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Why you should never believe corporate welfare promises

Planners’ forecast for Ford plant was comically wrong; will anybody be held to account?

… the quality of the data being fed into it. In this case, the old programmers’ adage was precisely true: If garbage goes in, garbage comes out. The MEDC’s precise multiplier is based on a bunch of assumptions. Can state officials produce accurate assumptions? Ford bigwigs couldn’t accurately foretell … more

Ford pares back Marshall plant, and state incentives will follow

Automaker will hire 800 fewer people than planned; investment will shrink by $1.3 billion

… prep work. The CIP grant, Renaissance Zone exemption and PA 198 industrial property tax abatement will be reduced in step with the project downsizing, MEDC spokesman Otie McKinley said. Officials have not said how much the taxpayer money would be pared back. Ford is teaming up with a Chinese firm, CATL, … more

D-Day ship left adrift by Muskegon politics

$2.8M in state earmarks spark battle over legislative intent

… Agency. The $1.5 million grant would pay for land cleanup and improvements, MEDC official Jake Eckhold told MLive in 2021. The next fiscal year, lawmakers … not spent in accordance with the grant agreement must be returned to the MEDC.” But the relationship between the city and Mart Dock grew worse over time. … more

Recipient of $65M confident Marshall project will resume

Since Monday, three top officials have portrayed Ford pause as a tactic in UAW negotiations

… Michigan site and we need to allow the Ford Motor Co. and UAW to continue their negotiations,” Messer, chairman of the strategic fund and head of the MEDC, told the board Tuesday. All told, the $3.5 billion project could have already received as much as $270 million in corporate welfare of the $1.7 billion … more

Despite Ford ‘pause,’ board approves $65M for Marshall site

BlueOval Battery Park could have received as much as $270M of $1.7B in corporate welfare already

… and we need to allow the Ford Motor Co. and UAW to continue their negotiations,” Quentin Messer Jr, chairman of the strategic fund and head of the MEDC, told the board Tuesday. A call to the Marshall Area Economic Development Association went unreturned. more

Gotion is ‘wholly owned’ by a Chinese company, and 2 other takeaways from its foreign-agent filing

Gotion’s FARA declaration contradicts its articles of association

… staffers from both EGLE and the Michigan Economic Development Corporation. On Jan. 30, three EGLE staffers were on the call, and four were from the MEDC. On a phone call about environmental issues, the business development team outnumbered the environmentalists. The final outcome of those discussions … more

Michigan grants $500K for electric boat charging solutions

Michigan Tech will study how far boaters can travel from their home docks before needing to recharge

… is to “put Michigan at the forefront of future-proofing sustainable maritime transportation.” Six projects received grant funds from the state. The MEDC announces them as follows: Arc, a California-based electric boat manufacturer will receive $20,000 to conduct technology demos and demonstrate the … more

Michigan offered company $28B in corporate welfare, and still didn’t land it

Cash incentive offered to Micron was bigger than Michigan’s budget for state police and corrections

… included a 50-year property tax break amounting to about $23.8 billion in tax savings for the company over the lifetime of the abatement, according to the MEDC. That tax break would be offset at least partially by a negotiated payment in lieu of taxes. Michigan made “the largest known offer” of incentives … more

MEDC asks $5,700 for nondisclosure agreements

Government-by-NDA has been business as usual in Michigan. But the Mackinac Center insists on transparency

… agreements exist on corporate welfare deals? The MEDC’s preliminary response to the FOIA request offers … window, but it leaves many questions unanswered. The MEDC refers to 5,572 “sides” of paper that need to be … agreements, when, and why? Whitmer? Lawmakers? MEDC staff? Who, specifically? What did they attest … more

CapCon’s Michigan Constitution Project: What we hope to achieve

In 2023, Michigan Capitol Confidential will study the state constitution

… (2022), involved state subsidies to corporations. The court asked the Mackinac Center to file an amicus brief on the statutory question of whether the MEDC had to disclose the full amount it had promised to General Motors. The Mackinac Center’s brief pointed to Article 9, Section 23 of the Michigan Constitution, … more

Are Michigan’s corporate giveaways masking the state’s real problem?

Why do Michigan’s biggest companies require state subsidies to expand here?

