Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business...

32
10 YEARS LEADING MICHIGAN TO THE TOP TEN Measuring Performance. Taking Action.

Transcript of Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business...

Page 1: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

10 YEARS LEADING MICHIGAN TO THE TOP TEN

Measuring Performance. Taking Action.

Page 2: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Business Leaders for Michigan Michigan’s Road to Top Ten

About Business Leaders for MichiganBusiness Leaders for Michigan, the state’s business roundtable, is dedicatedto making Michigan a Top Ten state for jobs, personal income and a healthyeconomy. The organization is composed exclusively of the executive leadersof Michigan’s largest companies and universities. Our members drive nearly40 percent of the state's economy, generate over $1 trillion in annualrevenue and educate nearly half of all Michigan public university students.Find out more at: www.businessleadersformichigan.com.

Copyright © 2020 Business Leaders for Michigan. All Rights Reserved.

10 YEARS LEADING MICHIGAN TO THE TOP TEN

Page 3: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

1

Business Leaders for Michigan dedicated ourselves to help Michiganbecome a “Top Ten” state when were formed. So as we turned ten yearsold, our Board spent a significant amount of time on reflection, analysisand benchmarking our own organization.

Ten years in, we looked at where we started and how far we’ve come.Does Michigan have the same economy it did 10 years ago? Do we havethe same values, goals and perspective we did then? How have we grownas a state, and has everyone grown together? Is our economy goodenough for enough people?

While it is critical for the state to foster an environment that supportseconomic growth and encourages business investment in the jobs of thefuture, it is equally important for Michigan to invest in its greatest resources:our communities and the people who call this state home. As we preparedthis strategic plan, we discussed philosophically and practically what itactually means to measure the success of our economy; we’ve included datathat tracks key quality of life indicators as well as personal success measures.

Our members are leaders in workforce and economic development,boosting wages and offering generous benefit packages, as well aschampioning diversity and inclusion in every office and factory. We stronglybelieve everyone should have access to the same opportunities for success.

Michigan has unlimited potential to grow. And yet we aren’t fullycapitalizing on all of our key strengths, such as our higher educationsystem and high-tech manufacturing, as well as tourism and agriculture.We are absolutely capable of leveraging assets so every community in thestate has a strong economic base and will advocate for new growthstrategies in these and other industries.

For the first time, we are combining key benchmarking data with our newstrategic plan for Michigan. You’ll see how we have made huge strides onsome indicators, such as reforming unfunded liabilities, our corporate taxindex and per capita GDP. However, some of our concerns from previousyears remain, namely improving our K-12 educational system for our kids,boosting career and college readiness, and fixing critical infrastructure.Based on the obstacles we overcame in the past 10 years, we’re confidentwe can turn around these measures as well.

Will you join us for Michigan’s Road to Top Ten?

Michigan’s Road to Top Ten • 2020

Gerry Anderson, DTE EnergyBoard Chair, 2020-21Business Leaders for Michigan

Doug RothwellPresident & CEOBusiness Leaders for Michigan

Page 4: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Business Leaders for Michigan Michigan’s Road to Top Ten

2

2020 GoalsThese strategies and objectives will have the mostimmediate, meaningful impact on the state’s ability togrow good-paying jobs and improve the quality of lifefor residents.

Page 5: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

3

Goal: Compete for Good Jobs2020 Plan

• Partner with the Michigan Economic Development Corporation toestablish the best business attraction program in the nation byimplementing best practices

Goal: Invest in People2020 Strategies

• Improve Michigan’s pre-K through 12th grade performance byadvocating for adoption of Launch Michigan’s recommendationsand directing more existing funding to the classroom

• Strengthen Michigan’s talent base by developing a strategy to attractmore immigrants and out-of-state talent

• Design recommendations to improve alignment between communitycollege outcomes and current and future workforce needs

Goal: Build Strong Communities2020 Priority

• Advocate for legislation that raises sufficient and sustainablerevenue to improve the state’s roads and bridges

Goal: Leverage Our Strengths2020 Strategy

• Partner with state government and key regions to identify actionsthat will leverage key industries for further economic growth

Page 6: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

35thRank

“Top Ten” Avg.

Michigan Trend

4.13%3.60%

Level

37thRank

“Top Ten” Avg.

Michigan Trend

0.20%0.54%

Level

4th Rank

“Top Ten” Avg.

Michigan Trend

2.91%2.59%

Level

42ndRank

“Top Ten” Avg.

Michigan Trend

1.07%2.10%

Level

36thRank

“Top Ten” Avg.

Michigan Trend

61.39%65.88%

Level

29thRank

“Top Ten” Avg.

