An October 2010 Auditor General report found that the MEDC did not follow up on what the state gets for its money.A June 2011 Brownfield Redevelopment Financing Program audit found that the managers did not collect the appropriate information from participants nor submit an annual report to the Legislature: "We could not conclude on the effectiveness of the because of a lack of available performance information for assessing effectiveness." The MEDC noted that it was the Treasury Department that did not collect the appropriate information.A January 2013 Renaissance Zone program audit found that the MEDC doesn't follow-up on what the state gets for its money: "We concluded that the MEDC's efforts to evaluate the impact on creating new jobs, retaining jobs and stimulating capital investment within the state were not effective.".had not been reporting on the actual jobs created by companies in some of its programs, nor verifed company claims about their job creation.īut this is not uncommon for select subsidy programs.
The most recent report in September said: "We determined that the completed grants, excluding the bankrupt company (A123), met only 19% of the original jobs projection." It also found that the Michigan Economic Development Corp. A look at past reports shows that Michigan programs administering select subsidies have continually had problems finding out how many jobs are at businesses supported by taxpayer money. The fund oversees several programs that give grants and loans to certain businesses in Michigan, including high-profile failures like the battery-maker A123 Systems, and the biofuels company Mascoma Corp.īut perhaps the media and politicians should not have been surprised. The program is the 21 st Century Jobs Fund, which is administered by the Michigan Strategic Fund. The state subsidy program reported to the Legislature that 75 percent of projected jobs came to be, but the Auditor General report says that, at most, only 19 percent of the original jobs projected came to fruition. It became prominent state news last week when a performance audit of state subsidy program showed overstated job creation.
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