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July 2014
Proposal 1 is Good for Michigan
Imagine you buy a new laptop. You pay for the computer (with 6 percent Michigan sales tax, of course), but then you learn you are not done. You must also pay a tax on that laptop every year from now on, over and over again. Would you buy that computer?
This is the calculation businesses must make every time they consider buying a new machine, piece of furniture, or other technology here in MI. For generations, personal property taxes have been levied against business investment in our state -a real disincentive to jobs and economic growth.
It's time for the personal property tax to be eliminated. It's tough enough to attract job providers in a competitive global economy; let's not make it harder by adding a tax structure that just doesn't make sense.This August, MI voters have a chance to eliminate it with Proposal 1.
Some might think that local units of government who rely on the personal property tax as a source of revenue would want to keep it, right? WRONG. MI's communities have come together as major supporters of Proposal 1. They dislike the wild revenue fluctuations associated with the tax, their inability to plan budgets, and the difficulty of administering assessments.
It really says something when those who benefit from a particular tax want to get rid of it as much as everyone else. That is why the MI Legislature developed a plan that will:
- Immediately repeal the personal property tax for MI's small businesses.
- Phase out the tax over the next decade for manufacturers.
- Replace lost revenue for locals using a portion of the state's existing use tax, a special assessment for manufacturers, and revenue gained from ending special business tax credits.
BLM's view: Proposal 1 is right for our state. It eliminates the Personal Property Tax and creates a more stable funding stream for communities and a fairer tax structure that favors new investment in MI without any new taxes for state residents. That's all good for Michigan!
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BLM Seeks Federal Support of the Turnaround Plan
In late June, BLM went to Washington D.C. to advocate for actions that would support Turnaround Plan recommendations. After hosting a meeting for the Michigan delegation, BLM met with  Speaker of the House John Boehner and individual members to discuss federal tax reform, immigration, workforce development, the New International Trade Crossing and R&D investments. Optimism was high that funding for the bridge customs plaza and workforce development reform would happen still this year. BLM also sent a letter to Senators Levin and Stabenow urging passage of the Workforce Innovation and Opportunity Act (WIOA) which passed the Senate. The WIOA is the first major reform to federal workforce development legislation in over a decade and provides states with greater flexibility to focus on real-world job training needs. This bi-partisan legislation addresses a Michigan Turnaround Plan goal of strengthening worker training programs.
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BLM's Work to Strengthen Higher Education in Michigan is Gaining National Recognition
The "Michigan Model" for funding higher education institutions based on performance is getting attention as states across the nation grapple with how to strengthen their university systems after years of disinvestment. As part of BLM's continued efforts to make college more affordable and leverage higher education to accelerate Michigan's growth, BLM has been meeting with higher education experts from across the nation. The objective is to develop a long-term strategy that identifies the actions needed to fully leverage Michigan's higher education system to drive long-term economic growth.
Download recent articles:
GOVERNING: How the Pizza Guy Helped Change Michigan's Higher Education Funding
NATIONAL JOURNAL: How Michigan Universities and Businesses Teamed Up to Save a Faltering State
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REGISTRATION IS NOW OPEN!
Join us for the 3rd annual
November 13, 2014 |
The Westin Book Cadillac Detroit
8:00 - 3:00 p.m. | Admission $125
To register, visit www.businessleadersformichigan.com/events or
call Jennifer Hayes at 313-259-5400.
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ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY
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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.
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DATA SUPPORTING THE TURNAROUND PLAN
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Michigan Wins Federal Manufacturing Designation
Michigan was chosen to be one of 12 states to receive the Investing in Manufacturing Communities  Partnership designation. The designation allows MI to receive priority consideration for $1.3 billion in economic development funds to make targeted investments designed to strengthen regional manufacturing. In addition, each designated community will also receive a federal liaison and branding support to promote it as a designated Manufacturing Community and help attract additional private investment and partnerships. Read more . . .
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2013 State GDP Growth: Michigan #21
Michigan's GDP rose 2.0% in 2013 according to the Bureau of Economic Analysis. This ranked MI 21st best among the states. MI's GDP growth has remained about 2% since a fast take-off of over 5% in 2010 coming out of the recession. Read more. . .
