Foxconn Deal Flounders in State Legislature
Delays in State Assembly and Questions About Votes in State Senate Follow Independent Analysis Revealing Deal’s Costs for Wisconsin Taxpayers
MADISON, Wis. — Gov. Scott Walker’s proposed deal with Taiwanese electronics manufacturer Foxconn is floundering in the legislature as the State Assembly delays committee action following a devastating analysis from the nonpartisan Legislative Fiscal Bureau. Meanwhile, in the State Senate, the leader of the Republican majority suggested he may lack the votes to pass it and revealed he and his colleagues have been excluded from discussions on amendments.
“The reality of just how a bad a deal this is for Wisconsin are starting to sink in,” commented One Wisconsin Now Executive Director Scot Ross. “How else can you describe a deal that cost us over $15.6 million in the yet to be adopted 2017 budget, over $522 million in the next one and is a net loser of $1 billion over the next 15 years?”
The delays in action and revelations about trouble behind the scenes come on the heels of the release of an independent analysis of the proposed deal by the Legislative Fiscal Bureau. They find that the costs to taxpayers could start adding up almost immediately with an over $15.6 million fiscal impact in the 2017 budget that has still not been passed. Costs quickly balloon in the 2019 budget to over $522 million, and even with projections of new revenue being generated the net cost will be over $307 million. Over the next 15 years the deal would be a net loser of over $1 billion for state taxpayers.
Ross raised the question, “How will legislators explain to their constituents that instead of supporting their public schools, fixing their roads or investing in their main street small businesses they voted to send billions in state tax dollars to subsidize the operations of a Taiwanese manufacturer and create jobs for Illinois workers?”
Based on the rosy projections of Walker’s administration and an analyst hired by Foxconn, the Fiscal Bureau finds Wisconsin wouldn’t recoup its investment for nearly three decades, in the 2042-43 fiscal year. But the analysis warns that date could be significantly delayed based on factors like how many out of state residents are employed at Foxconn and pay taxes elsewhere, changes in markets or changes in manufacturing processes like increased reliance on automation replacing taxpaying workers.
He concluded, “It seems that for a growing number of legislators they’d prefer to vote no instead of try to explain why they supported this awful deal for the next quarter century.”
One Wisconsin Now is a statewide communications network specializing in effective earned media and online organizing to advance progressive leadership and values.
- Foxconn Will Make 10K Ventilators - Corri Hess - Jun 19th, 2020
- Medtronic and Foxconn Partner to Increase Ventilator Production - Foxconn Technology Group - Jun 18th, 2020
- Foxconn Audit Delayed Two Months - Erik Gunn - Jun 3rd, 2020
- Back in the News: Foxconn’s Profits Plunge By 90% - Bruce Murphy - May 19th, 2020
- Foxconn to Assemble Procedural Masks in Wisconsin for Pandemic Relief - Foxconn Technology Group - Apr 20th, 2020
- Murphy’s Law: Foxconn Squeezes Evers - Bruce Murphy - Apr 15th, 2020
- Foxconn Says It Earned Tax Credits - Corri Hess - Apr 9th, 2020
- Back in the News: Foxconn Plant Will Make Ventilators - Bruce Murphy - Apr 8th, 2020
- Op Ed: Foxconn Facility Could Help in Pandemic - James Rowen - Mar 29th, 2020
- Op Ed: The Foxconn Road to Ruin - James Rowen - Mar 9th, 2020
Read more about Foxconn Facility here
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