December 16, 2004
December 16, 2004
LANSING – At the end of her second year in office, Governor Jennifer M. Granholm said that the economic plan she laid out 11 months ago is making Michigan stronger today and is laying the foundation for the state’s economic future.
“Michigan’s economic future depends on this state’s ability to diversify its economy, make its quality of life attractive for new citizens and new businesses, and prepare its workers to capitalize on those new opportunities,” said Granholm. “Our plan is laying that foundation for the future and making real changes for Michigan’s citizens right now.”
Granholm pointed to small business growth, research and development investment growth, and a double-digit increase in the number of businesses doing bio-science research as evidence that Michigan is making progress that will translate into future growth.
“Michigan is in the midst of a major economic shift from an economy traditionally driven by muscle-power to one increasingly driven by mind-power,” Granholm explained. “This administration is planting the seeds that will ensure growth in the future while at the same time we’re making real changes for our citizens right now.”
Granholm outlined four major areas of success at the mid-way point of her first term.
1. Focused on improving the economy today and tomorrow by making half a billion dollars available to attract entrepreneurs to the state; creating Regional Skills Alliances; reducing red-tape businesses face when seeking permits from the state, and fighting for legislation to retain businesses and the jobs that go with them. And, got results: Michigan is attractive to new businesses – small businesses grew by 2,400, seven companies opened new headquarters in Michigan this year, and state support helped create or retain 130,000 jobs.
2. Expanded affordable health care to 300,000 uninsured people by opening federally qualified health care centers in Jackson and Detroit; offered Michigan residents more affordable prescription drugs through the MIRx Card; and enrolled nearly 50,000 children in the Healthy Kids and MiCHILD programs.
3. Put the state's financial house in order by eliminating a $3 billion deficit; trimming $220 million in contract expenses; saving $13 million by eliminating 2,500 cars from the state’s fleet; and saving $14 million in administrative costs by turning off the lights, eliminating color copying, and reducing cell phone use.
4. Protected Education by challenging state universities to hold the line on tuition increases; funding – for the first time – K-12 education at higher levels promised by the previous administration; avoiding cuts to the per-pupil foundation grant as recently as this month; and, appointing the Commission on Higher Education and Economic Growth which has outlined a roadmap for universal education in Michigan.
Granholm’s vision for Michigan, she said, is to finally change Michigan’s image from the “buckle of the rust belt” to the “epicenter of the 21st century economy.”
“Michigan’s automotive heritage is the base on which our state’s new economy must build and expand,” she said. “But the state’s economic recovery cannot rely solely on the automotive industry’s rebound. We have to attract new industries to create new jobs.”
Granholm noted that while her administration has made progress, it has also continued to focus on problems it inherited that could not be ignored.
“There were a lot of weeds that needed to be pulled in Michigan’s garden,” said Granholm. “It’s tough to grow when you’re weighted down by debt, overspending, and broken systems. We fixed those problems and are charging forward.”
As the Governor looked forward to 2005, she called on the Legislature to work with her to restructure the state’s business tax structure and to stay the course on maintaining the state’s quality of life.