… project has been approved by the MEDC’s board, and the House Appropriations … Albert, R-Lowell, had pressed the MEDC to explain what safeguards … job?” Albert also asked. The MEDC’s Josh Hund said the projected … supported by the transfer, the MEDC could work to claw back some … portion of the grant funds,” MEDC attorney Christin Armstrong … more

We are not as divided as we think

When it comes to government spending, there’s got to be a better way

… Michigan Economic Development Corporation. The MEDC, a state agency, took taxpayer dollars and then … income of over $59.7 billion since 2014. While the MEDC acted in the name of 'we the people,' it also signed … timeframe? How many people agree that letting the MEDC fork over $28.6 million in tax credits and direct … more

Michigan Legislature gave cover to GM, MEDC on tax credits

Transparency is Mackinac work. How the Mackinac Center Legal Foundation spoke up in favor of the public’s right to know.

… ensure the amount given to GM remained a secret. A lawsuit against the MEDC by Detroit resident David Sole challenged this secretive arrangement and … influencing whether the agreements get modified and in what matter?” The MEDC must report to the Legislature on how much the company receives. Only a … more

‘Mostly false’: Freep: Whitmer’s claims of 25K auto jobs are based on announcements, not jobs

But for the watchdog media, you might not realize Michigan has lost auto jobs, not gained them

… (let alone promised) is meaningless, unless you know how many were lost. Hendrickson writes: Leddy and Michigan Economic Development Corporation (MEDC) spokesperson Otie McKinley provided a list of dozens of companies that have collectively promised to create more than 25,000 jobs in Michigan’s auto … more

Will Shovel-Ready Land Help Michigan Compete for Electric Vehicle Jobs?

Michigan is losing its 'home court advantage' with the Detroit auto industry

… “Michigan must create a new ‘home court’ advantage,” reads a line of the MEDC announcement. The package of bills also included the critical industry … Michigan was never a true contender for the Kentucky and Tennessee jobs, the MEDC has admitted. The Whitmer administration argued that the incentives and … more

‘Economic Development’ Week Skips the ‘Development’ Part

Corporate welfare claims are grand, but the results are practically nonexistent

… was preserved on video at the MEDC website. Granholm said numerous … bought by a Chinese company. The MEDC deleted its video of the press … similar fate happened to many MEDC-supported alternative energy … administration. While the MEDC promotes its state-subsidized … subsidized through various MEDC programs were created. But … more

State Paid Company To Create Michigan Jobs — Or Move Them Elsewhere

One of Granholm’s failed electric car battery deals

… Systems keep the benefits even if it relocated almost half the jobs out of Michigan within three years of collecting its tax credit. This meant that the MEDC agreed to give the company taxpayer dollars for jobs that could have been shipped out-of-state. A123 Systems filed for bankruptcy in October 2012. … more

Agency Praised For Subsidizing 40 Jobs; In 2019 State Gained More Than 800,000

… breaks to a relative handful of corporations and developers. A Dec. 2 press release issued by Gov. Gretchen Whitmer's office extolled a decision by MEDC officials to give $240,000 to a company called Auto Supplier TÜV SÜD America to set up a battery testing facility it says will create 40 jobs in Auburn … more

Giving Taxpayer Dollars to Some Corporations A Lucrative Business For These Nonprofits

The MEDC, the state’s corporate welfare agency, has local partners

… total revenue of $7.14 million that year. Quintin L. Messer, the CEO of the Michigan Economic Development Corporation, collects $287,000 annually. The MEDC is the state government agency that cooperates with local corporate subsidy agencies by helping steer state tax revenue to projects in their own region. … more

Granholm Brings Michigan’s Failed Green Energy Subsidies To Washington

Former governor, now U.S. energy secretary, visits state promoting same plan as if it worked

… ever reported. The state recovered $6 million of what it gave to the company. Sakti3 is a lithium battery company that received $3 million from the MEDC to develop battery technology. Company owner Ann Marie Sastry was invited to meet President Barack Obama. The company was bought by Dyson for $90 million, … more

Granholm Wind Scheme Lauded At First, But Then Fell Into Obscurity When It Failed

… would create 141 jobs, according to a press release issued by the Michigan Economic Development Corporation, the state’s corporate subsidy arm. The MEDC gave them a $400,000 grant in 2008. In July 2009, state media outlets picked up a story that Mariah Power had donated a wind turbine to be installed … more

Granholm Green Energy Handout: A Glowing Promise And Cattle Feed

After getting millions from taxpayers, Alpena biogas refinery now makes a livestock ingredient

… News, and thus lost its tax-exemption deal with the MEDC. The local newspaper also reported that the Alpena … and local taxes for 15 years,” according to the MEDC. Companies that receive the designation often … said in 2009. Greg Main, president and CEO of MEDC, also stated in 2009, “Developing and harnessing … more

