Bike City

To guide the work of the City of Owosso, the City Council has adopted goals for 2011-12. One of them is to make our community a Bike City: “Make Owosso a center for bicycle activity with new bike trails and other actions to promote biking in the community.” Bicycling is an important recreational activity that increases transportation options, improves the health of local residents, and makes our community a more attractive place to live for people of all ages.

On Friday, June 17, eighteen people gathered at Owosso City Hall to share information about current and potential initiatives to promote biking in the greater Owosso area. Although there may be other efforts also going on, twelve projects have been identified:

1. Bike Racks – the Design Committee of Owosso Main Street has identified eleven locations for new bike racks in downtown. These will have unique designs that replicate historic bicycles; they are being produced locally through Baker College. To learn more or be involved contact Dave Acton: dacton@chartermi.net

2. City of Owosso Master Plan – the City is in the process of putting together a new plan to guide development. It will reflect a recently adopted City Council resolution on Complete Streets, and will contain plans for new bike paths and routes, including a connection to the CIS Trail (see below), one end of which will be a few miles west of Owosso. In addition, the City is updating its Park and Recreation Plan. To provide input contact Community Development Director Adam Zettel at adam.zettel@ci.owosso.mi.us

3. The Live Healthy Coalition is a partnership of 14 organizations headed up by the Shiawassee Family Y, who is the recipient of a Robert Wood Johnson Foundation. The goal is to make policy, systems, and design changes to promote active lifestyles. For more information contact Dawn Reha at dreha@shiawasseeymca.org

4. SATA Bike Racks – the Shiawassee Area Transportation Agency has installed bike racks on the front of its busses and is now providing rides to those who want to bring a bike, either for short trips upon reaching their destination or to provide for a one-way bike trip. For more information contact sata@tir.com

5. Tuesday night bike rides leave from the Shiawassee Family Y at around 6:15. This is one of several informally organized community bicycling opportunities. For more information contact Rick Morris at houseofwheelsinc@gmail.com

6. Shiawassee CVB (Convention and Visitors Bureau) is always looking to do more to promote tourism in Owosso and Shiawassee. They are looking into putting together a website to outline biking routes and otherwise promote organized and individual bike visits to the community. Contact Kim Springsdorf at kspringsdorf@shiawassee.org

7. CIS Trail (Clinton-Ionia-Shiawassee) hopes to begin formal development next year on a trail that will run from just west of Owosso to Ionia through St. Johns. The right of way is secure and in conjunction with the Michigan DNR, Meijer Foundation, and others improvements will be made. Fundraising is currently underway with the receipt of a $15,000 grant from the DALMAC group. To become involved contact Avery Weaver at adweaver@charter.net

8. Mountain Biking at Collamer Park is being promoted with the development of trails and the recent hosting of the Curwood Fat Tire Race. For more information contact Jason Roka at rojas613@yahoo.com

9. The James Miner Trail continues to provide positive biking opportunities between Owosso and Corunna, though there is a need to improve and maintain the trail and provide better signage. To express your interest contact Owosso City Council member Joni Forster at joni.forster@ci.owosso.mi.us

10. BMX Park for bicycles is nearing completion by the City of Owosso along South Gould Street. Dirt is needed. Please contact Adam Zettel at adam.zettel@ci.owosso.mi.us

11. Share the Road signs are being offered through the Shiawassee-Owosso Kiwanis Club. This is part of an overall effort to provide education and support to bikers and drivers to respect the use of public roads by both forms of transportation. To seek a sign for installation contact Doug Cornell at mailto:doug@cornelltech.net

12. Owosso Bike Fest on August 14 brings a number of enthusiasts out to share their antique and specialty bicycles in the City parking lot in Westown (between Bradley and Cedar). For more information, contact Rick Morris at houseofwheelsinc@gmail.com

Shiawassee Bike City Network. It was agreed to establish an internet-based system to connect and inform bicycle supporters throughout the communities of Shiawassee County. Another meeting will be held in about six months to again share information. To become part of this network, or for more information, contact Owosso City Council member Tom Cook at citycouncilcook@gmail.com

Words Matter

Talk may be cheap, but good communication supports healthy relationships in our families, effective workplaces, successful community organizations, and our democratic form of government. Sadly, when words are chosen poorly, or misused, or even abused, we all suffer.

When is it OK to call local officials criminals?

