However, we need to think much broader and much more long term than helping the “next hot start up”. Last week the Wall Street Journal ran a special edition on successful regional economic development. They selected seven cities in the world to focus on and our own Kalamazoo, Michigan was right there on the cover!( Hat’s off! Kalamazoo!)/. Thanks to the long term thinking and generosity that created the Kalamazoo Promise, that region is attracting new business. But far more important to our future than the average run of the mill tax break or venture capital start up fund, the reason for the growth is directly tied to the promise of education and the ability of this draw to bring in families that are focused on the values that will sustain true economic investment and long term capital development.

While I commend the Governor and legislature for having the confidence to invest in new business, I believe our State would boom if we could figure out how to take the model of Kalamazoo and create the Michigan Promise.

Now that would be an investment!

I can tell you, based on the private business owners I work with every day, there is NO FUNDING available for distressed firms in Michigan. We spend more than half of our time contacting sources outside the state for our clients, because there are no longer any sources in Michigan. Even the out of state firms that used to be helpful have pulled out because they feel there is no support for them to attempt to help distressed firms here.

Why doesn’t the governor set up a distressed business fund? That sort of organization would be more to the point than this hooye of a council.

Give businesses a shot at a simple $50,000 or $100,000 line of credit. A few million dollars could fund hundreds of businesses and save thousands of jobs. Those jobs are going away otherwise. Some of the companies that are still afloat could make a go of it now, with a little cash flow assistance.

If anyone wants a list I can give you a list of firms to address, contact me.

If private venture capital firms (and other private financing sources) have decided to not invest in these companies, what makes the state think it knows better?

If the subsidized firms haven’t exhausted all potential sources of private funding, why not?
Do they just see the state as a big pile of cash that’s easier to tap into?

Because other states are willing to risk public employee pension dollars this way, does not necessarily mean it’s a worthwhile idea.

As a taxpayer, I know full well I’ll be asked to cover any pension-fund damage caused by this foray into the venture capital business.

The state would achieve better results by providing an improved business climate through reduced taxes and regulation; and then just staying out of the way!