With Michigan on the ropes, gubernatorial candidates agree: It's time for change in Lansing
Michigan governor hopeful Virg Bernero has watched the gubernatorial candidate pool dwindle in recent weeks. He now faces only one opponent heading into the Democratic primary.
"When I started, I mean, there were a lot of people in the race," he told AnnArbor.com on Friday. "Now it's down to two. I might win by attrition. I might be the last Democrat standing. Unlikely. But I do expect to be the last Democrat standing Aug. 3."
Michigan gubernatorial candidate Virg Bernero mingles with the crowd during Friday's candidate mixer event in Ann Arbor.
Ryan J. Stanton | AnnArbor.com
Bernero, who faces House Speaker Andy Dillon in the primary, made an appearance Friday afternoon at the Ann Arbor Area Chamber of Commerce's candidate mixer event.
"Things are going very well," he said of his campaign. "I think I represent the core values of the Democratic Party — proudly so. But at the same time, I'm a pro-business Democrat, because there's no way to be pro-labor without being pro-business. We've got to create jobs. We have got to grow jobs and opportunity in this state. That's what we're all about."
More than 80 candidates for local, state and federal offices attended Friday's event, including Republican gubernatorial candidates Rick Snyder and Pete Hoekstra, both of whom have ties to Ann Arbor.
Snyder, of course, is an Ann Arbor venture capitalist known for his time as president of Gateway Computers and as founder of Ann Arbor SPARK. Hoekstra, a former Fortune 500 business executive from Holland who now serves in Congress, earned his MBA from the University of Michigan in Ann Arbor in 1976.
"I came out of the MBA program with a great foundation in a business climate," Hoekstra said. "Then I had the opportunity to hone my leadership skills for 15 years at Herman Miller and practice them in Congress. Without the background that I got at the University of Michigan, I don't think I would have been equipped to do the kinds of things that I've had the opportunity to do over the last 30 years."
All three candidates cited the importance of education in moving Michigan's economy forward. Bernero said that's especially important in his household.
"My wife's a 20-year public educator in the city of Lansing," he said. "Education is a topic near and dear to our heart. It has always been a priority in our household, and just like it's a priority in most everybody's household. It needs to be a priority at the state budget level and that's where it's gone wrong."
Bernero, mayor of Lansing, said he's been witness to several problems at the state's capital where he sees a broken system and misplaced funding priorities.
Rick Snyder
"Ultimately, we've got to make some tough decisions," he said. "Our system of governance of schools is broken. We've got fragmented government. We've got fragmented schools. We're spreading out the money that we spend. We're spending a lot of money on management fees. We've got 83 counties in Michigan, but 550 school districts. The math doesn't add up. It's unsustainable. We're going to have to have some consolidation of services."
Snyder said the current discussion around education in Lansing is flawed.
"All they talk about are funding levels — this funding level or that funding level," he said. "And I'm really disappointed no one's asking the important question. And that is what do we need to do to get each child in our schools a great education each and every year?"
Snyder's campaign has grown in the polls recently. His platform centers around reinventing Michigan and creating jobs.
"We need to reinvent Michigan, not just fix it," he said. "I'm a real world job creator and what we need in this state are more and better jobs — and keeping our young people here as opposed to career politicians just continuing to spend our money."
Snyder said the role of government isn't to create jobs, though.
"It's to create an environment and let free enterprise work," he said. "We've got to get rid of the Michigan Business Tax. It's the worst tax in the United States and I've got a proposal to replace it with a flat 6 percent income tax."
Hoekstra said the state needs to take advantage of the asset it has in the number of educated people coming out of universities like the University of Michigan and Michigan State University and the research that goes on there.
"Create an environment where there's a lot less bureaucracy, a lot less rules, lower taxes, and we will be amazed by what smart people in Michigan can do to get this economy moving again," he said.
Bernero said he wants to make Michigan the No. 1 place in the nation to do business. In the next couple of weeks, he said, he plans to outline a 10-point economic plan on how to accomplish that goal. He said K-12 education is a major focus.
