Wednesday, September 26, 2012

Walker lets Business loose in the state candy store.

Still think Republicans know how to manage money? They did create the Great Recession, remember.

Just after 1 ½ years, the Walker Authority started giving away the farm so to speak, by doling out taxpayer money with no accountability, oversight or compliance standards to private business.

This would be that train wreck down road a few years, that’ll be blamed in some way on the Democrats, when they have to come in and clean things up again.

The SPIN: Walker tried but failed to sell how grateful he was for HUD's corrections and guidance. And of course Walker emphasized how the problem started back in 2005, so don't blame him...except for the examples provided from HUD that raised all the red flags. WKOW:

This amazing story has got to tell you just how bad conservatives are at managing government and money:
The Wisconsin State Journal reported Wednesday that the U.S. Department of Housing and Urban Development's Aug. 12 letter ordered Walker's administration to improve the distribution of economic development money. The HUD letter points to numerous problems resulting from what it called the "hasty" transfer of duties from the former Department of Commerce to the new quasi-private Wisconsin Economic Development Corp.

Wisconsin apparently drew HUD's attention with a February announcement by Walker that four communities had received $9.6 million in community development block grant funding. "At the time these awards were made WEDC had no legal authority under the CDBG program to award or administer the CDBG funds. The federal agency ordered Wisconsin to hire a high-level administrator for monitoring, oversight and compliance, saying DOA currently lacks "adequate staff or experience to adequately oversee . . . the new activities that are being undertaken by the WEDC."
What was so irresponsible, did it date back to 2005?
Among the most serious findings: the process of determining the financial soundness of a company - before giving $390,000 to Gilman USA LLC, a machining company in Grafton, and $1 million to Morgan Aircraft in Sheboygan. In the case of Gilman, HUD said that WEDC staff indicated "the underwriting process was skipped in order to accommodate the business' timeline."

In the case of Morgan Aircraft, HUD said WEDC staff indicated that underwriting was done but not placed in the file. However, HUD requested a copy but none was provided.
Can you say crony capitalism?
Marquis, the state DOA spokeswoman, said new policies have been implemented in response to the HUD report. Marquis said the agency is also "carefully reviewing" records of the withdrawal of $8.6 million in CDBG funds by a former WEDC controller on Dec. 27 reportedly to pay for projects in 2011. HUD said the transfer was made "without any approval from DOA" by an unnamed controller "on the last day of employment as the WEDC controller."
Unemployment is up .2 percent, jobs are stagnant and business is raiding the state coffers, and that’s good Republican government? 



  2. $8.6M is a nice chunk of change.
    I don't suppose the Walker troops would have dished out the money in return for campaign contributions?
    I feel ashamed even thinking like that.

    Bring in the FBI.

  3. probably forced the recipients of the 8.6 pay-for-play grant to contribute to his criminal defense fund.

    Things are going to heat up, you know, expect a lot of expensive propaganda and fancy-schmancy-expensive lawyer tricks