DOCSLIB.ORG

MEGA: a Retrospective Assessment

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
MEGA: a Retrospective Assessment April 2005 A Mackinac Center Report MEGA: A Retrospective Assessment Michael D. LaFaive and Michael Hicks, Ph.D. A study of the Michigan Economic Growth Authority, the State of Michigan’s primary tax incentive program The Mackinac Center for Public Policy is a nonpartisan research and educa- tional institute devoted to improving the quality of life for all Michigan citizens by promoting sound solutions to state and local policy questions. The Mackinac Center assists policy makers, scholars, business people, the media, and the public by providing objective analysis of Michigan issues. The goal of all Center reports, commentaries, and educational programs is to equip Michigan citizens and other decision makers to better evaluate policy options. The Mackinac Center for Public Policy is broadening the debate on issues that have for many years been dominated by the belief that government intervention should be the standard solution. Center publications and programs, in contrast, offer an integrated and comprehensive approach that considers: All Institutions. The Center examines the important role of voluntary associations, business, community and family, as well as government. All People. Mackinac Center research recognizes the diversity of Michigan citizens and treats them as individuals with unique backgrounds, circumstances, and goals. All Disciplines. Center research incorporates the best understanding of economics, science, law, psychology, history, and morality, moving beyond mechanical cost/benefit analysis. All Times. Center research evaluates long-term consequences, not simply short-term impact. Committed to its independence, the Mackinac Center for Public Policy neither seeks nor accepts any government funding. It enjoys the support of foundations, individuals, and businesses who share a concern for Michiganʼs future and recognize the important role of sound ideas. The Center is a nonprofit, tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. For more information on programs and publications of the Mackinac Center for Public Policy, please contact: Mackinac Center for Public Policy 140 West Main Street P.O. Box 568 Midland, Michigan 48640 (989) 631-0900 • Fax (989) 631-0964 www.mackinac.org • [email protected] MEGA: A Retrospective Assessment by Michael D. LaFaive and Michael J. Hicks, Ph.D. __________________________ Copyright © 2005 by the Mackinac Center for Public Policy, Midland, Michigan Permission to reprint in whole or in part is hereby granted, provided that the Mackinac Center for Public Policy is properly cited. ISBN: 1-890624-43-8 S2005-02 Guarantee of Quality Scholarship The Mackinac Center for Public Policy is committed to delivering the highest quality and most reliable research on Michigan issues. The Center guarantees that all original factual data are true and correct and that information attributed to other sources is accurately represented. The Center encourages rigorous critique of its research. If the accuracy of any material fact or reference to an independent source is questioned and brought to the Center’s attention with supporting evidence, the Center will respond in writing. If an error exists, it will be noted in an errata sheet that will accompany all subsequent distribution of the publication, which constitutes the complete and final remedy under this guarantee. MEGA: A Retrospective Assessment The Mackinac Center for Public Policy MEGA: A Retrospective Assessment by Michael D. LaFaive and Michael J. Hicks, Ph.D. Table of Contents Executive Summary.....................................................................................1 An Overview of the Michigan Economic Growth Authority ...........................1 MEGA’s Track Record.....................................................................................1 Direct Jobs .......................................................................................................... 2 Indirect Jobs........................................................................................................ 3 An Econometric Evaluation of MEGA’s Economic Impact ............................3 Potential Explanations for MEGA’s Lack of Economic Impact ......................4 Political and Business Incentives Can Interfere With MEGA’s Policy Goals .... 4 The Inherent Complexity of the Marketplace...................................................... 5 Assumptions in the “REMI” Modeling Employed by MEGA ............................. 5 The Problem of Ensuring MEGA Credits Are Necessary ................................... 6 Policy Recommendations .................................................................................6 End the MEGA Program..................................................................................... 6 Other Reforms..................................................................................................... 