Recently, an online posting asked this question: "is destruction without vote to historic Owosso landmark a crime?" and went on to suggest that local officials acted illegally in allowing for the demolition of Holman Pool. Now, my purpose here is not to review the demise of this 50 year old recreational facility that was no longer financially viable to operate, maintain, or even renovate. Nor do I want to discuss the profound nature of a legal designation on the National Register of Historic Places (e.g Curwood Castle) and the unsupportable assertion that an old pool is such a landmark. Nor do I want to enter into a long explanation of the legislative role of the City Council versus the administrative role of the City Manager (the former is responsible for policy and budget, the latter for operations; in this case the budget clearly calls for pool demolition). Nor do I want to discredit any community member that has worked hard to provide for aquatic recreation in Owosso, for I hope they continue their efforts.

Rather, I want to make a point about public discourse in the process of government at all levels. Democracy depends on getting the best information, hearing the best policy proposals, and seeking the best solutions. Being open to public input, and allowing for public debate including vigorous argument, are essential to this process. I would go so far as to say that we need criticism, at least when founded on fact or an honest difference on policy direction. However, political debate at the national, state, and sadly even the local level has degenerated to name calling, the negative painting of an opponent's view, and harsh criticism of difficult decisions. Labeling someone a criminal (or a Communist, or a Nazi) is not likely to lead to reasonable debate and effective problem solving.

Complex Problems Require Trust to Resolve

It's not that such personal attacks sting, the issue of concern is what ad hominem arguments do to the ability of deliberative bodies to solve problems. Despite how the media and some political operatives behave, many of the problems facing representative government bodies cannot be reduced to a simple black-and-white, right-or-wrong definition. Issues like Holman Pool involve difficult fiscal decisions, regulatory requirements, and strong personal attachments. Other issues have unclear legal boundaries (e.g. medical marijuana) , or involve people's interpretation of their personal rights and responsibilities to neighbors (e.g. burning). Sorting through these complex issues requires a public body like the City Council to ask questions, try out potential solutions, and listen with an open-mind to various viewpoints. When someone has been calling you names, it is hard to engage in the give and take required to identify a solution that accommodates all points of view.

When faced with complex issues, as an elected official I have to trust that my fellow councilmembers, the media, and the public are willing to listen to a variety of ideas, fairly praise or criticize them, and suggest alternatives. However, solutions to complex problems tend to be complex as well, and opponents now quickly find a narrow angle of attack and exploit it. Take Holman Pool, rather than accepting the work of engineers and the careful recommendation of two different citizen committees headed up by a pool champion (Gary Martenis), opponents prefer to say the Council is anti-children and that City staff are engaging in illegal actions. Such attacks gain more comments on an online forum than a discussion of the decay of pipes or a cost-benefit analysis of aquatic recreation options, but they don't help democratic bodies make good decisions.

As an elected official criticized in this fashion, one can either fight back (and this makes you look combative and mean) or you can choose not to respond (and then appear snobbish or dismissive). What you would like to do is engage in a discussion, share some mutual education, and seek out common ground solutions. However, to do so, you have to trust you won't be attacked or called names. Without this trust, you can't communicate. If you can't communicate, you can't understand other viewpoints. If you can't understand, you can't change.

A Local, State, and National Problem

Perhaps I shouldn't complain, because the local attacks are minor compared to what occurs on the state and federal level. During the national health care debate, some opponents of the President's proposals were quick to label him a socialist, even though his plan depends on the private health care industry. It is valid to oppose to President Obama's initiative, but unfair and unhelpful to depict him as Adolph Hitler. Likewise at the state level, when Governor Rick Snyder supported new provisions to strengthen the role of Emergency Financial Managers he came under fierce personal attack. One law professor (!) even compared our popularly elected Governor with the despot King George III. Maybe such attacks garner media attention and campaign donations (or why else do they persist?), but it sure makes it hard for differing political parties to come together on the next difficult policy issues (witness the current name-calling and fear-mongering on Medicare reform).

Words Matter

Perhaps our democratic system is broken, though I hope not. Perhaps people feel so disenfranchised that they feel they have nothing to lose, or can't get any attention, unless they resort to screaming, derogatory personal comments, or outrageous claims. Fortunately, my experience in Owosso is that most people want to trust one another, find the good, and support solutions to the problems facing the community. However, one or two misplaced words can turn a conversation into an argument, corrode public trust, and lead to democratic paralysis. On the other hand, starting conversations with a question, listening to the full answer, and saying a few words of respect or even kindness can strengthen the relationships we all depend on.

