In this week’s radio address, Governor Granholm said that on the eve of National Consumer Protection Week (March 7-13), the state is seeking to protect consumers with debt problems from ending up in even more precarious financial situations.

Hello, this is Governor Jennifer Granholm.

You see and hear the commercials on TV and radio. Soothing voices say, “We know it’s tough out there.” “Get out of debt now.” “Debt relief is just a phone call away.” These are all pitches from debt-settlement companies claiming they can get you out of a financial hole. The number of these companies has been multiplying because of skyrocketing consumer debt.

But on the eve of National Consumer Protection Week, you need to know that there’s a big difference between unregulated companies claiming they can settle consumer debt, and state-licensed companies that offer debt counseling and management programs. Warning consumers about the bad guys and making sure there are safe alternatives to resolving consumer debt is part of our continuing efforts to protect consumers and their pocketbooks.

Unregulated debt-settlement companies usually charge exorbitant up-front fees. They hold the consumer’s monthly payments in an escrow account, and the company then attempts to negotiate payoffs with creditors.

Debt-settlement companies will advise consumers to stop paying their creditors. But by avoiding creditors, the consumers’ credit scores will drop dramatically while interest on their debt and late fees keep going up. A number of unregulated debt-settlement companies are simply scams. They disappear after consumers pay them thousands of dollars in up-front fees.

If you need help getting out of credit card debt, there are safe alternatives to unregulated debt-settlement companies. Consumers may find assistance at their banks or credit unions. And there are debt-management companies that must be licensed by the state Office of Financial and Insurance Regulation.

These companies are required to employ qualified debt counselors and offer detailed budgeting and debt and credit counseling assistance. And they employ more than 700 qualified counselors who understand Michigan law regarding debt.

There are a number of ways you can get a list of licensed debt-management firms in Michigan. You can find the information on the Web at www.michigan.gov/ofir. Or simply call toll-free 877-999-6442.

Next week we’ll be observing National Consumer Protection Week in Michigan. The Federal Trade Commission has organized a coalition of groups to provide consumer tips on a wide range of topics, including debt settlement. You can find the tips at www.consumer.gov/ncpw. Here in Michigan, the Office of Financial and Insurance Regulation offers a host of tips for consumers as well.

If you have a problem with debt, educate yourself about the debt-relief options available to you. And beware of debt-relief scams. Consider contacting a firm that is regulated by the state instead. You’ll be glad you did.

Thank you for listening.

For the second year in a row, Michigan was third in the nation for major corporate expansions.

Governor Jennifer M. Granholm today announced Site Selection magazine has named Michigan the No. 3 state in the nation for major new corporate facilities and expansions in 2009.

“We just witnessed a thrilling global competition where many times the difference between winning a gold or bronze medal was a mere fraction of a second,” Granholm said. “The same holds true for Michigan in this important 50-state contest. We take pride in winning the bronze, but won’t rest until we win the gold. We will continue to push our go anywhere, do anything, aggressive economic development and diversification plan to accomplish that goal.”

Site Selection, a global business publication, verified 371 projects that met capital investment, job-creation or size standards, up from 296 for 2008, as part of its annual Governor’s Cup ranking. This is the second year in a row that Michigan has finished in the top three. This year, Michigan was 10 projects back of first-place Ohio and three back of second-place Texas. Pennsylvania finished fourth with 333 projects. Rounding out the top 10 were Tennessee, New York, North Carolina, Illinois, Virginia and Indiana.

Major new corporate projects for Michigan in 2009 included: advanced energy storage and solar firms like Xtreme Power and Clairvoyant Energy on the site of the former Ford Wixom assembly plant; advanced-battery development and manufacturing firms A123 Systems (Ann Arbor), Johnson Controls-Saft Advanced Power Solutions (Holland), and Dow Kokam (Midland); and major expansions by General Motors and Ford for electric and hybrid vehicle production here.

Site Selection also recognized Detroit-Warren-Livonia as the nation’s No. 4 metro area with a population of one million or more for new and expanded corporate facilities. Among metro areas with a population of between 200,000 and one million, Grand Rapids-Wyoming tied for third; Holland-Grand Haven was fifth; and Ann Arbor and Lansing-East Lansing tied for sixth.

“This yearly analysis is seen as a standard of performance by corporate real estate and site selection professionals and as such, demonstrates that Michigan holds a strong and enviable position in the face of economic distress,” Michigan Economic Development Corporation President and CEO Greg Main said. “These high rankings reinforce that Michigan is a top-tier location for growing companies because of our aggressive initiatives, strong business climate and hard-working and talented workforce.”

