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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
The 'M' in MEDC Should No Longer Stand For 'Mystery'
… agency will disclose.
The MEDC hands out millions of dollars … other relevant factors, the MEDC should explain them. But the … late 2008 or early 2009, the MEDC did at least disclose how much … information. From that point on, the MEDC has only disclosed how much each … coincidentally, not long after this the MEDC inked deals with Ford, GM 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
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
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
Q&A With the MEDC: Verifying Jobs Resulting From Special Government Favors
State Reps call for greater transparency or elimination of program
… after that, in April 2013, the MEDC reported to the state legislature … Sept. 30, 2012 total.
When the MEDC responded in July to questions, … issued that found that the MEDC had not been reporting on the … submitted four questions to MEDC, three of which were the same … new question. This time the MEDC responded.
Q: Could a company … more
After Billions in Subsidies, Just 918 Michigan Car Battery Jobs
In 2010, Granholm predicted 62,000 jobs
State Corporate Welfare Winner Released from Prison
Convicted Embezzler Once Shared Stage with Gov. Granholm
State Business Subsidy Recipients Get, Keep Taxpayer Dollars
Half the beneficiary firms failed to meet targets or created zero new jobs
State Loses 200,000 Jobs, MEDC Finds 2,185
Why tax cuts are better than corporate welfare
… similar figures are released by BLS every quarter. The magnitude of those MEDC job promises also is typical. What the contrasting figures starkly illustrate … Michigan's economy.
That's 200,728 jobs needed vs. 2,185 jobs promised by the MEDC. If this is the best we have, we're in deep trouble.
Thankfully, it isn't. … more
Commentary: Meet the New MEDC, Same as the Old MEDC
… the scoop:
In September, the MEDC issued a request for proposals … Michigan government (and/or MEDC) should spend to “be competitive … this, of course, is to use MEDC’s preferred tools of discriminatory … critique, and/or validate the MEDC’s method of defining an optimal … the answer could be “no.” The MEDC has little incentive to ask … more
MEDC vs. Kentucky
Michigan offers tax incentives worth five times the competition's
… in Saginaw. At the time, the MEDC stated that GlobalWatt was … pulled off the table before the MEDC offered its incentives.
“My … Granholm administration and the MEDC is desperate for any good news … Michael LaFaive said.
The MEDC knows their press releases … there were instances where the MEDC took largely cut-and-pasted … more
MEDC Feeling the Heat for Corporate Welfare Deals Coming Home to Roost
$9 billion in special deals projected
… Economic Development Corporation (MEDC) as incentives for businesses … claiming the credits.
“The MEDC made an interpretation of tax … Policy has been a critic of MEDC programs, and the MEGA tax … results.
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See also:
MEDC Boss Says Agency Changing; …
There is No Good Reason the MEDC Should Exist
Beer Website … more
Michigan House Wise to Shift Corporate Welfare Spending to Roads
Programs shown to be ineffective and wasteful
… Incentives” was a review and analysis of the academic literature on the subject of MEDC-type programs. The authors categorized and reviewed hundreds of other academic … conclusion from Brumm’s findings is that when a state department like the MEDC encourages corporate rent-seeking, it may actually limit a state’s growth … more
Tax Cuts Beat Selective Favors in Economic Growth
Only broad changes will improve the state's economy
… is the unheralded business gains and losses that drive the economy. Across the state, businesses are constantly adding and shedding jobs. While the MEDC was announcing 4,420 jobs, Michigan gained 222,000 jobs and lost 187,000, according to the latest data.
So even if the happy announcements were in … 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
Analysis: MEDC Letter an Admission of Failure
… specifically references the MEDC's Michigan Economic Growth Authority … on average. If this is the MEDC's idea of success, we would … of failure.
In March, the MEDC offered a refundable tax credit … possess a credit card, the MEDC placed him on stage with Gov. … testimony before a House committee, MEDC CEO Greg Main acknowledged … more
MEDC Removes Video of Obama, Top Dems Praising Failed Battery Company
YouTube promotion showed Obama, Granholm, Levin and Stabenow promising thousands of jobs
… rumored a few weeks ago, the MEDC made all of its promotional … have been raised about the MEDC’s lack of transparency.
The … failures.” Michigan Advantage, the MEDC’s (now defunct) YouTube channel, … dollars for their operations. The MEDC previously promoted dozens … of millions of dollars. The MEDC now has a new YouTube page, … 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
Emails Show Shaky Grounds for Corporate Welfare Agency’s Transparency Shutdown
… emails from an exchange between MEDC officials are dated Feb. 13, … ostensible purpose of increasing MEDC transparency. What follows are three emails among MEDC officials, with the names of … legislative affairs for the MEDC. He is now the manager of the … Strategic Fund, which is the MEDC's parent agency.
At 10:06 AM, … more
Thirty-One MEDC Salaries Top $100K
… Information Act request, the MEDC has 31 employees making $100,000 or more. The MEDC has 351 positions.
Greg Main, president and CEO of the MEDC, had the top salary, at $200,000. … salary, at $150,000.
