In a recently released report by the Corporate Research Project of Good Jobs First, a DC-based national policy resource center, Michigan received an “F” grade for transparency when it comes to releasing information about the financial incentives given to corporations in the name of economic development.
Good Jobs First evaluated the quality and quantity of state government online information about economic development subsidies and rated state web sites on ease of searching, level of detail, scope of coverage and currency of data. Michigan tied with Kansas for 36th place.
Economic development subsidies are controversial, the report stated, because money sometimes goes to companies that don’t need it and companies may fail to create good jobs. Corporate subsidies may also create a competitive disadvantage for existing companies and budget shortfalls for local units of government that result in cuts, often to education, the report stated.
Good Jobs First recommends that states disclose information about company track records on environmental, workplace and consumer protection issues as well as information about the outcomes when companies are granted subsidies.