Traverse City Record-Eagle

Archive: Tuesday

November 12, 2013

Governor: Fiscal house in order

The reinvention of Michigan is working and we’re now known as the nation’s “Comeback State.”

The Michigan of today is stronger, healthier and ready for the challenges of our global economy. And, we’re building a rock-solid foundation to make sure the future is even better for our children.

Everyone knows we went through tough times, but Michiganders are resilient. And, today we can celebrate thriving places, such as the Traverse City area, that showcase the very best Michigan has to offer.

Our comeback story starts with a focus on creating an environment that encourages innovation, creating more and better jobs, and improving the quality of life for the state’s 10 million people.

A key part of that was getting the state’s financial house in order. Working with Lt. Gov. Brian Calley and our partners in the Legislature, we’ve eliminated a $1.5 billion structural deficit without any accounting gimmicks. We’ve also put balanced budgets three years in a row – again without any gimmicks – and months ahead of schedule.

We’ve reduced the state’s long-term liabilities by more than $20 billion and rebuilt the state’s reserve fund. The fund once dropped down to $2 million, enough to run state government for about 30 minutes. Today, it holds about $580 million and we’ve got long-term plans in place to continue adding to it.

We also reformed our tax code, replacing the job-killing Michigan Business Tax – the dumbest tax in the nation – with the simpler, fairer Corporate Income Tax with a 6 percent rate, one of the lowest in the nation. With this change, Michigan’s job providers have seen a reduction of 80 percent or more in their state business tax burden, encouraging them to invest and grow and create more jobs.

We are aggressively pursuing regulatory reform and already have eliminated more than 1,500 unnecessary and burdensome regulations. Our focus is on removing the regulatory hurdles that hold back businesses, while maintaining necessary regulatory protection and oversight.

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