Michigan’s Challenge, Michigan’s Opportunity. and the Future of Local Governments. Gov. Jennifer M. Granholm. Michigan Manufacturing Employment. Global Shift in Manufacturing Jobs Causes Loss of More Than 1 in 4 Manufacturing Jobs Since Mid 1999. Jul 1999 906,200. Jan 1992 780,300.
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and the Future of Local Governments
Gov. Jennifer M. Granholm
Global Shift in Manufacturing Jobs Causes Loss of More Than 1 in 4Manufacturing Jobs Since Mid 1999
Source: U.S. Department of Labor, Bureau of Labor Statistics.
Source: Economic and Revenue Forecasting Division, Michigan Department of Treasury, 5/30/07
Totals exclude transfers and are adjusted to 2007 dollars using Gov’t Price Deflator.
Adjusted for inflation.
SBT rate cut (Begun in 1999) ($419.0)
Other SBT cuts ($206.5)
Income Tax Rate Cut (Begun in 2000) ($901.4)
Other tax changes ($207.1)
Subtotal State Cuts ($1,734.0)
Federal Estate Tax Repeal ($200.0)
TOTAL State and Federal Tax Cuts ($1,934.0)
Even Before Latest Round, Already Made Significant Cuts Including…
Hon. William G. Milliken
Dan L. DeGrow, Superintendent of St. Clair County RESA, frmr Republican State Senate Majority Leader
Don Gilmer, Kzoo County Administrator, frmr Budget Director under Gov. Engler
Paul Hillegonds, Senior VP of DTE Energy, frmr Speaker of Republican-led House of Representatives
Sr. Douglas B. Roberts, frmr State Treasurer under Gov. Engler
John J. H. Schwarz, frmr Republican U.S. CongressmanConvened A Bipartisan Panel of Experts
Emergency Financial Advisory Panel
“….Michigan must develop a fiscal plan that includes a combination of revenue increases, spending cuts and reform of how public services are delivered”
- Emergency Financial Advisory Panel Report
Put Michigan’s Fiscal House In Order Now, Prevent Massive Cuts to Health Care, Education, Public Safety
To Save Taxpayer Money in the Long Term, Keeping Michigan Competitive and Keeping Future Spending in Line With Revenue
Allows school districts to shop for competitive and quality health insurance plans.
Tightens vesting requirements, eliminates loopholes, increases contributions to pension for new teachers
Creates incentives for healthy behavior for Medicaid recipients
Requires a common calendar for school districts within each intermediate school district.
Eliminates “double dipping”
More to do …
Michigan’s State and Local Tax Burden Ranked 32nd(as a percent of personal income)
Michigan is now ranked 27th overall in the number of services taxed.
# SERVICES TAXED
Michigan’s new income tax rate of 4.35% is still the fourth lowest among states
“The typical response, which is to retrench and focus just on efficiency and cost-cutting by eliminating jobs, reducing programming, streamlining operations might not be really the best approach once business picks back up again. Across industries, companies that have continued to pursue innovation during tough times often achieve a significant competitive advantage, and position themselves far more effectively for growth.”
– Steve Ballmer, CEO of Microsoft