By Elena Durnbaugh
Assistant Editor
Posted: May 29, 2024 8:54 PM

MACKINAC ISLAND – Some House Democrats are ready to wrap their arms around a new approach to economic development, and they're hoping to move quickly on a proposal that would steer funds toward projects for the next decade.

"We've needed a wholistic approach," said Rep. Jason Hoskins (D-Southfield), chair of the House Economic Development and Small Business Committee. "This was the one thing that everyone was saying that we needed … a consistent, long-term economic development strategy."

Hoskins, along with Rep. Jason Morgan (D-Ann Arbor) and other House Dems announced a new economic development bill package, set to be introduced Thursday, which will make historic investments in mass transit, affordable housing and community revitalization.

"It's a long-term strategy, which is something that we have not had in quite a while here in Michigan," Morgan said. "This, in my mind, pulls together all of the things that have been shared by the population commission and the Growing Michigan Together Council and what we're hearing from economic development folks, and resident and transit providers throughout our state."

Without raising taxes, the bills would use $600 million annually in dedicated Corporate Income Tax revenue during the next 10 years for business attraction, transit, housing and community revitalization. The state's current shift of CIT revenue to economic development fund is set to sunset in 2025.

The latest proposal would split funding differently, with$250 million to attract employers and create jobs through traditional economic development incentives, $200 million for transit and mobility projects and $100 million to the Housing and Community Development Fund. The bills would also dedicate $50 million per year to the revitalization and placemaking fund program.

Currently, the Strategic Outreach and Attraction Reserve fund can receive up to $500 million for traditional business incentives.

"This plan really is the whole package where we do it all in a comprehensive and cohesive way," Morgan said.

The legislation would work alongside existing economic development incentives, lawmakers said.

"It's all adding up to a bigger economic development strategy," Hoskins said. "It's going to help Michigan move forward and really be a leader in business."

Morgan said this plan has the ability to address not just economic growth but population growth.

"I feel like a broken record at this point with how much I've been saying that young people want transit, and they need housing," he said.

Although the bill package is new, Morgan said it's the culmination of the last year of conversations around economic development.

"What I hope will happen is a lot of robust conversation over the next few weeks to see if we can make something happen," he said. "It is a large plan, but it's big because it will have a huge impact, and it's also something that really does bring everyone together on economic development."

House Speaker Joe Tate said there was an appetite for this kind of plan.

"There's an attraction to it," he said. "It's a continuation of the work that we've been doing. We know that we have these classic tools for economic development, but what are the complimentary pieces?"

Tate said Michigan needed a "both, and" approach to economic development.

"You've got to be able to do both," he said. "You've got to be able to ride both horses at the same time."

Whitmer also expressed optimism about the plan, saying it was worth a serious look.

"There is a genuine attempt to solve a number of problems going back in our state for a long time," she said. "It's a combination of a number of needs that we have … We're still diving in and looking at it, but I would like to see the Legislature put together a real solution."

The Senate passed a similar proposal halving the funds that could move through SOAR. At the time, Whitmer said she was hopeful for more dialogue on the concept.

Hoskins said he plans to have hearings on this proposal in June, and he still hopes to move as many of the other economic development proposals currently before the House as possible.

"We are winding down, and I am very aware that we are winding down," he said. "I'm trying to get the votes out."