LANSING ? Gov. Rick Snyder will soon announce the break-up of the Department of Energy, Labor and Economic Growth and movement of economic development functions to the Michigan Economic Development Corporation, Gongwer News Service has learned.
Multiple sources told Gongwer of the impending changes to one of the state’s largest and most critical departments. Snyder communications director Geralyn Lasher confirmed late Tuesday night that Snyder would issue the executive order within a week. Asked about the transfer of economic development functions to MEDC, Lasher said, “I think that’d be fair to say.”
According to the sources, what remains of DELEG, which will be renamed, will focus on licensing and regulation. Snyder also will announce a new director for that department in tandem with the executive order.
Sources said that during the transition period, officials urged Snyder to split up DELEG and centralize the state’s economic development focus.
“If you look at the org chart of DELEG, it is a very large agency, and that’s why we wanted to take some time to look at the details,” Lasher said of the process to reorganize the functions within the department.
If the MEDC does take over all economic development functions, it would mean the new MEDC President and CEO, Michael Finney, will have the same degree of oversight on economic development that Doug Rothwell had under the administration of former Governor John Engler. Rothwell, executive director of Business Leaders of Michigan, is also chair of the MEDC’s executive committee.
DELEG is currently being administered by Acting Director Andy Levin, an appointee of former Governor Jennifer Granholm. It is one only two departments where the governor appoints the director that Snyder has not made major changes to or named a permanent director since his election in November.
The Department of Corrections is the only other department without a new permanent director and is now under the direction of Acting Director Dick McKeon.
Under Granholm, DELEG was initially given a major focus to deal both with concerns labor had with Engler’s regulation of their issues as well as promote economic development. She had combined the department from the old departments of Career Development and Consumer and Industry Services while also placing a number of autonomous agencies under its watch.
She also eventually gave the department the primary emphasis to promote alternative energy development.
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