The House General Government Sub-Committee, in HB 4274, cut the amount appropriated for Brownfields and Historic credits in half when they passed the bill. As has been previously reported, the Governor has called for the end of Brownfield and Historic and MEGA credits in addition to all other credits. In exchange, he has said that he dollars appropriated to go to these projects. He proposed $50 million, but said in the Detroit News that this isn’t enough. In spite of that, the House General Government Sub-Committee voted last week to cut the appriation for the Business Attraction and Economic Gardening Fund by 50% to $25 million.
The Business Attraction and Economic Gardening Fund is supposed to be used for the Brownfield, Historic, MEGA and other small tax credit/grant areas along with programs (undeveloped at this point) that would do the following:
-build environment where "second-stage" companies can grow
-support "growth" companies to create jobs - areas in technology, life sciences, advanced manufacturing, etc.
-Technical and marketing assistance to companies at "growth stage" to develop strategies for business expansion
-Creating environment for businesses to grow rather than "hunting" for businesses
-programmatic emphasis on competitive information, physical and quality of life infrastructure, and connections among and between businesses and other community assets such as higher ed, government programs, and business services providers.
The Senate sub-committee is now considering their version of the General Government budget.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
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