Michigan Dream Restored Interim Report on Citizen Research by Prima Civitas Foundation

MICHIGAN DREAM RESTORED INTERIM REPORT ON CITIZEN RESEARCH

WHAT MICHIGANDERS SAY MAKES OUR STATE SPECIAL AND CAN POWER THE ECONOMY

MEC

MICHIGAN ECONOMIC CENTER The Michigan Economic Center at the Prima Civitas Foundation 325 East Grand River, Ste. 375, East Lansing, MI 48823 517.999.3382 www.mieconomiccenter.org

PHOTO OF DOWNTOWN FLINT BY GERRY LESLIE

MICHIGAN DREAM RESTORED INTERIM REPORT: CITIZEN VALUES AND PUBLIC POLICY PRIORITIES FROM CITIZEN FOCUS GROUPS AND SURVEY RESEARCH CONDUCTED BY THE MICHIGAN ECONOMIC CENTER Introduction It began in the fall of 2012, when small groups of Michigan citizens—strangers to each other, but not to Michigan—gathered to talk about our state. The groups included a retired teacher in Flint, an organic farmer in Traverse City, a computer technician in Grand Rapids, a laid-off auto worker from Oakland County, a nurse from Detroit. Democrats, Republicans and independents. Young people with new families and retirees who had made their whole lives here. Single moms and entrepreneurs. Folks successful in their jobs, others feeling pinched, or scrambling to find something new.

These citizens were asked a series of questions about our state:

• • • • • • • •

What does “Michigan” mean to you? What values do Michiganders hold in common? What represents the “ideal” version of our state? What is the “reality” of our state today? What are the priorities to move from today’s reality to the ideal? What should we do? How should we do it? How would we pay for it?

This is the story citizens are beginning to tell about Michigan. What they value. What makes Michigan unique and special. What is most important to do to help this state live up to its historic promise of providing good jobs and opportunity for those willing to work hard. And these individuals began to identify specific ways they were, as taxpayers and citizens, willing to support investments in our people, our communities and our beautiful state, in order to restore the Michigan Dream of promise and opportunity.

EXECUTIVE SUMMARY EXECUTIVE SUMMARY The Michigan Economic Center (MEC), with the help of a broad coalition, has been conducting a message and public policy agenda-building project to identify a values-driven, broadly-supported, citizen-informed agenda for Michigan’s economy. The motivation for the citizens, leaders and organizations coming together through the MEC to initiate this project, was a belief that the foundational assets of our state – great schools and universities, quality roads and transportation system, vibrant and historic cities, clean water, outdoors and great parks—are central underpinnings of the state’s economy. These assets have given us a unique identity and strategic economic advantages for many years, while also engendering pride among our citizens and making Michigan a desirable place to live and work. These economic foundations are also “public goods,” the things we support as a community with our tax dollars, that the private sector and market does not provide on its own. These critical assets of our state are degraded. A down economy, combined with 12 years of state tax rate cuts, has dramatically reduced investment in, and maintenance of, our public goods:

• Michigan has a yawning $1.5 billion hole to maintain crumbling roads and bridges1 . Our citizens have poor access to transit, and many can’t get to jobs that do exist.2 • Over the past decade community revenue sharing has been slashed 32.7%3 , crippling vital public safety, fire, water services, and making libraries, arts and culture programs, and parks challenging to maintain. • Michigan’s high-quality higher education institutions are now being priced out of reach of working people. Tuition has doubled at public universities, while state support for community colleges has fallen by 1/3.4 • Once a conservation leader, Michigan is now ranked 47 of 50 states in conservation funding. Environmental cleanup has dropped dramatically.5 Beach closures have doubled.6 A central goal of the project is to inform and develop public good investment policy ideas to reverse these trends, by tapping into what Michigan citizens’ value about Michigan and what they believe matters most to Michigan’s economic growth. Ideas developed here are designed to inform the current Administration and Legislature’s decision-making, shape future public policy debate, and focus discussion and advocacy using citizen-informed solutions.

1 Michigan Turnaround Plan, Business Leaders for Michigan, June 2010 2 Transit Access and Zero Vehicle Households, Brookings Institution Metropolitan Policy Program, August, 2011 3 Ibid. 4 Students Take Hit on State Cuts to Higher Education, MLive, Peter Luke, 22 August, 2010 5 Bridge Magazine, Pure Slacking- Michigan Falters on Conservation, 20 September 2011 6 Ibid. MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION - 3 -

EXECUTIVE SUMMARY Process Through an iterative citizen value identification and alignment process—successfully used in the private sector for linking values with “products” people wanted to buy—core values, citizen priorities for Michigan, and a policy agenda that resonates across Michigan demographics and the political spectrum is being developed. The interim results shared here include the findings from the first steps7 of this multi-year process:

• A national scan of successful large-scale public good investment programs, and current, Michigan-specific proposals for public good investments being made by a variety of leaders and stakeholder groups from across the political and policy landscape; • Eight “discovery” focus groups to test policy and funding solutions against citizen values and priorities were conducted across the state, rigorously organized to be a representative sample of Michigan and its people in terms of geographic, political and demographic representation; • A large scale (1000+) person telephone survey further tested and refined the findings from the focus groups—including the most favored policy investment ideas tested in the focus groups. This larger-than-normal survey ensures a demographic, geographic, and politically representative sample of Michiganders, and provides an unusually high confidence margin in the findings. Collectively, these findings provide powerful insight and direction concerning Michigan citizen values, priorities for economic improvement, and the types of public good investment strategies (and how they might be paid for) that do have potential broad appeal across Michigan.

Key Findings Michigan citizens do believe public good investments are central underpinnings to economic growth.8 When asked, “Which of the following two statements comes closer to your view?” the 1000-person survey results91show:

64%

The most important thing state government can do for job creation is provide quality education, good roads and transportation, good public services like safety, water, fire, parks and libraries that create an environment in which people want to live, work and run a business.

29%

The most important thing state government can do is to cut taxes for individuals and business. That’s what really creates jobs.

7 Separate detailed reports are available for each of these elements of the project. 8 From 1000+ person Survey, December 2012: EPIC-MRA/Martin-Waymire, validating focus group results 9 The other 7% refused to answer

What Michiganders Value – The Michigan “Ideal” In focus groups, Michigan citizens participated in exercises that identified their ideals. In free association, groups answered: “what does ‘Michigan’ mean to you?” In image identification, they responded to: “what are images that capture the ‘ideal’ Michigan?” Finally, groups completed values statement prioritization. Together, the results show that Michiganders value most, and identify with, the following:

• • • • • •

“Hard work for opportunity”, as found in the auto industry that drew people here Being fighters through adversity Family above all The Great Lakes and outdoors as places to escape with family Our universities and education that provided a pathway to opportunity (for those willing to work for it) Neighborhood communities that are good places to raise families

According to citizens’ values, Michigan’s “ideal” is a state that has overcome its problems and is a great place to work, play and—above all—raise a family.

