The Michigan Legislature is spending billions on a program that gives out select subsidies, mostly to large corporations. The SOAR Fund — Strategic Outreach and Attraction Reserve — was created in December 2021, with an initial allocation of $1 billion. It will now receive $846.1 million more.

The decision to add more to the fund received widespread media attention, with many accounts reporting on job predictions. Absent, however, was coverage of what similar incentive programs have achieved in the past — very little.

The most comprehensive analysis of Michigan select incentive programs found that job announcements rarely turn into jobs. Fewer than 20% of the jobs promised when new deals are announced come into existence.

Only 2.3% of deals produce as many jobs as advertised. While SOAR lacks a long track record, previous efforts have resulted in billions of dollars spent but very few jobs.

Here are the major projects funded over the past 15 years, the amount in subsidies given by Michigan taxpayers, and the results, according to official records

• Xtreme Power (2009): $106.7 million pledged for 2,500 jobs (0 jobs produced)
• Motown Motion Pictures (2009): $101.1 million for 3,600 jobs (0 jobs produced)
• FortuPowerCell: $100 million for 300 jobs (0 jobs reported)
• MPI Research (2008): $86.0 million for 3,300 jobs (0 jobs produced)
• Ford (2010): $78 million for 1,000 jobs (0 jobs reported)
• General Electric (2009): $73.9 million for 1,200 jobs (latest report: 419 jobs)
• Farmers Group (2009): $62.6 million for 1,600 jobs (1,006 jobs reported)
• Dow Kokam (2010): $42 million for 320 jobs (the state does not report on current jobs at this plant)
• Wonderstruck Studios (2009): $28.6 million for 700 jobs (0 jobs reported)
• Johnson Controls-SAFT(2009): $20 million (the state does not report on current jobs at this plant)

It is difficult to determine how many jobs are created by some projects, especially battery plants.

Michigan has paid out $1.12 billion in credits to various companies in that market. There are a total of 2,096 battery manufacturing jobs in the state of Michigan. Even if every job were the result of a state subsidy – which is unlikely – that would mean taxpayers spent more than $534,000 for each job.

In the past year, the state of Michigan has approved a $100 million payout to Ford in exchange for a pledge of 3,030 jobs. Two months later, the company announced 3,000 layoffs, many in Michigan.

It also approved $600 million for General Motors, which state lawmakers and the media said would create and retain 5,000 jobs. But the fine print showed only 3,200 jobs were required, and those jobs had to last only six months for GM to comply with the deal.

Opposition from the new spending came from conservative Republicans and gubernatorial candidate Tudor Dixon, who is running against Gov. Gretchen Whitmer.

Nearly all House and Senate Democrats joined most Republicans in supporting the bill.

Government employee unions could receive some favors if a bill in the Michigan Legislature were enacted.

Senate Bill 1093, introduced by Sen. Erika Geiss, D-Taylor, on June 23, would undo a 2012 change to Public Act 336 of 1947. The 2012 change prohibits public schools from using taxpayer resources in assisting a labor organization in collecting union dues from its workers. These collections are considered a contribution to “the administration of a labor organization.”

The bill would strip this prohibition from state law. Districts would not be required by law to use taxpayer dollars to benefit a union in this way, but they would have to perform this service if they made it part of a collective bargaining contract with the union.

“Taxpayers should not be the collection agency for private unions. If they want people to pay dues, they should do what pretty much every other private membership organization in the world has to do and go get people to sign up by credit card and collect the dues themselves,” says Jarrett Skorup, marketing and communications director at the Mackinac Center for Public Policy.

Unions would also face less oversight under the legislation. Senate Bill 1093 would remove from state law the requirement that unions have an independent examiner audit their finances to determine how dues are being spent, whether on bargaining, contract administration, or grievance adjustments. The results are currently published by the Michigan Department of Labor and Economic Opportunity.

Membership in the Michigan Education Association, which represents teachers and other employees in educational settings, has decreased over the last decade.

The union had 117,265 members in 2012. That number was 80,905 in 2021, a 31% decrease, driven in large part by a right-to-work law enacted in late 2012.

Geiss did not respond to a request for comment.