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VIEWPOINT


April 2014 

Making College More Affordable

 

Recently, the House and Senate Higher Education Appropriations subcommittees passed their budget recommendations for next year, tying funding to university performance and tuition cost restraint. We want to thank our legislative leaders for their commitment to make college more affordable for Michigan families.

 

The Senate Higher Education Appropriations Subcommittee, chaired by Senator Tonya Schuitmaker, agreed with the Executive Budget recommendation and approved a funding increase of 6.1%. In a letter, Senate Majority Leader Randy Richardville expressed his strong belief that this investment is critical for our state's future prosperity. While the House recommendation was lower than the Executive recommendation, Chairman Al Pscholka and Majority Vice Chair John Walsh both indicated that this was the first step in the process and there was more work to be done.

 

BLM's view: As the budget process moves forward, we are hopeful that the House and Senate will agree to fund our public universities at least at the level in the Executive Recommendation. We need a strong higher ed system to help strengthen Michigan's workforce -- for both young high school graduates and workers in need of retraining and development. The only surefire way of keeping higher ed affordable for everyone is to ensure strong public support. Please contact your state legislators and urge them to support the Governor's budget recommendation for our public universities.   
 

OUR WORK


Sustaining Michigan's Turnaround

 

Last week, Business Leaders for Michigan released an update to the Michigan Turnaround Plan. Five years after a coalition of business, community and education leaders first issued a comprehensive strategy for economic growth, the plan has been updated to reflect the significant progress that has been made.

 

Michigan has become more competitive. Jobs, income and GDP are on the rise.  Now it's time to cement the gains we've made, and keep pushing toward our goal of being a Top Ten state.  

 

Some may wonder, why now? Things are better, so why not relax and stay the course? The simple truth is, better isn't good enough any more.  Our competitors are not standing still, and we've got to stay aggressive if we're going to remain in the race for more jobs and better incomes. 

 

In the new Plan, we've identified the strongest possible opportunities for growth, and laid out ideas for helping Michigan aggressively seize them. Turning the state around is going to take all of us pulling in the same direction. We encourage you to share these ideas with friends, family and colleagues. You can find other ways to get involved at michiganturnaroundplan.com 

 

Click here to download the Michigan Turnaround Plan.

"New Michigan" Jobs Grew Twice as Fast as the State as a Whole

 

In March, more than 400 people attended Business Leaders for Michigan's second Leadership Summit: Building a New Michigan to hear about the state's recent progress in growing a New Michigan economy.  The good news is that research shows that BLM's New Michigan strategy of leveraging MI's distinctive strengths and assets to grow good jobs quickly is working. In its new study, Growing a New Michigan: The 2014 Report on Michigan's Progress in Six Opportunities, BLM reports excellent progress, including:

  • New Michigan opportunities grew at twice the average job growth rate.
  • Employment as a percent of the workforce was steady or up in all six areas. In fact, more than 40 percent of all jobs created in 2012 were from New Michigan opportunities.
  • At $65,356 in average earnings, the six opportunities pay almost 40 percent more than industry overall.
  • GDP for the six opportunities represents 17 percent of all industry GDP in the state and increased at two and a half times the rate of the economy overall.

By performing as a Top Ten state in each of these areas through 2022, which we believe our strong base of entrepreneurism, innovation, and manufacturing will allow us to do, we have the potential to increase Michigan's total economic output by $31 billion per year and add up to  220,000 jobs.

 

Click here to download information from the event and the New Michigan report.

    ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY


INVEST: Connect Michigan to the world through strong infrastructure


Our view:  Michigan needs excellent transportation infrastructure to connect the state to the global economy. BLM supports a comprehensive transportation funding strategy.

Why a Permanent Road Funding Solution Matters

 

In today's global economy, businesses have a virtually unlimited number of choices where to locate or expand to grow jobs. The places that will win the battle for those jobs are those that provide the most value relative to their costs. In Michigan, we've made tremendous strides to compete on costs, but we have work to do in some critical value areas, including the quality of our infrastructure.

 

At $154 per person, MI ranks last among all states for what it spends on roads, and it shows. We rank 45th in urban road condition and we have 1,354 bridges that are considered structurally deficient. This has a negative impact on our ability to attract jobs. Businesses considering expanding or locating in MI see our crumbling infrastructure and question if they are going to be able to move their people and goods around efficiently.

 

And the longer we delay, the worse the situation will get. While the use of State General Fund revenues over the last two years has provided a temporary reprieve, we can't continue to rely on one-time fixes. Further, using General Fund dollars in this way, reduces funding for other important priorities such as public safety, higher education, and our communities. 

 

BLM's view: A permanent solution is needed. The cost of maintaining and improving our roads and bridges is the responsibility of all who use them, and is currently supported through gas taxes and vehicle registration fees. The revenue raised from these sources is insufficient to keep our roads in good condition, falling short by more than $1 billion. If we want better roads, we need to find a long-term revenue source for fixing them.

GROW: New Michigan - Global Center for Mobility


Our view: As Michigan is the home to the world's largest automotive cluster and the most automotive production/research facilities, the automotive industry is one of our state's six most significant economic assets. BLM supports actions that grow MI's market share of this growing industry sector and positions our state as the Global Center for Mobility.

University of Michigan approves design for $6.5M test track for autonomous vehicles 

MLive.com | March 21, 2014

 

Merge lanes, roundabouts, gravel roads, a four-lane highway and street lights might feel like the "real world," but the University of Michigan knows better. These are just a few of the elements in a $6.5 million track the school is building to simulate everyday driving conditions for the testing of connected and automated vehicles. Read more. . .

