George Weeks: State strong on rebound

George Weeks

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George Weeks

November 6, 2011

By George Weeks, Syndicated columnist ---- The Record Eagle Wed Feb 15, 2012, 11:27 AM EST

From the beginning, the story of the Michigan economy has been boom/bust/rebound. The latest example was underscored by a recovery report released last week.

Michigan rode into statehood in 1837 on the crest of a national economic boom powered by a land rush and easy credit. But, as happened so often, Michigan was riding for a fall. It went from boom to bust, largely because of economic forces beyond its border, compounded by budget issues at home.

The National Panic of 1837 was building when Democrat Stevens T. Mason, a mere 24 years old when he became Michigan's first elected governor (to this day, youngest in the nation), pushed through his ambitious and costly internal improvements program that included railroads, roads and a canal network connecting the state's major rivers.

Many subsequent governors dealt with grim economies, including Republican Fred W. Green in 1927 ("The state is not paying its bills"), and Republican Frank D-Fitzgerald in 1939 ("We cannot feed the hungry with an empty treasury ... expenditures have dropped Michigan from a fiscal standing at the top of the list of states to the bottom").

Michigan's most memorable black eye came in the 1959 cash crisis when there was a state government payless payday after Democratic Gov. G. Mennen Williams and the Republican Senate deadlocked on a funding program. ("Michigan on the Rocks" was a mock cocktail in the national press.)

Most recently, 2003-10 Democratic Gov. Jennifer Granholm and current Republican Gov. Rick Snyder have dealt with a prolonged economic slump, including an early period when Michigan led the nation in jobless rates.

But now comes an index of state growth from the new Bloomberg Economic Evaluation of States (BEES) that says Michigan's economy is recovering from the recession at the second-fastest rate in the nation. That's thanks in part to revival of the auto industry and local manufacturers.

Ranking first was North Dakota, where, according to Bloomberg, "an oil boom is raising incomes at the nation's quickest rate." California, Massachusetts and Illinois round out the top five in the BEES index.

"Michigan's high ranking comes because the index measures growth since 2008, when the country was mired in recession," Bloomberg News said. said.

"In absolute numbers, Michigan has the third-worst unemployment rate in the nation -- which has increased to 11.1 percent in recent months -- and is the third-worst state for new foreclosures," the report said.

The Bloomberg News report was published by the Detroit News, which included reaction from Snyder and Granholm to Michigan's recovery being second fastest.

Snyder said: "We're still going to be gunning for first, but compared to where we've been in the last decade, it's exciting news. We're going to stay dedicated to doing even more."

Granholm said: "The news is terrific for Michigan. Obviously, we still have a long way to go, but the signs are certainly positive."

As noted by Bloomberg News, "Some of Michigan's improvement reflects the severity of its decline. It ranked last in the BEES index in the decade through 2010, when it was the only state to lose population."

Michigan parks ranked tops

Michigan's state parks have struggled in recent years for funding. But cheers to the Department of Natural Resources for being designated by the National Recreation and Park Association as having the nation's top state park system this year.

In reporting this, the Great Lakes Echo, a project of the Knight Center for Environmental Journalism at Michigan State University, said: "The association considers long-range planning, resource management and addressing the needs of park visitors to make its decision.

"Programs like the Recreation Passport, an optional $10 fee for Michigan drivers that renew their licenses that gives them access to all Michigan state parks, tipped the scales toward Michigan."

Meanwhile, the Michigan United Conservation Clubs (MUCC) said: "The DNR reported that in its first year of existence, 24.7 percent of Michigan residents opted to participate in the program.

" ... $18 million in revenues were brought in, of which over $6 million will be mandated to go toward park improvement and management," the MUCC said.

Boost for Badger

Two Republican congressmen from northern Michigan joined one from Wisconsin in gaining U.S. House passage last week of an amendment that might help keep the Ludington-Manitowoc Badger car ferry operating longer.

Reps. Bill Huizenga, of Zeeland; Dan Benishek, of Crystal Falls; and Tom Petri, of the Manitowoc area, sponsored an amendment to the Coast Guard Authorization Bill, as described by Benishek, "to block overzealous federal regulations from threatening the S.S. Badger, a historic ferry that has been operating on Lake Michigan for over 50 years."

"The Badger represents both a part of Michigan maritime history and (an) important economic resource for the state," Benishek said. "I certainly want to see the Great Lakes clean and protected, but at the same time I believe it's essential we defend this historical treasure and the 200 people it employs."

Huizenga said, "Without the certainty provided by this amendment, the Badger could very easily be forced off the Great Lakes at the end of 2012. With an annual economic impact of roughly $35 million for our two small port cities both in Wisconsin and in Michigan, keeping the Badger operational is absolutely vital to our communities."

Benishek said the amendment keeps in place the current Environmental Protection Agency discharge program for historic ships like the Badger. Without this amendment, the Badger's regulatory program will expire in December 2012.

The amendment does not exempt the Badger from all EPA regulations, Benishek said, but instead allows the agency to continue regulating discharge from the ship at its current levels.