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“Follow-the-money” is always the key to understanding Liberal politicians… In this case, the reporter does a good job itemizing taxpayer money being spent on groups of people; the theory is they will be so grateful they will vote Granholm back for another four years… The reporter also does a good job in outlining the downside of the Granholm plan; that no plan exists to encourage jobs and business opportunities.

This should not surprise anyone who understands the Liberal thinking that has infiltrated the Democratic Party; Harry Reid, Ted Kennedy, Jennifer Granholm, etc., etc., etc., etc.

Full article follows… 

Granholm pushes 401(k)s

In 4th State of the State address, gov. also focuses on health care for working poor, Merit Scholarships, minimum wage

Mark Hornbeck and Charlie Cain / Detroit News Lansing Bureau

LANSING -- Tens of thousands of Michigan employees who have no retirement plan could invest in a state-run 401(k) program under a proposal unveiled Wednesday night by Gov. Jennifer Granholm in her annual statewide address.

The governor, in her fourth State of the State message, also proposed providing health care coverage to a half-million uninsured working poor, rearranging the Merit Scholarship program to award $4,000 to students who complete two years of college, and removing state limits on controversial stem cell research. She renewed a call to lawmakers to increase the state's minimum wage by $1.70 to $6.85 an hour on Jan. 1, 2007, and, barring that, vowed to lead a ballot proposal campaign this fall.

Granholm acknowledged that families are being hurt by the state's sluggish economy, but offered no sweeping new plans to create jobs. Measures approved last year by the Legislature must be given time to work, she said.

"Wherever we live in Michigan, we know that as our auto industry struggles in this global economy, our people feel that pain more than any other state in the country," the 46-year-old first-term governor said.

"Michigan, I am here to tell you: We have a detailed and comprehensive plan to grow this economy. We are working that plan, and everything in that plan will secure the opportunity for a good life for you and for your family. In Michigan."

Details of the proposed state 401(k) plan were sketchy, but administration officials said it likely would be available starting next year to those who work at small businesses that don't have the expertise or resources to offer their own plans. Businesses would have to sign up for the pre-tax investment program. The administrative cost to the state would be nominal, officials said.

"People shouldn't be counting on Social Security for their retirement nest egg," said state Treasurer Jay Rising. "We know that 60 percent of firms with 25 employees or less offer no 401(k)."

Rising said the chief advantage of the state plan over a private Individual Retirement Account is that the 401(k) contributions come out of pre-tax earnings, whereas most IRAs do not.

Economy haunts state

Lurking in the background of a largely upbeat speech was the state's recent record of weak job creation and high unemployment, punctuated this week by the Monday bombshell from Ford Motor Co. that it will lay off 34,000 employees, including nearly 1,600 at the 48-year-old Wixom assembly plant.

Michigan, which had an average 6.8 percent jobless rate last year, far above the 5.1 percent national average, has gone through dramatic upheaval as Detroit-based automakers continue to lose market share.

Her address to the Legislature and a live public television and radio audience was an important one for Granholm, who is seeking re-election this November against Dick DeVos, a Republican businessman who will tap into his considerable wealth and tout his business background in an economically challenged state.

"The governor is a great speech maker and if speech making and high-flying rhetoric were things that make this state great, Michigan would be back," DeVos told The News after the speech. "I'm an optimist, too. But after three years of lack of results, I wonder if the people of Michigan are getting tired of being told they have to wait some more."

The health insurance plan and endorsement of an increase in the state's minimum wage should appeal to her Democratic base, while her latest proposals for economic development and education are designed to help her with independents and moderates.

Republicans sit tight

Republicans, who control the Legislature, were measured in their response -- a signal they won't be inclined to help her win key battles in this election year. As for the governor, she promised to veto a small-business tax cut passed by lawmakers this week.

House Speaker Craig DeRoche questioned the need for a state-operated health care plan for the uninsured.

"The governor's right to be concerned about the growing number of families without health insurance, but rather than create a costly new government program to provide health insurance for the jobless and underemployed, I believe we should marshal our resources to attract and retain high-paying jobs with good benefits," the Novi Republican said.

Granholm acknowledged Detroit Mayor Kwame Kilpatrick in the audience, saying: "The entire state needs and wants Detroit to be successful. We all have to work together to see it happen. So to those who practice the politics of division, who would drive a wedge between the city and the state, let me say this: The only thing that should come between Detroit and Michigan is a comma. Period."

A call for action

Highlights of the final address of her first term included:

·  A $1 billion plan to extend health insurance coverage to half a million primarily working poor. The proposal will need approval from the federal government and likely the Legislature and is at least several months away from reality.

·  Renewal of her call to change the Merit Scholarship program. Now, she intends to offer high school graduates who pass state high school tests $2,000 to use toward college and another $2,000 upon completion of two years of college and maintenance of a 2.5 grade point average at Michigan higher education institutions only. Under the current program, a high school graduate can receive $2,500 to be used at any university or trade program across the country.

·  Removal of the state's restrictions on stem cell research that holds promise for finding cures for debilitating diseases such as Alzheimer's, Parkinson's and diabetes. Lifting the limits would enable life sciences firms doing work in those areas to locate in Michigan.

·  Passage of the tougher high school graduation requirements -- including four credits of English and math, three in social studies and science, two in foreign language and one in health education and fine arts -- proposed by the State Board of Education, by March so schools can put them in place this fall.

·  A proposal to make new investments in after-school programs for middle school students in math, science and computer technology and to increase spending on early childhood education.

You can reach Mark Hornbeck at (313) 222-2470 or mhornbeck@detnews.com.