We submitted a plan to the state legislature that lays out $800 million in annual savings over 10 years with short and long term action items. We are continuing to push for budget reforms. The Detroit News will be featuring a State Budget Reform scorecard Renaissance develops on their editorial page every few weeks to remind people how much, or little, progress is being made adopting reforms to close the budget deficit. The first scorecard will appear in a few weeks.

The 2008 Detroit Regional Business Attraction and Expansion Successes Report contains documented information submitted by the Economic Development Coalition of Southeast Michigan (EDCSEM). The coalition is comprised of 13 economic development agencies in the region and works to promote regional solutions that accelerate economic growth. During the period of January 1, 2008 through December 31, 2008, EDCSEM member agencies engaged in a total of 183 new projects representing over $1 billion in investment to the region. The total number of jobs created and retained in 2008 was projected to be 19,688 as a result of these investments. In addition, the region's business accelerators provided business development support to nearly 1200 companies. Click here for a copy of the report.

Michigan business groups have joined with others to form a Corrections Coalition to urge Lansing to reduce corrections spending. The Governor and Department of Corrections made some difficult cost reduction decisions to close three prisons and five camps this year.  With the reality of a budget deficit approaching $2 billion, much more must be done to bring the cost of prisons in line with state resources. The Corrections Coalition believes these reductions represent a good start in what should be a much longer and far-reaching program of reforms and cost cuts in the Department of Corrections budget. However, the group submitted a joint letter to Governor Granholm and the Michigan legislature congratulating them on the important step they made toward cutting the corrections budget.

The "letter to the editor" below was submitted to newspapers associated with MLive.com throughout Michigan to clarify work Detroit Renaissance is engaged in to advance state tax reform.

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Dear Editors:

I want to clarify a few points reported in Peter Luke's June 28 column in MLive.com regarding efforts to reform Michigan taxes.

• Data is used showing Michigan has an "average" tax burden.  This data ignores the fact that the total costs of doing business in Michigan, including wages, benefits, utilities, regulatory compliance, etc., is above average and that most states we compete with for jobs have below average costs.

• The Anderson Economic Group is identified as working for Detroit Renaissance and Speaker Andy Dillon and Detroit Renaissance as working with just Speaker Dillon on a plan.  Anderson Economic Group is under contract with Detroit Renaissance to study tax reform options and Detroit Renaissance has been working with the majority and minority leaders of both the House and the Senate on devising a plan.

• The graduated income tax is reported as polling well.  We are the only private sector group that we know of that has polled this idea and can report it does not poll well and is viewed even more negatively the more people understand how it works.

Detroit Renaissance believes the State's first priority should be to enact significant structural budget reforms to get its fiscal house in order before considering tax changes.  But since the cost of doing business in Michigan requires incentives for virtually every new job being attracted to the state, we believe a tax reform plan that reduces business costs in a fiscally responsible way is necessary and can be accomplished.  However, we believe those advocating for a graduated income tax really just want to increase state revenues instead of reforming the way the state spends its money.  This would be the worst possible outcome for the future of Michigan.

Sincerely,

Doug Rothwell, President

Detroit Renaissance

Renaissance Venture Capital Fund
Detroit Renaissance’s “Road to Renaissance” initiative concluded that a critical need for the region was to grow its entrepreneurial capacity, including obtaining additional venture capital in the region.  Detroit Renaissance worked with individuals form Ann Arbor and Oakland County to establish a venture capital fund of funds aimed at investment in Michigan.
The Renaissance Venture Capital Fund (RVCF) has made investment commitments to two Michigan-based venture capital funds, Ann Arbor-based Arboretum Ventures (specializing in investments in healthcare and medical devices) and Kalamazoo-based TGap Ventures (specializing in investments in IT, healthcare and services).  A third investment commitment is in its final stages.  The RVCF has received proposals from three dozen venture capital firms from around the nation that are planning to actively work in Michigan and are seeking investment from the RVCF.
 
NEI Kauffman
New Economy Initiative (NEI) announced an aggressive three-year economic recovery program that will help minority automotive suppliers transition to new industries and rapidly grow entrepreneurship in the region. The program will be located at TechTown, a business incubator established by Wayne State University, Henry Ford Health System, and General Motors. NEI has partnered with the Ewing Marion Kauffman Foundation to provide entrepreneurship counsel and proven programs to help spur entrepreneurial activity. The core pieces of the initiative are the proven Kauffman programs FastTrac(R) and Urban Entrepreneurship Partnership (UEP). It is estimated that 800 individuals will enter the initiative’s Detroit FastTrac(R) program annually, creating 400 new start-ups per year over three years. Approximately 150 minority suppliers will be trained, coached and mentored over three years through the UEP. Read more here.

The Detroit News Hub (formerly the DNews Bureau) launched its web site.  Marge Sorge, the Hub’s Director, has already intercepted and guided many out-of-town journalists doing stories on Detroit and begun to interject a more balanced view of our region.  The web site is set up to be a portal for journalists interested in writing on the region that provides them easy access to data, contacts and newsworthy information with minimal “spin.”  You can check out the site at:  www.thedetroithub.com

One of the critical needs identified by the “Road to Renaissance” initiative was to secure the future talent base in Michigan. The Detroit Regional Chamber launched the Intern in Michigan website, http://www.interninmichigan.com, to keep Michigan’s college grads in Michigan and to connect Michigan’s businesses to young Michigan talent. Intern in Michigan is a statewide, coordinated effort engaging key partners including the Detroit Regional Chamber, West Michigan Strategic Alliance, Presidents Council, State Universities of Michigan, Mid-Michigan Innovation Team, and a grant from Workforce Innovations in Regional Economic Development. Detroit Renaissance plays a support role to this program as well as the chamber’s STEM program.

A quick perspective on the mood and outcomes from this year's Mackinac Policy Conference:
 
The Good:

- Mayor Dave Bing's decorum, class and integrity was in full view
- Mayor Bing and County Executive Ficano's fast, bold and collaborative approach to keeping GM in downtown Detroit
- Speaker Andy Dillon's support for bold tax reform and recognition that getting rid of the MBT surcharge alone won't make Michigan competitive
 
The Bad:

- Regional in-fighting over Cobo Hall, GM's headquarters and the aerotropolis
 
The Ugly:

- The continued lack of political leadership, collaboration and sense of urgency to resolve the state's budget deficit

The region, not just Oakland County, took a hit this week with the passing of Dennis Toffolo, Oakland County's Deputy County Executive for Economic Development.  Dennis was a team player and always tried to look for "win-win" solutions to growing the economy.  A former Renaissance Board Member when he was President of Hudson's Department Stores, Toffolo recognized the importance of regionalism.  He was a tireless advocate for development in Oakland County, but understood that Oakland coundn't be successful without a strong region.  Dennis, you will be missed for your friendship, counsel and tireless belief in Michigan.
 
- Doug

Over the past two weeks, bills have been introduced to redirect Cobo funding to move the Auto Show to Novi, an effort has been launched to relocate GM's headquarters to Warren and a new economic alliance has been formed north of 8 Mile Road.  Coincindental timing?  Maybe, maybe not.
 
But here's the problem with all of it.  Dave Bing just got elected as Detroit's new Mayor which gives us a chance to put the City and several regional initiatives back on track.  Can't we give the new Mayor a few weeks breathing space?