1	Governor Granholm’s Economic Plan for Michigan
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3	"1986" 1986 1993 2007 The Big 3 72.4% 73.7% 52.2% Internationals 27.6% 26.3% 47.8%
4	MI Manufacturing Jobs … 30% Lost Since 1999
5	Governor Granholm’s Economic Plan … Diversify the Economy Affordable college and training for all Jobs created by improving infrastructure Higher standards and more investment in schools Access to affordable health care Vibrant Cities
6	… is already set in motion Google, Whirlpool, Toyota and others are choosing Michigan 14 new corporate HQs this year alone Governor’s Trips to Germany, Japan bring jobs and investment $4,000 Michigan Promise Scholarship for all students High School Standards among toughest in nation MEAP scores rising
7	The Next Step … Kick The Plan Into Overdrive Go Anywhere, Do Anything to Bring Jobs to Michigan Target Alternative Energy Sector for Job Creation Free training for displaced workers Reform Government to cut costs Invest in education
8	Budget Problems Continue SBT elimination costs state $1.9 billion in a full year. Challenged economy has a $1 billion shortfall in the next two years - revenues fall, more workers need more training and more people need health care and the social safety net.
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10	Tax Cuts reduce revenue by $1.9 billion Tax Cut FY06 Cost (in millions) SBT Rate Cut (begun in 1999) $419.0 Other SBT cuts $206.5 Income Tax Rate Cut (begun in 2000) $901.4 Other State Tax Changes $207.1 Federal Estate Tax Repeal $200.0 Total Revenue Lost $1.934.0
11	Doing More With Less
12	Eliminating Waste & Fraud Saves Millions Saved $524 million by renegotiating contracts, ending no-bid contracts Nationally-recognized protections against food stamp fraud saving millions Bulk purchasing of prescription drugs and other cost saving steps saved $400 million
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14	FY 2007 General Fund Only
15	Relying on Cuts Alone
16	Michigan’s Choice
17	Governor’s Budget Implements The Plan Budget is combination of cuts, reform and revenue Over $400 million in cuts Prison reforms to reduce prison population, cut costs Local government and schools sharing services Reforms to keep kids safe New revenue to invest in critical programs like education and worker training
18	New Revenue To Invest in Our People Michigan Business Tax to replace eliminated SBT The Two-Penny Plan – a 2% tax on services excluding education and healthcare Estate tax on estates worth more than $2 million Increase in taxes on cigarettes, tobacco products and liquor Elimination of some tax loopholes Sales tax break for car buyers based on the value of a car traded in for a new vehicle Michigan’s business and personal tax rates remain below the national average
19	The Two-Penny Plan Proposal will cost an average citizen $1.33 per month – about the cost of a pop from a vending machine. Health care, education and day care services are not taxed. A child’s lemonade stand & the neighbor kid who mows the lawn aren’t taxed– only registered businesses. A tax on services is progressive – those with the most disposable income tend to spend most
20	Education Impacts Earnings
21	"Governor Granholm’s" Governor Granholm’s Economic Plan for Michigan Investing in Michigan’s People