Yes, Michigan, who is governor does make a difference

Michael A. Finney is president and CEO of the Michigan Economic Development Corporation. His responsibilities at MEDC also include serving as the governor’s economic growth group executive.

Michigan is known by many names – Great Lakes State, Wolverine State, the Mitten. But when it comes to economic descriptions, we can add a new moniker to our lexicon – the Comeback State. It starts with jobs.

More than 295,000 private-sector jobs have been created in the state since December 2010, and there are more than 175,000 jobs available in the state right now.

Coupled with our unemployment rate going from 14.2 percent in June 2009 to 7.7 percent in July 2014, Michigan businesses are hiring and people are rejoining the workforce at an accelerated pace.

We aren’t yet where we want to be, but we’re quickly moving in the right direction.

Other indicators point to our comeback as well.  Michigan’s gross domestic product growth outpaced the national average last year. Our state output grew by 11.4 percent from 2009-2013, compared to 8.4 percent of the U.S. economy.  State sales tax numbers are trending up in 2014, and auto sales are the highest they have been in eight years.

There are many reasons for Michigan’s turnaround.

No doubt the reinvention and financial success of the automotive industry has been a key driver.

But, any discussion of Michigan’s comeback must begin with the common sense reforms Governor Snyder and lawmakers made to re-engineer our business climate to one in which businesses of every size and in every industry can compete, grow, and create new jobs.

They replaced a convoluted business tax with a streamlined corporate income tax. This propelled our national business tax climate ranking to #3 among the 12 most populous states, according to the nonpartisan Tax Foundation in Washington D.C.

And, in a move that will improve our corporate tax climate even more, Michigan voters just passed a phase out of personal property taxes that small businesses pay on office equipment and manufacturers pay on industrial equipment.

Other major policy changes include eliminating more than 1,500 burdensome business regulations, revamping the state’s economic development toolkit, and becoming a right-to-work state.

Another important factor that is often overlooked is that state government finances are now on sound footing.

The governor and lawmakers eliminated a $1.5 billion structural deficit. The state’s long-term liabilities have been reduced by more than $20 billion, which has helped in rebuilding the state’s reserve fund to about $580 million.

A stronger business climate and a balanced and healthy state budget are providing the kind of economic certainty that is very attractive to businesses making new location and investment decisions.

In an August 28, 2014 article in Forbes about Toyota moving 250 jobs from California to its technical center in York Township near Ann Arbor, general manager of external affairs for Toyota Motor Engineering and Manufacturing Bruce Brownlee “praised the improving business climate in Michigan that has occurred under Governor Snyder.”

He said, “Michigan now is a very excellent place to do business. The administration has been very positive in terms of some of its policies related to business. Those are all pieces of the puzzle.”

Governor Snyder says it’s not about placing blame or taking credit. It’s about being relentless at solving problems.

But, I’m happy to take this opportunity to give some credit where credit is due.

There’s no denying that the common sense reforms led by the governor have made Michigan more competitive and a better place to do business.

And, there’s more proof on the way.