Today, State Rep. Steve Johnson introduced legislation to repeal the Michigan Strategic Fund Act.
The Michigan Strategic Fund (MSF) was established in 1984 for the purpose of promoting economic development across Michigan. Since then, the MSF’s role has changed and expanded in many ways beyond what the scope of a governmental agency should be, Johnson said. In the 2016-17 budget, $251 million overall was appropriated for MSF programs.
“Programs such as art and cultural grants as well as business and tourism attraction can be more efficiently run by private sector coalitions than by state government,” said Johnson, R-Wayland. “Repealing the Michigan Strategic Fund Act would free up money for projects such as road funding, or a well-deserved income tax reduction for Michigan residents.”
Earlier this week, the Michigan Strategic Fund Board allowed a southeast Michigan steel company to inherit a tax credit that was originally awarded to a different company. Johnson said this recent example clearly demonstrates why state programs such as the Michigan Strategic Fund should not be involved in picking winners and losers through the use of taxpayer-funded credits and incentives.
House Bill 4544 has been referred to the House Tax Policy Committee for further consideration.