Tree City

If we make Owosso a pleasant place to live, we will attract talented entrepreneurs, retain engaged families, and spur investments in both homes and businesses. Quality of life is a key economic development strategy for the future of our community. And perhaps nothing says quality of life for a community than trees. Last year, we took steps to have Owosso designated a Tree City, USA and we were just recognized with this award for the second year.

On Saturday, April 30, Arbor Day was recognized in Owosso with the planting of a white swamp oak tree on the banks of the Shiawassee River (if you look closely in this picture you can see Mayor Ben Frederick working with kids to complete the planting of this native species after he read the Arbor Day proclamation). This ceremony kicked off the second annual Green Up Clean Up organized by the Owosso Main Street program and the Friends of the Shiawassee River. This year, flowers were planted downtown, trash was picked up along the James Miner Walkway, and other community improvements were undertaken. In addition, a number of trees were planted along the Loop Trail, including several catalpa trees grown from seeds from the champion catalpa on the grounds of the State Capitol in Lansing. Catalpas are a large leaf southern tree, but Owosso is within the northern range of this species. The Shiawassee River environment is home to an overlap of southern trees like the catalpa, sycamore and Kentucky coffee tree along with northern species such as white pine and hemlock.

In addition to being pleasant to look at, trees provide several tangible benefits:

1. They reduce cooling costs by providing shade;

2. They filter pollutants from the air and help moderate climate change;

3. They prevent erosion and help keep the Shiawassee River cool;

4. They provide important habitat for birds and other wildlife.

All of these benefits add up to a better quality of life in our community. One of the goals of the City is to make Owosso a green community and trees play a large part in this effort. To become a Tree City USA, Owosso meets four requirements: it has a City Arborist with knowledge of tree care, it has a tree care ordinance, engages in a systematic tree planting program, and recognizes Arbor Day annually.

Look at Owosso from the air (or on Google Earth) and our city's residential areas look forested. Tree lined streets with sidewalks and historic homes are a large part of the character of Owosso that continues to attract and retain those people who will contribute to our economic future. Being a Tree City is not a costly investment for the City, but it is an important statement about the values we hold. John Rosenow, founder of the Arbor Day Foundation said "we commend Owosso's elected officials, volunteers and citizens for providing vital care for its urban forest. We applaud communities that make planting and caring of trees a top priority."

The State Budget and Owosso

As Michigan crawls its way out of the recession, the State faces difficult budget decisions. Owosso too is trying to find its way forward economically, and how the details of the State's budget are worked out could make our community a partner in--or a victim of--the State's recovery plan. Governor Rick Snyder proposes a major overhaul of fiscal planning at the State level, and several weeks ago introduced his new budget. Job growth is his primary goal, and to achieve this objective he proposes major cuts and restructuring of taxes on businesses. He also proposes significant reductions in several areas of State expenditures. According to the official budget document (click here), "the financial models of our state and local governments are unsustainable. Service duplication, debt, public employee compensation and unfunded retirement obligations are impacting the long-term fiscal health of state and local governments. Governor Snyder believes Michigan and its public institutions must correct course, stop spending money they don’t have, and implement pragmatic solutions to the economic and fiscal problems that exist." How will this budget effect Owosso?

Revenue Sharing. First and foremost to the City of Owosso, the Governor proposes a reduction in statutory revenue sharing. If approved by the Legislature, this will result in about a $461,000 cut in the City's revenues (which were budgetted at $6.7 million for this year). Untouched, because it is written into the State Constitution, is over $1 million in state aid the City receives. Revenue sharing was implemented to compensate local governments for not imposing local sales taxes. In other states, many cities have their own sales tax or receive a set percentage of sales tax revenues. In Michigan, statutory revenue sharing favors older cities with higher populations of lower-income residents.

For Owosso to weather the (estimated) seven percent (7.0%) cut in its revenues, it will likely be necessary to reduce labor costs, either through the elimination of positions or the reduction in pay and benefits. Governor Snyder's budget message suggests that the benefits municipal workers, as a whole statewide, receive are out of line with the private sector. While City spending on infrastructure improvements like sidewalks are sometimes identified as a source for budget cuts, these have generally paid for through state or federal grants, or specific local assessments. The City's unrestricted revenues are mostly dedicated to labor costs. There is little else to cut in the City's budget.