"We'll have an all-out assault on the dropout rate," he said. "Education is economic development and when you have a dropout rate of 30 to 50 percent in your urban centers, that is outrageous. That is mortgaging your future. We cannot sustain that. We're creating the prisoners of tomorrow by tolerating a dropout rate of that level. No civilized society — no first-rate society — can sustain that."
Bernero said he's the best candidate for the job based on his proven track record in Lansing. He cited the city's AA-plus credit rating and the fact that Lansing hasn't raised taxes or spent down its reserves despite the deep recession impacting Michigan.
"We've got $500 million in new investment, we've got new jobs, we have cranes in the air, we've diversified our economy, we have high-tech bioscience, IT, insurance and advanced manufacturing," he said. "You name it, we're getting it done. And I believe what I've done in the city of Lansing, I can do for the state of Michigan."
Bernero served previously as a county commissioner, as well as a state representative and senator in the Michigan Legislature. He also worked as executive director of a statewide nonprofit association that helps families and children with mental illness.
Pete Hoekstra
"I've been mayor for five years now," he said. "I'm on the front lines. I've been on the receiving end of some of the nonsense that goes on over at the state capitol. I've been on the receiving end of the budget cuts, and the unfunded mandates, and the pure nonsense, and the gridlock that goes on over there — the partisanship that is hurting people.
"The last thing we need is more of ... the same folks who can't get things done at the capital, who can't properly fund education, who can't get a budget done on time, who've had two government shutdowns. The last thing we need to do is have more of that. We need bold leadership and new leadership. We need a change in direction."
Both Snyder and Hoekstra consider themselves proud Republicans, but both say they're willing to work with Democrats on change in Lansing.
"What we're looking for in Michigan is people who can get solutions," Hoekstra said. "I've worked with Barney Frank on key legislation reforming Federal Prison Industries. I've worked with John Conyers on key issues. I've worked with John Dingell on certain issues. I work on getting things done. I'll do it with Republicans and Democrats and independents."
Snyder echoed those sentiments.
"I'm a proud Republican, but part of this effort is to bring Michiganders together," he said. "We've been too divisive in this state and we need to create and environment where we can win together. And my campaign's about running a very positive campaign, saying there's opportunities for us to move Michigan forward, not spend time on negative things or just bickering."
Bernero was thrust into the national media spotlight last year when he became the leading spokesman for Michigan's struggling automotive companies. His scathing criticisms of Wall Street and Washington led CNN to call him "America's angriest mayor."
"I may be," he told AnnArbor.com on Friday. "But there's a lot to be angry about and my anger is nothing like the anger that's out there in the streets in Michigan. People are angry and they're expressing it in a variety of ways. You see this Tea Party movement. People want to get involved. You see people spending the night at the capitol, putting up tents trying to get the message through to the Legislature to do something. For gosh sakes, we're in a crisis here and these people are dawdling. These folks don't seem to understand the urgency."
Bernero said Michigan is on the ropes.
"People are hurting and it's been business as usual, politics as usual and that's unacceptable," he said. "Am I mad? Yes. But I'm going to do more than just beat my chest."
Before coming to Friday's candidate mixer, Hoekstra said he spent the afternoon working for a company in Ypsilanti as part of his statewide "Michigan Jobs Tour."
"I'm talking to businesses all over the state," he said. "Just about every place that I go to they identify either regulatory burdens or barriers that have been put in place by the state to them growing their business. I did a job at Coach's Catastrophe Cleaning here in Ypsilanti. When the Michigan Business Tax came into place, it increased their taxes sixfold. That is a barrier to them being a successful company, growing, expanding and hiring more workers."
Ryan J. Stanton covers government for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
rusty shackelford
Mon, May 17, 2010 : 10:16 a.m.
