New web models help fill jobs

Here's a little-publicized aspect of the nation's fragile economic recovery: unemployment rates would be materially lower if there were more efficient means of helping employers find qualified workers.

Clearly, much of the employee recruiting process has moved online. And just as clearly, there are plentiful online job boards and proprietary job posting systems available for use. But while pundits would lead us to believe there simply aren't enough jobs, an important underlying aspect of unemployment is the difficulty that employers and skilled job candidates have finding each other amid the online clutter. The sheer number of displaced workers seeking employment suggests the need for new models of online matchmaking.

One of them might be emerging with hiredMYway.com, the an online recruitment web site which recently announced the launch of more than $1 million in bonus payments for job seekers who land a position using the system. The bonus program pays signing and referral bonuses of up to $4,000 every time someone is hired through the site.

A portfolio company of the Detroit Venture Partners, hiredMYway.com differentiates itself from other job boards in that job seekers can dip their resumes into a smaller pool of applicants, with promises that it will be viewed. Additionally, it eliminates the up-front cost employers traditionally pay to post their jobs online, because companies only pay if they make a hire. Every job on the web site offers a hiring and referral bonus.

The new bonus program increases exposure to jobs posted on the site and might well promote connectivity between job seekers and employers. However, efforts to harness the reach of social media could emerge as an equally powerful feature. Individuals who sign up as hiredMYway.com referrers share jobs with their friends and colleagues across the "big three" social media platforms Facebook, LinkedIn and Twitter. If someone they refer gets hired, they receive the bonus associated with the position and so does the person they referred. Bonuses are determined based on the amount the company is willing to invest to find the right candidate.

“First hiredMYway.com turned the online recruitment model upside down. Now, we are introducing a bonus program offering more than $1 million in payments,” said Matt Mosher (left), co-founder and CEO of hiredMYway.com. “hiredMYway.com allows companies to connect with serious, qualified candidates through our diverse network of referrers and job seekers. Driven by results, companies only pay for the positions they post if they find a candidate through our website.”

Positions posted on hiredMYway.com are geared for maximum exposure, to help companies fill their niche positions more quickly. Candidates who are serious about positions posted on hiredMYway.com can choose to pay $2 to submit their resume into a smaller applicant pool with the guarantee their resume will be viewed. If the candidate’s resume is not viewed within 15 days of applying for the job, the $2 fee will be returned to the job seeker’s account. Candidates may apply for positions for free, but will not be eligible for the signing bonus.

Companies throughout Michigan have already posted jobs on hiredMYway.com. They include International Bancard, Magna, Daifuku Webb, State Farm Insurance and Faith Rehab Solutions.

“Current online job boards are ineffective. Companies pay the same amount for a posting, regardless of the position, and we receive thousands of applications with no way to identify the most qualified candidates,” said Erin Spitzer, Executive Director of Human Resources for Daifuku Webb. “By allowing us to set the value for our postings on hiredMYway.com, we can find and identify the best candidates more easily without any upfront risk.”

hiredMYway.com is one of the first portfolio companies of the Detroit Venture Partners, backed by regional leaders Josh Linkner, Dan Gilbert and Brian Hermelin.

“Detroit Venture Partners is looking to invest in game-changing companies like hiredMYway.com that have clearly identified a problem with the status quo and will stop at nothing to develop and implement a creative solution to solve it,” said Linkner, who is also the founder and chairman of ePrize. “hiredMYway.com is the future of online job boards and the Detroit Venture Partners is excited to be a part of this innovative, Detroit-based company.”

MI Perspective: HR managers know the labor market can turn -- is turning -- very quickly. Practitioners I speak to daily say recruiting and retention is a rising priority at their companies, but they worry about existing mechanisms for finding skilled workers. The need is particularly acute in STEM areas (jobs requiring backgrounds in science, technology, engineering and/or mathematics), which are skills many displaced auto-industry workers in Michigan possess. Here's something HR recruiters also know: good people travel in packs. That's why harnessing the reach of social media is such a promising application for filling jobs, and why a venture such as hiredMYway.com might find considerable success.

