60% of WEDC supported corporations have failed to meet job creation goals
14,000 jobs deficit for existing corporate tax credits and loans greater than the direct jobs claimed for the Foxconn deal
60% of WEDC supported corporations have failed to meet job creation goals.
STATEWIDE: On a media call today Citizen Action of Wisconsin, State Rep. Amanda Stuck, and State Rep. Jonathan Brostoff released a new analysis of Wisconsin Economic Development Corporation (WEDC) data showing that the troubled economic development agency has an extremely poor record of holding corporate recipients accountable for their jobs promises. The analysis, which comes from the agency’s own self-published data, provides additional evidence that WEDC is completely unqualified to manage the gigantic Foxconn deal, which would be by far the largest job creation tax credit program ever issued by an American state. Audio of the call can be found here.
The Citizen Action of Wisconsin analysis examines job creation tax credits issued by WEDC three years ago and longer to allow time for corporate recipients to execute the hiring plans they submitted to WEDC. The analysis finds a large gap between “actual job creation” (the jobs companies actually reported creating) and “Planned Job Creation” (the jobs that were promised in return for tax credits).
–Of the 337 WEDC awardees with established job creation goals at least 3 years old, 60% (203 awardees) failed to meet their goals. (company list available here)
–Of the 203 awardees that have not met their job creation promises, the difference between their actual job creation as reported by WEDC and their goals are 14,744 jobs. This means the WEDC job creation gap is larger than the total number of direct jobs being proposed by Foxconn in the best case scenarios (13,000 jobs).
–The numbers would be even worse if WEDC kept net job creation numbers, because it is well documented that many WEDC recipients have outsourced other jobs while taking state tax credits.
–WEDC has a very poor record of taking back tax credits when corporate recipients fail to fulfill their job creation promises. WEDC has only sought to claw back $9.9 million from 24 companies, less than 12% of companies who have not met their job creation goals after 3 years. WEDC does not report how much of this money has been successfully recovered.
–The 203 companies that still have not hit their jobs goal in at least 3 years have already received $94.8 million in verified tax credits from WEDC, with another $158 million awarded but not yet dispersed.