WISCONSIN RAPIDS, Wisconsin (From news reports) -- Assembly lawmakers passed legislation Tuesday that would provide $50 million in federal pandemic aid to a timber cooperative to buy and upgrade the Verso paper mill that was shut down in Wisconsin Rapids, costing 900 people their jobs.
But a memo by the nonpartisan Legislative Fiscal Bureau suggests that federal aid may not be allowed to be used to purchase the mill from Verso, which idled the factory in July after the coronavirus pandemic significantly decreased the need for its products, such as printer paper.
State Rep. Katrina Shankland, D-Stevens Point, said she worries the bill will sell the area "false hope" if the funds end up being ineligible for the purchase. Shankland, Rep. Beth Meyers of Bayfield and Rep. Nick Milroy of South Range, all Democrats, ultimately joined Republicans to approve the bill.
The bill also authorizes the Wisconsin Economic Development Corp. to award a loan of up to $15 million to a cooperative or other eligible borrower to purchase another shuttered mill in Park Falls.
The legislation left Republicans and Democrats pointing fingers and saying their political adversaries weren't doing enough to address the impact of the closure on the area's economy.
Republican Rep. Scott Krug of Nekoosa said Gov. Tony Evers didn't suggest an amendment for his bill until the night before Tuesday's vote on Krug's bill.
Krug said he didn't believe the guidance from the federal Treasury department precluded his plan because the mill's closure was considered a direct impact from the pandemic.
Under Treasury guidance, recipients of the federal aid generally may not use the money for general economic development or workforce development. But the guidance also says recipients "must demonstrate that funding uses directly address a negative economic impact of the COVID-19 public health emergency, including funds used for economic or workforce development."
Democrats noted Evers offered funding for the Verso mill weeks ago and the governor claimed Republicans endangered the project by rejecting Evers' amendment language that would have changed how it was funded.
"We can't afford for anyone to play politics with our state's economic recovery," Evers said in a statement. "We had a great opportunity to get things done, support our paper industry, and protect good jobs for families in our state -- it's unfortunate all of that lost out to partisan politics today."
Assembly Speaker Robin Vos of Rochester said lawmakers were using the legislation to try to press Evers into helping the paper mill.
"The bill that's coming now forces his hand," Vos said.