The Michigan Reality of Today Michigan citizens see a significant gap between the “ideal” Michigan and the current reality. Michigan’s current reality is defined largely by hardship, anxiety and struggle. Michigan citizens also see a lot of what they value about Michigan being unavailable or degraded. The link between hard work, opportunity and jobs is not there. Family members are having to leave. Public safety and vital services like roads and infrastructure are in terrible condition, making neighborhoods and communities unattractive. Education and higher education are not what they should be and/or are out of reach. The outdoors and recreation opportunities Michigan citizens appreciate so much as places to escape with family seem to be at risk. When asked in the survey: “Thinking about the amount and quality of the programs and services government currently provides—such as repairing Michigan’s roads and streets, providing local police and fire protection, having quality schools, both K through 12 and higher education, having state parks and the like—compared to what was provided 10 to 15 years ago, would you say current programs and services are better, worse, or about the same as they were then?” Respondents said:

4% Much better 12% Somewhat better 16% TOTAL BETTER 29% About the same

51% TOTAL WORSE 25% Somewhat worse 26% Much worse 4% Undecided/Refused

EXECUTIVE SUMMARY A Public Good Investment Agenda that Resonates with Michigan Citizens Citizen research suggests there is opportunity to package messages and public investment policy priorities that have broad appeal, if they speak to shared core Michigan values, which can be summed up as:

Shared Core Michigan Values

• Economic opportunity in return for ‘hard work’ • A good place to raise a family, and keeping family close (by having communities to be proud of, that attract business, and keep our kids from leaving) • Having good places to escape (recreate, enjoy the outdoors, lakes, “Pure Michigan” – as respite from ‘hard work’ and as part of having a good place for family)

Public Good Investment Policy Choices Consonant with Michigander Core Values The focus groups and survey confirmed strong support for potential policies and programs that are consonant with Michigan citizen values and priorities. The most attractive public good investment priorities and strategies that emerged from the focus groups, which were then confirmed through the survey, include: Focus on Vital Services Citizen priorities are public safety/crime, core services, good roads, fixing decaying infrastructure, which are all viewed as critical for having communities to be proud of, good neighborhoods to raise a family, and keeping family close. These elements are understood by Michigan voters to be essential pre-requisites for economic growth, because they make it possible to attract business—and keep people and our kids here— by making cities and communities places people want to live and work.

• A proposed “Vital Services Fund” (all core services such as safety, fire, water, roads) and specific proposals for “Road/ infrastructure funding” ranked very high in focus groups. These findings were confirmed by the survey. When asked to rank ideas on a 0-100 scale in terms of their appeal, a Vital Services Fund had an 84% overall appeal, funding to upgrade Michigan roads, 81% overall appeal. Education and Higher Education Public education generally, and better access for higher education, were broadly supported as a ways to deliver on values of economic opportunity for hard work, and having a good place to raise a family. Voters strongly support investing in access to higher education, but they want some return on their investment and they want to reward hard work. Proposed programs that did so were rated very well across demographics and the political spectrum (see next page).

Programs that Return on Investment in Higher Education

• Michigan STEM Scholarship program: paying for college to retain Michigan students in needed fields of science, technology, engineering and math had the highest appeal in the survey, with an 85% overall approval ranking • Michigan Promise Scholarship: paying for higher education for those who worked hard to achieve, also had a nearly 85% overall appeal rating • Michigan Corps: offering Higher Education funding in return for service in Michigan had an 82% appeal • Stay in Michigan College Fund: providing college loan forgiveness for those who stay and work in Michigan had a 77% overall approval rating Innovation/New Businesses Voters want to support the development of the jobs and businesses of tomorrow. They are not sure what those businesses are, but do know they can’t solely rely on the automobile industry looking ahead. Citizens do strongly want to reward hard work with opportunity, helping new entrepreneurs by supporting new businesses, and entrepreneurs who are committed to Michigan.

• A “Hatch Michigan Fund” to provide seed support for new Michigan entrepreneurs committed to Michigan was the favorite of the several innovation and new business development ideas discussed in the focus groups. The support was confirmed by an overall 84% appeal ranking in the survey. Outdoors, Conservation and Culture Outdoors, recreation, lakes, “Pure Michigan” (with its clean connotation), are huge identifiers for all Michiganders. For Detroit and urban residents, this takes the form of a desire for “clean” communities with city streets and parks that are maintained, and recreation opportunities like community centers that are kept open. These assets speak to values of Michiganders wanting places to escape with family, and are part of what makes Michigan a great place to raise a family. Outdoors and natural assets were viewed as less of an investment priority, however, than more “basic needs” like: core services, safety, higher education, and new businesses.

• Across demographics, citizens responded very well to a “Pure Michigan Fund”, which calls for more robust funding for outdoors, recreation, clean water, parks, and tourism promotion. The fund makes “Pure Michigan” more real, and helps our natural assets serve as economic development drivers. The “clean” connotation also has special meaning to Michigan city-dwellers. It was a strong favorite of all ideas tested in the focus groups, and had a favorable ranking of 85% in the survey. Additionally, there were some indications that investment in emerging industries, which build on Michigan’s natural assets of clean energy, water, food and agriculture, would gain support through a “Natural Resource Innovation Fund”, with a 78% overall appeal rating.

EXECUTIVE SUMMARY Funding the Agenda The next steps in the Michigan Dream Restored project are to refine and tighten the message, the policy-program agenda, and proposals for how the agenda would be accomplished and funded in line with Michigan citizen values. Early findings indicate Michigan voters across the spectrum are willing to support increased investment in these important priorities, if investments are framed, organized and delivered in ways that align with their values and get results citizens care about. While the ideas for citizen-supported policies—and how to best pay for them—need to be further refined in the next steps of work, findings from focus groups and surveys indicate that needed money can be raised by:

• Having the better-off citizens pay more to help reward the hard work of all, in order to make the state a great place to raise a family and keep family close. For example, a progressive income tax to pay for education could be framed to appeal to a broad demographic. Potentially, a reduced sales tax, with extension to more services could be framed to win support, too. Sin taxes were also highly rated to pay for any and all needed investments. • Making polluters pay, and taxing heavily extractive industries that take Michigan’s assets and run, in order to pay for the outdoors, clean water, and natural assets that make Michigan a great place to escape and raise a family, and make Pure Michigan a reality. • Earmarking particular taxes and revenues for particular uses; for example, potentially funding local/regional transportation or vital services with a local tax or millage, coupled with a reduced state gas tax.

