Nearly two years after demanding public-sector unions pick up their share of taxpayer-funded pensions, Gov. Scott Walker is asking government workers to bet part of their retirements on a plan to subsidize new businesses in Wisconsin.
The venture capital plan calls for moving hundreds of millions of dollars into an embattled quasi-public economic development agency that lost track of a $56 million loan portfolio, among other mismanagement problems. Documents obtained by Wisconsin Reporter show that Reed Hall, CEO of Walker’s Wisconsin Economic Development Corporation, recommended that the State of Wisconsin Investment Board loan $200 million to WEDC.
Hall noted that $200 million “represents less than 0.3 percent of the SWIB’s total assets.” SWIB manages the $76 billion Wisconsin Retirement System public employee pension trust fund, as well as several smaller trusts.
SWIB politely rejected WEDC’s offer. The brush-off might have something to do with the fact that WEDC has already developed a reputation for inattention to detail. The Milwaukee Journal Sentinel in October revealed the quasi-public economic development organization lost track of a $56 million loan portfolio , among other accountability concerns.
Sunday, February 3, 2013
If it ain't broke, break it? Walker seeks to Raid Employee Pension Fund.
The Wisconsin Reporter came across this astonishing new development: