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Five Reasons To End the Michigan Economic Development Corporation

The MEDC is set to expire this year

… to do with the functions the MEDC provides. Most likely the duties … taxpayers’ money. Within the MEDC annual report’s 135 pages you … too much to expect that the MEDC’s programs will drive the state … reasons, a reassessment of the MEDC ought to conclude that its … agency. Author's Note: The MEDC passed an amendment that extended …

Legislators Who Promote Transparency Should Start by Disclosing Corporate Welfare Deals

MEDC secrecy patronizes lawmakers and public

… Corporation to more sunshine. The MEDC is the state’s department of … bureaucracy. The failure of MEDC programs to create and maintain … to keep its records secret. MEDC officials routinely stymie … I’ve recommended before, the MEDC should be shut down in its … spends their tax dollars. The MEDC employs a dark methodology …

MEDC Testimony a Reminder That More Transparency is Needed

New legislation would make the MEDC more transparent and accountable

… reminded this viewer why the MEDC needs more transparency and accountability. The MEDC’s chief operating officer, Amanda … described reviews of the MSF-MEDC by the Michigan Office of the Auditor General of Michigan. The MEDC has made a history of cheering … her opening statement, the MEDC’s COO said, “To date the Good …

This Just In … Longwoods Out

Secretive MEDC consultant replaced

… but refusing to show you their report card. The MEDC, the state agency responsible for Pure Michigan, … the tourism economy fared no better. Unlike the MEDC’s contractor we used publicly available data sources. … the scene, this is a great opportunity for the MEDC to demonstrate the confidence it has in its program. …

The Real Problem With ‘Economic Development’ Programs

Michigan should end the MEDC

… suffer if the state sacked the MEDC. The reality is that the states … admits in the piece, “[The MEDC’s] overall impact on job creation … their core mission. While the MEDC and MEGA started as small, … harm than good. It’s good that MEDC has shrunk – but that doesn’t … it will stay that way. The MEDC does more political development …

Three Cheers for Michigan House Democrats

Questioning MEDC transparency is the right thing to do

… The latest salvo against the MEDC was inspired, at least in part, … obtain information from the MEDC. “I don’t think the Legislature … Joseph Rivet actually argued the MEDC should lose its funding over … try to hold these guys at the MEDC accountable to taxpayers, they … who also are troubled by the MEDC's lack of transparency and accountability. …

Pure Michigan Scare Tactics

MEDC deploys 'Washington Monument syndrome'

… transportation infrastructure. The MEDC is the state’s corporate welfare … construction and maintenance. The MEDC does not want its funding cut … Economic Development Corporation (MEDC), said the plan "severely limits … the press release from the MEDC, the media reports soon followed. … not nearly as valuable as the MEDC says, but it is undoubtedly …

MEDC's New Program: Government Funding Government

City of Ypsilanti will benefit from MEDC's $50,000

… enterprises will receive any of the $50,000 MEDC is kicking in to a “crowdfunding” project … anymore.” In response to questions MEDC Spokesman Mike Shore referred to an … of Ypsilanti.” ~~~~~ See also: MEDC Boss Says Agency Changing; Has Long … Companies There is No Good Reason the MEDC Should Exist Beer Website Provides …

MEDC Boss Says Agency Changing; Has Long History of Backing Bad Companies

A look back at five MEDC-backed failures

… original jobs projected by the MEDC came to fruition. Finney said … 21st Century Jobs Fund, which the MEDC oversees, was created by the … of what is possible." "The MEDC of today is a very different … said in a press release.  The MEDC has a long history of making … last few years made by the MEDC on unproven technologies. …

The State Claims ‘Pure Michigan’ is Worth Tens of Millions. It Isn’t.