MICHIGAN DREAM RESTORED THE MICHIGAN DREAM RESTORED PROJECT The foundational assets of our state are central underpinnings of Michigan’s economy. This belief motivated citizens, leaders and organizations to come together through the Michigan Economic Center and initiate the Michigan Dream Restored project. Michigan’s assets—great schools and universities, quality roads and transportation systems, vibrant and historic cities, clean water, outdoors and great parks—engender pride among our citizens and make Michigan a desirable place to live and work. Such assets have also given us a unique identity and strategic economic advantages for many years. These economic foundations are also “public goods”: the things we do together as a community with our tax dollars that the private sector and market do not provide on their own. And these critical assets of our state are being damaged. A down economy, combined with 12 years of state tax rate cuts, has dramatically reduced investment in, and maintenance of, our “public goods”. Michigan has a yawning $1.5 billion hole to just maintain our crumbling roads and bridges.10 Our citizens have poor access to transit, and many can’t get to jobs that do exist.11 Community revenue sharing has been slashed 32.7%12, crippling vital public safety, fire, water services, and making libraries, parks, arts and culture programs challenging to maintain. Michigan’s high-quality higher education institutions are now being priced out of reach of working people: tuition has doubled at public universities and state support for community colleges has fallen by 1/3.13 Once a conservation leader, Michigan ranks at 47 of 50 states in conservation funding. Environmental cleanup has dropped dramatically.14 Beach closures have doubled.15 We took some inspiration that we can do better from other states facing similar fiscal and economic challenges, but that are still managing to design and mobilize public will to support important investments in their own defining economic assets. We counted $2.3 billion for successful new business creation and innovation in Ohio; $6 billion over 25 years for water, parks and arts in Minnesota. We studied North Carolina, which has funded higher education 3 times better than in Michigan, keeping it much cheaper and more accessible for its citizens; Arizona and Oregon, where voters approved new investments in education. We considered Los Angeles, Denver and Chicago where significant investments in transportation and transit are accelerating economic growth. The questions we sought to answer in this initiative are listed on the following page.

10 Michigan Turnaround Plan, Business Leaders for Michigan, June 2010 11 Transit Access and Zero Vehicle Households, Brookings Institution Metropolitan Policy Program, August, 2011 12 Ibid. 13 Students Take Hit on State Cuts to Higher Education, MLive, Peter Luke, 22 August, 2010 14 Bridge Magazine, Pure Slacking- Michigan Falters on Conservation, 20 September 2011 15 Ibid. MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION - 9 -

MICHIGAN DREAM RESTORED Questions We Sought to Answer in Michigan Dream Restored Project

• Do Michigan citizens see things the same way? • What do they believe are the most important attributes that make Michigan special – that are important to them, to their families, and to growing Michigan’s economy? • What are their priorities for making Michigan “work” better? • And, most importantly, how can better understanding citizen values and priorities help fashion tangible ideas for investing in Michigan’s key economic assets? And how can this understanding help gain broad support and improve chances of putting these ideas into action?” The project was designed to bring forward specific, tangible, and broadly supportable public good investment policy ideas, informed by other states’ successes, and the expertise and voice of Michigan citizens and stakeholders. The goal is to inform and make more “tractionable” public good investment policy ideas by tapping what Michigan citizens value about Michigan and what they believe matters most to Michigan’s economic growth. A key feature of the project is the process by which the policy ideas are created, refined, and improved by sophisticated citizen research techniques. Policy ideas spring from the values and emotional connection citizens feel with our state, and those citizen values ground solutions in what our people believe are the most important steps to improve Michigan’s economy. Figure 1. Advisory Board - Michigan Public Goods Policy Development Project In this report we begin to make those ideas—and the citizen research that informs it—available to the public, the current Administration and Legislature, and multi-sector stakeholder and leadership groups. In doing so, we aim to inform future public discussion and the work of our leaders, organizations and citizens who can advance these ideas in the public sphere.

Process and Methodology The MEC and a team of consultants have been executing a multi-step process to inform the values-driven, broadly-supported, citizen-informed agenda for Michigan’s economy. This multi-sector stakeholder Advisory Group set guidelines for the project. The group– ranging from business owners and associations, local government, labor, education, environmental and civic representatives—represents a diverse cross-section of organizations and constituencies with interest and stake in “public good” investment strategies.

Amber Arellano, Executive Director, Ed Trust Midwest Peter Battani, Kalamazoo County Administrator Regina Bell, former Policy Director, Governor Granholm Fred Blanck, Strategic Advisor, Wallside Windows John Bebow, President and CEO, Center for Michigan Mike Boulus, Executive Director, Presidents Council State Universites of MI Rosalynn Bliss, Grand Rapids City Commisioner Paul Brown, Founder, Front Door Insights Andy Buchsbaum, Executive Director, National Wildlife Federation Great Lakes Region Paul Diamond, Miller Canfield, Former National Economic Council Rob Fowler, President, Small Business Association of MI Dan Gilmartin, Executive Director, Michigan Municipal League Don Gilmer, former State Budget Director, Kalamazoo County Administrator Thomas Haas, President, Grand Valley State University Mike Hansen, President, Michigan Community College Association Steve Hamp, Chair, New Economy Initiave; Michigan Educational Excellence Fund/EAA Jim Jacobs, President, Michigan League for Public Policy Lou Glazer, President, Michigan Future Inc. Chris Kolb, Executive Director, Michigan Environmental Council Glenn Mroz, President, Michigan Technological University Timothy J. Nelson, President, Northwestern Michigan College Tremaine Phillips, Policy Director, Prima Civitas Foundation Cyndi Roper, Executive Director, Michigan Voice Karla Swift, President, Michigan AFL-CIO Dan Varner, CEO, Excellent Schools Detroit Kayla West, Former CEO Lake Superior Hospice, American Red Cross, Marquette Tom Woiwode, Director, Greenways Initiative Community Foundation for SE MI Lisa Wozniak, Executive Director, Michigan League of Conservation Voters

PROCESS The citizen research process the Advisory Board guided the consultant and staff team in executing is summarized in Figure (2).

Public Goods Investment Idea Inventory “Trigger ideas” sourced from: • Advisory Board/key stakeholder and expert input • National scan: State – Local successes • Austin/Prima Civitas synthesis and development

Initial “Citizen Voice” Research • Assess and quantify potential investment opportunity areas • Set stage for developing integrated, “packaged”, citizen-‐ supported policies • Qualitative and quantitative research

PROCESS The citizen research process includes five key steps:

1. A national and Michigan scan and inventory to bring forward potentially effective public good ivestment policy approaches and strategies 2. Statewide “Discovery” Focus groups to identify citizen values and priorities, identify and align policy ideas for meeting those priorities from a representative sampling of Michigan citizenry 3. 1000 person phone survey testing to validate and refine the values, priorities, and most attractive policy and funding ideas from the citizen focus groups 4. “Rapid Refinement” Workshops groups to refine messages, values, policy proposals and funding ideas in citizen work/ focus groups 5. Quantitative validation survey to test and refine citizen understanding and support for messages and policy proposals Through an iterative citizen value identification and alignment process—successfully used in the private sector for linking values with “products” people wanted to buy—core values, citizen priorities for Michigan, and a policy agenda that resonates across Michigan demographics/political spectrum is being developed. The interim results shared here include the findings from the first three steps16: the policy inventory, discovery focus groups and state-wide validating survey. These findings provide powerful insight and direction concerning Michigan citizen values, priorities for economic improvement, and the types of public good investment strategies (and how they might be paid for) that do have potential broad appeal across demographics.

