Scott Walker

Scott Walker is the Republican Governor of Wisconsin who, in 2011, proposed sharply curtailing the bargaining rights of public employee unions as a way to achieve budget savings. His proposal gave rise to unprecedented state-wide protests in Wisconsin. Walker's reforms triggered a recall election, which Walker won on June 5, 2012.

Contents

Wisconsin Economic Development Corporation Scandal

One of the first changes Walker made after taking office was replacing the Wisconsin Department of Commercewith the privatized Wisconsin Economic Development Corporation in 2011 Wisconsin Economic Development Corporation (WEDC), which lost rack of over $12 million in economic development loans in 2012. It is worth noting that Walker pledged to create 250,000 jobs during the campaign, but by 2012 Wisconsin ranked 42nd in the nation in terms of jobs creation. (FN) This privatization was criticized from the very beginning citing concerns over public accountability, open government, and lack of public input about how the money will be used. There were also concerns because a similar plan was implemented in Indiana which was experiencing numerous problems.

Legislative Audit Bureau Report, May 2013

The May, 2013 Report released by the non-partisan Legislative Audit Bureau reported on WEDC’s administration of its economic development programs, the results achieved by those economic development programs, and WEDC's financial management, personnel management, and governance issues.

The highlights of the report are as follows:

• WEDC did not have sufficient policies to administer its grant, loan, and tax credit programs effectively, including some statutorily required policies.
• WEDC had no policies for determining how to handle delinquent loan amounts.
• WEDC did not consistently follow statutes or its existing policies when making awards.
  • A review of 64 awards that WEDC made in FY 2011-12 showed that WEDC made some awards to ineligible recipients, for ineligible projects, and for amounts that exceeded limits specified in its policies.
  • WEDC lacked invoices or other contractually required documentation showing that authorized costs were incurred for 7 of 29 grant and loan awards that were reviewed.
  • Four contracts executed through the Jobs Tax Credit program allocated four businesses a total of $906,000 in tax credits for job creation and employee training that had occurred before the contracts were executed.
  • Statutes require WEDC’s governing board to stipulate contractually that recipients of grants and loans of $100,000 or more must provide a verified financial statement, signed by an independent certified public accountant and by the recipient’s principal officer, describing how the funds were spent. The review included 14 grant and loan contracts of at least $100,000 for which the recipients had spent all awarded funds as of December 2012. Information provided by WEDC indicated that 12 recipients had not submitted the statutorily required verified financial statements.
• Statutes require WEDC’s governing board to establish goals and expected results for each of its programs, monitor the contractually specified performance of recipients of financial awards, and report publicly on program results.
  • Expected results were not established for 10 of WEDC’s 30 programs in FY 2011-12.
  • Information provided by WEDC indicates that from July 2011 through December 2012, recipients of 59 awards that were reviewed submitted 45.0 percent of 40 contractually required reports on their progress toward meeting their contractual terms.
  • Statutes require the governing board to verify the performance information reported by a sample of grant and loan recipients, and from July 2011 through December 2012, WEDC conducted no such verification efforts.
  • Statutes require the governing board to report to the Legislature annually on each economic development program administered, including information on expected and actual program outcomes. The report WEDC submitted in November 2012 did not contain all required information, contained some inaccurate information, and did not clearly present information about the number of jobs created and retained as a result of its programs. For these reasons, and in the absence of verified performance information, the bureau did not assess the effectiveness of WEDC’s economic development programs.
• Statutes provide WEDC with flexibility to conduct its operations, but WEDC must ensure accountability for, and effective management of, its taxpayer funds.
  • In FY 2011-12, WEDC did not monitor the amounts spent on each of its programs, in part because it was unfamiliar with its accounting system and did not establish accounting policies and procedures.
  • WEDC did not have policies for staff to use to purchase goods and services, including those that would increase the likelihood of receiving desired goods and services at a reasonable price.
  • WEDC did not have sufficient purchasing card policies. The purpose of 56.0 percent of the 141 purchasing card transactions reviewed was not specified.
  • WEDC did not develop its own detailed personnel policies until September 2012. Its full governing board has not always been informed about certain personnel policies and practices, including those pertaining to the amounts and types of staff compensation and fringe benefits.
  • WEDC had incomplete policies pertaining to staff acceptance of gifts from businesses and other organizations.
  • WEDC and its governing board have not always complied with statutory requirements for reporting to the Legislature on WEDC’s economic development programs and operations.
  • In March 2013, WEDC’s governing board passed a resolution authorizing WEDC to create a nonprofit foundation to solicit donations to promote economic development, and it is not known whether taxpayer funds would support the foundation or whether the foundation would report to the Legislature about its operations.

$12 Million in State Loans Goes Missing

For over a year, in the wake of the transition from the public Wisconsin Department of Commerce to the quasi-private entity that exists now, the WEDC lost track of approximately $12.2 million in overdue, government-backed loans that were made to businesses. The loans were made to a variety of businesses within the state from northwoods bio-fuel and paper companies, to restaurants and construction companies. Most of the past-due loans were made under the previous Department of Commerce but then the ball was dropped after the transition to the WEDC. Additionally, some of these businesses are now bankrupt.

Skyward "Bid-Rigging" Tax Break Offer

Skyward, a Stevens Point-based Information Systems company, sells school management software for tracking grades, attendance, and other information. It currently serves 220 of Wisconsin's 424 school districts as well as about 1,400 other schools across the U.S. and in five other countries. The 2011 state budget allotted for $15 million to create a statewide information system. During the initial contract bidding process, the WEDC inappropriately offered the company tax breaks if it won the contract which was later rescinded because it was inappropriate and unfair to other bidders.

In the end, this controversy may have cost Skyward the contract which they are now protesting. The contract was instead awarded to Infinite Campus, a Minnesota company which serves fewer districts in Wisconsin than Skyward. Skyward claims their overall cost of the contract was lower than Infinite Campus and cited irregularities in the selection criteria.

HUD Complains of Mishandling of Public Funds

The Wisconsin State Journal first reported on an August 12, 2012 letter from U.S. Department of Housing and Urban Development to WEDC in which HUD complained of several failures of WEDC to follow federal laws and their own policies. Some of the reported findings include:

• The state gave out aid worth $20,000 per job created to Kapco, a company with a plant in Polk County — twice as much as its own policies allow.
• Officials failed to check the financial soundness of two companies receiving $1.4 million in federal grants.
• Eleven out of 20 loans using Community Development Block Grant funds awarded since Jan. 1, 2011, are "forgivable," despite the fact that the state's own policy calls for allowing businesses to get no-payback loans only in "extraordinary circumstances."
• Questions remain about an $8.6 million chunk of CDBG funds withdrawn under unusual circumstances late last year.

Independent Audit Reports

To address these issues, the WEDC hired 2 independent firms, Financial Institution Products Corporation (FIPCO), a whollyowned subsidiary of the Wisconsin Bankers Association, and accounting firm Schenck SC, to conduct third-party reviews of the agency. One report identified issues with the WEDC's accounting practices and poor monitoring of loans, caused partially by the high turnover and personnel lost after the agency's creation. A second report blamed many of these issues on the how quickly and carelessly the agency was created, incomplete infrastructure, and a lack of formalized policies.

The Wisconsin Legislative Fiscal Bureau published an informational report in January 2013. The report outlined the details of the organizational structure, powers, budget, and details of WEDC's projects. It mentioned the reports produced by the two independent auditing firms, and also mentioned that the Legislative Audit Bureau is conducting a program evaluation and financial audit of WEDC that will be completed in the Spring of 2013.

