Michigan lawmakers finalize $247M in state subsidies, minus copper mine money

• Senators panel OK’s $247 million in incentives but left out dollars for a controversial Upper Peninsula copper mine project
• It’s the only thing Democratic lawmakers have accomplished so far Wednesday during what could be a tumultuous final week of session
• Whether the mine funding could return to the committee for a vote this week remains unknown

LANSING — Members of the Senate Appropriations Committee on Wednesday gave final approval to $247 million in taxpayer funds to subsidize projects spearheaded by the Dow Chemical Company, Detroit Diesel Corporation and the University of Michigan.

But Democrats who control the panel did not vote on another $50 million House lawmakers had approved last week for a proposed copper mine just outside Porcupine Mountains Wilderness State Park in the Upper Peninsula. 

"As I expressed at the last hearing we had on Copperwood, I've got concerns about that project,” state Sen. Jeff Irwin, D-Ann Arbor, told reporters after Wednesday’s hearing. “It seems strange to me to create financial incentives for a mine when the mine can't exactly pull up stakes and move to Mexico or Indonesia or Indiana, right?”

Incentives approved Wednesday included:

• $120 million to Dow Chemical Company facilities in the Midland area 
• $100 million for a proposed advanced computing facility in Ypsilanti spearheaded by University of Michigan and Los Alamos National Laboratory
• $27.7 million for Detroit Diesel to upgrade the Daimler Truck subsidiary’s engine plant in Redford Township

The taxpayer spending is expected to help create 636 jobs and preserve up to 7,000 others, according to the state.

Related:

• Controversial copper mine subsidy among $300M approved by Michigan lawmakers
• Michigan lame-duck Legislature: Infighting, drama delay votes again
• Dems go it alone in Michigan House, where chaotic meeting ends in lame-duck limbo

Funding will come from the state’s Strategic Outreach and Reserve (SOAR) fund, which Democratic Gov. Gretchen Whitmer is pushing the state Legislature to extend before lawmakers adjourn for the year. 

The committee’s legislative transfers — the last step in the SOAR process — were about all majority Democrats were able to do Wednesday as the House and Senate struggled with attendance issues amid debates over road funding, tipped wages, sick leave and more.

Those attendance issues did not improve before 3 p.m. Wednesday, prompting House leadership to send lawmakers home for the day without holding any votes on the floor. 

“The agenda today will be the agenda tomorrow,” said Jess Travers, House Democratic Caucus spokesperson.

The proposed funding for the Copperwood mine, which lawmakers stripped out of a legislative transfer request on Wednesday, has faced criticism since it was first brought before the Michigan Strategic Fund board in January.

The board, which oversees disbursements from the SOAR fund, initially hesitated to approve the $50 million grant for Canada-based Highland Copper Co. amid concerns about the company’s lack of investors. It later blessed the grant, under the condition that Highland Copper first must secure at least $150 million in other project backing.

Highland Copper has vowed to invest $425 million in the project, creating 380 jobs that pay $80,000 or more over an 11-year mine life. Annual state and local tax revenue from the mine could amount to $15 million.

Opponents of the mine contend the region’s wild landscapes and pristine water are more valuable than temporary mining jobs. Proponents, meanwhile, say the investment will bring much needed commerce to the region. 

The Senate Appropriations Committee is scheduled to meet again Thursday, but it’s unclear whether the Copperwood funding could come up for a vote.