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Did former Wisconsin Gov. Scott Walker try to use some of the state pension fund to invest in startup businesses?

By Jacob Alabab-Moser
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YES

In 2012, the chief executive of the Wisconsin Economic Development Corp., Reed Hall, wrote a letter requesting a $200 million loan from the State of Wisconsin Investment Board, which manages the Wisconsin Retirement System public employee pension fund. Hall said the funds would be used to promote startup business growth.

The SWIB rejected the request by the WEDC — of which then-Gov. Scott Walker was board chairman — saying it had to ensure any investment "does not have any adverse effect on its management of WRS assets," according to documents obtained by the Wisconsin Reporter.

After the SWIB rejected the request, which Hall called "a long shot," Walker signed a 2013 law creating a fund to invest in Wisconsin businesses — $25 million that was allocated in the state budget.

Critics have pointed out multiple instances of companies underperforming after receiving financial incentives from the WEDC.

See a full discussion of this at Wisconsin Watch
This fact brief is responsive to conversations such as this one.
Sources
Internet Archive Walker to public pension fund manager: Can you spare $200 million?
Wisconsin Public Radio WEDC moves on after state pension managers decline to invest
WisBusiness Walker signs bill creating $25M venture capital fund
Center for Economic and Policy Research Scott Walker, Foxconn, and the Wisconsin Economic Development Corporation
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Wisconsin Watch, the news arm of the nonpartisan, nonprofit Wisconsin Center for Investigative Journalism, increases the quality and quantity of investigative reporting in Wisconsin, while training current and future investigative journalists. Its work fosters an informed citizenry and strengthens democracy.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.