Changes in Leadership

Paul Jardin left as CEO of WEDC in Fall 2012. He was replaced by Reed Hall, former Executive Director of the Marshfield Clinic who also served on the executive committee of Wisconsin Manufacturers and Commerce.

2010-2013 "John Doe" Criminal Investigation of Scott Walker's Former Staff and Associates

Starting in September of 2010 the Milwaukee Journal Sentinel detailed an ongoing "John Doe" criminal investigation involving Scott Walker's former staff and associates. The wide-ranging investigation included allegations of campaign finance malfeasance, embezzlement of funds from a veteran's charity, bid-rigging and even child enticement. The investigation resulted in 15 felony indictments for six people who have been sentenced. John Doe investigations are secret proceedings, before a single judge, where witnesses can be subpoenaed and compelled to testify under oath about potential criminal matters, but are prohibited from speaking publicly about the case. The scope and targets of these investigations are unclear as a result of these gag rules.

"John Doe" Investigation Closed

On March 1, 2013, Milwaukee Country prosecutors shut down the long running "John Doe" probe into corruption in Scott Walker's office during the time he served as Milwaukee County Executive. Six people were charged and convicted, including three former Walker staff, but no charges were brought against Walker. Milwaukee County District Attorney John Chisholm issued a brief, telling statement: "After a review of the John Doe evidence, I am satisfied that all charges that are supported by proof beyond a reasonable doubt have now been brought and concluded."

Final Legal Tab Totals $650k

Upon the conclusion of the investigation, Walker shut down his legal defense fund. A Government Accountability Board (GAB) rule allows public officials who are under investigation for ethics violations to set up a legal defense fund. The rule allowed him to transfer funds from his campaign to the defense fund with the consent of the contributors. The final legal bill came to $650,000 that was paid out to two high-powered criminal defense lawyers, the law firm Michael Best & Friedrich for help with compliance issues, one public relations firm, and a small amount was paid to a Madison law firm for record-keeping related to the defense fund.

Secret Email System

The John Doe investigation has uncovered that Walker's former staffers set up a secret wireless network in his County Executive office, during the time Walker served as Milwaukee County Executive but was running for governor. The scandal broke into the open when the Milwaukee Journal Sentinel reported that Darlene Wink, a low-level constituent services coordinator, was caught Facebooking nasty comments about Walker’s democratic campaign opponents while working at her county job. Journal Sentinel reporter Dan Bice, who was tipped off about the on-line activity, interviewed Wink, but wasn't sure how big of a deal it was until he was called by the Walker team a few hours later and was told she had resigned.

Now we know from the indictments that the activity went far beyond Facebook. Investigators found boxes for two wireless routers in an armoire in Walker’s County Executive office. Packaging labels found with the boxes bore the name "Timothy Russell," Walker's deputy chief of staff. The allegation is that Russell set up an unofficial networking system so that staffers could conduct campaign business on their personal laptops while their salaries were being paid by the taxpayers. The secret email system was available for use by certain staff for both official and unofficial business. Its existence was "never disclosed to county employees outside a closely held group within the Walker administration," says the indictments (available here). On county time, the staffers allegedly communicated extensively with Walker campaign staff, organized fundraisers, made invitations, exchanged fundraising lists and sent out campaign press releases.

Walker Email "No Laptops, No Websites"

The indictments include dozens of telling emails and chat sessions with county and campaign staff about political activities. In a chat session with Russell, Wink explicitly inquired about how to delete and destroy documents. She asked Russell: "How do I get rid of the PDF from my IM?" "I don't want to go to jail for this, ha ha."

After the story about Wink’s activities was printed in the Milwaukee Journal Sentinel on the morning of May 14, 2010. Walker sent the email above to Russell at 8:46 a.m. telling him simply "we cannot afford another story like this one. No one can give them any reason to do another story. That means no laptops, no websites, no time away during the work day, etc."

FBI Raids Home of Walker's Former Top Aide

On September 14, about a dozen FBI agents and other law enforcement officers descended upon Cynthia "Cindy" Archer's Madison home at 6:45 a.m. and seized boxes of materials. At the time of the raid, Archer was a top aide to Governor Walker in the Wisconsin Department of Administration, but formerly she served as one of his top aides when he was Milwaukee County Executive. Archer's neighbor said FBI agents also confiscated a hard drive he bought from her at a garage sale a few weeks ago. Archer was the third Walker aide to have computers seized as part of the "John Doe" investigation led by Milwaukee County District Attorney John Chisholm. Before he was Governor, Walker was the Milwaukee County Executive, and Chisholm has apparently been investigating whether county staffers in Walker's office did unlawful campaign-related work while at their county jobs. Archer has not been charged with any crimes.

6 People Indicted, 15 Felony Indictments, 6 Sentenced

• Timothy Russell (former top aide, holding over eight positions including deputy chief of staff, to then Milwaukee County Executive Scott Walker): charged with 2 felonies, and one misdemeanor related to embezzlement of veterans funds. Read the criminal complaint here. Russell was sentenced to "two years in prison and five years on probation for stealing more than $21,000 from a veterans organization Walker named him to lead."

• Brian Pierick (boyfriend of Timothy Russell): charged with 2 felonies. Read the criminal complaint here. In February 2013 Pierick was sentenced to 50 hours of community service and a $2,100 fine after pleading guilty to a lesser charge.

• Kevin Kavanaugh (appointed by Walker as county veterans official): charged with 5 felonies related to embezzlement of veterans funds. Read the criminal complaint here. Kavanaugh was convicted by jury and was sentenced on December 7th, 2012 to two years in prison and two years of extended supervision.

• Kelly Rindfleisch (former top aide to then Milwaukee County Executive Scott Walker): charged with 4 felonies relating to political fundraising while on the county payroll. Read the criminal complaint here. Her trial was set to begin the week of October 15, 2012 in Milwaukee County Court. On Monday, October 8, 2012 Rindfleisch’s lawyers subpoenaed the Governor to testify in her trial. The next day, news broke that Rindfleisch had reached a plea deal with Milwaukee prosecutors. News reports indicate that she will plead guilty to one felony count of misconduct in office in an attempt to avoid jail time. Rindfleisch was in particular jeopardy, because she had been implicated in similar activities in the past and was granted immunity in an earlier “caucus scandal,” which resulted in sentences of jail time for more than one Wisconsin legislator and the disbanding of partisan political caucuses in the state legislature in 2001. Rindfleisch is scheduled to be in court on Thursday, October 11 for a judge to decide on the plea deal. The trial is cancelled, so Walker will no longer have to testify. The plea deal can be accessed here. She entered the guilty plea and was convicted of one of the felony counts. On November 19, 2012 she was sentenced to six months in jail and three years of probation on a single felony count of misconduct in office.

• Darlene Wink (former aide to then Milwaukee County Executive Scott Walker): pleaded guilty to 2 unclassified misdemeanors as part of a plea deal that she made with the prosecutors related to political fundraising while on the county payroll. Read the complaint here. Her sentencing hearing has been delayed several times to ensure her full cooperation in other investigations. In January 2013 Wink was sentenced to a year's probation, 50 hours of community service and $1,000 in fines.

• William Gardner (President and CEO of Wisconsin & Southern Railroad): pleaded guilty to 2 felony charges relating to campaign finance violations read the criminal complaint here. Gardner pleaded guilty to felony violations of Wisconsin campaign law in April of 2011. Gardner tried to convince prosecutors that his $60,000 in illegal contributions, which he funneled through staff and girlfriends, was an innocent mistake, except he had done the same thing the previous year. Gardner was sentenced to 2 years probation and 50 hours of community service.

