(Source: MIRS.news, Published 09/28/2022) A $1 billion mid-year supplemental spending bill designed to replenish the Strategic Outreach and Attraction Reserve (SOAR) fund and kickstart other large-dollar economic development projects passed both the House and the Senate Wednesday.
The deal, negotiated with House Speaker Jason Wentworth (R-Farwell), drove House Appropriations Committee Chair Thomas Albert (R-Lowell) to resign his position out of principle. About a month ago, Albert issued a statement in opposition to the mid-year spending plan.
The deal includes ensuring there is $500 million in the SOAR fund to start Fiscal Year 2023 on Oct. 1. This includes the roughly $200 million left over for this year and $290 million in new money, MIRS has learned from sources.
It also includes $350 million for site preparation for specific projects the legislative leadership wants to see movement on. The remaining portions of the supplemental pays for scholarships and makes other funding adjustments related to federal COVID Relief Fund money.
The law creating the SOAR Fund requires any leftover money at the end of the fiscal year (Sept. 30) to lapse into the General Fund. With the state working on making a few time-sensitive projects happen, the concern was an empty SOAR fund could chase away investment and handcuff the Michigan Economic Development Corporation (MEDC).
The vehicle for this supplemental -- SB 844 – moved out of a joint House-Senate conference committee hearing around 3 p.m. and was passed by the Senate, 25-8, and the House, 76-28.
“It's imperative that we continue these investments and remain competitive as other states like Tennessee work to attract employment opportunities from auto manufacturers,” said Rep. Mary Whiteford (R-Casco Twp.), who succeeded into the role of House Appropriations Committee chair after Albert stepped down in protest.
Albert said he sees a global recession on the horizon and until Michigan knows how that's going to impact tax revenues, he didn't feel it fiscally prudent to spend any of the $7 billion still on the state's balance sheet. He said the possible economic contraction could be the worse the United States has seen since Black Thursday of 1929.
“I hope this is not the case. It's OK to hope for the best, but in this situation, it is absolutely necessary to plan for the worst,” he said.
In all, the SOAR Fund will start FY '23 with $846 million. Other highlights include:
- $27 million to help Thomas Township in Saginaw County improve its sewer system to accommodate an expansion project by Hemlock Semiconductor.
- $15 million so all Michigan National Guard armories can create equitable accommodations for women.
- $20 million to settle the Bauserman v. UIA lawsuit (see related story).
- $7.5 million to build a new bypass road that would allow 40 acres near Pontiac to be used for public recreation.
- $15 million to help house teenagers who are aging out of foster care find housing.
- $25 million to boost reimbursement rates for institutions taking care of children who need mental health services.
SB 844, introduced by Sen. Jim Stamas (R-Midland), received “no” votes in the Senate from Sens. Tom Barrett (R-Charlotte), Stephanie Chang (D-Detroit), Jeff Irwin (D-Ann Arbor), Ruth Johnson (R-Holly), Ed McBroom (R-Waucedah Twp.), Aric Nesbitt (R-Lawton), Jim Runestad (R-White Lake) and Lana THEIS (R-Brighton).
In the House, the “no” votes came from Reps. Thomas Albert (R-Lowell), Julie Alexander\ (R-Hanover), Sue Allor (R-Wolverine), Andrew Beeler (R-Fort Gratiot), Timothy Beson (R-Kawkawlin), Ryan Berman (R-Commerce Twp.), Ann Bollin (R-Brighton Township), Steve Carra (R-Three Rivers), Mary Cavanagh (D-Redford), John N. DaMoose (R-Harbor Springs), Gary Eisen (R-St. Clair Township), Diana Farrington (R-Utica), Andrew Fink (R-Hillsdale), Annette Glenn (R-Midland), Phil Green (R-Millington), Michele Hoitenga (R-Manton), Pamela Hornberger (R-Chesterfield Twp.), Gary Howell (R-North Branch), Steven Johnson (R-Wayland Twp.), Maddock (R-Milford), Terence Mekoski (R-Harrison Twp.), Pat Outman (R-Six Lakes), Brad Paquette (R-Niles), Laurie Pohutsky (D-Livonia), Yousef Rabhi (D-Ann Arbor), John Reilly (R-Oakland), Daire Rendon (R-Lake City) and Bradley Slagh (R-Zeeland).