Wind, Solar Firms Picked For Granholm’s Governor Mansion Soon Went Broke

Detroit Free Press reported the installation meant she’s not kidding on renewables

… Economic Development Corporation. United Solar Ovonic was awarded a $17.3 million tax credit in 2008. Mariah Power was awarded a $400,000 grant by the MEDC in 2008. more

Dodgy Metrics, No Real Accountability At Tax-Funded Tourism Marketing Program

Agency may have good reason to prefer Pure Michigan’s fluff to real transparency

… afternoon of March 16, the MEDC responded in part to our request.  … Development Corporation. The MEDC administers the state’s corporate … has long been a critic of the MEDC and its programs, as well as … ongoing example. Recently, the MEDC denied significant portions … costs to taxpayers. Until the MEDC becomes more transparent, the … more

Biden Blowout: Spending Bill Unnecessary and Harmful

State lawmakers must act to minimize waste

… Corporation. With new billions to spend, she apparently has the resources now to realize her dreams. It would be unwise, however, given repeated failures of MEDC programs, such as MEGA, film incentives and the Pure Michigan tourism promotion program. These aren’t the only bad ideas that abound, but it is pretty … more

Whitmer Still Claiming Vaccine Credit From Subsidy For Unbuilt Pfizer Facility

‘Those are not the claims we are making,’ says economic development official

… 2020 that no new jobs attributable to the state subsidies had been created so far. Whitmer’s office did not respond to requests for clarification. MEDC spokesman Otie McKinley, when asked to describe the evidence behind the claims of a connection between the Good Jobs subsidy for a planned-but-not-built … more

No Lockdown On Taxpayer-Funded Tourism Spending

Even though the resort interests that benefit are throttled by COVID restrictions

… and especially summer are our big travel months.” But on Nov. 14, the MEDC’s top executive, Mark Burton, told the Detroit Free Press that promotional … subject to limits of 10 people from no more than two different households. MEDC spokesman Otie McKinley confirmed in an email on December 1 that the campaign … more

Beer, Tattoo Art and Groceries: Is There Nothing the State Won’t Subsidize?

Governments do a lousy job at creating jobs through its handout programs

… 2019 report from the MSF and MEDC turns up several entries featuring … state agencies in the MSF and MEDC that effectively promote more … image worldwide,’” as the MEDC’s mission dictates? Grocery stores Years ago, the MEDC chose to offer a $1 million … This was not the only the time MEDC invested taxpayer dollars in … more

Kroger Earned $1.66 Billion In 2019, Getting $1.6 Million Michigan Taxpayer Grant In 2020

… an automated center project in Romulus that will use hundreds of robots, according to a Michigan Economic Development Corporation press release. The MEDC will deliver the money as part of a "Michigan Business Program." Kroger’s net earnings in 2019 were $1.66 billion. Net earnings is how much revenue … more

Corporate Subsidy Agency Claims Giving 18 Firms Average $321 Per Job Saved Those Jobs

… Marie recently received a $2,000 grant from one MEDC program. The facility celebrated its 10th anniversary … said. “Every penny helps a small business.” The MEDC also reported handing out $2,500 to Bruno’s Bar … business. That comes to $108.70 per job. This one MEDC program gave 18 businesses in one region a total … more

New Study Shows 21st Century Jobs Fund a Bust

These programs should be repealed and their administrative agencies shut down

… previous year. The only study we know of that demonstrated positive impacts from any 21st Century Jobs Fund program is the 2016 paper authored for the MEDC, the agency responsible for the program’s administration. There were several issues with that report, but perhaps first and foremost was that the authors … more

State Offers Corporations $593,913 On Average To Create A Single Job

New Mackinac Center study questions the return from corporate handouts

… came to fruition. The Mackinac Center study used how much businesses were offered in place of how much money in subsidies were distributed because the MEDC will not release that information in some cases. more

Budgets in the Time of Coronavirus

State officials should consider bold spending cuts and other reforms

… staff levels funded by two-line items that support MEDC employees in the state budget — preferably to zero … based on eliminating four programs linked to the MEDC in the state budget, it would save $18.3 million. … economic development projects in concert with the MEDC. Such funds should not be used to reward specific … more

