News Room
FOR IMMEDIATE RELEASE:
January 22, 2009
CONTACT: Jim Holcomb
Michigan Chamber of Commerce
517-371-7696 BUSINESS COMMUNITY CALLS ON ELECTED OFFICIALS IN
LANSING TO ENACT BUDGET REFORMS NOW
LANSING, Mich. – Today, leaders of Michigan’s top business
organizations urged Gov. Granholm and legislators to pass long-term, structural
reforms and spending cuts as they prepare to begin work on the 2009 state
budget. In a show of unity, the Detroit Regional Chamber, Michigan Chamber
of Commerce, the Grand Rapids Area Chamber of Commerce and Detroit Renaissance
catalogued more than $1.5 billion in approaches to reform how state government
spends the taxpayers’ money. These budget reforms would make Michigan more
attractive for job creation and investment growth. Reforming the budget will
require elected leaders to focus precious public resources on strategic
investments that matter most to Michigan’s future prosperity.
The Center for Michigan, a think tank dedicated to finding
solutions to Michigan’s enduring economic challenges, joined the business
community’s call for improving the state’s spending practices.
“Michigan needs a comprehensive, long-range plan to put the state on a fiscally
responsible track,” said Philip H. Power, president of The Center for Michigan.
“It’s going to take a lot of courage on the part of our elected officials but
reforms are necessary for a strong economic base and a strategic public sector
in Michigan.”
The business groups provided a catalog of reform
ideas developed in recent years by a wide range of organizations. The list
includes ideas for reforming corrections, Medicaid, schools, and local
government contracting and making it easier for local governments to share
services. The catalog by no means represents all budget reform approaches, nor
does it represent a consensus on an exact budget plan. Such details are the
responsibility of legislators and the governor. Instead, the groups issuing the
list today provide it as a checklist for the tough choices ahead. Altogether,
the list included more than $1.3 billion in possible reform choices and more
than $300 million more in potential savings from reforms suggested by recent
state Auditor General reports.
 to
access a complete inventory of ideas.
“To turn the state’s economy around and successfully compete in a global
marketplace, we need to right size the budget," said Richard E. Blouse, Jr.,
president and CEO of the Detroit Regional Chamber. "Every day that goes by
without reforms means more jobs and investment lost for Michigan.
The business leaders stressed the need for immediate attention to these reforms
and are seeking meetings with Gov. Granholm, Speaker Dillon and Majority Leader
Bishop to press their case for changing how Michigan budgets its resources. They
stated the Legislature missed an opportunity last year to put the state on a
path to economic recovery and the same mistake must not be made this budget
cycle. That is why the group intends to track, through The Center for Michigan,
the progress of budget reform in Lansing during the current budget process.
“We are offering the Governor and legislators a road map to
fix Michigan’s deteriorating budget situation,” said Richard Studley, President
and CEO of the Michigan Chamber of Commerce. “We hope they understand the
urgency of the situation and seriously consider the reform ideas offered as a
means to restore some sanity to our budget process and stabilize the state’s
fiscal condition well into the future.”
Each organization has
independently offered budget reform ideas to Gov. Granholm and legislative
leaders during the past year. The groups came together today, not to endorse one
reform idea over another, but to underscore the critical need to put Michigan’s
fiscal house in order now.
“This collaborative effort of the business community stretches
from east to west and north to south of Michigan,” said Jeanne Englehart,
president and CEO of the Grand Rapids Area Chamber of Commerce. “Each
organization’s advocacy goals around budget reform are in sync and we intend to
use the combined force of our members to let Lansing know reforming the budget
is our top priority for the year.
The business leaders also rejected the idea of using a federal
stimulus package as a means to patch holes in the state budget this year. They
indicated this would be irresponsible and only put off the inevitable tough
choices that need to be made to permanently solve the budget problems.
“There is not one magic solution
for Michigan’s persistent budget deficits,” said Doug Rothwell, president of
Detroit Renaissance. “It’s going to take a combination of reforms to get the
state’s finances back in order. Only then will our state be able to grow jobs
and investment – but our elected leaders must put reforms in motion starting
today.”
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FOR IMMEDIATE RELEASE:
CONTACT: Wendy Block
Michigan Chamber of Commerce
517-371-7678 GRANHOLM ADMINISTRATION FAILS TO MEET NEEDS OF UNEMPLOYED WORKERS AND EMPLOYERS, SAYS MICHIGAN CHAMBER OF COMMERCE
LANSING, Mich. – The Michigan Chamber of Commerce today called upon the State Legislature to
investigate mismanagement and misplaced priorities at the Department of Energy,
Labor & Economic Growth (DELEG) and the state’s Unemployment Insurance Agency.
The recent logjam of calls into the agency is resulting in many employees
failing to receive checks or assistance with filing a new claim.
“With unemployment steadily climbing, the Unemployment Insurance Agency and
Governor’s office should have seen this problem and taken appropriate steps to
be prepared,” said Wendy Block, Director of Health Policy and Human Resources
for the Michigan Chamber. “Instead, DELEG, which houses the Unemployment
Insurance Agency, chose to turn its back on both employers and employees by
focusing on other non-priority issues.
“DELEG continued to devote valuable resources to activities like renaming the
department and developing a job killing, mandatory ergonomics rule that will
further damage Michigan’s economy if implemented,” said Block. “Clearly,
our state government’s priorities are misplaced.”
“Michigan’s unemployment system is 100 percent employer financed, meaning
payroll taxes paid by Michigan employers support both the cost of administering
the Unemployment Insurance Agency and the payment of benefits to eligible
unemployed workers,” said Jim Holcomb, Vice President of Business Advocacy and
Associate General Counsel for the Michigan Chamber. “The failure of state
government to properly foresee and address this issue cannot be blamed on the
state’s budget woes.”
“This problem lies solely at the feet of the Granholm Administration,” Holcomb
added.
“Although the department has promised that help is on the way, they admit it
will be next month before additional staff is devoted to addressing the needs of
the unemployed,” noted Block. “These citizens cannot afford to be put on hold
until next month.”
“The Michigan Chamber urges the Legislature to promptly begin work on
investigating the failings of the department and to find a quick solution to
help Michigan’s unemployed receive the assistance they need,” Block concluded.
The Michigan Chamber of Commerce is celebrating its 50th year as a statewide
business organization, now representing more than 7,100 employers, trade
associations and local chambers of commerce. The Michigan Chamber was
established in 1959 to be an advocate for Michigan’s job providers in the
legislative, political and legal process. It is only one of four state chambers
of commerce in the nation accredited by the U.S. Chamber of Commerce.
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