Hold Corporate Subsidies Accountable
Michigan taxpayers deserve transparency, accountability, and measurable results when billions of taxpayer dollars are committed to economic development incentives.
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Michigan has committed billions of taxpayer dollars to economic development incentives with the promise of creating jobs and growing the state's economy. Yet too often, taxpayers are left wondering whether these expensive deals delivered on their promises. Before more taxpayer money is committed, lawmakers should ensure these programs are transparent, accountable, and producing measurable results.
The need for reform is clear. A Mackinac Center analysis of Michigan's largest subsidy agreements since 2000 found they produced only about 9% of the jobs originally promised. A more recent review of the eight largest subsidy deals announced under Gov. Whitmer found an even more troubling result: companies promised more than 20,000 jobs, but after approximately $1.8 billion in taxpayer commitments, only 602 jobs – about 3% of those promised – had been created. Some subsidized projects have been canceled entirely, while others have significantly reduced their commitments.
A bipartisan package of legislation would strengthen oversight of Michigan's economic development programs. The bills do not eliminate incentive programs. Instead, they provide taxpayers and lawmakers with better information, stronger safeguards, and greater accountability when public dollars are used to support private development projects.
The legislation would:
- HB 5411: Reduce taxpayer subsidies proportionally when companies fail to meet agreed-upon performance commitments.
- HB 5412: Improve oversight of the Brownfield Redevelopment Fund by requiring legislative reporting before certain funds may be distributed.
- HB 5413: Start an interstate compact to agree with other states to stop offering corporate welfare.
- HB 5414: Make payments to the recipients of Michigan Economic Growth Authority credits public information again.
- HB 5415: Make statutory changes necessary to implement Michigan's participation in the interstate compact.
- HB 5416: Require economic development deals to be posted online before they are approved.
- HB 5417: Improve oversight of the Michigan Strategic Fund by requiring legislative reporting before certain funds may be distributed.
- HB 5418: Require public notice when subsidized projects fail to meet their job creation or investment commitments.
Taxpayers deserve to know where their money goes, what companies promise in return, and whether those promises are kept. Supporting this bipartisan package would help ensure Michigan's economic development programs are transparent, accountable, and worthy of the public's trust.