Scott Walker’s Criminal Defense Attorneys

Campaign finance reports released in May 2012 disclose that Walker transferred $100,000 into his criminal defense fund, "Scott Walker Trust" , in addition to the $60,000 in his last report. Add this to the $160,000 that has already been paid to campaign attorneys and it brings the total amount of legal fees disclosed so far to $320,000. Walker continues to receive donations above the $10,000 individual limit which is allowable only if he uses the funds to pay old bills. However, many are speculating that Walker will use the funds to pay undisclosed legal bills. Walker is the only governor in the nation with a criminal defense fund due to a wide-ranging John Doe investigation by the Milwaukee District Attorney's office into his former staff and associates.

IRS reports released in early 2013 show Walker transferred another $40,000 from his campaign fund at the end of 2012 to his legal fund; $25,000 going to Michael Steinle's firm and $15,000 to John Gallo's. The Milwaukee Journal Sentinel reports that Walker campaign spokeswoman Nicole Tieman explained the funds were used to cover "...work done to cooperate with authorities over the past year."

Walker hired two attorneys to represent him in this ongoing investigation, Michael J. Steinle, a high-profile, Milwaukee criminal defense attorney, and John N. Gallo, a former federal prosecutor from Chicago who specializes in grand jury investigations.

Michael Steinle is a criminal defense attorney at the law firm Terschan & Steinle, LTD. He has been included in the Best Lawyers in America and has been selected as one of Wisconsin’s Super Lawyers every year since 2005. He has also been recognized in Milwaukee Magazine as one of Milwaukee’s Best Criminal Lawyers. He has represented criminal defendants in a variety of cases including homicide, police brutality, public corruption and campaign finance fraud, and white-collar criminal cases. Some of Steinle’s cases include a former flag football coach accused of molesting several of his underage players. . He also represented clients in several homicide cases including the high-profile case of Richard Berhens who killed his live-in girlfriend and buried her body. , a road-rage killer and most recently, a teenager accused of murdering his grandfather with an ax.

Some government officials Steinle has represented in criminal cases includes Gary Barczak, a Circuit Court clerk who was convicted of cocaine possession. There was also suspicion of theft due to shortages found in campaign finance reports. He also defended Milwaukee Alderperson, Rosa Cameron, on federal charges of fraud for illegally using federal grant money for her election campaign and Ex-Elkhorn Mayor, Paul D. Ormson, on federal charges of campaign finance fraud

John N. Gallo is a partner at Sidley Austin LLP, a large law firm in Chicago. He is a 1986 graduate of Harvard Law and a former federal prosecutor in Chicago. His practice areas include healthcare, securities, white-collar compliance, and grand jury investigations. He has represented a variety of corporate and government clients including, University of Chicago Hospitals, and T.D. Securities. Gallo recently represented Arlington Park horse racing track who were co-defendants with four other horse race tracks, former Illinois governor Rod Blagojevich, and his campaign committee in an action brought by several Illinois riverboat casinos. The casinos alleged that some of Governor Blagojevich’s illegal activities in office involved legislation which took money from the casinos and distributed it to the racetracks.

Immunity Deals

The Milwaukee Journal Sentinel reported on September 23, 2011 that former Appeals Court Judge Neal Nettesheim, who is overseeing the investigation, acknowledged that he had granted immunity to Walker's Press Secretary, Cullen Werwie, and a number of other individuals. Werwie joined Walker's campaign after the September 2010 primary and stayed on when Walker was sworn in as governor. Werwie had no comment when the story broke. Walker denied any knowledge of the investigation telling a Wisconsin news channel, "We don't know what exactly is involved there until we know any more." The 13th person to be granted immunity, Fran McLaughlin, was announced May 31, 2012. She served as Walker's spokeswoman while he was Milwaukee County executive, and as his communications director from 2007 to 2010.

Full List of People Granted Immunity From Court Records

• Cullen Werwie: Scott Walker's Current Press Secretary
• Fran McLaughlin: Scott Walker's Former Press Secretary
• David Halbrooks: Milwaukee attorney with Democratic ties who specializes in procurement
• Rose Ann Dieck: retired teacher and Milwaukee County Republican party activist
• Suzanne Immel: donor to Scott Walker: $500
• Timothy Karp: Vice President of finance for Wisconsin and Southern Railroad
• Dale Thomas: donor to Scott Walker: $4,900 (Wisconsin and Southern Railroad Employee)
• David Hackbarth: donor to Scott Walker: $4,900 (Wisconsin and Southern railroad employee)
• James Lombard: donor to Scott Walker: $5,000 (Wisconsin and Southern Railroad Employee)
• Bernard Meighan: donor to Scott Walker: $5,000. (Railroad Superintendent for Maintenance)
• Steven Beske: donor to Scott Walker: $5,000 (Railroad Employee)
• Gilbert Loberg:donor to Scott Walker: $5,000 ( Railroad Accountant)
• Kenneth Lucht: donor to Scott Walker: $5,000 (Government Relations specialist for the Railroad)

Media Organizations Seek Emails and Other Documents Related to John Doe Investigation

Even after the John Doe investigation into the MIlwaukee County Executive's office was closed, thousands of documents and emails that were part of the inquiry remained under court seal. If the documents were still in the possession of the County, they would be accessible to the public via Wisconsin's freedom of information/public records act.

Milwaukee Journal Sentinel Seeks to Reopen John Doe for Hearing on Public Access to Records

In a motion filed September 18, 2013, the Milwaukee Journal Sentinel and reporter David Umhoefer moved for:

ì..the return of the Records and associated computer devices, originated and owned by Milwaukee County, to the County's possession where the newspaper and the public may have access to them in accordance with the Open Records Law.î

In the motion, the newspaper argues for the release of these documents and emails based on:

• The newspaper's right to intervene on the public's behalf.
• The fact that every John Doe proceeding is, by its nature, a matter of public interest.
• The nature of this proceeding, in particular, because it involved public officials and the abuse of public resources.
• The presumption under Wisconsin law that the records are open, as they involved the public affairs of Milwaukee County.
• Milwaukee County's right to retain their own copies of the records -and their duty to "safely keep and preserve" the records under Wis. Stat. 19.21(1).
• The fact that the emails would have been public if the officials involved had not purposely set up secret emails to avoid disclosure.
• The newspaper's recognition of permissible claims of secrecy regarding documents from the John Doe proceedings. The motion does not request the release of any questions, answers or transcripts recorded during the John Doe investigations or proceedings
• Public policy which demands the greatest possible access to information related to the affairs of government and government representatives.
• The assumption that the disclosure of important public documents should not be subject to "piecemeal" exceptions.
• The increasingly tenuous justification for secrecy as the cases come to a close.
• The requirement that John Doe proceedings be "drawn as narrowly as is reasonable," and the absence of a need for secrecy in this case. Secrecy in John Doe cases is only reasonable for the following reasons:

(1) Keeping knowledge from defendant's who might otherwise attempt to escape.

(2) Prevent the defendant from collecting perjured testimony to use at trial.

(3) Prevent persons from tampering with the prosecution's evidence or testimony.

(4) Creating an environment where witnesses feel more at ease disclosing information.

(5) Prevent testimony that isn't true from becoming public.

The Milwaukee Journal argues that none of these justifications apply to the records in contest.