Other Research does not validate MEDC’s secretive, no-bid contractor

… challenged about such claims, both the MEDC and Longwoods have pointed to other … touted by then-vice president of the MEDC’s Travel Michigan office, George Zimmerman. … written extensively about how the MEDC hired Longwoods with an expectation … should be more than skeptical of the MEDC’s efforts to defend its funding stream …

MEDC Consultant Busted for ‘Recycling’ Reports

… need for more investment in MEDC programs. Specifically, the … of Kentucky involving the MEDC’s winning bidder, a firm called … submitted in response to an MEDC request for proposal looks … a recycled version of the MEDC’s own deeply flawed RFP. There’s … conforming to those sought by the MEDC. Pleasing a client is not …

Michigan Film Incentives ‘All But Dead’

But if the MEDC wants them, it can keep them

… subsidies are widely seen by economists across the spectrum as one of the worst ways to spend tax dollars. Michigan’s “economic development” agency, the MEDC, could continue selectively funding films, however. But while all areas of government “economic development” spending is controversial, film production …

Beer Website Provides More Information About Taxpayer Investment Than The State

Deals that never materialize are not reported by the MEDC

… "American Badass" beer. The MEDC doesn't mention anything in … business. The transparency of the MEDC is a concern, said James Hohman, … Center for Public Policy. The MEDC only tracks deals when the … are not reported on by the MEDC. For example, in 2008 the MEDC approved an estimated $827,000 …

State's Corporate Welfare Agency Tone Deaf to Requests for Transparency

MEDC treats transparency 'as an annoyance'

… much-needed transparency at the MEDC, companies accepting tax credits … conclusion of the hearing, the MEDC's chief executive, Steve Arwood, … a longstanding belief that MEDC presumes the public can't expect … with business interests. “The MEDC should have insisted that the … the Mackinac Center. “But the MEDC has treated basic transparency …

A Uniquely Overqualified Candidate

LaFaive's satirical cover letter for MEDC job

… Authority, which was run by the MEDC. We found that for every $123,000 … companies declared “winners” by MEDC jobs wizards, only one construction … included a broader analysis of the MEDC itself, found an empirical … the other programs run by the MEDC for the purpose of creating … delighted by the generosity of the MEDC’s pay. A salary range of between …

Bonfire of the Bureaucratic Vanities

MEDC should publicize its failures, too

… and investment to our state,” then-MEDC president Michael Finney noted in a … addition to recommending this loan, the MEDC also supported, in the same year, an … happened. But that didn’t stop the MEDC from recommending in 2014 the company … fails to perform as expected, the MEDC should issue a press release announcing …

In 20 Years, Only Two Corporate Welfare Recipients Created 1,000+ Jobs

MEDC projections rarely come true

… recently, had the governor, MEDC, local agencies, etc., with … it was created in 1995, the MEDC has approved benefits for just … Both projects came under the MEDC’s former flagship program, the … created just seven. Many of the MEDC's announcements were made with … online advertising program. The MEDC authorized $38 million worth …

What The...?

MEDC grant to SEIU raises all kinds of questions

The MEDC's decision to extend a $2,000,000 refundable tax credit … Michigan State Council Website (MEDC's own announcement links here!) … health care legislation. Can MEDC guarantee that the "Member … political operation itself? Can MEDC guarantee that the facility … abuse this grant. The value of MEDC itself is dubious and this …

What Would it Mean to Unleash the MEDC?

… its best, but it would be one way to unleash the MEDC. The state’s already doing some of that. Two programs … economy and justify taxpayer costs. Unleashing the MEDC is not about creating a conducive business environment … taxpayers have gotten for them. No, unleasing the MEDC is about politicians delivering money to select …

What's Hiding Under the MASC?

It's Not Easy Getting Answers out of the MEDC

… get the definitive word. The MEDC's response to this seemingly … It's worth noting that the MEDC's own news release announcing … implication that this was what the MEDC was offering to SEIU/MASC: … sure was to check with the MEDC. We have contacted Bridget Beckman, the MEDC contact person listed on that …

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

MEDC mum on Hangar42 deal

… their months-long investigation. The MEDC and MFO, along with the principals … long line of problems involving the MEDC and less than transparent behavior. … is just the latest chapter in the MEDC's effort to remain as closed to public … Center's Policy Brief titled "MEGA, the MEDC and the Loss of Sunshine." "If the …

Should Government Hand Out Economic Favors?

