OpEd by Jennifer M. Granholm: Crunch time for state's future
Earlier this month, I participated in a series of town halls about the future of Michigan, including one in Detroit. Our conversations included a great cross-section of opinions and perspectives. But three common points emerged:
- Michigan is facing unprecedented challenges as globalization and unfair trade practices batter our manufacturing economy and our jobs
- None of us intend to give up on our state.
- Most important as we push forward, we all want to make Michigan economically competitive and ensure that our state creates opportunity for all of us and for our kids.
Simply put, we must invest in our people and in our economic future. The big question we face is this: How do we get to that vision, to the Next Michigan where our people prosper, our kids have opportunities, and our industries thrive in the global economy?...
Detroit Free Press: Study shows Michigan ready for future economy - 19th overall, state most improved
Ready for some good news about Michigan's economy? A new study that tracks how states are preparing for the knowledge-based economy of the future reported Tuesday that Michigan has made more progress since 1999 than any other state. Michigan ranked 19th overall in the 2007 State New Economy Index, up from 34th place in the 1999 version of the report and up from 22nd place in the 2002 index. That 15-place improvement since 1999 was the most by any state. Robert Atkinson, president of the Washington, D.C.-based Information Technology and Innovation Foundation and chief author of the index, said Michigan is doing a lot right in spite of its high unemployment rate and its troubles in the domestic auto industry. "The shift is a real shift," he said Tuesday, citing high investment in research and development and the influx of highly trained immigrants into Michigan as high points for the state… The study might have political implications in Michigan's current debate over the state's budget deficit. Gov. Jennifer Granholm's plan to tax services to invest in job training and other economic programs is something Atkinson said his data support in general over a simple tax-cutting strategy. "If you want to look at a state that followed the cut strategy, it's basically Arkansas in the last 15 years," Atkinson said. "And they increased their rank by two by following that strategy, from 49th to 47th. That strategy is really not a very effective strategy." He added, "States that have lagged behind are typically those who have not invested in education and skills and infrastructure."
Lansing State Journal: Roger Martin: Relying on budget cuts impractical
Looked at another way, closing 75 percent of all state departments, including State Police, the Legislature, and the Office of Governor, would reduce state spending by about $1.2 billion. Still not enough. If we're truly going to balance the state budget through cuts only, shaving $3.5 billion demands ruthless reductions with tangible human, public safety and economic consequences. For example, we could get there by scrapping state-funded health care for all Michigan children and elderly residents combined with releasing all 51,000 inmates from the state's prisons. Or we can get there by cutting all state funding for our public universities and community colleges and ending all mental health services. My business seeks cost savings every day. I don't doubt that the Legislature, Governor's Office and public agencies at all levels of government can figure out ways to operate more efficiently and at lower costs, which all taxpayers should demand. But what kind of Michigan do we want? By cutting our way to balance, we can have a Michigan with no health care for 1 million or so poor children and elderly citizens. By cutting our way to balance, we can have a Michigan with even fewer police officers, state troopers and fire fighters (the budget cuts of recent years already have forced more than 3,000 public safety layoffs across the state). By cutting our way to balanced, we can have a Michigan where only the wealthiest can afford education and training beyond high school.
Detroit News: Critics call trade deal unfair -- Granholm joins with Ohio governor in pressing issue in a meeting with the top U.S. trade representative
Gov. Jennifer Granholm said Monday she remains unconvinced that the Bush administration is doing all it can to protect Michigan workers from unfair foreign trade practices, despite repeated assurances from the top U.S. trade negotiator during a 90-minute meeting with Granholm and other governors. "I am not satisfied as the governor of Michigan that (the United States) is being aggressive on trade. I am not satisfied that the playing field is really fair," Granholm said after the meeting with U.S. Trade Representative Susan Schwab… Granholm and Ohio Gov. Ted Strickland pressed Schwab repeatedly to keep in mind the harm that free-trade deals have done to manufacturers in their states."There are people being disadvantaged" by trade, Strickland said. "And I agree that there are people being advantaged. But the pain and the benefits are not in balance." Michigan has lost more than 150,000 manufacturing jobs since 2001 as domestic automakers have lost market share to foreign-owned brands. Granholm and other Democrats have placed much of the blame on trade policies they say have opened U.S. markets to goods from other nations, but failed to knock down trade barriers in other countries. Granholm said the federal government should be more aggressive in filing cases with the World Trade Organization, which oversees global trade agreements, against countries blocking U.S. goods. U.S. Sen. Debbie Stabenow, D-Lansing, has introduced a bill with some Republican support that would establish a trade prosecutor within Schwab's office to more aggressively pursue such cases.
