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WEDC Board Offers Millions to Subsidize Job Cuts

The next time Chancellor Telfer, City Manager Clapper, and CDA Chairman Jeff Knight host Reed Hall of the WEDC in Whitewater, they might wish to ask him a few questions about use of public moneyjob creation, and community development:

The board overseeing the state’s flagship job-creation agency has quietly approved a $6 million tax credit for Ashley Furniture Industries with a condition allowing the company to eliminate half of its state workforce.

As approved by the Wisconsin Economic Development Corp. board, the award would allow the Arcadia-based global furniture maker to move ahead with a $35 million expansion of its headquarters and keep 1,924 jobs in the state.

But it wouldn’t require Ashley to create any new jobs, instead granting the company license to lay off half of its current 3,848 Wisconsin-based workers in exchange for an enterprise zone tax credit, one of the most valuable and coveted state subsidies.

The board’s decision has not been made public because a contract with the company has not been finalized. But in a statement Friday, in response to questions from the State Journal, Ashley Furniture confirmed it is seeking state subsidies that include terms allowing for job reductions….

Via WEDC board OK’d Ashley Furniture getting $6 million tax credit, cutting 1,900 jobs @ Wisconsin State Journal.

And by the way, so we’re all clear, the Walker Campaign got something in return — On Politics: Ashley Furniture owners gave $20,000 to Scott Walker shortly after WEDC vote:

Less than a month after the Wisconsin Economic Development Corp. board approved a $6 million tax credit for Ashley Furniture Industries, the company’s owners gave $20,000 to Gov. Scott Walker’s re-election campaign.

The State Journal reported Sunday the board — led by Walker, who is chairman — approved the tax credits on Jan. 30 for the Arcadia-based company, though the award hasn’t been formally announced because a contract between the state’s flagship job-creation agency and Ashley has not been finalized.

The WEDC’s efforts are both economically harmful and politically ignorant – those who have latched on to this as a local effort have picked a losing issue.

See, along these lines: WEDC Update (subsidizing the outsourcing of jobs to other countries), Local Crony Capitalism via the WEDC (and similar schemes), and The Truth About the Wisconsin Economic Development Corporation.

 

 

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