A state house committee is looking into an Auditor General's report that the state's flagship economic development program may have given out an estimated $150 million in tax credits erroneously.
The State House Tax Policy Committee will hold a hearing at 9 a.m. Wednesday on the audit of the Michigan Economic Growth Authority program.
The MEGA gives out tax credits to approved businesses for jobs they create.
The Auditor General report found several problems with the Michigan Strategic Fund's oversight of the MEGA tax credit program. The audit concluded that the MSF's procedures were "moderately effective."
State Representative Tom McMillin, R-Rochester Hills, said he was pleased the Democrats agreed with him that a hearing was warranted.
"Based on a review of the Auditor General's report, I can only conclude that there is likely $100 million — $200 million of tax credits actually given out that were not earned by the businesses receiving them," McMillin said in a press release. "I reach that conclusion because the Auditor General only looked at 7 percent of the tax credit certificates in one year and found $2.6 million of likely unearned, but awarded tax credits. The businesses didn't really create the jobs they said they had in order to get the credits or the MEDC just gave them credits without checking on job creation numbers... but that was money out the door — money that should have remained in our state's coffers to help alleviate the budget crisis."
Tight security locked out dozens of anti-right-to-work protesters from the State Capitol as Governor Snyder was delivering his "State of the State" address. Protesters tried to disrupt the speech by banging and chanting outside the building.
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FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS
ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
opinion May 25, 2012
The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.
The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.
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