"It's to create an environment and let free enterprise work," he said. "We've got to get rid of the Michigan Business Tax. It's the worst tax in the United States and I've got a proposal to replace it with a flat 6 percent income tax." I want everyone to realize that what Snyder is calling for is raising your taxes so he can give the money to companies. There is no way around it. "Flat" tax does not mean "lower" tax. The current income tax rate is about 4%. Snyder is just a corporate lackey. No surprise. Seriously folks, that is the GOP ideology distilled: raise taxes on every citizen so you can cut them for businesses. I'm sure the many unemployed citizens of MI will just love this new "flat" tax hike! And as for creating jobs. Um, that's just hooey. First of all, what does Snyder know about creating jobs in the US? In terms of creating jobs in foreign countries at American workers' expense, he knows a lot. But on a policy debate it's clear that the states with the lowest taxes (e.g. Mississippi) have the lowest corporate investment rates while states with high taxes (IL, CA, NY) have very high business activity. Tax rates have little to do with investment, and MI's business taxes are almost exactly at the median in the country to begin with. Don't let the Republicans raise YOUR taxes so they can give YOUR tax money to a bunch of companies who will say just about anything to get a tax break! Those companies almost never keep their end of the bargain, either. No to the Snyder corporate giveaways! I'll keep my money, thanks. I thought that was supposed to be the GOP's point of view as well. Apparently giving money to the rich trumps cutting taxes.
Speechless
Sun, May 16, 2010 : 4:12 p.m.
I'm sorry that Alma Wheeler Smith dropped out the Democratic primary for governor. At this point, it appears Virg Bernero holds far more promise than any of the other remaining candidates. As a very good start, he has discomforted other politicians and corporate media outlets by reminding them that large numbers of working class people and unemployed still live in Michigan and still matter, and that their needs should be heeded and given priority. The statewide nominations of both parties should not continue to be dominated by Michigan's corporate masters and their campaign contributions. He also earns immediate respect as one of the few politicians anywhere who directly challenges Faux News on the air in a way similar to what Jon Stewart and Rachel Maddow do. (Although sometimes I wish he could mix his Jim Hightower-like populism with the deadpan satire of the Daily Show's John Oliver.)
CuriousOneMi2
Sun, May 16, 2010 : 8:50 a.m.
Murrow's Ghost: As you are interested in fairness, it only seems fair to acknowledge that: (1) Congress does more than bring home pork. They legislate. Their legislations such as the stimulus bill has not stimulated Michigan. Currently, 8 of the 15 members of Congress from Michigan are Dems. (2) The Michigan economy expanded during the Engler era. There was no economic crisis. He did leave a budget deficit for Granholm to address (i.e. a fiscal challenge). (3) Michigan has been led by Dems in the governor's office, 2 US Senate seats, the mayor of Detroit and a majority of the State House. Repubs and Dems are part of the problem. Assigning equal blame in Michigan seems like quite a stretch, however, when one party has been in a "leadership" position.
braggslaw
Sun, May 16, 2010 : 6:46 a.m.
Any elected official (Democrat or Republican) is faced with an array of special interestes in Michigan that range from the MEA to the UAW. These vocal minorities have influence that is far greater than their numbers. I don't really care about the D or R in front of a politicians name. I care about reducing the size of govt., lowering taxes and creating more efficiency in govt. We need businesses in Michigan not more govt. California, Michigan, New Jersey are similar to Greece, Portugal and Italy and I fear will end up in the same mess. There are many actions the state (and local municipalities) could take to improve their overall efficiency with no loss of services to the taxpayer. 1. Allowing choice in schools. 2. Privatizing non-value added govt. functions. 3. Creating a system where state employees contribute to their retirement. (similar to the 3% contribution that has recently passed in the state legislation) 4. Consolidation of all state medical insurance... (eliminate the middleman MESSA). 5. Further adjustement of the SBT.
Edward R Murrow's Ghost
Sat, May 15, 2010 : 9:19 p.m.