6 Introduction..................................................................................................9 MEGA: Origin and Evolution....................................................................9 History ..............................................................................................................9 Structure and Procedure..................................................................................10 MEGA LAW....................................................................................................... 13 Public Act 144 of 2000...................................................................................13 Public Act 428 of 2000...................................................................................13 Public Act 248 of 2003...................................................................................13 Public Act 81 of 2004.....................................................................................14 Public Act 398 of 2004...................................................................................14 MEGA’s Track Record.............................................................................15 The Scope of MEGA Packages ......................................................................15 MEGA Job Projections and Subsequent Results............................................21 Assumptions ...................................................................................................... 21 MEGA Job and Project Performance ............................................................... 22 April 2005 i The Mackinac Center for Public Policy MEGA: A Retrospective Assessment Case Studies ......................................................................................................26 Three Major News Events .........................................................................26 Kmart Corp. ..............................................................................................27 Covisint, Inc. .............................................................................................28 Other Examples.........................................................................................28 Michigan’s Economic Climate Under MEGA...................................................29 Summary of Findings.........................................................................................30 Econometric Evaluation of MEGA’s Effectiveness................................32 Past Studies of Targeted Tax Incentives.........................................................32 Theoretical Considerations in the Model........................................................34 Modeling the Economic Impacts of MEGA...................................................35 Results of the Estimation................................................................................36 County-Level Results.........................................................................................36 State-Level Results ............................................................................................37 Business-Sector Results: Manufacturing, Warehousing and Construction.......37 Summary of Findings .....................................................................................38 MEGA: Explanations ................................................................................39 Technical Considerations in the Modeling Used by MEGA..........................40 Direct Cost of State Tax Relief ..........................................................................40 The Local Incentives in MEGA Deals Are Not Directly Modeled.....................41 The Cost of New State and Local Government Services ...................................43 Differences Between High- and Low-Unemployment Areas .............................43 Failed Employment and Wage Assumptions .....................................................44 The Problem of Ensuring MEGA Credits Are Necessary..............................44 Walden Book Company Inc. ..............................................................................45 Compuware Corp. .............................................................................................45 Owens Corning..................................................................................................46 Complex Human Factors...................................................................................46 A Lack of Data on Rejected Firms ....................................................................46 Survey Data .......................................................................................................47
Load more

Recommended publications
  • City of Madison Heights 300 W. 13 Mile Road Regular Council Meeting Agenda September 14, 2020 7:30 P.M
    CITY OF MADISON HEIGHTS 300 W. 13 MILE ROAD REGULAR COUNCIL MEETING AGENDA SEPTEMBER 14, 2020 7:30 P.M. Notice is hereby given that due to precautions being taken to mitigate the spread of the Coronavirus (COVID-19) and protect the public health, a Regular Meeting of the Madison Heights City Council will be held electronically from the City Council Chambers of the Municipal Building at 300 W. 13 Mile Road, Madison Heights, Oakland County, Michigan 48071 on Monday, September 14, 2020, at 7:30 p.m. The meeting is being held in compliance with Governor’s Michigan Executive Order No. 2020-154 effective July 17, 2020 and in effect during any state of emergency or state of disaster arising out of the COVID-19 pandemic, and for 28 days thereafter. Members of the public wishing to participate in the meeting through electronic means will have access to the meeting through the following methods: Video Conferencing: Directions: 1. Enter the web address into your browser - https://us02web.zoom.us/j/84025348468 2. Tap the JOIN icon 3. Enter the meeting ID: 840 2534 8468 OR Telephone Option: Directions: Dial: +19292056099,,84025348468# OR Email Option: Send your public comment through email at: [email protected] and your comment will be read at the meeting. Rules of Procedure: Any member of the public wishing to comment during the Meeting Open to the Public or on any Agenda item will be allowed to do so remotely by electronic or telephonic means set forth above. In order to maintain decorum, the Mayor and/or designee will determine the order of speakers and the appropriate time frame for which comments are allowed.