Site Selection’s annual Governor’s Cup competition recognizes the states with the most new or expanded private-sector capital projects as tracked by publisher Conway Data Inc.’s new plant database. Facility projects counted in the Governor’s Cup, Top Metros and Top Micropolitan rankings meet one or more of these criteria: capital investment of $1 million or more, creation of 50 or more new jobs, or new floor space of at least 20,000 square feet.

Governor Granholm sits down with WOOD TV’s Rick Albin to discuss this year’s budget proposals.

In this week’s radio address, Governor Granholm takes a look at the how the announcement that Dow is expanding their efforts in renewable energy is a great example of how our the state is working in partnership with business to diversify our economy.

Hello, this is Governor Jennifer Granholm.

This was a great week for Michigan and the Dow Chemical Company.

Dow is a Michigan company headquartered in Midland, and it announced a combined investment of almost $1.3 billion in three clean-energy projects that’ll create thousands of new jobs in our state – in wind, in solar and in batteries. And these three projects came to fruition through Dow and the state of Michigan working together to achieve our mutual goals of diversification of the economy and job creation.

First, Dow announced that it will manufacture its new Powerhouse solar shingle in Midland. This is a revolutionary product. It’s a solar panel that looks like a shingle. The Powerhouse solar shingle will crate 1,275 new jobs at Dow, with the potential for another 425, plus an estimated 4,400 spin-off jobs.

Dow’s announcement that it would produce its Powerhouse shingle in Midland was the culmination of 18 months of collaboration between the state and Dow to help the company diversify into clean energy. Dow has facilities in 23 states and 51 countries and really could have chosen any one of them to manufacture this exciting new product. But by state government partnering with Dow, the Powerhouse solar shingle is going to be made right here in Michigan.

The second Dow project involves advanced-battery production. This week, a state advanced-battery tax credit was awarded to a Dow joint venture – Dow Kokam – to support the manufacture of cells and batteries for electric and hybrid vehicles. About $670 million has been invested in Dow Kokam’s Midland facility. And up to 800 new jobs will be created – Michigan jobs for Michigan workers.

The third piece of good news this week was that Dow is being designated as the state’s seventh Center of Energy Excellence.

Michigan’s Centers of Energy Excellence, with the assistance of state grants, enable innovative companies like Dow to partner with our world-class universities and research centers to accelerate the commercialization, the selling of clean-energy technologies.

Dow’s Center of Energy Excellence will focus on developing low-cost carbon fiber materials for products like advanced wind turbine blades. The challenge with wind turbine blades is making them lighter and stronger. This is an opportunity for Dow to find a solution that can be used throughout the wind-energy industry.

The three Dow clean-energy projects announced this week – all supported with targeted state incentives designed to diversify Michigan’s economy – will create up to 2,500 new jobs at Dow and an estimated 4,400 spin-off jobs. Through partnerships like the one between Dow and state government, we are helping transform Michigan into the nation’s center for clean-energy manufacturing and create thousands of jobs for Michigan workers.

Thank you for listening.

For more on how Michigan is making significant strides in the new “green” economy, check out Governor Granholm’s op-ed piece for the Huffington Post.

This just in from the Governor’s Office:

LANSING – Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping 10 companies grow in Michigan and backing a brownfield redevelopment project that will enable a company to expand. Combined, the 11 projects are expected to create 17,321 new jobs (5,749 direct and 11,572 indirect) and generate over $804 million in new investment in the state.

The projects include a new research and development facility in Northville Township that will supply materials for lithium-ion battery cells, the re-launch of a facility in Cadillac that manufactures boats, and the expansion in Perry Township of a high-tech firm that provides automotive engineering and test development services.

“Companies are choosing to invest and grow in Michigan because we are a great state in which to do business,” Granholm said. “From solar shingles and advanced batteries to boats and scrap-tire recycling, we are creating a diversified economy where firms across a wide spectrum of industries are finding success and growing new jobs.”

The Michigan Economic Growth Authority (MEGA) board today approved incentives to win the following projects for Michigan over competing states and countries:

• Advanced Integrated Tooling Solutions LLC – The new-to-Michigan subsidiary of Advanced Integration Technology Inc. is a global supplier of fabrication, installation and maintenance of fully integrated plant floor systems. The company plans to invest $13.3 million to manufacture equipment for commercial, retail and military aircraft in Chesterfield Township. The project is expected to create 1,435 new jobs, including 275 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,160 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over eight years to encourage the company to expand in Michigan over competing sites in Ohio, Texas and Pennsylvania. Chesterfield Township is considering an abatement in support of the project.