GM to put $328M in Flint Assembly

General Motors will invest $328 million to prepare its plant in Flint to build the next generation of Chevrolet and GMC full-size pickup trucks, creating or retaining 150 jobs.

The plant, which currently has 2,047 employees, builds the hot-selling heavy-duty versions of the Chevrolet Silverado and GMC Sierra. Sales of the new-for-2011 trucks have led to an additional 2.4 percentage points of market share (through May), bringing GM’s total HD share to 36%.

“This investment will allow us to continue building award-winning full-size pickups that offer better fuel efficiency than ever before without sacrificing features and functionality,” said Cathy Clegg, GM vice president of Labor Relations. “We remain committed to providing customers the utility and capability of our world-class full-size pickups.”

GM’s retail share of the full-size pickup market has grown to 40.4% through May compared with 37.7 percent in the first five months of 2010.

“Truck sales play an important role in the success of General Motors,” said Joe Ashton, UAW-GM Vice President. “We are confident that the next-generation of trucks will continue to be an important source of revenue for the company and jobs for our members. Our members are ready to use their abundant talents to build high-quality trucks that deliver exceptional value to our customers.”

The investment announced Monday is part of $2 billion GM is spending that will create or retain about 4,000 jobs in 17 facilities in eight states over the next 18 months.

Michigan has been a major recipient in the current round of investments, designated for $744 million. The Flint Engine, Bay City Powertrain, Detroit-Hamtramck Assembly, Lansing Grand River Assembly, Saginaw Powertrain and GM Components Holdings in Wyoming,all were designated for manufacturing investment along with a $130 million Data Center on its Warren, MI. Technical Center campus.

$11 million Invested in Saginaw County

In the 1st quarter of 2011, Saginaw Future (SF) assisted eight companies that invested nearly $11 million, creating and retaining 927 jobs. Also, seven regional companies won 23 government contracts valued at more than $75 million.

Following is a run down on individual developments and investments:

Morley Companies Inc. continues to expand its data collection and research services, along with customer technical and support services for Fortune 100 clients. Due to additional business contracts, Morley has proposed the addition of 911 jobs (150 to 200 per year until 2015). Morley also expects to invest over $7 million in real and personal property improvements in Saginaw Charter Township. SF assisted the company through the State process for its MEGA application. The Michigan Economic Development Corporation approved a MEGA credit in support of the expansion.

Downtown Area Development LLC plans to increase the size of its new medical office building by 6,200 sq. ft. and will invest an additional $1.6 million. The building will be located on the 900 block of S. Washington Ave. in the City of Saginaw. Midwest Surgical Associates will be located on the first floor and the second floor will offer 11,100 sq. ft. of available medical/office space. SF helped to secure a Brownfield MBT credit for the project, which was approved by MEGA.

Kapex Manufacturing LLC is a machining and fabrication shop, which currently has a manufacturing location in southeast Michigan. Kapex contacted SF to assist in establishing a Saginaw County site, which led to a location on Christy Way in Saginaw Charter Township. The company has relocated four engineering and purchasing staff members and plans to eventually bring part of its manufacturing operations to the location. SF will continue to work with Kapex on upcoming expansion plans.

Expansions

Miller Mold Co. is a Saginaw Charter Township company that manufactures aluminum molds and dies, as well special tooling for the thermoform plastics industry. The company continues to upgrade its equipment and software programs to reduce setup, down-time, eliminate errors and increase efficiencies in order to compete with the best price possible. Miller Mold has also joined a consortium of thermoform companies in hopes of cooperatively competing for business in the industry.

ZENTX Media Group, a full service graphics provider, announced plans for the construction of a new building, which will be located adjacent to the MBS International Airport. It will house operations and production under one roof on a 10-acre site on W. Freeland Rd. Currently ZENTX has two locations – with a main office in Freeland and a custom fabrication and production site located in the City of Midland. With approximately 12,000 sq. ft. at the new location, the company will have the space and capabilities for large-scale projects and mobile interactive spaces, in addition to everyday projects. ZENTX will invest a total of $1 million and add three new positions.