The motion also reveals that the newspaper attempted to retrieve these documents through a few different channels. These attempts included: An open records request to Milwaukee County during the course of the John Doe proceeding (Milwaukee County could not comply because they did not keep copies of the records); an open records request to Judge Neal Nettesheim from David Umhoefer, sent on July 3, 2013; and a letter from the editor of Milwaukee Journal Sentinel to the Milwaukee County Executive, requesting ìhe procure the return of the Records and computers belonging to Milwaukee country but still under the deal of the John Doe proceedingÖî

Motion to Intervene in Kelly Rindfleisch Appeal

In a separate but related proceeding, the Milwaukee Journal Sentinel- along with several other media organizations-- moved to intervene in the criminal appeal of Kelly Rindfleisch. Ms. Rindfleisch (Scott Walker's former deputy chief of staff while he was Milwaukee County executive) pled guilty to official misconduct "for doing campaign work at her government job" in 2012. As she appeals her conviction, Ms. Rindfleisch has requested that her emails and other records continue to be sealed. These records, the news organizations claim, are the property of Milwaukee County for the same reasons articulated in the September 18 motion. Milwaukee Journal Sentinel attorney Robery Dreps argued: "This is a criminal case in which a defendant, convicted and sentenced in a public proceeding involving the use of public resources with evidence from public records, has exercised her right to appeal," "there is nothing private about it."

On October 9, 2013, the news organizationsí motion for intervention was granted, allowing intervention ìfor the sole purpose" of opposing Ms. Rindfleisch's motion to seal the documents in her appeal..

Repudiation of the United Sportsmen of Wisconsin Grant

On August 29, 2013, The United Sportsmen of Wisconsin Foundation (ìUnited Sportsmenî) was named the recipient of a $500,000 grant by the Wisconsin Department of Natural Resources. The endowment came under intense scrutiny, as United Sportsmen was the sole applicant for the grant. The grant was poorly advertised and included terms that excluded most sporting groups in the state, despite its alleged purpose to promote hunting, fishing and trapping in Wisconsin. Moreover, United Sportsmen had no record of outdoors training - but according to the Milwaukee Journal Sentinel, did demonstrate "close ties to GOP politicians."

Assembly Majority Leader at the time, Scott Suder, was reportedly the organizer of the deal. According to the Milwaukee Journal Sentinel:

"In May and June, Suder had worked with other GOP lawmakers to insert a provision into the state budget creating a grant so narrowly tailored that the United Sportsmen Foundation was all but assured of receiving it."

According to Rep. Cory Mason (D-Racine), this is not how the grant was proposed to the budget committee. Mason noted that he initially thought the grant would be competitive -- but later came to believe, "in hindsight, [the grant] seems like a sweetheart deal for one group that has ties to Scott Suder."

The Journal Sentinel also pointed to Suder's emails and a planned fishing trip with the head of United Sportsmen in August of 2013 as evidence of Suder's relationship to the group. The emails also reveal Suder and United Sportmen had ties to the conservative advocacy group Americans for Prosperity.

The deal was cancelled on September 5, 2013, after it was revealed that United Sportsmen's President Andy Pantzlaff "misrepresented [United Sportmens'] federal tax-exempt status to state officials throughout the grant process."

The response to Suder's alleged deal was significant. Sportsmen were "outraged" and "the liberal group One Wisconsin Now filed an ethics complaint with the state Government Accountability Board over the matter." As a result of the public outcry, Suder --who was already appointed to work for the Public Service Commission--did not accept the position. In his brief resignation, he stated: "I want to thank you for offering me an opportunity to work with the Public Service Commission, however I must respectfully decline as I have decided to accept a position in the private sector at the Wisconsin Paper Council. Thank you for your consideration."

2012 Recall Election

Due to the controversy over Walker's bill to strip public workers of collective bargaining rights and controversial budget cuts to public education, the University system and health care, a recall campaign was launched against Governor Walker in 2011 and took place on June 5, 2012. Walker won the recall election with 53% of the vote, Barrett received 46% of the vote.

Barrett Chosen to Face Walker in Historic Recall Election on June 5, 2012

Wisconsin voters chose Milwaukee Mayor Tom Barrett to run against incumbent Walker in the primary for the first gubernatorial recall election in the state's history on May 8, 2012. Barrett got 58% of the vote. He was trailed by Dane County Executive Kathleen Falk at 34%, State Senator Kathleen Vinehout at 4%, and Secretary of State Doug Lafollette at 3%. Wisconsin State Firefighters President, Mahlon Mitchell, easily bested two unknown candidates for the right to run in the recall against Republican Lieutenant Governor Rebecca Kleefisch. Walker faced a symbolic challenge from self-described (and attired) "Lincoln" Republican Arthur Kohl-Riggs, who received 3% of the vote in the Republican primary. Active campaigning by Walker and full mobilization by right-wing talk radio pumped up voter turnout in the Republican primary to unexpected levels.

Walker Raises and Spends Record Amounts

Walker raised $37 million for the recall election, and spent $36 million. Tom Barrett raised about one sixth of that, spending about $6.5 million total.

As of May, 2012 Walker spent $5 million on direct mail, rivaling the $4.5 million spent on TV. The direct mail allows him to build a national database of funders to tap for the recall.

For a period of time, he was allowed to raise unlimited amounts of money, and he did, many in $250,000 contributions. 74% of Walker's individual contributions are from out of state.

Billionaires Fund Walker's Effort to Fight the Recall with $250,000-$500,000 Checks

Due to a quirk in Wisconsin's campaign finance law, Governor Walker was able to raise unlimited amounts of money to fight his recall campaign for a short period of time after the recall papers were filed, but before the official election was scheduled. Numerous people handed Walker unprecedented checks for $250,000-$500,000 dollars. Previously their limit would have been $10,000 for an individual contribution. As of May 29th, 2012 the Wisconsin Democracy Campaign reports that Walker's top five campaign donors are Richard DeVos, Diane Hendricks, Bob Perry, Jere Fabick and David Humphreys.

• Richard DeVos: DeVos of Holland, Michigan is the co-founder of Amway Corp. and owner of the Orlando Magic, DeVos runs the Richard and Helen DeVos Foundation, a conservative foundation and grant making body formed in 1970. DeVos has been active in the school voucher movement, and Walker expanded Milwaukee’s voucher program and established a similar one in eastern Racine County in Wisconsin's 2011-2012 budget. DeVos donated $250,000 to Walker's campaign.

• Diane Hendricks: Hendricks of Beloit, Wisconsin is owner of ABC Supply, a supply company for contractors of all stripes. Hendricks garnered national attention in May 2012 after a tape was released that shows her asking Walker how he would turn Wisconsin into a "red" state and if he would implement "Right to Work" legislation. Walker responds telling her he would use "divide and conquer" as a strategy against unions, starting first with a "budget adjustment bill" applying to public workers. She gave Walker $500,000 on April 12, 2012 and $10,000 on January 31, 2011, making her his single biggest contributor. Hendricks has given money to Paul Ryan, Ron Johnson, Tommy Thompson and the Republican National Committee and is worth an estimated $2.8 billion.

• Bob Perry: Perry of Houston, Texas, gave Walker $250,000 on December 4, 2011. Perry's wealth comes from the home-building company Perry Homes, but he is most famous for bankrolling the "Swift Boat Veterans for Truth," which funded a blistering ad campaign against John Kerry during the 2004 presidential race. He is a big donor to Texas Governor Rick Perry (no relation), and he gave an eye-popping $7 million Karl Rove's American Crossroads group, one of the largest single campaign contributions ever.

