Progressive Thinking

New questions about a $500,000 loan granted by Gov. Scott Walker's troubled Wisconsin Economic Development Corporation to a donor follow allegations that nearly $585 million of the $975 million in taxpayer assistance provided by WEDC went to companies that had contributed to Walker’s campaign.

MADISON - Over the weekend, the Wisconsin State Journal broke another story about Gov. Scott Walker's troubled Wisconsin Economic Development Corporation (WEDC). This time, it appears that WEDC may have granted at least one loan totaling $500,000 as a favor to one of the governor’s campaign contributors.

The State Journal reported that Gov. Scott Walker’s top aides and a powerful lobbyist pressed in 2011 to award a $500,000 unsecured loan to Building Committee Inc., owned by William Minahan, for a proposed project to retrofit bank and credit union buildings for energy efficiency. The taxpayer-funded loan eventually lost the state half a million dollars, created no jobs and raised questions about where the money went.

This recent revelation follows allegations that nearly $585 million of the $975 million in taxpayer assistance provided by WEDC went to companies that had contributed to Governor Walker’s campaign either directly or indirectly.

Equally troubling was the recent audit that found that staff at WEDC ignored both WEDC policy and state law while providing taxpayer assistance to companies under questionable circumstances. A number of companies actually outsourced Wisconsin jobs to foreign countries after receiving taxpayer assistance that were supposed to be used to create jobs here in Wisconsin.

Senator Dave Hansen (D - Green Bay) has been a consistent critic of the Governor's use of the WEDC as the State's primary economic development tool since 2011.

According to Hansen  “Recent news stories concerning the approval of a $500,000 loan from WEDC to a wealthy donor of the Governor serves to confirm what we have been saying for years, that WEDC is a failed model for economic development that is ripe for corruption."

“Unfortunately those of us who said that WEDC was a failed model from the start have seen our prediction come true. After wasting millions of taxpayer dollars amid numerous scandals and changes in staff, it is time to admit that the WEDC model is a failure and scrap it in favor of a more open and transparent model that is truly accountable to the taxpayers," Hansen added.

Short of closing down WEDC the Governor should clean house from top to bottom, put in place stronger methods of accountability that hold all company officers accountable for failing to repay taxpayer loans or create Wisconsin jobs, and close the loopholes that allow taxpayer dollars to be used by companies that outsource Wisconsin jobs.

Or maybe, as Sen. Kathleen Vinehout (D - Alma) argued recently, we should just go back the a Department of Commerce.

Hansen's conclusion: "With Wisconsin’s economy still continuing to lag our neighbors and the nation we can no longer afford the kind of failure that WEDC has become synonymous with.”

Sen. Kathleen Vinehout writes about the recently released audit of the Non-Emergency Medical Transportation Program, used by many in Wisconsin for rides to medical appointments.

MADISON - Last April I wrote about many complaints I received concerning rides to medical appointments for folks in BadgerCare and other Medicaid programs.

People complained drivers didn’t show up, rides were late, drivers didn’t arrive for the return trip home and – at least in one case – the heater did not work in a van taking an elderly woman for her dialysis appointment.

Often patients were told no drivers were available. But local transportation companies told me they were not getting enough business. Local drivers thought the St. Louis-based contractor, Medical Transportation Management, Inc. (MTM) favored a few large companies over small local ones. MTM is the statewide Non-Emergency Medical Transportation ‘broker’ the state hired to arrange rides for eligible patients.

Complaints about poor service helped my colleagues and I convince other legislators to approve a full investigation of the program.

Over 300 people called the Legislative Audit Bureau’s (LAB) hotline to share their complaints. These calls and over 50 interviews conducted by LAB staff were used to analyze problems with the Non-Emergency Medical Transportation Program. In addition, a survey was sent to 5,000 patients and their families. Also 311 transportation providers completed an internet-based survey.

The results of the year-long investigation are now in.

