Lookee here, the foundation to create more jobs.
A new, state-backed fund designed as a catalyst to attract more venture capital for growing young technology companies in Michigan has raised $200 million and is ready to start investing, Gov. Jennifer Granholm is to announce today.
The Venture Michigan Fund I, to be managed by Credit Suisse's Customized Fund Investment Group, won't invest directly in companies. Rather, it will invest in other venture capital funds that have a presence in Michigan and that target investments in Michigan-based start-up companies engaged in research, technology, and new product development.
Michigan has been a backwater for venture capital investing compared to VC hotbeds such as California and Massachusetts. As a result, promising research that begins at Michigan universities or companies often ends up being commercialized by entrepreneurs and companies that leave the state to follow the money.
Venture capitalists often like to have their pet projects located nearby.
To keep more smart people and promising young companies in-state, the enabling legislation for the Venture Michigan Fund requires any other VC fund that wants to draw on the Venture Michigan Fund to invest a big chunk of money in Michigan companies.
Investments will benefit a variety of emerging technologies targeted by the 21st Century Jobs Fund, including advanced manufacturing, alternative energy, health care and the life sciences, homeland security and information technology.
And while Granholm was working at something that will bring more jobs, DeVos was out mouthing the usual platitudes. From Lansing-
DeVos said if he's elected governor, companies such as Franchino Mold and Engineering will fare better in tough national and international competition.
"This company will find a better environment," he said. "What we can do is create an atmosphere in which it can succeed."
Dick never says exactly how he is going to do that, unless creating "an atmosphere" means driving down wages for American workers.
The next part of the story is crucial and goes right to the problem, a problem that Dick gladly helped create.
Franchino Mold and Engineering Vice President Dave Churchill said the company has streamlined in recent years, reducing employment from 135 to 85. He said the company faces challenges with rising health care costs, a skilled labor shortage and tough competition with China.
"We're competing against people in China who are making $10 a week," he said.
Bingo.
Dick knows all about creating jobs in China. He even got a big tax break to do so.
Did he tell that to the workers he spoke with yesterday? My guess is no. He'll just surprise them later with the new "atmosphere" of low wages and no benefits. After all, they can always get another job, right?
In Battle Creek, Dick was dodging more questions. He sure has the "politician speak" down.
As part of his four-day tour through Michigan after Saturday's state party convention, the Republican was in Battle Creek touting his run for governor and skirting the occasional question.
During an informal discussion, nursing home administrator Donna Mahoney asked DeVos about state money for the facility. Specifically, she wanted to know if DeVos would maintain its current funding level.
While DeVos praised the facility and its programs, he came short of saying dollars were guaranteed.
"We can only do as much as this state's economic growth can allow ... ," he said. "The issue facing us is to be able to get our economy moving so we can invest in these kinds of programs going forward."
Mahoney was hoping for a more direct reply.
"I would have liked him to say he would continue to honor the commitment," she said, referencing state dollars. "I didn't get exactly the direct answer I wanted."
Don't hold your breath waiting for direct answers from Dick. They will not be forthcoming.
And neither will the money for your programs, either. Ask Dick how he will replace the $2 billion that was just cut, you will probably get the same answer- "tax breaks first, trickle down later".
You seniors will just have to wait.