Gov. Scott Walker's beleaguered jobs-creation agency would have to meet several tough new requirements before it gets money to operate under provisions the Republican-controlled budget committee has approved.
The Republican-controlled Joint Finance Committee added the accountability provisions to the budget Thursday on a party line vote.
Under the provision, the Wisconsin Economic Development Corp. could not spend any money in the second year of the state budget until it showed lawmakers that improvements had been made.
The new requirements come in response to a scathing audit released last week that said WEDC did not follow state law or adequately track loans it awarded.
Democrats wanted to cut the agency's funding as well, but Republicans rejected that.