Micron Precision Machining invested over $200,000 in new equipment purchases, which upgraded its inspection and milling department. The company added a new Zeiss Coordinate Measuring Machine and a Haas Vertical Machining Center. Micron Precision is located in Buena Vista Charter Township, has 27 employees and plans to add an additional two positions as a result of this project.

InCal Technologies Inc. expanded for the third time in two years. The company added over $60,000 in new equipment to its inspection and calibration department. InCal also expanded its Buena Vista Charter Township facility to accommodate the new equipment. The company added two new positions as a result of this project.

CIGNYS Corporation purchased a new paint line and forklifts for its City of Saginaw location. The equipment completes CIGNYS’ capital investment program to make the company more competitive. This was the ninth CIGNYS investment in the last four years at all of its locations, totaling nearly $2.5 million.

Also, seven regional companies won 23 government contracts valued at more than $75 million. Company names were not disclosed due to considerations for competition.

Established in 1992, Saginaw Future is a public-private alliance of local businesses, the County of Saginaw, City of Saginaw, 16 local municipalities and the Saginaw County Chamber of Commerce.
SF’s strategic partners also include education, labor and government. Since its beginning, SF has remained dedicated to fostering quality job creation through expansion of local industry and attraction of new business projects to the community.

H-P adds investment in Pontiac

Computer and printer maker Hewlett-Packard Co. will invest $4.8 million to create 250jobs in Pontiac, MI.

HP Enterprise Services already employs 1,976 people at its facility in Pontiac. The Michigan Economic Growth Authority has approved some $3.5 million in state tax credits for Hewlett-Packard over the next seven years based on how many jobs it maintains in the area.

Hewlett-Packard is based in Palo Alto. HP Enterprise Services is the former Electronic Data Systems business started in 1962 by Ross Perot. HP bought it in the summer of 2008 for $13.9 billion.

Reuters to sell A2 healthcare unit

Thomson Reuters plans to divest its Healthcare business, which employees more than 800 workers at its building on Eisenhower Parkway in Ann Arbor.

The unit, which provides data, analytics and performance benchmarking solutions and services to companies, government agencies and healthcare professionals, offers solutions to identify savings, improve outcomes, fight fraud and abuse and more efficiently manage their healthcare operations.

“Thomson Reuters has strong positions in our chosen markets and we believe we will achieve better all-in returns for our shareholders by divesting the Healthcare business and re-deploying the proceeds in our core franchises," said Thomas H. Glocer, chief executive officer of Thomson Reuters. "We have leading positions in global markets, including legal, tax and accounting, science and intellectual property, financial services and media, where we see significant opportunities for future growth and profitability. While a growing and profitable unit, our Healthcare business lacks the integration with and global scale of our other units, and our disciplined approach to capital allocation convinced us that the expected proceeds from a sale into a consolidating market could be better applied elsewhere in our portfolio,” said Glocer.

The fate of the operation's employees and facility hinge largely on the nature of the buyer. A financial or strategic purchase by, for example, a health care consulting company interested in analytics could leave the division largely in place. A purchaser interested only in individual assets might buy the division to break it down an scatter the components. Expansion, reduction, consolidation or a move for the division are all possibilities.

The Healthcare business in 2010 had revenues of approximately $450 million and an operating margin comparable to the company’s consolidated margin of 19.3%. Following adjustment for this divestiture by removing Healthcare’s results from ongoing businesses, no material impact is expected to the company’s previously announced 2011 outlook. The company expects the divestiture to close before the end of the year.

Morgan Stanley and Allen & Company are acting as financial advisors to Thomson Reuters for the proposed divestiture.