• ALTe LLC – The automotive supplier engaged in the engineering, assembly and integration of battery powertrain systems plans to invest $51.3 million to open an assembly facility in Auburn Hills to retrofit existing fleet and other high-mileage vehicles. The project is expected to create 1,147 new jobs, including 305 directly by the company. The MEDC estimates increased economic activity created by the project will create an additional 842 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $8.4 million over seven years to help convince the company to expand in Michigan over competing sites in North Carolina, South Carolina, Illinois and Ohio. The city of Auburn Hills has approved a four-year abatement valued at $242,500 in support of the project.

• CIBER Inc. – The provider of IT outsourcing and consultancy services to clients in government, finance and manufacturing plans to invest $8 million to establish a U.S. development center in Southfield to provide a comprehensive range of services, including IT infrastructure, operations, application management and support. The project is expected to create 1,394 new jobs, including 700 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 694 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $10.1 million over seven years to encourage the company to expand in Michigan over a competing site in Florida. The city of Southfield has approved an abatement valued at $1.2 million in support of the project.

• Cobalt Holdings LLC – The new-to-Michigan recycler and processor of scrap tires plans to invest $6.1 million to expand and consolidate in Sturgis. The project is expected to create 187 new jobs, including 100 directly by the company, over five years. The MEDC estimates the increased economic activity created by the project will create an additional 87 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $353,685 over five years to encourage the company to expand in Michigan over a competing site in Indiana. The city of Sturgis is considering an abatement valued at $169,000 over 12 years in support of the project.

• The Dow Chemical Company – The MEGA board approved a new jobs creation state tax credit valued at $61.3 million over 15 years for Dow projects, which include the full-scale production facility in Midland for the company’s DOW™POWERHOUSE™ Solar Shingle, subject to finalizing local, state and federal funding. The solar project is expected to generate $249 million in private investment and create 6,100 new jobs in the value chain, including 1,275 direct Dow jobs. Additional projects over the life of the tax credit could create up to an additional 425 jobs and $351 million in additional investment.

• Dow Kokam – The joint venture between Dow Chemical Company and Townsend Ventures was formed to manufacture cells and batteries for electric and hybrid vehicles. As previously announced, the company plans to invest $342 million as part of the second phase of a project to build a large-scale manufacturing facility in Midland. The project will create 480 total jobs. Based on the MEDC’s recommendation, the MEGA board today approved an advanced- battery tax credit valued at $42 million to support the company’s battery-cell manufacturing operations. The city of Midland is considering local incentives in support of the project. The Michigan Department of Energy will support the project with up to $300,000 in training funds.

• Four Winns LLC – The manufacturer of recreational fiberglass boats has defined a project to invest up to $63 million over the next eight years, an average of $7.9 million per year, to expand in Cadillac to support increased production of Four Winns, Wellcraft and Glastron boat brands currently produced in Cadillac and Little Falls, Minnesota. Assuming a return to peak manufacturing levels, the project has the potential to create 5,255 total jobs, including up to 2,320 directly by the company, between now and 2018. The MEDC estimates the increased economic activity created by the project could create an additional 2,935 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $27.1 million over eight years to encourage the company to expand in Michigan over competing sites in Minnesota and Tennessee. The city of Cadillac is considering an abatement in support of the project.

• Katcon USA Inc. – The global supplier of catalytic converters, exhaust modules and complete exhaust systems plans to invest $3.7 million to create a new technical center in Auburn Hills. The project will create 74 total jobs, including 35 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 39 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $534,633 over seven years to encourage the company to expand in Michigan over a competing site in Mexico. The city of Auburn Hills is considering an abatement to support the project.

• Sakor Technologies – The designer and builder of advanced dynamometer systems for testing engines, power-trains, and electrical power equipment plans to invest $1.1 million to expand to a new facility in Perry Township. The project will create 46 total jobs, including 25 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 21 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $363,975 over seven years to encourage the company to expand in Michigan over a competing site in Colorado. The township of Perry is considering a 12-year abatement valued at approximately $49,472 to support the project.

