Legislature Adds $50M for Michigan's Business Attraction Efforts

The Michigan Economic Development Corporation (MEDC) will be armed with $100 million for efforts to attract new businesses and help existing businesses grow in the coming year — an additional $50 million above Gov. Rick Snyder's request. Another $25 million was approved for a new innovation and entrepreneurship program.

Funding for the job creation initiatives comes partly from redirecting funds previously dedicated to the 21st Century Jobs Fund, which received $75 million last year. Lawmakers agreed with the governor's proposal to replace business tax credits with a new incentive program aimed at dedicating resources to helping existing Michigan businesses grow, known as economic gardening. MEDC also is slated to receive $25 million for tourism promotion and $25 million for a film incentive program.

An initiative aimed at stemming Michigan's brain drain was left out of the final budget. The governor had proposed $5 million to develop programs encouraging immigrants with advanced degrees to move to the state.

The budget reduces total aid to universities by 15 percent and 4 percent to community colleges, reports the Detroit Free Press. Universities are required to report some information to the state on stem cell research although there is no penalty for not doing so, the article states.

Gov. Snyder also signed into law a package of bills to reform the state's tax structure. This includes replacing the Michigan Business Tax (a 22 percent surcharge on gross receipts) with a 6 percent Corporate Income Tax. The bills are now Public Acts 38-45 and are available at: http://www.legislature.mi.gov.

The bills that make up the $46.5 billion FY12 spending plan include HB 4526, the General Government Omnibus Budget Bill and HB 4325, the Education Omnibus Budget Bill.