December 22, 2009
December 22, 2009
LANSING - Governor Jennifer M. Granholm today said 2009 was a watershed year for the state of Michigan, saying that the "perfect storm" of the financial crisis and global recession left the state with no choice but to diversify its economy and increase educational attainment.
"There's no question that 2009 was a critical year for our state," the governor said during her traditional year-end discussion with reporters. "It was a year in which we had some of the toughest challenges we've faced, from the General Motors (GM) and Chrysler bankruptcies, to state revenues falling to a 45-year low when adjusted for inflation. Those challenges were painful, but they underscored that we have the right plan to give citizens new opportunities for a secure way of life."
Granholm pointed to a number of positive developments that validate the state's efforts to diversify Michigan's economy in the sectors of advanced manufacturing, clean energy, defense and homeland security, life sciences, film, and tourism.
"An emerging advanced-battery industry in Michigan; a growing solar-energy industry, particularly in the Saginaw Valley; investments in electric vehicles by GM, Ford and Chrysler; a burgeoning film industry; and enrollment topping 105,000 in the state's No Worker Left Behind job-training program are all signs that we are building a new Michigan."
Granholm emphasized the crucial assistance the Obama administration provided to Michigan in 2009.
"We're grateful for a partner in the White House that has helped us weather this economic storm and move the state forward," Granholm said. "From the GM and Chrysler rescue to the Recovery Act, the Obama administration has provided a lifeline for Michigan during these tough times."
The governor added that Recovery Act dollars have enabled Michigan to retain or create thousands of jobs and also have boosted education, job-training, health-care, public safety, road construction, and unemployment insurance.
Granholm highlighted key successes in 2009, including:
Diversifying Michigan's economy and creating jobs
Governor Granholm signed legislation in January to create state advanced-battery tax credits that were awarded to four companies in the spring. In August, Michigan won more U.S. Department of Energy grants than all other states combined. Michigan is well on its way to becoming the advanced-battery capital of the world. Battery investments in Michigan total $3.4 billion and will create nearly 10,000 new direct jobs.
Governor Granholm signed into law the state's first photovoltaic tax credit in October, raising total solar energy manufacturing investment over the last five years to more than $3.5 billion. The Saginaw Valley area is rapidly becoming a hub for solar manufacturing, with Suniva and GlobalWatt announcing they'll be joining Hemlock Semiconductor in the area. Another solar manufacturing company, Clairvoyant, also announced it is coming to Michigan this year and will help redevelop Ford's former Wixom Assembly plant into a renewable energy park.
Michigan continued to make strides as a center for advanced manufacturing with the following investment announcements: $700 million by GM to build the Chevrolet Volt in Michigan, $550 million by Ford to build its new electric vehicle at its Wayne Assembly plant, and $179 million by Chrysler to build its new fully integrated robotized engine in Dundee. In addition, General Electric has selected Michigan for its new advanced technology and training center in Wayne County's Van Buren Township.
Michigan's 2009 defense contracts totaling more than $645 million have more than doubled since 2007. Employment in the defense sector, now at almost 13,000, also has doubled since 2007. In September, defense contractor BAE Systems announced it is building a new engineering and technology center in Sterling Heights.
The second year of Michigan's expanded film production incentives brought 45 new film and video productions to the state, compared to three in 2007. Three new studio developments representing more than $300 million in investments are projected to create nearly 6,000 permanent full-time jobs.
Michigan is one of the fastest growing life-sciences states, ranking second in the nation for overall industrial research with more than 125 new companies and more than 540 life- sciences companies overall.
More than 163,000 jobs were created or retained in 2009 through the work of the Michigan Economic Development Corporation and the Michigan Economic Growth Authority, representing an investment of more than $11 billion. They include 7,553 in advanced manufacturing; 20,272 in renewable energy; 4,564 in homeland security/defense; 25,681 in life sciences; and 4,158 in motion picture and video production.
The governor continued her "go anywhere, do anything" overseas trade investment missions in 2009, traveling to Germany, Belgium and Japan. To date, the governor's nine investment missions have resulted in 46 companies announcing more than $1 billion in new investment and more than 11,000 jobs created or retained.
