Gov. Granholm Emphasizes Jobs in State of the State Address
Governor Jennifer Granholm hit hard upon the theme of bringing jobs back to Michigan in her 53-minute State of the State Address on Tuesday night, using the word “jobs” 54 times. Her address was laced with remarks about taking a bipartisan approach to solve the state’s problems, a striking contrast to the extremely bitter, partisan battles that marked 2007 and led to a brief shutdown of state government. She even mentioned Republican lawmakers by name as she thanked legislators of both parties for their work on key issues.
In recent weeks the governor has stressed that she will not raise taxes or fees in 2008. Her speech reiterated that point, but she also spoke of investing heavily in the state’s future, in the form of $2 billion in new programs—apparently paid for by bonding, securitization and refinancing.
One of the biggest themes of the night was alternative energy and putting Michigan in the forefront of this burgeoning new industry. The governor said the two major utility companies in the state, Detroit Edison and Consumers Energy, are prepared to invest nearly $6 billion on alternative energy technology, creating 17,000 jobs. But she did not say what the utilities need from the state in order to make the investment. Unfortunately for retail businesses, it appears that Granholm may be offering them a return to their monopoly status, thereby eliminating electric choice.
Other initiatives outlined in the speech include:
A plan to spend $300 million to create up to 100 small high schools in areas that are underperforming;
Raising the dropout age from 16 to 18;
Creating a new tax credit for businesses in growth industries that add jobs in Michigan;
Reforming the mortgage industry;
Expanding tourism funding; and
Offering tax incentives for filmmakers to work in Michigan.
The Republican response was mixed, with some expressing hope that progress could be made in 2008. Others wondered if the governor is only spending tomorrow’s money on today’s problems. Some even went so far as to claim that the governor stole the GOP’s playbook and was copying Republican ideas. While the speech focused on working together, it remains to be seen how long this conciliatory approach will last once her budget is unveiled next month.
The complete, 12-page transcript of her address is available at:
http://michigan.gov/gov/0,1607,7-168--184537--,00.html
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