DATA SUPPORTING THE TURNAROUND PLAN


Site Selection "Governor's Cup:" Michigan #5 Site Selection Chart

 

This year, Michigan broke into the Top 5 for locating the most new investment projects according to Site Selection.  Projects must meet one or more of these criteria: a minimum capital commercial investment of $1 million, 20,000 sq. ft. or more of new construction or creation of 50 or more new jobs. Read more. . . 

 

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Unemployment Drops to 7.7%

 

Michigan's unemployment rate fell to 7.7% in February from 8.3% in December and 7.8% in January.  Total employment increased, unemployment decreased and the labor force increased.  This is the lowest rate since 2008.  The unemployment rate last year at this time was 8.8%. Read more. . .

 
Michigan Unemployment Rate for February 2014
(Seasonally Adjusted)

Michigan: Ranks #10 Worst State for Student Debt

 

The Institute for College Access and Success released a report showing that Michigan ranked the 10th worst state for college students graduating with debt with an average of $28,840.  The data shows the impact of disinvesting in our colleges and universities in the last decade. Read more. . .

 

 

State By State Higher Education Support


Chronicle HE Logo

Michigan went from being a Top Ten to a Bottom Ten state for college affordability in the 2000's due to deep state budget cuts.  The Chronicle of Higher Education recaps below how each state pays for higher education today.  Read more. . .

SPOTLIGHT ON OUR MEMBERS


Alfred Taubman gives $12.5 million for architecture, urban planning facilities at U-M 

UM Logog

Michigan News | March 20, 2014     

 

Real estate developer A. Alfred Taubman has committed $12.5 million to the University of Michigan to help fund a sweeping renovation project that will provide state-of-the-art facilities for the Taubman College of Architecture and Urban Planning, one of the nation's leading programs on the built environment.  Read more. . .  

Bottled-water maker partners with 'Pure Michigan'

GRBJ.com | March 20, 2014

 

A Michigan company is partnering with "Pure Michigan" to showcase some of the state's natural beauty on its packaging. Starting this month, 24- and 35-bottle packs of Absopure Natural Spring Water sold in the Midwest will carry packaging co-branded with Pure Michigan. In the coming months, other Absopure products nationally will be packaged with Pure Michigan imagery. Plymouth-based Absopure and the tourism campaign said that they will also release co-sponsored billboards, as well as radio and TV ads.  Read more. . .

Blue Cross Blue Shield of Michigan celebrates its 75th year

March 7, 2014


BCBSM Logo

Blue Cross Blue Shield of Michigan reached a milestone on March 8, celebrating its 75th year as a nonprofit health insurer. "Our company is 75, but we're not acting our age by any means," said Daniel J. Loepp, president and CEO of BCBSM. "We're a modern, dynamic company prepared to serve and guide our stakeholders as health care transforms under the Affordable Care Act. Our stakeholders benefit from Blue Cross' experience and strong Michigan roots - given our deep relationships with doctors and hospitals across the state, and our history of engagement within Michigan's diverse communities." Read more. . .

IN THE NEWS. . .


Pay for roads and college now, or pay later

Bridge Magazine | March 25, 2014 Bridge Logo2

 

Remember the oil filter ad from the 1970s, where the gruff, grease-stained car mechanic scowls at the camera and says, "You can pay me now, or you can pay me later?"  That's exactly what we are facing in Michigan. Only it's been that way for a decade when it comes to dealing with the stuff - the fancy word is "infrastructure" - that will define much of our future: The condition of our roads and the quality of our young people's minds. Read more. . .

Michigan's potholes are scaring off investors

Detroit News | March 20, 2014

 

Would you drive on Michigan's roads if you didn't have to? The crater fields that once were our highways have taken all of the pleasure out of driving. It's impossible to plan a route of any length that doesn't take you over at least one stretch of roadbed that's unpassable without swerving and dodging. Lord knows how cops tell the drunken drivers from those just trying to stay out of tire-busting potholes.

 

Imagine asking someone to volunteer for that experience. But that's what Doug Rothwell and others like him have to do every day. As chief executive of Business Leaders for Michigan, part of Rothwell's mission is to attract job-creating investors to the state. Read more. . . 

For Tech Investors, The Midwest is Flyover Country No More

TechCrunch.com | March 17, 2014

 

These days, Midwestern entrepreneurs and investors are seeding more than just fields. A resurgent U.S. technology industry, propelled by strong initial public offerings and a healthy M&A market, as well as the launch of technology infrastructure services from companies like Amazon and Microsoft, has meant that entrepreneurs across the Rust Belt and Farm Belt are starting new technology companies in addition to more traditional manufacturing.  Read more. . .

BLM EVENTS


MARK YOUR CALENDARS FOR 2014! 
 
SAVE-THE-DATE: The 2014 Michigan CEO Summit will be on November 13, 2014 at The Westin Book Cadillac-Detroit. 

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About Us

 

Business Leaders for Michigan, the state's business roundtable, is dedicated to making Michigan a "Top Ten" state for jobs, personal income and a healthy economy. The organization is comprised of the chairpersons, chief executive officers, or most senior executives of Michigan's largest companies and universities.  Our members drive over 25% of the state's economy, provide over 325,000 direct and 820,000 indirect jobs in Michigan, generate over $1 Trillion in annual revenue and serve nearly one half of all Michigan public university students. Find out more at: www.businessleadersformichigan.com