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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 …