The big story on the state budget this year is about the hit it has taken from behind. In the current fiscal year businesses have claimed $681 million in tax credits. The blow to the budget for the upcoming fiscal is expected to be even greater, at $807 million. Those credits were doled out in previous years through the Michigan Economic Development Corps (MEDC), which is the state’s corporate welfare arm.
Gov. Rick Snyder and the legislature are struggling with the situation. Budget-trimming is usually a healthy practice; but being forced to make budget cuts to pay for hand-outs to businesses and corporations is something else entirely. What’s worse, it could provide officials with an excuse to push for tax increases.