Scott Walker's new budget cuts $300M from UW, but is $3 billion higher. Who's getting the money?
Well, no surprise here. A boatload of cashis going to Squatty's favorite slush fund, the Wisconsin Economic Development, er, Disaster Corporation.
http://www.uppitywis.org/blogarticle/economic-development-grow-public-oversight-shrinks
I've heard about the cuts,” the Buffalo County man said. “But this budget spends more. Who’s getting more money?” Folks are concerned about big cuts to the UW; cuts to local schools; scaling back of health programs for the disabled; public radio and TV losing state support. But the new budget spends $3 billion more than the last. Where is that money going?
One place to look is the Wisconsin Economic Development Corporation (WEDC). Despite its name, WEDC is a part of state government; in fiscal year 2012-13 it received over $62 million from the budget (including about $4 million in federal funds) and the agency can authorize potentially millions more in tax credits. The Governor’s flagship program turned troubled when auditors found procedures weren’t written down, loans were lost and Wisconsin was penalized. Three Chief Financial Officers left – one after only a day on the job.
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The Governor creates a new board. He kicks off the board the legislators who ask too many questions. The new board will only be private sector folks chosen by the Governor. The budget adds more money into the mix: $55 million in a revolving loan fund and almost another $10 million in tax credits. Governor Walker then proposes taking existing business tax credits and converting them into refundable tax credits. What does that mean?
Think about the refund you might receive when you file your taxes. The refund comes because you paid in more than you owed. It’s your money coming back. What if the rules were changed so you didn’t owe any taxes? You still filed your tax return but you owed nothing. A refundable tax credit would still give you a refund check signed by the people of Wisconsin. That’s what’s going on.