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2013 State Personal Income Growth: 24th | Personal Income Rank: 35th
The Bureau of Economic Analysis also released data showing that MI's personal income grew by 2.5% in 2013 to rank 24th best in the nation. That placed the output measure we track for reaching Top Ten status - per capita personal income - at 35th best or 12% below the national average. That's up from a low of 38th several years ago. Read more. . .
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Michigan Bond Rating Still Lags
Despite adopting four straight structurally balanced budgets that pay down debt and build up reserves,MI's bond rating still lags near the bottom of all states at AA- according to the Pew Center for the States. It shows how long it takes to recover a healthy bond rating after a decade-long recession and the impact of local fiscal emergencies like Detroit, Flint, Benton Harbor and others. Read more. . .
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CNBC Best States For Business: Michigan #26
Using 56 measures of competitiveness, CNBC ranked Michigan 26th best state to do business in this year and one of America's 10 "comeback states." MI scored best for its level of innovation (R&D) and availability of workers and worst for K-12 test scores, long-term funding of higher education and regulatory climate. Georgia (the yellow dot on map) was ranked the #1 state. Read more. . .
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10 defining issues of Mary Sue Coleman's University of Michigan presidency
 MLive.com | June 19, 2014 When Mary Sue Coleman was introduced to the public as the University of Michigan's 13th president in2002,she held up her hand to the crowd and pointed out her new home, Ann Arbor, on her makeshift map of the Mitten State. "This is going to be the experience of a lifetime," Coleman said in May 2002. "I hope I can be very good for Michigan. I'm going to try my best." Read more. . . |
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NeoCon 2014: West Michigan office furniture companies win top awards for second year in a row 
MLive.com | June 10, 2014
West Michigan furniture companies collected many of the top Best of NeoCon awards on the first day of the trade show at Chicago's Merchandise Mart. Haworth's The Openest Collection by Studio Urquiola, impressed the judges, who gave it not only gold for collaborative collections but Best of Competition, the contest's top award. Read more. . .
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Cindy Pasky: A 2014 Champion of the New Economy
DBusiness.com - May-June 2014
Why She is a Champion of the New Economy: After working for companies large and small in the IT sector, Cindy Pasky, made a leap of faith in 1990 and started Strategic Staffing Solutions (S3) in Detroit. Every year, the global IT and business services firm has recorded revenue gains. Last year, sales were $238 million. Now with more than 2,000 employees in the United States and Europe, Staffing Industry Report ranks the company the 16th largest staffing firm in the country. Read more. . .
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Nearly 1 million small businesses open in Michigan
Crain's Detroit Business | June 18, 2014 
Nearly 1 million small businesses operate in Michigan - accounting for nearly half of the state's private employers. To be precise, Michigan has 856,273 firms with fewer than 500 employees, according the U.S. Small Business Administration's annual state-by-state look at small business in America. The data, released today, looks at the demographics and lifecycle of these firms from 2010 to 2013. Read more...
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Tom Walsh: U.S. firms are moving factories home to be closer to customers 
Detroit Free Press | June 15, 2014
Globalization, for many years, was kind of a dirty word in America - particularly here in Michigan, where we always seemed to get the short end of the stick as far as jobs and trade imbalances with China, Japan and, as H. Ross Perot memorably phrased it, "that giant sucking sound" from Mexico. Lately, though, we keep hearing stories of big U.S. companies bringing work back home from abroad: Apple making computers in Texas as well as China; Ford, General Motors and Chrysler shifting work and thousands of jobs from Mexico; Wal-Mart vowing to boost purchases of U.S.-made goods by $50 billion over 10 years. Read more. . .
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Phil Power: Has the tide finally turned for Michigan?
MLive.com | June 10, 2014 
"A rising tide lifts all boats." - The line kept running through my head as I mulled over the optimistic chatter at the Detroit Regional Chamber of Commerce's policy conference on Mackinac Island last month. I've been going to these gatherings for some time now, and this is the first time in years that I've heard such optimism expressed about so much by so many. Read more. . .
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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.
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Paid for with Regulated Funds by Business Leaders for Michigan, 600 Renaissance Center, Suite 1760, Detroit, MI 48243
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