MEDC Testimony a Reminder That More Transparency is Needed

New legislation would make the MEDC more transparent and accountable

… reminded this viewer why the MEDC needs more transparency and accountability. The MEDC’s chief operating officer, Amanda … described reviews of the MSF-MEDC by the Michigan Office of the Auditor General of Michigan. The MEDC has made a history of cheering … her opening statement, the MEDC’s COO said, “To date the Good … more

Fiat Chrysler And Ford To Get $131M From Michigan Taxpayers; Earned $26.4 Billion Last Three Years

That subsidy program expired in 2019, but GOP lawmaker trying to bring it back

… Michigan a successful program after Ford announced plans to add 3,000 jobs. Earlier in the year, Fiat Chrysler said it would create 6,433 jobs. The MEDC called the program a success. “The Good Jobs for Michigan attraction tool has been an instrumental tool in aiding six large-scale projects either … more

A Cautionary Tale About Job Promises And Corporate Subsidies

GM’s promised 6,000 Poletown jobs never appeared; Ford announces 3,000

… reported in October by Michigan Capitol Confidential: “A 2013 analysis by the state’s Auditor General found that just 19% of the jobs projected by the MEDC’s 21st Century Jobs Trust Fund came to fruition.” more

Michigan’s Corporate Subsidy Board Faces Tough Questioning

There’s a better way to help small business

… getting involved in the private economy. "The MEDC's mission is to facilitate programs that grow the … Tellier focused her response on small business. "MEDC and the Strategic Fund's role is in funding small … large corporations – not small businesses. The MEDC and MSF have recently redirected money away from … more

State Taxpayers Giving Company $7 Million To Move 21 Miles

Insurance firm gets to keep income tax its employees pay

… subsidies to select businesses and industries. But James Hohman, director of fiscal policy for the Mackinac Center for Public Policy, argues that the MEDC shouldn’t meddle in the private sector. “The state’s efforts to compete for jobs by selectively targeting certain companies is unfair and ineffective,” … more

Public Servants Should Deliver More Than a List of Adjectives

Cheerleading a program without providing evidence is not enough

… without state support, then the state support is wasted. That same evidence would be required to demonstrate its instrumentality on other projects. The MEDC is a public entity and evidence-based arguments ought to be expected from public administrators. They ought to at least outline the supporting evidence … more

Resort Owners On Subsidy Agency's Committee, Get Its Subsidies, Praise It In Newspaper

Spokesman says it’s all legal

… Development Corporation or MEDC) and its programs. The commentary … Traverse City Record-Eagle. The MEDC’s work with local governments … The MacInnes’ support of the MEDC and its array of taxpayer-funded … is a long-serving member of MEDC’s executive committee. That’s … noted in the tribute to the MEDC, Crystal Mountain received … more

Corporate Subsidy Formula: Big Promises In Headlines, Failures Invisible

Take those job promises with a grain of salt

… R-Bainbridge Township. “I appreciate the MEDC’s continued support of Southwest Michigan.” … made by subsidy programs under the MEDC umbrella are not fulfilled, and there … 19% of the jobs projected by the MEDC’s 21st Century Jobs Trust Fund came … the jobs initially projected by the MEDC were actually created in the Michigan … more

A Case Study in Ineffectiveness for the MEDC

Lawmakers pass a budget cutting the agency

… businesses and industries. The MEDC has a dreadful track record. … $16 million. Predictably, the MEDC was not happy, saying this … money saved by cutting the MEDC budget will have a greater … have been some changes at the MEDC, two recent cases raise questions … “responsibly balances” the MEDC’s programs with other items … more

Summertime, And The Spending Is Easy For Tax-Funded Tourism Ads

But some analysts say the programs are unfair and ineffective

… promotions will appear in 20 different markets, including Minneapolis, St. Louis, Louisville and Pittsburgh, and are also streamed on Pandora radio. MEDC spokesman Otie McKinley said, “This particular piece focuses on the hidden gems around the state. Not unlike Long Live Summer or Fall Filter, these … more

Dem Bills Make Companies Prove Innocence On Equal Pay

Yet important new Harvard study undermines basis of workplace sex discrimination claims

… equity,” according to MichiganVotes.org. The site reports that the commission would include “the directors of the Department of Civil Rights and the MEDC, and representatives from the Michigan Women’s Commission, the National Organization of Women, and the Michigan Women’s Studies Association, the AFL-CIO, … more