• TSC Michigan Inc. – The new-to-Michigan subsidiary of Techno SemiChem Corp. plans to invest $31.1 million to locate its North American headquarters in Northville to conduct research and development and pilot production efforts to produce electrolyte for advanced lithium ion battery cells. The project will create 1,673 total jobs, including 279 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 1,394 indirect jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over seven years to encourage the company to expand in Michigan over a competing site in South Korea. The township of Northville is considering an abatement to support the project.

• Charter Township of Brownstown – State and local tax capture valued at $58,500 will support the redevelopment of a vacant parcel adjacent to National Wine and Spirits Inc. (NWS) to expand the company’s warehousing and office operations. As part of the project, NWS will demolish an existing building on the site and construct a new building. The expansion will also require soil and underground storage tank removal and remediation. The project will generate $26.5 million in new capital investment and create up to 10 new jobs.

“These job-creating company expansions and brownfield redevelopment projects are the result of successful collaboration and teamwork with our economic development partners around the state to bring these projects to Michigan against some very intense national and international competition,” MEDC President and CEO Greg Main said.

For more information on the MEDC’s initiatives and programs, visit the Web site at www.MichiganAdvantage.org. For updates on MEDC programs, events, success stories and more, follow us on Twitter (www.twitter.com/MIAdvantage), become a fan on Facebook (www.Facebook.com), read our blog at (http://blog.michiganadvantage.org) and subscribe to the MEDC YouTube channel (www.youtube.com/user/michiganupperhand).

Want to start a small business? Financing and training is available to help you get it off the ground. On Feb. 4th, Governor Granholm announced that FastTrac NewVenture, a program for entrepreneurs to learn how to successfully launch and grow a small business, would be available statewide thanks to a partnership with Michigan Small Business and Technology Development Centers, Michigan Credit Union League, and the Michigan Economic Development Corporation.

FastTrac NewVenture, a program of the Ewing Marion Kauffman Foundation, offers real-world guidance to people who want to become entrepreneurs. During the ten-week course, entrepreneurs evaluate the feasibility of their business concept, make contacts, and learn how to start profitable small businesses, attract new clients or customers, retain employees, and improve service and product offerings.

The Michigan Economic Development Corporation has pledged a $200,000 investment to expand the program in 2010, making it available statewide. This practical hands-on business development program builds on the model supported by the New Economy Initiative in southeast Michigan and the Grand Rapids Community Foundation in Kent County. Together, 1,000 prospective entrepreneurs will hone the skills to grow a successful, job-creating business.

The Michigan Credit Union League has committed an initial $43 million for small-business loans for this partnership. Yesterday the Governor was in Grand Rapids to attend a roundtable and talk with some of the entrepreneurs who have already started their own business.

Lalo Salcedo has high hopes for the promotion and event business he started. It’s called Blowout Entertainment. “I really believe in thinking Oprah, thinking the empire, thinking big,” the Holland man said Wednesday.

Salcedo was one of the entrepeneurs to benefit from a program called FastTrac NewVenture that Governor Granholm highlighted in an appearance this afternoon at Grand Valley State University. It’s a ten week “boot camp” where people can learn what it takes to start a small business, including writing a business plan, and financing.

Salcedo said the program helped motivate him. “Just being around other entrepreneurs who are driven – positivity is contagious. You’re around other people that have a passion – you get hopeful and you know you’re gonna make things happen.”

If you want to learn more or register for the program, please contact the Michigan Small Business and Technology Development Center at 616-331-7480 or visit www.misbtdc.org on the web.

In this week’s radio address, Governor Granholm outlines a couple of the reforms that were announced this week that will cut costs and help streamline state government.

Hello, this is Governor Jennifer Granholm.

My 2010 agenda for Michigan focuses on continued economic diversification and job creation. That agenda also focuses on passing a balanced budget that further cuts state spending while protecting education. And finally, we are focused as well on transforming Michigan government through 29 specific reforms. We acted on two of those government reforms this week.

First, we’ve created, effective October 1, an independent Office of Health Services Inspector General. This new office will investigate fraud, waste and abuse in health services programs such as Medicaid.

State government has already been successful in fighting fraud and cutting waste in health services programs. But the current system would benefit from consolidating these responsibilities into one office and increasing focus on specific auditing and fraud prevention goals.

The inspector general will keep me and the director of the Department of Community Health apprised of its anti-fraud efforts. It will also advise us on how to prevent and better detect fraud, waste and abuse in our health services programs.

Another reform we implemented this week clears the way for local governments and other public entities, like school districts and universities, to participate in the state of Michigan health-care benefit plans offered to state employees.