10 growing firms pick Michigan

The Michigan Economic Growth Authority Tuesday approved tax incentives for 10 companies choosing to expand or locate in Michigan, as well as two brownfield redevelopment projects. The companies estimate the projects will generate up to $602 million in new private investment, adding a projected 1,911 direct jobs. "From next-generation software development to a $280 million investment in the Upper Peninsula by a partnership of U.S. and Japanese companies, today's MEGA board action highlights Michigan's high value across a broad number of industries," said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. "These new investments underscore once more Michigan's tremendous talent and the continued growth of core sectors." The MEGA board approved incentives to win the following projects for Michigan over competing states and countries: Atomic Object LLC - The custom software designer and developer plans to invest $983,000 in its Grand Rapids location to support new growth. The company expects the project to create up to 30 direct new jobs, resulting in a state tax credit valued at $161,908 over four years. Michigan was chosen over a competing site in California. The city of Grand Rapids is considering an abatement in support of the project. http://www.atomicobject.com/ Detroit Heavy Truck Engineering LLC - The corporate headquarters of this firm, responsible for the design, engineering, sales and support of heavy trucks and related mining equipment, plans to invest $4.6 million to expand in Novi. The company expects the project to create up to 49 direct new jobs, resulting in a state tax credit valued at $234,152 over five years. Michigan was chosen over competing sites in China and Wyoming. The city of Novi paid administrative fees in support of the project.http://www.dhtellc.com/ Dialogue Marketing Inc. - The provider of customer relationship-management services plans to invest $5 million to expand its call center and customized software development operations in Troy. The company expects the projects to create up to 230 direct new jobs, resulting in a state tax credit valued at $474,012 over three years. Michigan was chosen over a competing site in Utah. The city of Troy is considering an abatement in support of the project. http://www.dialogue-marketing.com/ Health Business Solutions LLC - The full-service denied-claims resolution and performance improvement consulting firm for the health care industry plans to invest $2.6 million to open a new facility in Dearborn. The company expects the projects to create up to 206 direct new jobs, resulting in a state tax credit valued at $816,218 over five years. Michigan was chosen over competing sites in Georgia and Texas. The city of Dearborn is considering an abatement in support of the project. http://www.healthbusinesssolutions.com/ Key Plastics LLC -- The supplier of engineered plastic components to the automotive industry plans to invest $10.3 million to expand in its facilities in Howell, Farmington Hills and Cascade Township. The company expects the projects to create up to 297 direct new jobs, resulting in a state tax credit valued at $1.1 million over four years. Michigan was chosen over competing sites. The city of Howell has approved an abatement in support of the project. http://www.keyplastics.com/ Knape & Vogt Manufacturing Company -- The designer, manufacturer, and distributor of functional hardware, storage-related components and ergonomic products plans to invest $1.24 million to expand in Grand Rapids. The company expects the projects to create up to 122 direct new jobs, resulting in a state tax credit valued at $335,409 over five years. Michigan was chosen over competing sites in Illinois and Wisconsin. The city of Grand Rapids is considering an abatement in support of the project. http://www.knapeandvogt.com/ Lakeside Software Inc. - The software developer plans to invest $6.1 million to expand existing operations in Bloomfield Hills, as well as locate operations in Ann Arbor. Lakeside Software's SysTrack technology is used by enterprise customers to conduct VDI assessment and planning, manage virtualized infrastructures, aid migration to Windows 7 and manage end user experience. The company expects the projects to create up to 198 direct new jobs, resulting in a state tax credit valued at $731,244 over five years. Michigan was chosen over a competing site in California. The cities of Ann Arbor and Bloomfield Hills are in support of the project. http://www.lakesidesoftware.com/ Michigan Iron Nugget LLC -A joint venture between Cliffs Natural Resources Inc. and Kobe Steel Ltd, the company was formed to produce high iron content nuggets through a patented process. The company plans to invest $280 million in a new facility in Tilden Township (Marquette County). The company expects the project to create up to 114 direct new jobs, resulting in a state tax credit valued at $1.9 million over six years. Michigan was chosen over competing sites. Tilden Township is considering an abatement in support of the project. Multi Packaging Solutions -- A leader in print and packaging solutions for the cosmetics, consumer, entertainment, healthcare, and horticulture markets plans to invest $5.3 million to grow its pharmaceutical carton business in Holland and Allegan. The company expects the project to create up to 180 direct new jobs, resulting in a state tax credit valued at $865,119 over four years. Michigan was chosen over competing sites in Indiana, Texas, New Jersey and North Carolina. The cities of Holland and Allegan are considering an abatement in support of the project. Severstal Dearborn LLC - A state brownfield tax credit valued at $10 million, as well as state and local tax capture valued at $19.4 million will support the construction of a high-speed Continuous Annealing Line capable of producing advanced high strength steel at its facility in Dearborn. The project includes demolition, removal of debris, re-routing utility lines and asbestos removal. To date, Severstal has invested over $1.3 billion in equipment and improvements to its Dearborn facility. The project is expected to generate $280 million in new private investment and create up to 70 full-time jobs. http://www.severstalna.com/ Spartan Motors Chassis Inc. - The designer, engineer and manufacturer specialty chassis, specialty vehicles, truck bodies and aftermarket parts for the recreational vehicle (RV), emergency-response, defense, government services, delivery and service markets plans to invest $5.4 million to expand existing facilities in Charlotte. The company expects the projects to create up to 450 direct new jobs, resulting in a state tax credit valued at $8.8 million over 10 years. The city of Charlotte is considering an abatement in support of the project. http://www.spartanmotors.com/ County of Grand Traverse - The Grand Traverse County Land Bank will use state and local tax capture valued at $50,537 to prepare three blighted properties in Interlochen and Traverse City for sale. The project will include infrastructure improvements, site preparation, demolition and lead or asbestos abatement. The project will generate $450,000 in new private investment. The Michigan Economic Growth Authority (MEGA) may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company's strength of project, program guidelines and MEGA board approval, are earned over time by a company's performance in meeting specified investment and hiring requirements.

