MEDC, the social protection agency for state enterprises, has local partners
The head of a regional agency involved in obtaining government grants for particular businesses saw his total salary drop from $ 337,000 in 2017 to $ 573,000 in 2019.
Paul Krutko’s gross salary as chairman and CEO of Ann Arbor Spark has caught the attention of at least one elected official in the counties where he is active.
Wes Nakagiri was the sole dissenter in an 8-1 vote by Livingston County Commissioners when they decided to give Ann Arbor Spark $ 175,000 in each of the following three years. He cited the CEO’s salary as one of the reasons.
“It looks like Ann Arbor Spark is moving from the well-being of companies to the well-being of CEOs,” Nakagiri said, referring to salary. “I oppose the use of taxpayer dollars to fund the welfare of corporations. The government should not be concerned with picking the winners and the losers. “
Ann Arbor Spark is not the only state organization spending taxpayer dollars in the name of economic development, promoting taxpayer-funded government grants for particular developers and corporations.
This entity received $ 1.23 million from taxpayers in 2019. Paul Krutko, President and CEO of Ann Arbor Spark, received $ 573,000 in full compensation in the same year, up from $ 337,000 in 2017. The Total transaction revenue in 2019 was $ 7.14 million.
Quintin L. Messer, CEO of Michigan Economic Development Corporation, collects $ 287,000 per year. MEDC is the state government agency that cooperates with local business grant agencies in helping to channel state tax revenues to projects in their own region. It also receives money from Indian casinos that the state obtains under agreements made with the tribes.
The Detroit Invest Foundation, a similar nonprofit, collected $ 37.5 million in revenue in 2019, of which $ 2.9 million came from taxpayers. Its CEO received $ 400,000 in total compensation that year.
There was no response from Ann Arbor Spark when contacted for comment.