State Representative Andy Jorgensen (D-Milton), together with his fellow Rock County Democrats, demanded answers from the Wisconsin Economic Development Corporation on a foul deal offering the John Deere corporation $2 million in tax incentives, just ahead of the company’s announcement that it will lay off 100 workers at its Janesville warehouse and manufacturing plant. John Deere and WEDC officials touted the plan will create “80 new jobs” in Horicon.
“Here’s the bottomline: John Deere’s getting a $2 million reward for slashing 20 jobs and pitting two Wisconsin communities against one another,” said Jorgensen. “Who at WEDC doesn’t understand this is a terrible deal?”
In a letter to WEDC Secretary and CEO John Hogan, Jorgensen and Reps. Deb Kolste and Mark Spreitzer and Sen. Janis Ringhand demand to know precisely when WEDC was made aware of John Deere’s plan to eliminate 100 jobs in the Janesville area, and what efforts WEDC made to keep some or all of those jobs in Janesville. They inquire whether or not WEDC made any attempt to require net job creation to the allocation of the $2 million of taxpayer resources. Finally, the Rock County Democratic lawmakers ask if any of the promised or allocated resources still can be rescinded or reclaimed, and what action WEDC will take to ensure that, in the future, taxpayer dollars are not allocated to companies which then immediately eliminate jobs in our state.
“I can’t be sure whether it’s egregious incompetence or extreme corruption leading WEDC officials, time and again, to offer sweetheart deals to big corporations that just take the money and run. But, while they treat state resources like play money, real people are affected. 100 people in Janesville are losing their jobs,” said Jorgensen. “We absolutely must clean house at WEDC, if we’re ever going to get our state back on track, economically.”
Jorgensen noted that WEDC has had to write off a shocking $7.6 million in taxpayer-funded loans since the organization was created. Audits and investigative reports have revealed possible pay-to-play within WEDC, as taxpayer assistance was granted to major donors to Governor Scott Walker, fraudulent claims on WEDC applications which should have easily been detected, and that WEDC has routinely not followed state law or its own policies.
