Oscoda News
By Holly Nelson
LANSING - Legislation which could create 600 new jobs in Iosco County is one step closer to becoming law. State Representative Joel Sheltrown (D-West Branch) reports that the 21st Century Jobs bills passed the Michigan House of Representatives Wednesday, Sept. 28, and have moved on to the Senate. In the process, it was decided that a little more than $3 billion from the tobacco settlement should be used for the program. The legislation is endorsed by a nonpartisan coalition of legislators as an alternative to the sale of bonds as a way to finance projects which would aid economic development and recovery throughout Michigan, according to Sheltrown. Instead of individual communities or the state selling bonds to finance large projects - which can be risky and is both time consuming and expensive - the state will sell its future rights to 25 percent of the tobacco settlement money to an investment firm. The sale proceeds would then be distributed to projects which would create good jobs. Among the proposed beneficiaries of this securitization plan is the Oscoda division of Kalitta Air. According to Sheltrown, Kalitta owner Connie Kalitta is looking to take advantage of the trend amongst airlines to outsource maintenance, repairs and upgrades. This includes avionic (electronic) upgrades required under Homeland Security measures. If all goes as planned, the Oscoda-Wurtsmith Airport would receive about $25 million to construct and equip two new hangars, one of which would deal exclusively with electronics. These would be leased to Kalitta Air, potentially creating 600 new jobs paying an average of $27 per hour plus benefits. "The great part about the program is that the rent Kalitta Air will be paying will go back into the program to help other businesses," Sheltrown said. "This is good for Michigan." Sheltrown was one of the sponsors of the House bills, along with Representatives Matt Gillard and Andy Dillon. Gillard represents the 106th District, which includes Alcona and Alpena Counties. Dillion is the 17th District representative from Wayne County. Dillon, Gillard and Sheltrown will tour Kalitta Air later this month. Sheltrown wants them to see the potential firsthand. The three representatives, along with Senators Tony Stamas (R-Midland) and Valde Garcia (R-Howell) hope to have the tobacco fund securitization legislation in place within the next few weeks, according to Sheltrown. Sheltrown expects it will take two weeks for the bills to make it through the Senate. Then the legislation will be forwarded to the governor, who has already given her support. It will, however, take a bit longer than originally anticipated for the money to reach Oscoda. The House bills require the establishment of a department to handle the program. Sheltrown now estimates it will be next summer before everything is in place.