Outrage over outsourcing: Has Walker's job creation agency given money to companies that outsource jobs?



MILWAUKEE (WITI) -- Outrage, over outsourcing. Gov. Scott Walker has criticized Mary Burke over her former company's outsourcing. Now, Walker's critics are pointing out the Governor's own job creation agency has given money to companies that outsource jobs.

The Wisconsin Economic Development Corporation -- Governor Walker's flagship job creation agency meets in Wauwatosa ahead of the backdrop of the 2014 campaign for governor.

Walker has harshly criticized Trek for taking taxpayer money and sending jobs overseas.

An examination of WEDC records show is own jobs agency may have given money to companies that did the same thing.

According to the WEDC's annual report, Chicago-based printing giant RR Donnelley was given a $140,000 tax credit, saying it planned to make a $316,000 capital investment, but actually invested zero.

The company said it would create 75 jobs, but actually only created seven.

"If a company says they're going to create X number of jobs, they're going to retain jobs, and they're going to make a capital investment, and that's the premise on which the award is made, they get that, but they get that only if they perform," Gov. Walker said.

In company literature, RR Donnelley describes itself as "a leader in outsource solutions."

Scot Ross with One Wisconsin Now says WEDC must be more careful with public money.

"RR Donnelley was given $140,000 in taxpayer funds and they tout themselves as a global outsourcing leader. They are actually a company that advises other companies how to outsource American jobs overseas to places like Sri Lanka and the Philippines  and India, so I think it's incredibly troubling," Ross said.

RR Donnelley has facilities in Greeville and in Monroe.

According to Wisconsin's Department of Workforce Development, RR Donnelley planned to lay off 47 employees from its Greenville facility in 2013.

On Monday, the Democratic leader of the Assembly said he would propose stricter rules for state awards.

"If something's changed in the project, or if they're outsourcing, that they certify they'll report back on that immediately," Peter Barca said.

"I'm all for it. It's one of those where it's too bad he didn't do that years ago when the Department of Commerce was doing that as well," Gov. Walker said.

On Monday, July 28th, Gov. Walker released a new ad -- alleging that Mary Burke mismanaged taxpayer money when she was in charge of the Department of Commerce. The Burke campaign says: "The Governor has moved from attacking a great Wisconsin company to fighting with local economic development professionals."