Legislation watch
2005 Senate Bill 488: Borrow $2 billion for “competitive edge technology” spending
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- Introduced by Sen. Mark Schauer (D) on May 10, 2005, to authorize $2 billion in government borrowing (bonds) for a “Jobs for Michigan Fund,” which would make grants, loans or equity purchases in public entities and private businesses engaged in basic research, development and commercialization of “competitive edge technologies,” including life sciences; advanced automotive, manufacturing, and materials technology; alternative energy technology; homeland security and defense technology; and "electronic device technology." The Michigan Economic Development Corporation (MEDC) would disburse the borrowed money, with advice and review from a steering committee composed of representatives of the various organizations likely to receive the money. To evaluate requests for the borrowed money MEDC would engage an "independent job creation expert” with the “appropriate expertise to conduct an independent, unbiased, objective, and competitive evaluation” of the requests. Approximately $300 million of the borrowed money would be used to buy shares in private companies, $750 million for loans, and $950 million for grants. (Senate Joint Resolution C would repeal an 1851 prohibition on such share purchases by the state.) This measure was proposed by Gov. Jennifer Granholm in her 2005 State of the State address.
- Referred to the Senate Appropriations Committee on May 10, 2005.
Comments
1) Don't even go there. by MCP-001 on May 12, 2005"(T)he state's not good at picking winners and losers. We recognize that." - Governor Jennifer Granholm.
http://www.lsj.com/apps/pbcs.dll/article?AID=/20050412/COLUMNISTS07/504120330/1014/columnists07
Please tell me why they are still considering wasting out time and money, yet again?
State Government can't get citizens to fall for a tax increase. Now, they try to get around it by having the state to go into debt, which only postpones the pain and will need to be repaid by our children.
Stop abusing our children! Don't saddle them with a massive debt burden so that you can continue to overspend irresponsibly. Your desire to "invest" in stocks using our tax money is bad enough. Don't compound the problem by borrowing the money first.
State government is horrible at picking "the right company" to invest in. The opportunity for graft, corruption, misuse, waste and loss is practically guaranteed. If this bill and the constitutional amendment needed to make it possible actually occur, then I predict this money will be gone in twenty years, the companies who benefited by it will be gone, and my kids will have to be taxed to pay it back.
I won't enjoy saying, "I told you so" like I did for the Sugar Beet Processor "investment".
Introduced in the Senate on May 10, 2005
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