Gov. Scott Walker To Use Foreclosure Settlement Money To Balance His Budget, Not Help Homeowners

[tridim]

http://thinkprogress.org/economy/2012/02/10/422744/walker-settlement-budget/

Yesterday, 49 states joined the federal government in announcing a $26 billion settlement with five of the nation’s biggest banks over the banks’ foreclosure fraud abuses. The money from the settlement is meant to aid homeowners who lost their homes to foreclosure or who find themselves underwater, meaning they owe more on their mortgage than their home is currently worth.

However, Wisconsin Gov. Scott Walker (R) — whose high profile assault on workers’ rights has prompted a recall effort against him — isn’t planning to use the money to help homeowners. Under the terms of the settlement, Wisconsin is set to receive $140 million, $31.6 million of which comes directly to the state government. And Walker is planning to use $25.6 million of that money to help balance his state’s budget:


Of a $31.6 million payment coming directly to the state government, most of that money – $25.6 million – will go to help close a budget shortfall revealed in newly released state projections. [Wisconsin Attorney General J.B. Van Hollen], whose office said he has the legal authority over the money, made the decision in consultation with Walker.

“Just like communities and individuals have been affected, the foreclosure crisis has had an effect on the state of Wisconsin, in terms of unemployment. . . . This will offset that damage done to the state of Wisconsin,” Walker said.

snip

Stealing money from a settlement and using it to pay down unrelated debt can't be legal, can it?

[WI_DEM]

1. And yet the Dems can't come up with a strong candidate to take him on in the recall?

[Obama3_16]

2. Doesn't get much more evil than that. And isn't he guilty

Of taking private money from banks for use by the state? Isn't that sin #1 for Tea Party/libertarian/right wingers?

I see lots of Wisconsin homeowners being pissed about this.

[hifiguy]

3. Is this even legal?

Or does the goggle-eyed homunculus ((C) Charles Pierce) not care?

[Firebrand Gary]

4. This is incredible.

Instead of help out the housing market, Walker is going to plug the budget hole that was created due to his tax giveaways. So in essence, Wisconsin homeowners are now subsidizing the Koch brothers.

[barbtries]

5. it should not be legal.

and is certainly despicable. i hope the ACLU's on the case.