Mackinac Center for Public Policy Director of Fiscal Policy James Hohman published an op-ed on the nonprofit's website opining that more money should be spent on fixing Michigan's roads as opposed to prolonging any existing business projects that are currently being discussed.
Hohman explained in his piece that in 2017, state legislators compromised for a $200 million limit for a business subsidy program and agreed to stop awarding new deals next year. Deals have already been established or are being planned with a Pfizer pharmaceutical plant located in Kalamazoo, a Troy-based autonomous vehicle software company, Fiat-Chrysler, and an Ann Arbor semiconductor research and development operation.
With the contract for the business deals set to expire in 2020, Hohman believes lawmakers will be looking to extend the deal. The problem is that if all the current deals go through, this leaves lawmakers with only $40 million to spend on fixing priority concerns, such as improving the roads, he writes.
“Keeping the roads in good order is a practical responsibility of government, and it generates economic activity,” Hohman wrote.
Hohman considers the subsidy program no longer important and something that money should no longer be spent on.
“The program was a response to a situation that is no longer relevant,” Hohman wrote. “Worse, problems of this sort are ineffective, meaning there are better uses for the money.”
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