Corporate Subsidies Appear To Work Sometimes — Or Firm Was Coming Anyway

Firm got $130,000, not the $430,000 first offered, still built new plant

… list any repayments of the grant funds, either. An MEDC spokesman declined to provide additional information … defended the deal in a telephone interview. The MEDC’s assistance “was a success,” he said. “It helped … “This is actually a great success story. (The MEDC) has been really good to work with.” Some economists … more

Tech Company Gets $2M in State Money, Fails Performance Test

After failing employment targets, Rigaku repays $825k

… default of its agreement. In July of that year, MEDC staff proposed, and the MSF board approved, a plan … in installments from 2018 to 2022. According to MEDC annual reports on the performance grant program, … “repayment” status in the 2018 annual report. MEDC officials declined to discuss what happened to … more

Corporate Subsidy Agency Lets Firm Walk With $140,000, No New Jobs

But a year later the company celebrated its 100th birthday

… of the original grant in 2016, according to the MEDC’s annual report on the subsidy program, accompanied … produced 58 permanent new jobs. In 2017, however, the MEDC reported that the grant agreement was terminated … appears in the agency’s records available online. An MEDC spokesman declined to provide any additional information … more

State’s Business Subsidy Cherry-Pickers Failed In Handout To Cherry Picker

Picking corporate subsidy winners and losers not like choosing fruit

… say their handouts will deliver. Research shows these programs tend to be ineffective. Each time one of its winners fails to perform as expected, the MEDC should issue a press release announcing as much.” more

Billions In Michigan Taxpayer Dollars Flowing To Big 3

Shhhhh! State officials refuse to reveal how much

… like Ford’s investment in Michigan Central Station as the future home of its mobility-focused campus,” said Kathleen Achtenberg, spokesman for the MEDCmore

Repeat Business At State’s Corporate Subsidy Window

After first grant led to no new jobs, state gives company a loan

… Michael Finney, then CEO of the MEDC, said it was a sign that “Michigan … records available from the MEDC, Proos was in default on its … resulted from the agreement. The MEDC declined to provide further … planning a new expansion. MEDC officials were involved with … years. In a press release, MEDC CEO Jeff Mason said the state’s … more

No New Permanent Jobs From State Corporate Subsidy

Nexthermal gets $50k from taxpayers, repays $30k, creates no new permanent jobs

… India, according to a news release from MEDC. Former MEDC CEO Michael Finney said at the time: … default on it. The following year, the MEDC reported that the company made a repayment … respond to a request for comment. MEDC officials declined to provide additional … more

Company Defaults on $300,000 From State For Project, Repays $45,827

MEDC had boasted grant proved ‘the success of our strategy’

… Southfield. In a contemporaneous report by Crain’s Detroit Business, then-MEDC CEO Michael Finney praised the grant to NEMO, and two other grants as well. … Southfield. The company did not respond to multiple requests for comment. MEDC spokesman Otie McKinley said, in response to an emailed request for explanation, … more

Another Business Subsidy, Another Canceled Agreement

Company repays $62,600 in state grant money

… longer in force. According to annual reports the MEDC filed with the Legislature, by 2016, Blissfield … $125,000 of the award. In 2016 and 2017, according to MEDC reports, it repaid the state $62,500. In the 2018 … number of net new, permanent jobs created at zero. MEDC officials declined to provide additional information … more

Project Gets $100,000 Taxpayer Subsidy, Creates Zero Jobs, Firm Returns Just $26,000

Officials had boasted ‘additional good-paying jobs for years to come’

… renovations and add 65 new employees. The MEDC’s then-CEO Michael Finney said in a … work out that way. According to MEDC’s 2017 annual report to the Legislature … permanent jobs that resulted. The MEDC, responding to an email request for … inception in 2011 through May 2017, the MEDC awarded nearly $400 million in taxpayer … more

Failed Company Skipped On $2.1 Million State Loan, Wants More

Michigan corporate subsidy officials support extended benefits for firm’s successor

… Development Corporation. The MEDC, which runs the state’s business … Marquette-area employees in an email to MEDC officials in May 2018 that … RNFL to National Carbon, the MEDC documents show. MEDC spokesman Otie McKinley said … the first place, he said. MEDC “thinks they can pick winners … more

Taxpayer Backlash Coming Over Billions In Amazon Subsidies

But the rebellion against corporate handouts hasn’t reached Michigan

… company building a distribution center in Shelby Township. In June 2017, the MEDC approved a $5 million grant for Amazon for a distribution center in Romulus. The MEDC approved a $7.5 million business subsidy in December 2016 for another distribution … more