Job board improves functionality

Michigan Department of Energy, Labor & Economic Growth Acting Director Andrew S. Levin today announced a new enhancement to the Michigan Talent Bank Web site that will make it easier for job seekers to retrieve their User ID's and PIN numbers. By clicking on the "Forgot Your User ID and PIN" button, job seekers can now opt to have their information sent to them securely via text message on their cell phones. Previously, job seekers could only request the information through e-mail or by calling the Michigan Talent Bank help desk.

"The Michigan Talent Bank offers all of the resources of other national job-search Web sites without any cost to the employer or job seeker, and this new feature makes it even easier for job seekers to access the site," Bureau of Workforce Transformation Director Liza Estlund Olson said. "This award-winning Web site has become a go-to resource for employers, whether the employer is a small local business or a major international corporation."

Job seekers and employers are encouraged to use the Web site at www.michigan.gov/talentbank. In 2010, other enhancements and tools were added to the site, including:

Job seekers creating resumes can upload data from a resume previously saved as a Word, PDF, text, or HTML file when creating a new resume.

Creating and updating resumes is now quicker and easier. The new multi-page format saves data more frequently.

New style options have been added such as creating bullet points, offering job seekers more flexibility in presenting their qualifications.

Job seekers now have a choice of three different resume types: Chronological, Functional and Combination. Job seekers can switch between types at any time to tailor their resume instantly to various job openings.

Job seekers can e-mail their resumes as a PDF file, a popular request from employers. They can also conveniently save those PDF resumes to a storage device or in their e-mail for future use.

Improved employment searches more accurately match job titles, creating better job matching for both employers and job seekers.

Job seekers and employers can further refine their search by identifying employment criteria such as full-time, part-time, seasonal, or temporary.

"The Michigan Talent Bank is very easy to use for both employers and job seekers," continued Estlund Olson. "Currently, the Michigan Talent Bank has more than 38,000 posted job openings and averages 8,800 new job postings a month."

The Michigan Talent Bank has won numerous national and state technology awards since its launch in 1998. Interested job seekers and employers can join the Web site free of charge at www.michigan.gov/talentbank.

DELEG staff is available Monday through Friday from 8 a.m. to 5 p.m. to answer questions about the use of the Michigan Talent Bank by calling toll-free at 1-888-253-6855 or via e-mail at mtbhelp@michigan.gov.

Job seekers and employers who are interested in receiving personal assistance in finding jobs and workers can contact their local Michigan Works! Agency by calling 1-800-285-WORKS (9675).

