Governor Granholm has made continuously improving Michigan's business climate a top priority of her Administration. From cutting business taxes to streamlining permitting to investing in education and job training, she's made it clear that no state will beat Michigan when it comes to welcoming new investment and new jobs. Today, Michigan offers employers a competitive tax structure, a skilled workforce with a work ethic second to none and a well-managed government that has waged war on both red ink in the budget and red tape in the regulatory process. Site Selection Magazine added up the score and rated Michigan the 8th best business climate in the nation. The Small Business and Entrepreneurial Council said Michigan was the 5th best state for small business. And, the 2007 State New Economy Index showed that since 2000, Michigan is the most improved state in the nation in preparedness for the knowledge-based economy.

Making Government Lean, Not Mean

Since she took office, Governor Granholm has eliminated more than $4 billion in deficits without increasing general taxes. She did it by making tough decisions about state spending priorities and by eliminating waste. During these years, state spending has fallen to its lowest level since 1974, and the state workforce is smaller than it has been in three decades.

Competitive Taxes

Michigan's economic experience shows that tax cuts alone cannot prevent job loss. Nonetheless, Governor Granholm believes that Michigan's business taxes must allow our state to compete in the battle for jobs. Since taking office, she has signed 93 targeted business tax cuts into law, including a $600 million tax cut in 2005 for our beleaguered manufacturers that encouraged the in-sourcing of jobs to Michigan. The Governor's Michigan Business Tax plan to replace the antiquated Single Business Tax (SBT) is simple and fair. It makes Michigan's tax structure highly competitive, provides significant personal property tax relief, cuts taxes for thousands of small business and encourages companies to locate their headquarters in Michigan. The Governor proposed additional changes in the tax structure to increase revenue, and her changes will keep Michigan taxes below the national average.

Streamlining Government

When Governor Granholm took office, Michigan's government moved at a snail's pace while the business world raced ahead at lightning speed. Today, our state government is fully embracing e-technology, creating a 24/7, one-stop shop for permitting on-line. Michigan was the first state in the nation to offer environmental permits online - a step that has cut air quality permitting for businesses by 66 percent. Governing Magazine recognized the improvement in state government operations when it named Michigan the third best managed state in the nation. The Center for Digital Government named Michigan the most e-friendly state in the nation.

Building Our 21st Century Infrastructure

In the last century, commerce moved on roads, rivers and railways. While those methods of transportation remain critical in today's economy, wired and wireless technologies are transforming the business world. Governor Granholm is building this new infrastructure in Michigan today, extending broadband capabilities to every corner of the state this year and putting Michigan on the leading edge of emerging wireless technologies.

Investing In Strong Cities

Governor Granholm believes Michigan's cities should be vibrant centers of commerce and culture-places that can attract a diverse, educated workforce. From building affordable housing to fighting crime to creating safe neighborhoods, to her 'Fix It First' policy of investing in existing road repairs, the state has become an active partner in helping Michigan's cities thrive, ending a period of disinvestment in our urban centers. The Governor's 'Cool Cities' initiative is helping communities across the state find exciting new ways to promote economic growth and urban development and attract a young, educated workforce. Her ‘Cities of Promise' plan will invest much-needed funds in vulnerable communities to fight crime and blight and promote home ownership.