I’m utterly shocked that this happened in Wisconsin and not Delaware
Throwing billions of dollars at companies because “jobs” isn’t what it used to be. I mean…$4.1 million per job created? Christalmighty! Just give me the $4.1 mil, I can create 20 jobs with that level of public largess.
When GOP darling Scott Walker offered to hand billions in subsidies to Chinese manufacturing giant Foxconn, he was warned: the Foxconn MO is to suck up billions in public money for ambitious megafactories, then scale them back into small, largely irrelevant facilities (or cancel them altogether).
But that didn’t convince Walker: instead, he got right to business, seizing and bulldozing Wisconsinites’ homes to make way for the “factory,” and allowing the price-tag to rise by more than a billion dollars without blinking, even as the company started to hedge about the scale of the factory it would build in exchange for Walker’s huge welfare handout.
Now the other shoe has dropped: Louis Woo (special assistant to Foxconn chairman Terry Gou), who negotiated the Wisconsin deal, has told Reutersthat “In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment.”
Instead of the planned megafactory with its 5,200 blue-collar jobs by 2020, now the company proposes to hire 1,000 skilled R&D researchers — who will likely come from out of state.
But they still get more than $4 billion: so if the 1,000 jobs ever materialize, each one will have cost the state $4.1 million.
I’m shocked too as Carney and the rest of the greedy fools in Dover would have jumped at the “opportunity”. Corporate Welfare is much like supply side tax cuts, neither has ever worked and neither ever will.
You can’t cheat an honest man.
So now Carney is an idiot because he DIDN’T pull a Scott Walker?
Carney is indeed an idiot for all seasons, if he didn’t pull a Scott Walker it is merely because the opportunity did not present itself.
To be fair, I haven’t heard about Carney giving money out like Markell. This budget he has put more money into workforce training and infrastructure than in subsidies for companies. So I’m not sure I understand this. Can you point to something specific like a bloom or a fisker?
To be fair Carney hasn’t been in office nearly as long as Markell. To be fair his giveaways (through the creation of a secretive group created by law and given almost total anonymity of their actions and decisions) are trending in that same direction and could surpass the Markell $250 million corporate welfare package. Here are my day old emails of inquiry and response on the matter:
Subject: Re: Economic Development
(Question to Office of the Controller General)
Please confirm for me which department or entity decides who and how much to allocate these funds to. Correct me if I am wrong but I believe the decision to allocate was previously made by the Office of Economic Development which no longer exists.??? Will decisions to allocate Strategic Funds be made by individuals in the Department of State or by decision of the Partnership for Prosperity group. I would appreciate a detailed clarification of the system and criteria for fund distribution upon receipt of this email.
Representative John Kowalko
Rep. Kowalko,
(Response from the Office of the Controller General)
You are correct, the Strategic Fund was previously allocated to the Delaware Economic Development Office, which no longer exists, but certain of its functions are still carried out under the Division of Small Business within the Department of State. As to how the Strategic Funds are distributed, here is a summary:
• The Division of Small Business is the holder of the funds and provides the staff support (application review, underwriting, etc.) for any loans/grants/programs, etc. from the Strategic Fund. For full detail on criteria and application review, I would suggest contacting the Division of Small Business (Damian DeStefano is the Director).
• The 9-member Council on Development Finance (7 members appointed by the Governor, 2 by the General Assembly), established by 29 Del. C. § 8707A, serves in an advisory capacity to the Director of the Division of Small Business. The Council reviews application requests from businesses who apply for funding from the Strategic Fund and makes recommendations on approval or disapproval.
• The Public/Private Partnership (Prosperity Partnership) is a nonprofit corporation not established by the General Assembly consisting of business and community leaders and public officials formed to enhance the State’s ability to attract, grow and retain businesses; facilitate the development of a stronger entrepreneurial and innovative economic system within the State; coordinate with the Division of Small Business; and, support private employers within the State in identifying, recruiting and developing talent for the operation of their business within the State. The Partnership often presents alongside businesses when they request funding recommendations from the Council on Development Finance.
• There are also certain allocations from the Strategic Fund that are mandated in the Annual Bond Bill (such as providing a match to the University of Delaware’s Center for Composite Materials federal grant and LIFT and DRIP initiatives.
• Additionally, there is a section of the epilogue in the annual operating budget that allows interest earned from the Strategic Fund to be used for operations of the Division of Small Business, business incubators, Small Business Development Center, Delaware Business Marketing Program, and the Delaware Technical Community College’s I.T. Learning Center (full list and amounts can be found in Section 118 of SB235-the 2019 Annual Budget Act).
If you have any further questions or would like more information, please feel free to contact me at any time.
If anyone on this site or personally wants a detailed explanation of this scandalous situation you all have my cell phone number. This is a bipartisan taxpayer ripoff by the way. If you want actual details on the Republican offering “a loaded gun at your head is a negotiating/compromising effort” regarding the minimum wage bullsh*t we can talk that also.
Representative John Kowalko
PS It’s not a conspiracy “theory” when it’s a conspiracy fact.
How could we know?
https://www.delawareonline.com/story/news/politics/2017/08/14/new-day-delaware-economic-development/564198001/
So in lieu of facts you substitute conspiracy theory? Did Roger Stone join the board here?
What conspiracy theory? The bylaws of the thing put everything behind a curtain so that Carney will not be seen to be giving out money. Want a chuckle? Here are the transparency guidelines from the “Prosperity Partnership” website:
General Statement
Like all states, Delaware is operating in an extremely dynamic and competitive market place, where we are aggressively competing for new and existing jobs. In this fast paced environment, the interests of transparency must be responsibly balanced with the need for speed, efficiency and to protect the confidential business information of companies considering Delaware as a business location. While the Delaware Prosperity Partnership, Inc. is not required to comply with the Delaware Freedom of Information Act, we both value and understand the importance of accountability and transparency in building the trust and confidence in our efforts to help grow the Delaware economy. The Prosperity Partnership will strive to operate in an as open and transparent a manner as possible, within the confines of its overall mission.