|
| |
|
| |
|
|
|
June 15, 2005Granholm's plan is bad businessBy Carl H. VandomelenGovernor Granholm has called for $2 billion in bonds to promote growth of high-tech industries in Michigan and restructuring business taxes to help manufacturers. At the heart of this proposal is job creation. The governor's proposal places the government squarely in the role of a venture capitalist - speculating on which businesses will succeed and add jobs. Rarely has government been successful in this role and the more likely outcome is $2 billion in debt to be repaid by Michigan taxpayers long after the governor has left office. More importantly, why isn't the state attracting new businesses and jobs? Here are a few key reasons that should be addressed by Granholm: - State business tax climate - According to the Tax Foundation, Michigan ranks 36th in how state tax law affects business performance - behind Ohio (29th), Indiana (12th) and Illinois (23rd). Michigan is not competitive. Michigan needs to reduce business taxes to effectively compete for new business and additional jobs. - Skilled workforce - The Census Bureau published a ranking of educational attainment by state and the picture is grim - Michigan ranks 39th in the country in percent of population with a four-year college degree (23.3 percent). This compares to Ohio - 26th, Indiana - 44th and Illinois - 16th. The attractiveness of Michigan as a state in which to locate a high technology business is limited by our lack of a skilled labor force. What's needed is a fundamental shift in our public education system. A recent study by the National Center for Education Statistics indicates that just 71.5 percent of Michigan high school students receive a diploma - 26th in the nation. And those that do graduate are less than adequately prepared to enter today's knowledge-based economy. The problem is the requirements for high school graduation are less than the minimum necessary for admission into many of the state's colleges - why? - Business regulation -Michigan is well known for having difficult regulations, particularly when it comes to environmental requirements. An example is DEQ environmental regulations that are more stringent than federal standards - adopted by directive without legislative approval (an ongoing frustration for business). Michigan's current regulatory policies have helped precipitate the lack of new business development and loss of jobs. By addressing some of the key barriers to business development the state will begin to create a climate that will attract high-tech, knowledge-based companies and retain our existing businesses - which is the goal of the governor. These companies have more than adequate access to capital (this is the role of Wall Street) hence the $2 billion bond offering is unnecessary. State government has never created jobs - it's not its role and never will be. It is the role of state government to create a positive environment conducive to the needs of business - moderate taxation, skilled workers and reasonable regulations. If these three key areas are addressed, Michigan will become the thriving diversified economy that will be the envy of the country. About the author Carl H. VanDomelen is a member of Boyne City's Main Street Economic Restructuring Committee. He has an MBA from Michigan State University and spent more than 25 years in strategic planning and marketing. About the forum The forum is a periodic column of opinion written by Record-Eagle readers in their areas of interest or expertise. Submissions of 500 words or less may be made. Please include biographical information and a photo.
|
|
