LANSING – Although getting off to a rocky start, the creation of the joint legislative committee to oversee the 21st Century Jobs Fund is a help to the people approving the allocation of the millions of dollars that will be used to diversify the state’s economy, Michigan Economic Development Corporation CEO James Epolito said Thursday.

“That process is an open book,” he said. “We welcome the oversight. At the same time, we’re going to run hard and fast. At the end of the day, we are all going to have to defend (the program).”

During its inaugural meeting, co-chair of the committee, Sen. Valde Garcia (R-Howell) said lawmakers do not want to fall short of meeting the law and spirit of the new fund as has happened in the past. “We’re not here to interfere. We expect to work in partnership with you.”

Co-Chair Rep. Bill Huizenga (R-Zeeland) said one of the important facets of the legislation was to provide for funds to rollover each year so that officials would not be forced to use the money or lose it.

With that said, Jeff Mason, MEDC senior vice president of technology, gave a presentation on the process of allocating money in the first year, saying that Friday is the deadline for letters of intention, with 166 proposals coming into the office so far. Given human nature to wait until the last minute, Mason said he expected upward of three times that amount to roll in by 5 p.m. Friday. Monetary awards are scheduled to be approved on July 25.

Epolito said that the key to the program’s success will be to invest in projects that are at the tipping point of commercialization and have the state follow through with nurturing those projects along the way. Ensuring that benchmarks are met – such as added jobs in the state – will also be crucial, he said.<>

But while lawmakers said party-affiliation will be put aside as everyone works to boost high-tech jobs in the state, there was a small bump in the road for cooperation between Republicans in the legislative majority and the MEDC with Rep. Jack Brandenburg (R-Harrison Twp.) questioning why it took Mr. Epolito more than two months to respond to how many administrative staff would be added to deal with the 21st Century fund, what their salary and benefits will be and their job duties will entail.

Of the $394 million proposed to be released from the fund, $16 million is slated for administrative costs to cover nine staff related to the Technology Tri-Corridor that was not covered in the budget along with an additional seven new staff members. Additional outside consultants will also be paid under that allocation, although how many will be required is still unknown, Epolito said. “When you look at the breadth of the operation…it’s a lean operation.”

Epolito apologized for the delay in information and said that he would have that available for the committee in the next three weeks, when the MEDC will be scheduled to come back for testimony. State Treasurer Jay Rising is expected to give testimony before the committee next week.

During questioning, Rep. Leon Drolet (R-Clinton Twp.) asked what the peer review process would be for applicants, to which Mr. Mason said an applicant can select which reviewers they do not want to see their proposal, such as a competitor, but that three separate reviews of the business plan will be conducted with four to six reviews conducted during the interviewing stage, slated for April, May and June.

Committee members also questioned how quickly funding would be dispersed to promote the state’s tourism industry, saying that the intent was to spread $15 million out over five years. Mr. Epolito said he believed it was supposed to be released over a three-year period, adding that other states competing with Michigan spend upward of $25-50 million in tourism campaigns each year, compared to what will be $3 million a year for Michigan.

While the 21st Century Jobs Fund passed under legislation last year, one remaining bill regarding the fund held up in the House, SB 906, would hire a chief compliance officer under the direction of the State Administrative Board. The Legislature is still questioning whether the bill needs to be passed in order to ensure the three fund oversight boards can operate properly.

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