Process Step 1. Public Good Investment Idea Inventory: The Advisory Board reviewed and assembled a set of policy ideas to test in five key areas of public good investment deemed as both important and currently lacking in Michigan:

• • • • •

Education/Higher Education17 Infrastructure/Transportation City/Urban Redevelopment Outdoors, Recreation & Culture Innovation and New Business Creation

The MEC and partners first conducted a national scan of successful efforts from around the country in these same domains: e.g. successful regional transportation funding in Denver and Los Angeles; Minnesota’s Outdoor Legacy Act, Maine’s Innovation Investment strategy. 16 Separate full reports are available for each of these project elements. 17 Only higher education investment policy ideas were tested, given the fulsome public discussions, policy and funding proposals emerging in Michigan in areas of pre-K and K-12 education

The MEC, its Advisory Board, and its partners also assembled an even larger set of Michigan-specific investment and funding proposals: historic, current proposals, and totally new ideas. These included proposals currently being made by Michigan’s Governor, Legislators, business leadership groups, civic, municipal, and governmental bodies, environmental coalitions and advocacy organizations, policy think tanks and many others depicted in Figure (3).18 Higher Education

Infrastructure and Transportation

City/Urban Redevelopment

Outdoor Recreation, Conservation & Culture

Innovation/New Business Creation

Michigan Promise Program Fund 2-4 years of post-secondary education for every Michigan high school graduate

Vital Services Fund Funding for Michigan cities to improve public safety and infrastructure (police, fire, roads, water)

Pure Michigan Fund Funding to support clean water, parks, greenways, blueways, conservation, tourism promotion

3rd Frontier Innovation Fund Funding for State University Research & Innovation Centers of Excellence

No Worker Left Behind 2-year community college equivalent postsecondary education for all adult workers

State Infrastructure Bank Public-Private Matching Funds for Strategic Development Projects

Urban Innovation Districts Funding for economy growing investments in key Michigan urban centers

Outdoor Legacy Fund Funding to protect Michigan’s fishing, hunting, and recreational resources

Hatch Michigan Fund Investment funding for Michigan Small Businesses and Entrepreneurs

Michigan Merit Scholarship College funding for high performing students

Mass Transit Funding for strategic investments in mass transit

Magnet Cities Public-private matching funds for urban development projects to keep and attract talent

Science, Arts and Culture Fund Supporting science programs, libraries, arts and cultural institutions

Michigan Resource Innovation Fund Fund industries that build on Michigan’s unique environmental assets (e.g. clean water technology, agriculture, wind turbine technology

Michigan Corps College funding in exchange for public service and bridges

Upgrade Michigan Roads Funding for improvements to key roads and bridges

Sustainable Cities Fund Funding for sustainable improvements to the urban environment (urban farming, city parks, bike paths, waste management)

Michigan Resource Innovation Fund Fund industries that build on Michigan’s unique environmental assets (e.g. clean water technology, agriculture, wind turbine technology

Science, Arts and Culture Fund Supporting science programs, libraries, arts and cultural institutions

Michigan College Fund Interest free loans for college

Transportation Alternatives Funding for bike- and pedestrian-friendly urban develop

Science, Arts and Culture Fund Supporting science programs, libraries, arts and cultural institutions

“Green & Blue” Innovation Fund Investing in clean-technology water and energy sectors

“Green & Blue” Innovation Fund Investing in clean technology water and energy sectors

Stay in Michigan College Fund Loan forgiveness for graduates who stay in Michigan

Brownfield/Historic Preservation Tax Credit Tax credits for development of unused/abandoned industrial land and buildings

Keep our Colleges Competitive Fund Michigan colleges to a benchmark target or at least national average

18 The Various Policy Ideas Tested Within Broad Categories of Public Good Investment. Some policy ideas contribute to and were tested in several categories. MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION - 13 -

PROCESS Among many ideas tested were: Governor Snyder’s call for road funding with a vehicle registration fee; state public-private partnership to fund transportation; Business Leaders for Michigan proposal for “competitively benchmarked higher education funding”; Senate Democrats’ Michigan 20/20 higher education plan; Brookings/Public Sector Consultants “Urban Innovation District” recommendation for urban renewal; a state infrastructure bank; restoring brownfield and historic tax credits.19 A number of new ideas were developed by the Advisory Board and key stakeholders: a Hatch Michigan Fund for new entrepreneurs; a Michigan Corps - higher education funding in return for community service program; a Pure Michigan Fund for clean water, parks, outdoors and tourism; a “dirty energy/polluters pay” tax for funding road/infrastructure improvements. These ideas were then tested in the study. Step 2. Initial Citizen Voice Research: These particular policy/investment ideas were tested as part of the citizen-value mining and priority identification process shown below in Figure (4).

An initial set of discovery focus group sessions was conducted around the state, with rigorous screening to ensure balanced demographics and political viewpoints, as reflected on next page in Figure (5).

Figure 5. Composition of initial eight focus groups. October 6 Farmington Hills, MI • Oakland County Residents - white collar skew • Detroit Residents - African-American Flint, MI • Flint-area Residents - Seniors (62+) October 8 Ann Arbor, MI • Out-county Wayne Residents - blue collar skew • Ann Arbor area Residents October 11 Grand Rapids, MI • Grand Rapids area Residents • Grand Rapids area Residents - Young Families October 12 Traverse City, MI • Traverse City area Residents

Participants were recruited by the following specifications:

• • • • • • • • • • • •

Recruited 11 to seat 8 Have not participated in a political/public affairs focus group in last 12 months Likely voter in November 2012 election Self-identified as likely voter Have voted in at least one state or local election in past year Mix of party affiliation (D, R, I) appropriate to particular citizen segment/ geography Have at least a base level of civic-mindedness (measured attitudinally) Roughly 50/50 male/female Mix of incomes and education-level appropriate to particular citizen segment/ geography Mix of incomes and education-level appropriate to particular citizen segment/ geography Mix of occupations Standard Security Screen

The focus groups were facilitated by independent consultant Phil Roos, who brought in his techniques for identifying the values and emotions people carry about a ‘product’ from his successful consumer products market research career. This process was used to create a number of successful new products and marketing campaigns. For example the memorable Michelin tire ad campaign featuring a baby in a tire; demonstrates the power of identifying core values, in this case “safety” in marketing a product or service. Under Roos’s direction, each focus group followed the protocol outlined in Figure (6). Figure 6. Focus Group Discussion Flow Michigan “Valiues”: • Michigan free association • Picture sort- respondents choose form range of pictures: three pictures that represent Michigan “ideal”; three that represent Michigan reality • Respondent ranking of various Michigan “Values” listed on cards Michigan Challenges: • Respondent listing of challenges facing the state • Ranking of challenges according to most important/most urgent Policy Ideas: • Respondent ranking of various policy ideas listed on cards Funding/Accountability Mechanisms: • Respondent ranking of various policy ideas listed on cards Synthesis: • Discussion of links between values, challenges, policies and funding/accountability mechanisms • Respondents form initial “clusters” of valuse-linked policy and investment preferences MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION - 15 -

PROCESS In the focus group discussions, investment policy ideas from the inventory were discussed as “trigger ideas,” with enough detail so participants knew what they were and how they might “work.” Policy ideas that weren’t gaining interest were reframed, relabeled, or totally replaced with new and different proposals throughout the process. Investment ideas may be further reframed, or packaged together as part of the “rapid refinement” stage of the process, which will identify the optimal mix of investment programs and funding mechanisms. The product of the initial focus groups include 20 :

