Barrett wants state to turn over foreclosure settlement money

Source: JSOnline (Milwaukee Journal Sentinel)

City officials, including Milwaukee Mayor Tom Barrett, are stepping up the pressure on Gov. Scott Walker to return money Wisconsin received as part of the state's share of a national settlement over foreclosure and mortgage-servicing abuses.

In February, state officials announced that Wisconsin would be receiving $140 million as part of a $25 billion settlement. In April, Walker signed off on a plan in which the state kept $24.3 million of the estimated $30.2 million it received in direct payments to help plug the state's budget gap. Then in June, Atty. Gen. J.B. Van Hollen said $1.3 million would be used for raises and bonuses for state prosecutors.

The diversion of money came as state Department of Revenue officials estimated that the state was taking in more revenue than expected, translating into a potential $275.1 million surplus.

For Barrett, that meant the circumstances had changed. If the state has a budget surplus, he said the state should give the city that mortgage settlement money so that it can be used for its intended purpose.
"I'm delighted to hear the revenue estimates show that the state is gaining revenue. That completely removes any rationale for ripping us off from those dollars that will help this city and other communities deal with foreclosed properties," he said.
"The reason for stealing the money in the first place is gone."

Read more: http://www.jsonline.com/news/milwaukee/barrett-wants-state-to-turn-over-foreclosure-settlement-money-r96sn10-169968846.html