Republicans are Done with the MEDC

Lansing, MI – Today, state Representative Steve Carra and Chair of the House Oversight Committee Jay DeBoyer officially called for the abolition of the Michigan Economic Development Corporation (MEDC). The legislation, which will be introduced by the representatives later today, would end state funding to the MEDC and prevent it from negotiating on behalf of the state of Michigan for future contracts. This development comes after state Senator Thomas Albert introduced a similar bill package in the State Senate.

Representative DeBoyer had this to say about using taxpayer dollars as an economic incentive:

According to the Mackinac Center for Public Policy, the MEDC has created less than 10 percent of the jobs it promised. Apart from its failures as an economic development agency, it has also been embroiled in scandal over allegations of favoritism and pay-to-play. The organization was responsible for administering the grant given to Fay Beydoun, an ally of Governor Gretchen Whitmer who used taxpayer money on a $4,500 coffee maker and a first-class flight to Europe.

Yesterday, the State Administrative Board, in a meeting lasting only four minutes, decided not to renew the contract of Michigan Strategic Fund (MSF) Chief Compliance Officer Kevin Francart after 12 years. The position is intended to be an independent watchdog that stops illegal and unethical behavior within the MEDC. Many questions regarding the behavior of MEDC remain unanswered, and as of Sunday, the job of keeping the MEDC in check will be unfilled.

“On every front – from its mission, to its ethics, to its oversight – the MEDC has been an abject failure,” said Gabe Butzke, a spokesperson for Michigan Forward Network. “Ending this organization is long overdue, and we’re glad that Republicans in the House and Senate are holding Gretchen Whitmer accountable for these failures.”