Gov. Gretchen Whitmer rips Michigan Republican pork deals; says she can't block them

Gov. Gretchen Whitmer said Michigan residents would likely prefer tax dollars to be spent on roads, clean drinking water and other priorities than pet projects of legislators, like a $1 million grant made in December’s lame-duck legislative for the Lowell Showboat.

Feb. 12: Whitmer changes course, blocks $10M grant that helps former GOP chair

GRAND RAPIDS– Michigan Gov. Gretchen Whitmer said Friday she was frustrated with over $100 million in pet projects approved just days before she took office – but said she can do little to halt the spending.

Michigan legislators, on the last day of the lame duck session in December, approved a $1.3-billion spending bill that included $115 million for mostly small projects across the state that were largely championed by Republican senators and representatives.

She pointed as an example to a grant for the Lowell Showboat, which will get $1 million in taxpayer money. In a gathering at the Michigan Press Association on Friday, Whitmer said voters would “prefer” if the state was spending money on roads and ensuring quality drinking water.

Related: Michigan lawmakers dole out $1B in wee hours, lame-duck spending spree
Related: Budget tests Gretchen Whitmer’s promise to repeal Michigan pension tax

Whitmer said she directed her budget office to look into the propriety of the lame-duck spending. She said the office concluded that the projects – of which then-Republican Gov. Rick Snyder vetoed but one – must be funded.

“It’s already law,” Whitmer said “All the legal analysis has come back that for the most part we have to abide by them.”

Bridge Magazine has reported that one of the controversial grants involved $10 million to bring water and sewer lines to largely vacant land near Ann Arbor owned by a company headed by Bobby Schostak, a former chairman of the state Republican Party. (It was the second $10 million grant made to the company.)

The township had not asked for the money and it’s advocate in the legislature was not immediately known – most grants had one. It was not until this week that Arlan Meekhof, the Republican Senate Majority Leader during lame duck, conceded that he was the main proponent for the award, even those his district is more than 150 miles away.

After reviewing the lame-duck grants at the governor’s request, the state department of technology, management and budget decided the legislation and the grants were valid and would be funded, DTMB spokesman Kurt Weiss confirmed.

Feb. 27, 2019: Seven things to know about Gov. Gretchen Whitmer’s debt-free college plan
Jan. 22, 2019: Whitmer administration changing tone around Michigan marijuana regulation

“The current governor doesn’t like it but we’ve (concluded) we need to live up to the letter of the law,” he said.  

A number of the grants were for parks and museums and others for roads, bridges and dams. Almost all came with a request from a specific lawmaker; the Salem Township grant that benefitted Schostak’s company did not, raising questions among the state’s budget staff, Weiss said.

“We know there are some grants that are problematic and there are concerns that will have to be addressed when it comes to making the best use of taxpayer dollars, and so we will be taking measures to ensure the money is spent in the most efficient and effective manner possible,” Weiss said in an email to Bridge.

Schostak, chair of the state Republican Party from 2011 to 2015, is CEO of Schostak Brothers & Co., which has spent over $28 million acquiring more than 560 acres in Salem Township along M-14 near the Gotfredson Road exit.

Related:  Analysis: Eight ways Gretchen Whitmer vows to improve Michigan
Related: Michigan Republicans kill Gov. Gretchen Whitmer’s environmental overhaul plan

The land is largely vacant though the township has anticipated commercial and residential development in the area. It has long held, however, that developers would bear the cost of bringing water and sewer to the area.

But the Schostak company has sought government grants before, in 2009, and in 2017 when the legislature awarded the first $10 million. The earlier grant was a last-minute add to the state budget bill and was not part of any committee discussion, nor was the second $10 million grant in December.

The Michigan Economic Development Corp. was directed by the legislature to handle the grant. In a statement to Bridge, the MEDC said the grant was not part of any existing program offered by MEDC, which promotes business across the state, spokesperson Kathy Achtenberg said.

Has this story impacted or informed you about Michigan? Please support our work.

No other news outlet is dedicated to providing the same level of in-depth, data-driven coverage of Michigan’s issues as Bridge Magazine. Any donation between now and December 31, will be matched dollar-for-dollar, thanks to our generous partners. Become a Bridge Club member and help our reporters get the resources they need to ramp up coverage during a critical election year. Join the Bridge team today.

Pay with VISA Pay with MasterCard Pay with American Express Donate now

Comment Form

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Comments

Kevin Grand
Fri, 02/01/2019 - 7:08pm

Defund the MEDC.

Reprogram that money towards roads.

Future problems solved.

Hal
Sat, 02/02/2019 - 8:53am

Anything passed by the legislature can be undone by the legislature. Or am I missing something?

Darrian Davis
Sat, 02/02/2019 - 1:30pm

I agree, why can't the legislature undo what the legislature did - especially when it appears to be a lot of improper moves, cronyism, and even personal gain.

Kevin Grand
Sat, 02/02/2019 - 5:46pm

Legislation, yes.

Appropriations, as is my understanding...(sadly) no.

David Andrews
Sun, 02/10/2019 - 8:07am

Remember, the legislature didn't change - the only thing different is the one holding the veto pen.

Matt
Sat, 02/02/2019 - 11:51am

Does this mean Whitmer is really a fiscal conservative and oppose all these government give-aways and sweetheart deals it the future? Or is it just who is getting the taxpayer money?

Kevin Grand
Sun, 02/03/2019 - 10:09am

Crony capitalism needs to get squashed regardless of whose has got their grubby hands in the general fund.

On an interesting side note, guess which position the sponsor of the placeholder in THAT particular appropriations bill (hint: she got crushed at the ballot last November) is running for at the end of this month?

I'm honestly surprised that The Bridge hasn't picked up on that story yet?

Steve
Sun, 02/03/2019 - 1:04pm

That is a misleading headline. The word "won't" implies that Whitmer has has the ability but chooses not to block the deals. So the article either needs to show she does in fact have that ability or the headline needs to be changed from "won't" to "can't". One wonders if this is an innocent mistake or intentional misrepresentation.

Judy
Mon, 02/04/2019 - 8:03am

Thank you for making this point. It’s not the first time The Bridge headlines have unfairly cast blame on Whitmer. Headline writers are different from reporters. Watch them, please.

PW
Tue, 02/05/2019 - 12:23am

Exactly my thoughts.

Michael B.
Sun, 02/03/2019 - 3:00pm

10 million to Schostak Brothers & Co., not a bad haul for undeveloped land.

Mark Sloan
Tue, 02/05/2019 - 11:37am

The Michigan GOP is bent.

Larry Shaheen
Wed, 02/06/2019 - 11:14am

Remember all these things next time you vote.!!