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Lansing split over revival of Good Jobs for Michigan

Date:

(The Center Square) – House Republican Leader Matt Hall, R-Richland Township, called on Michigan Gov. Gretchen Whitmer to abandon her pursuit of the Good Jobs for Michigan program.

The program offered income tax credit withheld from employees to any jobs created under an agreement with the state.

The House Economic Development and Small Business Committee took up House Bills 54135415 that aims to revive the lapsed Good Jobs for Michigan program that ended in 2019.

Whitmer said in her January address: “Finally, let’s keep bringing supply chains and jobs back home to Michigan by shoring up our economic development toolkit so anyone can ‘make it’ in Michigan. Together, we can build a brighter future and help every Michigander have a classic Michigan story.”

Program eligibility requires the program must create new jobs and the company can’t move employees from within the state, the project must be economically sound and benefit the state, the project wouldn’t happen without the credit.

Casinos, sports arenas and retail aren’t eligible.

“As Michigan struggles to grow, the governor just wants to slap a Band-Aid on our economy while ignoring the deep-seated problems that Democrat policies have exacerbated,” Hall said in a statement. “Our state needs to strengthen our economy by lowering our taxes and fostering a fair, reasonable regulatory environment that makes sense for Michigan workers and small businesses.”

The Michigan GOP says Whitmer’s proposed 2025 budget is unsustainable.

“The governor wants to suppress the harmful economic symptoms by giving handouts to a few corporations, but instead, Michigan should craft a bold, coordinated economic growth strategy that heals the underlying economic sickness,” Hall said.

In the 2025 budget, Whitmer has called for four taxpayer-funded jobs programs, including a research and development tax credit, Renaissance Zones and a $60 million Innovation Fund.

Separately, Whitmer called for a $25 million fund for up to a $2,500 subsidy for union-made EVs.

Whitmer says the subsidies will return manufacturing from overseas as Chinese electric vehicle maker BYD overshadows Motor City’s EV push.

However, Ford Motor Co.’s EV plant in Marshall has already cut 800 proposed jobs and output amid weak consumer demand for EVs.

The Mackinac Center for Public Policy says state data shows there have been no verified jobs created from the six companies that received a handout. The deals offered a total of $200 million to those companies, including $26 million to Ford and $105 million to Stellantis.

“Gov. Whitmer’s proposed job program has been a jobless program,” MCP Director of Fiscal Policy James Hohman said in a statement. “Giving handouts to select companies is not an effective way to improve businesses in the state. Lawmakers should stop chasing headlines and instead look at broad-based reforms that have been proven to improve the state economy.”

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