MEDC Adopts New Budget Plan

On Tuesday, the Michigan Economic Development Corporation’s (MEDC) executive committee officially adopted a resolution accepting the proposed budget changes that were announced this August. With this proposal, more than $129.86 million is being cut and 65 full-time employees are being let go. These cuts are a result of a reduction in both state and corporate funding.

Salaries and benefits will decrease by about $10.5 million and programs will lose $124.9 million in funding. However, marketing and administrative costs will see an increase. During this process the MEDC was forced to draw on its “rainy day fund”, an account that went from over $30 million to $18 million. Talent and Economic Development Director Steve Arwood gave no specifics about which programs will be cut or who the 65 employees will be. Mr. Arwood commented that employees will be notified before the end of the fiscal year.

The MEDC plans to reorganize and reprioritize its budget, but will not compromise the company mission. Mr. Arwood commented that it is a difficult budget to work with, but the company will work with what it has. The MEDC budget is currently balanced.

posted by PAA Online , Friday, September 18, 2015 11:08 AM
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