Skubick: House Democrats eye plan to keep state job contracts closer to home

LANSING, Mich (WLNS) – Democrats want to give preferential treatment to Michigan companies that bid on state government contracts.

But what would the financial impact be on future contracts?

State Contracts

(1) $32 Billion
(2) $7 Billion Out of State

Based on a 2013 report, Michigan government spent $32 billion on contracts for a variety of services including the printing of documents, research on a variety of projects and the like and $7 billion of that went to companies out of the state.

“About 78 percent of the contracts stayed in Michigan but a quarter of those are going somewhere else,” said Rep. Sam Singh.

Legislative Democrats believe if you give Michigan firms an advantage over out-of-state competitors it will generate more dollars spent on the local level.

Rep. Singh explained “every dollar that stays here helps the economy and companies will add people to be employed. They’re buying things in local counties.”

The governor recently got his “Good Jobs” package that is aimed at both in and out of state companies including one in Taiwon.

Democrats want local companies to have these advantages.

Rep. Singh suggests “Michigan companies get a chance to re-bid. If they are first rejected they’ll get a chance to lower their costs and bid again. There will be financial incentives of about 8 percent.

The Democrats hope to cut into that $7 billion going out of state and keep it home.

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