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New state office will focus on Michigan’s population growth • Michigan Advance

New state office will focus on Michigan’s population growth • Michigan Advance

Governor Gretchen Whitmer has announced the creation of a new state office to help implement a plan to reverse Michigan’s population decline, following the announcement earlier this week that she would disband the Growing Michigan Together Council.

The Michigan Economic Development Corporation (MEDC) announced Friday the creation of the Michigan Growth Office, which will be tasked with implementing the bipartisan council’s growth plan.

Passed in December 2023, the report identified key problems within the state that result in a loss of tax revenue to fund schools, public facilities, and the quality of life in Michigan’s communities. Chief among these problems was a population decline, exacerbated by the lack of young people moving to or staying in the state.

Hilary Doe | MEDC Photo

The Michigan Growth Office, whose creation followed the signing of an executive order by Governor Gretchen Whitmer earlier this week whereas the work of the Council has been completedwill be led by Chief Growth Officer Hilary Doe, who Whitmer said will use the council’s recommendations to initiate programs aimed at increasing the state’s population.

“Michigan is focused on growing our state’s population and economy by retaining current residents and attracting new Michiganders,” Whitmer said. “… With Detroit’s population grows for the first time in 67 years and with momentum on our side, let’s continue to work together to create more affordable housing, lower the cost of education from preschool through college, and create good-paying, high-skilled jobs in forward-looking industries. Let’s prepare Michigan for decades of growth and make it the best place to call home.”

A press release from the MEDC states: Approximately $45.5 million in funding has been provided to support Michigan’s population growth efforts in fiscal year 2025 Budget passed by Parliament last month.

According to the MEDC press release, the additional budget resources correspond to the so-called “three pillars of the growth plan”:

  • Establishing Michigan as the Midwest’s innovation hub and “America’s Scale-Up State” while removing barriers to labor market participation.
  • Building a lifelong learning system with a focus on future-ready skills and competencies to ensure all Michigan residents have access to 21st century opportunities.
  • Creating thriving communities that attract young talent, including places that are climate resilient and have good transport links and housing.

However Policy Brief A report published in March by researchers at Michigan State University and Wayne State University said far more funding would be needed to implement the Council’s conclusion that the state Investments must be made in public schools in order to better develop the skills of the workforce and thus stimulate economic development.

“Today, annual government revenues are $12 billion below the 1978 Headlee Amendment, which capped government revenue at a fixed percentage of personal government income. This disinvestment is evident in certain policy areas such as education.” said Mike Addonizio, professor emeritus of educational leadership and policy studies at Wayne State University.

According to the report, about $4.5 billion in additional revenue would be needed to finance the needed funds identified in a 2018 nonpartisan study by the School Finance Research Collaborative, which agrees “quite well” with the report by the Council “Growing Michigan Together”.

This financing could best be achieved through a graduated state income tax, which David Arsen, professor emeritus of educational policy and administration at the MSU College of Education, says additional government revenue through higher tax rates for very high incomes while reducing tax rates for most taxpayers.

“This may be the most promising approach to financing the investments that are so important to a more prosperous Michigan,” Arsen said.

Given the political realities in Lansing, major tax reform is unlikely in the near future, so Doe will lead the efforts of the new Michigan Growth Office with available resources.

“To reverse Michigan’s population decline, we must all work together and step up. The investment by Governor Whitmer and the Legislature to continue the work of the Growth Office reflects the ongoing commitment I see from Michiganders across the state to build an even better future here in Michigan,” Doe said.