We’ve recently negotiated a new state health-care benefit plan with a number of state employee groups. And this plan reduces the state’s cost of providing health-care coverage to every newly hired state employee by 21.3 percent.

By offering other public employers and their employees the option of participating in this less expensive state health-care benefit plan, we’re providing them an opportunity to reduce their health costs which will also benefit all Michigan taxpayers.

All the state’s health-care benefit plans will be open to participation, including the state’s PPO and HMO plans and prescription drug, dental and vision programs. One of the purposes of opening up this less expensive health-care plan is to take advantage of pooling: the more participants there are, the more we can lower the costs.

More details on my 29 government reforms can be found on the Web at www.michigan.gov/gov in the section titled “Transforming Michigan Government.” Some of the reforms can be implemented administratively, like the two this week. But others require working with employee groups or approval by the Legislature and Michigan voters.

We’ll continue moving forward on reforming state government. These reforms, together with my proposed state budget for the 2011 fiscal year, will help Michigan transition to a new 21st century economy, 21st century state government, and 21st century tax structure.

Thank you for listening.

Announced today:

Governor Jennifer M. Granholm today issued Executive Order 2010-1 to further fight fraud, waste and abuse in state health services programs by establishing the Office of Health Services Inspector General. The office will be an independent and autonomous entity within the Department of Community Health and is one of the 29 government reforms outlined by the governor in January to transform Michigan government.

The Office of Health Services Inspector General will work to prevent, detect and investigate fraud, waste and abuse in the state’s Medicaid, mental health, MIChild and Children’s Special Health Care Services programs. The health services inspector general will be appointed by the governor.

“Although the Department of Community Health has been successful in fighting fraud, waste and abuse, these responsibilities now will be consolidated in the Office of Health Services Inspector General along with an increased focus on specific auditing and fraud prevention goals,” Granholm said. “The inspector general will be an independent watchdog whose top priority will be safeguarding taxpayer dollars.”

Duties of the Office of Health Services Inspector General include:

• soliciting, receiving and investigating complaints related to fraud, waste and abuse in health services programs;

• assuming the Department of Community Health’s duties under federal law with respect to fraud, waste and abuse for the administration of health services programs in the state;

• seeking out fraudulent billing practices of providers and developing techniques and procedures for detecting suspect billing patterns; and

• recommending to the governor and the director of the Department of Community Health policies that will prevent and better detect fraud, waste and abuse in health services programs.

Personnel within the Department of Community Health currently assigned to combat fraud, waste and abuse in health services programs will be transferred to the new office.

Pending legislative review, Executive Order 2010-1 will take effect October 1, 2010.

In this week’s radio address, Governor Granholm reviews the budget that was presented to the Legislature this week. The FY 2011 budget recommendation cuts spending and modernizes the state’s tax system, while still investing in job creation and education.

Hello, this is Governor Jennifer Granholm.

Two weeks ago, I began outlining my 2010 agenda for Michigan. First, I presented a plan to transform Michigan government that lists 29 ways we should reduce costs and improve efficiency.

My State of the State address was the second part of my agenda: continuing to transition to a 21st century economy through essential steps we must continue taking in economic diversification, job creation and education.

This week, I presented the third and final piece: my state budget recommendation for the 2011 fiscal year which begins on October 1.

This budget cuts state spending while still investing in job creation and education. It modernizes the state’s tax system to stabilize funding for schools and to create jobs. And it reforms Michigan’s budget process.

No governor in Michigan history has cut more state spending than I have, and my budget for the upcoming fiscal year continues to reduce spending. But we cannot create an environment more conducive for jobs and economic growth by only cutting spending. We have to invest in the things that are most critical to attracting and keeping business in Michigan.

One of the most important needs of a 21st century business is having a 21st century talent pool. And that means education. Education directly correlates to job creation. Therefore, despite declining state revenues, my budget recommends maintaining per pupil funding for K-12 education at current levels.

My budget also addresses the problem of declining revenue for the School Aid Fund. The state sales tax is the largest source of revenue for that fund. Michigan’s sales tax is primarily levied on goods, but today more than 66 percent of consumer spending is on services.

So I’m recommending that the existing sales and use tax rates be lowered from 6 percent to 5.5 percent while broadening the tax base to include other services. The additional revenue would go directly to the School Aid Fund.

Job creation is also a priority. To help all Michigan businesses to invest and create jobs, I’m proposing cutting the Michigan Business Tax surcharge in half next year and completely phasing it out in the following year. These tax changes, when fully implemented, will be revenue neutral.

