VIEWPOINT

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OUR EVENTS

Thank you to the 400+ people who attended our March Leadership Summit: Building a New Michigan in downtown Lansing. From company executives and government leaders to university representatives and economic developers, a growing coalition of key supporters were briefed on the state's progress in each of the six New Michigan opportunity areas.  The feedback was positive...Michigan is on the right track.

We have received several requests for Summit materials and video links. They are posted on our website at www.BusinessLeadersforMichigan.com/events. Please feel free to share them so all Michigan residents can see the work that is underway to create a New Michigan.

ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY

Step 3: Create a Competitive Business Climate 

Report: Michigan workers lack upgraded job skills

Also finds workers in the near future may lack the higher education needed

Grand Rapids Business Journal | March 22, 2013

Michigan, according to the organization Business Leaders for Michigan, is following a national trend and becoming a knowledge-based economy across all industry sectors, including manufacturing and agriculture.

That trend is causing employment and income growth to be increasingly dependent on education levels, and has major consequences on how Michigan should best support economic growth, according to an in-depth study just released by BLM.

"About half of all employers currently hiring for above-average-wage jobs are having some difficulty finding people with the right skills and experience," said BLM President and CEO Doug Rothwell. Read more. . .

Step 4: Invest for Growth 

Our view: BLM supports making strategic investments in areas that promote future growth such as higher education and infrastructure. BLM believes a comprehensive transportation funding strategy is essential to creating the infrastructure MI needs to leverage our geographic location and connect us to the global economy. BLM supports boosting investments in higher education to make college more affordable, grow the state's talent pipeline and harness the innovation of MI's higher education system.

University accountability: why not let the public track performance?

The Guardian | March 18, 2013

In today's knowledge economy, there is growing recognition that colleges and universities are powerful stimulants of economic growth. The talent, research and development, and economic activity they produce are valuable public goods worthy of both private and public investment.

The obvious question, however, is this: how can colleges and universities show they are delivering healthy investment returns? We think we have the beginnings of an answer: Michigan's performance tracker for public universities. Read more. . .

Michigan Colleges Rank High in Degrees Awarded in U.S.

dBusiness | March 18, 2013

Michigan's public universities and their students are reacting quickly to changing job markets, with universities graduating an increasing percentage of students in high-paying "critical skills" fields including medicine, engineering, mathematics, technology, and other sciences, and a dramatic reduction in teaching degrees issued.

While some are suggesting there is a "talent gap" between what employers are demanding and what universities graduating, the data shows an alignment in university graduates that suggests any gap may be due to factors other than university degrees earned by students. Read more. . .

Step 6: New Michigan 

Our view: While much has been done to strengthen our state, it is critical that MI take steps to accelerate our economic recovery and grow the New Michigan economy. The New Michigan strategy identifies six distinctive assets with the greatest potential for growth and provides a vision for growing up to 500,000 new, good paying jobs by leveraging MI's unique strengths. 

BLM Releases First Annual New Michigan Report

On March 11th, BLM released our first annual New Michigan report which provides baseline data for the six New Michigan assets so we can measure progress being made as we move forward.  The report, entitled A New Michigan: The 2013 Report on Michigan's Progress in Six Opportunities, gives us a clear idea of how we stack up to our competitors on key outputs: GDP, employment, and earnings. It also provides information on the inputs for each of these critical opportunity areas. Annually, BLM will produce a report that charts efforts to advance the New Michigan economy. Click here to download a copy of the report. 

Step 6: New Michigan - Life Sciences Hub

Our view:  BLM supports leveraging MI's distinctive assets to grow good paying jobs and accelerate MI's economic growth. To that end, MI should develop a Life Science Hub based on our robust health, medical and bio-pharmaceutical capabilities.

MichBio and BLM Work To Develop Strategy To Grow Life Sciences Industry  

Michigan's health and medical expertise key to growing a New Michigan economy

In late March, the state's top leaders in business, life sciences, pharmaceutical and medical device innovation met to develop strategies to grow Michigan's bio-sciences industry. The meeting was hosted by MichBio, the state's biosciences industry trade association.

The featured guest was Alex Gorsky, Chairman and CEO, Johnson & Johnson, and a native Michigander. A workgroup discussion followed the moderated Q&A and set the stage for initiating a bio-industry led strategic planning effort. Read more. . .

