As a gubernatorial candidate in 2010, Wisconsin's Scott Walker (R) made a public vow that, in retrospect, was unfortunately specific: elect him and he'd create 250,000 jobs in his first term. It could serve, above all else, the Republican said, as a metric for his job performance.
By his own standard, Walker failed spectacularly, and Wisconsin struggled to get halfway to the governor's goal during his first four years, reinforcing suspicions that his entire approach to economic policy is simply wrong. But looking ahead, the more salient problem isn't Walker's inability to deliver on his promise, but rather, the questions surrounding the far-right governor's jobs council, created to help him try to reach his own goal.
Shortly after Walker took office, state policymakers created the Wisconsin Economic Development Corporation, or WEDC, with Walker personally chairing its board. The idea was to create an entity that could quickly and efficiently, with minimal red tape, extend grants, loans, and tax credits to the private sector, cultivating state job growth.
Obviously, the idea didn't work, though as TPM reported last week, failure is just the tip of the iceberg.
Only one year in, journalists and watchdogs began uncovering evidence of mismanagement in WEDC. After filing open records requests in 2012 to scrutinize the agency's first year of operations, the Milwaukee Journal Sentinel learned that WEDC had lost track of much of their initial $56 million loan portfolio. The agency was discovered to have understated, by about a third, the amount of money it had loaned out to companies that had fallen behind on repayments.
And a pattern began to emerge: two loans totaling some $5 million had gone to two timber companies, Flambeau River Papers and Flambeau River Biofuels, both run by William "Butch" Johnson, a donor to Walker's campaign. [...]
Moreover, the agency's expense account turned out to be full of nuggets: WEDC had bought six season tickets to University of Wisconsin football games for the governor's office. They expensed booze for meetings with WEDC contractors, train tickets in China and meals in India for the agency director's family, and iTunes gift cards for agency staff.
When the Wisconsin Supreme Court ended the inquiry into Walker's campaign-finance scandal, the Republican presidential hopeful very likely assumed his national campaign could move forward, controversy-free. The questions surrounding the WEDC, however, are arguably even more serious -- and they're not going away.