Lansing State Journal Editorial: Time's up: Senate Republicans owe state detailed list of budget cuts
It's one thing for Senate Republicans - led by new Senate Majority Leader Mike Bishop, R-Rochester - to reject Gov. Jennifer Granholm's plan to close the 2007 state budget deficit. Legislators are elected to make up their own minds on spending and tax questions. They may think they have a better plan than Granholm. It's quite another thing, though, for Senate Republicans to not offer a counter-proposal. Not indications. Not generalities. Not whispers behind closed doors. But a specific, detailed, public proposal on how Michigan will fill an $850 million hole. And we note the impact of this deficit only will grow worse. The budget deficit we are discussing covers the existing budget year, which ends Sept. 30. It covers the current school year. With each passing day, state agencies spend more money based on a budget plan that is not balanced. With each passing day, the eventual cuts in spending will have a disproportionate impact on public services. And still, Senate Republicans hesitate. Where is the leadership for Michigan? … Present your plan, Sen. Bishop. Let the people put it beside the governor's and decide what actions they favor - and which they will not stomach.
Bay City Times: Granholm steps up
Michigan needs a leader to guide us from the chaos of an economy that experts say won't begin to turn around for another two years. Tuesday night, Gov. Jennifer Granholm stepped up. Setting aside the wish lists and dreamy visions that usually punctuate such speeches, Granholm used her fifth State of the State Address to launch a series of bold, but common-sense, ideas to turn Michigan toward a prosperous future… Howls of outrage are coming from Republicans, who screech their broken-record demand for no new taxes and cuts, cuts, cuts to state government. Theirs is a worn-out playbook that failed Republicans in the last election and has not turned around our economy -- one of the only states in the nation to be wallowed in a deep depression. Yet, even after $4 billion in budget cuts in four years that have shrunk the size of state government to 1972 levels, Granholm has pledged one last, grand swipe of her budget battle ax: Release nonviolent offenders from state prisons to save $500 million a year. Bravo… Still, her plan to reward cities and townships with no revenue sharing cuts, and then increases in state money, if they consolidate services and even governments was a shocker. Politicians gathered in the state House chambers even paused a beat before House and Senate Democrats rose to their feet to uncertainly applaud her brash proposal. It's a solid idea to save money by sharing services that are duplicated across artificial municipal boundaries… Michigan can no longer wait for its automaking dynamo to rev back up. We need a new direction. Tuesday, Granholm forcefully, passionately and dynamically pointed the way toward prosperity. Let's follow her, shall we?
Traverse City Record Eagle: State must invest in itself to compete on world stage
So at what point do you stop treading water and strike out in a new direction? Obviously, Gov. Jennifer Granholm thinks the time is now. And she's right. For years now, as the systemic tax cuts created by Gov. John Engler have drained revenue streams and the auto industry has obliterated jobs by the tens of thousands and millions in income taxes, Michigan government has survived only through round after round of budget cuts. Schools, local governments, bridges, roads and parks have all taken hit after hit, to the point that nowadays, all they can manage is to go through the motions. We're getting the minimum because that's what we're putting in. And year after year other states have gained on us. Michigan's K-12 and higher education programs used to be among the best in the nation but now they're a shell of their former selves. Michigan has lost its reputation as a place where highly skilled workers helped innovation become reality… Granholm has been harangued for the state's inability to compete in the global economy, but the state will never get there by simply cutting programs. To survive and thrive Michigan needs a new investment in itself. To see the status quo in action, just look at the auto industry. Taxpayers must keep this in perspective -- this is a 2 percent tax hike. Not 20 percent, 2 percent. A $30 haircut will be $30.60. A $150 bill from the furnace guy would be $153. This is not a budget-buster. Michigan must eventually break the cycle of cut after cut and eternally lowered expectations. There is no future in putting up the shutters and turning out the lights. Business types tout investments. Well, it's time to invest in Michigan and begin restoring our educational institutions, our infrastructure and our ability to compete.
Eastern Michigan Echo: Granholm's budget deserves to be passed>
With our endorsement of Granholm's vision of Michigan in her recent state of the state address, it should come as no real surprise we largely favor her new budget proposals and encourage the state legislature to pass them. What we found ludicrous, in the few days since the official budget proposal has been announced, is how quickly opponents lined up. Though, perhaps, that was to be expected, noting they said essentially the same things they always do… Far be it from us to suggest he and most other critics of the Governor's budget proposal seem to have had their talking points written out prior, then contorted their arguments to fit their ideological bent.
Detroit News Columnist: Were the 'naysayers' listening to guv ?