Tourism flat in fourth quarter

Comerica Bank’s Michigan Tourism Index was flat in the fourth quarter of 2010, at a level of 93. The fourth quarter reading is up six points, or 7%, from the cyclical Index low of 87. The Index averaged 92 points for all of 2010, up two points from the Index average for all of 2009.

“Our Index provided mixed results in the fourth quarter, with gains in hotel occupancy and casino revenues offset by weaker passenger air traffic,” said Dana Johnson, Chief Economist at Comerica Bank. “Households and businesses are gradually become more willing to increase their discretionary spending as they sense the economy is experiencing a sustained, moderate expansion. Looking ahead, our Index should perform modestly better over the next several quarters, particularly if the state starts growing fast enough to begin generating increases in jobs.”

The Michigan Tourism Index is a quarterly summary of six equally weighted, seasonally adjusted travel, lodging and entertainment data series. These series serve as a proxy for statewide tourism activity.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

Business leaders like Snyder plan

Businesses generally seem supporting of Gov. Snyder's proposals to revamp the Michigan tax code, though it remains a gamble as to whether a lower tax structure on companies will be better for economic growth than the tax credits he intends to phase out.

Snyder proposes to eliminate the Michigan Business Tax and its accompanying array of tax credits and incentives and replace them with a new 6% corporate income tax on "C" corporations. The governor said the plan would result in a nearly $1.8 billion tax cut for Michigan businesses and a simpler, fairer and more competitive tax structure.

"Let's stop the tax credits and realize, in many cases, that the only reason they're in the tax code is because someone had more political power," Snyder said in presenting his budget. "We're eliminating all those credits. We will honor past credits, but it is time for simple, fair and efficient on the business side...It will make us among the most competitive in the country for business taxation" and will create jobs.

Snyder's budget would also eliminate tax credits for brownfield redevelopment, the Michigan Economic Growth Authority program -- a favorite stimulus tool of former Goevernor Jennifer Granholm -- alternative energy, film, renaissance zones and other areas.

Snyder's approach has won favor with groups such as Business Leaders for Michigan, the state’s business roundtable. It's a comprehensive approach to managing the state’s finances and making Michigan more competitive to create jobs.

“We support the Governor’s budget recommendation because, like the Michigan Turnaround Plan we proposed last year, it adopts multi-year budgeting, structurally balances the budget and reforms the tax system," said Doug Rothwell, President & CEO. "We urge the public and legislators to view it in its entirety and to resist picking and choosing elements of it. If taken as a whole it is good for Michigan and Michiganders.”

Business Leaders for Michigan strongly support the Governor proposing a two-year budget noting it is critical to changing the culture of fiscal planning in Michigan. “It is encouraging to see more of a long-term view of expenditures and revenues and an effort to address problems now instead of kicking them down the road,” Rothwell said.

In addition to improving budgeting practices and reducing spending, Business Leaders for Michigan applaud the Governor for addressing tax reform in his budget presentation. “Michigan’s most pressing need is jobs,” Rothwell said. “To grow jobs, we must become more competitive. Right now, Michigan’s taxes on job providers are among the highest in the nation, putting us at a disadvantage compared to other states and other countries. The Governor’s proposed tax changes will significantly improve Michigan’s ability to compete for jobs. We look forward to working with the Administration and the Legislature to make sure we are competitive both nationally and globally.”

MI Perspective: It's no surprise that businesses like the prospect of lower tax rates. What remains to be seen, however, is whether those rates actually do create jobs either among existing employers or by attracting new businesses. Companies and the consultants they hire to select job sites often respond very favorably to credits. Moreover, the cuts in funding for redevelopment programs will thwart improvements in blighted areas that are of no interest to anyone. Still, the worst-case scenario is that Snyder will fall in love with his perceived mandate for a conservative agenda as other new governor's like Wisconsin's Scott Walker whisper in his ear. An attempt to improve state finances on the backs of unionized employees would bring shame to a state built with the help of organized labor in an attempt to service to the unending greed of corporate CEOs and the GOP puppets who do their bidding.

