Economic Development [Mackinac Center]

Gov. Rick Snyder’s first budget fell short of the “atomic bomb” promised by Lt. Gov. Brian Calley, in part due to the fact that a megaton of further spending and tax cuts were left on the table. Overall, the budget moves the state in a positive direction with greater tax simplicity, more transparency, less corporate welfare and fewer discriminatory tax policies. … more

Testimony of Michael LaFaive Before the State Senate Finance Committee

By Michael D. LaFaive, published on Feb. 9, 2011

Four Cheers for Gov. Snyder

By Michael D. LaFaive, published on Jan. 25, 2011

The first three weeks of Gov. Snyder’s administration has provided plenty to cheer, especially on fiscal policy issues. … more

Unity Studios: Whose Unhappy Ending?

By Kathy Hoekstra, published on Nov. 17, 2010

It appears likely the starry-eyed promise of Hollywood has left the taxpayers of Allen Park with quite the handful of overpriced real estate. … more

Wishful Reporting of Governor’s Investment Missions

By James M. Hohman, published on Nov. 12, 2010

In Gov. Jennifer Granholm's weekly radio address, she ballyhoos her investment missions abroad by claiming that they're responsible for creating or retaining 20,000 Michigan jobs. Unfortunately, she continues to mistake job announcements for job creation. … more

Hangar42 Investor in Court Today

Published on Nov. 10, 2010

The lead investor in the Hangar42 movie studio deal was in court today for a preliminary exam, according to The Grand Rapids Press. … more

Why Do Michigan’s Failed Economic Programs Stick Around?

By James M. Hohman, published on Nov. 4, 2010

Lack of Transparency at MEDC, MEGA

Published on Oct. 11, 2010

The Washington Examiner and San Jose Mercury News both recently cited Mike LaFaive, director of the Morey Fiscal Policy Initiative, about the need for transparency within government-run economic development programs. … more

Bad Week for Michigan Corporate Welfare Machine

By Jack McHugh, published on Oct. 1, 2010

On Thursday the plug was officially pulled on a monumentally hyped film endeavor in Allen Park called "Unity Studios." There were no press releases from the Governor's office or the Michigan Economic Development Corp. announcing the evaporation of the mirage. … more

GlobalWatt Claims on Applications for MEGA Deals Disputed, Raise Questions About MEDC Scrutiny

State Should Investigate GlobalWatt's Claims, Says Center Analyst

Published on Sept. 29, 2010

MEGA Questions Surround GlobalWatt

By Kathy Hoekstra and Michael D. LaFaive, published on Sept. 29, 2010

GlobalWatt's the Deal?

By Kathy Hoekstra, published on Sept. 29, 2010

Center Analysts Cited on Job Growth, Road Construction

Published on Sept. 10, 2010

Skepticism surrounds a recent report from the Michigan Economic Development Corp. that claims its "21st Century Jobs Fund" helped "save or retain" 20,000 jobs in the last five years, according to WOOD-TV8 in Grand Rapids. … more

Pay Attention to Candidates' Stance on Subsidies

By Michael D. LaFaive, published on Aug. 20, 2010

When considering which candidates to vote for in November — regardless of the office — be sure to examine their stance on Michigan's growing empire of economic development programs, which selectively hand out subsidies and tax favors to politically favored industries and firms. … more

MEGA Careful?

By Michael D. LaFaive, published on Aug. 4, 2010

How much background research does Michigan's corporate welfare bureaucracy actually perform on the potential recipients of its selective tax breaks and subsidies? Due to recent embarrassments the amount may be increasing, but until now the answer appears to be, "Not much at all." … more

Hangar42 in Court

Published on Aug. 4, 2010

The lead investor in a Grand Rapids-area film studio was in court Tuesday after being charged by the Michigan Attorney General's office with a felony relating to the deal.
As WZZM TV13 in Grand Rapids reports, the Mackinac Center "was the first to question the deal." … more

No Conversation Allowed

By Joseph G. Lehman, published on July 29, 2010

Some economic development officials are complaining of “collateral damage” from candidates and others who publicly discuss reining in Michigan’s generous array of targeted business subsidies and incentives. … more

Let He Who Is Without Jobs Sin Cast the First Stone

By Michael D. LaFaive, published on July 29, 2010

An article in Saturday's Grand Rapids Press contains one of the most troubling quotes from an economic development official we have ever read. … more

Michigan Taxpayers Writing Check to Second Electric Car Battery Maker for $100 Million

By Jack McHugh, published on July 15, 2010

The owners of another Michigan electric car battery plant, A123 Systems, will receive a $100 million cash subsidy from the state for a 75-acre facility the company has leased in Romulus. … more