• An identification of a set of shared values about Michigan that animate citizens’ attitudes towards our state and what matters to the economy; • Priorities to move toward a state that animates the values citizens hold dear; • A ranking of public investment policy proposals that did begin to speak powerfully to the core values and priorities identified, and were attractive in the way they could be implemented to be effective; and, • An initial assessment of preferences on how citizens across demographics and political orientation were interested in paying for public good investments. Step 3. A Statewide Survey of 1000+ Michigan Citizens was conducted to refine and validate focus group findings. With guidance and collaboration from Martin-Waymire and Associates - EPIC • MRA administered live telephone interviews with 1,000 adult Michigan residents from November 24th to December 1st, 2012. Building on the focus group findings, survey respondents were asked to respond to and rank descriptions of the State and its people, the values people share, the importance of addressing a variety of problems. Respondents then ranked the importance and appeal of the public good investment ideas that emerged most powerfully from the focus groups, as well as offered opinions on particular public good investment ideas, funding mechanisms and proposals. The sample was stratified so that every area of the state is represented according to its contribution to the statewide population. The large survey sample provides a +/- 3.1% sampling error (at 95% confidence interval) for questions with 1000 responses.

MICHIGAN VALUES, CITIZEN PRIORITIES What Michiganders Value Most Beginning in the focus group exercises—in free association (what does ‘Michigan’ mean to you?) and image identification (what are images that capture the “ideal” Michigan? What are images that capture the Michigan “reality” of today?)—Michigan citizens across politics, geography and demographics converged on similar values and priorities.

20 Details are published in the Focus Group and Investment Policy Scan Summary Report

RESULTS When asked to free associate in response to the word “Michigan,” answers were remarkably similar. Whether respondents were young or old, black or white, residents of Grand Rapids or Flint, common references included: “Lakes”, “4 seasons”, “family”, “autos”, “outdoors”, “home”, “hard work”, “struggle”, ”tough economy.” The broad citizen survey confirms these top “mind and heart” associations we have with Michigan, as seen in Figure (7). Below, Citizens were asked which descriptions were “Excellent,” “very good,” “partly good,” or “not a good description at all” of the state of Michigan. Figure 7. Top Michigan “Mind and Heart” Associations 96%

100% 90% 80% 70%

83%

80%

78%

69%

65%

60% 45% 38%

50% 40% 30%

27%

41% 39%

44% 34%

37% 28%

Excellent Very Good Total Good

20% 10% 0% The Great Hun:ng and Vaca:on World-‐class The Lakes Fishing ADrac:ons Universi:es Automobile Paradiase for Everyone Industry

The Michigan “Ideal” When participants were asked to view literally hundreds of images and choose the 3 or 4 that best represent the “ideal” of Michigan, almost the exact same photos were chosen from group to group. Their “ideal,” visual association with the Michigan they know exists and want to see made even more real included: a lighthouse on the lake; fall colors; beaches; families fishing or camping with the kids; a cider mill and apples; an image of U of M, or MSU, Eastern or another university; students graduating; the GM logo; a truck or a classic car; the Tigers, Redwings; a tribal chief or Henry Ford denoting our history; a growing plant (our ‘green’); a windmill (our future industry); an arrow pointed up; a sign that said “opportunities unlimited.” These images (shown on the following page) suggest Michigan’s ideal is a state that has overcome its problems and is a MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION - 17 -

RESULTS state that has overcome its problems and is a great place to work, play and—above all—raise a family. Below are images of the Michigan “Ideal”:

Who We Are as Michiganders and What We Value In describing “their” Michigan, the focus group respondents identified a set of shared Michigan “values,” which were later confirmed by the citizen survey. These values represent what we care most about and inform what types of actions people want to take to move Michigan from its current “reality” to the “ideal” they cherish. Above all else, Michigan citizens value “hard work.” They want to see hard work translate into better opportunity, as it historically did in this state—as evidenced by the stories people told about themselves and their forebears—and work in the auto industry that drew many people here. Figure (8) shows the overall rankings from focus group participants of broadly shared Michigan values.

• •

Michigan Values Prioritization:

Primary: “hard work” , “Fighting”, and “opportunity to succeed” Secondary: Recreation, the outdoors, and having a good place to raise a family/keep family close

Top Michigan Values We value hard work. We fight through adversity. We value having great places to escape. We believe everyone should have the opportunity to succeed. We care about our abundant natural resources. We beieve our children should have the same opportunities we had. We value having a good place to raise a family. We believe it is important to help those in need. We are proud of our neighborhoods and communities. We are family oriented and want our family members to stay close. Innovation is part of our DNA. We believe that we have the power to shape our future. - 18 - MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION -

Overall Score 25 18 16 15 15 14 14 12 11 11 9 8

Figures (9) and (10) show responses from the broader citizen survey reflecting their rankings of shared Michigan values. Figure 9. Phrases That are Good Descriptions of Michigan Residents

Figure 10. “Tell me how much each of these values is shared by you personally?” Statement Economic opportunity should be available to everyone who works hard. We care about having a good place to raise our families. Our children should have a chance to enjoy at least the same standard of living that we have had. Having lakes, forests and other places outdoors to escape is important to us. Hard work is one of our most important values. It’s important to help those in need. An equal opportunity for everyone to succeed is our strong belief. We are family oriented and want our family members to be able to remain nearby. We have pride in our neighborhoods and communities. Personal responsibility is more important than looking to others, especially the government, for help. Working together with friends, neighbors and government is the way we solve our problems.

Rank of 100 95.555 95.382 93.66 92.371 91.802 91.485 89.369 88.354 85.96 85.332 80.489

RESULTS Michiganders view themselves as fighters, and value “fighters” who keep moving in spite of adversity. Michiganders prize our special Great Lakes and outdoors most particularly as places to escape with family. Universities and education are appreciated as providing that pathway to opportunity (for those willing to work for it), Michiganders also identify strongly with family, have viewed Michigan as a great place to raise a family-and they value and want neighborhood communities that are good places to raise families—and that have attributes that keep their children and family from leaving them.

The Michigan “Reality” of Today People consistently chose unnerving pictures when asked: “What image evokes the Michigan reality of today?” To participants, “reality” was represented by: a battered road, a man with his head in his hands, a woman with an anxious face, a gas price sign, a bloodied but standing boxer, a Sisyphean image of a beetle rolling a larger stone uphill, an unemployment line, an abandoned home, a piggy bank with a tight belt around it, children sleeping in class (e.g. not learning), a GM logo again, but with this caveat from those who picked it—“we are about cars but we can’t rely totally on the auto industry”. Below are images of the Michigan “Reality.”

