BLM: Leading What's Next, June 2014

VIEWPOINT

June 2014

Focusing on Michigan's Future

The Michigan Legislature accomplished a great deal this legislative session. In addition to investing more in higher education so college could be more affordable, they balanced the budget on time and paid down debt. They also paved the way for Detroit's financial restructuring and the establishment of a financial oversight process to help ensure sound fiscal practices are used in delivering city services. All of these things are very important in making Michigan a stronger state and we commend the legislature for these actions. But MI still needs a long-term, comprehensive funding solution for maintaining quality roads and bridges in our state. At $154 per person, MI ranks last among all states for spending on roads. Sadly, MI ranks 45th in urban road condition and has 1,354 bridges that are considered structurally deficient. Right now, the price tag to bring our roads and bridges up to good condition according to most experts is close to $2 billion. That number grows every day we do not act. We have temporarily plugged the hole using general fund dollars, but this is not sustainable and comes at the expense of other important priorities.

Fixing our roads is central to our economic future, both to protect the jobs we already have and bring more jobs to the state. The condition of our transportation system causes existing MI companies and prospective businesses to question whether MI is the right location for making new investments. Access to good highways is one of the top factors in making site location decisions. To compete for new jobs and investment, we need to invest in our roads and bridges now. We can't continue to use general fund dollars on short-term fixes. We urge the legislature to continue to work on a comprehensive, long-term funding solution for fixing our roads.

OUR WORK

Business Leaders for Michigan Endorses Rick Snyder For Governor

Business Leaders for Michigan's Political Action Committee announced its unanimous endorsement of Governor Rick Snyder. "Confidence is high from the business community that under the Governor's leadership, Michigan is on the right path for a full recovery," said Michael J. Jandernoa, Director, Perrigo and BLM PAC Co-Chair. "The state is clearly turning around. Michigan's fiscal house is in order, state long-term debt has been reduced, the burdensome Michigan Business Tax has been eliminated and our state is much more competitive. The Governor has prioritized state investments in areas that will most help our economy grow, such as preschool education and higher education." Read more. . .

On the Road with Business Leaders for Michigan

Since the April roll-out of the new Michigan Turnaround Plan, BLM has been talking with business and community leaders region-by-region about how to build on the gains we've made as a state and make MI a Top Ten state for jobs and personal incomes. To date, we've completed ten of the eighteen regional forums planned in Ann Arbor, Benton Harbor/St. Joseph, Holland, Jackson, Kalamazoo, Lansing, Monroe, Oakland County, Saginaw/Bay City/Midland and Traverse City. Attached are examples of the media coverage:

ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY

Michigan is turning around. Jobs, income and GDP are on the rise. The 2014 Michigan Turnaround Plan reflects the significant progress that has been made in making Michigan more competitive. It identifies areas where we can compete, invest and grow in order to make our state stronger for generations to come.

(click here for a more detailed view of the Plan)

GROW: Establish MI as a hub of innovation and as a thriving, welcoming state

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. This includes accelerating entrepreneurship and innovation through available venture capital.

Renaissance Venture Capital Fund Continues To Thrive

The Renaissance Venture Capital Fund (RVCF) is one of BLM's great success stories. Not only has it helped grow 23 Michigan companies to date, but it has leveraged $21 for every $1 invested and earned an above average rate of return for investors. In addition, there are several success stories of matching BLM company needs with RVCF portfolio company solutions. Below is the latest status report on the Fund. Read more. . .

Michigan's URC Plays Major Role In Protecting and Advancing Michigan's 'Blue Economy'

A new report shows that Michigan's University Research Corridor (URC) is playing a major role in protecting the water resources of Michigan and the Great Lakes region and using those resources to promote economic development both in the state and globally. The three universities that make up the URC - Michigan State University, the University of Michigan and Wayne State University - received nearly $300 million in awards for water-related research and outreach from 2009 to 2013. The 2,100 awards led to innovations in a wide variety of areas, from dealing with invasive species to monitoring water quality and finding ways to optimize water use in agriculture, according to "Innovating for the Blue Economy," a report released at the Detroit Regional Chamber's Mackinac Policy Conference. Read more. . .

DATA SUPPORTING THE TURNAROUND PLAN

Higher Education Pays More Than Ever

The pay gap between college graduates and everyone else reached a record high last year, reports the New York Times based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That's up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s. Read more. . .

Federal Aid: Michigan Ranks #27

Michigan's ranking in the amount of federal aid it receives stands at 27th according to the Tax Foundation when measured as a percentage of total state revenues. This ranking is higher than in some previous years likely because of increased aid coming to the state during the economic downturn - state's experiencing disproportionate hardships get more federal support. Read more. . .

