LANSING – State budget cuts in a variety of key areas have cut into the state’s ability to attract new jobs, a report released Monday by the Michigan Economic Center said. The report, Michigan Dream at Risk, highlighted cuts to education, transportation, environmental programs and local revenue sharing, and the effects of those cuts on the state’s economic recovery.
“Yes, the ‘Pure Michigan’ advertising campaign shows us the ‘ideal’ Michigan, the one that native Michiganders all tasted growing up,” the report by John Austin, director of the center and president of the State Board of Education, said. “The problem with these themes and images is they aren’t as true as they used to be, or as they need to be. The truth is we are a diminished state. We no longer have the highest wages and incomes, and we are no longer a leader in the categories – the very attributes – that once made us great, such as entrepreneurship, education, infrastructure, conservation, arts and culture.”
Among the cuts highlighted in the report, all since 2004, are 6 percent for environmental programs, 15 percent in transportation funding, 16 percent in K-12 education, 29 percent in higher education and 31 percent in revenue sharing.
The report also noted that Michigan has fallen to 37th from 19th in personal income over about the same period.
Related to those cuts, the report noted that truckers rated Michigan roads second worst in the nation, beach closures are up 2 percent in the last five years and 12 percent of K-12 students do not have access to arts education.
“A combination of continued tax cuts, revenue losses from a weak economy, and an inability or unwillingness to raise much in the way of new revenues, continue to combine to curb investment in the pillars that support Michigan’s economy. A big reason for this is the continued belief among many decision makers that, despite the clear sentiments of Michigan’s citizens to the contrary, low taxes trump public investments as a winning economic strategy,” the report said.
The report was based in part on focus groups and surveys that showed residents want to see additional spending on those key areas.
“When asked to name state priorities – those that are the most urgent and must be dealt with right now if we are to see a thriving economy – Michiganders placed these at the top of their list: quality education, public safety and fighting crime, and protecting the Great Lakes and other natural resources,” the report said. “Michigan folks also make a clear connection between doing better by these important assets, and creating the conditions that lead to job creation.”
And the report said 64 percent of those surveyed as part of the process said increasing spending in those areas would improve the economy.
The recently adopted budget for 2014-15 makes some progress but still leaves some key areas unaddressed, the report said.
“The state budget just completed for next year makes some beginning steps on higher education, but totally punts on desperately needed road funding!” the report said. “We still have miles to go to rebuild Michigan after years of neglect.”
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