Michigan Taxpayers to Write $100 Million Check to Korean Battery Maker

By Jack McHugh, published on June 30, 2010

Last week the the Michigan Economic Development Corp. upped the ante on a $100 million "refundable" business tax credit approved by the Michigan House and Senate for a subsidiary of the South Korean battery maker LG Chem. The MEDC in effect converted the credit into an outright cash subsidy from Michigan taxpayers by granting the plant's 120-acre site in Holland "renaissance zone" status for 15 years. … more

'Administration of a Tax': The Big Lie Behind Government Secrecy on State Corporate Welfare Checks

By Jack McHugh, published on June 18, 2010

Ms. Granholm, tear down this wall of government secrecy! … more

New Questions Arise Over Hangar42 Funding

Published on June 16, 2010

Questions continue to arise over the Hangar42 movie studio deal, including this breaking news from reporter Chris Knape at The Grand Rapids Press that outlines the involvement of a state representative's office in obtaining a tax subsidy for the project. … more

Film Office Director Agrees With Center on Hangar42 Movie Studio Deal

Published on June 16, 2010

The Grand Rapids Press and WOOD-TV are reporting that Michigan Film Office Director Janet Lockwood agreed with Mackinac Center analysts that a proposed movie studio seeking state subsidies is questionable. … more

Blowing the Lid off Film Subsidy Duplicity

By Jack McHugh, published on June 9, 2010

The Grand Rapids Press has captured the essence of what concerns people about a potential $10 million taxpayer subsidy for the investors in the "Hangar42" film studio project that Gov. Jennifer Granholm has boasted of. The 25 percent "capital investment" subsidy is based on a $40 million purchase price for the property claimed by the deal's promoter. The same building, however, was listed for sale at just $9.8 million as late as February. … more

MEDC Letter an Admission of Failure

By Michael D. LaFaive, published on June 4, 2010

On May 25, the executive committee of the Michigan Economic Development Corp. publicly cried foul over "unwarranted criticism" of the agency and warned that "political in-fighting" could hurt the state's business investment climate. But the criticism of the state's chief "jobs" department is not only warranted, it's overdue. … more

Government Secrecy Rules on $10 Million Film Studio Subsidy

By Michael D. LaFaive, published on June 1, 2010

Hard-earned taxpayer dollars are being handed over by the state to these film studios, and when legitimate questions and concerns are raised the response from those in charge is, "Trust us. We know what's best for you." Voters and taxpayers shouldn't accept that, and neither should state legislators. … more

Tax Hikes Will Force More Michigan Residents Out

Published on June 1, 2010

Gov. Granholm's call to raise taxes yet again in order to fix the latest budget overspending crisis she and the Legislature have created will send more Michigan residents packing, according to this Op-Ed in The Oakland Press by Morey Fiscal Policy Director Michael LaFaive. … more

More Information Trickles Out Regarding Hangar42

By Michael D. LaFaive and Kathy Hoekstra, published on May 26, 2010

Grand Rapids Press reporter Chris Knape continues to dig into the questions raised by the Mackinac Center about a potential $10 million subsidy for a film studio infrastructure project called Hangar42. … more

Statewide Media Respond to MEDC Complaints Over Criticism of its Failures

Detroit News, Free Press cover Google story that Capitol Confidential broke last week

Published on May 26, 2010

A columnist for Michigan Business Review says the Michigan Economic Development Corp.'s complaints about critics who point out the agency's failures is a "highly unusual move." … more

Media Covers Grand Rapids Movie Studio Deal After Mackinac Center Analysts Release Results of Months-Long Investigation

MEDC mum on Hangar42 deal

Published on May 26, 2010

Grand Rapids-area media have picked up on the story of unanswered questions involving the Michigan Film Office, the Michigan Economic Development Corp. and a movie studio that Mackinac Center analysts uncovered. … more

Stop Pointing Out Our Failures, Says MEDC

Published on May 25, 2010

After awarding $9 million in tax credits to a convicted felon and a report that showed it only helped create 18,000 jobs in 11 years, the Michigan Economic Development Corp. today issued a press release saying it is "deeply concerned" over "unwarranted criticism," according to annarbor.com. … more

Funding Questions Surround Hangar42 Studios Deal, According to Center Analyst

State officials mum on details surrounding possible $45 million project touted by Gov. Granholm in State of the State address

Published on May 20, 2010

MIDLAND — Recent data compiled by the National Education Association shows that average salaries for Michigan public school teachers from 2003 to 2009 outpaced those of teachers in all other states when factoring in states' per capita personal income levels, according to analysis by Mackinac Center Education Policy Director Michael Van Beek. … more

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