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Incentivizing new job growth

Recently, MCCA pursued legislation to create a program called the Michigan New Jobs Training Program (MNJTP). The MNJTP was designed as an economic development incentive and aimed to authorize community colleges to issue debt on behalf of employers that are creating new jobs and/or expanding operations in Michigan for the purpose of funding job training. Once they identified this program, they engaged MLC to build messaging and a strategic plan. 

 

The Challenge

Legislators initially perceived the bill as having the potential to require state funds; however, there was no true cost to the state by implementing this program. 

Outside of educating officials that this program has no cost implications to the state, MLC then set its sights on familiarizing the Michigan Economic Development Corporation (MEDC) with the scope of the program to ensure the organization understood it would not adversely affect its programs and goals. MLC also worked with Governor Granholm to demonstrate the ways this program would allow for business to stay in Michigan. 

The final hurdle came in identifying bi-partisan legislators who would serve as champions on the issue. Their support would be a critical component to helping convince their colleagues that it was the right program, introduced at the right time to save and create jobs in Michigan. 

 

The Solution

MLC lobbied for this issue and laid the groundwork for MCCA to educate those at the Capitol. MLC’s access to legislators and its deep relationships proved to be an incredible asset to the MCCA, and it resulted in a timely response to the issue. 

Upon laying the groundwork, MLC identified the right bi-partisan leaders, who brought both sides of the aisle together in an effort to grow a trained workforce in communities across Michigan. 

 

The Results

All of this hard work in navigating the Capitol resulted in the acceptance of the program, making Michigan only the second state in the nation to enact this type of program. Now community colleges in Michigan are able to contract directly with local business leaders to offer new jobs and train the appropriate employees. The payment on the debt is paid by capturing the state income tax withholding paid by the employer associated with the new employees’ wages and redirecting it to the college, instead of the state until all training costs have been paid off.

As a result of launching the program, Michigan saw $76M of additional employee earnings, directly attributed to 2,600 new jobs created in 2012. The long-term state impact is slated to increase to $143M in earnings for new jobs and over 4,700 new jobs created by the MNJTP annually in the state of Michigan.

For more information on how MLC can help you bring your programs to light, contact us today.  

As a result of launching the program, Michigan saw $76M of additional employee earnings, directly attributed to 2,600 new jobs created in 2012. The long-term state impact is slated to increase to $143M in earnings for new jobs and over 4,700 new jobs created by the MNJTP annually in the state of Michigan.
- Brendan Ringlever