PRIORITIES Priorities Facing Our State Moving from Today’s ‘Reality’ to the Michigan ‘Ideal’ Michigan citizens see a significant gap between the “ideal” Michigan and the current reality. Michigan’s current reality is defined largely by hardship, anxiety and struggle. Michigan citizens also see a lot of what they value about Michigan being unavailable or degraded: The link between hard work, opportunity and jobs is not there; family members are having to leave, public safety and vital services like roads and infrastructure are in terrible condition (making neighborhoods and communities unattractive), education and higher education are not what they should be and/or are out of reach. The outdoors and recreation opportunities Michigan citizens appreciate so much – as places to escape with family—are at some risk. (Although in a few communities, and among a few demographics, young families in Grand Rapids, respondents in Traverse City, there was a bit more optimism, and more positive imagery selected about the current Michigan reality). Anecdotally in focus groups, individuals spoke to how these “reality” conditions affected them and the economy: Question: “Do bad roads really matter to jobs and the economy?” Answer: “Absolutely, it’s embarrassing. Why would anyone want to do business here?” And in the citizen survey, as reflected below in Figure (11), Michigan citizens confirmed overwhelmingly the premise that “public goods” matter most in creating conditions for economic growth. Nearly two-thirds of Michigan citizens agree that providing quality education, good roads, public services like safety, fire, water, parks and libraries, are more important to job growth than cutting taxes.

PRIORITIES Citizens in focus groups and in the survey also bemoaned the deterioration of many of the Michigan “assets” they view as valuable. Figure (12) shows survey responses when citizens were asked whether a variety of public services were better, the same, or worse than 10-15 years ago. Figure (12) asked respondents to “Think about the amount and quality of the programs and services government currently provides, such as repairing Michigan’s roads and streets, providing policy and fire protection, having quality schools, both K-12 and Higher education, having state parks and the like. Compared to what was provided 10-15 years ago, are current programs and services better, worse, or about the same?” Figure 12.

To move from the Michigan “reality” to the Michigan “ideal” citizens put strong priority on a variety of basic things they expect from government: public safety, quality education, protecting our lakes and natural resources. They also made a roadmap of priorities to what is important, as well as what is urgent. This roadmap went on to inform their support for various policies and programs. - 22 - MICHIGAN DREAM RESTORED REPORT - ©2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION -

Jobs and new job creation are clearly the dominant priority to move from today’s Michigan “reality”. Michiganders do see a variety of public good investment areas contributing towards that goal and moving Michigan closer to its “ideal”. Figure (13) reflects the value and priorities among a variety of public goods emerging from the focus group discussions, and where these priorities ranked in terms of urgency and attention.

Respondents were asked to rank priorities and urgency among a list of problems and issues facing Michigan, in addition to improving the economy and jobs: “Which issues and priorities do they believe are ‘urgent and need to be addressed immediately,’ ‘not urgent but still very important and should be dealt with soon,’ ‘important but can wait,’ or not ‘important at all?’” Figure (14) on the next page reflects answers from the broad citizen survey regarding public priorities and the urgency of attention to these priorities.

PRIORITIES Figure 14.

It is important to note that these survey findings mirror sentiments expressed in the focus groups: citizens want public good investment, coupled with reforms, to ensure tax dollars are spent well for real impact. Across broad demographics and political orientation, citizens want many of these priorities addressed, including urgently and through public investment—but they also want reform of how investments are made, so they get something they value for their money, and know it is not wasted. See strong priority in Figure (14) for dealing with “high taxes and government waste,” which shows citizens want better “bang for bucks”.

FROM “REALITY” TO “IDEAL” Priorities Facing Our State Messages and Policies that Resonate with Michigan Citizens Given who we are as Michiganders, and what we value most about this state, and what we see as important and urgent priorities to restore the Michigan “Dream”, Michigan citizens are attracted to policies and programs for rebuilding and reinvesting in our assets, if they are organized to respond to and deliver on our core values. The most powerful values and messages about what Michigan citizens want include:

• Economic opportunity in return for ‘hard work’, • A good place to raise a family, and keeping family close - by having communities to be proud of, that attract business, and keep our kids from leaving, • Having good places to escape (recreate, enjoy the outdoors, lakes, “Pure Michigan”) – as respite from ‘hard work’ and as part of having a good place to raise and be with family. Focus group discussions revealed which values drive attention to different categories of public good investment, and again, where the priorities are in terms of immediate “must haves,” alongside longer-term aspirational goals for matching the Michigan “reality” with the Michigan “ideal”. Figures (15) and (16) illustrate focus group findings, and how policies and programs attending to these priorities might be thematically linked or bundled to appeal to broader values and citizens’ goals for Michigan.

FROM “REALITY” TO “IDEAL” Figure 16.

As reflected in Figure (16), there is strong identification and broad support across politics, geography, socioeconomics and ethnicity for particular policies and programs that were attuned to these Michigan citizen values and priorities. There also appears to be a potential opportunity to organize, or bundle, several discrete policy and investment ideas together, in that, they speak to particular broadly shared Michigan values and attend to economic priorities Michigan citizens believe will realize those values21 . Priority public good investment areas, and the values they support and animate include:

Community Vital Services – City/Community Revitalization: A top citizen urgent priority is public safety/crime, core services, good roads and fix decaying infrastructure. All are viewed as critical for realizing values of having community to be proud of, good neighborhoods in which to raise a family, and keeping family close. These elements are understood by Michigan voters to be essential pre-requisites for economic growth by making it possible to attract business, and keep people and our kids here, and making cities and communities places people want to live. 21 This is also very consistent with the effective strategies of state’s like Minnesota where the concern for clean water, the outdoors, parks and recreation, and arts and culture—were “bundled” into the Clean Water Land and Legacy Act—whereby citizens overwhelmingly voted in 2009 to raise an increment of a sales tax for 25 years, to safeguard these vital, defining assets.

As a consequence, focus group participants supported, and the citizen survey confirmed strong support for a Vital Services Fund dedicated to all core services in communities (safety, fire, police, roads, parks, libraries). Specific proposals for Road/infrastructure funding also ranked very high. Figure (17) summarizes focus group findings around Community Revitalization strategies.

Figure (18) shows the positive responses from the survey on a 1-100 scale of the top strategies tested for comunity basic services, transportation and infrastructure:

69.84

mass transit

road/infrastructure

80.996

vital services fund

83.014

FROM “REALITY” TO “IDEAL” A variety of policies focusing more directly on core city and urban revitalization were also tested. Again, the Vital Services Fund was very attractive as a means to accomplish this goal, as was a proposal to build out core city economic assets and activities through development of focused Innovation Districts (such as Midtown Detroit, or Grand Rapids Downtown-Medical Mile), particularly after it replaced a similar proposal for a 21st Century Places Fund. Figure (19) shows the most appealing strategies confirmed by the state–wide survey for particular urban redevelopment strategies:

76.582

brownﬁeld tax credit

78.284

urban innova;on district

83.014

vital services fund

Education and Higher Education Public education generally, and better access for higher education in particular, were seen as ways to deliver on values of economic opportunity in exchange for hard work and having a good place to raise a family. Voters strongly support investing more in higher education and better access to higher education, but, in doing so they want to get something in return, and they want to reward those who work hard for it. Programs that did so, were attractive to citizens in the focus groups, and surveyed favorably across demographics, including:

• Michigan Corps: Higher Education funding in return for service to the state; and a • Stay in Michigan College Fund: college loan forgiveness for those who stay working in Michigan

Figure (20) illustrates the appeal of various strategies tested in focus groups, and why citizens responded more favorably to some then others:

Figure (21) shows the broader public appeal of many of these initiatives that were favored in the focus groups:

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FROM “REALITY” TO “IDEAL” Also as seen in Figure (21) a number of ideas tested in the focus groups that would pay for 2-4 years of post-secondary education for all, became attractive to citizens when it was defined in the survey question as a Michigan Promise to those who were willing to work hard for it; e.g. stay in school and get good grades. The survey question asked citizens how appealing a program was that would guarantee 2-4 years of post-high school education for every Michigan high school graduate who wants to go to college and maintains a good grade point average. Similarly, when introduced late in the focus groups, replacing ideas that were gaining no support, a STEM scholarship fund to retain students in science, technology, engineering and math, did well, and polled extremely well, in that it promises to return something to Michigan for students willing to work hard in these needed fields. Scholarship recipients would stay in Michigan and contribute their talents to the state.

