LANSING – With little fanfare Wednesday, the Michigan Legislature, reconvening for the first session of 2006, adopted a concurrent resolution creating an oversight committee to look after the 21st Century Jobs Fund.

SCR 38 was the only action taken by both chambers during the day, setting the stage for what could be a political battle over how the state’s securitized tobacco funds will be distributed for investments into the high-tech sector.

Already legislative Republicans and the administration are in disagreement on whether another board should be involved in overseeing what actions are taken in regard to the funds. There are three boards, the Strategic Economic Investment and Commercialization Board, the Strategic Fund Board and the Tobacco Settlement Finance Authority, which will regulate the transgression of the money from the settlement to a Michigan technology businesses, primiarly in life sciences.

Liz Boyd, spokesperson for Gov. Jennifer Granholm, has said that Senate Majority Leader Ken Sikkema (R-Wyoming) and House Speaker Craig DeRoche (R-Novi) are each allowed to appoint one person to the three committees, but while Sikkema has, DeRoche has not provided names for his appointees. Before another board is to be created to oversee the funds, Boyd said, DeRoche should feel compelled to enter his appointee choices. A spokesperson for DeRoche has said he has submitted one name, but is working on selecting his two other appointments.

Republicans argue that another board is needed to give the Legislature updates on the fund’s actions and ensure political persuasion is left out of the process.

“With over a billion dollars in taxpayer money being appropriated through grants and loans, we must take unprecedented precautions to ensure that these investments are free from political influence,” DeRoche said this week.

Sikkema agreed, saying when $1 billion is involved there is no such thing as too little legislative oversight. He also said the additional committee was needed after experience showed, following the 1988 and 1998 environmental bond issues, that the Legislature was shut out of oversight.

Under wording in the resolution, the legislative committee will oversee the operations and activities of the Michigan Strategic Fund, the Michigan Strategic Fund Board and the Strategic Economic Investment and Commercialization Board, as well as the distribution of money from the Trust Fund and Investment Fund.

The resolution also allows for up to $10,000 to be spent for the committee to carry out its duties, with additional funds available per the approval of Sikkema and DeRoche.

Co-chairs of the committee are Rep. Bill Huizenga (R-Zeeland) and Sen. Valde Garcia (R-Howell). Other members are Rep. Leon Drolet (R-Clinton Twp.), Rep. Jack Brandenburg (R-Harrison Twp.), Rep. Andy Dillon (D-Redford), Sen. Jud Gilbert (R-Algonac), Sen. Mike Bishop (R-Rochester) and Sen. Michael Switalski (D-Roseville.)

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