LANSING, Mich. (Michigan News Source) – Two Michigan representatives have penned a letter to Gov. Gretchen Whitmer detailing their concerns about economic development legislation under discussion in the House.
Representatives David Martin (R-Davison) and John Roth (R-Traverse City), who are both members of the House Economic Development and Small Business Committee, say they have “significant concerns” with House Bills 5768-5770. Those bills propose revisions to the Strategic Outreach and Attraction Reserve (SOAR) economic development program. It would be renamed the “Make it in Michigan Fund,” and allocate up to $250 million in state corporate income tax revenue each fiscal year for the newly named program. The money would essentially provide corporate welfare for housing and transportation in the state.
Martin and Roth believe the proposed bills will do more harm than good. “While we appreciate the effort to create a better economic growth strategy, we believe the current proposals still fall short in several critical areas,” they write. “Michigan’s current economic development plans aren’t working. Billions have been spent to win just a handful of jobs, and those jobs don’t even pay any more than other businesses.”
Among Martin and Roth’s many proposals, these two stand out. “The $670 million annual MPSERS payment must remain in the teachers’ retirement system and continue to pay down the state’s unfunded obligations. Defunding our teachers’ healthcare isn’t right and doing it to fund big businesses doesn’t make it any better,” they write.
In addition, Martin and Roth advocate for businesses with strong ties to Michigan. “At least 60% of economic development funding should go to job providers that already have roots in Michigan.” They continued, “If Michigan taxpayers are going to fund these new jobs, then let’s keep the impact local with Michigan businesses.”
The two signed the letter by saying “Our shared goal is to advance Michigan’s economy in a way that benefits our residents and job providers.”
While some Democrats are on board with the new SOAR provisions, some within the party are pushing back. Rep. Dylan Wegela (D-Garden City) has said the state must “stop gambling with taxpayer dollars.”
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