By BILL O'BRIEN
bobrien@record-eagle.com
August 31, 2008 12:00 am TRAVERSE CITY -- The state's 21st Century Jobs Fund funnels tens of millions of public dollars to private companies, universities and research groups for high-tech initiatives to help diversify Michigan's economy. But some in northern Michigan question whether the program tilts too heavily in favor of southeast Michigan companies and research facilities, and whether outstate projects are getting their fair share of the $2 billion pie. State Rep. Dave Palsrok said he and other state lawmakers are concerned about a "southeast Michigan bias" in the program, after a wind energy proposal in Manistee this month failed to gain a $2 million low-interest loan from the state. "There's been great concerns about the 21st Century Jobs package and where it's been spent (and) it wasn't being spread around the state," said Palsrok, a Manistee Republican. The Jobs Fund is a $2 billion, 10-year program proposed by Gov. Jennifer Granholm and approved by state lawmakers to expand and diversify the state's economy away from the automotive industry. Targeted technologies include life sciences, alternative energy, advanced automotive and manufacturing and homeland security. The state is in the midst of a second round of funding for grants and loans through the program. It received almost 120 proposals and selected 52 for further consideration, said Bridget Beckman, a spokeswoman for the Michigan Economic Development Corp., the agency that administers the fund. Second round awards will be announced in October. A 2007 analysis by the state Senate Fiscal Agency of the first round of Jobs Fund awards showed that about half the funds, around $68 million, went to companies in Washtenaw County and to the University of Michigan in Ann Arbor. Ingham County received more than $16 million, including several grants to Michigan State University, while another $17 million went to entities in Wayne County. Those three counties tapped the fund for about $102 million, more than 75 percent of the total distributed. Four awards that totaled just over $3 million were approved for companies outside southern Michigan, including two in the Upper Peninsula and one in Mason County. Tellurex Corp., a manufacturing company in Traverse City, received a program grant for $1.26 million. An Ann Arbor consulting firm reviews and rates 21st Century Jobs Fund applications on behalf of MEDC; they're subsequently analyzed by experts from across the country. "We have an unbiased scoring system that says the highest scores are going on," said Alissa Roath, an executive assistant at the National Center for Manufacturing Sciences in Ann Arbor. Ratings are based on specific criteria, including the business plans presented, technology used and jobs created, she said. It's not unusual for southeast Michigan to gain the lion's share of awards, she said, because of the number of high-tech companies and venture capital firms there. "I don't think location has anything to do with it," Roath said.
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