MADISON
- The state's economic development agency gave nearly half a million
dollars to a company that cut more jobs than it created and handed out
taxpayer funds to others for jobs in other states, according to a
bruising audit released Friday.
In
addition, the Wisconsin Economic Development Corp. didn't recover more
than $400,000 in tax credits and more than $4 million in loans it could
have when employers didn't meet the terms of their taxpayer-funded
deals, auditors concluded.
The report by the nonpartisan Legislative Audit Bureau
comes as the economic development corporation is tasked with overseeing
up to $3 billion in state subsidies for Foxconn Technology Group. The
Taiwanese electronics maker is eligible for about $1 billion in local
incentives as well.
Skeptics for years have criticized the economic development corporation for not staying on top of its duties.
“The
inability of WEDC to comply with state statutes and guidelines has put
taxpayer funds at risk," said a statement from Sen. Rob Cowles, an
Allouez Republican and co-chairman of the Legislature's Joint Audit
Committee.
"This isn’t just an issue of
unaccountability, but shows the desired outcomes of these programs have
not been consistently achieved."
The economic
development corporation in recent years gave $61,000 to one business for
creating 261 jobs that were filled by people in 36 other states, none
of them bordering Wisconsin, according to the review.
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