Thank you, Wisconsin, for the beautiful gift | Wis.Community

Thank you, Wisconsin, for the beautiful gift

But lawmakers were not voting on the deal itself. Contract negotiations are presumably underway. Legislators who voted on the deal did not see the contract, they do not know the details under negotiation, nor will they approve the final negotiated contract.

In essence, they gave the Governor a blank check. For his part, the Governor assigned his troubled economic development agency, the Wisconsin Economic Development Corporation (WEDC), the task of negotiating a good deal for the state.

Answering the big question – how do we ensure the state gets promised jobs – was left murky.

I heard much discussion among local residents about the “break-even point” of the plan – the point at which the state would recoup its “return on investment”. These numbers are fuzzy at best.

A break-even number makes many assumptions, including the number of jobs created. The administration claims 13,000 jobs although Foxconn publically said 3,000 jobs. The administration uses average wages of $53,874 but the bill voted out of the Assembly cites $30,000. Most investment analyses discount future dollars while the administration’s analysis, reviewed by the LFB, uses all amounts in current dollars.

The Bureau reminds lawmakers “any cash-flow analysis that covers a period of nearly 30 years” is “highly speculative”. The Bureau also mentions other provisions hidden in the Governor’s bill. A Brookfield financial services company is given an award, and other enterprise zones are created. These new commitments, passed by the Assembly, would cost the state another estimated $100 million.

Sun Times editorial writers summarized the deal,

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August 22, 2017 - 11:15am
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