The Governor has proposed to restore in the State budget about two-thirds of the statutory revenue sharing, but distribute the funds through a new incentive program that would reward cities and townships for "best practices" which may include funding for regional cooperation. The specific details of this program have not yet been announced, nor is it clear whether local governments will be rewarded for existing, or future, best practices. The details of this program will determine how big a financial hit the City of Owosso takes. If we are recognized for existing regional cooperation (e.g. water), or given the opportunity to combine services (e.g. public safety), then perhaps we will thrive under this new program. If the program is designed primarily for urban and suburban communities that occupy one metropolitan area, then Owosso may not recover much or any of its lost revenue sharing dollars. Given the goal of job creation in the State, I would favor incentives that reward local governments that participate in robust economic development efforts (for instance, the City has committed at least $15,000 annually to the Shiawassee Economic Development Partnership for several years).

Job Growth through Tax Cuts is the primary goal of the budget, and the Governor proposes to do away with the complicated Michigan Business Tax (MBT) and replace it with a flat six percent tax on corporations. Those businesses organized as partnerships and other limited owner structures will be exempt from most State taxes. This promises to be a boon to small and new businesses, and the Governor believes that "economic gardening" will result in broad and deep job growth. He also proposes to do away with targeted tax credits that are given to specific companies in exchange for commitments to create new jobs. This past approach of "picking winners and losers" benefitted our area with several expansions of manufacturing plants and other businesses that bring in dollars to our community. It is unclear whether these new jobs would have been created locally without these tax incentives, and it is unclear whether the proposed tax reforms will attract or spur equal or greater job growth. What is clear is that the changes would favor many locally-owned businesses and improve the economics for the creation of new jobs. To fully capture the benefits of the tax changes, we (the City and its many partners) will need to emphasize assistance to entrepreneurs and small businesses.

Loss of Development Incentives. In the debates about taxes and spending, much less attention has been given to the potential loss of specific tax credits that have been key to new growth in Owosso. We have been fortunate in recent years to have several new projects built in Owosso, including the Comstock Inn, Woodward Station, and the under-construction Lebowsky Center. All of these projects have been made possible by the Brownfield Tax Credit, which the Governor's budget proposes to eliminate. Going forward, redevelopment of the downtown will depend on not only the Brownfield Tax Credit, but also the State's Historic District Tax Credit. Owosso went through considerable effort last year to put into place a historic district in its downtown, and in response we have already seen several property owners move forward with new storefronts or major reconstructions. Much of this private investment is made possible by the presence of the tax credits, which provide equity investment and improve the opportunities for financing (which has become quite difficult in the last few years). Loss of these development incentives would hurt Owosso's efforts to spur economic development.

The argument against "picking winners and losers" does not apply to these two tax credits, as they are available to any business who develops in certain areas. The Brownfield Tax Credit was put in place to encourage revitalization of downtowns and urban areas, many of which were contaminated in the past and for which there are extensive clean-up costs (this was especially true at the site of the Comstock Inn). Without this tax credit, there would be more empty, blighted lots in Owosso and throughout the state. Without this credit, state policy would push new development out into "green" fields with attendant environmental impacts. The Historic Tax Credit is even more limited in its area of application, but helps developers offset the higher costs of restoring older buildings. Both tax credits are major tools in helping cities like Owosso rebuild its tax base. If we lose revenue sharing dollars from the State, it becomes even more important to increase our tax base through redevelopment.

Summary. The Governor has called for "shared sacrifice" to put Michigan's fiscal house in order, and it would be unrealistic and unfair for Owosso not to do its part (there are also other impacts of the budget on education, health care, and other sectors of our community). And the Governor has the right primary goal in encouraging job growth. If successful, the changes in taxes and spending will restore Michigan's economy and that will do more for Owosso than any particular job program or new development. However, it is important that State adopt a plan that makes Owosso a partner in economic recovery. I believe our greatest contributions can come through creating a vibrant community that provides a platform for entrepreneurs. This platform would consist of a support system for small businesses and manufacturers, a growing downtown, and a community with a high quality of life. Owosso is building this platform for growth, and it seems appropriate to ask our Governor, and our legislative representatives, to adopt a budget--and accompanying policies--that allows us to be partners in, and not victims of, the State's recovery plans.

