WEDC Funds May Be Voted Upon, But Then Withheld

New money for the Wisconsin Economic Development Corporation (WEDC) may be held up until the agency corrects more administrative problems.

Democrats have been calling for the legislature’s Joint Finance Committee (JFC) to delay approval of about $14 million in new funds for the WEDC.

The corporation is the public-private agency. Governor Scott Walker and GOP lawmakers created to replace the Department of Commerce. A legislative audit and various news reports show continuing administrative problems at WEDC.

This afternoon, JFC Co-Chair John Nygren (R-Marinette) is offering a compromise. Nygren says the GOP wants the JFC to vote on the WEDC budget tomorrow, but hold the new money until more reforms are completed.

“There’s a bill out there requiring a financial audit to be done every year. I think that’s something we can do. Additionally, there’s been a number of initiatives that have been identified in the audit. We can make any additional funds dependent upon those issues being corrected.”

Nygren’s recommendation comes after a three-hour special meeting of the WEDC board this morning in Waukesha. Sen. Julie Lassa (D-Stevens Point) says WEDC is making progress. But she first wants the Legislative Audit Bureau to brief the board on policies WEDC needs to stay on track.

“Because to me, it is a bit concerning that WEDC is now approaching two years, and a lot of these policies, while they may have been informal, they have not been set in stone, [and] they have not adopted by the board.”

Governor Scott Walker is promising to strengthen the powers of the WEDC board, but admits the legislature and the public don’t have full confidence in his key economic development agency.