Landmark transparency bills signed
Wednesday, October 28, 2009
LANSING—State Sen. Nancy Cassis’ transparency legislation adding accountability and disclosure to the Michigan Economic Growth Authority (MEGA) credits was signed into law today by the governor.
“This is truly a great day for Michigan. The cornerstone to good, effective government is transparency,” said Cassis, R-Novi. “This groundbreaking legislation is the first of its kind in Michigan. By taking this historic action today, we have a better chance to bring transparency into the rest of state government.”
Cassis said that openness and transparency are critically important to the legislative process.
“These landmark reforms are a first step to ensuring lawmakers will never be kept in the dark when making critical decisions,” said Cassis, chair of the Senate Finance Committee. “Transparency will give legislators the factual, reliable data they need to be able to measure the effectiveness, and most importantly, the cost-benefit of the refundable credits. Without accurate cost figures, doing a cost-benefit analysis is virtually impossible.”
Public Acts 124 and 125 of 2009, formerly Senate Bills 70 and 71, open up the MEGA credits and the tax certificates to legislative oversight. Information now required to be shared with policymakers includes the actual amounts for the number of jobs created or retained and the actual value of the MEGA refundable tax credits claimed.
“My transparency reforms also reaffirm the Legislature’s oversight responsibility and ensures future lawmakers will have the proper oversight of the state’s tax incentives,” Cassis said. “Given Michigan’s budget situation, it is critical that we hold department heads accountable for how they spend taxpayer dollars.”
Cassis added: “Both the public and lawmakers have the right to know where state tax dollars are going. Other states, like Washington, have adopted transparency with outstanding results. I am proud that we have finally brought that accountability and openness to Michigan, and I look forward to bringing transparency to all of state government.”
House Bill 4922 and SB 774, now Public Acts 123 and 126 of 2009, were also part of the package. PA 123 expands the amount of MEGA credits the Michigan Economic Development Corporation can award in 2009. PA 126, also sponsored by Cassis, would place an annual $95 million cap on the growth of MEGA credits beginning in 2010.
“Bringing transparency to the MEGA program has been a long process, and I am proud and grateful to see all the hard work finally come to fruition,” Cassis said.
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