A small change in state law could make a big economic impact, and Saginaw stands to reap the benefits.
Monday, July 28, 2008
A small change in state law could make a big economic impact, and Saginaw stands to reap the benefits.
Executives from Morley Companies, Inc., headquartered in Saginaw Township, recently met with myself and other area lawmakers to discuss efforts to bring more jobs to Saginaw. The group cited possible changes to the Michigan Economic Growth Authority eligibility requirements as a way to make such growth more likely.
After the meeting, I requested that Senate Bill 1367 be amended to make the necessary changes. These revisions would increase the likelihood that the Morley expansion would bring up to 300 jobs to Saginaw. In a sign of true bipartisanship, SB 1367 sailed through the legislative process and is now on its way to the governor's desk for signing.
SB 1367 revises existing law regarding the eligibility of certain businesses when state economic development officials are considering important tax credits. The tax credits are awarded by the Michigan Economic Growth Authority based on the wages companies pay their workers. This bill will let the state include the cost of health care as part of that wage calculation.
The authority was established by the state in 1995 to help spur in-state job creation and business investment. It selects firms who then receive Michigan Business Tax credits in return for creating or expanding facilities and jobs in our state.
Morley is a well-established and successful Michigan company, employing 650 workers, of which 450 are located at its Saginaw Township operations center. Though the changes in this legislation are no guarantee, it is my hope that the measure makes the possibility of new jobs that much more likely.
This new law may make minor changes, but it could mean big things for Morley and other businesses considering Michigan as a place to expand or locate. With the uncertainty of our economy, it is important to seize every opportunity for jobs.
Roger Kahn, M.D.
State Senator, 32nd District
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