    [Show full text]
  • Mass Transit
    Gear boxes and couplings Heavy-duty braking systems Subway cars, commuter cars or trolley cars. Rockwell Our wedge, cam, disc or spring brakes, actuated by air has the capability to supply the type of gear box or or hydraulic pressure, will stop most any vehicle you coupling you specify. Or, we can custom design "special start. Add our Skid-Trol® wheel anti-lock system and drives" for unique vehicle applications. you have a single source for most all heavy-duty stopping requirements. line From Concept to Reality That's what cities like San Francisco, Boston, New York, Chicago and Washington, the Dallas/Fort Worth and Seattle/Tacoma airports, Disney World, the Toronto Zoo and others have done. We can put our 50 years' mass transit experience, the resources of the world's largest independent Automotive Technical Center, and a broad line of components for rail cars, buses and guideway vehicles to work for you, too. Contact Mass Transit Sales, Automotive Operations, Rockwell International, 2135 W. Maple Road, Troy, MI 48084. Rail trucks The broadest line of axles We make complete rail trucks or components for The mass transit industry uses our steering, driving locomotives, freight cars, subway cars, and commuter and trailer axles — single and tandem — in a variety of cars. Or if you have a special rail vehicle in mind, we'll configurations for highway and guideway vehicles. Plus help you make it go. custom design axles for virtually every mass transpor- tation application. Rockwell International ...where science gets down to business ALMEX Passenger self service. This is one wayof looking at it.
    [Show full text]
  • 2019 Progress Report of the Parties
    2019 PROGRESS REPORT OF THE PARTIES Pursuant to the 2012 Canada-United States Great Lakes Water Quality Agreement U.S. spelling is used throughout this report except when referring to Canadian titles. Units are provided in metric or U.S. customary units for activities occurring in Canada or the United States, respectively. Discussions of funding levels or costs in dollars is provided using Canadian dollars for activities occurring in Canada and U.S. dollars for activities occurring in the United States. Cat. No.: En164-53/2-2019E-PDF ISBN: 978-0-660-30888-3 II 2019 PROGESS REPORT OF THE PARTIES Table of Contents Executive Summary ��������������������������������������������������������������������������������������������������������������������������� iv Why the Great Lakes are Important ����������������������������������������������������������������������������������������������������2 Articles �����������������������������������������������������������������������������������������������������������������������������������������������4 Areas of Concern Annex ������������������������������������������������������������������������������������������������������������������� 10 Lakewide Management Annex ���������������������������������������������������������������������������������������������������������� 23 Chemicals of Mutual Concern Annex ������������������������������������������������������������������������������������������������ 38 Nutrients Annex �������������������������������������������������������������������������������������������������������������������������������
    [Show full text]
  • Michigan's Copper Country" Lets You Experience the Require the Efforts of Many People with Different Excitement of the Discovery and Development of the Backgrounds
    Michigan’s Copper Country Ellis W. Courter Contribution to Michigan Geology 92 01 Table of Contents Preface .................................................................................................................. 2 The Keweenaw Peninsula ........................................................................................... 3 The Primitive Miners ................................................................................................. 6 Europeans Come to the Copper Country ....................................................................... 12 The Legend of the Ontonagon Copper Boulder ............................................................... 18 The Copper Rush .................................................................................................... 22 The Pioneer Mining Companies................................................................................... 33 The Portage Lake District ......................................................................................... 44 Civil War Times ...................................................................................................... 51 The Beginning of the Calumet and Hecla ...................................................................... 59 Along the Way to Maturity......................................................................................... 68 Down the South Range ............................................................................................. 80 West of the Ontonagon............................................................................................