More details of my budget can be found on the state of Michigan Web site at www.michigan.gov/budget.

I’ve requested that the Legislature hand the budget back to me by July 1. Schools, universities and local governments whose fiscal year begins July 1 need to know what the state budget is so they can plan accordingly. So if a budget isn’t returned to me by July 1, then my pay and the pay of all legislators should be docked every day thereafter until the budget is done.

Thank you for listening.

You can also read more about Governor Granholm’s budget proposal here.

This just in from the Governor’s Office:

LANSING – Governor Jennifer M. Granholm and State Budget Director Robert L. Emerson today presented the 2011 executive budget recommendation that invests in our state’s most important priorities: creating jobs, educating children, and protecting citizens while building on the steps she has taken over the past seven years to address the fiscal challenges caused by the national recession and struggles in the auto industry. The budget was presented to a joint meeting of the House and Senate Appropriations committees at the State Capitol.

“This budget reflects the critical changes we must make in state government: cut spending, attack the state’s structural deficit, reform government, and restructure our tax system,” said Granholm. “These changes are essential if we are to maintain our critical investments in job-creation and education and provide the services citizens need during this time of economic transition.”

The fiscal year 2011 budget recommendation continues the governor’s commitment to reforming state and local government to make it less costly, more flexible, and better able to serve the needs of citizens. The budget includes savings from reforms the governor outlined in January, including changes to the state employee retirement system that are expected to result in the retirement of more than 6,000 employees, a lower-cost health-care plan for new state employees, and sentencing reforms that will further reduce the prison population. In addition, the governor is proposing spending cuts that impact every state department. Altogether, the budget recommends more than $566 million in general fund spending reductions.

The overall budget totals $47.1 billion and includes $7.9 billion in general fund spending, $11 billion from the School Aid Fund and recognizes $20.1 billion in federal revenues. Highlights of the governor’s budget include:

- Funding for public schools, early childhood education, and community colleges and universities are all maintained at current levels.

- The Michigan Promise scholarship is restored as a $4,000 tax credit available to any student who completes a degree and works for one year in Michigan.

- The 21st Century Jobs Fund is maintained at $75 million.

- Additional federal funding that will allow for the expansion of No Worker Left Behind, the Michigan Nursing Corps, and the JET Plus programs, which provide job-training.

- Additional federal funding to provide for the increasing number of citizens eligible for the food assistance program.

- $39 million for additional improvements in the child welfare system.

- A permanent funding source for tourism promotion, including the successful Pure Michigan advertising campaign, through a rental car fee.

- Revenue-sharing payments to cities, villages and townships are maintained at fiscal year 2010 levels and additional funding to restore county revenue-sharing payments to the 38 eligible counties.

- Funding is provided to maintain the current level of Michigan State Police troopers. In addition, a fiscal year 2010 supplemental is recommended to provide funding to reduce the forensic case backlogs at the state crime laboratories.

“Spending cuts alone cannot create the economic growth and jobs that Michigan needs,” said Granholm. “We must continue to invest in things most critical to attracting business investment, and my budget makes those important investments.”

The governor’s budget recommendation proposes a restructuring of the state’s tax system to fuel job-creation and economic diversification and prevent deep cuts for public schools until savings from long-term reforms are in place. The proposal, which modernizes the tax structure to more adequately align with a 21st century economy, lowers the existing sales and use tax rates from 6 percent to 5.5 percent, expands the base of the sales and use taxes to include other services, eliminates the Michigan Business Tax (MBT) surcharge over two years, and reduces the gross receipts portion of the MBT over two years. Together, these changes provide $554 million in additional funding to the School Aid Fund in fiscal year 2011, but are revenue neutral by the end of the 2013 fiscal year.

“These tax changes – lowering the sales tax rate, spreading the rate to services, and eliminating the business surcharge – have been recommended by job providers across Michigan and suggested by almost every economist and expert who has reviewed our tax structure,” said Granholm. Let’s take them up on it.”

When combined, the spending reductions, structural reforms, and tax restructuring eliminate a projected $1.5 billion budget shortfall for the year that begins October 1, 2010.

In addition to outlining a balanced budget, which is required by state constitution, Governor Granholm called on the Legislature to pass the budget by July 1, 2010, to allow cities, schools, universities and other organizations to move forward with their spending plans, which are dependent on state revenues.

For more on the budget, visit: http://www.michigan.gov/budget.