Governor Granholm hosted Michigan's first green jobs conference in Lansing which drew a capacity crowd of 1,500 business, labor, and education leaders who met intensively in sessions about all manner of green job creation issues and heard from Secretary of Labor Hilda Solis and other luminaries.
Released Michigan's first green jobs report, which showed that we have 109,000 green jobs in Michigan, with green jobs comprising 3 percent of the private sector. From 2005-2008, 358 green firms created 2,500 new jobs, an employment growth rate of 7.7 percent Of those 2,500 new jobs created by 358 firms, 600 of the jobs were created by new companies.
Launched the Green Mobility Academy, which is led by Wayne State University and Michigan Tech, who are already training 200 unemployed and currently employed engineers how to design and work on hybrid and full electric vehicles and the Energy Conservation Apprenticeship Readiness program in partnership with construction industry union apprenticeship directors to train hundreds of workers for energy efficiency and renewable energy jobs.
In May, the governor announced the Supplier Diversification Fund, a multi-faceted initiative designed to help Michigan manufacturers and auto suppliers diversify into new emerging sectors such as alternative energy, homeland security/defense, medical instruments, and aerospace.
The online Michigan Business One Stop center offers more services and transaction capability to businesses than any other state. Licenses, permits and registrations are just a click away, no longer housed in multiple sites in various departments.
Michigan's first-ever national tourism advertising campaign was launched in 2009. The Pure Michigan commercials were seen by an estimated 60 million Americans, and Forbes magazine in July named Pure Michigan one of the 10 best tourism promotion campaigns ever.
A Neighborhood Food Movers pilot project was started in Detroit to support entrepreneurship and improve access to fresh produce for city residents. Vendors sell reasonably priced fresh fruits and vegetables out of trucks in designated urban neighborhoods.
Governor Granholm initiated the Buy Michigan First program to encourage Michigan businesses, including under-represented vendor groups, to register as vendors and bid on more than 1,100 contracts worth over $23 billion. The goal is to increase the number of Michigan businesses bidding on contracts, create jobs and reduce the cost of government.
Providing education and job-training for 21st century jobs
In January, the governor appointed Robert C. Bobb as emergency financial manager for the Detroit Public Schools for one year, effective March 2. In October, the governor announced Bobb will stay a second year at DPS.
In a little more than two years, 105,634 people have enrolled for training through the state's No Worker Left Behind job-training program, surpassing the original 100,000 goal 10 months early.
Legislation reforming Michigan's education system and enabling the state to compete in the federal government's Race to the Top competition passed in December.
Across Michigan, 10 communities have been designated Promise Zones and are working to guarantee that each high school graduate who lives in and attends high school will be able to earn a college degree.
In April, the governor announced the creation of the Michigan College Access Network. MCAN will promote postsecondary education by supporting local, community-based college access programs throughout the state.
Protecting families while transforming Michigan's economy and government
The governor signed legislation in November and December protecting customers of municipal utilities from shutoffs.
Legislation that helps Michigan homeowners stave off foreclosure by providing an extra 90 days for them to work with lenders on modifying their mortgage loans was signed into law by the governor in May.
To handle the surge in unemployment claims, the Unemployment Insurance Agency added 400 new employees and increased its phone and Web capabilities.
In August, the state launched Helping Hand, a streamlined state Web site to help the unemployed and others enduring economic hardship to easily find programs and services that may assist them. People can apply for food assistance and unemployment benefits online through the Helping Hand site.
Governor Granholm signed into law a smoking ban prohibiting smoking in Michigan bars, restaurants and most other workplaces effective May 1, 2010.
In response to food-borne illness outbreaks and contamination events, the Department of Agriculture formed a rapid-response team to expand its early detection and food emergency response capabilities.
The SAFE Act enhances consumer protection and reduces fraud in the mortgage industry by establishing minimum standards for the licensing and registration of mortgage loan originators.
The governor and lieutenant governor urged the Michigan attorney general to pursue every legal means to prevent Asian carp from entering the Great Lakes and jeopardizing Michigan's $4.5 billion sport and commercial fishery.
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