Last night in Lansing, Michigan Governor Jennifer Granholm delivered the annual “State of the State” address. As is the case with the annual address, as well as other such as Grand Rapids’ “State of the City” and the President’s “State of the Union,” the address was heavy on lofty rhetoric. Granholm described the current time as being one of “unprecedented change” that begs the question–”how will history judge us?”
Granholm began her address by explaining that there are significant economic challenges facing Michigan and that these challenges made residents of the state angry. These residents are angry–justifiably so–according to Granholm over the loss of jobs and the nationwide economic slowdown. Granholm said that rather than respond to this anger with a forward-looking agenda, Michigan’s legislature has instead engaged in partisan sniping. This caused the legislature to ignore what Granholm believes are four key priorities:
* A job for every worker.
* Affordable health care for every family.
* Safe places to live and work for all of us.
* Quality education for our citizens – kids and adults.
Granholm argued that when the partisan arguing is minimized, the legislature could make significant progress. To support this point, she highlighted cooperation on removing the Single Business Tax (SBT), the Michigan Promise scholarship, and raising the minimum wage. Similarly, there are many points on which the two parties agree–tourism advertising must increase, the film industry must be promoted, and the Great Lakes must be protected. She expressed a willingness to sign legislation on those issues.
Granholm said, “Our top priority must be jobs.” She briefly highlighted her work–traveling across the country and calling CEOs–before announcing two new initiatives. She announced the Michigan Job Creation Tax Credit that will cut or eliminate taxes for businesses in the top 50 industries in the country that locate in Michigan, as well as the Michigan Invests! Fund that will help give investment capital to businesses to keep them in Michigan. These new programs would be paid for in the budget that she will present to the legislature in February.
She also advocated government reforms. She pledged to cut spending from the Department of Corrections by initiating reforms from other states, although she provided no specifics. Granholm touted contract negotiations with state employees that resulted in $170 million savings–gained through concessions on benefits and healthcare–to press for similar concessions from the legislature. Finally, she said she is working to create a “one stop shop” via the web and a single phone number to help businesses deal with government regulations.
“Alternative Energy” was mentioned numerous times in Granholm’s speech. She sees it as a key area in which Michigan’s economy can grow. According to Granholm, this industry represents an opportunity for significant growth. She said that the state’s wind can be used for power, that water might be able to be used for power at some point in the near future, and that waste from paper mills can be used as a biofuel. Solar energy is also being produced in the state–and to Granholm–the opportunities for growth are virtually unlimited. In order to spur this growth, Granholm said that the state must enact adopt a renewable energy profile–25% renewables by 2025–to attract investment. She further called for the legislature to eliminate the gas tax on ethanol and biodiesel fuel purchases.
Granholm asserted that in order to attract this new industry, Michigan needs to improve its education system. She continues to assert her goal of doubling the number of college graduates in the state, which she says will give Michigan the best-educated workforce in the nation. Granholm urged the legislature to increase the dropout age to 18, institute full-day kindergarten, and give superintendents greater authority to close schools. Additionally, she said that her 21st Century Schools Fund would work to replace large, impersonal schools with smaller school emphasizing “rigor, relevance and relationships.” Along with these goals, she also pledged to increase funding for adult education programs and announced a goal of getting 100,000 displaced workers to sign-up for her No Worker Left Behind program.
To address rising costs to families as part of the economic downtown, Granholm said that she is “negotiating with leading mortgage companies to freeze increases in adjustable mortgage rates for up to five years to protect Michigan families from foreclosure.” She also expressed support for more laws to hold drug companies accountable and to stop price-fixing at gas stations. Finally, she announced that she would create a new government position–insurance advocate–to negotiate affordable insurance rates for Michigan residents.
In the area of healthcare, Granholm said that Michigan residents still need access to low cost healthcare. She expressed frustration that the Bush administration has been unwilling to fund the Michigan First Health Care Plan.
While much of her speech would appeal to nominally left, “progressive,” or Democratic constituents, it was not met without criticism. The Michigan League of Conservation Voters criticized Granholm:
“To use Granholm’s words – we are angry. She missed the mark in ensuring that our natural resources will be protected. She failed to address the needed protections of the Great Lakes and the desperately needed funding for our conservation and environmental programs.”
The group further said that they were disappointed that she failed to call our Dow Chemical for its polluting of the Saginaw Valley. They also expressed frustration that she was willing to work with Senator Birkholz rather pursuing strong Great Lakes protection legislation.
Similarly, outside of the speech, the Michigan Committee Against War and Injustice held a protest criticizing the governor:
“At a time when Michigan continues to lose jobs, when foreclosures here are the highest in the nation, when schools are closing, when hunger and homelessness have not been addressed – the Governor continues to mouth optimism without offering real solutions to the daily suffering of the people.
But Michigan’s constitution and laws require the Governor to use her power to declare a state of emergency for economic as well as natural disasters. Under these laws the Governor can stop foreclosures and evictions, end and reverse utility shut-offs and take other action as needed to ensure the health and safety of the people of Michigan. This has been done before and upheld by the U.S. Supreme Court!
While we are fighting to get Congress to stop all funds to the Iraq war and use that money right here at home, we can and must demand that the Governor stop the economic disaster afflicting our state by using her emergency powers. We must demand that the Governor place a Moratorium on plant closings and lay-offs, school closings, foreclosures and evictions, utility shut-offs and more!”
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