News Story

Michigan Legislature gives $1 million to mystery golf nonprofit

Budget’s $1.25 million Sault Ste. Marie grant also includes quarter-million for a snowmobile track

Michigan taxpayers will pay $1 million to an undisclosed nonprofit to help young adults improve their golf game.

The Legislature approved $1.25 million in the 2025 state budget for a snowmobile track and golf-centered training in what it called “life skills.”

The grant comes as an earmark, language added so late in the budget process that it receives little or no vetting.

Lawmakers awarded the city of Sault Ste. Marie $250,000 for renovations to the International 500 Snowmobile TrackRacetrack, set to begin in the summer of 2025, according to the city’s website. The track hosts the annual International 500 snowmobile race.

The site has already received substantial funding from taxpayers. The U.S. Economic Development Administration has awarded it $2 million for renovations, with more coming from local sources.

“This $2 million investment in the Sault will create or retain 50 good-paying jobs and help us continue to grow our Pure Michigan economy,” said Gov. Gretchen Whitmer in a Sept. 6, 2022, press release announcing the federal grant.

Rep. Neil Friske, R-Charlevoix, represents Sault Ste. Marie in the Michigan House.

“My office was NOT involved in the conversations or process regarding the Grant for the I-500 track improvements,” said Friske in an email to Michigan Capitol Confidential, writing about the earmark in the state budget. “While I understand the economic impact that event has on the Sault area, I always struggle with my constituents hard-earned tax dollars being directed to these types of projects.”

The $1 million golf grant does not name the locale or the intended recipient. The description of the grant reads:

“From the funds appropriated in part 1 for community enhancement grants, $1,000,000.00 shall be awarded to a nonprofit organization with a mission dedicated to equipping determined young adults through life skills training, proactive coaching, long-term mentoring, and the discipline of golf in order to succeed in college, in their careers, and beyond that is located in a county with a population greater than 1,500,000 according to the most recent federal decennial census for the renovation of a facility.”

The Legislature uses population estimates to skirt a requirement that each grant in the state budget receives a two-thirds vote if it will benefit private entities. CapCon has previously reported on the secrecy and constitutional questions surrounding Michigan’s extensive use of earmarks.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Outgoing House bets on state-run venture fund, research subsidies and tax credits

Lawmakers plan to vote on Hollywood ‘giveaways’ and other costly items in lame-duck session

Michigan’s Legislature is moving bills on corporate welfare during its lame-duck session.

The Michigan House approved House Bill 5651, House Bill 5652, and House Bill 5653 Wednesday, a package that would extend the failed “21st Century Jobs Fund” and rename it the “Michigan Innovation Fund.”

The bills are part of a raft of legislation being pushed in the lower chamber of the Michigan Legislature as lawmakers hurry to leave for hunting season and Thanksgiving break. Partisan control of the House will change from Democrats to Republicans in January, while Democrats will retain their Senate majority.

The Innovation Fund bills would provide grants to certain venture capital funds and nonprofits to promote investments by drawing on $140 million from the previous jobs program. The 21st Century Jobs Fund was a notorious underperformer, creating jobs at a cost of $274,800 to $330,600 per position.

The House also concurred with Senate changes to HB 5100 and HB 5101, two research and development tax credits that would allow authorized businesses to claim a tax credit for certain research.

Taxpayers and authorized businesses with 250 or more employees could claim up to $2 million per taxpayer or business, respectively, per year. Taxpayers and authorized businesses with fewer than 250 employees could claim up to $250,000 per taxpayer or business, respectively, per year.

Additionally, taxpayers or employers could claim up to $200,000 in additional credit for expenses from collaboration with a research university. The aggregate research and development credits would be capped at $100 million.

If enacted into law, the bills would reduce revenue to the General Fund and the School Aid Fund by about $100 million per tax year, according to the Senate Fiscal Agency.

State Rep. Jasper Martus, D-Flushing, welcomed the movement.

“These tax credits will allow for innovative new economic development right here in Michigan,” Martus, the bills' sponsor, said in a press release. “We are making it known that our state is full of opportunities to start and develop a business, which will ultimately create jobs and boost our economy. It is vital that we find ways to drive Michigander success and the R&D package does that.”

The House approved HB 4906, the data center tax credit bill that had been stuck on the floor since June. The bill aims to extend exemptions of large data centers from sales and use taxes until 2050.

Previously, lawmakers paused the bill because of environmental and energy concerns, Michigan Capitol Confidential reported.

The House also passed HB 4224, which eliminates the work requirements for the Healthy Michigan plan.

The House will likely vote on the film credits bills HB 4907 and HB 4908 in December. These bills aim to authorize more than $2 billion in tax credits over the next 10 years for movie and television production in Michigan.

If enacted into law, the plan would offer tax-credit incentives between 25% and 30% of certain expenditures if Hollywood producers made qualified productions in Michigan.

The curtain fell on Michigan’s last film incentive program in 2015, by which point the program had cost taxpayers $500 million while creating no permanent Tinseltown jobs and spurring several costly attempts to build motion picture studios in the state.

Rep. Matt Hall, R-Richland Township, who will serve next term as the House Speaker, tweeted that he will oppose the film credit bills.

“Dems are voting tomorrow to give wealthy Hollywood elites our tax dollars,” Hall wrote. “This giveaway was a total failure before, because film credits don't grow our economy. They just pick losers & winners who leave once they stop getting paid.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.