LANSING – House Democrats today passed the "Hire Michigan First" plan, which rewards companies that employ 100 percent Michigan workers with state economic development incentives. The aggressive job-creation plan also cracks down on companies that hire undocumented workers by creating penalties that include requiring them to pay back their state incentives and barring them from future state contracts.
"This plan puts a laser-like focus on using Michigan tax dollars to create jobs for Michigan residents," said State Representative Fred Miller (D-Mount Clemens), the architect of the "Hire Michigan First" plan. "The highly skilled, hard-working residents of Michigan – who make up the best workforce in the country – deserve to be first in line for these jobs. It's our responsibility to make sure that our tax dollars benefit our working families, not people from out of state or even from other countries."
The "Hire Michigan First" plan:
- Rewards companies that hire the most Michigan residents in the pursuit of state tax breaks and other economic development incentives. This rule would apply to projects handled by the Michigan Economic Development Corp. and certain state-funded programs, including the Michigan Economic Growth Authority and the Renaissance Zone Act.
- Encourages transparency and accountability by requiring companies that accept incentives to report on who they hire to ensure that Michigan residents are put first.
- Cracks down on companies that hire undocumented workers by creating penalties that include requiring them to pay back their tax incentives and barring them from future state contracts.
"Tax incentives are a powerful economic tool that play a key role in getting our residents back on the job," said State Representative Mark Meadows (D-Lansing). "However, when companies accept state tax breaks, we have to make sure that our workers are the ones reaping the benefits. This type of accountability for our taxpayers' money is long overdue."
State Representative Barb Byrum (D-Onondaga), who owns a small business, said: "Companies should not be allowed to accept tax breaks or state contracts and then turn around and give those jobs to undocumented workers so they can save money on wages and benefits. To improve Michigan's business climate, we have to protect companies that play by the rules, and this plan does that."
State Representative Mike "Huck" Huckleberry (D-Greenville) sponsored a bill in the package.
"'Hire Michigan First' will help fight the rising unemployment rate in Michigan by putting our workers first," Huckleberry said. "We have to use every tool we have at our disposal to support our working families during these tough economic times. This legislation helps ensure that our scarce state resources are used properly – to create jobs for our own workers."
House Speaker Andy Dillon (D-Redford Township) said the people of Michigan want to see action on behalf of Michigan's workers.
"I urge my colleagues in the Senate to act quickly on this plan, because the Legislature's top priority should be creating good-paying jobs for our residents," Dillon said. "I commend Representative Miller and everyone else who has worked to shape this common-sense job-creation plan. Now it is time for the Senate to do its part to support Michigan workers and protect our middle-class families."