LANSING ? Michigan House Appropriations Chair Rep. Al Pscholka and Rep. Mike McCready on Thursday introduced legislation that would fast-track the end of the Venture Michigan Fund, used to invest in Venture Capital companies that then invest in Michigan early-stage companies.
The bills, HB 4195 and HB 4196 , would save $150 million by ending the Venture Michigan Fund before all of the tax vouchers have been used.
The House Fiscal Agency told the House Appropriations Committee last month that Public Act 296 of 2003 created the Early Stage Venture Capital Investment Act, and in 2006, $200 million in tax vouchers were collateralized to provide investment capital.
Now, in that Venture Michigan Fund I, $140 million needs to be paid back during the next three years.
“This fund was enacted with good intentions, but the reality of using Michiganders’ money to buy economic investments just isn’t sound policy or good government,” Pscholka (R-Stevensville) said in a statement. “Venture capital is risky by nature, and state government should not be gambling taxpayers’ hard-earned dollars on such investments.”
The bills would prohibit the use of the remaining $150 million in tax vouchers, halts future financial obligations of the fund, accelerates the end of the program and transfers remaining money to the General Fund.
“Solving today’s problems with tomorrow’s money is rarely a good idea,” said McCready (R-Bloomfield Hills). “House Republicans are working to get rid of arduous programs like this one because they aren’t focused on the needs of Michiganders, who don’t want to put their money in the pockets of venture capitalists.”
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