State throws big bucks at potential employers

LANSING -- In the quest for jobs, Michigan's efforts to keep up in the economic-development-arms race among the states is moving beyond tax breaks to cold hard cash.

Film production incentives that are drawing dozens of movie projects to Michigan, but will cost an estimated $100 million in fiscal 2009, apparently was only the start.Gov. Jennifer Granholm and lawmakers this month are expected to complete work on a package of development grants for targeted industries worth hundreds of millions more in coming years.

One measure would allocate $18.7 million for a new Choose Michigan Fund administered by the Michigan Economic Development Corp. The earmark was rushed through the House last week and is expected to be approved in the Senate this week."It allows us to provide an upfront incentive. For companies who need upfront capital, that type of incentive is very attractive," MEDC spokeswoman Bridget Beckman said. "It's one of our legislative priorities, and if it's passed and gets to the governor's desk, that means we can put it into service sooner."

Granholm and lawmakers are scrambling to react to what may even be more deterioration in Michigan's already embattled economy. The state's unemployment rate climbed to 8.5 percent in May, and auto companies are scaling back production amid reports that car and light truck sales will continue to tumble. More here.