Granholm Says State is Creating Opportunity in a Changing World by Diversifying Economy, Educating People

March 5, 2008

LANSING - Governor Jennifer M. Granholm today said that despite tough economic times across the state, Michigan's citizens and leaders will be relentless in their efforts to transform this state into one of the best places in the nation to live, learn, and earn.  Granholm made her remarks in a speech before the Economic Club of Traverse City.

"We are focused on creating opportunity for our citizens by getting them the tools they need to realize their hopes and come out on top in this new era," Granholm said.  "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."

The governor touched on a number of initiatives she announced during her recent State of the State address, which will help bring jobs and investment to Michigan.  Among them is a 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.

The governor also outlined her efforts to ensure that citizens have the education and training they need for the 21st century jobs she's working to attract.

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.

As part of her robust alternative energy platform, Governor Granholm has proposed creating four Centers of Excellence 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.

"There's no question these alternative energy jobs are coming to our nation.  The only question is, where?" Granholm said.  "We will win these new jobs for Michigan and replace lost manufacturing jobs with a whole new, growing sector."
Finally, the governor said that whether new jobs are in alternative energy, the life sciences, or advanced manufacturing, we must ensure that all students get an education that prepares them for success in college and the workplace.
The governor also highlighted other initiatives that she called for in her recent State of the State address:

• Establishing a 21st Century Schools Fund, providing up to $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. 
• 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.
• 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.

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