Gov. Scott Walker challenger Rep. Dana Wachs to vote against Foxconn deal

MADISON - State Rep. Dana Wachs (D-Eau Claire) is pledging to vote against a multibillion-dollar jobs deal with electronics maker Foxconn Technology Group, making him the latest and sharpest critic of the proposal among Democratic candidates for governor. 

In exchange for environmental exemptions and up to $2.85 billion in cash from state taxpayers, Foxconn has said it would build a $10 billion plant that would employ 3,000 initially and as many as 13,000 in the coming years. GOP Gov. Scott Walker, who signed the deal, is touting it as a win for Wisconsin and a key reason to back his re-election in 2018. 

Wachs said he believes the deal is being voted on too quickly with too few protections for taxpayers and the environment. 

"I worked very hard to be a yes vote but there's (those) three things I can't get over," Wachs said. "I think it's a terrible deal for the taxpayers."

Several other potential Democratic candidates for governor have also questioned the Foxconn deal. Milwaukee businessman Andy Gronik, who like Wachs has committed to a run, initially praised it but now pans it. 

Like some other Democrats, state schools Superintendent Tony Evers pointed out Friday that the nonpartisan Legislative Fiscal Bureau has projected that taxpayers won't recoup their payments to the company until 2043, even assuming a substantial positive ripple effect from the project. 

"We need to make sure we're not taking money away from our schools.  A quality education for our kids is the best way to create the skilled workforce we need to bring new industries to Wisconsin," Evers said in a statement. 

Walker has countered that the fiscal bureau analysis looks at only the benefits and costs to taxpayers and ignores other factors like Foxconn's large potential investment in the plant and up to $700 million a year in payroll to workers. The deal is a once in a generation chance to transform the state's economy, the governor said last week.

RELATED: Wisconsin taxpayers would need until 2043 to recoup nearly $3 billion in Foxconn payments

RELATED:Senate Republican leader raises questions on Foxconn deal, says he doesn't have votes yet

FULL COVERAGE: Foxconn updates

The bill would let Foxconn avoid an environmental impact statement and reroute waterways and fill wetlands under certain conditions. But Walker spokesman Tom Evenson said that other rules would still apply.

"The bottom line is state and federal air, water quality, solid and hazardous waste standards are required to be met under this bill, and the exemptions are similar to other projects, like Lambeau Field, that provide a significant economic impact," Evenson said. 

"Bringing such high-tech manufacturing to Wisconsin will mean the need for about 150 suppliers, and the economic impact of this deal will stretch far beyond Foxconn’s direct employees as the company’s investment is expected to create 22,000 (indirect and ripple-effect) jobs, along with 10,000 construction jobs."

On his blog, Milwaukee attorney Matt Flynn said the state should reopen the negotiation with Foxconn and seek a lower subsidy from state taxpayers. 

"At a minimum, there should be no waivers of (environmental) regulations that bind other businesses in Wisconsin. There should be firmer guarantees on the number of jobs and the range of wages," said Flynn, also a possible candidate for governor.

State Sen. Kathleen Vinehout (D-Alma), also considering a run, also questioned the incentive package in a recent appearance on WISN-TV’s “UpFront with Mike Gousha.”

“The governor is picking winners and losers and he’s deciding that this one company is going to benefit,” she said. 

Gronik initially expressed support for the Foxconn deal.

“Ten thousand good-paying, family sustaining jobs for Wisconsin is a great thing for our state — period. This should not be a partisan issue,” Gronik told The Associated Press when the deal was first announced.

But spokesman Brandon Weathersby said that Gronik's views have changed as he has learned more about the risks of the project and the time it could take to recoup the state's investment. 

"Twenty-five years or more is an eternity in the hi-tech world when this plant could be obsolete in 10 years or less. I’ve been through plants like this — they are constantly being retooled because these platforms and delivery systems are constantly changing," Gronik said in a statement Friday. "So then what, pay Foxconn billions more to retool?"