House Republicans join call to end the MEDC

Republican state lawmakers in Michigan are trying to get rid of the Michigan Economic Development Corporation, or MEDC.
 
The MEDC is a quasi-governmental agency that helps oversee the state’s business outreach efforts. That includes grants and incentives designed to make companies choose the state as a home for their new projects.
 
State Representative Jay DeBoyer (R-Clay) co-sponsors the package. He said the state would be better off cutting regulations.
 
“To believe that we can take taxpayers’ dollars, bribe companies to come here, that that is a long-term solution is a fallacy. Because if they will come here for a check, they will leave here for a check,” DeBoyer said during a press conference Wednesday.
 
The House bills are expected to be introduced this week. Meanwhile, in the state Senate, Senator Thomas Albert (R-Lowell) introduced his own 53-bill plan for getting rid of the MEDC last week.
 
Both efforts come as criticisms of the agency snowball on both sides of the political aisle.
 
Money awarded to businesses in recent years has failed to bring in as many jobs as promised. And Michigan’s attorney general is investigating a $20 million grant the agency oversaw.
 
While Albert’s package is unlikely to get anywhere in the Democratic-controlled state Senate, it’s uncertain if DeBoyer’s plan will fare any better in the Republican-controlled state House of Representatives.
 
Lawmakers on both sides of the aisle are working with Governor Gretchen Whitmer on revamping the state’s economic development programs after significantly gutting them in the most recent budget.
 
Governor Whitmer herself has criticized calls to end Michigan’s incentives.
 
Stacey LaRouche is Whitmer’s spokesperson. In a written response, LaRouche argued the MEDC is accomplishing its mission.
 
“At a time when Michigan is landing record job investments … we should keep our foot on the gas, not throw everything into reverse. The Republican path would put a ‘closed for business’ sign at Michigan’s border with Ohio and Indiana, killing good-paying jobs and shutter small businesses across the state,” LaRouche said, adding that the bills, “are dead on arrival.”
 
State Representative Steve Carra (R-Three Rivers), who also co-sponsors the bill package and chairs the House Oversight Subcommittee on Corporate Subsidies and State Investments, said the state is already not competing.
 
“I think that’s close to what we’re doing when we have high tax rates for our small businesses and the people of Michigan. That’s very close to what we’re doing with this burdensome regulatory environment that we have and then we give these exemptions and these carveouts and these special deals to the politically connected,” Carra said.
 
Despite the criticisms, supporters of Michigan’s economic outreach efforts say they are seeing results.  
 
Recent press releases from Whitmer’s office say the MEDC helped bring in 167 new jobs for a manufacturing plant in Genessee County, 107 jobs for a medical technology company in Oakland County, and significant investment for a new data center project planned in Washtenaw County.
 
In an emailed statement, MEDC spokesperson Danielle Emerson laid out more numbers.
 
“During FY25, the MEDC's programs and services trained and placed more than 5,950 workers and more than 1,480 interns in good-paying jobs; helped more than 2,000 new businesses start up; and helped small businesses secure roughly $2.77 billion in new revenue. Our (Michigan Business Development Program) has a more than 80% success rate, as touted by economists, and our Small Business Support Hubs have been lauded for helping everyday citizens access resources to start a business, minimize supply chain cost through peer-to-peer networking and local contracts, and create solutions in real time all at little-to-no-cost to them - all while keeping business dollars here in Michigan,” Emerson’s statement read.