Michigan Trend

1.12%1.53%

Level

Where is Michigan? Anyone can find the mitten on a map.But it’s even more important to examine where our economy stands relativeto our competitors, so we can be sure all our state’s residents are prosperousand successful.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

4

Overall Economic Strength

Unemployment Rate Employment Growth Labor Force Participation

Per Capita PersonalIncome Growth

Per Capita GDP Growth Population Growth

Page 7: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

5

What is a “Top Ten” state? These states areselected based on their average ranking on key job, productivity,personal income and population indicators.

What is a peer state? Peer comparison states wereselected based on their traditional economy (i.e., manufacturing)or new economy (i.e., information technology) industries.

If Michigan wasa “Top Ten” state,we would have:

26,000more people working

$13,000moreincome per person

$15,000moreGDP per person

Page 8: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

While Michigan currently falls in the bottom half ofstates in overall business tax climate rankings, itremains in the top 15 states for corporate andbusiness taxes. These data suggest that Michiganmust continue to focus on maintaining competitivetax structures while streamlining and improving itsregulatory environment and consistency providingcompetitive economic development services. Byimproving the overall business climate, the state cancreate the competitive conditions needed to deliver:(i) high-quality job opportunities that generate greatereconomic security for families, and (ii) strongerproductivity and economic output for employers.

Every state is fighting for good jobs. To compete,Michigan must advance innovative and effective tax,regulatory, energy, and investment strategies that willproduce sustained employment growth and long-term economic development.

To become a “Top Ten” state, Michiganmust not only create jobs, but good ones. The state must establish an environment that recognizes the challenges ofan increasingly competitive and global economy by encouraging andsupporting entrepreneurship and growth. These conditions allow businessesto thrive, and create opportunities that sustain families and communities.

Compete for Good Jobs: Where Michigan Ranks

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

6

Compete for Good Jobs

1

5

10

15

20

25

30

35

40

45

50

Business ClimateRankings

Corporate TaxClimate

Overall BusinessTax Climate

Michigan

Peer Avg. Rank

“Top Ten” Avg. Rank

Page 9: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Recommendations

• Maintain a competitive state tax climate and continue tomodernize Michigan’s tax system:

− Reflect changes in the composition of the economy andadopt broad, fair and flat taxes wherever practical.

• Maintain competitive energy costs.

• Determine the impact of property taxes on Michigan’scompetitiveness.

• Continue improving the state’s regulatory environment:

− Require state agencies to publicly disclose informationabout planned regulatory actions on a monthly basis andengage stakeholders early in the regulatory process.

− Require a plan to evaluate the effectiveness of major rules.

− Designate a lead agency to have primary responsibility forcoordinating reviews of a project, and ensure that permitsare processed by multiple agencies in parallel and accordingto a firm schedule (e.g., 180 days).

− Create an inventory of pending permits by agency andprogram, and expand online dashboards to track the statusof permits for all major projects and provide links to relevantdocuments.

• Support comprehensive federal regulatory reform (consistentwith recommendations outlined by the national BusinessRoundtable):

− Objectively analyze costs and benefits of proposed and finalmajor rules from agencies, including independent regulatorycommissions.

− Support public disclosure of information about plannedregulatory actions on a monthly basis and engagestakeholders early in the regulatory process.

7

Page 10: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Ensure every major rule includes a plan for how the agency will evaluateits effectiveness over time.

− Congress should consider other changes to the AdministrativeProcedure Act, particularly relating to the content of the rulemakingrecord and greater judicial scrutiny of that record.

• Provide competitive state economic development support:

− Act cohesively to attract and grow more good jobs across Michigan bybuilding greater alignment among stakeholders on: (i) the importance ofa strong state economy, (ii) the role of economic development, and (iii)the importance of consistent, competitive policies.

− Utilize the MEDC’s public-private structure to strengthen the role theprivate sector plays to help Michigan attract talent, investment andgood jobs.

− Ensure economic development is consistently funded at competitivelevels and that Michigan maintains competitive and effective economicdevelopment tools.

− Emphasize the growth of all businesses: large, small & start-ups.

− Maintain strong global trade and export support services to supportMichigan business growth.

• Reinforce the Michigan Economic Development Corporation as a singlepoint of contact for business talent needs:

− Drive a customer-centered approach to service delivery through thecoordination of job training services for new or expanding businessesas part of the state’s economic development program.

− Facilitate collaboration and sharing of best practices among job trainingservice providers to help navigate programs and partners for new orexpanding businesses.

