Tuesday, September 02, 2003
Michigan's $1.4 billion tax credit program to spur economic development is both up for renewal and under fire.
Peter Fisher at the University of Iowa, puts it bluntly: ""It's an expensive way for a state to bring about a very modest increase in job creation...If most of the credits go to firms that would have located there anyway, which I suspect is the case, then you've blown a lot of money for nothing."
But the governor is afraid to let go. "...We have to compete with other states around us and all over the country. If you're not offering any package to come here, why would companies choose to move here?"
That's lame thinking on the part of the governor. Over the long term, Michigan would be better off terminating the program and increasing investments in higher education.
In total, the state invests $2.3 billion in higher education. Eliminating the tax break could significantly boost state support for the real engine for economic development...the state's colleges and universities.
Here's a review of the program from The Detroit News. Read more.
posted by Ed Morrison |
links
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
If you are using a news reader, here is the link to syndicate this site:
Here's the link if you are a bloglines subscriber:
Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Michigan's tax credit program is under fire
