foolmenot.comMy predictions are coming to pass… In my December 10, 2005, editorial entitled; “DEM strategy in Mich. for 2006”, I predicted how Governor Granholm expects to slide through the year right up until voting day by calling it a year of building for 2007. I also told you about the [positive] 2007 U.S. economic predictions. The Governor is telling us that her year of building in 2006 will pay off then.
As evidenced by her performance thus far, Michigan will not have a good year in 2007 if she is still in charge. This year, 2005, was a prime example- the U.S. economy did very well, while Michigan went downhill (Granholm said she spent the year crafting a plan for 2007)… The U.S. economy cannot carry Michigan kicking and screaming; other states will take advantage of Michigan’s poor governing style, as they did in 2005 (Indiana, for instance).
It’s all about leadership, accountability, experience, and a focus that serves the best interests of the State of Michigan… Party loyalty, political paybacks, and getting re-elected are secondary; not primary!
Full article follows…
Economy to brighten in '07, Granholm says
With construction jobs, tax breaks, state will again be a 'powerhouse,' governor predicts.
Mark Hornbeck and Charlie Cain / Detroit News Lansing Bureau
LANSING -- Michigan's languishing economy is headed for another sluggish year, but the state will regain its status as an "economic powerhouse," an upbeat Gov. Jennifer Granholm predicted Thursday.
At a news conference, the governor said an infusion of construction jobs resulting from an accelerated $2.7 billion public works building program, $600 million in business tax cuts and a $2 billion jobs investment fund all approved by the Legislature will start turning the economy around in 2007 and '08.
"I predict we will again be an economic powerhouse," said Granholm, seated next to a Christmas tree in her ceremonial office at the Capitol Building. "But we know we have a few tough months ahead in 2006.
"In 2007 and 2008 we will see the ship turn," said Granholm, who is wrapping up her third year as the state's chief executive. "I will not rest until that happens."
The governor also said in a wide-ranging interview that she'll work with Detroit Mayor Kwame Kilpatrick to revitalize the city, she strongly opposes the affirmative action ban on next year's ballot and doesn't think Michigan voters will hold her responsible for the loss of jobs in manufacturing.
She said the past year has been spent crafting a plan to fix the economy and next year's focus will be "working the plan."
Few economists foresee a strong Michigan economic rebound.
The University of Michigan's latest quarterly economic survey predicts that, after losing an estimated 33,000 jobs this year, the state will lose another 3,200 jobs in 2006 before generating a meager 17,400 jobs in 2007.
Patrick Anderson, principal of the East Lansing-based Anderson Economic Group which does consulting work around the nation, said underlying trends in the Michigan economy point to an ongoing slide.
"I also think Michigan can and will attract auto companies from around the world into the area," Anderson said. "But until we fundamentally address our cost structure -- including both taxes and costs that drove Delphi into bankruptcy -- as well as the size of government and productivity of our education structure, there is nothing to turn us back into a powerhouse."
Granholm, who is virtually certain to run for re-election next year, boasted that 279,000 new jobs have been created or retained during her administration. But she acknowledged that's not a net gain because of layoffs in manufacturing. Since 2000, the state has lost 308,000 jobs -- including 220,000 well-paying manufacturing jobs.
More bad news is coming in January, Granholm noted, when Ford Motor Co. is expected to announce a massive restructuring plan, which could involve closing at least 10 assembly and component plants while slashing up to 30,000 hourly jobs in North America within five years.
Granholm said, however, that even if her economic package had been in place earlier it wouldn't have prevented the layoffs in the auto industry already announced this year. Michigan is the nation's hardest hit victim of globalization, she said.
Responding to a charge she is certain to hear numerous times from Republicans in the next year, Granholm said there's nothing she could have done as governor to halt retrenchment in the auto industry.
"It wouldn't have mattered who was sitting in this chair," Granholm said. "The voters of Michigan are not stupid. They know globalization and outsourcing of jobs is not something a governor is going to stop."
Granholm said the $2 billion public-private jobs investment package was the high point of 2005. She added somberly that the low point was "every day I had to call a parent who lost a child (soldier) in Iraq."
She said that she's also been frustrated by long delays in winning legislative approval of the economic stimulus plan, which took 10 months.
She reserved her harshest criticism for President Bush and Congress, saying they have abandoned the nation's manufacturers, and she called again for Washington to do something about making trade policy more balanced and helping businesses with legacy costs.
The governor said she has met several times with Detroit Mayor Kwame Kilpatrick since his re-election last month about saving the state's largest city. But she stopped short of promising a state cash bailout of Detroit.
"Our state economy is tied to the fortunes of our largest city, our image is tied to the state's largest city," Granholm said.
Although she said the state will partner with the city on riverfront improvement, the Super Bowl event, housing and safety, she said the state's lean budget won't allow a massive bailout.
You can reach Mark Hornbeck at (313) 222-2470 or mhornbeck@detnews.com.