One Perspective on the MEDC

… Economic Development Corporation (MEDC). A significant number of legislators … to reduce or eliminate the MEDC, an idea that is stimulating … development in general and on the MEDC in particular. Quite often … Center’s concerns about the MEDC do not mean we think that Michigan … permanently strong. When the MEDC works to accomplish such things, …

Broadband Deployment

What the Experts - not MEDC - Say

… Report on Deployment of Advanced Services; Issued August 2000)   "The MEDC's concern that Michigan is falling behind in the development of its high-speed … in a reasonable way to different levels of demand in different areas. The MEDC wants to disrupt that process." (Mackinac Center for Public Policy, Nov. …

Two-thirds of Respondents Want Tax Dollars To Go To Roads Rather Than Corporate Welfare

Over 60 percent of Democratic, Republican voters say yes to Michigan roads, no to MEDC

… Economic Development Corporation (MEDC). The poll was conducted by … poll, has been critical of the MEDC since Gov. John Engler’s executive order to create it in 1999. The MEDC takes money from many taxpayers … addition to being ineffective, the MEDC lacks openness and transparency … groups were skeptical of the MEDC’s value: 69.2 percent of Democrats …

According to Beneficiaries, All Government Spending Is Worth the Investment

… awarded a refundable tax credit to a convicted embezzler who had promised to develop water and electrical modules for use by third-world countries. The MEDC’s analysis showed that there were going to be 1,048 jobs created in the surrounding area because of the project, which was used to justify state support. …

SEIU/MASC: Curiouser and Curiouser

MEDC moved fast to secure a union operation for Michigan, but did they really need to?

… wish to do business in state. MEDC’s briefing document, which outlines … to file an application with MEDC, that would mean that MEDC took only 18 business days … outside of Michigan in case the MEDC grant fell through. This is awkward for MEDC because part of the rationale …

Job Numbers Vary Widely for Taxpayer Funded Electric Car Battery Maker A123 Systems

MEDC reported hundreds of jobs just prior to company's bankruptcy

… dynamics of how payroll was distributed and to how many employees is unclear to state and federal government officials. Kathy Fagan, spokeswoman for the MEDC, said the jobs number for A123 Systems was taken directly from A123's payroll records. "The feds may break out their numbers differently, but we don't …

Secretive Bidder Wins Pure Michigan Contract Over Transparent One

Auditor General, not MEDC, should hire reviews of corporate welfare programs

… centerpiece of its proposal. The MEDC has a reputation for obfuscation … Legislature should strip from the MEDC the right to review its own … investment from Pure Michigan. The MEDC has appeared perfectly comfortable … apparently unaware of the MEDC’s reputation for preferring … department itself. Because MEDC officials have incentives to …

Every Corporate Welfare Incentive Means New Jobs, Except for Most of Them

MEDC says 'every' subsidized project 'means jobs'

… only met 19 percent of their projected job totals. The report found that one company only created 14 of the 200 jobs it was projected to create. The MEDC has offered selective benefits to companies many, many, many, many, many, many times (you get the picture) that created few or no jobs.

State's Corporate Welfare Arm Says Ex-Attorney General Approved Being Less Transparent

MEDC: AG gave 'informal verbal advice' about not disclosing tax information

… general's office. In 2009, the MEDC stopped disclosing the names … on three questions posed to MEDC Vice President of Communications … the determination? 2 — Did MEDC ask for the ruling? 3 — Has … office.” To the question, “Did MEDC ask for the ruling?,” Shore … explanation for this particular MEDC step away from transparency. …

Tourism Promotion Study Criticism Absurd, Ironic

… inform public policy decisions, MEDC officials keep this methodology … to “check the work” of the MEDC’s consultants because their … multiple no-bid contracts from the MEDC, and whose current chair is a former MEDC official. When challenged on … hallmarks of valid scholarship. MEDC officials have strong incentives …

State Agency Has 52 Employees Who Earn More Than $100K

State Rep.: 'The MEDC's track record in picking winners is poor'

… percent increase over the 31 MEDC employees that topped $100,000 … newsletter, reported the new MEDC salary numbers, which it said it obtained from the MEDC. In its article, MIRS made … distinction between the 12 "public" MEDC employees who made $100,000 … Corporate employees at the MEDC are primarily paid from Indian …

Let the Sun Shine In

Specific MEDC/MEGA Transparency Recommendations

… actually fixing problems rather than covering up an embarrassing misstep, lawmakers will take a close look at these proposals and compare them to actual MEDC practices. The contrast will be stark. LaFaive's transparency recommendations include: Restore an "All MEGA Projects" spreadsheet the agency stopped …

Democrat Contradictions: Corporate Tax Breaks Bad, But Incentives for Hollywood Good

