Granholm Fights to Protect Michigan Way of Life

January 29, 2008

State of the State address outlines steps to grow jobs, educate children, give citizens tools for success in new economy

Photo Gallery Creating Opportunity in a Changing World Diversifying our Economy, Educating our People - 2008 State of the State address

LANSING - In her sixth State of the State address, Governor Jennifer M. Granholm today said that despite persistent economic challenges, Michigan's citizens and leaders will be relentless in their efforts to transform this state into one of the best places in the country to live, learn, and earn.

"Our challenge is to give our people the tools they need to realize those hopes and come out on top in this new era," Granholm told a joint session of the Legislature.  "In these tough times, government cannot be all things to all people.  We have to focus on four things - a job for every worker, affordable health care for every family, safe places to live and work for all of us, and quality education for our citizens, kids and adults."

Two touchstone initiatives the governor announced during her address will help bring jobs and investment to Michigan:

Invest Michigan! - An innovative new investment fund that will make capital available to businesses that agree to grow new jobs in Michigan.  The governor says $300 million in state pension funds will be committed over the next three years to open the fund and is seeking contributions from other institutional investors to increase it.  Invest Michigan! will use less than one percent of the state's pension fund through a professional investment manager making prudent investments that provide competitive returns.  A business advisory board headed by top Michigan business officials will offer mentoring to businesses that benefit from the fund.

The Michigan Job Creation Incentive - A substantial Michigan Business Tax cut for any high-growth sector business that creates new jobs in Michigan.  New businesses in high-growth sectors will pay no taxes in the first year under the governor's proposal; existing cutting-edge businesses will get a tax credit on their Michigan Business Tax.  The state will take advantage of the recent cut in interest rates to refinance some state bonds to pay for this innovative plan.

The governor also highlighted major new investment in alternative energy, encouraging businesses to invest in Michigan by creating - in conjunction with the Legislature - ambitious goals for producing 10 percent of the state's electrical energy from renewable sources by the year 2015, and a full 25 percent by the year 2025.

"There's no question these (alternative energy) jobs are coming to our nation.  The only question is, where?" Granholm said.  "I say we will win these new jobs for Michigan and replace lost manufacturing jobs with a whole new, growing sector."

As part of her robust alternative energy platform, Governor Granholm also announced the creation of four Centers of Excellence around the state to bring alternative energy companies and Michigan universities together to create new products and jobs, and tax incentives for "anchor" companies in the alternative energy sector that encourage suppliers to relocate to Michigan.

To advance her top priorities, the governor also called for:

• Establishing a 21st Century Schools Fund, a $300 million investment to help Michigan school districts replace large, impersonal high schools that have low academic achievement and high drop out rates, with small high schools that use strong personal relationships, consistent discipline, and real-world relevance to help at-risk students achieve high academic goals that prepare them for college and workplace success. 
• Fighting for the Michigan First Health Care Plan, a proposal to greatly expand health care coverage for thousands of uninsured Michigan citizens that Washington has approved in other states but has been unwilling to give Michigan.  The governor also pledged to fight for additional funding for the Michigan Nursing Corps to expand our nursing programs around the state to train more nurses to fill vacancies that exist today.
• Protecting citizens and their pocketbook in a changing economy, preventing foreclosures by negotiating with leading mortgage companies to freeze increases in adjustable rates for up to five years, and creating - at the state level - an insurance advocate who will work to fight for consumers and make sure that rates are fair and affordable.
• Keeping neighborhoods safer by adding 100 new Michigan State Police troopers to the roads and partnering with local law enforcement in fugitive felon sweeps that have already put more than 5,000 sexual predators and dangerous fugitives behind bars.
• Fostering growth in our cities by paving the way for new economic development and jobs by tearing down more than 1,500 buildings by the end of 2008.
• Retraining workers displaced by Michigan's challenged economy by giving workers access to a college education and other training that prepares them for specific, high-demand jobs - coupled with a one-time offer of free tuition in areas of need to the first 100,000 workers that sign up.

"We have laid the right foundation to emerge from this period of economic restructuring as a more prosperous state.  Let's be frank: we didn't get into this overnight, we aren't going to get out of it overnight," she said.  "So let's roll up our sleeves and continue building.  Let's tune out the partisan voices in order to work side-by-side to diversify our economy and draft the blueprint that makes Michigan a leader in alternative energy jobs."