Government Relations Update

Special State of the State Edition

January 30, 2008

Special State of the State Review

Lansing–Welcome to a special State of the State edition of the Government Relations update.On Tuesday night, Governor Granholm addressed a joint convention of the legislature and outlined a number of proposals for the year.

The priorities of the speech can be boiled down to the economy and education. There were a number of areas that the Governor supported that are directly related to northwest Michigan – increasing tourism promotion funding, increasing incentives to the commercial and film industry, and growing city centers.

The governor outlined a number of proposals focused on Michigan’s lagging economy.In particular, she proposed the creation of a Job Creation Tax Credit, which will either cut or eliminate taxes for job creation, and a Michigan Invests! Fund, which would provide investment capital for business expansion or relocation.

Governor Granholm put forth the charge that Michigan should become the hub for alternative energy jobs.There are a number of companies across northwest Michigan that are focused on making products in the alternative energy industry, with more to come.A number of legislative proposals are currently in the legislature focused to that end.

Also laid out was the need to streamline the government’s interaction with the business community.This proposal has been brought up in State of the States addresses over the years, with questionable results from government.More information is needed whether this proposal is streamlining the ability for business to comply with current government regulations versus reform based on reducing government regulations and filing mandates on business.

As with any State of the State address, more information will be needed on these proposals before any real position can be taken one way or the other.Until that information is revealed on these different proposals, there will be outstanding questions as to where the funds will come from to pay for these programs or whether the funds will come from the already enacted tax increases from last fall, including the business specific surcharge on the Michigan Business Tax.Some of these proposals will be put forth as part of the Governor’s budget presentation to the legislature on February 7^th.There was no real mention in the address of lowering the tax burden currently on businesses to spur the economy.

On the education front, the governor highlighted the need for greater availability workforce training for those that have lost their job to help get them back into the job market.Also mentioned was the need to work in new ways to educate current students for the careers and jobs of tomorrow, getting them a quality education, and keeping them in school through graduation.

On all these proposals, Government Relations will keep its membership posted as they are introduced and addressed by the legislature.