Bipartisanship in Lansing can be hard to come by. But both Democrats and Republicans have well-placed and growing concerns about Michigan’s corporate welfare program and the true return on investment from the generous subsidies the state has handed out since 2021.

As part of an economic growth overhaul, last week House Republican Leader Matt Hall and the GOP caucus unveiled plans to increase oversight of the Strategic Outreach and Reserve (SOAR) Fund — the state’s $2 billion incentive program — through more accountability and performance-based funding metrics.

The legislation is expected to be introduced Thursday.

The proposals offer welcome adjustments to Michigan’s corporate subsidy program, important considering $500 million is being deposited every year into the fund until fiscal year 2027.

Gov. Gretchen Whitmer said she wants to make the funding sustainable and use the program as a driving force for economic growth.

SOAR should be used to stimulate such growth. But it can’t be the only tool the state employs to ignite job creation and a competitive, broad-based business environment.

As part of their reforms, Republicans propose the state should audit payouts from the SOAR fund and reclaim money when the deals don’t deliver on their promises. Unused SOAR grants would be restored to the general fund, not the MEDC.

That is a much-needed provision to ensure companies who want to receive incentives from the state keep their promises.

In 2023, Michigan pledged $335 million in economic development incentives to 83 companies that planned to create 11,408 jobs. That comes out to $29,000, per job, according to a Bridge Michigan analysis.

The median pay of those jobs is just more than $50,000 — so half the promised positions will pay less than that. That kind of data raises questions about the logic of the program as it is today.

In total, 40% of jobs created by the SOAR Fund pay less than the state’s average wage.

Republicans also recommend the state increase transparency on paused projects and require votes by the entire Legislature, rather than just members of the appropriations committee, on large-scale projects funded by SOAR.

Their proposal would also prioritize funding for small- and medium-sized businesses and streamline permitting between state and local governments to expedite their projects. The corporate subsidy program has tended to focus on very large companies that promise high-tech or high-wage jobs. But growing businesses of all sizes that are already in Michigan is a worthy cause, too.

Democrats argue the lack of infrastructure and amenities in communities — such as transit, childcare and housing — make Michigan less competitive as a place to live and work.

They have also introduced measures to improve accountability of SOAR, but alongside other proposals that would expand government through new spending that has little to do with actual job attraction.

Still, lawmakers should work across the aisle on issues where they can. Michigan’s corporate incentive program’s focus should be providing reasonable subsidies that spur economic growth that benefits the host communities. It must be executed with safeguards to ensure taxpayers see a return on these investments.

— The Detroit News