Innovation/New Businesses Citizens want to support the development of the jobs and businesses of tomorrow in Michigan. They are not sure, however, what those businesses are, and are leery of picking “winning” sectors or industries. They do know they can’t rely on autos as the state’s primary future economic engine. They also strongly want to reward hard work with opportunity in helping new entrepreneurs by supporting new businesses, and entrepreneurs who are committed to Michigan. Consequently:

• A Hatch Michigan Fund: to provide seed support for new Michigan entrepreneurs committed to Michigan, was very attractive in both the focus groups and the survey. Figure (22) summarizes the focus group discussion and preferences among new business and innovation support strategies in terms of their favorability:

Figure (23) below reflects the strong appeal of the Hatch Michigan Fund in the broader citizen survey. A Michigan’s Natural Resource Innovation Fund also began to gain substantial support in the survey when framed as investment in emerging industries that build on particular Michigan natural assets: clean energy, water, food and agriculture. 100 90 80

83.324

77.761

70 60 50 40 30 20 10 0 Hatch Michigan

Michigan Resources Innova>on Fund

Outdoors, Recreation and Culture Outdoors, recreation, lakes and “Pure Michigan” (with its clean connotation) are huge identifiers for all Michiganders. For Detroit and urban residents, this takes the form of a desire for “clean” communities with city streets and parks that are maintained, and recreation opportunities like parks and community centers available and well maintained. These speak to values Michiganders hold relative to wanting places to escape with family, which is certainly viewed as part of what makes Michigan historically unique and special. Michigan’s natural assets were also clearly seen as economic advantages. “Pure Michigan”—if made real—is both a place for us to enjoy, and a magnet drawing visitors, dollars and (potentially) new residents and business. Michigan’s outdoor and natural assets were viewed as less of an urgent priority for new investments, however, than more urgent “basic needs” like: core services and public safety and new business creation.

• Citizens did respond very well across demographics to a Pure Michigan Fund: more robust funding for outdoors, recreation, clean water, parks, tourism promotion and natural resource investment that pays economic dividends - and that delivers “clean” cities with parks and well-maintained recreation opportunities for urban residents.

FROM “REALITY” TO “IDEAL” Figure (24) reflects the Focus group discussion of outdoor and conservation funding ideas:

Figure (25) shows the broad citizen appeal of the top strategies in for outdoors, and conservation funding, as well as the strong appeal in the survey of support for science, arts, and culture funding: 100 90 80 70 60 50 40 30 20 10 0

84.815

Pure Michigan Fund to support clean water, parks, greenways, tourism promoDon

77.433

Science, Arts and Culture Fund for science programs, libraries, art, cultural insDtuDons

When all ideas are looked at together, as shown in Figure (26), the citizen survey confirms the broad appeal (in the 75-90% share approval range) for a number of significant and specific ways to organize public investment in Michigan’s public goods. The fact that these ideas generate broad appeal, even in a not fully developed or “optimized” form, is very encouraging. The blue bar also shows the percentage of respondents who gave a 100% appeal ranking to that particular investment policy idea. Figure 26.

FUNDING THE AGENDA Funding The first wave focus groups and citizen survey began, but did not finish, the job of integrating particular financing mechanisms that citizens are willing to support with discrete investment policy proposals, or “bundles” of proposals. These “bundles” complete the citizen “value” chain shown below in Figure (27).

The next step and final work in the project will be to refine and tighten the message and policy-program agenda—linked to funding mechanisms that align with Michigan citizen values—through additional citizen research. Findings from the first-phase focus groups and surveys do indicate Michigan voters across the spectrum are willing to support increased investment in these important public good priorities if framed to align with their values, organized and delivered in ways that get results they care about. Respondents in the focus groups and surveys did support some forms of taxes, fees, bonds, and public-private partnerships more than others. In differing degrees, respondents were willing to pay more themselves, while always supporting investments that needed to be made by others (e.g. the wealthy, polluters, etc.).

Figure (28) below summarizes the preferences for tax revenue raising options from focus group discussions:

Figure (29) confirms these preferences from the broader citizen survey results:

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FUNDING THE AGENDA There appears to be some opportunity to develop and fine-tune particular investment proposals that could connect with emerging Michigan values. A progressive income tax could possibly be framed to appeal to a broad demographic in order to support having the better off pay more to help reward the hard work of all (by paying for education, for example), and to make the state a great place to raise a family and keep family close. Potentially, a reduced sales tax with extension to more services could also be framed to win support. Sin taxes, not surprisingly, were highly rated to pay for any and all needed investments in Michigan values. Also there is significant support for making polluters pay, and taxing heavily extractive industries that take Michigan’s assets and run; in order to pay for the outdoors, clean water, and natural assets that make Michigan a great place to escape and raise a family, and make Pure Michigan more of a reality. Finally, there is opportunity to earmark taxes and other revenue raisers, to pay for particular program and services. As reflected in Figure (30), revenues clearly targeted for particular, valued public good investment categories reassure citizens that they get something they care about for their investment. In focus group discussions a number of revenue-raising options that don’t test well standing alone in the survey (such as local/county taxing options), do much better when clearly dedicated to a priority. For example, funding local/regional transportation or vital services—with a local tax or millage (coupled with a reduced state gas tax)—did well, if clearly earmarked and organized in a manner perceived to deliver results. Figure (30) reflects the public’s preference for earmarked and dedicated funding streams:

CONCLUSION Final Thoughts Listening to Michigan citizens talk about our state, you can’t help but be impressed with their deep affection and pride in the characteristics that make Michigan special, and the character of the people and families that that have built the state. Resilient, “hard workers” who gave life to great industries; communities that once were, and can be again, great places to come seeking new opportunity; raise a family with extended family close by; and see the next generation make a better life. A state with great beauty and a special quality of life where we can escape from work with our family to camp, fish, hunt, boat and hike, and enjoy our woods, streams, lakes, parks and cottages. You also can’t help but sense the anxiety about where the new jobs will come from, what industries beyond autos can be built here. Sadness over family members leaving the state, and seeing institutions and assets— from our schools and universities, to once proud cities, to our parks and road system—that have been such a source of pride over the years, diminished. There is also significant understanding, hope, and broad support clearly emerging from these focus groups and survey work. Hope that if we rebuild our public assets and find ways to smartly invest in our people, our communities, the next generation of entrepreneurs, and the promise of this beautiful state that is “Pure Michigan,” we can re-animate the “Michigan Dream” life and lifestyle that has defined us for generations.