Auditor General Report Questions Michigan Strategic Fund and MBDP Jobs Program

The MBDP is a failure and should be shut down

… Center also questioned the MEDC’s return on investment claims … Renaissance Zone initiative found the MEDC did not do an effective job … Redevelopment program because MEDC management did not collect … training programs overseen by the MEDC. The agency said its program … 222. The OAG said that the MEDC had not tried to verify claims … more

2019 State Budget: Cut Corporate Welfare for Roads and Economic Growth

… corporate subsidy deals that were. The fund was created to support “funding highway, road, and street projects which support economic growth.” The MEDC has a say in spending some of this money — $16.7 million in fiscal year 2018 — which would be better spent on the state’s trunkline roads. Taken together, … more

2019 State Budget: Cut Corporate Welfare for Roads and Economic Growth

A good road system contributes to economic growth

… corporate subsidy deals that were. The fund was created to support “funding highway, road, and street projects which support economic growth.” The MEDC has a say in spending some of this money — $16.7 million in fiscal year 2018 — which would be better spent on the state’s trunkline roads. Taken together, … more

Whitmer Approved $4.51 Billion In Corporate Handouts, Denounces Opponents’ ‘Giveaways’

Dem candidate for governor says she may ‘unleash’ more if elected

… indications that she would look favorably upon similar giveaways as governor. In a primary election debate, Whitmer said she wanted to “unleash the MEDC.” The Michigan Economic Development Corporation is the agency created by former Republican Gov. John Engler that recruits select businesses for taxpayer-funded … more

What Would it Mean to Unleash the MEDC?

… its best, but it would be one way to unleash the MEDC. The state’s already doing some of that. Two programs … economy and justify taxpayer costs. Unleashing the MEDC is not about creating a conducive business environment … taxpayers have gotten for them. No, unleasing the MEDC is about politicians delivering money to select … more

Union Official Criticizes Corporate Handouts But Endorses Business Subsidy Champion

Former GM employee and UAW official has favored giveaways to ‘corporate special interests’

… the agency in charge of these programs, the Michigan Economic Development Corporation. But according to a report by the state’s Auditor General, the MEDC reported that one refundable tax credit to the company authorized disbursements as high as $2.1 billion. That deal was renegotiated and the details … more

What Would it Mean to Unleash the MEDC?

Lawmakers should keep the state's administrators on a tight leash

… short-term thinking at its best, but it would be one way to unleash the MEDC. The state’s already doing some of that. Two programs passed last year … tested way to grow the economy and justify taxpayer costs. Unleashing the MEDC is not about creating a conducive business environment to foster broad-based … more

Subsidies For A Few And Tax Hikes For The Rest Worked Poorly Here

All the former governor’s selective corporate handouts couldn’t overcome her huge tax hike or the Great Recession

… found that the relatively small number of companies that benefited from MEDC-managed subsidies and selective tax breaks only created between 19 and 22 … that Granholm preferred over broad-based tax cuts. It concluded that the MEDC claimed credit for generating 1.4 million direct, retained and indirect … more

A Plea for Skepticism about the MEDC: An Open Letter

Lawmakers should take a closer look at economic development programs

… exempt data in a way that make MEDC programs look more successful than they really are. The MEDC should not be allowed to hire … added.) In other words, the MEDC’s consultants eliminated from … sleight-of-hand exercise is not an MEDC one-off. The MEDC has hired consultants in the … more

Election Night: More Corporate Handouts or More Personal Income Tax Cuts?

As expected, both candidates have different plans for economic growth

… meeting in March, Whitmer promised to “Unleash the MEDC” in her first year as governor. Presumably, this … destroyed by the taxes required to finance them. The MEDC is effectively the state’s corporate welfare department, … that was supposed to be temporary. But as for the MEDC, it is unlikely to disappear under a Schuette administration. … more

Michigan Subsidizes Amazon, Even Without Second HQ Project

Millions in taxpayer dollars for distribution centers gives retailer a marketplace edge

… 100-acre distribution center in Gaines Township. The MEDC approved a $4.5 million grant for Amazon in September … in Shelby Township. Three months earlier, the MEDC approved a $5 million grant for Amazon in June 2017 for a distribution center in Romulus. The MEDC approved a $7.5 million grant for Amazon in December … more

Another MBDP Jobs Subsidy Project Doesn’t Work

State officials can’t pick economic winners from losers and shouldn’t try

… Corporation. “These projects reflect each private companies’ long-term commitment to the economic viability of Detroit,” said Steve Arwood, then the MEDC’s chief executive. But clearly, the very economic viability of Adient itself prevented the company from keeping any long-term commitment to Detroit, … more

