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State lawmakers have introduced bills to rein in the state’s liability for Michigan Economic Growth Authority credits.
The MEGA program came under fire after it accumulated a $9.4 billion liability in the state and caused a budget shortfall.
House Democrats Andy Schor of Lansing, Jim Townsend of Royal Oak and Bill LaVoy of Monroe introduced a five-bill package Thursday aimed at keeping MEGA tax credit liability from growing.
The bills would restrict new MEGA credit contracts and any amendments to existing contracts while also implementing more accountability and transparency measures.
Schor says while the MEGA credits were created to bring jobs to Michigan, the state needs to balance increased credits against deficit state budgets that lead to cuts to schools, public safety and other important services provided by the state.
Last month, Republican lawmakers introduced bills that would prohibit MEGA tax credit extensions. A hearing on those bills was held Thursday in the House Tax Policy Committee.