− Provide on-demand job training to meet the needs of employersexpanding or relocating to Michigan at the time, place, and schedulethat meets their needs.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

8

Page 11: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Accelerate the speed of delivering on-demand job training byregularly anticipating high-demand employer skillrequirements to develop customized training solutions.

− Promote the Jobs Ready Michigan brand for on-demand jobtraining to strengthen Michigan’s reputation of deliveringthese services.

− Examine every federal- and state-funded job trainingprogram to ensure resources are fully leveraged to respondto employer needs.

9

Goal: Utilize theMEDC’s public-private structureto strengthen therole the privatesector plays tohelp Michiganattract talent,investment andgood jobs.

Page 12: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

While the state has seen steady economic gains in thelast decade, severe pension and other post-employment benefit (OPEB) liabilities are still holdingsome communities back. Michigan also has far moreunits of government than most other states, whichrequires more tax dollars to support the overheadcosts of operations.

Michigan must continue to identify and implementfiscal best practices, including long-term strategicplanning and multi-year budgeting. These changeswill encourage cost-effective service delivery andpromote financial stability at the state and locallevels. These policies also will ensure the statemaintains and improves its fiscal health, which iscritical not only for sustainable growth, but also forprotection against the negative impacts of any futureeconomic downturn.

Coming out of the Great Recession, Michigan’sfiscal health was poorand required a decade of hard work and tough choices to make improvements. As Michigan’s economy continues torecover, it remains essential for the state to: (i) effectively and efficientlymanage its resources, and (ii) ensure the hard-fought gains result in a sounderfinancial foundation with less volatility and uncertainty for taxpayers.

Maintain Financial Stability: Where Michigan Ranks

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

10

Maintain Financial Stability

1

5

10

15

20

25

30

35

40

45

50

Michigan

Peer Avg. Rank

“Top Ten” Avg. Rank

Unfunded PensionLiability

Unfunded OPEBLiability

Total State & LocalSpending

* Higher ranking means lower per capita spending

*

Page 13: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Recommendations

• Maintain sound state fiscal best practices bycontinuing to:

− Propose performance-based and multi-yearbudgets.

− Complete budgets by July 1.

− Adopt a long-term strategic plan, fiscal notes thatestimate the cost of proposed legislation, and acitizen-friendly balance sheet.

• Continue paying down state unfunded liabilities:

− Shift local government and school system retirees65 and older to Medicare and early retirees tohealth care exchanges with stipends to maintainpromised heath care benefits.

• Reduce state and local corrections costs:

− Adopt evidence-based practices that reducerecidivism and lengths of stay of non-violentoffenders, such as treatment courts, medicalparole and vocational training.

• Strengthen local fiscal best practices:

− Prevent local fiscal emergencies by precludinglocal governments from offering defined benefitretirement plans and retiree health care benefits tonew hires.

− Enhance certification and professionaldevelopment requirements for local governmentfinance staff and provide state support for training.

− Encourage and expand local government servicesharing.

11

Why it matters:Payments forhigh unfundedliabilities maycrowd outspending forcompetingneeds, such asinfrastructureand education.

Page 14: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Michigan has made small improvements infourth-grade reading and eighth-grademath proficiency, and yet we remain nearthe bottom when compared to other states.Many students graduate without beingcollege- and career-ready. If we cannotensure that our children are able to read,write, do math, and graduate prepared tosucceed after high school, not only will thenext generation be unprepared to compete ina global economy, but businesses willstruggle to fill positions, limiting the state’seconomic growth. Michigan must harnessthe power of its people by investing instrategies that will ensure that everystudent and adult worker can enter theworkforce ready to compete by havingaccess to best-in-class education andtraining and connections to careeropportunities.

In addition to promoting education policiesthat ensure every child is ready to learn andadvance, the state should implementstrategies for supporting talent attractionby ending discrimination based on sexualorientation and gender identity, and supportindividuals facing barriers to employment.

While it is critical for the state to focus on fostering an environment that will support economic growth and encourage businessinvestment in the high-quality, rewarding jobs of the future, it is equallyimportant for Michigan to invest in its greatest resource: our communitiesand the people who call this state home.

Invest in People: Where Michigan Ranks

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

12

Invest in People

4th GradeReading

Pr

8th GradeMath

Pr

Career &College

Readiness

EducationalAttainment

Median Age

1

5

10

15

20

25

30

35

40

45

50

Michigan

Peer Avg. Rank

“Top Ten” Avg. Rank

Page 15: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Recommendations

• Ensure every child is ready to learn and advance:

− Maximize support for teachers by: (i) promotingthe profession, and (ii) providing robust trainingopportunities, updated classroom technologies,and relevant student data.

