Michigan Votes Forum

Introduced in the Senate on April 20, 2006, to waive the requirement that the interest-free government loan to a particular rail facility operator (Georgia Pacific) be paid back within 10 years, which extends the loan for an additional 10 years. Also, to waive the loan installment payments in any year during which the amount rail traffic on the particular line falls below a level designated in the loan contract

The vote was 25 in favor, 12 opposed and 1 not voting

(Senate Roll Call 435 at Senate Journal 54)

Click here to view bill details.

This is yet another example of why state government should not be in the business of investing taxpayer money for "growth and development". Like the failed sugar beet factory investment, canals, railroads, shiplines, etc. etc. etc., This railroad was given an INTEREST ONLY loan to improve infrastructure. Even an arms-length fair market loan would be generous, but now taxpayer money is used to subsidize a failing railroad. 10 year loan, interest only is extremely generous. This bill allows an additional 10 years, plus an out that if revenue is bad, they don't have to pay back even the interest! Wait 10 years and we'll see someone propose waiving repayment of the principal. This is exactly the reason you don't want some uninvolved board to steal taxpayer money and dole it out to their friends in loans and investments that will go bad. Shades of the Michigan Strategic Investment Fund.

I couldn't have said it better!! I just wish "they" would actually listen!