The new LAB report shows evidence of late rides, drivers’ failure to pick up people for their return ride home and the tendency of MTM to choose a few large transportation companies over smaller, local companies.

Despite problems, of the 773 riders who responded to the questionnaire, almost 87% were satisfied or very satisfied with their overall experience.

During the audit study period (August 2013 through June 2014), MTM provided 2.3 million trips and, by its own standard, estimated 99.6% of these trips were complaint free.

The LAB reviewed 12,748 complaints filed with MTM. Two-thirds of the time the company did not provide patients timely updates on their investigation of complaints.

The most common substantiated complaint was that the patient had to reschedule a trip because the driver never arrived. Second most common was the driver was late.

Analysis by auditors showed problems, particularly in rural areas, with no vehicles available to transport patients.

A majority of transportation providers surveyed reported they were dissatisfied with MTM’s trip scheduling, poor trip volume and poor compensation.

Drivers complained they were given a request for a ride after the time and date of the appointment. Since drivers were penalized for late rides, this led to time and energy spent by the provider to correct MTM’s mistake.

The audit also provided unexpected insight into a significant cost of drug abuse – in this case transporting recovering patients to treatment for addiction. Trips to drug treatment programs accounted for almost a quarter of the cost of services paid to providers during the audit period. In addition, 91 of the top 100 high cost patients had at least one drug addiction treatment visit.

Auditors mentioned that the lack of drug treatment services in rural areas contributed to high costs. In one case an individual made 540 trips between Ashland County and Eau Claire for treatment. In another case, an individual traveled 321 times between Polk County and Eau Claire. Recently enacted legislation to create new treatment programs in underserved and rural areas should help bring down future transportation costs.

Auditors found there was clearly a difference in patient satisfaction levels measured through an independent survey and the complaint rate of patients directly to MTM. These findings suggest a future independent survey could provide a more accurate perspective in determining actual patient satisfaction.

Nearly all complaints I heard leading up to this audit were verified by auditors. At the same time, most patients were satisfied with the ride service they received.

Some state programs might be pleased with such high satisfaction. But given the seriousness of the patients’ conditions – needing renal dialysis for example – it makes sense that we should hold MTM to a very high standard.

As Representative Peter Barca testified at the hearing that began this audit process, “When people are in the most sensitive period of their life, we must ensure they receive services and are treated with respect and dignity.”

There are at least four different deficits in the state budget that is working its way through Wisconsin's legislature. Wisconsin is lagging the nation in so many respects. All these deficits certainly aren’t going to help matters any.

MADISON - Wisconsin lawmakers started the process of building a new state budget in a substantial hole. They insisted their predecessors dug it, but in truth the hole was of their own making. When they are done, the books will be made to appear balanced on the surface for the time being, even though a sizeable underlying “structural deficit” will remain.

The ongoing inability or unwillingness of budget writers to truly put our state government in the position of taking in as much as it spends is a significant problem, but it represents only one of the budget deficits we will have in Wisconsin.

In addition to leaving a financial deficit, the proposed budget as it stands now suffers from a common sense deficit as well. It not only continues to fund state programs that are not working, it throws good money after bad by expanding those failing programs. The private school voucher program has been around for a quarter-century now, and has never delivered on its promises. After more than two decades the program has not boosted student achievement as its supporters said it would. Voucher students do no better than public school students, and by some measures they do worse. Yet this budget takes more money away from public schools to fund further expansion of the voucher program.

The Wisconsin Economic Development Corporation established back in 2011 has been a train wreck since its inception. But despite fresh evidence that WEDC is playing fast and loose with taxpayer money but is unable to document that its actions produce much of any actual economic development, the budget includes a $55 million increase in state funding for the agency.