• Jere Fabick: Fabrick of Milwaukee, Wisconsin is CEO of Fabco Equipment, Inc. Jere Fabick gave $250,000 to Walker in 2011 and 2012. In 2003, Fabick was fined for violations of Wisconsin's limit on political contributions for previous Republican Governor Scott McCallum.

• David Humphreys: CEO of Tamko Building Products, Missouri's David Humphreys is an out-of-state donor who gave Walker a hefty $260,000 in January 2012. A month later Humphreys gave $250,000 to the Republican Governors Association which is running ads statewide supporting Walker and criticizing recall opponent Milwaukee Mayor Tom Barrett.

The Wisconsin Democracy Campaign (WDC) is a nonpartisan, nonprofit organization that tracks money in politics. WDC's data shows that Walker's major contributors include a diversity of national and state-based firms, including Koch Industries, AT&T, Wal-Mart, John Deere Tractor, Johnsonville Brats, MillerCoors, Kwik Trip, Sargento Cheese, and SC Johnson & Sons (producers of Windex, Glade, Pledge etc).

Koch-Funded AFP and RGA Spend Big for Walker

Walker is also backed by huge independent expenditures from the Republican Governor's Association and the Koch-funded Americans for Prosperity Group. Americans For Prosperity has spent $2-3 million each on TV ads in support of Walker, while the ad spending by the Republican Governor's Association and their local PAC, Right Direction Wisconsin, has been estimated to be as high as $5 million two weeks before the recall. Both groups are anticipated to spend much more.

Scott Walker's Budget

An analysis by the Wisconsin Council on Children and Families' Wisconsin Budget Project iterates the impact of the Walker Administration's budget cuts on working families.

Budget cuts are significant aspect of the drive to recall Governor Walker. More details on the budget are at the Scott Walker Budget page.

Victory

Scott Walker eventually defeated Barrett, becoming the first governor in United States history to successfully resist a recall. Walker won 53% of the vote compared to Barrett's 47% of the vote. Ultimately, about 80 million was spent on the election, most of this money was spent on behalf of Governor Walker and most of it was spent on television advertising.

Contradictory Statements Made by Walker about Collective Bargaining

A primary theme in Walker's 2012 recall campaign was "keeping his promises."

Walker Runs For Governor 2010, Omits Plans To Eliminate Collective Bargaining

On April 28, 2009, Scott Walker announced his campaign for Governor of Wisconsin, and described his priorities in broad strokes such as "a government that puts the needs of citizens first." "I believe in a state that places the education of its children above the needs of the special interests," said Walker.*

On February 23, 2010, Walker announced to the Wisconsin Manufacturers & Commerce Gubernatorial Candidate forum his promise to create 250,000 jobs and 10,000 new businesses in Wisconsin in his first term. “If you elect me as your next Governor, I’ll get government out of the way and lower the tax burden so Wisconsin business owners and factories can create 250,000 jobs and 10,000 businesses in our state by 2015.” * He did not mention eliminating collective bargaining.

PolitiFact Wisconsin reported the fact that Walker did NOT campaign on collective bargaining changes and rated his statements on the subject "False".

• Note: as of April, 2013, ScottWalker.org is under construction and has been moved to ScottWalker.com. The press releases were not moved.

Oshkosh Northwestern Editorial Board Meeting, October 2010 Walker Says He Will Work with Unions

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On October 26, 2010, Walker tells the Oshkosh Northwestern editorial board that he will negotiate with the unions to gain savings. (Video released February 27, 2012.)

The board asks him, "How will you extract savings?"

Walker responds, "You still have to negotiate, I did that at the county as well, where I have some of my employee unions have agreed to it, others have not. What we did as a fallback, we said it applied to all of our non-representative employees, all of our non-union employees. We settled with three of our unions, we've still got a couple left .... what I did, and I did it again in this budget, was say, 'Here's what my expectation is, very realistic wage and benefit reforms.' And if we don't get it, we didn't build the budget on furloughs, but we said as a fallback for those employees who are in collective bargaining units where they do not settle for what we're asking for in the budget, and again this is just at the county level, we put as a fallback furloughs in there. The idea being that the employees who are steppin' up and helping us, both those non-union employees as well as those unions that have settled, they shouldn't be punished when they're already helping to contribute balancing the budget. We'd approach a similar strategy for the the state."

Walker Introduces Collective Bargaining Bill, Public Explanation State is "Broke"

On February 11, 2011, Walker introduced the collective bargaining bill, saying state is "broke" and we have no other choice. Critics charge that key provisions in the bill such as the ban on state collection of union dues and impossible elector hurdles for recertifying unions reveal the true union-busting nature of the bill. Unions are a key fundraiser for the Democratic Party.

Walker Defends Bill in Fireside Chat As Not "A Battle With Unions"

On February 22, 2011, Walker had his first "fireside chat" with Wisconsinites, claiming his administration is not targeting unions. "You see, despite a lot of the rhetoric we've heard the past 11 days, the bill I put forward isn't aimed at state workers, and it certainly isn't a battle with unions. If it was, we would've eliminated collective bargaining entirely, or we would've gone after the private sector unions. But we did not."

Walker Tells Congress: It's Not About Defeating Obama

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On April 14, 2011, Walker testified before the House Oversight & Government Reform Committee, asked if the collective bargaining bill is about defeating Barack Obama in 2012, Walker assures Connecticut Representative Chris Murphy, "It's not about that."

From the testimony:

Rep. Chris Murphy: "It's hard to make the argument that this debate only plays out in the context of Wisconsin's budget fight. And in fact some of the key players in this drama seem to be pretty open about how this ultimately is about trying to kill a pretty important constituency for working families...

(Murphy quotes Wisconsin State Senate Majority Leader Scott Fitzgerald on Fox News:)

If we win this battle, and the money is not there under the auspices of the unions, certainly what you're going to find is that President Obama is going to have a much more difficult time getting elected and winning the state of Wisconsin.

And in a fundraising letter that [Fitzgerald] sent out, he was making the pitch that Republicans should be supported because they faced down big labor's bully tactics and the Democratic walk-out of the state Senate to break the power of unions of Wisconsin once and for all.

This sounds like a much broader political fight to defeat your opponents, to try to defeat the advocates for working families .... I'd like to know if you agree with the statements of your state Senate leader Scott Fitzgerald, and how you address the concern of many of ours that the reason that you have $2.1 million being spent on your candidate for the court, the reason you have groups like the Koch brothers pouring in thousands and thousands of dollars, because this is about a much broader effort, and it seems the key players in the fight, certainly in the state legislative level, are very open about how this is a much broader assault on unions and the allies of unions."

Walker responds, "....It's not about that. It's ultimately about balancing the budget now and in the future, not just through temporary, because we've had too many people temporarily trying to push our problems off to the future. This is a long-term answer, and is about long-term reform in our government, so our schools, our local governments and our states operate better. That's what it is for me."

Walker Tells Congress: It's Not About Punishing Unions & the Democratic Donor Base

Walker was also asked by asked by Representative Gerry Connolly of Virginia if he has ever had a conversation with anyone about punishing unions and the democratic donor base:

"Have you ever had a conversation with respect to your actions in Wisconsin and using them to punish members of the opposition party and their [union] donor base?" [asked Connolly]. "No," responded Walker. "Never had such a conversation?" continued Connolly. "No," said Walker.

Video from January 2011 Has Walker Talking of Plan to "Divide And Conquer" Unions

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In May of 2012, a video was released of a January 18, 2011 conversation with Beloit billionaire Diane Hendricks about creating a red state, wherein he states he is going to "divide and conquer" unions.

