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Michigan is Not Alone in Budget Issues

There are often issues that we can consider as controversial or debatable. Dave Mielke presents one of these issues each week to give you “Something to Think About.” The topic for today is “Michigan is Not Alone.” In states across the country, corporate subsidy programs are coming under scrutiny from elected officials on both sides of the aisle because of the significant impact these initiatives are having on government’s ability to balance the books. On Wednesday last week, Governor Snyder slashed more than $100 million in state department spending to help plug the state’s budget gap, due largely to estimated corporate subsidies of $325 million this year that were previously promised. Do subsidies spur economic development? Are states keeping track and budgeting appropriately to account for these subsidies? What should states do, including Michigan, to deal with this emerging problem as state economies grow and corporations qualify for these incentives?

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