Detroit Renaissance steps up with its agenda (Detroit Free Press, 1/23/08)
For three decades, the Detroit Renaissance group of chief executives of the region's largest companies has wielded influence in a patrician, behind-the-scenes manner.
No longer.
Our corporate honchos have become so impatient with Michigan's economic stagnation and so frustrated with the lack of a coherent policy response from politicians in Lansing that they're stepping forward with an assertive agenda of their own to improve the business climate.
"We spend too much time trying to be average," Doug Rothwell, president and CEO of Detroit Renaissance, said in an interview Tuesday. "But average isn't good enough. We hear people say we're an average state in terms of tax burden, but the total costs for business are quite high," he added, citing utility costs, labor costs and the fact that Michigan lacks some intrinsic advantages of other states where population is growing.
Rothwell met recently with Republican and Democratic legislative leaders in Lansing, plus one of Gov. Jennifer Granholm's deputies, to give them a preview of several recommendations that Detroit Renaissance is going public with now:
- State budget growth should be flat and no programs should be added unless corresponding budget cuts are made or revenues rise as a result of real economic growth.
- Spending for Michigan prisons should be reduced to the levels of other Great Lakes states.
- Pensions and health care benefits of local government and public school employees should be brought into line with those of other state employees.
- State leaders should adopt a more comprehensive system for forecasting tax revenue and tracking changes.
- More focus should be directed at retaining and growing existing Michigan businesses, in addition to recruiting new ones.
Member companies of Detroit Renaissance have put $150 million over the past 10 years toward a variety of projects in the Detroit region, and pledged $40 million for the current Road to Renaissance effort to help pay for economic development initiatives including an aerotropolis to boost the region's air cargo and logistics business and a "mobility innovation center" to help improve auto suppliers' competitiveness.
"This is a critical year to show progress. Otherwise, it will be hard to keep the enthusiasm and investment level where it's been," said David Brandon, CEO of Domino's Pizza and newly elected chairman of the Detroit Renaissance board of directors.
Rothwell and Brandon said they fully expect Detroit Renaissance to become more active on the political scene in Lansing. The focus will be primarily on making Michigan a healthier place to do business.
They say they don't intend to lobby on as many specific issues as the Detroit Regional Chamber, or to get deeply involved in electing or ousting specific politicians.
But if I was a Lansing politico intent on waffling my way through another year of fiscal irresponsibility, I'd be watching my back.
Contact TOM WALSH at 313-223-4430 or twalsh@freepress.com.
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