DETROIT – Governor Rick Snyder hailed the state’s vastly improved business tax climate, according to the Tax Foundation, and urged Detroit-area business executives to keep charging ahead and not to be lulled into complacency as the economy recovers.

Mr. Snyder, speaking to the Detroit Economic Club, announced that the Tax Foundation, a closely watched index comparing the states’ tax climates, had moved Michigan from ranking 49th in its business tax climate index all the way up to seventh. Snyder called it a “huge” development and also noted the state had moved up in overall tax climate from 18th to 12th.

“It’s just a preliminary report, but I view it as very positive,” he said noting that as other states make changes Michigan’s ranking could change when the formal ranking comes out in the summer. “It shows Michigan has a good climate.”

The Tax Foundation a year ago had estimated Michigan’s corporate income tax climate would improve to 22nd if Snyder’s then proposed changes were enacted. The foundation attributed the revision to further refinements in the plan as it became law.

And the foundation noted that its rank does not include the sweeping changes made to Michigan’s personal income tax because most of those will not take effect until 2013.

In his remarks, Snyder thanked the area’s auto industry for its improved situation. But he also urged everyone to avoid the same complacency that ruined previous recoveries.

“Many of us have been to this movie before. Just coming back is not good enough. We can’t take this for granted. We should not come back the way we’re used to coming back,” he said. “It is now time to work just as hard or harder and accelerate our ability to reinvent ourselves now while we have the attitude and resources to do it.”

Snyder also appeared pleased with the progress Detroit Mayor Dave Bing is making to achieve concessions from the city’s employee unions to avert a cash crisis and possible state-appointed emergency manager.

“We have much to be done, but in partnership, we’re going to make this all work,” he said in thanking Bing.

After his speech, Snyder said of Bing: “Mayor Bing’s working very diligently. He’s working hard, and I appreciate that.”

Snyder also was asked about criticism that he oversold an increase in funding to K-12 education. He has billed it as a 1 percent increase, but depending on how the numbers are analyzed, it could be anywhere from a 1.3 percent increase to a 0.9 percent cut.

“I stick by our numbers. We’re very clear in terms of saying there’s an increase in overall funding compared to appropriations from year to year, 1 percent total,” he said. “We are providing more resources for education. The main thing is we get better results. That’s why we want to partner with the educational community on looking at student growth and best practice.”

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