Great Lake cleanup faces budget cuts

President Obama's proposed 2012 budget would cut $125 million from projected funding for the Great Lakes Restoration Initiative, and a Republican vision for the budget would cut even deeper.

Environmentalists say the funding cuts, coming via reduced funding for the Environmental Protection agency, would stall progress on addressing longstanding problems faced by the Great Lakes.

Much work remains to to prevent problems such as “beach closings and swimming bans,” says EBA Senior Advisor Cameron Davis. “Things like habitat loss and trying to clean up our toxic hot spots that continue to threaten public health and property values around the region.”

Another area that is addressed by the initiative is the prevention and monitoring of intrusive species like the Asian Carp. Thom Cmar, an attorney with the Natural Resources Defense Council, says money from the program has already helped build electric barriers to try to keep the fish out of the Great Lakes and surrounding waterways.

President Obama has called for $350 million for the initiative in 2012, down from $475 million in 2010. But House Republicans have proposed a continuing resolution that would decrease that number to $225 million.

Joel Brammeier, president of the Alliance for the Great Lakes, says the plan is meant to build year after year, so funding uncertainties can disrupt work on the ground and could lead to increased costs in the long run. That's because many projects are implemented in phases, and if too much time passes before they begin, changes might need to be made to engineering and construction plans.

Obama cites Michigan in speech

President Obama yesterday cited Michigan initiatives among the examples of economic recovery and why it's time to "invest in America."

Obama's remarks came in Washington in a speech to the U.S. Chamber of Commerce, group the president has feuded with extensively over the past two years. Specifically, he urged U.S. companies to invest some of the $2 trillion sitting on balance sheets back into economic growth. Citing examples of the merits of new growth initiatives, Obama made these references in his speech:


"The key to our success has never been just developing new ideas; it's also been making new products.So Intel pioneers the microchip, then puts thousands to work building them in Silicon Valley. Henry Ford perfects the assembly line, and then puts a generation to work in the factories of Detroit. That's how we built the largest middle class in the world. Those folks working in those plants, they go out and they buy a Ford. They buy a personal computer. And the economy grows for everyone. And that's how we'll create the base of knowledge and skills that propel the next inventions and the next ideas.

"Right now, businesses across this country are proving that America can compete. Caterpillar is opening a new plant to build excavators in Texas that used to be shipped from Japan. In Tennessee, Whirlpool is opening their first new U.S. factory in more than a decade. Dow is building a new plant in Michigan to manufacture batteries for electric vehicles. A company called Geomagic, a software maker, decided to close down its overseas centers in China and Europe and move their R&D here to the United States. These companies are bringing jobs back to our shores. And that's good for everybody."

Snyder offers Citizens Guide to recovery

Gov. Rick Snyder is ramping up to announcement of his proposals to improve Michigan's economic fortunes. But first, he has offered a stark look at state finances, with greater transparency than typical outlines from Lansing.

Snyder put forth a "Citizen's Guide to Michigan's Financial Health" — a simplified state balance sheet designed to show, in an easily understandable form, the state's finances.

The guide is designed to simplify the state's voluminous Comprehensive Annual Financial Report and provide greater transparency for Michigan's total financial condition — including the money that's coming in and going out, fund balances and outstanding obligations.

What citizens will see is a snapshot of spending and debt levels that exceed state tax revenue, unfunded pension and retiree health care obligations and a state "rainy day" fund that doesn't hold water.

Among the specifics: there is approximately $18.2 billion in unfunded state and local government pension obligations, encompassing $3.1 billion for the state, $3.1 billion for local governments and $12 billion for school districts; and a combined $40.2 billion in unfunded retiree health care obligations.

Some of Snyder's proposed solutions will become evident Feb. 17 when he presents his state budget and accompanying tax message. A centerpiece is Snyder's flat corporate income tax proposal that would eliminate deductions along with Michigan Economic Growth Authority tax credits -- a favorite vehicle for business investment incentives of former Gov. Jennifer Granholm.

City defaults could hit close to home

The prospect of cities declaring bankruptcy and defaulting on municipal bond obligations continues to worsen, with Detroit high on the watch list in financial circles.

