06/02/2006

Push is on for more investment

Policy and business leaders say roads, education, recruitment need state help

MACKINAC ISLAND (AP) — After years of cuts caused by Michigan's economic slump, the consensus among business and policy leaders attending the Mackinac Policy Conference seems to be moving toward an awareness that more needs to be invested in education, roads and job training.

"I think the pendulum is swinging back," said Craig Ruff of Public Sector Consultants, a Lansing think tank. "The disinvestment in colleges and universities has really set us back."

Ruff was among those at the Detroit Regional Chamber's conference who said they are beginning to see glimmers of recognition that Michigan must spend more on roads, education and business recruitment if it wants to rebuild an economy harmed by the global restructuring of the auto industry.

"It's a different tone up here," said Chuck Perricone, the Republican speaker of the state House in 1999-2000. "People are tired of being down."

The call for more investment has been percolating in think tanks, and policy groups concerned that Michigan must drastically change if it wants to compete with the high-tech sectors in states such as California, Massachusetts and North Carolina.

They want to see more investment in higher education to encourage research that can be spun off into new businesses, help universities and community colleges keep tuition increases low and encourage more Michigan residents to get the education and training they need to get the high-skills jobs now part of the new economy.

Roads and bridges also need more investment, some say. In a survey released at the conference by the Detroit Regional Chamber and John Bailey & Associates, nearly 51 percent of business owners said they would support higher taxes for local improvements to roads and sewers.

Perricone said he's also hearing from some that more needs to be spent on business recruitment.

Perricone said questions remain over where the money for the new investment is going to come from, and where exactly it should go. More than $3 billion has been cut from state budgets in the past three years, and the state still is dealing with a structural deficit.

See related stories:

• Money for jobs may be headed up north - June 2, 2006
• Granholm, DeVos campaign at Mackinac Island - June 1, 2006

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