John Mazzina, president of the Center for Economic Accountability, told the House Oversight Subcommittee on Corporate Subsidies and State Investments that governor-led overseas trade trips can provide donor companies privileged access that increases their influence over state subsidy decisions.

"If you're lessening someone's burden, it means you're putting some of that on your own shoulders," Mazzina said, summarizing his concerns about the Michigan Economic Development Foundation's role. He noted reporting that foundation board seats correlate with large subsidy awards and cited a Detroit News figure that companies with foundation connections have received about $2,200,000,000 in subsidies.

Mazzina said his review of sources including the Good Jobs First subsidy tracker shows that 20 of the 29 companies the foundation lists as supporters have received some form of Michigan subsidy in recent years. He told lawmakers that those donor relationships, combined with an opaque grant-and-deal process and limited external enforcement, create structural incentives for the status quo rather than for rigorous oversight.

Mazzina urged the panel to evaluate whether travel-funded access affects deal outcomes and whether agencies can implement stronger transparency and accountability measures. "The primary enforcement entity in that regard is the MEDC itself," he said, arguing that enforcement and oversight roles should not rest primarily with the same organization that helps arrange deals.

The witness also cited the site-selection industrys own survey work to argue that subsidies are typically lower-ranked factors in corporate location choices. He told the committee that Area Development Magazines survey places government responsiveness behind factors such as labor costs, quality of life, energy availability and the availability of skilled workers.

During questions, lawmakers asked whether the governor or others on trade trips lead with promotional material or with subsidy offers. Mazzina said governors commonly lead with the states assets but that MEDC or other officials on such trips often discuss incentives quickly.

Members also raised specific expense items reported in FOIAed travel paperwork. When asked about a $25,000 food line item tied to a recent trip to Japan and Singapore, Mazzina said context matters (number of travelers, days, local costs) and called for clearer reporting of trip activities and expenses.

Lawmakers pressed Mazzina on donor disclosure for the Michigan Economic Development Foundation. He said nonprofit donor privacy is protected under federal law and Supreme Court precedent but recommended greater voluntary transparency by entities that play a quasi-official role in economic development to reduce public concern about conflicts of interest.

The committee did not take formal action on policy changes during the hearing; its members asked Mazzina and agency representatives to provide additional information and documentation in follow-up sessions.