Posts Tagged economic development corp
Posted by in Chrysler Magazine on July 10, 2011
The automotive industry has been smoldered by different types of scorching pandemonium in the past six years – plant closures, job cuts, ailing automaker’s reputation and vanishing confidences. Moreover, the state’s famished financial system is expected to be significantly hurt by the predicted GM-Chrysler merger.
State officials also expect that job losses and plant closures would continue to increase. This could trigger the decline in income and property tax collectibles and business tax revenues. “Clearly, it’s going to have a negative impact losing all those high-paying jobs,” said state Treasurer Robert Kleine. “Without doing a study, it’s difficult to say how much.”
Michigan is battling with an $800-million-plus deficit this year. The said figure could eventually drill a bigger hole in the state’s budget for 2008. Kleine said that there is little the state can do to head off a merger. “There’s not too much we can do about the business decisions of private companies,” he said. Kleine added that there has been some talk about setting up special funds for displaced workers who need retraining or who want to start new businesses should there be layoffs or buyouts.
James Epolito, the chief executive officer of the Michigan Economic Development Corp. (MEDC), said the state has not been privy to any GM-Chrysler merger talks. “We have not been in any direct discussions of one joining the other,” he said. “From my standpoint, it’s speculation at this point. Everything is on the table and everything is a possibility.” Read the rest of this entry »