There also is a pronounced common good deficit in this budget. It seeks to privatize pretty much everything, from human services and state parks to local schools and the state university system. It does this despite the fact that human services experts in other states and local communities across the country “are finding that turning over these programs to private contractors not only fails to achieve projected cost savings but also decreases access to these important services,” according to the watchdog group In the Public Interest. If approved as written, the budget will make parks more expensive to the public and will likely discourage tourism. Top business leaders warn the planned cuts to the university system will hurt Wisconsin’s economy.

Among the many deficits in this budget is a distinct vision deficit. Instead of working to make higher education as affordable for future generations as past generations made it for us, lawmakers have confined themselves to debating only whether college spending should be cut by a little or a lot and whether student tuition should be kept at its stratospherically high current levels or allowed to go up even more. No thought is being given to closing the digital divide, which is critical especially to rural development and a key to dealing with growing inequality. Lawmakers aren’t even showing any interest in thinking creatively about how to avoid deep cuts without raising taxes.

Wisconsin is lagging the nation in so many respects, as our neighbors to the west never hesitate to remind us. All these deficits certainly aren’t going to help matters any.

MADISON - Imagine you took a pay cut each of the last four years. Now suppose you were pulled into your boss’s office and told that you wouldn’t get a raise this year, even though the company is growing and seeing record profits. Would that seem fair?

Well, that’s the position our local schools are in after years of historic cuts. Despite spending billions more, the current Republican budget continues to roll back state funding for our schools to 2010 levels.

While avoiding another round of cuts is certainly important, is that really a victory? Should we be satisfied with the broken status quo of school funding that forces communities across our state to go to referendum year after year?

Democrats believe that education must be our top budget priority. That means putting the needs of children and our schools ahead of tax breaks for the wealthy and giveaways to special interests.

We know the funding is available. It has been for years. But Republicans made the decision to prioritize tax breaks for special interests and the wealthy while forcing our schools to do more with less.

To fully restore the cuts our schools have seen over the past four years, we need to invest an additional $200 per student above what Gov. Walker and Republicans have proposed. In the grand scheme of multi-billion dollar special interest tax giveaways, surely we can find $200 per student.

If budgets are about priorities, it’s time we invest in our children first and give them the same shot at the American Dream that our parents handed down to us.

Let’s not settle for the broken status quo. Let’s invest in our state and make our schools a shining beacon of opportunity for Wisconsin’s children once again.

On Tuesday, the Legislature will be voting on whether or not to restore the historic funding cuts to our local schools. I encourage everyone to contact your legislative representatives toll-free at 1-800-362-9472 and urge them to support our children by voting for a $200 per pupil increase in school funding.

Anything less than that amount continues the troubling trend of chronic underfunding that has forced larger class sizes, more local referendums and higher property taxes.

800,000 Wisconsin residents carry on average nearly $30,000 in student loans. Republicans more concerned with helping their corporate friends than average families.

MADISON - Republicans who control the Legislature’s Joint Finance Committee blocked passage of an amendment that would have made it possible for thousands of Wisconsin residents to refinance their student loans at lower interest rates.

“It is unfortunate that Republicans controlling the Joint Finance Committee chose to protect the profits of big banks on Wall Street than the financial health of thousands of Wisconsinites who could save real money if they were able to refinance their student loans at lower interest rates,” said senator Dave Hansen (D-Green Bay), author of the Higher Ed/Lower Debt bill that would create a student loan refinancing program.

Currently 815,000 Wisconsin residents carry nearly $20 billion in student loan debt with an average student loan debt of $28,000. Research shows that young people with student loan debt are less likely to buy a home or new car while older people with student loan debt are less likely to be able to send their children to college or save for their own retirement.

“We had a chance today to help thousands of people refinance their student loans to lower their cost like you can already do for a home or auto loan. Helping them lower their interest rates makes it possible for them to buy new homes and cars and help grow our economy. And by doing that we can help stop the “brain drain” too by giving college graduates a very strong incentive to stay here rather than move to another state.”

“Unfortunately, the Republican members of the Joint Finance Committee appear more concerned with helping their corporate friends rather than helping average families.”