May 2014 

High Hopes for Detroit

Across Michigan, voters say they want a revitalized, healthy Detroit.  Nearly 90 percent of the statewide voters surveyed at the end of April believe the Motor City offers promise to the state as a whole, and they are eager to see renewal, transformation, and collaboration.

There is a strong sentiment that Detroit is on the right track.  A large margin of the people surveyed (66%) say they support a 20-year/$350 million funding proposal that matches state funds with private foundation support to protect City pension benefits and preserve the DIA's art collection.

That's a pretty clear mandate for change.  The Governor and those who have been working hard to identify innovative strategies for Detroit have the support of Michiganders in all regions of the state.  Let's use the momentum to deliver meaningful change for us all. It's important to remember that while the City's government structure is going through bankruptcy and righting itself... businesses in the City have been investing and growing.

When it comes to MI's turnaround, we are all Detroiters now. Let's work together and make change happen.

In Short- and Long-Term, Job Leaders Continue To Be More Optimistic About MI Economy than U.S. Economy

Business Leaders for Michigan projects that the Michigan and U.S. economies will grow in the next 6 and 18 months and expects MI's economy to continue to outperform the U.S. economy. "The good news from this survey is that MI's largest employers continue to be much more optimistic about MI's short- and long-term economic prospects than they were a couple of years ago," said Doug Rothwell, President and CEO. "Job providers continue to be bullish on the state's economic prospects and are backing it up with increased hiring and investment. More than half of Business Leaders for Michigan companies are forecasting increased investment in MI over the next six months."

Our view:  Because there are a virtually unlimited number of places where business can locate in a global economy, Michigan has to be better on most business climate factors compared to competitor locations.

Support your local businesses and grow our economy

On August 5, 2014, Michigan voters will be asked to approve a proposal that will make Michigan more competitive by phasing out the personal property tax for small businesses and manufacturers while stabilizing funding for local services like police, fire, schools, ambulances, jails, roads and libraries.

Currently in MI, all businesses must pay a personal property tax on every piece of equipment they own. So not only do businesses pay the six percent sales tax when they purchase equipment, they also pay a personal property tax for every year that they OWN the equipment.  No other Great Lakes state taxes business equipment at the levels we do, and most don't tax business equipment at all. This proposal would immediately eliminate the personal property tax on small businesses, and phase it out over nine years for larger businesses, creating 15,000 jobs and generating an additional $450 million in business investment.

While many communities rely on the money raised by the personal property tax to help fund services, this proposal guarantees that 100 percent of the money communities received from the personal property tax will be replaced from a more stable source of state revenue.  So, the proposal is a win-win for MI businesses and our communities.

Learn more about this important issue at www.StrongAndSafeCommunities.com today.

Our view:  Michigan must cultivate its strongest assets to ensure lasting prosperity and position itself as a welcoming place for all. From our core cities to our abundant human, technological, and natural resources, we can make the most of what we do best to grow a brighter future for our state.

Michigan Chosen for a New Immigration Center

Michigan has been selected to receive a federal center to ease the bureaucratic burdens facing foreign businesses that want to locate in the state.  The centers, better known as EB-5 centers, act as a one-stop shop to help businesses through the process of obtaining visas for employees they plan to bring to MI.  The center will work in conjunction with a new state department called the Office for New Americans to try to encourage foreign investment in Michigan.  To qualify for the EB-5 designation, a company must agree to invest at least $500,000 in distressed areas of the state or $1 million elsewhere and employ at least 10 people.  

Recent news coverage:  

Immigrant investors welcome in Michigan

Michigan gets US center for investor immigration

Feds approve center to encourage immigrant investment in Michigan 

MI: 41st Lowest Personal Income Tax

Although not usually considered a primary site location factor, personal income tax rates do impact perceptions of a state's business climate.    The Tax Foundation lists only two states with lower rates and seven that have no income tax at all. Read more. . .

Tax Foundation

Top State Income Tax Rates

MI: #6 Most Competitive State 

Site Selection magazine ranked Michigan as the 6th most competitive state in 2013.  Michigan has risen in the Site Selection rankings in recent years based on a strong increase in expanded facilities.  The ranking is based on ten factors including the total new and expanded facilities, total capital investment in new and expanded facilities, total new jobs created, state tax climate as ranked by the Tax Foundation and the Beacon Hill Institute's State Competitiveness Index. Read more...

MI Ranks #36 High School Graduation Rates

 America's Promise Alliance this week issued a report showing that while Michigan had improved high school graduation rates from 74.3 to 76% over the past year, it wasn't good enough to move us out of the bottom third of all states.  Graduation rates were higher among all surrounding states.  Read more. . .

Coleman to leave a legacy of achievement at U-M

Detroit News | April 28, 2014

As President Mary Sue Coleman winds down her tenure at the University of Michigan, she's being lauded as an extraordinary leader who steered the school through one of the state's worst economic storms, leaving it not only intact, but stronger than before. During her 12-year reign, state funding to higher education suffered unprecedented cuts as MI's economy contracted. Yet Coleman oversaw the most successful fundraising campaigns of any American public university, initiated major improvements to U-M's academic and athletic facilities and positioned higher education to play a lead role in transitioning the state into a high-tech, research-based economy. Read more. . . 

Whirlpool renews partnership with nonprofit

GRBJ.com | April 23, 2014

Whirlpool is renewing its longstanding partnership with a housing nonprofit. The global appliance maker based in Benton Harbor said this month that it will donate more than $5 million in products to Habitat for Humanity this year, providing a range and refrigerator in every new Habitat home built in the U.S. and Canada.  Read more. . .

6 takeaways from Business Leaders for Michigan luncheon in Saginaw Township 

MLIVE  | April 29, 2014 

Business Leaders for Michigan President & CEO Doug Rothwell counted fewer regulations, a more competitive business climate and growing personal income among the state's successes so far, but the progress can't stop there, he said. "The biggest thing we're worried about as the business leaders of the state is complacency," Rothwell said. "...This is the time for us to get re-energized." Read more. . .

MI's Governor Says State's Venture Capital, Tech Sector is On the Rise

Wall Street Journal | May 5, 2014

Detroit's financial problems have gotten a lot of attention in the past few years, but there is another economic story unfolding in Michigan, Gov. Rick Snyder said. The state has become the high-tech hotbed of the Midwest, and has climbed from being 41st in the nation in terms of entrepreneurial activity and investing to the sixth-place spot in under a decade, the governor said. Read more. . .

Macomb suburbs consider fire department mega-merger

Detroit News | May 8, 2014

Four Macomb County communities are talking about forming a mega-fire department - possibly the largest in the state - that would provide emergency services to nearly 270,000 residents. Sterling Heights, Mount Clemens and Clinton and Harrison townships are moving forward with a $200,000 study that will examine cost savings, community needs, staffing and the deployment of resources, among other topics. Read more. . .