− Develop high standards for initially certifyingteachers and establish ongoing evaluations ofteachers for competency and effectiveness basedon student progress and performance.

− Maximize support for principals, includingproviding robust training opportunities to ensureeffective leadership.

− Raise student standards, with a focus on math,literacy and science to prepare each student fortheir path of choice after the 12th grade, includingcollege, technical training or immediate career.

− Improve literacy outcomes for K–3 students.

− Maintain and strengthen the M-STEP assessment,and then maintain year-over-year testadministration to obtain relevant data to assistteachers.

− Explore a competency-based learning model toprepare students for 21st-century careers.

− Support and maintain a uniform set ofperformance and accountability standards for allschools, school management and leadership thataccounts for student growth relative to level ofproficiency.

13

Goal:Ensureevery childis ready tolearn andadvance.

Page 16: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Adopt improvement strategies and provide the necessary support toremediate when necessary.

− Allocate any significant new funding based on relative school progress,performance, and equity.

− Build better and more aligned support from educators, business,parents, government, and philanthropy.

− Hold every level of the K–12 education system accountable for the roleit plays in student outcomes. This includes school leadership andmanagement, the Michigan Department of Education, the Governor andthe Legislature.

− Support Launch Michigan, a diverse partnership of education, labor,business and philanthropic organizations committed to establishing ashared agenda to ensure all Michigan students receive a best-in-classeducation.

− Support a state constitutional amendment requiring the Department ofEducation report to the Governor to improve accountability.

• Become a “Top Ten” state for dollars going to the classroom bydetermining the true cost to educate all students equitably and theeffectiveness of Michigan’s current spending model:

− Increase integration of reporting requirements.

− Establish detailed funding and non-instructional spending and staffingbenchmarks.

− Encourage local education agency utilization of intermediate schooldistrict shared services.

− Establish a state-wide pre-approved list of IT systems.

− Centralize specific non-instructional activities into intermediate schooldistrict support centers.

− Create a state-wide capital cost fund to support capital projects.

− Centralize all non-instructional activities into intermediate schooldistrict support centers.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

14

Page 17: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Consolidate the administration and back-office operationsof small local education agencies.

− Balance the number of local education agencies and publicschool academies.

• Improve the connections between education, training andcareers:

− Provide parents and students with the information theyneed to make good career choices and select the besteducation and training pathways by increasing careercounseling services and starting them upon high schoolenrollment.

− Increase opportunities for high school and collegestudents to participate in school-to-work transitionexperiences.

15

Why it matters:Lack of growthin populationaffects our abilityto support sharedresponsibilitiessuch asmaintaininginfrastructureand providingeducation.

Page 18: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Increase employer participation in identifying workforce needs anddeveloping workforce development strategies.

− Require training providers, community colleges and universities to trackgraduate placement results, job provider satisfaction and non-degreeoutcomes.

− Encourage the utilization of apprenticeships for high-demand jobs.

• Increase the number of workers with an education and training beyondhigh school:

− Increase in- and out-of-state college enrollment and completion rateswithout reducing in-state access:

• Support a marketing program to recruit out-of-state students andincrease in-state enrollment.

• Increase the availability/use of high-value sub-degree certificates,transferability of credits, dual credits, and career guidance services.

• Increase at-risk student enrollment and graduation rates.

• Structure financial aid as an incentive to degree or certificatecompletion while encouraging public service and/or working inMichigan.

− Achieve “Top Ten” community college and university affordability:

• Provide per student funding for public universities and communitycolleges comparable to “Top Ten” levels if universities or collegesmeet or exceed the performance of top quintile peers on specificoutcome-based metrics.

• Increase the available amount of state student aid.

• Expand the use of new course delivery methods and increaseadministrative efficiency through greater cross-institutionalcollaboration of back-office and support operations.

− Improve the competitiveness of Michigan’s community collegegovernance system, finances and outcomes.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

16

Page 19: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

• Grow Michigan’s population and increase labor forceparticipation:

− Prohibit discrimination based on sexual orientation and genderidentity, like we do for race, color, religion, sex, national origin,age, height, weight, familial status, marital status, or disability.

− Attract skilled immigrants and facilitate their relocationtransitions:

• Increase the number of H-1B visas.

• Issue H-1B training grants to train American workers forjobs which companies now fill using foreign nationals.

• Exempt from the annual cap H-1B workers who havedegrees in needed fields by U.S. universities.

• Allow individuals with advanced STEM degrees from U.S.universities to qualify immediately for a green card towork and live in the U.S.

• Establish a manageable legal system for workers whomay not have higher education but are needed for specificsectors, including agriculture, hospitality and construction.