@Curious: 1) Members of the United State Congress do no legislate in the State of Michigan, though one could certainly argue that the Michigan Congressional delegation has done a less than adequate job of making certain that our state received its share of federal monies. 2) At present, 8 of Michigan 15 members of the House of Representatives, are Republicans. Before the election of 2008, 10 of the state's representatives were Republicans. 3) Michigan's current economic crisis began in Governor Engler's last term when he had Republican majorities in both houses of the legislature. 4) As noted above, Republicans controlled both houses of the legislature in her first term and the state senate in her second. Any fair reading of these facts must lead one to conclude that Republicans are at least as responsible for the state's fiscal mess as are the Democrats. Good Night and Good Luck
CuriousOneMi2
Sat, May 15, 2010 : 8:58 p.m.
Snyder is clearly the best candidate. He wants to address Michigan's excessive corporate taxation and replace some revenues with a corporate income tax. He wants to restructure government. Michigan has failed over the last 8 years. While the lack of bipartisanship is partly to blame, Michigan politicians have largely exhibited a "D" behind their names (e.g. governor, 2 US Senators, majority in US House, majority in State House recently, major of Detroit with KK).
NoSUVforMe
Sat, May 15, 2010 : 8:26 p.m.
Michigan is a victim of Republican deregulation that allowed banks to run rampant over the interests of the people. The collapse of auto sales was the result of the disastrous economy from the Bush era of deregulation and incompetence. Even the oil spill in the gulf is the result of gutting of regulation. The right-wing will always blame unions and teachers, immigrants, and minorities. I hope they keep doing so as they marginalize the Republican Party of Sarah. Those who want to blame Democrats for the debacle we are facing in Michigan and our country are not being truthful.
Edward R Murrow's Ghost
Sat, May 15, 2010 : 5:44 p.m.
"If Michigan cut the services and then lowered the taxes, workers in Michigan could support their families on $10.00 per hour and the jobs would return to the state." In what world? $10/hour x 40 hours/week x 50 weeks = $20,000/year income. In 2010 a family of four is considered to be living in poverty if its gross income is less that $28,672. See: http://www.fns.usda.gov/snap/government/FY10_Income_Standards.htm But if $10/hour is what the average blue collar worker makes in Tennessee, it proves that "right to work" really means "right to work very hard and remain very poor." It also might explain the proliferation of trailer parks in the state. Good Night and Good Luck
BenWoodruff
Sat, May 15, 2010 : 5:33 p.m.
Mikey2u, If Tennessee was so great, why did you "return" to Michigan?
Mikey2u
Sat, May 15, 2010 : 5:09 p.m.
Michigan is unattractive to new business because of out tax structure. I just returned from Tennessee and the difference in taxes is staggering. There is no Tennessee State Withholding tax. I paid $300.00 per year total property taxes on a $250,000 home. Full coverage insurance on a new vehicle is $500.00 per year and auto insurance isnt mandatory..Annual license plate fee for a new vehicle is approximately $30.00. There is a 10% sales tax on goods purchased but that is not that painful. Michigans budget is overwhelmed by a bloated bureaucracy and I havent heard a word from Virg Bernero, Andy Dillon, Rick Snyder or Pete Hoekstra regarding making the kind of cuts that would bring Michigan in line with states like Tennessee. If Michigan cut the services and then lowered the taxes, workers in Michigan could support their families on $10.00 per hour and the jobs would return to the state.
braggslaw
Sat, May 15, 2010 : 4:44 p.m.
Johnnya2, No greater words of entitlement could have been written. People should have what they earn not what they believe they deserve.
Edward R Murrow's Ghost
Sat, May 15, 2010 : 4:25 p.m.
"Time to turn out the Democrats. They have not got [sic] the job done." Republicans controlled both houses of the state legislature during Governor Granholm's first term. They have controlled the state senate for her entire second term. For eight years they have done all they can to stonewall the governor's initiatives. Surely they must share the blame for the fiscal basket case that this state has become. Good Night and Good Luck
johnnya2
Sat, May 15, 2010 : 3:20 p.m.
