November 10, 2017
MADISON, Wis. – Fall might have abruptly given way to a winter chill in Wisconsin, but things heated up again this week as the Legislature held its last floor sessions and Gov. Scott Walker finally sealed the deal with Foxconn.
State officials rolled out the much-awaited details of the Wisconsin Economic Development Corp.’s contract with electronics manufacturing giant Foxconn Technology Group on Wednesday. The contract includes a variety of taxpayer protections, including clawback provisions that are personally guaranteed by Foxconn founder and CEO Terry Gou.
#Foxconn will be required to hire an independent CPA that will use industry standards to measure, report on job creation & capital investment. #wipolitics #wiright
— MacIver Institute (@MacIverWisc) November 8, 2017
Additional protections built into #Foxconn contract – 100% of tax incentives within first 5 years are subject to clawback provisions in contract. Also, if company fails to fulfill contract requirements, future tax credits can then be revoked.#wipolitics #wiright
— MacIver Institute (@MacIverWisc) November 8, 2017
From the draft #Foxconn contract – the clawback schedule. Column C refers to clawback amounts if co. fails to meet job targets. Column D refers to violation of other provisions, like if the company moves, shuts down, or supplies false info. to the state. pic.twitter.com/625CMB7H20
— MacIver Institute (@MacIverWisc) November 8, 2017
#Foxconn umbrella company Hon Hai Precision Products will be responsible for 75% of any clawback payments. Gou, as an individual, will personally guarantee remaining 25%. #wipolitics #wiright https://t.co/QCHfoiLYIP
— MacIver Institute (@MacIverWisc) November 8, 2017
The jobs agency’s board voted to approve the contract Wednesday afternoon, with the only two no votes coming from Sen. Tim Carpenter (D-Milwaukee) and Rep. Dana Wachs (D-Eau Claire), who is running for governor. The vote set up a Friday contract signing event between Walker and Gou.
.@GovWalker and #Foxconn CEO Terry Gou sign contract bringing the massive investment, 13K jobs to Wisconsin. #wipolitics pic.twitter.com/13rD8evZxK
— MacIver Institute (@MacIverWisc) November 10, 2017
Back at the State Capitol, legislative leaders shepherded through a handful of important bills as the Legislature concluded its 2017 calendar. Conservatives around the state celebrated Tuesday as the Senate passed a bill by Sen. Tom Tiffany (R-Hazelhurst) and Rep. Rob Hutton (R-Brookfield) lifting the state’s 20-year moratorium on nonferrous metallic mining.
No More Moratorium: Senate passes mining bill, awaiting @GovWalker signature. #wiright #wipolitics
— MacIver Institute (@MacIverWisc) November 8, 2017
The Senate also approved a bill by Sen. Dave Craig (R-Town of Vernon) requiring state agencies to build budgets starting at zero.
.@SenDaveCraig statement on zero-based budgeting bill, which passed the Senate today:#wipolitics #wiright pic.twitter.com/zhvVWyZaYe
— MacIver Institute (@MacIverWisc) November 7, 2017
Also in its last floor days of 2017, the Assembly passed some important bills. But first, Speaker Robin Vos on Tuesday took the time to talk about his goals for comprehensive tax reform in 2018.
.@SpeakerVos said Tuesday he wants to save the state's $500M balance for "meaningful tax reform" rather than using the $ on a one-time basis pic.twitter.com/bHcBPvZdOU
— MacIver Institute (@MacIverWisc) November 7, 2017
On Tuesday, Rep. Adam Jarchow (R-Balsam Lake) talked with reporters about bills he authored to strengthen property owners’ rights. He described one bill that overrides the infamous Murr vs. St. Croix County case, in which the U.S. Supreme Court ruled the Murr family couldn’t split their property and sell half of it. The Assembly approved the legislation, sending it to Walker’s desk.
.@AdamJarchow28 bill would restore property owners' rights lost in #SCOTUS #Murr decision, letting prop. owners divide, sell property. #tcot pic.twitter.com/UO15y2sEbA
— MacIver Institute (@MacIverWisc) November 7, 2017
Later in the week, the Assembly on Thursday approved a bill by Hutton that sets a minimum ratio of apprentices to journeymen on a job, opening the pipeline for more workers in the skilled trades. The bill passed the Assembly on Thursday night.
.@StateRepHutton explains his legislation that allows more skilled trades workers into the workforce. The bill sets a minimum apprentice-to-journeyman ratio of 1-to-1 unless negotiated otherwise, Hutton said. The bill is set for a vote this afternoon. #wiright #wipolitics pic.twitter.com/iGnEU9sEeW
— MacIver Institute (@MacIverWisc) November 9, 2017
In Washington, tax reform remained a hot topic – along with Donna Brazile’s revelations about corruption in the Hillary Clinton campaign and the DNC. MacIver asked its Twitter followers what they think of the GOP tax reform proposal – the results indicate there might be more work to do.
Now that you've had the weekend to read MI's analysis & hear from all the TV prognosticators, what do you think of the GOP #TaxReform plan?
— MacIver Institute (@MacIverWisc) November 6, 2017