Dems criticize MEDC, but want to give more money to millionaire movie moguls

… referring to when mentioning the tax giveaways. "The MEDC is a slush fund the governor uses to funnel tax … programs that actually work, not empty promises. The MEDC for far too long has wasted tax dollars on proposals … Begnoche confirmed that her office is part of the MEDC. "Politicians of both parties score points with …

Spotty Track Record Doesn't Stop State Agency From Doling Out Deals

General Motors has 'created' fewer jobs than promised on 5 of the last 6 MEDC-partnered projects

… create jobs in the state. The MEDC's most recent beneficiary is … company's Warren Tech Center. The MEDC is planning to amend an existing … job projections involving the MEDC has not been good. In five … Motors got a tax deal with the MEDC in May 1999 for retaining 1,511 … facility, according to the MEDC. Not all the deals the MEDC …

State Budget Issues Big and Small

… Fund appropriations vehicle, which could also be shut down. The job of the MEDC is to take money from a lot of people and businesses and give it (through … guise of “creating jobs.” The Mackinac Center has shown repeatedly that the MEDC fails in its mission. Potential savings could exceed $123 million (estimate …

Lawmakers Looking At MEDC Transparency

… Although the amount of funds the MEDC spends annually has been significantly … millions of taxpayer dollars. The MEDC has a history of investing … Economic Development Corporation (MEDC)." "Economic development and … pronounced with entities, like the MEDC, that are involved with promotion. Over the years, the MEDC has acquired a reputation for …

A Case Study in Ineffectiveness for the MEDC

Lawmakers pass a budget cutting the agency

… businesses and industries. The MEDC has a dreadful track record. … $16 million. Predictably, the MEDC was not happy, saying this … money saved by cutting the MEDC budget will have a greater … have been some changes at the MEDC, two recent cases raise questions … “responsibly balances” the MEDC’s programs with other items …

Senator Says MEDC Should Stop Believing Its Own Press Releases

… senate hearing, Cassis told MEDC CEO Greg Main, "The press releases … Michael Shore, spokesman for the MEDC, didn't respond to an e-mail seeking comment. Cassis said the MEDC didn't seem too concerned that … legislation that would require the MEDC to state in its news releases … MIRS News researched the MEDC's job claims under Gov. Jennifer …

Pressure Mounting For MEDC Transparency

House Democrats call for scrutiny of corporate welfare programs; accountability for tax dollars

… allies — House Democrats. The MEDC is a government authority that … of Michigan. For years, the MEDC has been criticized for a lack … right to find out whether the MEDC is spending tax dollars wisely … that is supposed to make the MEDC more transparent. In fact, … provisions to recover the money the MEDC spends on poorly performing …

Cut Corporate Welfare Before Social Welfare to Fund Roads

Michigan debates spending MEDC or EITC money on transportation

… transfers $187 million from the MEDC's corporate welfare programs … plan, however, does not touch MEDC funding. Leaders in both bodies … point would be to embrace the MEDC cuts of the House plan. “Michigan … Center for Public Policy. “The MEDC consumes hundreds of millions … unlikely to budge, cutting MEDC subsidies might be another …

Commentary: 'Corporate Welfare' Hype Yields Few Economic Results

The companies promoted by the MEDC on Youtube are in financial trouble

… crony capitalism failures. The MEDC video on car battery assembler … CEO, David Vieau, praising the MEDC and former Gov. Jennifer Granholm … million government loan. The MEDC video on a film studio proposal … as high as $100 million. An MEDC video on converting the former … and thanks Gov. Granholm, the MEDC and local governments for their …

MEDC Still Using Questionable Benchmarks

'What they are about is trying to find press release opportunities for politicians'

… jobs that were reported by the MEDC were actually created. In April … reality. Despite that, the MEDC is using "jobs committed" on its 2012 MEDC MIScorecard Performance Summary … success. It is unclear why the MEDC would continue to use a benchmark … Michael Shore, spokesman for the MEDC, was asked how "jobs committed" …

MEDC Questioned About Its Transparency

Questions about how tax dollars spent could warrant new legislation

… Michigan budget. On June 13, 2011, MEDC sent him a document that was … the costs of supplies." The MEDC describes itself as "a public-private … the most recognized of the MEDC's responsibilities is Pure Michigan. … things going on in Michigan. The MEDC website also has a section … Genetski and others say the MEDC often doesn't fulfill that …

Detroit News Exposes MEDC Secrecy

… disclosable." The Mackinac Center has documented the lack of openness from the MEDC about how they spend taxpayer money with nearly 200 articles, including in a 2009 policy brief “MEGA, the MEDC and the Loss of Sunshine.”

