State Bill of the Month — October 2023: Michigan SB 520

TPA’s State Bill of the Month for October 2023 is Michigan’s SB 520, an act relating to economic development and eliminating the Strategic Outreach and Attraction Reserve (SOAR) fund, introduced by State Sen. Thomas Albert (MI-18), alongside State Sens. Michele Hoitenga (MI-36), Joseph Bellino (MI-16), Jonathan Lindsey (MI-17) and Lana Theis (MI-22). This legislation would eliminate the Strategic Outreach and Attraction Reserve (SOAR) Fund. This economic development fund has not been an effective use of taxpayer money.  

Background:

The SOAR Fund was created in 2021 to encourage investment in Michigan’s economy. Since the creation of SOAR, $2 billion has been allocated and it is slated to receive even more money due to a corporate income tax designation.[1] 

Economic development funds have a bad return on taxpayer investment and these incentives and subsidies are antithetical to the free market. Such funds would not be necessary if there were sufficient market demand for the sorts of projects the fund proposes.

SB 520 is now in the Michigan’s Senate Committee on Economic and Community Development.

Michigan legislators are fighting to reduce taxpayer waste and abuse by reigning in economic development projects. Taxpayer incentives for private companies is nothing more than corporate welfare. 

SB 520:

As part of a broader bill package, SB 520 would eliminate the Strategic Outreach and Attraction Reserve (SOAR) fund and rededicate those funds back to the general treasury. There, the money can be used towards other, more efficient projects. It can also be used to ease the tax burden on Michigan residents. These funds will go far further in protecting taxpayers in the general fund, than in a bloated development fund like SOAR.

This is why TPA is proud to make SB 520, introduced by Sen. Thomas Albert (MI-18), alongside State Sens. Michele Hoitenga (MI-36), Joseph Bellino (MI-16), Jonathan Lindsey (MI-17) and Lana Theis (MI-22), its Bill of the Month for October 2023.

[1] https://www.youtube.com/watch?v=CwzcJAQWmnw