LANSING – House Democrats today sent the "Hire Michigan First" package back to the State Senate after adding key provisions that were stripped by the Senate back into the plan. The plan, which ensures that companies receiving economic incentives hire Michigan workers, was first proposed in the Michigan House two years ago and has awaited Senate action ever since.
"The Senate needs to put the 'hire' back in the 'Hire Michigan First' package," said State Representative Fred Miller (D-Mount Clemens), chief architect of the plan. "'Hire Michigan First' is about standing up for our hard-working residents who helped build the middle class. Taxpayer money should not be used to create jobs for people from other states and countries – it should be used to create Michigan jobs for Michigan residents."
Miller said many key pieces were left out of the plan passed by the Senate in May. The Senate Republicans cut the portion of the plan that would put Michigan to work now by requiring a company that receives a state construction contract to hire 100 percent Michigan workers. The Senate Republicans also created a large loophole for companies receiving incentives to hire out-of- state workers. The House Democrats' plan closes the loophole for out-of-state workers and restores requirements that companies hire 100 percent Michigan workers in order to receive state contracts.
"Especially in these tough economic times, we need to ensure that companies receiving incentives are hiring our workers," said State Representative Judy Nerat (D-Wallace), a sponsor of the plan. "Michigan's working families have been hit hard by downsizing and outsourcing, and our residents deserve the first crack at jobs created by companies that benefit from state economic development programs or tax breaks."
The Senate Republicans' plan also stripped language that created penalties for companies that receive taxpayer incentives to follow state law, such as prevailing wage.
House Democrats accepted some additions from the Senate such as extending the "Hire Michigan First" requirements to the Michigan film incentive tax credits and creating an exemption for projects in border counties to hire workers from bordering states.
"The Senate needs to do more to make this plan effective for Michigan workers and businesses," said State Representative Robert Jones (D-Kalamazoo), Chair of the House Commerce Committee. "The Senate plan doesn't do enough to reward companies that hire Michigan workers or prevent the employment of out of state workers. That's why we have put the teeth back into this plan and sent it back."