The latest CNBC rankings of the best states for business put Michigan at #41 and the findings parallel the results of our own benchmarking studies. We issued a press release on the report.

Over the past eight months, many organizations around the state, thousands of individuals and nearly all of the state’s major newspapers have expressed their support for the Michigan Turnaround Plan. 

In an effort to continue this momentum and build support for the Michigan Turnaround Plan (MTP), we’ve created an MTP Action Kit.  The Action Kit identifies a number of simple ways individuals and groups can express their support for the Plan. 

Also, an updated version of the MTP is now available.  Dubbed “MTP 1.5,” the Plan includes updated data and action steps that communities & business leaders can take on their own to advance the objectives. 

You can download a copy of the MTP Action Kit or updated MTP by visiting www.MichiganTurnaroundPlan.com.

Business Leaders for Michigan’s second quarter survey of 75 of Michigan’s most prominent executives forecasts a loss of momentum in the nation’s economic recovery, but continue to predict that Michigan’s economy should bottom-out during early 2011.  The loss of momentum is due to a myriad of factors creating uncertainty in the markets, such as unfunded government liabilities, new regulations and the end of government stimulus programs.  The executives continue to forecast that Michigan will lag the nation’s economic performance over the next eighteen months and, as a result, predict modest new hiring and capital investment in Michigan.  The executives represent a cross-section of industries across Michigan and are in a unique position to assess the direction of the economy. 

Highlights of the survey include:

• Approximately 33 percent forecast increased hiring in Michigan in the next 6 months.  Over seventy percent forecast flat or lower capital investment in Michigan during the same period.  The hiring forecast is higher than the last quarter, while the capital investment forecast is the same.

• 82 percent believe Michigan’s economy will be the same or deteriorate over the next 6 months, about the same as the 1st quarter survey.  This is in contrast to over 90% thinking the US economy will be the same or get better. 

• 41 percent think Michigan’s economy will get better 18 months from now, a decline of about 20 percent from the 1st quarter survey results.  This contrasts to 64% who believe the US economy will be better 18 months from now. 

• Most Michigan companies expect to perform better than their sector competitors.

In the last ten years, Michigan’s per capita income has fallen from 19^th to 38^th, our population growth has been stagnant, and state revenues have declined some 30%.  We continue to be plagued by high unemployment and our tax system is uncompetitive for attracting and retaining jobs.

Our state leaders did not create the current economic crisis, and the options for solving the crisis represent admittedly difficult choices.  But the choices aren’t getting any easier.  The State Fiscal Agencies have identified a $300 million gap in the current year budget; the FY 2011 budget deficit could grow by an additional $500 million with the loss of federal Medicaid assistance; and, looking out to Fiscal Year 2012, the federal American Recovery and Reinvestment Act (stimulus) dollars will go away, adding another $1 billion to the deficit.

The proposed solutions we are hearing from our leaders are more cuts to our communities and universities – two areas that job providers consider critical for future growth.  In the last ten years state spending for our communities and universities has been cut 34% and 17% respectively.  During the same time, spending on corrections has increased 27%, giving Michigan a per prisoner incarceration cost that is 30% higher than the average of surrounding states.  Rather than making further cuts to areas that aid job creation, the Legislature should look for savings by bringing corrections spending in line with the region.