Saying the cradle to grave is no longer viable is the exact attitude that has caused the state to fail. People complain about teachers and union members golden benefits, but the fact is, EVERYBODY should have them. The problem is other industries fail their employees. They use them as disposable. Those that allow that, get what is coming to them. If Mr Snyder is so good at running his business, lets ask him how many of the Gateway computers were sold to government or education. The purchases of government helped his company. Take a look at KMART, which was a non-union, low wage company. They went bankrupt and stuck everybody else with their bills. Any person who shops at Wal Mart is feeding into law wages, and low prices without caring that the wages that are surpressed are their own. The gap between wealthy and poor has expanded over the last 30 years. If "conservative" thinking and supply side worked, the low and middle class would be getting the benefits of trickle down. THe philosophy is a failure. When the top tax rate in this country was 90% we built the interstate highway system and most families only had/needed one wage earner. Since the Reagan revolution two earners are worse off than the single wage earner of the past.
John Galt
Sat, May 15, 2010 : 2:53 p.m.
Time to turn out the Democrats. They have not got the job done.
Mick52
Sat, May 15, 2010 : 1:28 p.m.
Mayor Bernero was very vocal a year ago in regard to stimulus spending, more so than our "governor," and for a while sounded like a good prospect. But then his burden-tied to unions-became apparent and yes I think it would be more disaster as we have seen with Gov Granholm. Its not just unions however. MI does need an overhaul to assure efficiency and effective govt.
voiceofreason
Sat, May 15, 2010 : 12:51 p.m.
Virg Bernero=Jennifer Granholm But Virg is even more beholden to unions..........
Heidi Hess Saxton
Sat, May 15, 2010 : 12:34 p.m.
I can't help but wonder what is going to happen to charter school funding (again) if Mr. Bernano is put in the governor's seat. Having a wife in public school education for 20 years... It could go either way, I suppose. But I'm not optimistic.
Edward R Murrow's Ghost
Sat, May 15, 2010 : 9:55 a.m.
Businessmen, apparently, have a difficult time operating their businesses (e.g., BP, Halliburton, CITI, Bank of America, AIG, Wells Fargo, MCI, Enron, GM, Chrysler, Global Crossing). Herbert Hoover had never held elective office before he became president. He had been an extremely successful businessman. That worked out well. I'm not certain why, then, anyone would expect a businessman to be successful at governing. And let's be clear about Mr. Snyder's background: He is a venture capitalist and little more. So, enough on his background. The question is what is he going to do. He wants to reduce business taxes. Great. And how will he replace that lost revenue? The State of Michigan is well past the point on the Laffer Curve where tax cuts will produce increased revenue. No, tax cuts alone, especially in this economy, will mean decreased revenue. So, Mr. Snyder, what are you going to do to increase revenue and/or cut spending to make up for the business tax cuts? Until Mr. Snyder can offer specific answers (not general bromides) to this question, he should not be considered a viable candidate for governor. The "nerd" campaign was cute--caught my attention. Now it's time for specifics. Good Night and Good Luck
stunhsif
Sat, May 15, 2010 : 8:10 a.m.
God help us if we elect Bernero or Dillon next November. If so, we will have another four years of being "blown away". Rick Snyder for Governor is what I am hoping for. We need someone with good business skills that has actual real world experience. And as braggslaw said, we need a governor that treats the business world as a partner rather than the enemy.
braggslaw
Sat, May 15, 2010 : 7:58 a.m.
The cradle to grave "care" economy in Michigan is no longer viable. The UAW will have to understand that you cannot pay six figures to a line worker and then medical/pension for the rest of his/her life. The MEA will have to understand that five dollar co-pays are not normal. Michigan needs to be competitive. We have a solid base of engineering skills and companies in this state. BUT those who seek to redistribute money from those who earned it to those who did not are driving businesses and people out of the state. Businesses are not the enemy, they are the primary driver of prosperity and create jobs and wealth. Oversized govt. with entrenched labor interests is the ultimate enemy in this state. The voters of this state cannot allow entrenched labor interests to drive businesses away(and ultimately drive prosperity away).