Senate to miss deadline to pass tax incentives for K-C

Package would try to keep one of two facilities

MADISON - The state Senate is on track to miss a deadline set by a Fox Valley paper maker to pass millions of dollars in state tax incentives designed to keep hundreds of jobs in Wisconsin, but efforts to reach a deal continue.

Kimberly-Clark Corp. has said it will close one of its plants in northeastern Wisconsin, but may keep a second open if the state comes up with millions of dollars in an incentive package.

But that would have required lawmakers to pass legislation delivering the incentives by Sunday — the date by which the company has said it wants a decision from the Legislature.

Though lawmakers and the Fox Cities Chamber of Commerce urged the company to push back its deadline, Kimberly-Clark hasn’t signaled it will. And the state Senate did not come back to Madison to take up the incentive package as Gov. Scott Walker had called for.

Senate Majority Leader Scott Fitzgerald’s office said late Friday discussions between Walker, Senate leadership and Kimberly-Clark officials to try to reach a deal occurred Friday and would continue through the weekend.

When asked if Kimberly-Clark plans to extend the deadline, spokeswoman Brook Smith said: “Conversations continue regarding our position to commit to using the incentives if the legislation is passed and an agreement with WEDC is reached, and we appreciate all the efforts initiated by the Governor, Senator Fitzgerald, Senator Roth and others in the state Legislature.”

“As we’ve stated, it is important to finalize our project plans to minimize the uncertainty and distractions being felt by employees at our various sites,” Smith added.

Fitzgerald has said the paper and hygiene product maker would close its Neenah nonwovens plant that employs about 110 people. But an incentive package could save the Cold Spring plant in Fox Crossing that has 500 jobs.

Both Fitzgerald and Walker have previously said the package would require Democratic votes to pass, but Senate Minority Leader Jennifer Shilling’s spokeswoman said Republicans haven’t reached out to Shilling’s office, and no Democrats have publicly said they would support the package that passed the Assembly in February.

Sen. Roger Roth (R-Appleton) has urged lawmakers to pass the bill, which would keep jobs in his district.

Roth told WLUK the Senate won’t be able to schedule a vote before Nov. 6 — the date of the midterm elections.