Hendricks: "Any chance we'll ever get to be a completely red state and work on these unions and become a right-to-work? What can we do to help you?" Walker: "Well, we're going to start in a couple weeks with our budget adjustment bill. The first step is we're going to deal with collective bargaining for all public employee unions, because you use divide and conquer. . ." Hendricks: "Which state would you mirror? Is there any state that's already . . ." Walker: "Well, (Indiana Gov.) Mitch Daniels, did - now, see the beautiful thing is, he did it in Indiana, he had it by executive order that created the unions years ago, and so when he came in about a week after he eliminated through executive order. In Wisconsin, it's by the statute. So I need lawmakers to vote on it. But the key is by tying it to the budget, there's no way to unravel that..."

Walker's Jobs Controversies

Walker Says Jobs Will Return After Recall

According to the US Bureau of Labor Statistics, Wisconsin was the only state in the country to have statistically significant job losses in the referenced year. Wisconsin lost 23,900 jobs between March 2011 and March 2012. The majority were government jobs, but that number also included 6,100 private sector jobs, the most private sector jobs lost in any state. Scott Walker has a new theory about when the job situation will improve. He told NewsMax in an exclusive interview that job creators are waiting for him to win the recall. "I think the big thing that people are waiting for is to have the certainty of knowing that this sort of positive outlook for job creators is going to continue," Walker told NewsMax. "That's why I think that after June 5th, after these primaries are done, and when I and the lieutenant governor and these senators prevail, I think it means there will be a clear message to the job creators and the small businesses in the state that now is the time to add jobs." But economists at the Federal Reserve have a more dire view of the situation. They say, "there is little prospect that such trends will reverse. Given the contradictory policies implemented in the budget, this is no surprise."

In May 2012, shortly before damaging new jobs numbers for April were released by the federal Bureau of Labor Statistics, Walker went data shopping and produced his own jobs numbers. While the official BLS numbers showed a loss of 21,400 jobs from April 2011-2012, Walker's new numbers showed a job gain for the year. Politifact attempted to decipher the numbers here and rated his statements and these numbers "Mostly False".

Is "Right to Work" Next on Walker's Agenda?

Governor Scott Walker has a history with this issue and with the American Legislative Exchange Council (ALEC), which has promoted a "model" Right to Work bill for decades. Before becoming Governor, Walker was a state legislator from 1993-2002. As a freshman legislator in 1993, Walker joined ALEC and cosponsored Right to Work legislation in Wisconsin. If passed into law, 1993's SB 459 would have applied to public sector as well as private sector workers. That bill failed to pass, but Walker kept trying, sponsoring another ALEC favorite, "Paycheck Protection" legislation (1997 AB 624), which would make it tough for unions to spend money on elections. Immediately upon being elected governor in November 2010, Walker started drafting a bill to strip public workers of their collective bargaining rights, even before he was sworn in. Previously, Walker had told Congress that he decided to move on the bill only after unions attempted to rush final contracts through a lame duck session of the legislature in December 2010.

Over the past 18 months, Right to Work has been actively on the radar of top legislators in both houses, discussed by Majority Leaders Scott and Jeff Fitzgerald with their caucuses. See more here.

Wisconsin Falls to 44th in Private-Sector Job Growth after Walker's Policies are Implemented

Numbers released in March of 2013 show Wisconsin fell to 44th in the nation in private sector job growth from September 2011 to September 2012. Additionally, wages fell faster and harder in Wisconsin than the rest of the nation, especially in manufacturing.

As the chart from the Milwaukee Journal Sentinel to the right shows, the decline in job growth as compared with the rest of the nation becomes significant around the time that many of Walker's policies were implemented.

Scott Walker and ALEC

From The Center For Media and Democracy's report ALEC Exposed In Wisconsin: The Hijacking Of A State:

Before Milwaukee County Executive Scott Walker ran for governor, he was a state legislator from 1993-2002, and he was an active member of ALEC. “Many of us, myself included, were part of ALEC,” he said in a 2002 interview. In addition to sponsoring ALEC’s Truth in Sentencing Bill (1997 AB 351), Walker attempted to privatize Wisconsin's prison system (1997 AB 634, 1999 AB 176, and AB 519), and sponsored early versions of anti-union legislation including “Right to Work” legislation (1993 SB 459) and “Paycheck Protection” (1997 AB 624). All these measures reflect long-standing ALEC bills and priorities.

After entering the governor’s office in 2011, Governor Walker called for the introduction of eight measures reflecting the ALEC agenda, listed as "by request of the Governor.” The first bill Walker called for upon taking office was Senate Bill 1 (which became Act 2), an “omnibus” bill that draws on numerous ALEC model bills to change liability rules and make it harder for Wisconsin families to hold corporations accountable when their products injure or kill.

When asked by the Milwaukee Journal Sentinel if Governor Walker relied upon ALEC legislation when putting together this “tort reform” bill, Walker’s press secretary Cullen Werwie replied “absolutely not.” But as the bill was pending in the legislature, ALEC sent an email to Wisconsin members stating that ALEC “supports this legislation which includes numerous provisions that reflect ALEC's civil justice reform policy and model legislation.” After Act 2 became law, ALEC issued a press release commending Walker and the legislature “for their immediate attention to reforming the state’s legal system.” Walker promoted the bill as needed to free the private sector to create jobs. Today, Walker has the worst jobs record of any governor in the nation, with Wisconsin ranking 50 out of 50 states in job creation.

Other bills Governor Walker requested that incorporate parts of the ALEC agenda include: Act 1 (Health Savings Accounts), a tax break that shifts cost burdens to individual policy holders; Act 9 (Super Majority Act), which would allow a minority of legislators to block a majority vote to raise taxes (supported by Grover Norquist’s Americans for Tax Reform, a long-time ALEC member); Act 10 (the Budget Repair Bill), which stripped most public workers of their collective bargaining rights; SB 13 (the Drug Liability Act), which would bar almost all suits by Wisconsin residents if a drug or medical device kills or injures a member of their family; Act 93 (the Trespasser Responsibility Act), which limits a property owner’s liability for injuries to another; Act 22 (Telecommunications Modernization Act), which deregulates the telecommunications industry; AB 14 (Interest Rate Judgment Act), which would have reduced the interest rate on court-ordered payments for Wisconsin families injured or killed by corporations; and Act 21 (Economic Impact Statement Act), which places hurdles on promulgating regulations, including regulations to ensure cleaner water and air for Wisconsin families.

Governor Walker has signed 19 ALEC-related bills and budget provisions into law. Many of these bills contain multiple provisions drawn from the ALEC playbook. In addition, Walker has received over $406,000 in recent years in campaign contributions from ALEC member corporations. Top ALEC corporate members that have contributed to Walker include: MillerCoors ($36,055), WellPoint ($34,200), Wisconsin Public Service Corp. ($28,364), Pfizer ($26,845), and AT&T ($22,875).

About ALEC

ALEC is a corporate bill mill. It is not just a lobby or a front group; it is much more powerful than that. Through ALEC, corporations hand state legislators their wishlists to benefit their bottom line. Corporations fund almost all of ALEC's operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps vote with elected officials to approve “model” bills. Learn more at the Center for Media and Democracy's ALECexposed.org, and check out breaking news on our ExposedbyCMD.org site.

