ONE-on-ONE Governor
ONE-on-ONE Governor Jennifer Granholm: Committed to ‘One Michigan’ Jennifer Granholm is in her fourth year as Michigan’s head of state. The Democrat answered our questions on the economy, small businesses and the Chaldean community. Chaldean News (CN): Grocery and liquor stores are among the most heavily regulated and taxed businesses in the state. It seems like not a year goes by where state government is not asking for more sacrifice from the food and beverage industry. Why do you think this is the case? Governor Jennifer Granholm (JG): My administration is continuing to work to streamline regulations and make taxes more competitive in Michigan for all businesses, including small businesses. Early last year I proposed a tax restructuring that would have provided small businesses with a 40 percent tax cut. In 2004 I signed into law Public Act 407 that permits grocery and liquor stores to sell bottled liquor for off-premise consumption at a price higher than the minimum retail selling price established by the Liquor Control Commission. These types of stores don’t typically operate with large profit margins, and when faced with increases in costs and competition, they sometimes find that limited profitability further eroded. As a result, retailers had to either increase costs of other items — which make it difficult to compete with other retailers — or reduce their expenditures, including reductions in employment. P.A. 407 helps grocery and liquor stores deal with increases in their business costs by granting off-premise retailers the same flexibility to set their selling prices consistent with market demand and competitive pressures. I am also pleased to report that Michigan was the first state in the nation to implement a streamlined, web-based permitting process, MiTAPS, to cut down on processing time. Governing magazine recognized the work we have done to make Michigan businessfriendly by naming Michigan one of the country’s best managed states. Even with all this work there is no doubt that we are currently in tough budget times, and everyone in Michigan is feeling the squeeze. That is why we have resolved nearly billion from state spending, and why I will continue to work to grow our economy and help small businesses. “Independent business operators are critical to the success of Michigan’s economy.” – GOVERNOR JENNIFER GRANHOLM CN: Independent stores are the only viable businesses in some inner-city neighborhoods and have filled the void left by the abandonment of places like Detroit by all the major chain stores, including Farmer Jack, Kroger, Meijer, Wal-Mart, Costco and Home Depot — yet local and state government do very little to support these types of businesses. What can be done to encourage more independent operators to stay in Michigan and continue to open businesses here? JG: Independent business operators are critical to the success of Michigan’s economy. That is why we are working to build a strong business climate across the state. More than 1,650 small businesses opened their doors in Michigan in 2005 and Michigan was ranked the number five small business-friendly state in the country by the Small Business & Entrepreneurship Council’s Small Business Survival Index. I want to continue to build on this success and make Michigan more business friendly for all businesses. We are doing this by establishing a more competitive tax environment, cutting bureaucratic red tape by streamlining the permitting process and restructuring job training programs to provide more targeted training. CN: What effect is Michigan’s troubled auto industry having on the rest of the state’s economy? JG: Because Michigan’s economy is so reliant on automotive and manufacturing jobs, our economy has been particularly hard hit by recent global changes in the marketplace. But autos will always be an important part of Michigan’s economy and identity. That is why we are fighting to keep our manufacturing jobs. I recently signed legislation providing 0 million in tax cuts and needed incentives for Michigan manufacturers to invest in their facilities, create new jobs and consolidate operations here. I am also continuing to call on President Bush to meet with America’s automotive sector business and labor leaders to implement federal policies that will save good-paying American manufacturing jobs. My administration will continue to work to save our manufacturing jobs, but we need a partner in the federal government. CN: You recently signed a package of bills for the 21st Century Jobs Fund, which will invest some billion to create new jobs and help diversify the state’s ONE-ON-ONE continued 28 26 CHALDEAN NEWS FEBRUARY 2006
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