After successfully stripping Wisconsin state public employees of their collective bargaining rights, working to deny low income
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residents the right to vote, and attempting to fend off the damaging effects of the burgeoning illegal electioneering scandal that is enveloping his administration and threatens to suck the Governor himself into the vortex, Scott Walker has found a new project worthy of his time and intents.
Walker is directing the State of Wisconsin to keep a large chunk of the money from this week’s national settlement with five of the nation’s largest mortgage lenders —money intended to help compensate those who were victims of the illegal mortgage practices that caused so many to lose their homes and to aid in the rebuilding of stricken neighborhoods—so that the state’s budget gap can be closed and Gov. Walker can head into his recall election able to claim that he has balanced the state budget.
Where does he find the time?
It can’t be easy for Walker to devise so many ways to take advantage of his constituents in furtherance of his own agenda and the agenda of his right-wing benefactors (you know who you are.)
Wisconsin is set to receive a total of $140 million of the $25 billion settlement.
Per the structure of the payment plan set up in the mortgage settlement, each state government is to receive a direct portion of the money for the purpose of funding future law enforcement efforts, providing additional relief to borrowers, paying civil penalties, funding of foreclosure relief programs and to compensate the state for its losses from the crisis.
As I review the list of intended uses, I simply don’t see paying down state budget shortfalls as meeting the purposes and intents of the agreement.
Of the $31.6 million coming directly to the state government, Governor Walker plans to keep $25.6 million of the cash to close his state's deficit with the remainder being placed in an account for further disbursal.
Milwaukee Mayor Tom Barrett, whose city experienced the highest level of foreclosures in the state and believes the $31.6 million in question should be made available to affected Wisconsin cities for programs designed to aid those who were the victims of mortgage fraud, is not amused -
Hundreds and possibly thousands have lost their homes because of this bait-and-switch" by lenders who pushed subprime mortgages during the housing bubble. The worst thing that can happen now is for the state of Wisconsin to employ its own bait-and-switch.
Even the Wisconsin Bankers Association, which counts among its members banks that were a part of the settlement deal, believes the portion of the funds going directly to the state should be used to mitigate the damage done to people by illicit foreclosure practices and to aid in neighborhood stabilization efforts.
And here is the best part –Governor Walker has a history of vigorously and audibly opposing the use of ‘one-time’ money from legal settlements (think tobacco settlement) to pay off state budget deficits.
So, how does Walker justify his actions when they directly contradict his previous position?
According to the Governor, this case is different because the foreclosure crisis had a “direct impact on the economy.”
Apparently, the impact of lung cancer, heart disease, and the many other tobacco related illnesses which formed the basis of the legal actions leading to the settlements between the states and the tobacco companies, have no such direct impact on a state’s economy. Never mind that states like Wisconsin spend millions or billions on Medicaid programs to treat those stricken with tobacco related illness, causing a very real and measurable drain on a state’s economy.
I’ll say this for Scott Walker – he never ceases to amaze.
The man manages to make Snidely Whiplash look like Mother Theresa.
Contact Rick at thepolicypage@gmail.com
Twitter @rickungar
