South Michigan News

A little sunshine and transparency in government can go a long way toward generating public trust and effective results.

The Michigan State Legislature has a number of bills that have been sponsored by a bipartisan group designed to improve transparency in the way the state conducts its economic development programs the Mackinac Center for Public Policy reported. The state has received some solid marks in some areas but in others, there is room for improvement. A number of proposed bills could resolve those issues. The Center reported the state subsidy programs have been ineffective in producing desired results. In addition, the subsidies are unfair to businesses that don’t receive them and expensive to the taxpayer, yet lawmakers are hesitant to do away with the programs.

While taxpayers have the tools to find out what funding has been offered to companies, transparency could be improved at the onset of awarding government monies. The Mackinac Center reported lawmakers could let the public know who is going to get assistance before the deal is approved in order to provide for public comments and let board members know what issues there may be. This type of transparency is not uncommon in other states with Delaware serving as an example. In that state, the information is posted in regular board meeting notices.

The state also has a mixed record in making the public aware what happens with the subsidy once approved. Administrators report what companies collect from taxpayers better in the new programs than with the older ones. In those programs, companies receive their payments through refundable tax credit.

The Center reported tax credit details were public information until 2009 when the legislature locked that information up. Reversing that decision would be an improvement considering the amount of taxpayer money involved. It is expected companies will collect $5.3 billion from taxpayers. At least 18 other states post the information on where the money goes in reports and state webpages. Michigan is not among those.

Transparency could provide more accountability. Deals don’t always work like they are supposed to. Jobs may not be created, or some other aspect of the agreement might fall through. The Center reported money could go back to lawmakers rather than going back to administrators. Funding could be repurposed for more pressing priorities. But is all needs to start with allowing the public access to the information. While it is uncertain if the Legislature will vote on the bills this session, it would be worth its while to keep them under consideration for next year.