Walker: Federal Concerns Over WEDC Money a Compliance Issue - WXOW News 19 La Crosse, WI – News, Weather and Sports |

Walker: Federal Concerns Over WEDC Money a Compliance Issue


MADISON, Wisconsin (WXOW) -- Republican Governor Scott Walker said a federal agency's concerns about the finances of a state economic entity he created are simply in regards to a compliance issue. 

The Wisconsin Economic Development Corporation is a public-private entity that replaced the Department of Commerce. But officials at the U.S. Housing and Urban Development agency (HUD) have questions about the way the WEDC is distributing money.

The WEDC welcomed Gov. Walker to help launch a $2 million project dubbed "In Wisconsin" Wednesday afternoon. In Wisconsin is a branding campaign for products made in-state. 

But Governor Walker faced a lot of questions afterwards -- regarding a letter first reported on by the Wisconsin State Journal.

In that letter, sent to the Wisconsin Department of Administration by HUD on August 12th, concerns regarding the WEDC's failure to check the financial soundness of two Wisconsin companies before gifting them $1.4 million in federal dollars are laid out.  

"Of all the concerns they raised, the focal point of the letter wasn't just that," Walker said.

"It was about grants going all the way back nearly a decade, in terms of the administration of that, so, the response from the Department of Administration was that they had a plan to go through and look at all those in the past," Walker said. 

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