Governor Scott Walker created the Wisconsin Economic Development Corporation to replace the Wisconsin Department of Commerce. WEDC grants loans that would give assistance to a company's attempts to grow and employ more workers within the state of Wisconsin. According to Wisconsin Public Radio, "The agency has been plagued by mismanagement and questions about handing out loans without properly vetting recipients." Walker introduced a state budget in February 2015 which removed all elected officials, including himself, from the board. This was revised by the Legislature's budget committee who altered it to only remove the Governor; subsequently, Governor Walker signed the budget in July 2015. In 2020 in response COVID-19 outbreak the WEDC gave out grants for small businesses including an Ethnic Minority small business grant, which they worked with the Wisconsin LGBT Chamber of Commerce to promote, and WEDC representatives said would include LGBTQ owned businesses, however, during vetting for the grant, LGBTQ owned businesses were not considered ethnic minority, so they were not qualified for the grant.
Criticism
WEDC has received criticism for having poor financial controls. A 2011 legislative audit reported that the organization "awarded some grants, loans, and tax credits to ineligible recipients, for ineligible projects, and for amounts that exceeded specified limits." It also reported that WEDC "did not consistently perform statutorily required program oversight duties such as monitoring the contractually specified performance of award recipients." In July 2013, WEDC adopted a new policy requiring written reviews on all program awards. According to WEDC, it had approved more than 760 reviewed awards under the new policy by June 2015. In June 2015, it was reported that in July 2012Kohl's received a 62.5 million dollar award to create 3,000 jobs in Wisconsin. Kohl's only created 473 jobs. Furthermore, in 2012, $18 million was awarded to Kestrel Aircraft which was expected to create 665 jobs, but only created 24, and $15 million went to Plexus Corp. to create 350 jobs, but created none.
Awards
These are among the grants awarded:
August 2015 1.9 million dollars to a Rexnord Corporation subsidiary, Zurn Industries LLC, a manufacturer of toilets and other plumbing products for commercial, municipal, health care and industrial markets. Zurn will move the company's headquarters to Milwaukee.
July 2015 250,000 dollar Community Development Investment grant for converting the historic former YMCA/KYF building into a 46-unit apartment complex in the city of Kenosha.
