LANSING – The chair of the Michigan House committee considering Gov. Jennifer Granholm’s proposal to sell $2 billion in bonds to keep and attract technology businesses to Michigan remains unconvinced that the proposal would improve the state’s economy.

Rep. Bill Huizenga (R-Zeeland), chair of the Commerce Committee, said after a Tuesday hearing of his panel that he wants committee members to study three approaches as it reviews the issue.

There is Granholm’s plan (HJR I, HB 4768). Then there is the counter plan from Senate Republicans that proposes the sale of $1 billion in bonds and removes Granholm’s proposal to let the state take an equity position in some of the companies receiving money from the bonds (SJR C, SB 533), but keeps intact the fundamentals of the governor’s plan. Both proposals call for a November vote this year.

But Huizenga said he also wants his committee to examine whether there is another approach that would better address the state’s economic situation.

Labor and Economic Growth Director David Hollister told the committee that the state must act to attract emerging businesses. Doing so would diversify the state’s economy and keep Michigan from falling behind, he said.

Tuesday’s hearing plowed little new ground. Hollister, Treasurer Jay Rising and Jeff Mason of the Michigan Economic Development Corporation gave an overview on the proposal, similar to ones given at previous hearings and news conferences.

The most pointed line of question and response occurred when Rep. David Palsrok (R-Manistee) asked the administration officials if the state would be better off taking the $200 million that would be invested through bonds each year for 10 years and instead use that to provide tax cuts. Hollister said improving the tax climate alone is not enough. “I wouldn’t put all your marbles in one game,” he said.

Huizenga said he plans hearings on the proposal for Thursday and Tuesday, June 7. He said he has made no commitment on scheduling the plan for a vote in June. Mr. Huizenga said the issue is a priority, but so is the budget and the question of overhauling the business tax structure.

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