• Adopt innovative strategies to attract immigrants to citiesexperiencing significant population loss, shortages oftrained and capable talent and lack of economic growthsufficient to engage the chronic un- and underemployed.

− Increase hiring of populations facing barriers to employment,including persons with disabilities, who may requireadditional accommodations, as well as veterans, returningcitizens, and people from disadvantaged backgrounds, whomay require additional training and support.

17

Page 20: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Currently the state falls near the bottom of mostinfrastructure rankings, including road and bridgeconditions. Recent state projections show that withoutsignificant and consistent investment in these areas,the state’s infrastructure will not only continue todeteriorate, but will decay at an accelerating rate. Thetime is now for the state to identify and invest in asustainable strategy for improving and maintainingthe state’s critical infrastructure.

Whether it is building roads and bridges, ensuring everyresident has access to clean water, or expandingbroadband, Michigan must adequately and effectivelyinvest in the infrastructure that strong families,communities, and businesses are built on. Whilefocusing on connecting and strengthening itscommunities, the state should also recognize, leverage,and protect the distinct assets that make them unique.If we make these investments, the benefits will accrueboth in the short-term and for generations to come. Butif we continue to fall behind, the state will have severelylimited its economic growth and squandered anopportunity to lead the nation in infrastructuredevelopment.

Our state is only as strong as itscommunities. Building connected, empowered, healthy, and diverse communities is challenging. Michigan must invest in safe and reliableinfrastructure that can bring people together and leverage community assetsacross the state.

Build Strong Communities: Where Michigan Ranks

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

18

Build Strong Communities

Urban Roadsin Good

ConditionBridges

PopulationAge 25-34

Cost of Living

1

5

10

15

20

25

30

35

40

45

50

Michigan

Peer Avg. Rank

“Top Ten” Avg. Rank

* Higher ranking means lower cost of living

*

Page 21: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Recommendations

• Prioritize infrastructure investments based oneconomic, health, and safety risks, with transportationand water systems given highest priority:

− Maintain a statewide non-partisan, multi-infrastructure council composed of professionalsubject-matter experts to recommend strategicprioritization of investments, maximize capture offederal dollars, facilitate public-private partnerships,oversee a coordinated asset management system,and possibly coordinate projects of statesignificance.

− Reward regional and cross-functional coordinationand resultant efficiencies.

− Maintain contractor warranties on work.

− Support federal investments in infrastructure,consistent with the principles outlined in thissection.

• Provide sufficient funding to ensure at least “good”and—ideally—“best” quality infrastructure conditions:

− Increase revenues from users of theinfrastructure—which means all of us—to closeMichigan’s $4 billion annual investment gap.General purpose taxes (e.g., sales and incometaxes) that fund the balance of state governmentshould not be utilized.

− Ensure funding is sustainable and dedicated.

− Design user fees to reflect the true cost of service,including the replacement or rehabilitation of aginginfrastructure.

19

Page 22: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Consider a renewable bond program and/or regional assessment tofund one-time or recurring needs that cannot be reasonably addressedthrough user-based funding. However, the revenue source should notadversely impact other critical priorities that help create jobs, such asjob training, higher education, and economic development.

− Consider alternative financing methods, such as public-privatepartnerships.

• Improve electric grid reliability and reduce power outages.

• Promote expanded availability of broadband to underserved rural andurban areas.

• Develop strategies that promote the development of affordable housingand enable workers to have access to available jobs.

• Develop and implement strategies for sustainably protecting andmanaging the Great Lakes for future generations.

• Empower regions by allowing them to fund regional assets byreferendum without state pre-authorization, such as transit systems,parks and cultural amenities.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

20

Page 23: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

21

Withoutsignificantinvestment,the state’sinfrastructure willnot only continueto deteriorate, butwill decay at anaccelerating rate.

Page 24: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Recommendations

• Adopt strategies to accelerate the growth ofMichigan’s key economic strengths:

• Engineering services• Automotive/mobility sector• High-tech manufacturing• Higher education & start-up creation• Medical device engineering &

manufacturing• Tourism & agriculture• Logistics

− Designate the MEDC to coordinate growthstrategies occurring at the state, regional, andlocal level.

− Consider dedicating a revenue source to fundand sustain long-term implementation of thegrowth strategies.

Every state has unique assets that give itopportunities to grow jobs and increaseproductivity. Michigan has more than most other states, especiallygiven our proximity to the Great Lakes and Canada. And yet we have failed toleverage these unique assets as much as we could have. If we seize theseopportunities, we’ll advance our growth to Top Ten status quickly.

