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Tuesday, 15 September 2015 12:35

MEDC announces layoffs, budget cuts

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The Michigan Economic Development Corporation today announced 65 layoffs and a 27 percent cut in funding, effective Oct. 1, according to multiple news outlets and confirmed to MiBiz by an MEDC spokesperson.

According to the Fiscal Year 2016 budget, the MEDC will reduce its funding from $481.7 million to $351.8 million, while the overall staff will drop from 307 to 242. It was not immediately clear which areas of the state’s top economic development and marketing organization will be affected. A spokesperson said in an email that staffers were told that the cuts would be across the board.

Much of the MEDC’s budget shortfall is attributed to a loss of shared revenue with the Gun Lake Casino in Allegan County, owned and operated by the Gun Lake Indian Tribe. According to a Detroit Free Press report, the Tribe began withholding payments to the MEDC on June 1 over a dispute regarding Internet gaming regulations. The withheld payments amounted to a $7 million budget shortfall at the time that it was expected to rise, according to the Free Press report.

The MEDC operates programs such as the Pure Michigan marketing campaign, the Michigan Strategic Fund and multiple business attraction and retention programs.

Read 1655 times Last modified on Monday, 28 September 2015 10:47

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