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Did former Wisconsin Gov. Scott Walker try to use some of the state pension fund to invest in startup businesses? [1]

['Jacob Alabab-Moser', 'Wisconsin Watch', 'More Jacob Alabab-Moser', 'Fact Checker']

Date: 2023-01-30 19:29:26+00:00

Reading Time: < 1 minute

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Yes.

In 2012, the chief executive of the Wisconsin Economic Development Corp., Reed Hall, wrote a letter requesting a $200 million loan from the State of Wisconsin Investment Board, which manages the Wisconsin Retirement System public employee pension fund. Hall said the funds would be used to promote startup business growth.

The SWIB rejected the request by the WEDC — of which then-Gov. Scott Walker was board chairman — saying it had to ensure any investment “does not have any adverse effect on its management of WRS assets,” according to documents obtained by the Wisconsin Reporter.

After the SWIB rejected the request, which Hall called “a long shot,” Walker signed a 2013 law creating a fund to invest in Wisconsin businesses — $25 million that was allocated in the state budget.

Critics have pointed out multiple instances of companies underperforming after receiving financial incentives from the WEDC.

See a full discussion of this at Wisconsin Watch

This Fact Brief is responsive to conversations such as this one.

Sources

Internet Archive: Walker to public pension fund manager: Can you spare $200 million?

Wisconsin Public Radio: WEDC moves on after state pension managers decline to invest

WisBusiness: Walker signs bill creating $25M venture capital fund

Center for Economic and Policy Research: Scott Walker, Foxconn, and the Wisconsin Economic Development Corporation

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If we send you a request to change or remove Wisconsin Watch content from your site, you must agree to do so immediately. You are welcome to republish our articles forusing the following ground rules. For questions regarding republishing rules please contact Andy Hall, executive director, at [email protected] Did former Wisconsin Gov. Scott Walker try to use some of the state pension fund to invest in startup businesses? <h1>Did former Wisconsin Gov. Scott Walker try to use some of the state pension fund to invest in startup businesses?</h1> by Jacob Alabab-Moser / Wisconsin Watch, Wisconsin Watch January 30, 2023 <h3>Yes.</h3> In 2012, the chief executive of the Wisconsin Economic Development Corp., Reed Hall, wrote a letter requesting a $200 million loan from the State of Wisconsin Investment Board, which manages the Wisconsin Retirement System public employee pension fund. Hall said the funds would be used to promote startup business growth. The SWIB rejected the request by the WEDC — of which then-Gov. Scott Walker was board chairman — saying it had to ensure any investment "does not have any adverse effect on its management of WRS assets," according to documents obtained by the Wisconsin Reporter. After the SWIB rejected the request, which Hall called "a long shot," Walker signed a 2013 law creating a fund to invest in Wisconsin businesses — $25 million that was allocated in the state budget. Critics have pointed out multiple instances of companies underperforming after receiving financial incentives from the WEDC. <a href="https://wisconsinwatch.org/2015/09/scott-walkers-untold-story-jobs-lacking-after-big-state-subsidy-of-kohls-stores/" target="_blank" rel="noreferrer noopener">See a full discussion of this at Wisconsin Watch</a> This Fact Brief is responsive to conversations such as <a href="https://twitter.com/BadgerStew/status/1617947564074209282" target="_blank" rel="noreferrer noopener">this one.</a> Sources Internet Archive: <a href="https://web.archive.org/web/20170430210505/http://watchdog.org/68041/walker-to-public-pension-fund-manager-can-you-spare-200-million/" target="_blank" rel="noreferrer noopener">Walker to public pension fund manager: Can you spare $200 million?</a> Wisconsin Public Radio: <a href="https://www.wpr.org/wedc-moves-after-state-pension-managers-decline-invest" target="_blank" rel="noreferrer noopener">WEDC moves on after state pension managers decline to invest</a> WisBusiness: <a href="https://www.wisbusiness.com/2013/walker-signs-bill-creating-25m-venture-capital-fund/" target="_blank" rel="noreferrer noopener">Walker signs bill creating $25M venture capital fund</a> Center for Economic and Policy Research: <a href="https://cepr.net/scott-walker-foxconn-and-the-wisconsin-economic-development-corporation/" target="_blank" rel="noreferrer noopener">Scott Walker, Foxconn, and the Wisconsin Economic Development Corporation</a> This <a target="_blank" href="https://wisconsinwatch.org/2023/01/did-former-wisconsin-gov-scott-walker-try-to-use-some-of-the-state-pension-fund-to-invest-in-startup-businesses/">article</a> first appeared on <a target="_blank" href="https://wisconsinwatch.org">Wisconsin Watch</a> and is republished here under a Creative Commons license.<img src="https://i0.wp.com/wisconsinwatch.org/wp-content/uploads/2021/02/cropped-WCIJ_IconOnly_FullColor_RGB-1.png?fit=150%2C150&quality=100&ssl=1" style="width:1em;height:1em;margin-left:10px;"><img id="republication-tracker-tool-source" src="https://wisconsinwatch.org/?republication-pixel=true&post=1276268&ga=UA-17896820-1" style="width:1px;height:1px;">

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[1] Url: https://wisconsinwatch.org/2023/01/did-former-wisconsin-gov-scott-walker-try-to-use-some-of-the-state-pension-fund-to-invest-in-startup-businesses/

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