April 17, 2009
On Tuesday, Governor Jennifer Granholm announced the Michigan Economic Growth Authority has approved tax breaks that will bring four battery manufacturing facilities to
Two of the companies receiving tax credits will partner with General Motors and Chrysler. LG Chem-Compact is teaming up with GM for their battery production. The manufacturer will receive a $100 million state battery tax credit as well as a $25 million state tax credit. An estimated 300 jobs should be created.
A123 Systems Incorporated partnered with Chrysler for their battery production, receiving a $100 million battery tax credit along with a $25.2 million state tax credit. The A123 facility located in
John Controls-Saft Advanced Power was given a $100 million battery tax credit coupled with a 15-year state tax credit of $48.5 million for its
Finally, KD Advanced Battery Group was awarded a $100 million battery tax credit and a $44.6 million state tax credit with the intention of hiring 885 new workers.
Sen. Jason Allen (
The battery initiative is expected to create approximately 6,700 jobs once in full operation.
Parole and Commutation Board Restructured
Governor Granholm’s newly restructured Parole and Commutation Board positions were finalized on Monday. The Board is comprised of members of the Parole Board, officials of the Department of Corrections, and private attorneys.
This is yet another attempt in the continuing efforts by the Governor to reduce correctional facilities costs. There are currently 11,500 prisoners incarcerated who are eligible for parole. The cost to house a prisoner is $33,000 a year. By moving more quickly to parole eligible inmates the Governor is hoping to save over $300 million a year.
Parole Board members are as follows:
Barbara Sampson of
Corrections members are as follows:
Jodi DeAngelo, Assistant Deputy Warden at Scott Correctional Facility and David Kleinhardt, manager in the Office of the Parole Board, appointed for terms expiring November 30, 2011. David Fountain, manager of the parole services section, appointed for a term expiring November 30, 2009. Lisa Gettys manager of the Office of probation ad Parole Services, and Sonia Amos Warchock of Jackson a parole violation specialist, appointed for terms expiring November 30, 2009
Jobless Benefits Increased
On Monday, Governor Granholm signed legislation that will extend the period for which a person qualifies for benefits while unemployed. The bills signed into law will lengthen the jobless benefits time frame by seven weeks. The increase in benefits will be paid for with federal stimulus dollars. Governor Granholm also asked that the legislature take up legislation that would provide benefits to others who do not meet the current criteria for unemployment benefits. If passed, HB 4785 and HB 4786 would allow for an additional $138 million in federal money to come to
The measures would expand the definition of eligibility to include those who are currently not seeking full-time employment but are in job retraining programs or are currently working part-time. The business community has voiced strong opposition to the expansion making passage of the expanded program difficult.
Combine a not-so-bright forecast for the automotive industry with a national economic slump and it is not surprising
Last year at this same time,
"The weakness in the auto industry along with the national recession have severely impacted
In a related issue,
Two important state regulated funds took a hit in revenue. The General fund and School Aid fund decreased by $200 million and $125 million respectively, leading the decline, and also reflecting the increase in
The bright spot was the state sales tax which increased by 3.9 percent in the month of March. That stated, total sales tax collection for 2009 is still down from 2008 levels.
As a result of the declining revenue numbers, Governor Granholm and the legislative quadrant leaders (Speaker of the House Andy Dillon, Senate Majority Leader Mike Bishop, House Republican Leader Kevin Elsenheimer and Senate Democratic Leader Mike Prusi) met yesterday to review a proposed executive order ($80 million dollars) and discuss options to address what appears to be a nearly $800 million dollar shortfall for the current fiscal year. While no agreements were reached, budget numbers for this fiscal year, for 2009-2010 and for 2010-2011 continue to reflect the negative effect of the national and state economic slump.
Auto Work Group Established by Senate GOP. Republicans in the Senate formed and auto workgroup to review steps and issues to support the auto industry. Named to the workgroup is Senate Majority Floor Leader Alan Cropsey (R-DeWitt), Sen. Randy Richardville (R-Frenchtown Twp.), Sen. Jason Allen (R-Traverse City) and Sen. Bill Hardiman (R-Kentwood). The group was formed because of the crisis the auto industry is enduring and how the state can better prepare for what happens to companies at a corporate level and the impact those decisions will have on
Paul Welday Formally Announces Bid for Congress.