Recent articles about the effort:

Grand Rapids Business Journal: MichBio, BLM work on strategy to grow life sciences

CBS Detroit: MichBio, BLM Work To Develop Strategy To Grow Life Science Industry

DATA SUPPORTING THE TURNAROUND PLAN

MI Employment Growth < U.S. Average In 2012

Michigan Climbs To #4 In Site Selection Ranking

After not making it into the Top 25 last year, Michigan ranked #4 this year on Site Selection magazine's annual list of site expansions and locations. Read more. . .

Michigan: Top Ten For Highest University Tuition

A recent study shows that Michigan is one of the most expensive states to get a college education according to the College Board, ranking 6th highest.  You can see the difference state budget cuts have made on universities vs. community colleges in the chart below.  Michigan cut university funding by about 50% over the past decade when adjusted for inflation, but about one-third that for community colleges.  The result is that a community college education remains quite affordable in our state.  Read more. . .

University Tuition Costs Tied To State Funding Support

The charts below are from a new study by the State Higher Education Executives Organization showing Michigan in the second quintile of states for cutting funds and raising tuition over the last five years. Read more. . .

Michigan's Prison Population Drops - Costs Don't

The  Pew Center for the States reports Michigan has experienced a significant decline in the number of prisoners over the past five years - the fourth highest decline of any state.  Yet, state costs continue to go up.  While the Corrections Department has taken steps to reduce expenses, the Governor's proposed FY14 budget is up 1.5% over last year driven by personnel expenses. Read more. . .

Local Government Unfunded Liabilities = $12.7b

A new Michigan State University study shows 311 local governments in Michigan have a combined unfunded liability of $12.7 billion.  Detroit carries 39 percent of the unfunded liabilities, with $4.9 billion. The statewide amount of unfunded liability is 1.6 times the combined amount of unfunded pensions, which is $3.1 billion, and governmental activities debt, which is $4.7 billion.  Almost $11 billion is concentrated in the southeast area of the state.  The report said of the 284 units studied, 138 are prefunding liabilities. The units that are prefunding generally have a population of 30,001 to 200,000.  However, in totality, the prefunding numbers are small and not adequate.  The funding needs to be around 80 percent of the liability, and the cities are funding between none and 5 percent. Read more. . .

 

SPOTLIGHT ON BLM MEMBERS

Do Good Detroit: Comerica Bank surprises Cass Tech with $10K grants

Detroit Free Press | March 26, 2013

Representatives from Comerica Bank and the Detroit Tigers surprised students at a special assembly today with the news that they had been selected as the southeast Michigan recipient of Comerica Bank's $10,000 Grand Slam Grant.  Detroit Tigers mascot PAWS, the DTE Energy Squad, DJ Kenny Valentino and Fox Sports Detroit celebrity emcee Shannon Hogan were on hand to provide entertainment for the students during the surprise assembly. 

Fortune names Whirlpool most admired company

GRBJ.com | March 7, 2013

Fortune Magazine has recognized Whirlpool Corp. as the World's Most Admired Company in the home equipment and furniture industry sector. It's the third consecutive year the Benton Harbor-based manufacturer has finished first in the category.

"As the largest and most innovative company in the world with over 102 years of history, it is an honor to once again be named one of Fortune Magazine's most admired companies," said Jeff M. Fettig, Whirlpool chairman and CEO, in a statement.  Read more. . .

IN THE NEWS

Michigan bonds get ratings upgrade; state's rebounding economy cited

Detroit Free Press | April 2, 2013

New York bond agency Fitch Ratings upgraded on Tuesday its rating for Michigan's general obligation bonds to AA from AA-.

The action by Fitch Ratings is the first rating upgrade Michigan has received amid a recent series of positive moves by bond agencies. Earlier, Standard & Poor's & Moody's upgraded the outlook for Michigan bonds to "positive" from "stable," while leaving their existing ratings in place, at AA- and AA2 respectively.  Read more. . . 

Businesses pledge $8M for Detroit public safety

100 police, 23 EMS vehicles will be leased with funds

Detroit News | March 26, 2013

Local business leaders - led by automotive mogul Roger Penske - pledged $8 million to purchase public safety vehicles for the cash-strapped city, Mayor Dave Bing announced Monday.

In what was described as an "unprecedented collaboration," Bing said the funding will be used to lease 100 police cruisers and 23 EMS vehicles as a part of his $60 million goal to support public safety operations and recreation. About $6 million has already been pledged for recreation programming. Read more. . .