We’re all frustrated by the limited progress being made fixing Michigan’s economy.  But the answer isn’t to give up or feel the problem is too big for you to impact.  The answer is to get engaged!

•       Get every civic, business or community group you are part of to spend time talking about the Michigan Turnaround Plan.
•       Get those groups to express their formal support for the Plan – it doesn’t mean you have to agree with every recommendation, just most of it.
•       Ask candidates running for office very specific questions about what they will do if they are elected.
•       Ask candidates how they will work across party lines and seek reasoned compromise to get things done.
•       Give financial support only to those candidates that are aligned with your views.
•       Write or call your elected leaders.  Praise them when they cast difficult votes.  Tell them when you disagree.
•       Talk to your employees, friends and co-workers about the Turnaround Plan and ask them to get engaged.

As citizens of this great country and state, we have a responsibility to spend some time engaging in the governance of our democracies.  Most of us haven’t allocated enough time to do this in recent years.  But that has to change if we are going to leave a better country and state for the next generation.  It’s time to engage!

An observation - One of the reasons we sometimes don't feel like progress is being made is because we have a propensity to celebrate success only when something really big or controversial happens.  Yet, the state passed teacher retirement reforms that will save about 3 billion over ten years and little was heard outside the editorial pages of a few newspapers!  While more actions are needed to turnaround Michigan, this was a big step forward.  Maybe you should write your legislator if they voted for this and thank them for their courage!

For your legislator's contact information, click the "Find Your Representative" link at: http://www.michiganturnaroundplan.com/email-elected-officials.php

Business Leaders for Michigan board members are hosting regional forums across the state to raise awareness & support for the Michigan Turnaround Plan.  Forum attendees include business, civic & community leaders.  To date, forums have been held in Southwest Michigan, Traverse City, Lansing, Saginaw and Flint.  Upcoming forums will be held in the Upper Peninsula, Monroe, Ann Arbor, Jackson, Kalamazoo, Grand Rapids, Detroit, Oakland and Western Wayne.  

Michigan's economy didn't get where it is overnight - it took 50 years of growing slower than the rest of the nation.  So we aren't going to correct this situation in year or with just one or two "silver bullets." It's going to take us all supporting a holistic package of reforms - that means we have to put Michigan first and give a little of what we want today for the good of our long-term future. You might think that's going to be a tough sell in a state the leads the nation in unemployment and whose per capita income has fallen to 37th in the nation! In fact the opposite is true - polls say the people want bold reform and recognize it has to include both budget and tax changes. So tell your legislators, who are getting pressured everyday by those that resist change, that you are behind them and will support them if they put Michigan ahead of the short term interests

If the legislature fails to act by April 11, state workers will get a 3% pay increase in October. State employees are good workers and deserve our support.  But when taxpayers have seen their pay cut or frozen for several years to a point where their per capita income is now below the national average, it makes no sense to ask them to raise the pay of State workers who are paid above the national average when critical state services are being cut.  You can do something about it – call your legislator NOW and tell them you want them to act to stop the pay raise!  Visit www.MichiganTurnaroundPlan.com and click the“Tell Your Legislator How You Feel” button to find your representatives and write them a note!

The "letter to the editor" below was submitted to newspapers associated with MLive.com throughout Michigan to clarify work Detroit Renaissance is engaged in to advance state tax reform.

Dear Editors:

I want to clarify a few points reported in Peter Luke's June 28 column in MLive.com regarding efforts to reform Michigan taxes.

• Data is used showing Michigan has an "average" tax burden.  This data ignores the fact that the total costs of doing business in Michigan, including wages, benefits, utilities, regulatory compliance, etc., is above average and that most states we compete with for jobs have below average costs.

• The Anderson Economic Group is identified as working for Detroit Renaissance and Speaker Andy Dillon and Detroit Renaissance as working with just Speaker Dillon on a plan.  Anderson Economic Group is under contract with Detroit Renaissance to study tax reform options and Detroit Renaissance has been working with the majority and minority leaders of both the House and the Senate on devising a plan.

• The graduated income tax is reported as polling well.  We are the only private sector group that we know of that has polled this idea and can report it does not poll well and is viewed even more negatively the more people understand how it works.

Detroit Renaissance believes the State's first priority should be to enact significant structural budget reforms to get its fiscal house in order before considering tax changes.  But since the cost of doing business in Michigan requires incentives for virtually every new job being attracted to the state, we believe a tax reform plan that reduces business costs in a fiscally responsible way is necessary and can be accomplished.  However, we believe those advocating for a graduated income tax really just want to increase state revenues instead of reforming the way the state spends its money.  This would be the worst possible outcome for the future of Michigan.

Sincerely,

Doug Rothwell, President

Detroit Renaissance

A quick perspective on the mood and outcomes from this year's Mackinac Policy Conference:
 
The Good:

- Mayor Dave Bing's decorum, class and integrity was in full view
- Mayor Bing and County Executive Ficano's fast, bold and collaborative approach to keeping GM in downtown Detroit
- Speaker Andy Dillon's support for bold tax reform and recognition that getting rid of the MBT surcharge alone won't make Michigan competitive
 
The Bad:

- Regional in-fighting over Cobo Hall, GM's headquarters and the aerotropolis
 
The Ugly:

- The continued lack of political leadership, collaboration and sense of urgency to resolve the state's budget deficit

The region, not just Oakland County, took a hit this week with the passing of Dennis Toffolo, Oakland County's Deputy County Executive for Economic Development.  Dennis was a team player and always tried to look for "win-win" solutions to growing the economy.  A former Renaissance Board Member when he was President of Hudson's Department Stores, Toffolo recognized the importance of regionalism.  He was a tireless advocate for development in Oakland County, but understood that Oakland coundn't be successful without a strong region.  Dennis, you will be missed for your friendship, counsel and tireless belief in Michigan.
 
- Doug

Over the past two weeks, bills have been introduced to redirect Cobo funding to move the Auto Show to Novi, an effort has been launched to relocate GM's headquarters to Warren and a new economic alliance has been formed north of 8 Mile Road.  Coincindental timing?  Maybe, maybe not.
 
But here's the problem with all of it.  Dave Bing just got elected as Detroit's new Mayor which gives us a chance to put the City and several regional initiatives back on track.  Can't we give the new Mayor a few weeks breathing space?

The budget.  Until the State and City of Detroit get their's structurally balanced, nothing else matters.  The missed revenue forecasts, one-time budget fixes and reliance on federal stimulus dollars is causing unprecedented fiscal uncertainty.  This in turn has caused some to speculate the State and City will have to dramatically raise taxes which will only cause more businesses and people to consider locating elsewhere.
 
The Center for Michigan and many business organizations, including ours, have identified billions of dollars in structrual budget reforms.  Virtually none have been adopted so far.
 
Over a $2 Billion deficit looms in 2011 in Lansing.  Detroit's deficit is at $300 Million and growing.  Both are nearly 20% of their respective budgets.
 
The budget.  If it doesn't get fixed, we can forget getting our state and region back on track.