Federal Aid as a Percentage of

State General Revenue, Fiscal Year 2012

2010-2013 Per Capita Jobs Gain: MI Ranks 7th Best

Michigan created more jobs for its size than all but six states over the past three years. This analysis comes from EMSI research.

Read more. . .

Impressive Venture Capital Growth In Michigan

The Michigan Venture Capital Association (MVCA) reports for 2013:

$120 million was invested in 40 companies in Michigan, the highest number of deals since the MVCA began tracking this information. This is an increase of 111 percent over the last five years.
There were 103 active venture-backed firms in Michigan in 2013, a 66 percent increase over the last five years.
Michigan-based venture capital firms had $1.6 billion dollars in capital under management, an increase of 45 percent in the last 5 years.
There were 33 venture capital firms either headquartered or with an office in Michigan, an increase of 50 percent in the last five years.

Download the full report.

SPOTLIGHT ON OUR MEMBERS

Fast Company: Dow Chemical among 'world's top 10 most innovative companies in energy'

MLive.com | May 23, 2014

The Dow Chemical Co. is among "the world's top 10 most innovative companies in energy," according to the website FastCompany.com. Fast Company staff named Tesla Motors No. 1 on the list of "the world's top 10 most innovative companies in energy," followed by GE at No. 2 and XL Hybrids at No. 3. Midland-based Dow Chemical took the No. 6 spot on the list, "for redesigning the notion of the solar home with dead-simple shingle arrays" - DOW POWERHOUSE Solar Shingles. Read more. . .

10 who made a difference: Michiganians of the Year

Detroit News | June 4, 2014

Once again, for the 36th year, The Detroit News salutes Michigan citizens who exemplify excellence, determination, innovation and inspiration. These 10 people are hailed as Michiganians of the Year - individuals whose contributions to the state and public welfare go far beyond the ordinary.

BLM Member Andra Rush, Chair & CEO of Rush Trucking Corp., Detroit Manufacturing Systems LLC and Dakkota Integrated Systems LLC, was honored for her hiring efforts in the city of Detroit. Her companies employ 2,700 workers across the U.S. and Canada. Rush has made a concerted effort to hire Detroiters; about two-thirds of the DMS workforce live in the city, and about 10 percent are veterans. Read more. . .

Daniel Loepp: Roger Penske's impact on Detroit

Detroit News | June 10, 2014

Daniel J. Loepp, President & CEO, Blue Cross Blue Shield of Michigan, recently wrote this opinion piece for The Detroit News: Every once in a while, you have to give credit to a community leader for the extraordinary impact he's been able to make across generations. I had that sense after attending the Grand Prixmiere charity gala and Grand Prix on Belle Isle and seeing the incredible event footage from the island on television. The historic Scott Fountain was once again strikingly lit and flowing, the island was tidy and lush, the sun shone brilliantly and TV cameras beamed footage of incredible sunsets, a glowing skyline and boats moored in clear blue waters to the whole world. Read more. . .

IN THE NEWS. . .

Gerry Anderson: In Detroit, streetlights are key in fighting blight

Detroit News | May 30, 2014

Gerard M. Anderson, President & CEO of DTE Energy Company, recently wrote this opinion piece for The Detroit News: I travel regularly with my leadership team across the U.S., Europe and Asia to meet with investors and convince them that DTE Energy and the state of Michigan are solid investments. At some point in every meeting we are asked, in a concerned tone, "how do you feel about the future of Detroit?" Today I am able to answer them quickly and confidently: The future of Detroit is brighter than at any time in my 20 years here. As is often the case, when newspaper headlines are reporting the worst, reality has hurried on. I believe we are on the cusp of great things in Detroit. Read more. . .

Detroit aid package awaiting governor's signature

Governing | June 4, 2014

The grand bargain of bills that will send $194.8 million from the state to the City of Detroit to help settle the city's bankruptcy sailed through the state Senate with large bipartisan majorities and are on their way to Gov. Rick Snyder for his signature. Passage of the bills was a seminal moment in the city's historic Chapter 9 bankruptcy process and will strengthen the possibility of a successful reorganization and emergence. Read more...

Business Leaders Applaud Funding Increase to Universities

DBusiness | June 12, 2014

The Michigan Legislature approved a budget bill Wednesday that includes a 5.9 percent increase for Michigan's 15 public universities - a critical move in positioning the state as a top 10 player for jobs, personal income, and a strong economy, says the Business Leaders for Michigan, the state's business roundtable.