Maintaining leadership and expanding the impact ofthese key growth industries requires doubling downon successful efforts already underway and makingsignificant, strategic, and consistent investments ininnovation.

Overall Economic Strength Compete for Good Jobs Maintain Financial Stability Invest in People Build Strong Communities Leverage Our Strengths

22

Leverage Our Strengths

1

5

10

15

20

25

30

35

40

45

50

Michigan

Peer Avg. Rank

“Top Ten” Avg. Rank

University R&DExpenditures

Venture CapitalInvestment

EntrepreneurialActivity

Page 25: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

− Support a federal mobility public-private partnership to:

• Advance research, development, and deployment ofconnected and automated technology.

• Adopt legal and voluntary technical standards thatlead the world.

• Develop the talent needed to grow the industry.

• Leverage distinct assets in urban and rural areas:

− Ensure that both urban and rural communities have anopportunity to benefit from the growth strategiesdescribed above.

− Support a small number of community- or regionally-ledstrategies designed to accelerate the growth of innovation-based businesses.

• Grow Michigan’s entrepreneurial and innovation ecosystemby leveraging our R&D base and universities:

− Encourage higher education to play a greater role ineconomic development:

• Develop economic development programs thatleverage each institution’s greatest potential impacton the local economy and develop a means to sharebest practices across institutions.

• Provide matching funds to enable universities to moreaggressively attract federal research.

− Support increasing federal R&D investments to at least therate of GDP growth – and ideally to twice this rate – toaccelerate the growth of innovation and Michigan’seconomic strengths.

− Become a “Top Ten” state for the availability of venturecapital to invest in Michigan-based start-ups and fastgrowth companies.

23

ENGINEERINGSERVICES

AUTOMOTIVE/MOBILITY SECTOR

HIGH-TECHMANUFACTURING

HIGHER EDUCATION & START-UP CREATION

MEDICAL DEVICEENGINEERING &MANUFACTURING

TOURISM &AGRICULTURE

LOGISTICS

Page 26: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Many of the goals we set to achieve 10 years ago have come to fruition, includingprojects that will change our physical and economic landscape in the coming years,such as construction of the Gordie Howe International Bridge.

And yet, we know that without further action, Michigan’s growth is not yet sustainable.The work that lies ahead requires tenacity. It’s going to take years of diligence torealize improvement on issues like education, infrastructure and accelerating thegrowth of the untapped sectors of our economy – so that we can ultimately becomea Top Ten state for jobs, personal income and a healthy economy.

We need more people moving to Michigan and the way we’ll get them here is simple:great jobs in a great place. But that doesn’t just happen.

We have to take deliberate actions to become a Top Ten state.

So, what now?

• Share this plan with your elected leaders and candidates running for office.

• Share it with every organization you are a member of that engages in public policywork, such as chambers and associations.

• Post about specific parts of the plan you support on social media, directingfollowers to www.MichigansRoadtoTopTen.com.

We’ll get to the Top Ten the same way we changed Michigan’s business climate fromone of the worst in the nation to one of the best, the same way Detroit reinvented itseconomy, and the same way we helped establish our state as the mobility capital ofthe world – all of these things were accomplished by working together across partylines, across industries and across the state. We have to keep those relationshipsstrong and lines of communication always open.

We look forward to Michigan’s continued success.

The Road Ahead

Business Leaders for Michigan Michigan’s Road to Top Ten

24

Page 27: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

25

Page 28: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

GERARD M. ANDERSON CHAIR OF THE BOARDExecutive Chairman DTE Energy

DARYL M. ADAMSPresident & Chief Executive OfficerSpartan Motors, Inc.

RICHARD E. ALLISON, JR.Chief Executive OfficerDomino’s

KEITH J. ALLMANPresident & Chief Executive OfficerMasco Corporation

G. MARK ALYEAPresident EmeritusAlro Steel Corporation

JOSEPH B. ANDERSON, JR.Chairman & Chief Executive OfficerTAG Holdings, LLC

LINDA H. APSEYPresident & Chief Executive OfficerITC Holdings Corp.

MARY T. BARRAChairman & Chief Executive OfficerGeneral Motors Company

MARK BASSETTChairman & Chief Executive OfficerHemlock Semiconductor Group

ALBERT M. BERRIZ Managing Member, Chief Executive Officer, Board Member & Co-OwnerMcKinley, Inc.

MARK J. BISSELLChairman & Chief Executive OfficerBISSELL Inc.

