsin ranks last in Midwest for job growth

This week, the non-partisan Legislative Audit Bureau released a scathing audit of the Wisconsin Economic Development Corporation (WEDC), showing gross negligence, willful ignorance of the law and misappropriation of taxpayer funds by the state’s flagship economic development agency.


Among other things, state auditors found that WEDC had made taxpayer-funded financial awards to ineligible recipients, for ineligible projects and for amounts greater than policies allowed. WEDC employees were also found to have used taxpayer money to make highly questionable purchases of football tickets, alcohol and iTunes gift cards. WEDC's incompetence and mismanagement of over a half billion dollars in job creation funds helps explain why Wisconsin is dead last in the Midwest in job growth.

The legislature’s audit committee is scheduled to discuss the WEDC audit on Thursday—the same day that the legislature’s budget committee is scheduled to approve millions in funding for WEDC in the 2013-15 state budget. As a member of both the audit and budget committees, and as your state representative, I find it inappropriate for the budget committee to consider providing tens of millions in additional taxpayer funds to WEDC until we receive answers to the countless questions that have been raised by the recent audit.

So this afternoon, I and three of my colleagues on the budget committee asked the co-chairs of the committee to postpone consideration of WEDC budget until the legislature and the public have had an opportunity to fully review the audit and get our questions answered. No action should be taken on the WEDC budget until additional corrective measures are implemented to ensure the responsible use of taxpayer funding and prevent additional financial mismanagement.

Sincerely,
JON RICHARDS

State Representative
Assembly District 19
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