Are Michigan Legislative Republicans Stalling The Venture Michigan Fund?

LANSING ? Is the Michigan Republican-controlled legislature trying to kill the $150 million Venture Michigan Fund and give Democrat Gov. Jennifer Granholm a black eye? Some Fund board members seem to think so.

Before and after a meeting last week that coincided with the Michigan Growth Capital Symposium in Ann Arbor, several Fund board members told Mitechnews.Com that key Republicans are slowing legislation needed to active the fund, which will invest in Venture Capital companies that in turn invest in Michigan technology companies.

Those board members, who asked to remain anonymous, said Republicans may be trying to defeat the changes to the Fund to hurt Granholm?s reelection bid. If the Fund stalls and dies, the onus would fall on her.

Michigan Venture Fund President Jay Rising, the Michigan Treasurer, said he wasn?t aware of any stalling by legislative Republicans.

?I just don?t know about it,?? Rising said Monday. ?It moved out of the Senate, it wasn?t fully developed and the language has been changed. It?s a unique creature. There?s never been a Fund of Funds this big. I?m confident we?ll get there.?

Dennis Darnovi, press secretary for the bill?s sponsor, Sen. Mike Bishop (R-Rochester), said he hopes to get the bill authorizing some key changes on the governor?s desk by week?s end. Changes to the original legislation include changing the incorporation date from Sept. 1, 2004, to Aug. 1, 2005. The legislation languished awaiting an IRS ruling the Venture Michigan Fund is a non-profit corporation.

Another key change in the new bill would allow the Venture Michigan Fund to employ more than one manager. The current Fund manager is Credit Suisse First Boston.

?Some members of the legislature wanted to mess with the process,? Darnovi said. ?There have been five changes, two survived the committee process. Three did not. There was some debate as to why those three didn?t make it through.?

Darnovi said the two changes that made it through are ones the Governor can understand and people feel comfortable with. The other three proposed changes were technical in nature.

?So people viewed these deletions with suspicion,?? he said.