However, the initiative has faced repeated opposition because of the skepticism surrounding the feasibility of allowing no other-state employees. Companies who qualify for tax incentives are either moving to Michigan or agree to stay in Michigan because of the money they plan on saving from such breaks. However, Senate Republicans fear that mandating a 100 percent Michigan workforce is unrealistic.
According to Mark Sanchez of the Western Michigan Business Review, "Importing scientific talent from other states and other countries is also common in the biotech and life sciences industries Michigan is targeting with tax incentive."
The bill is currently in the hands of the Republican-controlled Senate. Following review of the modifications from the House Democrats, the bill may or may not be voted on. In addition to the ‘Hire Michigan First' package, the state legislature is debating additional programs to help the unemployed. If passed, unemployed workers receiving high-demand job training or part-time workers will be eligible for insurance benefits. Training, coupled with required hiring of Michigan workers, will likely alter the growing percentage of unemployed workers..
‘Hire Michigan First' legislation penalizes companies who hire non-Michigan workers by either paying back any tax incentives of banishment from receiving future contracts. Such punishments may scare companies from setting-up-shop in Michigan. Whatever the solution, a resolution must emerge in order to get Michigan workers re-employed. With bipartisan cooperation, the unemployment rate will potentially turn and new industries will be encouraged to open up throughout Michigan.
Sources: http://www.mlive.com/business/west-michigan/index.ssf/2009/03/hire_michigan_first_provision.html March 31 2009
http://031.housedems.com/news/article/dems-to-senate-put-the-hire-back-in-hire-michigan-first/house-democrats-send-stronger-plan-back-to-senate-for-action/ June 18, 2009