Gubernatorial race reaches final leg

November 6, 2006 —

It's coming down to the wire.

The gubernatorial election between incumbent Democratic Governor Jennifer Granholm and Republican Dick DeVos has been one of the closest governor's races in the nation throughout the election cycle. While Granholm has shown slight leads in recent polling, the race is still too close to be decided before the election.

Both candidates shared their direction for Michigan with the Vanguard on separate occasions.

The economy

The next governor of Michigan will be the candidate who is able to convince a majority of Michiganders that they have come up with the kinds of economic policies necessary to pull Michigan's economy upward. The September unemployment rate in Michigan was 7.1 percent, well above the national average of 4.6 percent for the same month.

Granholm acknowledges that Michigan has experienced tough economic times over her four-year term, but she blames macroeconomic policies and the singular reliance on the slowing automobile industry.

"I think that my opponent would have people believe that I'm single-handedly responsible for chasing away thousands of jobs in Michigan, which is utterly ridiculous," Granholm said.

For DeVos, economic change can only come if Michigan reforms its overall business environment, which includes reforming the legal environment.

"It's about creating a climate where job makers can thrive in Michigan," DeVos said. "Right now, taxes are too high, there's too much red tape, and job makers can't get answers."

Granholm wants to continue the transformation of Michigan's traditionally manufacturing economy into one that is more economically diverse, including high-tech jobs.

"We've got a $2 billion 21st Century Jobs Fund...we're the only state that's doing this," Granholm said.

The fund, which comes from the tobacco settlement agreement, invests in new high-tech manufacturing, alternative energy, and homeland security measures.

DeVos wants to make Michigan a world leader again in the export of manufactured goods, both within the United States and abroad.

"We can create jobs by getting competitive again and by leveraging the skilled workers we have in our state to make products that we can sell all over the world," DeVos said.

Much of the debate between the candidates has centered on what to do regarding the Single Business Tax. Pursuant to Public Act 115, the Single Business Tax was scheduled to be phased out by one-tenth of a percent per year from its 1998 rate of 2.3 percent; however, due to fiscal constraints on the state budget the deductions are currently suspended.

DeVos favors the immediate elimination of the tax, which he has labeled a "job killer."

"I will replace the revenue from the Single Business Tax with a business tax either on profits or gross receipts," DeVos said.

Granholm favors the elimination of the tax, but only once the lost revenue has completely been funded. She favors restructuring business taxes so that they "capture growth for the future."

College funding

Both candidates stressed the importance of having a highly educated, well-trained workforce reflexive to the needs of the 21st century. In order for Michigan to achieve this, both realize that tuition rates need to be kept affordable for the average working family.

DeVos wants to rein in the rising cost of college tuition at state-supported universities.

"College tuition in Michigan has risen 50 percent in the last four years, and that is unacceptable," DeVos said.

Granholm was critical of DeVos's plan to eliminate the Single Business Tax, believing the repercussions would eventually trickle down to affect Michigan's college students.

If the $2 billion funding gap from the elimination of the Single Business Tax is not restored, "you better believe the first place they are going to cut is higher education, because they can always fill the gap by increasing tuition," Granholm said.

Granholm also argues that the governor ultimately cannot control tuition rates at state universities, as the final tuition rates are established by each university's Board of Control.

"The problem is individual colleges set their own tuition rates, and not the governor," Granholm said. "(Universities) are autonomous, and I can only give them the incentive to keep rates low."

DeVos contends that Granholm hasn't done enough in the past four years to keep tuition increases from outpacing the inflation rate.

"What matters most is that we keep college expenses affordable for families...and it's a priority that the current administration clearly does not have," DeVos said.

Why stay in Michigan?

Michigan's economic doldrums have sent much of the state's college-educated fleeing. Michigan currently ranks 49th in the retention of its college graduates. The phenomenon has attracted national attention, as witnessed by a recent article in the New York Times that highlighted many of Michigan's skilled tradesmen leaving for jobs in Wyoming. Out-of-work teachers, a surplus market in Michigan, are being poached by booming states in the Sun Belt.

Against the economic malaise, Granholm has a request for those considering a move to a better economy: "We are going to be all right."

In order to keep recent college graduates in Michigan, Granholm wants to create a low interest, housing loan program for people who want to be "urban pioneers." The loan will be 2 percent below prime for recent college grads in struggling cities - which includes Saginaw.

"When you choose to stay in Michigan, we want to make you a priority," Granholm said.

DeVos says many young professionals are forced to leave for other states because they simply cannot find jobs in Michigan.

"I've often said that if our young people choose to leave that's their right, but shame on us if they can't choose to stay," DeVos said. "We will create opportunities for our young people to stay in Michigan and chase their dreams here."

What's next?

Regardless of who prevails, the next governor will have serious problems to face. Both candidates face budget deficits and a stubborn unemployment rate.

Another Granholm administration faces a Republican-dominated Legislature, unless Democrats are able to seize control of both chambers.

A DeVos administration may find the fiscal constraints placed by his elimination of the Single Business Tax either politically unfeasible or economically cumbersome.

While the election's end may signify a welcome end to the omnipresent political advertising, it also represents an end to open, and widely disseminated discussion about the future of the state. Regardless of who emerges victorious, the next governor will be key to many college graduates getting jobs in the state - an issue that will always remain in the minds of students.

At the end of the day, everyone - including students - should keep in mind that, despite what one may think, a vote matters. It matters because it is the political representation of a choice. It matters because so many people don't have that opportunity. Truly, voting is not a right, but a privilege. Take advantage of it.