scott walker in a hole
Press Release
August 9, 2017

If ‘Ifs’ and ‘Buts’ Are Candies and Nuts We’ll Have Foxconn Deal Paid Off in 2043

Nonpartisan Analysis Finds Gov. Scott Walker’s Foxconn Deal Would at Earliest Pay Back in 2043, Possibly Much Later

MADISON, Wis. — The nonpartisan Legislative Fiscal Bureau’s analysis of a $3 billion state taxpayer-funded deal proposed by Gov. Scott Walker to lure an electronics factory operated by Taiwanese-based manufacturer Foxconn to Wisconsin would, at best, be a net loser of revenue for nearly three decades. Variables including the percentage of jobs that go to Illinois and other state residents and changing business conditions could delay Wisconsin taxpayers from recouping the billions they are being asked to pay in subsidies for much longer, according to the analysis.

“This confirms the concerns about Scott Walker’s Foxconn scheme being a terrible bet with our tax dollars,” commented One Wisconsin Now Executive Director Scot Ross. “Even the best case, rosiest scenario shows Wisconsin taxpayers losing money on this deal for decades.”

According to the Fiscal Bureau analysis of August 2017 Special Session Assembly Bill 1, proposed legislation implementing a deal negotiated in secret between Gov. Walker’s administration and Foxconn, could start costing taxpayers money almost immediately.

The fiscal impact in the 2017 budget that has still not been passed, despite a July 1 start to the fiscal year, is projected at over $15.6 million. 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.

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.

Ross concluded, “If Gov. Walker gets his way, we’ll be writing checks for hundreds of millions to Foxconn in Taiwan to subsidize a single project instead of investing in our public schools, our roads and bridges and small businesses and entrepreneurs across Wisconsin. That’s a bad deal on its face and that at best we won’t make our money back until the mid 2040s doesn’t make it better.”

# # #

One Wisconsin Now is a statewide communications network specializing in effective earned media and online organizing to advance progressive leadership and values.

wooden school desk with apple
Press Release

Republican Bill Would Put Guns in Wisconsin Schools

Wisconsin Republicans are introducing a second bill aimed at putting guns into K-12 schools in the state, the latest version aimed at private schools.
One Wisconsin Logo
One Wisconsin Now
02/19/2018
question mark
Press Release

What Did Michael Screnock Promise the NRA?

We deserve to know today what promises state Supreme Court candidate Michael Screnock made to the NRA to get the gun lobby’s endorsement.
One Wisconsin Logo
One Wisconsin Now
02/19/2018
jeremy thiesfeldt gun tweet
Press Release

Republican Shares Article Romanticizing Guns in Schools

Rep. Jeremy Thiesfeldt took to social media to share an article from a right-wing website romanticizing the presence of guns in schools years ago.
One Wisconsin Logo
One Wisconsin Now
02/16/2018
impeach donald trump facebook
Press Release

Trump Nominee to Court Seat Fails to Disclose Shocking Comments

The writings of Donald Trump’s nominee, Gordon Giampietro, reveal he holds views that disqualify him from a lifetime appointment to the federal court.
One Wisconsin Logo
One Wisconsin Institute
02/16/2018
wisconsin state capitol nra
Press Release

NRA Campaign Cash and Endorsements Put Wisconsin on Lockdown

Millions of dollars in campaign spending and political endorsements by the NRA have bought the pro-gun lobby access to top state Republicans.
One Wisconsin Logo
One Wisconsin Now
02/15/2018
why courts matter usa map
Press Release

Red Flags, Blue Slips Should Sink Nomination of Michael Brennan

The Senate Judiciary today set aside common decency and its own traditions and rules in voting to approve Donald Trump’s nomination of Michael Brennan.
One Wisconsin Logo
One Wisconsin Institute
02/15/2018
money with heart pin
Press Release

Big Corporate Special Interest Shows Michael Screnock the Love

The latest information on advertising reveals special interests are showing state Supreme Court candidate Michael Screnock the love on Valentine’s Day.
One Wisconsin Logo
One Wisconsin Now
02/14/2018
why courts matter graphic
Press Release

Get Schooled About Red Flags on Nomination of Mike Brennan

UW-Madison student Louise schools the nation on one of the reasons why Mike Brennan ought not be given a lifetime appointment to the federal courts.
One Wisconsin Logo
One Wisconsin Institute
02/14/2018