UPDATE: Wisconsin Slammed Over Handling Of Federal Money

UPDATED Wednesday, September 26, 2012 --- 3:35 p.m.

MADISON, Wis. (AP) -- Gov. Scott Walker is defending not telling the quasi-private board in charge of economic development efforts for the state about a highly critical letter from the federal government.

Walker says if the U.S. Department of Housing and Urban Development required specific action from the Wisconsin Economic Development Corp., it would be discussed. But he says for now his Department of Administration wants to hear more back from HUD about what changes are needed.

The Wisconsin State Journal first reported Wednesday about the HUD letter sent on Aug. 12 ordering Walker's administration to improve distribution of economic development money.

WEDC head Paul Jadin says his resignation from the year-old agency, and other recent personnel changes, have nothing to do with the letter from HUD.

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Information from: Wisconsin State Journal, http://www.madison.com/wsj

Copyright 2012. The Associated Press.

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Posted Wednesday, September 26, 2012 --- 8:45 a.m.

MADISON, Wis. (AP) -- The federal government says two Wisconsin state agencies have failed to follow federal law and their own policies in issuing economic development grants.

The Wisconsin State Journal reports (http://tiny.cc/axu8kw ) that the U.S. Department of Housing and Urban Development sent a strongly worded letter to Gov. Scott Walker's administration on Aug. 12 ordering them to improve the distribution of economic development money.

Department of Administration spokeswoman Stephanie Marquis tells the State Journal in a Wednesday story that the agency for the most part agrees with the conclusions and the corrective actions ordered by HUD.

The HUD letter points to numerous problems resulting from what it called the "hasty" transfer of duties from the former Department of Commerce to the new economic development entity.

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Information from: Wisconsin State Journal, http://www.madison.com/wsj

Copyright 2012. The Associated Press.


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