We're a little more than half-way through the year, and I want to take a moment to share with you and thank you for some exceptional accomplishments that we, as a team, have made so far this year. I'm proud to share that:

1) Governing magazine recognized Michigan as an outstanding leader in its Government Performance Project (GPP) report titled, "Grading the States 2005." The nationwide report card gives Michigan high marks in the areas of money, people, infrastructure, and information management. Only Virginia and Utah scored higher than Michigan - both received an A-. In addition to the state of Michigan, four other states received a B+. This just underscores our total commitment to running a lean, but not mean, Michigan. Our goal is to ensure that citizens get every penny of value out of every one of their tax dollars, which I believe we have done and continue to do. We can do nothing less than provide the services citizens most want in the most efficient way possible.

2) Michigan tied with Georgia as the nation's second-most competitive state for business attraction and growth, according to Site Selection magazine. The annual ranking weighs states according to an indexing system based on 10 criteria, including per capita jobs and investment numbers for 2004, rates of growth in new and expanded facilities, and placement in the magazine's annual business climate survey. From day one, our goal has been to make Michigan a great place to live and to locate and grow businesses, and we are now beginning to impact the rest of the country with what we already know. I am extremely pleased with our efforts as the second most competitive state in the nation, but our sights are still set on becoming the most competitive state - and with your continued help and quest for excellence, we can accomplish it.

3) Michigan's SmartZone program won the national "Best Practice" award for regional economic development initiatives by the U.S. Small Business Administration. The program was recognized for outstanding innovation in creating a collaboration between the State of Michigan, local communities, businesses, universities, and private firms to create new technology clusters in the state.

4) Small Times magazine announced that Michigan ranks fifth in the U.S. for small tech development, further validating the state's claims as a small tech industry leader. Small tech includes the development and applications of microelectromechanical systems (MEMS), microsystems, and nanotechnology. Michigan had an exceptionally strong showing in the category of venture capital devoted to small tech, advancing to third in the nation from last year's ranking of ninth.

5) The Michigan Department of Natural Resources (DNR) received a "Wings Across the Americas Award" in the research and management partnership category from the U.S. Forest Service. The award recognizes the partnership between the Forest Service and the DNR in managing the Kirtland's warbler, a federally endangered neo-tropical migratory songbird that is one of the rarest birds in the world.

6) The Department of Information Technology's Michigan Public Safety Communication System (MPSCS) has been recognized for innovation and excellence by the American Council for Technology. This is an award for outstanding programs in government technology. MPSCS is a state-of-the-art digital, two-way mobile radio communication system used by many state and local first responders in the event of an emergency. The MPSCS was chosen from more than 60 nominations from around the country.

7) Due to the efforts of MDOT employees, the City of Lansing and the project contractor, the Capitol Loop street project in Lansing was completed three months early, saving the state money.

8) Another MDOT accomplishment was the early opening of the Washington Boulevard Bridge over M-10 in Detroit. This project was finished 20 days ahead of schedule - just in time for the kick-off of International Freedom Festival at the end of June.

I want to thank everyone who contributed to these projects - thank you for your hard work and for your continued dedication which made these awards and accomplishments possible.

I also want to thank each and every State of Michigan employee for the work that you do each and every day, all year long for the people of the state of Michigan. While your department or agency may not be named above, your work place and your contributions are none the less important to me or the people of Michigan. Thank you.

Sincerely,

Jennifer M. Granholm

Governor