Regional Cooperation

The City of Owosso and its neighbors have taken some important steps to improve regional co-operation, and the timing could not have been better. Two weeks ago the City Council approved an agreement with Owosso Township that puts in place a process for sharing the benefits and costs of a municipal water system. The next night, Governor Rick Snyder, in his state of the state speech, proposed that local governments consolidate services with their neighbors to reduce the cost of government. He also proposed to use State revenue sharing as an incentive to spur such coordination.

The Governor's proposal has yet to be defined, and yet to be approved by the Legislature, but the idea of regional cooperation among cities, townships, villages, counties, school systems and other units of local government has been gaining more attention and credibility in recent years. Of course, Governor Granholm proposed something similar during her time in office, and the idea never went anywhere. Additionally, there is much concern over the decline in the funds the State allocates to local governments. Revenue sharing was implemented some time ago as part of an agreement whereby the State restricted the ability of locals to levy sales and other taxes. In many states, a portion of sales tax revenues go directly to the jurisdiction in which the sale took place; revenue sharing in Michigan was supposed to be a more equitable alternative. The system worked well until the State started cutting back the payments to local governments. Now, many local officials resist any attempt by the State to further reduce or restrict these funds.

In Shiawassee County, there have been both failures and successes in regional cooperation. The recent water agreement came after decades of controversy and debate. There will now be a water system that encompasses all of Owosso and Corunna and the more developed portions of Owosso and Caledonia Townships. This will accompany the well-functioning Mid-County inter-governmental system that coordinates wastewater collection and treatment. And there have been specific cooperative actions to support new development as well as mutual aid agreements for public safety services througout the region.

Can, and should, there be more regional cooperation, or even consolidation, of governmental services among neighboring jurisdictions in Shiawassee County? The arguments in favor of the idea include the opportunity for cost savings in infrastructure, equipment, and staff. As well, regional cooperation might bring better planning and coordination of governmental activities that improve the quality of life and promote economic development. A decade ago, Team 21, championed by George Hoddy, made these arguments. On the other hand, there are concerns about giving up control and accountability of governmental services. Would a City Council be able to direct its staff and services in ways that would best serve the residents of the community?

What seems to be spurring the discussion of regional cooperation now is the opportunity to reduce the cost of government. There seems to be little interest in raising taxes at the state or local level, and with the economy sputtering, state and local revenues have declined. Even with signs of a slight economic recovery showing, revenues will lag for some time (see this earlier blog post). It's clear that costs need to be cut, and the opportunity for sharing services potentially offers a way to maintain services while cutting costs. However, local governments may need some statutory push or financial pulll to inspire local officials to reach across municipal boundaries. At the local level, careful attention needs to be paid to ensure that any cooperative agreement benefits all parties, is open to public scrutiny, and truly allows for more to be done with less. Nonetheless, regional cooperation will be a goal for 2011.

Owosso and its neighboring jurisdictions of Corunna and Caledonia and Owosso Townships have in place several working regional partnerships; the recent water agreement strengthens these relationships. Hopefully these will be recognized in any state budget or legislative change that seeks to reformulate revenue sharing. In any case, the recent work of local officials to increase trust and communication will put the mid-county region in a better place to pursue effective regional cooperation in the near future.

I was honored to be State Representative Ben Glardon's guest at Gov. Rick Snyder's State of the State address. Said Glardon "This is a truly historic time in Michigan, and the governor's business-style approach is exactly what our state needs to get back on solid footing. The governor talked about specific goals with expected results. With huge state budget deficits that seem to continue year after year, we must find new ways to properly budget taxpayer dollars, and Snyder's emphasis on value for our dollars is spot on."

Change is Coming to Lansing

"If you want something different, don't keep doing things the same way," was how Doug Rothwell put it at the December 13 Summit of the Center for Michigan and the Business Leaders for Michigan. This was on the same day that Rothwell was named to be the new chair of the Michigan Economic Development Corporation (MEDC) by Governor-Elect Rick Snyder and outgoing Governor Jennifer Granholm who took the unprecedented step of jointly appointing a mostly new board to run MEDC. I was fortunate to be at the Summit, and I came away inspired and a little anxious after Rick Snyder spoke to the audience. Change is coming to Lansing, and the implications for elected officials and engaged citizens are profound.

