GOP, Dems Spar Over Foreclosure Settlement Money

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The fight between Republicans in Madison and Democrats in Milwaukee over foreclosure settlement funds is flaring up again.

Milwaukee Democrats have been calling on Governor Scott Walker and Attorney General J.B. Van Hollen to send millions more dollars to Milwaukee from Wisconsin’s share of a national mortgage settlement. Milwaukee officials would like to use the money to try to prevent more foreclosures or tear down abandoned homes that are eyesores or attract crime. At a recent hearing of the legislature’s joint finance committee, Milwaukee state Representative Jon Richards criticized Van Hollen for wanting to use some of the settlement to boost the pay of assistant attorneys general.

“I hope you would reverse your position and stand up for the people living in these neighborhoods and houses, who are victims of the crime in those houses.”

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Van Hollen replied by accusing Milwaukee Mayor Tom Barrett of inaccurately claiming all of the settlement money was supposed to go to foreclosure victims. “As a matter of fact, it is 100 percent not the truth. He was not involved in the negotiations of this settlement: I was.”

In Milwaukee last week, Barrett argued the intent of the settlement was to deal with issues related to the foreclosure crisis. He says that’s what Ohio has done: “In Ohio, the Republican attorney general took the money that was discretionary and used it in communities that were hard hit.”

Barrett says he’ll keep making that point with the joint finance committee, even though Republicans who don’t live in Milwaukee control the panel.