What Happens When the Michigan Economic Development Corporation Ends?

State could save millions by stopping ineffective subsidies

… development policies. The MEDC is an “interlocal agency,” … economic development programs, the MEDC ought to go away. There is … quasi-state agency do it. The MEDC is not a third party entity … have an agreement with the MEDC to delineate each party’s responsibilities. … economic development programs. The MEDC gets additional income from …

The MEDC’s Pure Michigan Puffery: Part II

Reforms could make agency more credible

… percent in one year. If the MEDC (and Travel Michigan) ever … would the work of a reshaped MEDC look like? First, an independent … Legislature’s auditor general — not the MEDC itself — should be responsible … impact studies. Officials at the MEDC currently have too much incentive … (For more, see “Meet the New MEDC, Same as the Old MEDC.”) Second, …

The Michigan Economic Development Corporation: A Review and Analysis

… Economic Growth Authority — the MEDC administers this program. We … So every time you hear the MEDC say, “1,000 new jobs are coming … programs administered by the MEDC [are] succeeding as well. … can’t bring yourself to put the MEDC out of business, then it should … Legislature decides to keep the MEDC, even if it kept it at its …

MEDC's Priority: Defend Its Budget

When faced with criticism, it's discredit first, read the critique second

… and leisure industry. The MEDC's response has been to seek … articles in this series, the MEDC has granted several no-bid … provide evidence that the MEDC’s programs are not only unfair … contradicted claims by the MEDC and Longwoods that the campaign … according to emails from the MEDC obtained in response to a Freedom …

MEDC President: LaFaive Is Right

… fiscal policy director, that the MEDC should be more transparent. … that tracks the failure of the MEDC and its many programs, including … growing lack of transparency the MEDC has exhibited in the face of … hasn't succeeded in getting the MEDC abolished, it's winning its … the center's contention the MEDC should be required to release …

Corporate Subsidies Appear To Work Sometimes — Or Firm Was Coming Anyway

Firm got $130,000, not the $430,000 first offered, still built new plant

… list any repayments of the grant funds, either. An MEDC spokesman declined to provide additional information … defended the deal in a telephone interview. The MEDC’s assistance “was a success,” he said. “It helped … “This is actually a great success story. (The MEDC) has been really good to work with.” Some economists …

Failed Company Skipped On $2.1 Million State Loan, Wants More

Michigan corporate subsidy officials support extended benefits for firm’s successor

… Development Corporation. The MEDC, which runs the state’s business … Marquette-area employees in an email to MEDC officials in May 2018 that … RNFL to National Carbon, the MEDC documents show. MEDC spokesman Otie McKinley said … the first place, he said. MEDC “thinks they can pick winners …

State Corporate Welfare Agency Picks Winners That Turn Out To Be Losers

Program officials subsidize Cherry Growers, Inc., company goes bankrupt

… Traverse City. In 2012, the MEDC recommended that Cherry Growers … "profit-participation." The MEDC projected at the time that … then president and CEO of the MEDC, used a press release to announce … the “winner” picked by the MEDC has since closed and is in … otherwise. With each deal, the MEDC or MSF prepare a forecast of …

Lehman Cited in Dome Magazine

… Snyder, then an Ann Arbor businessman, was the MEDC’s volunteer chairman. The article notes it is “ironic” … ago. “BLM seems to have acknowledged what the old MEDC wouldn’t or couldn’t — a decade of picking business … is most welcome, especially compared to the old MEDC, which wouldn’t even acknowledge Michigan’s uncompetitive …

Bills Would Ban Keeping Taxpayer Handouts To Corporations Secret

A handful of companies are getting billions, but citizens are forbidden to know who or how much

… much the incentives were worth. For much of MEGA’s 15-year existence, the MEDC did disclose which companies were cashing in credits as well as the value … a $1.7 billion cap, according to The Detroit News. In February 2015, the MEDC valued General Motor’s remaining tax credits at $2.1 billion. According …