Relationship to Koch Industries

OpenSecrets.org (the Center for Responsive Politics) reports that Koch Industries donated $15,000 on July 8, 2010 and another $28,000 on September 27, 2010 to the Friends of Scott Walker political action committee, to help elect Scott Walker as Governor of Wisconsin. Koch Pipeline Company, L.P. operates a pipeline system that crosses Wisconsin, part of the nearly 4,000 miles of pipelines owned or operated by the company. Walker has taken more than $70,000 from gas and pipeline companies, and opposed a high speed rail project that would have reduced Wisconsin's dependence on oil.

David Koch also "personally donated $1 million to the Republican Governors Association (RGA) in June of [2010]. This was the most he had ever personally given to that group.... The RGA in turn spent $5 million in the race, mostly on TV ads attacking Walker's political opponent, Democratic Mayor of Milwaukee, Tom Barrett. According to Open Secrets, Koch Industries was one of the top ten donors to the RGA in 2010, giving $1,050,450 to help with nationwide gubernatorial races, like Walker's."

But this doesn't tell the whole story: "David Koch was the founder and chairman of a front group called Citizens for a Sound Economy, which received at least $12 million from the Koch Family Foundations and which is the predecessor of the group Americans for Prosperity." Americans for Prosperity, which is also funded by the Kochs, funded pro-Walker protests in Madison during the battle over his controversial "Budget Reform Bill" after running "issue ads" in Wisconsin during the 2010 election cycle. AFP "featured him at its tea party rally in Wisconsin in September 2009, when he was running for the Republican nomination for governor.

"Americans for Prosperity also ran millions of dollars in ads on a 'spending crisis' (a crisis it did not run ads against when Republicans were spending the multi-billion dollar budget surplus into a multi-trillion dollar deficit), and it selected Wisconsin as one of the states for those ads in the months before the election. It also funded a 'spending revolt' tour in Wisconsin last fall through its state 'chapter.'....

"What is the return desired for their investment? It looks like the first dividend Walker wants to pay, through the help of the Koch-subsidized cheerleaders from Americans for Prosperity, is a death knell for unions and the rights of workers to organize."

When Governor Walker testified in front of the House Oversight and Government Reform Committee, chaired by Darrell Issa (R-California), on April 14th, 2011, Rep. Jackie Speier (D-California) "asked Walker how much money he had received from the Koch Brothers. When Walker demurred -- 'I got contributions from 50,000 people' -- Speier asked if he returned their phone calls, too, and reminded him that Koch Industries contributed $43,000."

David Koch Admits to Funding Walker Campaign

David Koch admitted that he is helping fund Wisconsin Gov. Scott Walker’s campaign in an interview with The Palm Beach Post. In the February 2012 interview Koch acknowledged that his group – Americans for Prosperity - is hard at work in Wisconsin, where Gov. Scott Walker is facing off with public unions and grappling with a possible recall vote.

"We're helping him, as we should. We've gotten pretty good at this over the years," he says. "We've spent a lot of money in Wisconsin. We're going to spend more," said Koch.

Funded by Koch money, Americans for Prosperity spent about $700,000 on an "It's working" television ad buy in the state that credits Walker's public pension and union overhaul with giving school districts the first surpluses they've seen in years.

"What Scott Walker is doing with the public unions in Wisconsin is critically important. He's an impressive guy and he's very courageous…If the unions win the recall, there will be no stopping union power," said David Koch.

Prank call from "David Koch"

On February 23, 2011, blogger Ian Murphy of the Buffalo Beast in Buffalo, New York phoned Walker posing as conservative billionaire businessman David Koch, one of Walker's major campaign contributors, and a major funder of the anti-union group Americans for Prosperity. In the call, Murphy posing as Koch makes derogatory statements about unions and Democrats. When the fake Koch suggested placing "troublemakers" among the crowd of protesters who have been swarming the Wisconsin state capitol for eight consecutive days protesting Walkers' anti-union "budget repair bill," (presumably to discredit them), Walker admits, "We thought about that." Walker then says he concluded that real unrest might swing public opinion against him and that it was better to let the protests play out, saying the media would eventually lose interest. Walker never said he decided not to place troublemakers because doing so was morally or ethically wrong, or illegal. Walker drew greater scrutiny and questions from public officials over these statements, and became an object or criticism for taking the call, since at the time he had refused repeated calls from Democrats trying to reach him to discuss the legislation he was proposing.

Wisconsin Protests Daily Live Blog

Beginning on February 14, 2011 the Center for Media and Democracy reporters provided live coverage of the historic protests in Madison, Wisconsin and related legal and political battles. The coverage focuses on the corporations and spinmeisters pulling the strings. The Center for Media and Democracy ended their daily live coverage on July 13, 2011.

• Wednesday, February 16, 2011
• Thursday, February 17, 2011
• Friday, February 18, 2011
• Saturday, February 19, 2011
• Sunday, February 20, 2011
• Monday, February 21, 2011
• Tuesday, February 22, 2011
• Wednesday, February 23, 2011
• Thursday, February 24, 2011
• Friday, February 25, 2011
• Saturday, February 26, 2011
• Sunday, February 27, 2011
• Monday, February 28, 2011
• Tuesday, March 1, 2011
• Wednesday, March 2, 2011
• Thursday, March 3, 2011
• Friday, March 4, 2011
• Saturday, March 5, 2011
• Sunday, March 6, 2011
• Monday, March 7, 2011
• Tuesday, March 8, 2011
• Wednesday, March 9, 2011
• Thursday, March 9, 2011
• Friday, March 11 - Sunday, March 13, 2011
• Monday, March 14 - Sunday March 20, 2011
• Monday, March 21 - Sunday, March 27, 2011
• Monday March 28 - Sunday, April 3, 2011
• Monday April 4 - Sunday, April 10, 2011
• Monday, April 17 - Sunday, April 17, 2011
• Monday, April 18 - Sunday, April 24, 2011
• Monday, April 25 - Sunday, May 1, 2011
• Monday, May 2 - Sunday, May 8, 2011
• Monday, May 2 - Sunday, May 8, 2011
• Monday, May 22, 2011 – Monday, July 11, 2011

Other Controversies

2013-2015 Biennial Budget Deficit

Walker's controversial biennial budget (2011-2013) which included deep cuts to education and other state programs left the state with a $146 million surplus. With that biennial budget, he also used a previous budget deficit as an excuse for slashing collective bargaining rights for public workers which sparked the uprising and recall effort in 2011.

Walker's proposed 2013-'15 budget bill is being criticized as a "u-turn" in policy which would leave the state with a potential deficit of $664 million for the following two-year budget according to the Legislature's nonpartisan budget office report. This proposed budget includes substantial tax cuts and increased spending for private voucher school programs. It also returns some money to public secondary and higher education, but not nearly as much as was cut from the previous budget. The Milwaukee Journal Sentinel reports that using GAAP accounting practices, the state deficit would grow to $2.64 billion from $2.06 billion, an increase of 29% over two years.

The Wisconsin Budget Project, an initiative of the Wisconsin Council on Children and Families, published a report titled 2013-15 Budget Overview: How Wisconsin Goes From a Solid Surplus to a Sizeable Deficit in March 2013 highlighting these issues.

