Michigan’s pork barrel spending is out of control. Lawmakers have directed billions of dollars in recent years to politically connected groups, promoting political development, not economic development.
The latest deal is a lousy housing investment that is unlikely to lead to any economic growth. As uncovered by The Detroit News, a $15 million legislative earmark is being directed to Invest UP, an Upper Peninsula economic development organization. The group has never had an annual budget of more than $1.5 million — one tenth of the earmark.
Lawmakers’ stated intent for this earmark is to help workers afford housing, but the money is going toward apartments costing nearly $3,000 per month in what the developer calls an “upscale apartment community.” It is hard to see how this apartment fits the guidelines of “workforce housing stock,” but Michigan’s state-directed economic development organization – the Michigan Economic Development Corporation – says this is fine.
The earmark won’t go to Invest UP but instead to a different group, Build UP. Despite what the specific language of the budget says, the MEDC says it is fine for the money to go to a different organization. Notably, the developer building these expensive units is a board member of Invest UP.
This is a bad deal. Michigan’s earmark process is an unconstitutional mess that has repeatedly led to criminal investigations. Michigan will not subsidize its way out of a housing shortage; that would cost way too much, with funds ending up in the laps of the politically well-connected. The solution is to remove government obstacles and let builders build.
