I am vetoing Assembly Bill 367 in its entirety.
The bill, as amended, would require the Governor to allocate $65,000,000 in federal funds received under the American Rescue Plan Act of 2021 (ARPA) for loans to be made by the Wisconsin Economic Development Corporation (WEDC) to finance the purchases of the Verso Paper Mill in the city of Wisconsin Rapids and the Park Falls Pulp and Paper Mill in the city of Park Falls, allocating $50 million for the Verso Paper Mill and $15 million for the Park Falls Pulp and Paper Mill, respectively. The bill also specifies terms and conditions regarding the loans, including a requirement that WEDC acquire a security interest in the properties.
I am vetoing this bill because I object to using ARPA funding for this purpose when the state has sufficient GPR funding to support the project and ARPA is not a reliable funding source to provide the long-term assistance needed to revive these mills and provide stable jobs to their workers. First, it is not clear that the U.S. Department of Treasury will permit ARPA funds to be used for this purpose. Treasury’s Interim Final Rule governing ARPA eligibility requires that assistance provided to businesses must respond to the negative economic impacts of COVID-19. Because many mills were experiencing significant financial difficulties prior to the COVID-19 pandemic as a result of long-term economic and industrial trends in this sector, the federal government may view the assistance as insufficiently tied to the impacts of the pandemic. Second, ARPA funds are only available for use through December 31, 2024, limiting their flexibility for the type of long-term loans needed by potential purchasers of the mills.
If a project was legislatively mandated and later deemed ineligible, the state would have to return the funds to the federal government. It is inappropriate to use a funding source that presents such risks and challenges when the state is in a strong financial position, sufficient GPR is available, and using state resources would provide greater flexibility on agreement terms and lower risk to the state. I previously called a special session of the Legislature to act on legislation that would have allowed us to invest $1 billion into economic development projects and initiatives across our state. Republicans gaveled out of that special session without deliberation or debate. Shortly thereafter, this bill was introduced, and I worked with the WEDC, legislators from both parties, local elected officials, and workers to reach a bipartisan agreement to amend Assembly Bill 367 and reach a solution without potentially jeopardizing state support for the mills or federal funds. Unfortunately, that amendment was not adopted.
I support efforts to provide reliable, long-term relief to Wisconsin’s vital paper industry and the workers at the Wisconsin Rapids and Park Falls mills. My administration has and will continue to work with local stakeholders to support these efforts. I put forward a bipartisan agreement providing an alternative funding mechanism for this relief that is realistic and can provide the communities a path forward, and I would welcome the Legislature to present legislation consistent with those conversations. Following my action on the state budget, there is ample state funding available for this and other priorities of the state.
Respectfully submitted,
TONY EVERS
Governor
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July 8, 2021
To the Honorable Members of the Assembly:
The following bill, originating in the Assembly, has been vetoed in its entirety, and was returned to its house of origin, together with the objections in writing:
Bill Number Date of Veto
hist137834 Assembly Bill 407 July 8, 2021 I am vetoing Assembly Bill 407 in its entirety.
This bill creates a Legislative Human Resources Office as a nonpartisan legislative service agency, with positions in the unclassified service of the state civil service system and headed by a director. Additionally, the bill seeks to shield the office’s records from the public records law by requiring the office to “at all times observe the confidential nature of records, requests, advice, complaints, reviews, investigations, disciplinary actions and other information in its possession relating to human resources matters.”
I am vetoing this bill because I object to creating a blanket exemption for the legislature’s personnel records. The public can often only learn about misconduct through public records requests, including requests for personnel records. The people of Wisconsin have a right to know about misconduct by public officials and employees, including those in the legislature. Further, this provision is unnecessary. Current law already gives record custodians ample flexibility to protect sensitive information contained in personnel records, such as the names or other information that could be relied on to infer the identity of a victim or whistleblower.
While I would support a clean bill that establishes a Legislative Office of Human Resources, I cannot support a bill that would be used to hide official misconduct from public scrutiny. The people of Wisconsin deserve more transparency, not less.
Respectfully submitted,
TONY EVERS
Governor
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Adjournment
Chief Clerk Blazel moved that the Assembly stand adjourned until 10:00 A.M. on Tuesday, July 13.
The Assembly stood adjourned.
10:06 A.M.