"We are going to be bold" said the new Governor, and while he recognized that turning around the economy of Michigan will require a marathon of persistence, "our sprint will be at the beginning, not the end of the race." I have known Rick Snyder for several years now, and while he has a reputation of being cool and cerebral (i.e. a nerd), he was more fired up and passionate in this speech than I have ever seen him. "Get ready" he said, "it is time to stand up." While his speech was short on specifics, the day was filled with numerous speakers, and here are some things I think we need to prepare for:

Jobs and Economic Development were the #1 issue on everyone's mind. A first step was the remaking of the MEDC, and the Governor-elect and several Republican speakers stressed that government does not create jobs. The Michigan Business Tax (MBT) will be reformed in significant ways, but it also sounds like that specific tax incentives and other industry-targetted economic development efforts will be abandoned, or at least de-emphasized. Doug Rothwell noted that Michigan has the 48^th most burdensome business income tax among states. While he said that cutting taxes is not a long-term economic development strategy, in the short term state government has limited options to spur new private investment quickly. And, a big cut in business taxes would also get Michigan international attention because it is unexpected.

A business location specialist, Ron Pallina, who is author of a new book, Selling out a Superpower, said "We need to understand that we are competing with other nations. Companies say, 'we want to stay in US, but for us to stay here we need the least cost environment.' Today business location is a case of economic survival." His top three recommendations for Michigan: lower corporate taxes, create a right-to-work state, and foster more cohesion in the economic development team of elected officials, MEDC, and local economic development teams. "Michigan is not as well coordinated or speedy in its response to the need of employers."

Doug Rothwell also called for state investment in business incubators: "We need entrepreneurialism to grow our economy, but it takes time."

Budget Reforms. Michigan faces a $1.5 billion structural budget deficit in the coming year, and there will be short-term pain in addressing it. No one talked specifics, but I fear for the impacts on local revenue sharing which represents 25% of the City of Owosso's revenues. A lot of attention was given to the cost of public employees. This is a particular challenge for local governments, where employee compensation represents a majority of their costs; for the state, labor costs are only about 10% of the budget. Legacy costs for retired workers are also a looming challenge that could "eat up the entire stream of new revenues" according to Jeff Guilfoyle of the Citizens Research Council. There are $50 billion in unfunded pension and health commitments in the State, which is equivalent to $5,000 for every Michigan resident.

Solutions for budget reforms centered around multi-year budgeting and shared services. Robert Daddow of Oakland County advocates for the State to go to a multi-year budget. This will provide more stability, certainty, and understanding, especially to local governments and school districts. Oakland County has a three year budget. It gives local leaders more time to realize savings and solve problems; it spurs long-term thinking and avoids one-time budget fixes and gimmicks. Also, he stressed the importance of local governments to provide timely accounting reports to board and the public on a monthly, quarterly, and annual basis. This year Owosso started providing detailed budget reports on a monthly basis; our budget however is an annual one.

Jack Poll, Mayor of Wyoming, the second largest city in Kent County, stated his belief that local governments can achieve cost savings and efficiencies through shared services. He cited the opportunities and challenges with doing this around firefighting services in Kent County. The primary stumbling block is reaching agreement on the desired, or acceptable, level of service. "We need an effective model and standard to measure ourselves against," he said in asking for the State to help facilitate service sharing. "We need to get the legislature to clear the decks to allow for inter-municipal cooperation."

Education. Mike Flanagan, Superintendent of Public Instruction for the State of Michigan, believes that local school districts should share services too. He does not see a need for the consolidation of local districts, but recommends that non-instructional services such as transportation be delivered by intermediate service districts. He also suggested putting in place statewide health insurance, benefits, and a salary schedule. He said that these changes would allow local boards and administration to focus on student achievement, rather than on labor issues and the delivery of services.

Beyond this discussion, there was little attention given to K-12 education. Rather, there were several calls for increased investment in early childhood education, which provides significant long-term benefits for kids. For every dollar invested in early childhood education, $17 will be returned in lower services and increased revenues. Higher education was also touted. John Austin of the Brookings Institute reported that Michigan is 50^th in the relative share of state budget allocations to higher education. He recommended that we leverage our world-class institutions for economic growth, citing the positive examples of the Research Triangle in North Carolina and Austin, Texas. "Universities are engines for local economic development, the growth of the state, and our global competitiveness."

Place-Making. John Austin also called for investments in the quality of life in Michigan. He noted that the growing regions of the country have world-class cities with culture, good transportation infrastructure, and a talented workforce . He also called for investments in our natural assets as a way to retain and attract an educated workforce: "Michigan is a beautiful state, but the beaches have got to be clean and the parks need to be open; Colorado has had great influx of talented people because of its natural resources. Our youth, our college graduates want to be part of sustainable communities and work in green industries; they do not perceive Michigan as a place for this – in fact, we have been antagonistic."

