The Michigan Economic Growth Authority (MEGA) credits and film production subsidies are ineffective and actually cost the state jobs, according to a recently released report commissioned by the Michigan Education Association and conducted by the Anderson Economic Group (AEG).

I have had concerns about the effectiveness of these programs all along. That is the reason I have been fighting for transparency/disclosure in the MEGA and film refundable credits. In May 2009, AEG issued their first report on the credits, in which they focused on the information barrier that inhibits policymakers from evaluating the programs. Importantly, this new study reveals a lack of systematic evaluation on incentives. The Anderson report is an attempt to put forth such a framework.

While I was recently successful in bringing transparency to the MEGA program, clearly much work remains on full disclosure in our tax credits because the House has yet to take a vote on my refundable film credit transparency bill.

As a watchdog looking out for taxpayers, I am glad that for the first time an independent report has done a vital cost-benefit analysis of Michigan’s business tax credits.

Its results bring more credence to my long-held belief that the state would have done better under another form of economic development. In fact, eliminating Michigan’s ineffective, refundable tax credits and replacing them with a broad-based business tax reduction would spur more small businesses to retain and create jobs for our workers and bring in more tax dollars to our state and local governments.

To understand the cost-benefit of the tax credits, the effects of each program were measured against what might happen if the program was scrapped and replaced by a broad-based tax cut of equal value. To be labeled ineffective, a tax credit had to be found to have a negative impact on job creation and generation of new tax revenue.

According to the study, three of the state’s targeted business tax programs – including the film and MEGA credits – had the effect of reducing employment in Michigan by 25,000 jobs and resulting in $85 million in less tax revenue when compared to an alternative policy.

Considering that our unemployment rate continues to be the nation’s highest – and has been for four consecutive years – I agree with the study’s statement that the reported success of the tax credits “reveals a systematic weakness in Michigan’s business tax system.”

Michigan job providers and working families are struggling to make ends meet. The state is trying to balance a $1.4 billion deficit. And thousands of Michigan residents are looking for work. This landmark study should be a wake-up call to lawmakers that the status quo isn’t working.

In my last year as your senator, I will continue to work diligently to enact sound economic policies that create long-term jobs for Michigan workers.

Senate Finance Committee moves taxpayer-friendly legislation

The property tax appeals process will become more fair and smooth for property owners if Senate Republican legislation recently approved by the Senate Finance Committee becomes law.

Many Legislators have heard from their constituents that the short current deadline gives them little time to weigh making an appeal. This taxpayer-friendly legislation gives property owners more time to consider appealing and gather the proper information.

Senate Bill 395 would grant taxpayers additional time to prepare to contest their assessments by requiring property tax assessment notices be sent to property owners at least two weeks before the March meeting by the board of review, which is the appeal deadline.

While this modest extension may be a minor inconvenience to some assessors, it may be a saving grace to a struggling homeowner.

More than $258,000 returned to state during my Senate tenure

As a state senator, I have been able to save more than $258,580 in my office and committee budgets by being fiscally responsible. Since joining the Michigan Senate in 2003, I have returned $246,943 in savings from my office and staff budget and $11,639 from my Senate Finance Committee allocation. This includes a total of $45,497 that I returned in 2009.

These savings could not have been achieved without the input and cooperation of my hard-working staff. We have, once again, made smart spending decisions to cut operating costs while maintaining quality service to the constituents of the 15th Senate District.

As chair of the Senate Finance Committee, I strive to set an example of fiscal responsibility by doing my part as a legislator to reduce spending in these difficult times. Saving taxpayer dollars in my office and committee budgets demonstrates a shared effort to reduce the cost of government. Having realized these savings in my office budget, I will work to achieve similar cost savings throughout state government.

For more information, visit my Web site at www.SenatorNancyCassis.com. Or contact me toll free at 1-888-38-NANCY.