The 2015-17 state budget prohibited the Wisconsin Economic Development Corporation from originating new loans totaling more than $10 million in fiscal year 2015-16 and $5 million in 2016-17. The budget also prohibited WEDC from issuing any new loans other than loans to develop technology after this June 30.
WEDC has faced frequent scrutiny over its operations since Gov. Scott Walker and Republican lawmakers created the agency in July 2011 to replace the Department of Commerce. The agency hasn`t recovered loans made to troubled companies, gave out $126 million without a formal review and has experienced high turnover in top positions. Republicans included the loan prohibitions in the budget in response to the problems. They have allowed WEDC to continue issue tax credits and grants, however.