JOHN C. CARTERRegion Manager, Michigan Middle MarketChase

TIMOTHY P. COLLINSSenior Vice President, Heartland RegionComcast

GREGORY J. CRABBPresident & Chief Executive OfficerAmerisure Insurance Companies

MATTHEW P. CULLENChief Executive Officer, Bedrock;Principal, Rock Ventures & Chairman,JACK Entertainment

MARY CULLERChief of Staff, Office of the Executive Chairman, Detroit Development Director and PresidentFord Motor Company Fund

WALTER P. CZARNECKIExecutive Vice President & DirectorPenske Corporation

KURT L. DARROWChairman, President & Chief Executive Officer La-Z-Boy Incorporated

DAVID C. DAUCH Chairman & Chief Executive OfficerAmerican Axle & Manufacturing

MARK A. DAVIDOFFChief Executive OfficerThe Fisher GroupEmeritus Member

RICHARD L. DeVOREExecutive Vice President & Regional President, Detroit & Southeast MichiganThe PNC Financial Services Group

DOUG DeVOSCo-Chairman Amway

ALESSANDRO P. DiNELLOPresident & Chief Executive OfficerFlagstar Bank

STEFAN O. DOERRSenior Vice President, Monomers Division,North AmericaBASF Corporation

MATTHEW B. ELLIOTT Michigan Market President, Midwest Region Executive, Business BankingBank of America

BARRY ENGLEExecutive Vice President & President,The AmericasGeneral Motors Company

PHIL EYLERPresident & Chief Executive OfficerGentherm

PATRICK FINNSenior Partner, DetroitMcKinsey & Company

JIM FITTERLINGChief Executive Officer Dow

BILL FORDExecutive ChairmanFord Motor Company

TINA FREESE DECKERPresident & Chief Executive OfficerSpectrum Health

DAN GILBERTFounder & ChairmanQuicken Loans & Rock Ventures LLC

DAVID F. GIRODATRegional President Fifth Third Bank-Eastern Michigan

DAN GORDONChairman of the BoardGordon Food Service, Inc.

RONALD E. HALL President & Chief Executive OfficerBridgewater Interiors, LLC

MICHAEL R. HALLER, P.E. Chief Executive OfficerWalbridge

MATTHEW R. HAWORTHChairman Haworth, Inc.

DENNIS HOEGVice President & North America Chief Operations OfficerNexteer Automotive

CHRISTOPHER ILITCH President & Chief Executive OfficerIlitch Holdings, Inc.

MICHAEL J. JANDERNOAFounder 42 North PartnersEmeritus Member

MILES E. JONESChairman of the BoardDawn Food Products, Inc.

GORAN JURKOVICChief Executive OfficerDelta Dental of Michigan, Ohio & Indiana

HANS-WERNER KAAS Senior Partner, DetroitMcKinsey & CompanyEmeritus Member

ALAN JAY KAUFMANChairman, President & Chief Executive OfficerH.W. Kaufman Group

JAMES P. KEANEPresident & Chief Executive OfficerSteelcase Inc.

JOHN C. KENNEDYPresident & Chief Executive OfficerAutocam Medical

MURRAY S. KESSLERPresident & Chief Executive OfficerPerrigo Company plc

RICK KEYESPresident & Chief Executive OfficerMeijer, Inc.

BUSINESS LEADERS FOR MICHIGAN BOARD OF DIRECTORS - 2020

Business Leaders for Michigan Michigan’s Road to Top Ten

26

Page 29: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

STEPHEN M. KIRCHERPresident & Chief Executive OfficerBoyne Resorts

WILLIAM L. KOZYRAPresident & Chief Executive Officer TI Automotive

BLAKE W. KRUEGERChairman of the Board,Chief Executive Officer & PresidentWolverine Worldwide, Inc.

BRIAN K. LARCHEChairman, Chief Executive Officer & PresidentEngineered Machined Products, Inc.

WRIGHT L. LASSITER IIIPresident & Chief Executive OfficerHenry Ford Health System

KEVIN A. LOBOChairman & Chief Executive OfficerStryker Corporation

DANIEL J. LOEPP President & Chief Executive OfficerBlue Cross Blue Shield of Michigan

EVAN D. LYALLChief Executive OfficerRoush Enterprises, Inc

BEN C. MAIBACH III Vice Chairman & Chief Community Officer

Barton Malow Company

RICHARD A. MANOOGIAN Chairman EmeritusMasco Corporation

FLORINE MARKPresident & Chief Executive OfficerThe Weight Watchers Group, Inc.

CHARLES G. McCLUREManaging PartnerMichigan Capital AdvisorsEmeritus Member

HANK MEIJERExecutive ChairmanMeijer, Inc.

FREDERICK K. MINTURNPresident & Chief Executive OfficerMSX International

JAMES B. NICHOLSONChairmanPVS Chemicals, Inc.

