Embattled Agency in Charge of Special Tax Favors Snaps at Critics

Michigan Capitol Confidential ^ | 5/26/2010 | Tom Gantert

[MichCapCon]

The state's flagship job creation agency made a plea to the media and legislators to stop "unwarranted criticism" against it and said attacks on the Michigan Economic Development Corporation will undermine the state's efforts to attract businesses.

The MEDC's open letter comes after some recent embarrassing disclosures, including a tax credit approved for a convicted embezzler and a state audit that found the MEDC awarded tax credits to companies for jobs that weren't created.

Last week, Michigan Capitol Confidential revealed that a $38 million MEDC tax credit program in Ann Arbor for Google had produced just 224 direct jobs during its first two years. This is well off the pace of 1,000 projected for the first five years when the credit was awarded.

"They are just not used to a spotlight being shone on them," said State Rep. Tom McMillin, R-Rochester Hills. "Now that it is, they are running underneath the rocks."

McMillin estimates that the MEDC gave out $150 million in tax credits erroneously after a report by the Auditor General stated that there was no follow up on company job projections that often fell short of required triggers to get tax credits. That report found that some companies that received tax credits didn't qualify for them.

[MichCapCon]

Later in the story:

"Although the MEDC open letter doesn't point out any specific critics, the Mackinac Center for Public Policy has been one of the most vocal critics of the MEDC's Michigan Economic Growth Authority tax program.

"'The only jobs our research might jeopardize are those at MEDC headquarters,' said Mackinac Center President Joe Lehman."

[Paladin2]

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