Apart from the always-tricky matter of balancing the budget, Job One for the next governor will be jobs: creating them in a state that for months has lead the nation in unemployment -- 15.3% at last count.

Michigan governors have been thrashing around on the job-creation issue for decades, with mixed success.

Its already the hot button issue in campaigning for the 2010 gubernatorial election that is just over 11 months away.

Some of the controversy has been on the Michigan Economic Development Corporation (MEDC), a quasi-public operation created in 1999 by Republican Governor John Engler as an umbrella for job-creation initiatives and incentives.

Theyre embraced by Governor Jennifer Granholm and Lieutenant Governor John Cherry, leading contender for the Democratic nomination to replace the term-limited Granholm.

Ann Arbor businessman Rick Snyder, former boss of the Gateway Computer Company whose pitch for the Republican nomination is largely pegged to job-creation in line with the "Fix Michigan" theme of the Michigan GOP, is former chairman of MEDC.

But Oakland County Sheriff Mike Bouchard, who also seeks the GOP nomination, proudly proclaims his vote as a state senator against creation of MEDC and vows that as governor he would abolish it.

As this issue heats up, now comes the Midland-based Mackinac Center for Public Policy with a just-published, well-researched 80-page "Review and Analysis" on MEDC authored by Michael LaFaive and James Hohman. Among issues they raised:

The Michigan Economic Growth Authority (MEGA), prime tax credit vehicle for job-creation, which, according to the authors, produced only 29% of the jobs expected when deals were made.

"In practice, an announcement that 1,000 direct jobs are expected at a MEGA facility translates into 294 actual jobs on average," the report said.

The Michigan Film Office, which has been bouncing around state government since formed in 1979 under Republican Governor Bill Milliken, was boosted in 2008 to allow film production companies to earn tax credits of up to 42% of their spending Michigan.

The Mackinac Center analysis cited an evaluation by Michigan State University (MSU) researchers of a February Film Office report of films producing gains of 2,800 jobs during a certain period. The MSU evaluation said they involved short-term employment of just 23 days on average, producing a "full-time equivalent" of just 254 jobs.

In recommendations on MEDCs "expensive and counterproductive program," the Mackinac Centers LaFaive and Hohman called for elimination of MEDC, which "has by all indications, failed to create new and retain existing jobs for Michigan workers. Killing it and the programs it administers outright would conceivably and directly save tens of millions of dollars that could be used to balance the budget without raising taxes.

"Short of outright elimination of the MEDC, state lawmakers should eliminate the Michigan Economic Growth Authority and Michigan film incentive programs."

While admiring the scholarship of Mackinac Center report, I favor continuation of MEDC and oppose unilateral disarmament in the competition among states to attract new business.

I also agree with Senator Jason Allen (R-Traverse City), Senate leader on commerce matters, who Friday emphasized importance of improving, not removing, targeted incentive programs to stimulate the economy.

The Mackinac Center, a champion of transparency at all levels of government, had complaints about murkiness at MEDC, citing examples of the unresponsiveness for requests for information.

I share the Centers pain. I had no response last week to my request for reaction to the Centers provocative report.

"Support Pure Michigan"

Those are the words on some billboards that the Michigan Lodging and Tourism Association has rented near Lansing. The hope is lawmakers will see them on their way to work this week and continue funding for the highly successful national Pure Michigan TV ad program that has won applause -- and bookings -- as one of the bright spots for Michigan in these dark economic times.

As noted above, there are controversies about how best to promote some of Michigans economic programs. Not so with Pure Michigan, where dollars spent bring multiple benefit.

Bob Davis R.I.P.

For a quarter century, Bob Davis of Gaylord and St. Ignace effectively represented northern Michigan in the state House and Senate, and then the U.S. Congress from 1978 until leaving office in 1992. He died last week in Virginia at age 77.

Representative Bart Stupak (D-Menominee), elected to the congressional seat when Davis retired and now the longest-serving congressman to serve the entire Upper Peninsula, said: "It is with a heavy heart that I speak of Bob Davis passing. Bob was a dedicated public servant and remained devoted to Northern Michigan throughout his years of service and beyond. He represented the First Congressional District with honor and it was a privilege to succeed him here in the U.S. Congress. Bob set the bar high in constituent outreach and was known for setting out across the vast district to meet with and help the people he served.

"This is a reputation I have tried to continue since the first day I took office. In 2002, I was proud to pass legislation renaming the St. Ignace post office the Bob Davis Post Office Building in honor of Bobs commitment and service to the Upper Peninsula. Anyone who has served in Congress knows the personal and family sacrifices that are endured. I send my heartfelt condolences to Brook and the rest of Bobs family in this difficult time. Bob was a friend and he will be greatly missed."

George Weeks retired in 2006 after 22 years as political columnist for The Detroit News. His weekly Michigan Politics column is syndicated by Superior Features.