State funds could not be used to outsource or reduce net employment in Wisconsin under a Democratic proposal introduced on Thursday.

The bill, introduced by Rep. Peter Barca, D-Kenosha, and Sen. Julie Lassa, D-Stevens Point, is currently being circulated for co-sponsorship.

"Economic development is a central component to the state’s long term success. However, the taxpayers must have trust that they are getting a good value for the state funds used for economic incentives," Barca and Lassa wrote in their memo. "Tax credits and other state efforts must serve the community through increased job growth and investment. If businesses benefit from incentives without producing positive outcomes for the state, it is little more than corporate welfare."

Under the bill, no loan, grant or tax credit from the Wisconsin Economic Development Corporation could be used to relocate jobs outside of the state or to reduce net employment within Wisconsin.

Recipients of WEDC awards would be required to report to the agency certain jobs losses or jobs moved out of state within seven business days. The deadline would be extended to 30 days if the company could show extenuating circumstances would prevent it from meeting the 7-day window.