A news service for the people of Michigan from the Mackinac Center for Public Policy

A state program that awarded nearly $30 million to Michigan universities for job creation in Competitive Edge Technology sectors has created 153 jobs, a little more than a third of what was projected.

The Competitive Edge Technology Grants and Loans program awarded over $100 million to various universities, companies and research firms "to encourage the development of competitive edge technologies to create jobs in the state."

Twenty-nine grants totaling over $29 million went to seven Michigan universities in 2006 and were projected to create 411 jobs. 

A 2011 progress report states that 209 jobs have been created, but 56 jobs have been lost as a result of these grants.

The sectors of competitive edge technology are classified as life sciences technology, advanced automotive, manufacturing and materials technology, homeland security and defense technology; or alternative energy technology.

Funds for the Competitive Edge Technology program come from the 21st Century Jobs Fund and the program is administered by the Strategic Economic Investment and Commercialization Board.

In a 2008 press release, then-Gov. Jennifer Granholm stated that, "The 21st Century Jobs Fund is the cornerstone of the most comprehensive and aggressive strategy in the nation to transform our economy, grow new high-tech companies and create good-paying jobs for our citizens.

"...Just as we are working to create jobs today, this is an important part our plan [sic] to create jobs tomorrow."

Competitive Edge Technology was one of various 21st Century Jobs Fund programs identified by the Auditor General for lack of effective oversight. In a random sample of awards examined by the Auditor General, six Competitive Edge Technology program payments totaling $428,722 were made before receiving the related progress reports.

Additionally, the Auditor General found that the Michigan Strategic Fund did not validate expenses in progress reports submitted by recipients of 21st Century Jobs Fund awards.

When asked if progress has been made in improving oversight of 21st Century Jobs Fund programs, Martin Dober, who oversees the 21st Century Jobs Fund for the MEDC, declined to comment.

The universities receiving funds were Lake Superior State University, Lawrence Technological University, Michigan State University, Michigan Technological University, University of Michigan, Wayne State University and Western Michigan University.

The Competitive Edge Technology program also created a $7.7 million loan fund that has created only 20 percent of promised jobs.

Further state investment in competitive edge technology programs will continue now that Gov. Rick Snyder signed into law House Bill 5477, which repackages the failed Granholm-era “Centers of Energy Excellence” program under the new title of “Centers of Innovation.” House Bill 5477 states that Centers of Innovation program exists “to promote the development, acceleration, and sustainability of competitive edge technology sectors.”

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See also:

Select Tax Breaks For State 'Renaissance Zones' Program Returns One-Fifth of Predicted Jobs

Corporate Subsidy Program Lives On Despite Lackluster Results

State Program Awards $67 Million, Creates One-Third of Projected Jobs

The State as Venture Capitalist: Michigan Fund Loaned $7.7 Million, Creates Only 20 Percent of Promised Jobs

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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SEIU TAKES $33M AND COUNTING
FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS

ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
[clock1]
Skimmed since November 2006
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Skimmed after reaching the MI Senate in June 2011
[clock3]
Skimmed after the bill was signed April 10, 2012
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Skimmed after the Attorney General
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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