There’s a troubling story in tonight’s MIRS report (subscription required). According to Mark McDaniel, president and CEO of the Great Lakes Capital Fund, the continuing foot dragging on a real solution to the state’s budget problems is costing the state hundreds of millions of dollars – and that’s just in the funds GLCF controls!

According to GLRF’s website, “GLCF helps socially responsible corporations invest in affordable housing and community economic development activities.” Over the past thirteen years, GLCF has overseen over a billion dollars of investment in Michigan. McDaniel states that in previous years he has been able to garner up to $180 per year in equity investment; this year, it’s only $40 million. The reason? According to McDaniel, it’s the combination of a struggling economy, a still-missing SBT replacement, negative headlines and the lack of a reasonably balanced budget – all of which taken together give investors the jitters.

McDaniel explains that investors keep asking “‘What in the world is going on in Michigan?’ … How do I explain that to these groups, these companies that are looking to invest $10, $15 or $20 million each with us? To have them call and say ‘Why would we invest, you just got downgraded, what’s going on in your state? Why can’t your legislature and your government get this figured out?’”

So that’s the cost of delay. It’s not just higher tuition costs and the mortgaging of our future to pay for the present. It’s not just a tomorrow that’s even more difficult than today due to structural economic changes and a chronic lack of investment. It’s already happening.

McDaniel states that “the type of housing projects his firm traditionally invests in are what will make communities the kind of places where so-called “new economy” jobs will be created and located. It’s the kind of investment that will make his 12-year-old son want to stay in the state after graduation and to which lawmakers and public policy officials pay so much lip service.”

Last year’s buzzwords were “Jobs Today, Jobs Tomorrow.” Because of Republican obstruction in the state senate, this year can be summed up as “Crisis Today, Crisis Tomorrow.” It’s a sad inheritance, and the people of this great state deserve far better.