Taxpayer Backlash Coming Over Billions In Amazon Subsidies

But the rebellion against corporate handouts hasn’t reached Michigan

… company building a distribution center in Shelby Township. In June 2017, the MEDC approved a $5 million grant for Amazon for a distribution center in Romulus. The MEDC approved a $7.5 million business subsidy in December 2016 for another distribution …

MEDC: The Same Old Run Around On Jobs Numbers

… Granholm was in office, the MEDC dodged questions about the … researchers and even lawmakers, the MEDC typically responded by sending data … those seeking answers from the MEDC were, in essence, being told … brought some changes to the MEDC, which is a quasi-governmental … transparency for which the MEDC acquired a reputation under …

Does ‘True Success’ for Michigan Business Mean Government Handouts?

Step 1: Sen. Debbie Stabenow introduces you to state corporate welfare agency

… site MLive. MLive reports, “It began with U.S. Senator Debbie Stabenow” introducing the owner to the Michigan Economic Development Corporation. The MEDC then approved a $200,000 grant to the company, which was launched in 2016. ForTheRecord states: Michigan is indeed filled with small businesses that …

MEDC Programs Consistently Fall Short of Initial Claims

Michigan's 'corporate welfare' arm perpetually exaggerates its numbers

… investment, but the trend of failing to meet expectations exists instead. The MEDC oversees the 21st Century Jobs Fund. In a 2008 press release, then-Gov. … Jobs Fund programs. Other economic development programs overseen by the MEDC have not lived up to claims made by state officials. The Renewable Energy …

Politicians Want to Review State Agency that has 1 in 5 Jobs Track Record

… to favored businesses. Rep. Earl Poleski (R-Jackson) was asked about the MEDC and said, “I think we need to be looking at whether that model is working … far to get an answer. Michigan's auditor general issued a report on the MEDC’s 21st Century Jobs Fund program in September of 2013, finding only 19 percent …

Company Defaults on $300,000 From State For Project, Repays $45,827

MEDC had boasted grant proved ‘the success of our strategy’

… Southfield. In a contemporaneous report by Crain’s Detroit Business, then-MEDC CEO Michael Finney praised the grant to NEMO, and two other grants as well. … Southfield. The company did not respond to multiple requests for comment. MEDC spokesman Otie McKinley said, in response to an emailed request for explanation, …

A Plea for Skepticism about the MEDC: An Open Letter

Lawmakers should take a closer look at economic development programs

… exempt data in a way that make MEDC programs look more successful than they really are. The MEDC should not be allowed to hire … added.) In other words, the MEDC’s consultants eliminated from … sleight-of-hand exercise is not an MEDC one-off. The MEDC has hired consultants in the …

What Would it Mean to Unleash the MEDC?

Lawmakers should keep the state's administrators on a tight leash

… short-term thinking at its best, but it would be one way to unleash the MEDC. The state’s already doing some of that. Two programs passed last year … tested way to grow the economy and justify taxpayer costs. Unleashing the MEDC is not about creating a conducive business environment to foster broad-based …

Giving Taxpayer Dollars to Some Corporations A Lucrative Business For These Nonprofits

The MEDC, the state’s corporate welfare agency, has local partners

… total revenue of $7.14 million that year. Quintin L. Messer, the CEO of the Michigan Economic Development Corporation, collects $287,000 annually. The MEDC is the state government agency that cooperates with local corporate subsidy agencies by helping steer state tax revenue to projects in their own region. …

MEDC Rejects Development Bird-in-the-Hand

… economic development. But the MEDC ignores one economic policy … by 22 other states. If the MEDC were serious about job creation, … it is adopted. Since the MEDC’s creation, Michigan has lost … empirically shown that the MEDC’s chief development program, … in the state. During the MEDC’s lifetime its officials have …

MEDC Downplayed Pure Michigan Return On Investment Claims? Oh Really

Secretive numbers used in claims have headlined many tales told to reporters and lawmakers

… updated with a comment from the MEDC. David Lorenz is the Michigan … Michigan ads is used wisely. The MEDC recently ended its relationship … in 2010, Longwoods and the MEDC were claiming just an extra … catch: The company and the MEDC refuse to divulge the methods … Detroit Business article. The MEDC spokeswoman Michelle Grinnell …

A MEGA Loss of Sunshine

If you are having problems viewing this video, please use the alternate video player. The Policy Brief discussed in this video — "MEGA, the MEDC and the Loss of Sunshine" — is available here.

