Local Economic Development Funding Cut By House and Senate Sub-Committees

Posted on March 30, 2012 by smann

The House and Senate General Government Committees both passed their initial budgets out of committee, and both cut the funding dedicated for local economic development that was supposed to replace the former Brownfield and Historic and MEGA credits.

Governor Rick Snyder proposed to allocate $100 million in his budget. The Senate committee cut the funding from $100 million to $66 million (HB 5382).  The House committee cut the funding from $100 million to $90 million (SB 954). The dollars are listed in the Economic Gardening and Business Attraction lines of the bills, and go towards the newly passed Community Revitalization and Business Development programs. The bills are each still in the initial stage, as both will still need to go through their full Appropriations committees and pass in their own chamber then pass in the other chamber.

League members are highly encouraged to contact both their Senator and their Representative and ask them to return the funding to $100 million in both bills. With the Legislature on recess for two weeks and not meeting, this is a prime time to get them back in their district.

Tell legislators that they eliminated the Brownfield and Historic and MEGA credits and promised to replace those credits with this appropriation. HB 5382 and SB 954 significantly cut those new programs just one year after they were created.  The budget cuts will:

          cost our communities future jobs

          make revitalization of blighted buildings much more difficult

          leverage significantly less private development.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at [email protected].

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