The consensus from the "naysayers" was that the governor had delivered a speech like some of her previous ones -- all sunshine, lollipops and rainbows. They might have a point. Except that wasn't the speech she delivered. She laid out a choice: Invest or disinvest. Advance or retreat. Ladies and gentlemen, pick your model: California or Mississippi… It's not delusional to expect a leader to have vision, to imagine the state competing in the 21st century, because its residents value education, investment in technology and good government. Remind me, please, of the great American states that get by without picking up trash, paving roads, educating children, without building or health care or helping the poor. And say "nay" to the Granholm's vision -- the commitment to schools, to a higher-tech and to people -- at your peril. Because this state will not survive by starving itself.
Detroit Free Press Editorial: State will pay for each day of budget solution delays
The state's downward budget spiral is costing Michigan more with each passing day. Knowing that makes it almost scary to watch the posturing in Lansing when it's past time for action. State Treasurer Robert Kleine told a legislative committee this week that the state would need a short-term loan in May to meet its obligations. That kind of borrowing isn't unusual, but rarely until August. The extra borrowing means the state will spend more on interest payments. A January downgrade in the state's credit rating means higher rates. The longer this drags on, the bigger the likelihood of additional cash flow problems and rating downgrades. Taxpayers have every right to expect better use of their money than watching lenders siphon more of it off while their elected officials dally. Gov. Jennifer Granholm has taken what steps she can on her own, including a prison closing announced this week. Republicans, who control the state Senate, say they want to find another way to manage prison costs. But they also say they have a plan to fix this year's budget without the tax increase Granholm wants -- which means they should already have a prison strategy. You'd think they'd be ready, even eager, to talk.
Bay City Times Editorial: We've cut enough: Michigan needs guv's 2 percent solution
For the first time in a long time, a Michigan governor proposes the politically unthinkable - a brand-new tax. It's the 2 percent tax on services that Gov. Jennifer Granholm hinted in her State of the State Address and then dropped on lawmakers' desks two days later, on Feb. 8. Keep one, clear principle in mind as greed and fear cloud the debate over this proposal to finally stop the bloody budget cutting of the past four years. It's the right thing to do. This two-penny plan would put Michigan's derailed desires back on track for a highly educated work force to replace a failing manufacturing economy based mostly on brawn. A tax on services would mean that public schools, colleges and universities would get a modest 2.5 percent increase in state funding next year. Without it, K-12 schools would lose almost all of the $250 per-student increase in state funds they were promised for this school year. Harsh cuts would continue all over the state to meet a budget deficit of $800 million this year. The effects would trickle down to cities and townships, which already are having trouble funding even basic services, such as police and fire protection…
Detroit News Editorial: Sensible inmate releases can reduce state costs
Gov. Jennifer Granholm's proposal to close one old prison and cut the number of state prison inmates about 10 percent is drawing fire, but it shouldn't. The governor is taking an overdue step in getting a handle on this state's soaring Corrections costs. Of course, the reduction in prison population has to be handled with care. The Corrections Department has had a bad record of lost paperwork and bungled paroles, which has had fatal consequences. But as the governor's budget notes and this newspaper has long contended, we jail more people than our Midwest neighbors, but don't have a lower crime rate to show for it. We are not getting the best bang for our Corrections Department dollars… The governor hopes to save $92 million by reducing that number by 5,500 by the end of 2008. Those turned loose would include medically fragile prisoners, older prisoners and those who could be deported to other countries to be housed at their expense. All of these are sensible ideas. In addition, the governor proposes the closing of one of a cluster of prisons in Jackson, with the release or transfer of 1,500 prisoners… Michigan spends more on its prisons than its universities. That can't continue…
Detroit News Labor Voices: Two extra pennies can save Michigan -- Granholm's tax plan helps economy and helps avoid devastating cuts
Twopennies on the dollar. That's what Gov. Jennifer Granholm says it will take to turn Michigan's economy around and help close a nearly $3 billion budget hole. The Michigan Education Association backs the governor's budget proposal, which includes a call for a 2 percent tax on services like lawn care and a new business tax to replace revenue lost with the repeal of the Single Business Tax. Her plan provides the right balance between investment, budget cuts, reforms and revenue increases. Years of tax breaks and loopholes for big business have failed to produce the economic turnaround that tax-cut proponents promised. Instead, we've seen a stalled economy, job losses, fewer state services and continued threats to school funding. You can't just keep doing what you've always done and expect different results. The governor's plan avoids devastating mid-year cuts to schools and shows Michigan citizens that education is the foundation of our state's future….
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