One of the latest sentinels of the growing national problem is Jamie JP Morgan CEO Jamie Dimon. He expects to see more U.S. municipalities declare bankruptcy, Bloomberg News reports. His concerns echo those of others who have said the next major financial crisis will come from a wave of local government defaults, including famed investor Warren Buffett, who has called the municipal debt situation a "terrible problem."

"If you are an investor in municipals you should be very, very careful," Dimon said, according to Bloomberg. An increase in city defaults would ruin their credit rating make it difficult for other municipalities to continue borrowing money from bond investors.

Local governments have had to deal with painful erosion in tax revenue, which in some cases threatens to ruin budgets. Amid the severe financial downturn of the past three years, cities and states have had to severely cut back their spending, even as the need for their services has grown. While official bankruptcy remains rare, experts say there's trouble brewing.

To avoid such as worst-case scenario, Detroit planning officials have outlined steps that would eliminate key municipal services -- garbage removal, police patrols, road repair, street lights -- in some 20% of the city's 139 square miles. The plan is consistent with Mayor Dave Bing's plan to reconfigure Detroit to reflect it's declines in population and fiscal stability.

Neighboring Hamtramck, meanwhile, is one Michigan city that is quickly running out of services to cut. Michigan currently has 68 cities on its "fiscal watch" or "fiscal stress" lists, meaning these communities are at risk of running out of money -- some perhaps even early this year. Many communities, Hamtramck included, have seen sharp drops in their populations and tax base as laid-off manufacturing workers have moved elsewhere in search of new jobs.

Cities that do head for the red shouldn't count on Lansing for help. The Michigan state budget deficit for fiscal 2012 is forecast to be $1.85 billion, though some analysts suspect it will actually be more than $2.0 billion.

Welcome to office, Governor Snyder.

Snyder cites goals to reinvent economy

Gov. Rick Snyder in his inaugural address called for a culture change in which cooperation, courage and innovation will lead the way to reinvented economy and enhanced quality of life in Michigan.

Snyder made his remarks on the Capitol steps upon taking the oath of office to become Michigan’s 48th governor.

“It is time to stop fighting among ourselves,” Snyder said. “It is time to solve our problems and create new opportunities.”

Snyder’s commitment to bipartisanship and public service was reflected in the inaugural ceremony, in which local and state leaders of both political parties were invited to participate. Detroit Mayor Dave Bing emceed the event and Grand Rapids Mayor George Heartwell delivered the invocation and closing prayer. The legislative majority and minority leaders shared the stage, which was not the case in previous inaugurations. Former Govs. Jennifer Granholm and John Engler also bridged the political gap by attending.

“We need to put party and geography aside and come together as Michiganders to reinvent Michigan,” Snyder said, but cautioned that getting Michigan back on track will require sacrifice and a new mindset:

“It won’t be simple or easy. There is no magic solution to our problems. But with most of our problems, there also comes opportunities. It will require shared sacrifice from all of us. Many have already made sacrifices. Many of us need to join those who have already contributed.”

Doing so will enable Michigan to achieve key goals such as becoming a globally competitive leader in innovation, creating more and better jobs and providing young people with greater opportunities and a bright future in the state.

Snyder pointed out the perils facing Michigan if its leaders continue to do business as usual.

“The old ways don’t work and it is time to start a new era,” he said. “This is our moment of opportunity to realize we have a bright future instead of a declining future.”

Michigan already has many building blocks for success in place, according to Snyder. Its world-class universities, unmatched natural resources and the entrepreneurial spirit of its people make Michigan unique. The inauguration showcased that theme by offering an abundance of food products grown or made in Michigan.

The governor said he looks forward to hitting the ground running with Lt. Gov. Brian Calley, legislative leaders and stakeholders across the state.

“I have been hired to represent all people of the state of Michigan and move us all forward together,” Snyder said. “We all want to live in a state of high expectations and results. We can only achieve extraordinary things if we aspire beyond traditional thinking. The old unbelievable needs to become the new achievable. Let today be the birth of a new chapter in Michigan’s history. Let today be the birth of the era of innovation and reinvention.”