There Is No Good Reason the MEDC Should Exist

… and CEO (and current Chair of MEDC Executive Committee) of the … that exists (none from the MEDC) offers little evidence that … promises. Seen through this lens, MEDC operations make far more sense. … Here’s a taste: In this clip, MEDC Executive Committee member … Legislature should keep the MEDC and the Michigan Economic Growth …

MEDC’s Pure Michigan Puffery: Part I

Agency claims about success deserve more scrutiny

… Lorenz, the vice president of the MEDC arm in charge of the subsidies … benefits of Pure Michigan, the MEDC is seeking to justify not only … The latest product from the MEDC’s vendor, Longwoods International, … reports are then used by the MEDC as evidence of its program’s … the implausibility of the MEDC’s claim was actually provided …

Thirty-One MEDC Salaries Top $100K

… Information Act request, the MEDC has 31 employees making $100,000 or more. The MEDC has 351 positions. Greg Main, president and CEO of the MEDC, had the top salary, at $200,000. … salary, at $150,000. "The MEDC was structured to incorporate … and non-state funds," wrote MEDC Spokeswoman Bridget Beckman …

MEDC Fights for Its Political Life

… Economic Development Corporation (MEDC) is in self-preservation mode.  … favorably predisposed to the MEDC's questionable programs as is … present administration?  The MEDC is not taking a wait-and-see … political survival.  For instance, the MEDC recently released a brochure … "Ensure the Continuity of the MEDC" as its number-one objective.  …

Functions of the MEDC

… particularly the case with the MEDC, which has become less transparent … examining the inner workings of the MEDC. The screen shot in Graphic … supplies the money for various MEDC projects.[30] This budget provides … trying to better understand the MEDC. Additional information on … 2009 Michigan Strategic Fund (MEDC) Budget Source: Public Act …

Financing the MEDC

… general fund monies to the MEDC. The general fund portion of … $823,00016 has been budgeted for MEDC operations through "IDG," or … (discussed in detail later). The MEDC may have also been the recipient … for a conference held by the MEDC, for instance. The corporation … appropriated for use by the MEDC. The vast majority of this …

MEDC Untruths Reveal Political Nature of 'Jobs' Department

… coverage, which elicited two comments from MEDC officials that jumped out at this author … Livingston Daily Press & Argus asked an MEDC official about the study, this person … problem. There was no "report." What this MEDC official was referring to was a collection … pattern of dubious claims from the MEDC. Although the agency poses as an economic …

The 'M' in MEDC Should No Longer Stand For 'Mystery'

… agency will disclose. The MEDC hands out millions of dollars … other relevant factors, the MEDC should explain them. But the … late 2008 or early 2009, the MEDC did at least disclose how much … information. From that point on, the MEDC has only disclosed how much each … coincidentally, not long after this the MEDC inked deals with Ford, GM and …

Q&A With the MEDC: Verifying Jobs Resulting From Special Government Favors

State Reps call for greater transparency or elimination of program

… after that, in April 2013, the MEDC reported to the state legislature … Sept. 30, 2012 total. When the MEDC responded in July to questions, … issued that found that the MEDC had not been reporting on the … submitted four questions to MEDC, three of which were the same … new question. This time the MEDC responded.  Q: Could a company …

Mackinac Center Sues MEDC Over Pure Michigan FOIA

… Economic Development Corporation (MEDC) claims that the “Pure Michigan” … Center Legal Foundation sued the MEDC after a multi-year effort to … was signed affirming that the MEDC never posessed the requested … Economic Development Corporation (MEDC) has long claimed that the … Information Act (FOIA) request to the MEDC seeking information on the …

Don't Extend Granholm's 'Blown Away' Program

Demand accountability instead

… grants and loans in 2007? After six years, the MEDC still does not report how much taxpayer money was … much does the state own and what is it worth? The MEDC has not reported on whether there have been any … simply gives the political appointees who run the MEDC's parent agency, the Michigan Strategic Fund, discretion …

MEDC Response

… Recycling a $5.1 million tax incentive for a 280,000 square foot facility in Sterling Heights that was projected to generate 396 jobs. Michael Shore, MEDC spokesman, provided this response in an e-mail: Thanks for the opportunity to address your concerns regarding the Michigan Economic Growth Authority …

