Governor John Engler
Friday, March 6, 1998
Thank you, Jan (Adcraft President Jan Starr, Exec. VP, Managing Director, Ogilvy &
Mather.)
Thank you all very much for that warm welcome. I am honored to have this opportunity to
address the Adcraft Club of Detroit.
As I begin I do want to point out a small matter of scale. Media buyers here with us
today will appreciate this. As you all are well aware, the price of an advertising spot on
the final episode of Seinfeld is reportedly $2 million.
That's the same amount, I will spend on my entire general election campaign for
governor. Talk about campaign finance reform, maybe we need advertising finance reform!
As Jan noted, next month, you'll be hearing from GM's marketing genius Phil Guarascio,
Geraldo Rivera and Lloyd Carr. Phil, Geraldo, and Lloyd. That's like an inside-out
sandwich -- two pieces of steak around a slice of rye!
Even though I am a graduate of Michigan State, I am thrilled that the University of
Michigan won the national title and achieved the number one ranking.
What you may not know, however, is that Michigan has achieved a number one ranking in
wide range of other important categories. Let me just list a few.
Actually, to be honest, it is more than a few. There are 14 on my list, and there are
many others. So I'd like to take a few minutes to detail for you how Michigan is number
one, and then, I'd love to take your questions.
The first item on my list is personal growth -- oops, I mean personal income growth.
During the first half of the 1990's, Michigan was #1 in Personal Income Growth. Income per
person in our state has climbed by more than $6,000.
Just recently, a national business magazine rated Michigan number one in America for
New Facilities & Expansions.
Last year alone, nearly 1,300 new factories or expansion projected were completed in
our state. That compares to less than 50 just six years ago.
At the same time, Michigan ranked number one in new or expanded manufacturing
facilities -- more than Ohio, Illinois and Wisconsin -- combined.
We figured if Lloyd Carr's Wolverines could beat'em, we should too.
Our state is also number one in training our people to work in those facilities.
Indeed, last year, the National Alliance of Business rated our workforce development
system as the best in the nation -- number one.
The Michigan Jobs Commission was chosen by Coopers and Lybrand as the number one
investment promotion agency in North America.
And with 4,000 visits to state businesses each year, the Jobs Commission has the
nation's largest business retention program.
If you're counting, that's six number one's so far. And number seven is a biggie --
Michigan is number one in cutting taxes.
Since 1991, I have been proud to sign 24 tax cuts -- tax cuts that have saved Michigan
families and businesses $11 billion.
I should note that there is one tax cut that was a hot topic when I spoke here in 1995.
And later on that year, I was pleased to sign legislation exempting creative services from
the state sales tax.
Next year, when I come back to address the Adcraft Club, we'll be at 25 tax cuts -- at
least 25.
Talking about taxes, Michigan is also number one in providing tax incentives to help
companies create jobs.
For example, our Michigan Economic Growth Authority has helped nearly 50 companies
create more than 26,000 jobs and spurred the investment of nearly $1.25 billion in
Michigan.
And Michigan's unique tax-free Renaissance Zone program has helped more than 50
companies create 4,000 jobs in our state's most hard-pressed areas -- both urban and rural
-- from Detroit to Grand Rapids to the Upper Peninsula.
Tax cuts -- especially the Proposal A property tax cut -- have created a home-building
and buying boom in Michigan. The result -- a number one ranking in home values.
The price of the average home in Michigan climbed 7.2 percent in 1997 -- number one in
the U.S.
And the Detroit Free Press reported last Sunday that the value of the average home in
the metro Detroit area has climbed by $20,000 in the last two year -- $20,000!
I sense that my house in Lansing is no exception. It must be worth a lot more, too,
because so many people want to live there!
That leads me to number ten in my list of number one's. While home values are soaring
to record highs, Michigan is now home to the fastest growing venture capital industry in
Michigan.
In little more than a year, we've gone from virtually nothing to more than $300 million
in venture capital -- available to power the creation of new and exciting businesses that
generate profits and create jobs.
Those ten are just Michigan's number one rankings in business categories. Let me just
take a minute to talk about some important nonbusiness achievements.
For example, the national Institute for Children rates Michigan as the best in the
nation in moving children from foster care into adoptive homes.
Indeed, I am proud to report that thanks to the leadership of Lt. Governor Connie
Binsfeld, we have doubled the number of children who are wards of the state who are
adopted into permanent, loving homes each year.
Connie ought to be a candidate for your Woman of the Year!
In addition, when it comes to children, especially infants and toddlers, Michigan is
leading the nation in increasing our immunization rate. In fact, Michigan was the first
state to implement a statewide immunization registry.
Okay, that was number twelve. Number thirteen on my list has nothing to do with bad
luck. Actually, it's very good news. Michigan leads the nation in reducing the number of
abortions -- down more than one-third in the last ten years -- and that's something
everyone can applaud.
Finally, thanks to welfare reform, Michigan is number one in strengthening families by
helping them go to work and achieve independence.
And since 1992, more than 140,000 families have achieved independence from welfare
checks because they were earning paychecks. And of the families still on family still on
welfare, nearly one in two are working and getting closer to independence.
As a result, welfare caseloads are at the lowest level in nearly 30 years.
That puts them right in the ballpark with CBS's ratings for the Winter Olympics -- the
lowest in 30 years. But our low numbers are good news, very good news.
There you have it. Fourteen critical areas where Michigan is number one.
Just wait -- the NCAA hockey and basketball tournaments haven't even begun yet. There
are definitely more number one's in our future.
Our goal must be nothing less than making Michigan "first in the 21st
century."
In my State of the State address, I unveiled 15 proposals -- bold proposals -- to
accomplish this goal. I'm talking about:
- cutting the income tax for families and workers, saving $3 billion,
- helping all children read by the fourth grade,
- getting tougher on deadbeat fathers and drunk drivers.
- expanding Michigan's nationally-acclaimed welfare reforms,
- expanding health insurance to virtually 100 percent of Michigan children,
- amending the Constitution to protect taxpayers,
- and making Michigan cleaner through a $500 million Clean Michigan Initiative.
Ladies and gentlemen, while Michigan's progress in the last seven years has been
awesome, we must keep on moving forward. We cannot remain number one by standing still.
Getting to the top was a job few thought Michigan could ever finish, but we did it. And
staying on top won't be easy.
But I am ready for the challenge and I invite you to join me in getting the job done.
Thank you very much.
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