State Business Handout Program Wastes Another $2 million

Another state subsidy deal fails to deliver

… of real opportunities here[.]” The MEDC serves as an administrative arm of … to the Legislature from the MSF and MEDC acknowledges that the company defaulted … discussions must not have gone well. The MEDC’s spokeswoman, Michelle Grinnell, said, … company deal still appeared on an MEDC webpage as late as June 7, 2018, under … more

Bonfire of the Bureaucratic Vanities

MEDC should publicize its failures, too

… and investment to our state,” then-MEDC president Michael Finney noted in a … addition to recommending this loan, the MEDC also supported, in the same year, an … happened. But that didn’t stop the MEDC from recommending in 2014 the company … fails to perform as expected, the MEDC should issue a press release announcing … more

Sen. Patrick Colbeck Talks State Government

‘You got to sometimes swing for the fences,’ says gubernatorial candidate

… state has deemed it upon itself to play venture capitalist with taxpayer money to the tune of about a billion dollars. It’s about halfway split between MEDC and Michigan Strategic Fund. I think that’s the wrong way of doing it. I propose broad-base tax incentives that honor Article I, Section I of the Michigan … more

MEDC Is a Moth to a Failure Flame

Suniva bankruptcy lights up program shortcomings

… In 2009 the Michigan Economic Growth Authority — the state’s chief business incentive program at the time — approved, with the recommendation of the MEDC, a “photovoltaic credit” subsidy to Suniva. The company, in turn, was supposed to create a new facility and 500 new jobs in Saginaw County. Then-Gov. … more

Pure Fiction: State Tourism Cost-Benefit Analysis Ignores Costs

The full cost of the Pure Michigan advertising campaign is ignored

… funded convention and visitors bureaus. This latest report is not the first example of a state-paid consultant leaving costs out of its analysis. The MEDC hired Michigan State University’s Center for Economic Research to examine the state’s film incentive subsidy program, for example. The MSU scholars … more

Whitmer ‘Tired Of ... Corporate Tax Giveaways’ But Voted For Dozens

Don’t tell progressives, but Dem legislators are among corporate welfare's best friends in Lansing

… of targeted tax incentives, saying that if elected she would ‘unleash the MEDC’ to pursue a ‘52-week jobs blitz’ in her first year in office. In many ways, … efforts were derailed by the economic downturn, according to Whitmer." The MEDC is the state agency in charge of Michigan’s corporate welfare programs. … more

State Corporate Welfare Agency Picks Winners That Turn Out To Be Losers

Program officials subsidize Cherry Growers, Inc., company goes bankrupt

… Traverse City. In 2012, the MEDC recommended that Cherry Growers … "profit-participation." The MEDC projected at the time that … then president and CEO of the MEDC, used a press release to announce … the “winner” picked by the MEDC has since closed and is in … otherwise. With each deal, the MEDC or MSF prepare a forecast of … more

State’s MBDP Job Creation Claims an Inconvenient Fiction

Just because government says its effective doesn’t mean it is

… companies are shown to have had their deals revoked. A spokesperson for the MEDC said that at least eight more revocations will be included in the 2018 report. … agreement with the state may ask for their deals to be amended. In the MSF-MEDC fiscal 2016 report to the Legislature, 38 amendments are offered up and … more

Bills Would Ban Keeping Taxpayer Handouts To Corporations Secret

A handful of companies are getting billions, but citizens are forbidden to know who or how much

… much the incentives were worth. For much of MEGA’s 15-year existence, the MEDC did disclose which companies were cashing in credits as well as the value … a $1.7 billion cap, according to The Detroit News. In February 2015, the MEDC valued General Motor’s remaining tax credits at $2.1 billion. According … more

MEDC Downplayed Pure Michigan Return On Investment Claims? Oh Really

Secretive numbers used in claims have headlined many tales told to reporters and lawmakers

… updated with a comment from the MEDC. David Lorenz is the Michigan … Michigan ads is used wisely. The MEDC recently ended its relationship … in 2010, Longwoods and the MEDC were claiming just an extra … catch: The company and the MEDC refuse to divulge the methods … Detroit Business article. The MEDC spokeswoman Michelle Grinnell … more

Rep. Sam Singh Says He Opposes Corporate Giveaways; His Voting Record Says Otherwise

Out of dozens of votes, it’s hard to find the Democrat opposing favoritism for select companies

… welfare flagship, the Michigan Economic Development Corporation. In his voting record, however, Singh has been one of the strongest supporters of the MEDC’s tax breaks and cash handouts to corporations and developers. Singh didn’t respond to an email seeking comment on his voting record on corporate welfare. … more

Does ‘True Success’ for Michigan Business Mean Government Handouts?