MEDC vs. Road Spending Poll Featured in Daily Caller

Two-thirds of voters support turning subsidy money over to roads

… by Mitchell Research & Communications, Inc. showing two-thirds of respondents preferred putting money currently spent on corporate subsidies through MEDC toward roads. The poll was featured in a June 17 article at the Daily Caller, which also referenced an earlier poll commissioned by the Mackinac Center …

State Loses 200,000 Jobs, MEDC Finds 2,185

Why tax cuts are better than corporate welfare

… similar figures are released by BLS every quarter. The magnitude of those MEDC job promises also is typical. What the contrasting figures starkly illustrate … Michigan's economy. That's 200,728 jobs needed vs. 2,185 jobs promised by the MEDC. If this is the best we have, we're in deep trouble. Thankfully, it isn't. …

Michigan House Wise to Shift Corporate Welfare Spending to Roads

Programs shown to be ineffective and wasteful

… Incentives” was a review and analysis of the academic literature on the subject of MEDC-type programs. The authors categorized and reviewed hundreds of other academic … conclusion from Brumm’s findings is that when a state department like the MEDC encourages corporate rent-seeking, it may actually limit a state’s growth …

Tax Cuts Beat Selective Favors in Economic Growth

Only broad changes will improve the state's economy

… is the unheralded business gains and losses that drive the economy. Across the state, businesses are constantly adding and shedding jobs. While the MEDC was announcing 4,420 jobs, Michigan gained 222,000 jobs and lost 187,000, according to the latest data. So even if the happy announcements were in …

MEDC Feeling the Heat for Corporate Welfare Deals Coming Home to Roost

$9 billion in special deals projected

… Economic Development Corporation (MEDC) as incentives for businesses … claiming the credits. “The MEDC made an interpretation of tax … Policy has been a critic of MEDC programs, and the MEGA tax … results. ~~~~~ See also: MEDC Boss Says Agency Changing; … There is No Good Reason the MEDC Should Exist Beer Website …

A History of Murkiness at the MEDC

Concerns over the omissions and reductions of information at MEGA are heightened by the MEDC's past track record in providing accurate and timely information. 

A History of Murkiness at the MEDC

Concerns over the omissions and reductions of information at MEGA are heightened by the MEDC's past track record in providing accurate and timely information.

Commentary: Meet the New MEDC, Same as the Old MEDC

… the scoop: In September, the MEDC issued a request for proposals … Michigan government (and/or MEDC) should spend to “be competitive … this, of course, is to use MEDC’s preferred tools of discriminatory … critique, and/or validate the MEDC’s method of defining an optimal … the answer could be “no.” The MEDC has little incentive to ask …

Other MEDC Programs

Issues similar to those seen in MEGA have appeared in other MEDC programs. Here we discuss two programs: one defunct; the other as high profile as MEGA itself.

Key Programs of the MEDC

… descriptions above suggest, the MEDC is a sprawling and complex … products and services that the MEDC provides, according to its Web site. Graphic 4: MEDC Products and Services Source: MEDC Web site. Even the basic task … various departments of the MEDC is difficult. While the basic …

MEDC vs. Kentucky

Michigan offers tax incentives worth five times the competition's

… in Saginaw. At the time, the MEDC stated that GlobalWatt was … pulled off the table before the MEDC offered its incentives. “My … Granholm administration and the MEDC is desperate for any good news … Michael LaFaive said. The MEDC knows their press releases … there were instances where the MEDC took largely cut-and-pasted …

State debates MEDC’s value

Job retention agency fights to keep its own

… $123.5 million proposed for the MEDC in the 2004 budget. As both … support and who question the MEDC’s value are backing cuts that … is scheduled to take up the MEDC budget this week. The Senate … million recommendation. The MEDC’s current-year general-fund … a little over half of the MEDC’s proposed budget is restricted, …

Lack of Transparency at MEDC, MEGA

… addressed this issue before, including in a policy brief titled "MEGA, the MEDC and the Loss of Sunshine." Other Center analysts have written about the … escaping," LaFaive told the newspapers. Recent problems with transparency at the MEDC include RASCO, Hangar42 and GlobalWatt.