The Detroit Renaissance is pleased to announce the release of the results of a statewide survey amongst Michigan voters. The survey, conducted by Glengariff Group, Inc. is also the subject of a special podcast with Dave Brandon, CEO of Domino’s Pizza and Chair of the Detroit Renaissance, and David Bing, CEO of the Bing Group and a member of the Detroit Renaissance Executive Committee. Host and President of Detroit Renaissance Doug Rothwell discusses the findings in the survey, including voters’ wants for major government reform.

The public opinion poll found that over 80% of Michigan voters, regardless of demographic differences, believe the state is on the wrong track. 87% of voters feel that Michigan’s political leaders are doing a fair or poor job on budgeting and spending. These statistics and others are discussed during the podcast conversation, as well as several proposed ideas for reform. The top six reform ideas include:

•    Find other means of punishment for non violent offenders other than prison
•    Increase premiums for state employee health care
•    Change the retirement system for new teachers
•    Increase deductions/co-pays for employee health care
•    Impose small co-pays for Medicaid
•    Release some non violent offenders before parole

Doug Rothwell had this to say: “These results confirm our assertions that we need a greater sense of urgency to address structural reforms, not just incremental budget cuts and one-time fixes. Only meaningful structural reforms will give businesses a greater sense of confidence in Michigan’s future as a good place to do business.”

You can download and read the full opinion poll results report here.

You can also listen and download the podcast here, or subscribe to our RSS feed.

The latest Forbes ranking of the "Best States for Business" lower Michigan from 46th worst last year to 47th worst this year. We ranked #39 on business costs, #44 in labor climate, #46 in economic climate and a terrible #49 in growth prospects. We only scored well on regulatory environment (#4), but this ranking factors in a state's incentive offerings (of which Michigan has plenty) and tort climate (which was dramatically improved in the 1990's). The only states that scored worse on the overall rankings were Alaska, Louisiana and West Virginia.

But the pain we are experiencing today might help us in a few years. The historic union agreements with the auto companies are going to make our cost structure more competitive. Our companies are getting leaner and more competitive to create jobs a few years down the road. Our cost of living is getting even more affordable. We're increasing our number of college graduates and increasing our level of venture capital.

Yet the actions that would likely have the biggest impact still aren't getting enough attention: lowering the cost of doing business through state tax, structural and energy reforms. Until these are dealt with, we should fear what our ranking will look like in 2009.

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Tony Earley, Chairman and CEO of DTE Energy and Board Member of the Detroit Renaissance .

Host Doug Rothwell and Earley discuss how regulation of energy resources will prepare us for a successful future.

"Energy is crucial to a state like Michigan. We are very energy intensive," says Tony, "The energy users here in the state are large users of both electricity and natural gas and therefore we have to have a very stable, reliable infrastructure for the future."

Tony takes his expertise from his years working closely in the energy industry, and shares his experience in order to inform and inspire the people of Detroit and Southeast Michigan.

Listen to the podcast here, or subscribe via your RSS reader, or via iTunes.

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Florine Mark, President and CEO of the WW Group.

Host Doug Rothwell and Florine discuss how being individual ambassadors for the city of Detroit could empower Detroit.

“We’ve got the greatest city and state, I feel, in the union," Florine says.  "We have got more wonderful things, yet I hear people saying ‘Oh, I don’t want to go downtown.’… We’ve got a fabulous downtown and it’s getting better and better and better.” 

Florine Mark challenges people to get involved in Detroit, to learn about what is being done to revitalize it, and to learn to see Detroit the way she sees it herself.

Listen to the podcast here, or subscribe via your RSS reader, or via iTunes.

Just wondering...

Michigan has the highest unemployment rate in the nation, the state budget is projected to have at least a $500 million shortfall next year, and our state leaders find the time to enact legislation to divest state investments in companies that do business in Sudan?

Let's be clear, no one is supporting Sudan in any way, shape or form. But, how is it that our state leaders find the time to dabble in international policy rather than their official role as managers of the state's business?

As a good friend of mine put it, "Michigan is burning and this is what our elected leaders are focusing on....says it all..."

- Doug

Tom Watkins makes a great case in the Detroit News for state government reform. Read his column which reflects much of our thinking at Detroit Renaissance that state government needs to adopt a strategic principles and actions to achieve a sustainable fiscal structure. One of those principles is to enact meaningful structural reforms to minimize the need for new sources of revenue such as bringing state employee health care benefits in line with the private sector and bringing local government and public school health care benefits in line with those of state employees. The private sector is making drastic adjustments to its healthcare plans.

As Watkins government should follow their lead by making "...the tough and necessary structural changes in prisons, consolidate school districts, and local units of governments, and address the runaway state employee health and pension benefits that were once modeled after the auto industry and that are no longer sustainable."

Read more about our recommendations to immediately improve the health of our state's economy and improve our overall economic competitiveness on
our website at: http://www.detroitrenaissance.com/agenda/improving-competitiveness

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Gail Torreano, President of AT&T of Michigan.

Torreano and host Doug Rothwell discuss how the onset of telecommunication technologies has created a convergence of products and therefore competition that was not always present. This competition and regulation has the potential to inspire growth in the region and beyond.

“The technologies available in the telecommunications industry have surpassed any notion of what we considered possible several years ago,” says Rothwell, “Gail explains just how far we have come, and how we can be prepared for further regulations and adapt technologies as they become available.”

Torreano notes: “We have to always continue to work to stay ahead of the curve, and it is critical that we understand that as a state.”

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

Over the past several months, Detroit Renaissance has been analyzing why some economies grow and others don't to better understand how we move our region forward. It's an on-going process that will lead to the development of "Road to Renaissance 2.0" - our second generation regional economic transformation strategy - in the next year.

But suffice it to say, the findings we're reaching aren't rocket science. Here's a few nuggets to get started:

• According to CEO Magazine, 9 of the 10 best states for business are in the sun belt and 7 of the 10 worst states (yes, Michigan is one of them) are in the "rust belt."

• Not coincidentally, according to the Miliken Institute, 46 of the top 50 high growth cities are in the sun belt and 48 of the 50 worst performing cities (yes, Detroit is one of them) are in the "rust belt."

To add more fuel to the fire, consider this:

• Accrding to Forbes Magazine, the top 10 states for private sector job growth over the past decade were ranked, on average, as having business cost environments that were more than twice as good than the ten worst performing states (yes, Michigan was among the bottom ten). 

• Unfortunately, Michigan's relative state & local tax burden, according to the Tax Foundation, has actually increased since 1970.  In addition, Michigan ranked 40th and 41st respectively in the Forbes and Beacon Hill rankings on business costs and competitiveness.

Simply put, unless we fix the economic competitiveness of our state, we aren't going to see the pay-off we should from many of the innovative economic development initiatives underway throughout the state.

 - Doug 

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Randy Agley, Chairman of the Talon Group.

Agely speaks with host Doug Rothwell about how Detroit and Southeast Michigan must undergo the necessary steps in order to become a more attractive place for entrepreneurs. He notes that this will also take some sacrifice and good leadership to happen.

“We’ve relied, in the past, on the auto industry to generate growth in Michigan, but that isn’t where the future lies for us,” says Agley, “There are plenty of entrepreneurs sprouting up, but we have to change the generic factors in Michigan to make it more appealing. We need to establish a tax environment that is competitive, or more competitive than other states, and we don’t have that yet.”

Agley also shares his take on why education is so important, especially to keep students in the area productive and engaged.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

The Road to Renaissance Quarterly Progress Report for July 2008 is now available for download.

The report details completed tasks and next steps for each priority of the Road to Renaissance plan.

To download the report, click here.