LANSING, Mich. — Sen. Thomas Albert on Thursday led the introduction of a legislative plan to eliminate the Michigan Economic Development Corporation and reshape the state’s approach to job creation.
The 53-bill package would rein in corporate welfare and reduce the risk of bad investments by eliminating several programs. Other functions would be shifted to a newly created Bureau of Fair Competition and Free Enterprise, which would include an independent compliance officer to help monitor how the state invests taxpayer money related to economic development.
“The MEDC has failed massively and is beyond repair,” said Albert, R-Lowell. “They have wasted billions of taxpayer dollars on risky corporate giveaways and suspect grants to politically connected recipients. It’s time to shut down the MEDC, retain only those programs with a proven track record, and ensure decision-making for taxpayer-funded projects has accountability.”
Albert said the plan would ensure Michigan’s economic development programs have “concrete and measurable benefits” to the state. Senate Bills 631 through 683 would:
- Eliminate the MEDC, Michigan Strategic Fund, Strategic Outreach and Attraction Reserve Fund, Strategic Site Readiness Program, the Michigan Film and Digital Media Office and other programs. Money dedicated to the MEDC and Michigan Strategic Fund would be returned to the state’s general fund.
- Create the Bureau of Fair Competition and Free Enterprise within the Department of Labor and Economic Opportunity to wrap up existing MEDC obligations and continue several programs such as brownfield redevelopment and renaissance zones. New renaissance zone projects would be subject to $50 million and 15-year limits, and the act would sunset after five years so it can be reevaluated.
- Strengthen oversight by establishing an Office of the Chief Compliance Officer to operate independently of the new bureau. The compliance office would assist with creating, monitoring and enforcing policies to prevent illegal and unethical conduct.
Albert said that in addition to helping prevent overspending and fraud, his proposal shifts the focus of economic development away from government-run programs back to the private sector.
“We cannot continue replacing one failed corporate welfare scheme with another. Michigan has tried that state-directed approach for decades, and it doesn’t work,” Albert said. “We should get government out of the way and instead lower taxes and reduce bureaucracy so Michigan job creators and workers can lead the way to a brighter economic future.”
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