Allegations of Political Patronage

Even though Walker has claimed Wisconsin is broke in part because public employees are overpaid, Walker's administration gave an $81,500/year job to Brian Deschane, a man in his mid-20s, with no college degree, very little management experience, no environmental experience and two convictions for drunken driving. Deschane's father, Jerry Deschane, is Executive Vice President and a Lobbyist for the Wisconsin Builders Association (WBA), whose PAC gave Walker $29,000 during the 2010 gubernatorial election. The donation made the WBA one of the top five donor PACs to Walker's campaign. In addition, members of the Wisconsin Builders Association donated over $92,000 to Walker's campaign over the last two years, for a total of $121,652. The younger Deschane held a part-time job at the Wisconsin Builder's Association prior to being awarded his job in Walker's administration. His job is in the Wisconsin Department of Examining Boards and Regulatory Authority. A Walker cabinet member hired Brian Deschane for a state job that paid $64,728/ year. Shortly after, he was moved to a position that paid $16,500 a year more, despite having only put in a few months with the state by then.

Broken Promise on Personal Pension Payments

Walker made a campaign promise to pay the full cost of his pension "immediately after taking office in January." An AP open records request sought to determine whether he was actually fulfilling that promise. However, records of Walker's Pension payments were redacted from the report released by the Governor's Office. Walker spokesmen Cullen Werwie later revealed that Walker did not start paying the full cost of his pension until August, meaning that he continued to not pay the full cost even while he sought increase pension payments and eliminate collective bargainging rights. Lt. Gov. Rebecca Kleefisch made the same promises and similarly failed to start paying the full cost until August."

Wind power

On January 11, 2011, Walker proposed a "regulatory reform bill" that contained a provision seeking to quadruple the distance between wind turbines and neighboring property (to 1,800 feet). A few weeks later, a joint committee of the legislature voted to suspend Wind Siting Rules that had already been developed in an open committee before Walker's bill was proposed, on the day the new rules would have taken effect. Wind proponents say that, combined, the actions have jeopardized approximately 700 megawatts of wind projects that were proposed in the state.

High Speed Rail

One of Walker's first actions as governor was to reject an $810 million federal stimulus grant for a high-speed rail project from Madison to Milwaukee which he termed a "boondoggle". The grant would have also paid for improvements to the Hiawatha line from Milwaukee to Chicago and other transportation improvements in the state. The rejected money instead went to other states along with estimated several thousand jobs that would have been created in the state. Also, now the state must foot the bill for the other improvements. Although the elimination of collective bargaining rights for public workers was the largest controversy of Walker's first term, Marc Eisen of the Isthmus predicts that the most devastating, long-term effect on the state will have been Walker's decision to reject the federal stimulus money and kill the high-speed rail project.

Biography

Scott Walker is the 45th Governor of Wisconsin. He was sworn in on January 3, 2011 after defeating his Democratic candidate, Milwaukee Mayor Tom Barrett in a close race - 52 percent to 47 percent.

Soon after being elected, Walker created a political firestorm when he introduced a biennial budget that greatly defunds state programs that aid low-income families, the elderly and children. Mass protests started in February in the state's capital, Madison, when it was discovered that the budget also sought to eliminate almost all collective bargaining rights for public employees and enforce sweeping reforms to public workers' pensions and benefits.

It was also discovered that many of Walker's campaign contributors were big corporations that benefit from changes made in his budget. Boycotts were started against companies like M&I Bank and Kwik Trip in protest. Koch Industries was Walker's biggest contributor.

The son of a preacher, Walker grew up in the small town of Delavan, Wisconsin. He attended Marquette University in Milwaukee, WI for four years but did not graduate. Before Walker was elected Wisconsin governor, he was the County Executive of Milwaukee County from 2002 to 2010 and a member of the Wisconsin State Assembly from 1993 to 2002.

Walker's Milwaukee County Executive Days

Walker was elected to Milwaukee County Executive in 2002 in a special election and served in that position until his gubernatorial election in 2010. As County Executive, Walker "enacted emergency budget powers" by laying off 76 employees in an attempt to fix a budget deficit. Walker also started trying to restrict union bargaining rights before his Governor days. "Walker believes that if the unionized employees take the wage and benefit reform, the budget gap would be closed. 'We're optimistic that if they came forward and accepted those changes that all the other employees have, we wouldn't have a gap.'"

A court ruling in January 2011 reversed the outsourcing of the county's security guards citing an overreach of authority by Walker. The move ended up costing the county money instead of saving money as originally planned as the county was ordered to pay back pay for the county guards, minus any unemployment or retirement benefits or earnings from another job. The county essentially ended up paying double for the same service.

He also implemented a 35 hour workweek for county employees, "which was recently declared an overstep of his authority by the Wisconsin Court of Appeals, have actually cost the county and state money in legal fees and corrective actions."

Walker was also courted by Americans for Prosperity, the Koch-funded tea party organization, during his time as County Executive. Walker was asked to "emcee" their annual Defending the American Dream Summit. He also spoke at a 2009 AFP rally in Milwaukee that attracted thousands.

In 2009, the state striped Milwaukee County of its role in administering food aid, child care and medical assistance programs that state Health Services Secretary Karen Timberlake said "was prompted by years of county mismanagement." The Milwaukee Journal Sentinel said that state managers were installed to fix the following problems: ]

• The county's poor performance in the programs includes answering only 5% of the hundreds of thousands of phone calls to the county's public assistance call center every month.
• The county fails to process 30% of its benefit applications within the required seven days, with some families waiting weeks or months for food or health care.
• In 2007, 60% of county decisions to deny food or health care benefits were overturned within two months. That resulted in benefit delays and forced families to go through time-consuming appeals or a second round of applications.
• The county's high food assistance error rate means nearly one in five deserving applicants were cut off from the program in fiscal 2008.

The The Economic and Community Development Division was also eliminated under Walker. The Democratic Party of Wisconsin also reported that more than 30,000 jobs were lost in 2009 under Walker's watch in Milwaukee County according to the Bureau of Labor Statistics.

The WI Democratic Party released a statement stating: "After eight years of Walker’s reckless money mismanagement, Milwaukee County is on the verge of bankruptcy, according to a report by the Greater Milwaukee Committee with the structural deficit expected to climb to nearly $100 million by 2014.

2016 Presidential Race

Buzz within political circles point to Walker as one of the leading choices for the GOP presidential nomination in 2016, especially after his powerful speech at the Conservative Political Action Conference (CPAC) in 2013. Additionally, Walker has become increasingly open with the press about entertaining the idea of a presidential run. In an interview with Politico during the 2013 CPAC in March, he alluded to possible 2016 presidential aspirations; however, this is a change from what he told the Associated Press just a few months earlier that he was not focusing on a 2016 presidential run.

Book Project with Former George W. Bush Speechwriter

“Unintimidated: A Governor’s Story and a Nation’s Challenge.” is the title of the book Walker is working on with former speechwriter for George W. Bush, Marc Thiessen. It is scheduled to be released late in 2013.

Publisher Adrian Zackheim said in a statement: "This book tells the dramatic story of how one brave leader drove real change in his state, and what the rest of the country can learn from him. It's not just a memoir -- it's a call to action."

Contact

Office of Governor Scott Walker

115 East Capitol

Madison, WI 53702

Phone:(608) 266-1212

Email: govgeneral@wisconsin.gov

Articles and Resources

Sourcewatch resources

• Wisconsin Governor Walks on Workers, Brendan Fischer, PRWatch, February 16, 2011.
• The Koch Connection in Scott Walker's War on Working People, PRWatch, February 18, 2011.
• Koch Industries

External resources

• Meet Scott Walker, biography
• Wisconsin Council on Children and Families
• Milwaukee Journal Sentinel Budget Coverage
• Milwaukee Journal Sentinel Watchdog Online
• Milwaukee Journal Sentinel - PolitiFact Wisconsin - Scott Walker
• Politico Pages - Scott Walker
• The Huffington Post - Scott Walker
• ScottWalkerWatch.com

References