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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
Those Who Do Not Learn from History…
Years of bad economic development deals haven't prevented politicians from trying again
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
Some Perspective: Michigan is Stronger Now, Part 2
Our economy recovered and grew with less corporate welfare
Giving Public Dollars To Private Interests Violates The Public Interest
So ruled Michigan’s most famous jurist back in 1871
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
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