Bi-Partisanship. The day ended with a call for cooperation and action. Democratic State Senator John Gleason said that it was "time to put blame aside. Now is a unique opportunity for the State of Michigan. We have been too partisan in the Legislature. We cannot put forth our best effort because of the peripheral powers and parochial interests." Republican Jase Bolger, the new Speaker of the House, said that "our problems are too profound to let partisanship get in the way." Governor-elect Rick Snyder called all legislators "my partners" after being thanked by the Democrats for his efforts to reach out to them.

The next Governor also stressed that the reform efforts were not just about government. "We all need to work together," he said. And Phil Power, the visionary force behind the Center for Michigan, called on us to be "all in for Michigan." Given these strong statements, the seriousness of the problems before us, and the passionate commitment of Governor-elect Rick Snyder, I anticipate some radical changes in government in the year ahead. Whatever our line of work or effort, private or public, we need to be clear about our own mission and look for ways to move forward with new partners. It is said that the Chinese character for crisis is the combination of chaos and opportunity. I think there will be lots of both.

Shop Downtown to Build our Local Economy

The other day Joe Borgstrom (of Michigan's Main Street program, and the first director of the Shiawassee Economic Development Program) reminded me of the leaky bucket and its role in the economic health of our community. He also shared some data that reminds us of why we need to shop locally to get our economy going strong and employment as full as possible.

Our community, like all places, has a local economy where people buy goods and services from one another. Money comes into our community (the faucet) from a variety of sources: most importantly are the wages and other earnings from companies that make things here and sell them nationally or internationally; but money also flows into individuals and businesses that provide services to other outside the community; crops grown here and sold on the market also bring income; transfer payments (e.g. private pensions, Medicare, and other government aid) are also a major inflow.

When money comes into the community, it gets spent at the grocery store or other shops, at restaurants, for services like accountants or house cleaners, in buying supplies to run other businesses, to get healthcare, and in the form of donations to local charities or to pay local taxes. And of course when the local shopowner makes a sale, then he or she uses that income to buys goods and services. This is called the multiplier effect and has long been the subject of study by academics and the focus of economic development efforts.

Of course, not all the money that flows into the economy stays here. We make purchases at stores outside our community, we buy services from national companies, we shop online, and we pay taxes to the federal government. All of these outflows are the holes in the bucket. Typically, new dollars turn over several times in the local economy, thus filling the bucket, but they eventually seep out to other places as near as the regional shopping mall and as far as China for that new celphone or other electronic gadget.

The traditional approach of many economic development efforts is to increase the flows into the bucket, and Shiawassee County has done a relatively good job in recent years in supporting the growth of income-generating manufacturing companies; we need to do more, especially supporting entrepreneurs. However, we can also promote the local economy by seeking to plug the holes in the bucket of our local economy.

At this time of year, we can plug some holes and support our local economy by shopping downtown, eating at local restaurants, and making donations to local charities. A study from West Michigan found that when a dollar was spent at a locally-owned business, 68 cents of that dollar recirculated through the local economy. For every dollar spent at a national chain store in the local market, 43 cents stayed locally. These figures vary somewhat from business to business, but several other studies from other communities confirm the economic benefit of shopping locally. What is clear is that when we shop in other counties very little economic gain accrues locally. Online shopping is the worst for the local economy, with only a penny or two coming back to the community in the wages of postal or delivery workers.

After the holidays are over, we need to take a look at our local economy and figure out what other holes we can plug by identifying what retail, entertainment, services, business support, and supplier businesses our community is lacking. When we identify the outflows in our local economy we will be identifying economic opportunities for a local entrepreneur to fill, and if we grow our local businesses, we will grow our local economy.

In the meantime, as you do your holiday shopping, take a stroll downtown, check out our local businesses before getting in your car or online, take someone out for a meal, buy a local gift certificate, or swing by the Shiawassee Arts Center or the Four Seasons gift shop at the hospital or the Steam Railroading Institute. Think too about making a donation to a local charity as a meaningful way to show someone you care (for instance you can participate in Operation Friendship at Arc Shiawassee or buy a theater seat from the Owosso Community Players). When you shop locally, not only will you be supporting the local economy, you might run into an old or new friend out and about. And relationships, whether personal or economic, are what really make our community special. Happy Holidays!