Monday

March 31, 2008

State Senator Tupac A. Hunter (D-Detroit)
State Senator Tupac A. Hunter (D-Detroit) represents the 5th District which comprises northwest Detroit (in part), Dearborn Heights, and Inkster.  He serves as the Assistant Democratic Leader and is a member of the Commerce and Tourism Committee.

New Economic Development Programs, Incentives Can Energize Michigan Communities

As a member of the Senate, it is my privilege to serve on the Commerce and Tourism Committee, which is charged with finding ways to stimulate business investment and job growth in our state.  Serving on this committee has only helped strengthen my desire to energize Michigan’s communities as a means of sparking economic growth for our state.

Young citizens today want to belong to a community—a safe and familiar place where people can live, work and play within a convenient geographic area.  Communities offer individuals and families a place where they can invest in themselves, physically, as well as socially.  They also give businesses a home where they can invest in the economy and create jobs.

While the role of the Downtown Development Authority (DDA) has always been to help attract businesses to their communities, we on the Commerce and Tourism Committee wanted to take that one step further.  That was one of the motivations behind Senate Bill 972, a bill I introduced that would allow DDA boards to create, operate, and fund loan programs for building improvements in downtown districts.  These loans would be used to make buildings more marketable for sale or lease.  The DDA board could then make loans to businesses with interest at market rate or below, as determined by the board.

We know that vibrant and viable downtown districts are a critical component of healthy communities.  Attractive and accessible downtown businesses will draw area residents, provide them with necessary services, and create a sense of community with their client base.  These businesses will then become an asset when individuals and families are making decisions on where to live.  And the more people that take up residence, the more the businesses will thrive, which is good news for the whole state.

This legislation recently passed the Senate with overwhelming bipartisan support, and is expected to receive prompt attention in the House.

Another bill that I recently introduced is currently working its way through the committee process, and could be up for a floor vote in the very near future.  Senate Bill 1190 is part of a bipartisan package to amend the Michigan Economic Growth Authority (MEGA), with the goal of creating thousands of new jobs within Michigan’s high-technology and tourism industries.  During a recent meeting of the Commerce and Tourism Committee, MEDC officials called the package “the first major rewrite of the MEGA initiative since it was created.”

My legislation will allow a qualified business to write off 200% of not only their payroll costs, but also their health care costs against their business tax liability for seven years.  The following four years of the seven-year life of the MEGA credit would allow a 100% credit for payroll and health care costs.

This is extremely important, as rising health care costs have been contributing to job loss across our state and the country.  We need to attack the root causes of unemployment in our state, including high care costs.  This bill will not only increase employment, but also encourage more businesses to offer insurance for all of those new hires.

By giving downtowns the tools they need to make local improvements, and offering businesses incentives to invest in high tech jobs, we will be helping to create the type of vibrant communities that are capable of driving economic growth for a generation.

Check back tomorrow to hear from State Senator Ray Basham (D-Taylor).