    [Show full text]
  • UAW Region 1B Collection
    UAW Region 1B Collection Papers, 1939-1985 337 linear feet Accession # 512 DALNET # OCLC # UAW Region 1B, representing locals in the southeastern and thumb areas of Michigan, was created at the 1939 convention. At that time, it supervised four locals representing 1,000 members. William McAulay served as its first director until 1959, when the International Executive Board dissolved Region 1B, reallocating most of its local into Region 1. In 1966, the International Executive Board divided Regions 1 and 1A into 1, 1A, 1B, and 1E. Ken Morris, elected co-director of Region 1 in 1955 and director in 1959, became director of the newly- formed Region 1B in 1966 and served until his retirement in 1983, when he was succeeded by Bob Lent. When Morris retired, Region 1B supervised 34 locals with 80,000 active members and 27,000 retirees. In addition to the major automotive manufacturers, Region 1B locals represent or have represented workers at Huck Manufacturing, TRW, Briggs Manufacturing, Eaton Manufacturing, and Bohn Aluminum. The records of UAW Region 1B consist of minutes, correspondence, reports, grievance files, contract negotiating and organizing files, conference proceedings, and clippings and other printed material related to the servicing of its locals and its political activities in the region. PLEASE NOTE: Folders are computer-arranged alphabetically within each series in this finding aid, but may actually be dispersed throughout several boxes in the collection. Note carefully the box number for each folder heading. Important subjects
    [Show full text]
  • DOCUMENT RESUME ED 390 434 IR 055 781 TITLE a Manual For
    DOCUMENT RESUME ED 390 434 IR 055 781 TITLE A Manual for Michigan State Documents Deposi,tory Libraries. INSTITUTION Michigan Library, Lansing. PUB DATE 94 NOTE 65p. PUB TYPE Guides Non-Classroom Use (055) EDRS PRICE MF01/PC03 Plus Postage. DESCRIPTORS *Depository Libraries; *Government Publications; *Library Administration; Library Materials; Library Networks; Library Role; Library Services; *Library Technical Processes; State Programs IDENTIFIERS Historical Background; Library of Michigan; *Michigan ABSTRACT This manual contains information about the Michigan Documents Depusitory Library Program as administered by the Library of Michigan, a brief history of the program, the types of publications distributed, and guidance on handling and processing depository shipments. The first section briefly outlines the history of the Michigan documents depository library program. Section 2, "Library of Michigan Administration of the Depository Program," contains details about the role the Library of Michigan plays in overseeing the program, a profile of the member libraries, some general procedures, and information about how depository documents are distributed. The third section, "Guidelines for Managing a Michigan Documents Depository," explains how depository documents should be dealt with after their arrival at the depository, including technical processing, claim procedures, and retention and weeding policies. "Resources for Effective Public Services," the fourth section, serves as an introduction to document acquisition and to some online search tools; it includes a suggested core list of Michigan state documents. Seven appendices contain laws pertaining to the depository library program, a directory of the depository library system, a sample shipping list, classification scheme, filing rules, a bibliographic aid for locating pre-1952 documents, and a document price list.(BEW) Reproductions supplied by EDRS are the best that can be made from the original document.
    [Show full text]
  • Reps. Drolet, Garfield, Pastor and Taub Offered the Following Resolution: House Resolution No
    Reps. Drolet, Garfield, Pastor and Taub offered the following resolution: House Resolution No. 228. A resolution declaring April 1, 2006, as April Fools Day and Various Unsuccessful Michigan Economic Assistance Organizations Throughout History Day in the state of Michigan. Whereas, In 1947, Governor Kim Sigler created the Department of Economic Development (DED); and Whereas, In 1963, Governor George Romney created the Department of Economic Expansion (DEE); and Whereas, In 1975, Governor William Milliken created the Michigan Job Development Authority (MJDA); and Whereas, In 1982, Governor William Milliken created the Michigan Economic Development Authority (MEDA); and Whereas, In 1984, Governor James Blanchard created the Michigan Strategic Fund (MSF); and Whereas, In 1985, Gov. James Blanchard also created the “Research Excellence Fund (REF) as an arm of the MSF; and Whereas, In 1995, Governor John Engler created the Michigan Jobs Commission (MJC) and the Michigan Economic Growth Authority (MEGA) under the MJC; and Whereas, In 1999, Governor John Engler also created the Michigan Department of Career Development (MDCD) and the Michigan Economic Development Corporation (MEDC) from the previously created MJC, and placed MEGA under MEDC; and Whereas, In 2003, Governor Jennifer Granholm created the Department of Labor and Economic Growth (DLEG) by combining the MEDC and MCDC, yet retained the MEDC with its quasi-public status as a separate entity; and Whereas, In 2005, Governor Jennifer Granholm created the 21st Century Jobs Initiative; and Whereas, In the 59 year history of such state organizations aimed at diversifying and improving our state’s economic climate, we have achieved the enviable economic status we currently enjoy; now, therefore, be it Resolved by the House of Representatives, That the members of this legislative body declare April 1, 2006, to be April fools Day and Various Unsuccessful Michigan Economic Assistance Organizations Throughout History Day in the state of Michigan.