Step 1: Sen. Debbie Stabenow introduces you to state corporate welfare agency

… site MLive. MLive reports, “It began with U.S. Senator Debbie Stabenow” introducing the owner to the Michigan Economic Development Corporation. The MEDC then approved a $200,000 grant to the company, which was launched in 2016. ForTheRecord states: Michigan is indeed filled with small businesses that … more

Post Labor Day Weekend Good Time for Tourism Talk

Lots to discuss with unofficial end of summer season

… Economics wrote an email to the MEDC about a Mackinac Center study … first was brief and from the MEDC’s secretive consultant. He claimed … ROI is derived. He and the MEDC are basically saying, “You’ll … reports indicated that the MEDC was going to seek competitive … same claim and neither can the MEDC or other apologists for subsidized … more

Kid Rock: ‘Work Your Butt Off And Pay Taxes’

Some of those taxes may have been promised to brewer of Kid Rock’s beer

… the Michigan Economic Development Corporation awarded a $723,000 tax incentive package to the maker of his beer – the Michigan Brewing Company. The MEDC does not release the information needed to determine if the brewer received any of the money before going out of business in 2013. more

State Tourism Subsidies Unnecessary, Ineffective and Unfair

… on the grounds that it is proprietary. This secrecy should embarrass the MEDC, the state’s jobs department. It should embarrass anyone who knowingly relies … some are starting to question the claims being made by Longwoods and the MEDC. In April, Reps. Steven Johnson, R-Wayland; and Martin Howrylak, R-Troy, … more

Evidence? We Don’t Need No Stinkin’ Evidence, Imply Tourism Officials

Tourism officials make claims they can’t support

… on tourism promotion. The MEDC has repeatedly hired Longwoods … supports those claims. The MEDC, meanwhile, is perfectly comfortable … secretiveness. In other words, the MEDC and its contractors are saying, … Contrast the Longwoods and MEDC secretiveness with the Mackinac … between our findings and the MEDC’s contractor, we challenged … more

Dear House Tax Committee: Pure Michigan Return on Investment Not Validated

State Rep. Jim Tedder asks the right question

… wondering why a top official at the MEDC can’t provide an answer to … figure is calculated, which the MEDC knows and seems perfectly comfortable with (or, if MEDC officials do know, they respect … “validation study” for which the MEDC paid a different contractor … or published document. The MEDC’s validation contractor was … more

What’s Old is New Again: Another Subsidy Program Being Considered by Legislature

Good for politicians and well-connected businesses, bad for Michigan

… cost; all benefits.” Similarly, the MEDC also pays a consultant to calculate … figures it reports. Nevertheless, MEDC bureaucrats implicitly demand that … (and agency) salaries involved, the MEDC also uses sophisticated tools itself … such products produced by and for the MEDC are basically empty public relations … more

Secretive Bidder Wins Pure Michigan Contract Over Transparent One

Auditor General, not MEDC, should hire reviews of corporate welfare programs

… centerpiece of its proposal. The MEDC has a reputation for obfuscation … Legislature should strip from the MEDC the right to review its own … investment from Pure Michigan. The MEDC has appeared perfectly comfortable … apparently unaware of the MEDC’s reputation for preferring … department itself. Because MEDC officials have incentives to … more

Legislators Who Promote Transparency Should Start by Disclosing Corporate Welfare Deals

MEDC secrecy patronizes lawmakers and public

… Corporation to more sunshine. The MEDC is the state’s department of … bureaucracy. The failure of MEDC programs to create and maintain … to keep its records secret. MEDC officials routinely stymie … I’ve recommended before, the MEDC should be shut down in its … spends their tax dollars. The MEDC employs a dark methodology … more

What Happens When the Michigan Economic Development Corporation Ends?

State could save millions by stopping ineffective subsidies

… development policies. The MEDC is an “interlocal agency,” … economic development programs, the MEDC ought to go away. There is … quasi-state agency do it. The MEDC is not a third party entity … have an agreement with the MEDC to delineate each party’s responsibilities. … economic development programs. The MEDC gets additional income from … more