A bill whose main provision would place US$25 million in state money to fund start up companies in Wisconsin has passed the first reading in its state legislature. This passed despite the recent audit finding issues regarding the agency that would oversee the funds should the measure pass.
The proposed bill comes from State Rep Mike Kuglitsch (R-New Berlin) would make available both state and private funds into a venture capital fund to Wisconsin based start up companies. The agency to manage the funds is the Wisconsin Economic Development Corp who in turn would hire a fund manager to oversee the investments made.
Unfortunately, the WEDC is facing many operational issues as a recent audit found that the agency did not comply with state law on tracking the funds it has loaned out. The audit also found that in some instances, money was given to companies who did not meet the minimum criteria for the grant and/or tax breaks.
All employees of the WEDC are subject to state ethics and disclosure laws of Wisconsin. The agency is also further requured to observe state law on purchases and entry into contracts,
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