The latest Business Leaders for Michigan economic outlook survey shows that Europe’s fiscal crisis, slowing global growth and the lack of a clear U.S. fiscal policy are dragging down the economy. While our members remain bullish toward Michigan’s economic future and the optimism between how they feel toward Michigan’s vs. the nation’s economy is actually growing wider, they project Michigan will not grow as fast over the next 18 months due to these macro-economic concerns.
The first chapter in Michigan’s economic recovery reads like a story book. We were one of the fastest growing states as our manufacturers propelled us out of a deep recession and our state lawmakers addressed long-standing structural reforms. But the survey warns us that the next chapter in Michigan’s recovery might prove more difficult. The Michigan Turnaround Plan outlines how to navigate through this period. Memorialize the good fiscal practices followed by the state the past few years. Continue to reduce long-term debt. Improve the business climate by phasing-out the personal property tax. Prioritize spending on what matters most to growing jobs: higher education and transportation infrastructure.
Michigan’s turnaround is underway. But we’ve only completed the first lap in a long race.