PROJECT TEAM Project Team John Austin, Michigan Economic Center at the Prima Civitas Foundation Tremaine Phillips, Prima Civitas Foundation Steven Bennett, Prima Civitas Foundation Holly Hetzner, Prima Civitas Foundation Phil Roos, RoosterWorks Consulting Dave Waymire, Martin-Waymire Associates, consultant

About the Michigan Economic Center at the Prima Civitas Foundation The Michigan Economic Center is a center for ideas and a network of state and local leaders and citizens working to:

• Advance a vision for Michigan’s economic renewal; • Provide policy ideas and solutions that realize the vision; and • Engage and support a diverse network of citizens, leaders, and organizations in advancing the vision and making ideas for a more competitive, innovative, and global Michigan a reality.

MEC

MICHIGAN ECONOMIC CENTER

Michigan Economic Center at the Prima Civitas Foundation www.MiEconomicCenter.org John Austin, Director 303 Detroit St. Suite 400 Ann Arbor MI 48104 734.474.3110 J.austin@primacivitas.org @John_C_Austin

ACKNOWLEDGEMENTS The Michigan Dream Restored Initiative - Public Goods Policy Development and Agenda-Setting Project, has been made possible by the generous support of the W.K. Kellogg Foundation. Financial support was also provided by a set of institutions and individuals who make up the Investor-Leadership Council of the Michigan Economic Center at the Prima Civitas Foundation who have given generously of their time and dollars including:

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Amber Arrellano, Director, Education Trust Midwest Todd Anuskiewicz, Retired Executive VP MERRA Derek Bailey, Past Chairman, Grand Traverse Band - Ottawa and Chippewa Indians Fay Beydoun, Executive Director, Arab American Chamber of Commerce Fred Blanck, Strategic Advisor, Wallside Windows Paul Brown, Founder, Front Door Insights Kathleen Cavanaugh, Cavanaugh Gallery Jonathan Citrin, Founder & CEO, Citrin Group Matt Clayson, Director, Detroit Creative Corridor Center Daniel Cherrin, Attorney, Fraser Trebilcock Paul Dimond, Senior Counsel, Miller, Canfield, Paddock and Stone PLC Steve Ender, President, Grand Rapids Community College Barbara Ryan Fuller, Director, Director, MI List Jan Garfinkle, Founder and Managing Director, Arboretum Ventures Robert Garvey, President, Thomas, Garvey, Garvey & Sciotti, PLLC Steve Hamp, Chair, New Economy Initiative; Michigan Educational Excellence Fund/EAA; Former President the Henry Ford William Hall, Director, Sustainability and Business Continuity, Chrysler Corporation Fred Hoffman, Of Counsel, Clark Hill PLC Mohamad Issa, Director, Global Educational Excellence Arthur Horwitz, Publisher & Executive Editor, Detroit Jewish News James Jacobs, President, Macomb Community College Riyaz Kanji, Kanji and Katzen, P.L.L.C. Dan Little, Chancellor, University of Michigan Dearborn William Milliken, Jr., Principal, Milliken Realty Company Jeff Padden, President, Public Policy Associates Phil Roos, former CEO, Gfk Strategic Consulting Gary Russi, President, Oakland University Dan Scripps, Vice-President of Capital Innovation, Advanced Energy Economy Dan Varner, CEO, Excellent Schools Detroit Arnold Weinfeld, Michigan Municipal League Foundation Katherine E. White, Professor of Law, Wayne State University

LETTER OF THANKS As Director of the Michigan Economic Center, I would also like to acknowledge the critical support, guidance and help in this project from the Prima Civitas Foundation Board of Directors and staff, including CEO Steven Webster and the staff team including Tremaine Phillips, Steven Bennett, Dan Thompson, and Holly Hetzner, who have made invaluable contributions to this work and this report. The Advisory Board assembled for the project has been an invaluable resource and source of guidance, ideas, and continued collaboration moving forward. The MEC thanks Advisory Board Members: Peter Battani, Kalamazoo County Administrator; Regina Bell, former Policy Director, Governor Granholm; Fred Blanck, Strategic Advisor, Wallside Windows; John Bebow, President and CEO, Center for Michigan; Mike Boulus, Executive Director, Presidents Council State Universities of Michigan; Rosalynn Bliss, Grand Rapids City Commissioner; Paul Brown, Founder, Front Door Insights; Andy Buchsbaum, Executive Director, National Wildlife Federation Great Lakes Region; Paul Dimond, Miller Canfield, former National Economic Council; Rob Fowler, President, Small Business Association of Michigan; Dan Gilmartin, Executive Director, Michigan Municipal League; Don Gilmer, former State Budget Director, Kalamazoo County Administrator; Thomas Haas, President, Grand Valley State University; Mike Hansen, President, Michigan Community College Association; Steve Hamp, Chair, New Economy Initiative; Michigan Educational Excellence Fund/ EAA, Former President the Henry Ford; Jim Jacobs, President, Macomb Community College; Gilda Jacobs, President, Michigan League for Public Policy, Lou Glazer, President, Michigan Future, Inc.; Chris Kolb, Executive Director, Michigan Environmental Council; Glenn Mroz, President, Michigan Technological University; Timothy J. Nelson, President, Northwestern Michigan College; Tremaine Phillips, Policy Director, Prima Civitas Foundation; Cyndi Roper, Executive Director, Michigan Voice; Karla Swift, President, Michigan AFL-CIO; Dan Varner, CEO, Excellent Schools Detroit; Kayla West, former CEO Lake Superior Hospice, American Red Cross, Marquette; Tom Woiwode, Director, Greenways Initiative, Community Foundation for Southeast Michigan; Lisa Wozniak, Executive Director, Michigan League of Conservation Voters; -- for their service and commitment to this work. Iâ&#x20AC;&#x2122;d also like to thank Bruce Katz, Vice-President of the Brookings Institution, and Director of the Metropolitan Policy Program, and Brookings colleagues Jessica Lee, and Jennifer Vey for sharing insights and perspectives gained from their work on state investment strategies across the nation. I also thank EPIC- MRA its leadership and staff for active, timely and high quality assistance with the citizen survey, in particular Bernie Porn, John Cavanagh, and Kelly Sullivan. Finally, I would like to thank a key set of individuals: Steve Hamp, Lou Glazer, Phil Roos, and Dave Waymire, for more than a year of work and planning to develop and set the course of this initiative; Chris Dorle for pitching in joining his former colleague Phil Roos in planning, executing and analyzing the focus groups; and Cassie Basler for aiding with final edits, format and finish of the report. February 15, 2012

John Austin Director, Michigan Economic Center - 40 - MICHIGAN DREAM RESTORED REPORT - ÂŠ2013 MICHIGAN ECONOMIC CENTER AT PRIMA CIVITAS FOUNDATION -