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Michigan’s Republican and Democratic lawmakers voted Wednesday to send more than $846 million in taxpayer dollars to a special fund to provide the money to private businesses that pledge to locate or expand in the state.
The controversial move is part of a $1 billion package introduced by state lawmakers Wednesday in an effort to use part of the state’s nearly $7 billion budget surplus.
The measure passed the Senate by a 25-8 margin. Republicans voted against the bill, Sens. Tom Barrett, R-Charlotte; Ed McBroom, R-Vulcan; Ruth Johnson, R-Holly; Eric Nesbitt, R-Lawton; Jim Runestad, R-White Lake; and Lana Theis, R-Brighton. Democrats Stephanie Chang, D-Detroit, and Jeff Irwin, D-Ann Arbor, opposed the bill.
“Economic development is critical to our future. As our economy faces the challenges of high inflation, labor shortages and supply chain issues, we must help our state remain competitive for long-term high-wage jobs.”
House lawmakers voted 76-28 to follow suit later Wednesday. The bill has bipartisan support.
Gov. Gretchen Whitmer thanked lawmakers for coming together on the supplemental funding bill, arguing it “will help attract billions in transformational projects in investment and bring thousands of jobs to Michigan.”
“The addition is proof of what we can do when we work together. Let’s move our state forward by putting Michiganders first,” Whitmer said in a statement.
Whitmer and GOP legislative leaders generally herald economic development incentives, but this package and a potential deal with funding have been rejected by other prominent lawmakers and officials, including a GOP candidate for governor and one Republican official. Opposing the bill of costs.
It’s about keeping money on hand to meet budget commitments already signed into law and possibly return money to Michigan taxpayers struggling with inflation. With the current uncertainty in the economy, we should not be new today. spending commitment,” Rep. Thomas Albert, R-Lowell, said Wednesday morning as he announced his decision to step down as chairman of the House Treasury Committee.
“Increased government spending has fueled inflation and played a major role in the economic struggles we face today. An additional cost will make things worse. “The action the Legislature is taking today is reckless and irresponsible to taxpayers, and I will vote against it.”
More:The Michigan Senate has approved a $100 million stimulus package for Ford, clearing the final legislative hurdle.
More:Ford could cut 8,000 salaried jobs — and still get $100 million in Michigan stimulus
Lawmakers are expected to approve the measure later today when the House and Senate meet for the last time before the Nov. 8 general election.
$846 million is going into something called the Strategic Output and Attraction Reserve Fund, or SOAR. Some of the money was in the fund this year, but lawmakers had to vote again to make sure it didn’t go back into the general fund.
The money in this special fund will be used to offset incentive payments for corporations coming to invest in the state. A plant that grows in mid-Michigan.
The law does not specifically mention any economic development projects. OT McKinley, a spokesman for the Michigan Economic Development Corporation, did not deny the project would receive public incentives. But he said it was inappropriate for “MEDC to preemptively encourage any requests from our legislative partners, the company and the Michigan Strategic Fund Board.”
“Being out of competition means following the established process and we will comment when the process is decided,” McKinley said.
A spokesman for Whitmer did not immediately respond to a request for comment. However, the Goshen project is expected to receive some form of government incentives as it has already received local incentives, according to news reports.
The fact that the EV battery maker is a Chinese company is a joke from GOP gubernatorial candidate Tudor Dixon.
“Your taxpayer dollars go to ensure that your children get a world-class education, that you have reliable infrastructure. That you have safe cities. But now we’re seeing taxpayer dollars going to an adversary Chinese corporation.” Dixon said in a taped statement released late Tuesday.
“Under the Dixon administration, your taxpayer dollars are being used to make sure you’re safe, your kids have a good future, and your roads are good. They’re not going to a Chinese corporation.”
More:The state of Michigan has offered incentives to Ford, which recently announced major job cuts
More:Michigan officials adjust subsidies for 4 large Dan Gilbert projects in Detroit
Michigan lawmakers recently used hundreds of millions from the same SOAR fund for massive stimulus packages for GM and Ford.
Ford’s plan, in which the company pledged to invest $1 billion and commit $100 million to create 3,030 new jobs, gained some momentum after the Dearborn-based automaker announced earlier this year that it would lay off 3,000 workers worldwide. Along with most of the job cuts coming in Michigan. Because the move affects mostly salaried workers and not hourly workers, Ford can cut jobs and take the tax money.
Other components of the funding include:
- $27 million to upgrade the sewer system of Thomas Township, a small municipality near Hemlock that owns the giant Hemlock Semiconductor. The investment is part of a wider plan to help the company expand its operations.
- Reports from the House and Senate fiscal agencies suggest increasing funding for child care facilities that serve children who receive mental health and behavioral stabilization programs or “children with developmental disabilities or cognitive impairments.”
- $20 million in “settlement payments” related to a lawsuit titled Bauserman and the Unemployment Insurance Agency. Later, it was a lawsuit filed by people who claimed the state garnished their wages or took other benefits after they wrongfully accused them of receiving improper benefits.
- $15 million to equip the Michigan National Guard with bathrooms, locker rooms and breastfeeding facilities for women.
Contact Dave Boucher: dboucher@freepress.com or 313-938-4591. Follow him on Twitter @Dave_Boucher1.
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