JON NOBISChief Executive OfficerTwo Men And A Truck/International, Inc.

D. JEFFREY NOELCorporate Vice President, Communications & Public AffairsWhirlpool Corporation

JERRY NORCIAPresident & Chief Executive OfficerDTE Energy

ANDI OWEN President & Chief Executive OfficerHerman Miller, Inc.

WILLIAM U. PARFETChairman & Chief Executive OfficerNorthwood GroupEmeritus Member

CYNTHIA J. PASKY Founder, President & Chief Executive OfficerStrategic Staffing Solutions

ROGER S. PENSKE ChairmanPenske Corporation

JIM PETERSExecutive Vice President & Chief Financial OfficerWhirlpool Corporation

WILLIAM F. PICKARD, Ph.D. Chairman Global Automotive Alliance, LLC

SANDRA E. PIERCE Chairman-Huntington Bank Michigan,Private Client Group & Regional Banking DirectorHuntington Bank

PATRICIA K. POPPEPresident & Chief Executive OfficerCMS Energy & Consumers Energy

MICHAEL T. RITCHIE President, Comerica Bank-Michigan MarketComerica Bank

DOUG ROTHWELLPresident & Chief Executive OfficerBusiness Leaders for Michigan

ANDRA M. RUSHFounder, Chair & Chief Executive OfficerRush Group

JAMES R. SCAPAFounder, Chairman & Chief Executive OfficerAltair

MARK S. SCHLISSELPresidentUniversity of Michigan

RAYMOND E. SCOTTPresident & Chief Executive OfficerLear Corporation

SAMUEL L. STANLEY, JR., M.D. PresidentMichigan State University

SPENCER S. STILESPresident, Global InstrumentsStryker Corporation

ROBERT S. TAUBMAN Chairman, President & Chief Executive Officer Taubman Centers, Inc.

RAMESH D. TELANG US Automotive Leader, Detroit Managing PartnerPricewaterhouseCoopers

JAMES J. TOBINChief Marketing Officer & President, Magna AsiaMagna International Inc.

GARY TORGOWExecutive ChairmanTCF Financial Corporation

HOWARD UNGERLEIDERPresident & Chief Financial OfficerDow

SAMUEL VALENTI III Chairman of the BoardTriMas Corporation

STEPHEN A. VAN ANDELCo-ChairmanAmway

RON VAUPELPresident & Chief Executive OfficerGuardian Industries

S. EVAN WEINERPresident & Chief Executive OfficerEdw. C. Levy Co.

THOMAS G. WELCH, JR.Regional President Fifth Third Bank-Western Michigan

FRANKLIN C. WHEATLAKEChairmanUtility Supply and Construction Company

M. ROY WILSONPresidentWayne State University

WILLIAM C. YOUNG Chairman, President & Chief Executive OfficerPlastipak Holdings, Inc.

Deloitte LLP

Kelly Services, Inc.

SpartanNash

Current members as of January 2020

27

Page 30: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

Ten years of results. BLM advocated for the following achievements:

n Reformed Michigan’s business tax climate to be more competitive

n Improved state’s bond rating

n Adopted multi-year, performance-based strategic planning and budgetingto enhance the state's fiscal stability

n Conducted annual benchmarking of Michigan’s economic competitiveness

n Improved government accountability by introducing online datadashboards and annually reporting on key benchmarks

n Started construction of a new international trade crossing with Canada

n Launched competitive economic development incentives to spur newbusiness growth statewide

n Increased access to early childhood education for underserved students

n Maintained rigorous academic standards for Michigan students andlaunched new efforts to boost K–12 achievement

n Adopted outcome-based performance metrics in funding Michigan’scolleges and universities

n Make public employee health care benefits comparable with the privatesector to ensure long-term sustainability

n Established the legal framework and physical infrastructure needed toensure Michigan remains the national leader in mobility and advancedvehicle technologies

4

4

4

4

4

4

4

4

4

4

4

4

Business Leaders for Michigan Michigan’s Road to Top Ten

28

Page 31: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

10 YEARS LEADING MICHIGAN TO THE TOP TEN

Find out where Michigan stands on all 50+ statisticalindicators, as well as which way we’ve trended over

time at www.MichigansRoadtoTopTen.com.

Page 32: Measuring Performance. Taking Action.€¦ · Measuring Performance. Taking Action. Business Leaders for Michigan Michigan’s Road to Top Ten About Business Leaders for Michigan

10 YEARS LEADING MICHIGAN TO THE TOP TEN

www.MichigansRoadToTopTen.com