The Latest: Gov. Walker calls special session on Foxconn
MADISON (AP) -- The Latest on the Foxconn plant announced for Wisconsin (all times local):
Wisconsin Gov. Scott Walker has called the Legislature into special session to consider passing a $3 billion incentive package to lure electronics manufacturer Foxconn to the state.
Walker made the call Friday for the Legislature to return in August. Walker and Foxconn CEO Terry Gou signed a memorandum of understanding on Thursday for the factory to be built, contingent on the Legislature taking action.
Foxconn says it will build a $10 billion factory employing up to 13,000 people over the next six years.
The Legislature is controlled by Republicans and news that Foxconn wants to place its first U.S. factory in Wisconsin has generated bipartisan support. Some Democrats have questioned the size of the incentive package, which would be the largest in state history.
MADISON (AP) -- With an aggressive timeline to turn dirt before next fall's election, Gov. Scott Walker took to the air Friday to tout global electronics giant Foxconn's plans to invest $10 billion on a new manufacturing facility in southeast Wisconsin.
The campaign-style airplane tour took Walker far from where the factory three times the size of the Pentagon is to be located to make the case that the entire state would benefit from a plant that could employ 13,000 people.
"There's a whole lot of people out there scrambling to try and come up with a reason not to like this," Walker said in Eau Claire. "I can tell you, that's fine but I think they can go suck lemons. The rest of us are going to cheer and figure out how we get this thing going forward."
The plant would be the first outside of Asia to produce liquid crystal display monitors used in computers, televisions and other areas. Walker calls it a once-a-generation opportunity to transform Wisconsin's economy.
The envisioned factory, expected to open in 2020, would be 20 million square feet on a campus that spans 1.56-square-miles in what Walker is calling the "Wisconn Valley." It would initially employ 3,000 people, but the deal calls for that to grow to 13,000 within six years.
An exact location has not been determined, but Foxconn is looking at sites in Racine and Kenosha counties.
Walker's tour also took him to La Crosse, Eau Claire and Wausau.
The deal Walker signed Thursday with Foxconn CEO Terry Gou calls for a final agreement -- including the Legislature's passage of a $3 billion tax incentive package -- to be done by Sept. 30. Walker on Friday call the GOP-controlled Legislature into a special session next week to pass the bill, a draft copy of which Walker also released.
"That's somewhat aggressive for a project that big," said lobbyist Bill McCoshen, who helped negotiate economic development deals in Gov. Tommy Thompson's administration. The deep bipartisan support will help ease its passage, McCoshen said.
Democratic U.S. Sen. Tammy Baldwin attended President Donald Trump's White House announcement of the deal on Wednesday and two-time Walker challenger Democratic Milwaukee Mayor Tom Barrett praised it at a signing event on Thursday. Other Democratic lawmakers have spoken in support.
Because Wisconsin already waives all taxes on manufacturing credits in the state, the incentives for Foxconn would be paid as cash up to $200 million a year rather than a credit against taxes owed. They would be pro-rated based on job creation and money spent by Foxconn and could be recouped if jobs are lost.
"Gov. Walker has to some explaining to do to taxpayers in every corner of the state who will foot the bill for this deal on the Illinois border," said Scot Ross, director of the liberal activist group One Wisconsin Now.
University of Wisconsin-Madison agricultural economist Steve Deller said Friday that based on what he knows of the deal, the state structured it in the most responsible way possible.
"It seems as though, if you're going to do this, this is the way to go about it," he said.
One of the harshest critics within the Legislature is Democratic state Sen. Dave Hansen, who represents Green Bay. He said moving quickly on the $3 billion incentive package would be "a serious case of legislative malpractice."
Hansen expressed concerns that Foxconn would replace jobs at the plant with robots, as it has done at other facilities.
"Before the governor and legislators mortgage the future of Wisconsin taxpayers, possibly for decades, they should think very carefully about the long-term needs of the state rather than their own re-election," Hansen said.
A group of four Republican lawmakers from northeast Wisconsin pushed back against Hansen's claims on Friday, calling it "beyond appalling" and "insane."
"One need look no further than the shipyards and foundries in Marinette or the paper manufacturers scattered throughout the area to see that our area's economy thrives on manufacturing," said state Rep. John Nygren, co-chair of the Legislature's budget committee.
Rep. David Steffen, of Green Bay, said there will be countless economic benefits across the state. Walker's administration has estimated that there will be 22,000 other new jobs in construction and other associated fields thanks to the project.
"To think that someone would actively cheer against this type of economic growth is insane," Steffen said.