State of the State: Chamber urges governor to trim state spending.

Gov. Jennifer Granholm's fifth State of the State speech called for diversification of Michigan's economy with a particular focus on the alternative energy sector. While alternative energy companies are already choosing Michigan for their growth, Granholm called for targeting more than $100 million in state and private resources to even more aggressively attract these high-growth companies.

In the area of education and workforce development, she proposed a one-time opportunity for displaced workers to attend a Michigan community college for free to receive training in a high-demand field. Additionally, the governor called for new investment in our schools that would make kindergarten mandatory and raise the dropout age to 18, and expand access to preschool. The governor also proposed creating Promise Zones to allow local communities to capture tax revenue to help fund college scholarships similar to the Kalamazoo Promise. In her first term in office, the governor made more capital and start-up funds available to small businesses. In her speech, she called for passage of her plan to make 401(k) plans available to small business employees at little or no cost.

Finally, the governor will require government to do business differently. Granholm proposed changes to the prison system that will make more efficient use of taxpayer dollars while protecting public safety. She proposed requiring local communities and school districts to share some services and save money, and she is increasing the number of workers protecting Michigan children, giving those workers new and better tools and requiring accountability for their work.

The Detroit Regional Chamber supports efforts to trim Michigan's budget before there is any discussion of tax increases. In particular, we urge the governor to strongly pursue efforts to bring our prison spending in line with that of other Great Lakes states. Currently, Michigan spends around $500 million more on corrections than competitor states.

The Chamber also believes that efforts to consolidate operations for school district and governments are a step in the right direction for additional long-term savings. Changes to teacher pension systems to include them in 401(k)-style systems would save millions of taxpayer dollars as well.

Sarah Hubbard is senior vice president of Government Affairs at the Detroit Regional Chamber.

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