    [Show full text]
  • West Michigan Prosperity Alliance
    Regional Prosperity Plan for the West Michigan Prosperity Alliance October 10, 2014 West Michigan Prosperity Alliance Steering Committee October 10, 2014 12:00 p.m. A MOTION WAS MADE by Jim Fisher to approve the Regional Prosperity Plan for the West Michigan Prosperity Alliance. SUPPORTED BY Andy Johnston. Motion Approved Unanimously. TABLE OF CONTENTS Introduction 1 Michigan’s Regional Prosperity Initiative (RPI) 1 Executive Summary 5 Prosperity in West Michigan 7 Organization and Management 9 West Michigan Prosperity Alliance (WMPA) 9 WMPA Steering Committee 9 WMPA Sub-Committees 10 Planning Process 11 WMPA Partners 16 Regional Planning Agencies and Metropolitan Planning Organizations 16 Economic Development Organizations 17 Adult Education and Higher Education 19 Work Force Development 22 Talent 2025 24 West Michigan Chamber Coalition 24 Other Partners 25 Regional Profile 26 Service Area 26 Physical Features 26 Built Environment 26 Population Trends 28 Education 29 Employment 30 SWOT Analysis (based on interviews of Steering Committee members & Surveys of 32 additional individuals) Organizational Issues, Goals, Objectives, and Actions (includes organizational 37 architecture & future schedule) Regional Issues, Goals, Objectives, and Actions (goals related to Region) 39 West Michigan Prosperity Alliance Projects 41 Overview 41 Evaluation Criteria 42 Tier One Alliance Projects 42 Tier Two Alliance Projects 46 Tier Three Alliance Projects 49 Prioritized Projects 59 Next Steps 60 Conclusions 61 Appendix A – Labor Market Information Supplement West Michigan Prosperity Alliance – Regional Prosperity Plan – October 10, 2014 INTRODUCTION Michigan’s Regional Prosperity Initiative (Source: Michigan Department of Technology, Management, and Budget) Michigan has earned the title of America’s comeback state. It’s an economic success story that would not be possible without collaboration by the public, private and nonprofit sectors.
    [Show full text]
  • Guide to the Metropolitan Detroit AFL-CIO Records LR000053 MD
    Guide to the Metropolitan Detroit AFL-CIO Records LR000053_MD This finding aid was produced using ArchivesSpace on October 10, 2019. English Describing Archives: A Content Standard Walter P. Reuther Library 5401 Cass Avenue Detroit, MI 48202 URL: https://reuther.wayne.edu Guide to the Metropolitan Detroit AFL-CIO Records LR000053_MD Table of Contents Summary Information .................................................................................................................................... 3 History ............................................................................................................................................................ 3 Scope and Content ......................................................................................................................................... 4 Arrangement ................................................................................................................................................... 7 Administrative Information ............................................................................................................................ 8 Related Materials ........................................................................................................................................... 8 Controlled Access Headings .......................................................................................................................... 9 Part 1 Subject Index .....................................................................................................................................
