Michigan House Republicans are proposing bills to limit the state’s programs that subsidize select businesses.

The bills would require that money allocated to failed deals go back into the state’s general fund, instead of remaining available to make more deals. The legislation would penalize companies that lose jobs after getting state money. It would require companies that receive state assistance to pay salary minimums. These bills would also give legislators a bigger say in whether deals move forward.

It’s good to see that some lawmakers express skepticism about the state’s efforts to spur growth by handing out big checks to big companies. Collecting taxes from everyone to give money to select companies is ineffective at creating jobs, unfair to businesses that don’t get special assistance, and expensive to taxpayers.

The bills do not prevent the state from handing out money to select businesses. Plenty of elected officials, including the governor, are convinced they need to make deals to attract companies. And there are other political reasons why elected officials prefer favoritism.

Dealmaking makes political sense even if the deals do not make economic sense. Part of this is because officials get to promote their announcements but hide the news when deals later fail to live up to expectations. The state’s business subsidy programs deserve extra accountability and transparency, and the proposed limits offered by these bills would help.

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