Here & Now

Wisconsin Jobs Agency Faces Criticism At Committee Hearing

FREDERICA FREYBERG:

NOW TO THE STATE CAPITOL WHERE THE CONTINUING TROUBLE AT THE STATE’S FLAGSHIP ECONOMIC DEVELOPMENT AGENCY GOT A HEARING THIS WEEK. STATE AUDITORS TOLD A LEGISLATIVE PANEL THAT THE WISCONSIN ECONOMIC DEVELOPMENT CORPORATION DID NOT ADEQUATELY TRACK COMPANIES RECEIVING STATE INCENTIVES TO DETERMINE WHETHER THEY WERE ACTUALLY CREATING JOBS, AS REQUIRED BY LAW. AUDITORS SAID WEDC STARTED VERIFYING JOB CREATION AS OF 2015, BUT EVEN THEN DID NOT LOOK AT WAGES PAID OR HOURS WORKED. DEMOCRATIC STATE SENATOR KATHLEEN VINEHOUT SAID THERE HAS BEEN TOO LITTLE ACCOUNTABILITY AT THE AGENCY.

KATHLEEN VINEHOUT:

THERE WAS A SAMPLE THAT WAS GIVEN THAT WEDC VERIFIED 25 — LOOKED AT 25 COMPANIES AND COULD VERIFY 20 OF THE 25, THE INFORMATION THAT WAS GIVEN. BUT NONE OF THAT INFORMATION WAS INDEPENDENTLY OR ANNUALLY VERIFIED. NONE OF IT. THERE’S NO EVIDENCE AT ALL. THAT WAS CLEARLY INDEPENDENTLY AND ANNUALLY VERIFIED.

JAKE KUESTER:

FOR EVERY SINGLE ONE OF OUR TAX CREDITS, WE ALSO GET PAYROLL INFORMATION. THAT PAYROLL INFORMATION DOES INCLUDE INFORMATION SUCH AS WAGES PAID AND HOURS WORKED. THAT’S ON ALL OF THEM FOR EVERY SINGLE ONE OF OUR TAX CREDITS THAT WE DO. IN ADDITION TO THAT, WE ALSO DO OUR ANNUAL VERIFICATION. THAT’S THE 25 THAT YOU’RE TALKING ABOUT THERE. THE PAYROLL INFORMATION THEN FOR ALL OF THEM, TAX CREDITS, GRANTS AND LOANS, IS PROVIDED FOR ALL OF THEM AND VERIFIED BY ANOTHER MEMBER OF OUR STAFF, NOT THE ORIGINAL MEMBER THAT DID THE FIRST VERIFICATION, BUT A SECOND STAFF MEMBER TAKING A LOOK AT IT.