Senator Says State Agency Should Stop Believing Its Own Press Releases

Michigan Capitol Confidential ^ | 9/7/2010 | Tom Gantert

[MichCapCon]

A state senator says Michigan's economic development agency's inflated claims of job creation is costing it credibility and leading her to lose confidence in the program.

State Sen. Nancy Cassis, R-Novi, called out the Michigan Economic Development Corporation for its press release that boasted of new job creations that a state audit showed only occurred 28 percent of the time.

At a recent senate hearing, Cassis told MEDC CEO Greg Main, "The press releases are an absolute disconnect with reality."

Michael Shore, spokesman for the MEDC, didn't respond to an e-mail seeking comment.

Cassis said the MEDC didn't seem too concerned that their projections seldom come true. The senator said she's putting together legislation that would require the MEDC to state in its news releases the minimum number of jobs needed to qualify for a particular tax credit.

[MichCapCon]

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[MaggieCarta]

Jack McHugh, senior legislative analyst for the Mackinac Center for Public Policy,
"Economic development bureaucrats and politicians on both sides are people too, which means the 'saved or created' jobs they care about most are their own," McHugh wrote in an e-mail. "The emptiest file in the cabinet contains government agency press releases that say, 'Our programs don't work, the Legislature should shut us down.' "