Even worse than the press let on: Feds’ letter to DOA suspends block grant program, says WEDC not state agency

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This post’s Featured Wisconsin Blogger is Scott Wittkopf of Badger Democracy

“Badger Democracy has obtained a letter from the US Department of Housing and Urban Development Milwaukee Office (HUD) dated May 17, 2012 to Department of Administration (DOA) Secretary Mike Huebsch. HUD was not just critical of DOA/State oversight of the new Wisconsin Economic Development Corporation (WEDC); the federal agency suspended the critical Community Development Block Grant (CDBG) program.

The agency went so far as to state that WEDC is not an “…instrumentality of the state.” “

Also from the HUD letter:

“The CDBG program is defined incorrectly under the “Agreement.” Local Governmental Units are not required to pay back grant funds to the state. They are grants.”

I am enraged by the notion that the State of Wisconsin, with WEDC illegally working as its agent, has been misinforming communities — telling them that federal grant monies aren’t really theirs to keep.

Of course there’s more.

Please proceed to Badger Democracy to read, in full the post
Feds’ letter to DOA suspends block grant program, says WEDC not state agency.

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