Michigan gubernatorial candidate Virg Bernero was on WJR radio Thursday promoting the idea of a state bank to give select businesses loans to spur the economy. But in 2009, the Michigan Economic Development Corporation reported that it gave out $29.7 million in loans and that $9.7 million was "uncollectible."
The MEDC didn't expect almost 33 percent of its loans to be repaid last year.
The MEDC stated it will either write off these loans or take an ownership stake in the projects. That way if the project does make money, the MEDC can get its money back.
For example, in 2009 the MEDC stated that it had $2.8 million in life science loans and in that year had written off $800,000 as uncollectable and had taken another $900,000 as investment in the businesses that took the loans.
"This shows when you start making political motivations in loaning out money, you tend not to collect as much as you loaned out. That is a bad deal for taxpayers," said James Hohman, a policy analyst at the Mackinac Center for Public Policy. "This serves as a warning for the state bank. The state already has some experience making loans and it has not been positive."
Cullen Schwarz, campaign spokesman for Bernero, didn't return a phone message or e-mail seeking comment.
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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