State Overestimated Grant-Related Job Creation

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The state has been seriously overestimating how many jobs are being created by grants from the "Michigan Strategic Fund".

On April 1st lawmakers were told companies receiving grants had created 75% of the jobs they promised when applying.

An audit found the actual number is 19% and that doesn't count a company that went bankrupt.

A spokesman for the fund calls it an oversight.

Governor Rick Snyder told us he'd just learned about the audit and hadn't had a chance to review it yet.

"We wanna make sure we get our numbers right so if there's an issue we'll look into it quickly, get it corrected because we've been very careful about most of our jobs numbers. In fact, one illustration is we got out of the business of the indirect jobs and really focused in on direct jobs so that's something I need to do some follow-up on," said Governor Rick Snyder.

When the governor talked about "indirect" jobs he's referring to jobs created not by the company getting the tax credit but by companies that either do business with them or benefit in some other way.

The state used to include estimates of indirect jobs but stopped because it's too hard to get an accurate number.



 
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