    [Show full text]
  • Michigan's Railroad History
    Contributing Organizations The Michigan Department of Transportation (MDOT) wishes to thank the many railroad historical organizations and individuals who contributed to the development of this document, which will update continually. Ann Arbor Railroad Technical and Historical Association Blue Water Michigan Chapter-National Railway Historical Society Detroit People Mover Detroit Public Library Grand Trunk Western Historical Society HistoricDetroit.org Huron Valley Railroad Historical Society Lansing Model Railroad Club Michigan Roundtable, The Lexington Group in Transportation History Michigan Association of Railroad Passengers Michigan Railroads Association Peaker Services, Inc. - Brighton, Michigan Michigan Railroad History Museum - Durand, Michigan The Michigan Railroad Club The Michigan State Trust for Railroad Preservation The Southern Michigan Railroad Society S O October 13, 2014 Dear Michigan Residents: For more than 180 years, Michigan’s railroads have played a major role in the economic development of the state. This document highlights many important events that have occurred in the evolution of railroad transportation in Michigan. This document was originally published to help celebrate Michigan’s 150th birthday in 1987. A number of organizations and individuals contributed to its development at that time. The document has continued to be used by many since that time, so a decision was made to bring it up to date and keep the information current. Consequently, some 28 years later, the Michigan Department of Transportation (MDOT) has updated the original document and is placing it on our website for all to access. As you journey through this history of railroading in Michigan, may you find the experience both entertaining and beneficial. MDOT is certainly proud of Michigan’s railroad heritage.
    [Show full text]
  • DIT Executive Orders
    AAppppeennddiixx EE DIT Executive Orders Executive Order 2001-3 created DIT in an effort to achieve a unified and more cost-effective approach for managing information technology. This was to be accomplished by strengthening and coordinating IT policy decisions across the enterprise. Under the order DIT is mandated to fulfill the use of common enterprise information technologies and provide consistent professional management of the state’s IT resources. Major departmental responsibilities under the EO include: Centralize IT policy-making Unify strategic and infrastructure planning for technology Improve information, project, and system management Act as general contractor for technology products and services Provide citizens with more timely and cost-effective delivery of state services EO 2001-3 was the culmination of the consolidation of IT services through a number of executive orders, including 1994-15, 1995-10, 1995-14, and 2000-6. These orders consolidated telecommunications and information processing, founded the Michigan Information Network, and established e-Michigan. Governor Granholm has supported and strengthened the implementation of this executive order through the creation of advisory bodies such as MITEC (discussed later in this chapter) and assigning a key role for DIT within the Cabinet Planning Process. Follows is the complete detail of these executive orders. They can also be found on the Michigan.gov web site at the following addresses: Executive Order No. 2001-3, effective on October 14, 2001 – http://www.michigan.gov/engler/1,1431,7-103-704-3054--M_2001_8,00.html creating a Michigan Department of information Technology. Executive Order No. 2000-6, effective in April 2000 - in April 2000 – http://www.state.mi.us/e-mi/gov/eo/2000/2000-06.shtm establishing e-Michigan Executive Order No.
    [Show full text]
  • AFL-CIO Metropolitan Detroit Records
    PART 1 The Metropolitan Detroit AFL-CIO Collection 30 Manuscript Boxes Processed: July, 1966 Accession Number 53 By: PB The papers of Wayne County AFL-CIO were deposited with the Labor History Archives in February 1963 by Wayne County Council. The Wayne County AFL-CIO is the central organization for all AFL-CIO unions that have locals in Wayne County. This organization has grown along with the rise in unionization in the Detroit area. The leadership of Frank Martel was particularly significant in gaining acceptance of unions by the larger community. When the local unions supported it, the County organization was very important in offering financial assistance to organizing drives, in ending factional and jurisdictional disputes, and in supporting political candidates. The Wayne County AFL-CIO Collection covers the period from 1918 to 1948. Important subjects are: Sit-Down Strikes 1930's Formation of the CIO World War II Government Policies Attitudes toward Soviet Union, Communism Depression Among the correspondents are: Frank Martel, Sidney Hillman, Upton Sinclair, Huey Long, Henry Ford II, W i l l i a m Green, Harry Truman. Governors: Fred Green, W i l l i a m Comstock, Murray D. VanWagoner, Harry Kelly, Frank Fitzgerald, Alex Groesbeck, Kim Sigler, G. Mennen Williams, Laren D. Dickinson, Frank Murphy Senators: Arthur Vandenburg, Homer Ferguson, Prentis Brown, James Couzens. Description of Series Series I AFL Office Files, 24 Boxes, p. 2 Arranged alphabetically by subject Series II CIO Office Files, 6 Boxes, p. 13 Arranged alphabetically
    [Show full text]