“The MEDC was structured to incorporate … and non-state funds,” wrote MEDC Spokeswoman Bridget Beckman … more
MEDC Approves Corporate Welfare for Dealership
LaFaive: Special favors unfair to competitors, taxpayers
State ‘Pure Michigan’ Agency Refuses to Debate Ad Program's Cost Effectiveness
Think tank's independent research suggests taxpayers get back $2 for every $100 Pure Michigan spends
… internal discussions between MEDC officials and agency vendors … findings” unfavorable to the MEDC and state government spending … Center has also accused the MEDC and its paid consultants of … co-authors issued their challenge to MEDC officials to debate the effectiveness …
Dave Lorenz, who directs the MEDC bureau that manages the campaign, … more
MEDC's Magic Act: Make Taxpayer Money Disappear With Little Return
… about the debate over whether MEDC should be eliminated. Chances … encourage recognition of what MEDC actually is.
As the state’s corporate welfare arm, MEDC is supposedly tasked with enhancing Michigan’s economy. In reality, MEDC is an advertising and promotional … relatively minuscule byproduct.
MEDC spends the public’s money, … 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
MEDC-Endorsed Bet on Horse Track Now Under Investigation by Wayne Co.
… racecourse employees. However, an MEDC memo dated Sept. 23, 2008, … independent contractors." The MEDC memo states the course would … working at the racecourse.
The MEDC estimated that the project … $6.5 million in tax credits.
MEDC spokesman Michael Shore stated … Pinnacle Race Track property, the MEDC briefing memo on Post It Stables … more
State Economic Development Group Has Little To Do With Job Success
Analyst: 'Right-to-work’s success will be determined by Michigan’s overall economic performance'
… already been ringing at the MEDC since we passed that legislation. … James Hohman warned that the MEDC has little say in how successful … with the activities of the MEDC."
Companies opening in a state … Statistics. By comparison, the MEDC announced in March 2013 that … direct jobs announced by the MEDC eventually came to fruition. … 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
State Agency Approves Subsidy Deals Despite Repeated Shortcomings
… Program (which is part of the MEDC), with the state supporting … short of its projections.
"The MEDC should know these things rarely … Fagan, spokeswoman for the MEDC, didn't respond to a request … also:
CapCon Coverage of the MEDC
Rosy Solar Jobs Projections … a Campaign Tool
MEGA, the MEDC and the Loss of Sunshine
Job … more
Pure Michigan Spent $295 Million and Even Hotels Only Got Scraps Back
Researchers find taxpayers pay big to ring resort cash registers just a little
… industries most directly benefitted by the spending, MEDC has claimed that Pure Michigan is successful, recently … tax revenue.
But LaFaive and Hicks dispute the MEDC’s methods for determining whether the spending is … beneficiary of successive no-bid contracts from the MEDC. Yet the firm refuses to meet basic transparency … more
Cut Corporate Welfare to Help Balance State Budget
Tenuous relationship between corporate welfare and economic health
… corporate-welfare bureaucracy.
The MEDC takes money from many people and businesses … canceled in 2015. Even one of the MEDC’s own paid consultants found that the … probably ineffective.
Worse, the MEDC may actually harm economic growth. … search of favors, like subsidies. The MEDC hands out such favors.
The state needs … 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’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
Michigan to Write $1 Billion in Secret Corporate Welfare Checks in 2016
Which firms get the money? Taxpayers kept in the dark
… allowed to be told which ones are collecting,” said James Hohman, the assistant director of fiscal policy for the Mackinac Center for Public Policy.
The MEDC didn’t respond to an email seeking comment. more
Michigan Employers Create Thousands of Jobs without the Aid of Politicians
Economic development programs just transfer money to a lucky handful
… the total amount of job creation that happens statewide. Over the same three-month period in which Michigan companies added nearly 200,000 jobs, the MEDC announced that it had awarded support to companies to create just 425 jobs.
Not only is this less than 1 percent of all the jobs created, but these … 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
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
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
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
Snyder Orders a State Economic 20 Year Plan
'Whereas, government can help ...'
… receive its tax breaks and subsidy checks. A report from the state auditor general in 2013 found that only 22 percent of the projected jobs that the MEDC reported had materialized. In one example, a company projected 600 jobs but created just seven.
In 2010, then-Gov. Jennifer Granholm declared that … 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
Need A Microscope to Find the Corporate Welfare Jobs in Michigan's Economy
Press releases roar, subsidies bring forth a mouse
… promise numbers are probably overstated too: A September 2013 report by the Office of the Auditor General said that only 19 percent of those projected MEDC jobs ever came to fruition. more
Mystery Project Almost Got $5.5 Million From Taxpayers
Funding for P20 project tied up with money losing real estate offering, corporate welfare
… R-Midland, voted against an amendment offered by the Democrats on Feb. 20 to take it out of the final bill.
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See also:
CapCon Coverage of the MEDC 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
State Government Playing Favorites With Food Providers
Marquette co-op receives hundreds of thousands from state taxpayers
… grant was community investment."
The MEDC stated it projects the expansion, which … the number of jobs predicted by the MEDC and what have actually materialized …
Commentary: There Is No Good Reason the MEDC Should Exist
A Bipartisan Disaster: … Welfare Program
Pressure Mounting For MEDC Transparency more
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