After Gov. Scott Walker and Attorney General J.B. Van Hollen unveiled plans late last week to use federal mortgage relief funds to repair the state deficit, Wisconsin legislators are criticizing Walker’s leadership and his controversial decision to move funds.

A press conference drew criticism from legislators Thursday after Van Hollen and Walker unveiled a national settlement that will bring $140 million to Wisconsin to go toward damages for families affected by the foreclosure crisis. 

Van Hollen and Walker said last week Wisconsin joined a landmark $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices. 

Van Hollen’s spokesperson Dana Brueck said in an email to The Badger Herald that $31 million of the $140 million allocated to Wisconsin was assigned to go directly to the state. She said Van Hollen has given $25.6 million of the funds, 18 percent of the total, to the Wisconsin state budget toward deficit repair.

Brueck said in the email Wisconsin has seen of hardship since the foreclosure crisis. Brueck added the other 82 percent of the settlement money – approximately $115 million – is for specific programs that will provide relief to foreclosed homeowners and those who are struggling with mortgage debt.

Several legislators released statements following the details behind the allocation of the fund, including State Assembly Minority Leader Peter Barca, D-Kenosha. 

“This news illustrates how Governor Walker’s irresponsible budgeting and lack of serious focus on jobs and the economy have left Wisconsin fiscally unsound and caused us to fall farther behind on the road to economic recovery,” Barca said in a statement.

Barca’s spokesperson Melanie Conklin said Barca believes the money should be going solely to the struggling families of the foreclosure crisis.

Senate Majority Leader Scott Fitzgerald, R-Juneau, said he sees the settlement in a different light. 

“I am glad that the majority of this settlement is going to homeowners,” Fitzgerald’s spokesperson Andrew Welhouse said. “It is nice to see money going to homeowners that are struggling on their payments, not just the ones who have already foreclosed.” 

Welhouse added he believes it is beneficial 17 percent of the overall money for Wisconsin is going directly to the state to help homeowners through a variety of programs. 

Still, Rep. Kelda Roys, D-Madison, said she disapproves with the allocation of the funds going toward the state’s deficit. 

“The governor does not have the interests of struggling Wisconsinites at heart,” Roys said. “He prioritizes his own political needs over the needs of struggling Wisconsin families. He swore not to raid any federal funds, but he just keeps taking.”

Ellen Bernards, co-chair of Dane County Foreclosure Prevention Taskforce, also expressed disappointment over how the funds would be used.

“I am disappointed that the much-needed funds will not be used as intended,” Bernards said. “This settlement intends to help  homeowners that did not receive their share.”

Bernards added it was too soon to tell what the effect of the overall settlement would have on the state’s housing market.