LANSING – The following is Fund MI Future Executive Director MoReno Taylor II’s response to the SOAR reform bill package, which was the subject of testimony in a Michigan Senate committee hearing today:

Democratic State Senators introduced a package of bills last week intended to reshape the way we approach economic development in Michigan. I’ve been speaking to residents and community leaders all across this great state since I took a job leading the Fund MI Future coalition in January, and one thing has become abundantly clear: we need structural revenue reform, which means a holistic re-imagining of tax rates for the wealthy and corporations, and a new approach to economic development that doesn’t rely on tax breaks. The way we are currently funding local governments and public services is NOT working for the majority of Michiganders. 

The SOAR Fund package introduced at the beginning of the year was a blow to many in the progressive community who hoped that our hard-earned tax dollars would be spent on public goods and services. Over the past three decades, Michigan has systematically disinvested in local communities and public infrastructure while at the same time subsidizing some of the most profitable multinational corporations in the world. Corporations contribute only 3.5 percent to Michigan revenues, while the people of Michigan dole out hundreds of millions of dollars in tax dollars to corporations every year. We must end this cycle of corporate welfare and appropriate those tax dollars back into our communities and the people of Michigan. 

By restructuring SOAR into the Make It In Michigan Fund and creating the “Michigan 360” fund, Michigan’s Democratic Senators are showing that they understand the urgency involved. I applaud local governments all across this state for finding creative ways to fund public services despite a perennial revenue shortfall and ever-changing economic environment, but it’s no secret that Lansing has forced them to adapt to continually decreased funding, year after year. 

According to a recent CRC Report called “Michigan’s Path to a Prosperous Future”, we need “bold and broad action.” That starts with acknowledging that the way we are currently operating is not working and figuring out real solutions to put our state on more solid footing. Using 20 percent of subsidies awarded to address local community issues and “aligning our economic development tools around the prosperity of residents” is a big step in the right direction, and we look forward to more bold initiatives and conversations in the future.

Fund MI Future is a joint effort of grassroots community organizations, labor unions, and policy/research experts working to create shared prosperity for all Michiganders by fully and equitably funding our public services like schools, roads, and clean water.

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