Michigan creates new office to drive population growth

Gov. Gretchen Whitmer has unveiled a new governmental division in the state formulated to tackle Michigan’s declining population. Earlier this week, she dismantled the Growing Michigan Together Council to pave the way for this new initiative.

The Michigan Economic Development Corporation (MEDC) disclosed the establishment of Michigan’s Growth Office on Friday. This office’s primary responsibility will be to execute the growth strategies outlined in the council’s nonpartisan blueprint.

In December 2023, the report by the Growing Michigan Together Council identified critical challenges causing a decrease in tax revenue, impacting school funding, public services, and overall quality of life in Michigan communities. A significant factor contributing to these issues was the youth migration out of the state.

In alignment with Gov. Gretchen Whitmer’s decision to conclude the Council’s operations through an executive order, the Michigan Growth Office is now operational. Chief Growth Officer Hilary Doe will lead this office, utilizing the council’s suggestions to launch programs aimed at boosting Michigan’s population.

“Michigan’s focus is on fostering population and economic growth by retaining current residents and attracting new individuals to the state,” stated Whitmer. The recent growth in Detroit’s population after nearly seven decades indicates progress, inspiring further efforts to create affordable housing, enhance educational affordability from pre-K to college, and foster high-paying jobs in innovative industries statewide.

The Michigan Economic Development Corporation revealed that the Fiscal Year (FY) 2025 budget allocates approximately $45.5 million to support Michigan’s population expansion initiatives.

It was mentioned in the MEDC announcement that additional budget assignments align with the “three pillars of the blueprint for growth”:
– Transforming Michigan into the Midwest’s innovation hub and “America’s Scale-Up State” while addressing workforce participation challenges.
– Developing a lifelong learning system focused on future-ready skills to provide all Michiganders with 21st-century opportunities.
– Establishing vibrant communities that attract young talent, emphasizing climate resilience, robust transit systems, and accessible housing.

However, a policy brief released in March by Michigan State University and Wayne State University researchers indicated that substantial funding is required to enhance the state’s public education system and workforce development, aligning with the council’s recommendations.

Mike Addonizio, professor emeritus at Wayne State University, highlighted the current $12 billion state revenue shortfall compared to the revenue cap set by the 1978 Headlee amendment. He emphasized the need for increased financial support in education and other policy domains.

The brief proposed an additional $4.5 billion in funding to address resource deficiencies identified in a 2018 School Finance Research Collaborative study, aligning with the Growing Michigan Together Council’s findings.

David Arsen, a professor emeritus at MSU College of Education, suggested implementing a graduated state income tax to generate additional revenues. This approach could involve higher tax rates for high incomes while reducing rates for most taxpayers, facilitating essential investments for Michigan’s prosperity.

Despite the current political climate in Lansing hindering major tax reforms, Chief Growth Officer Doe will commence overseeing the Michigan Growth Office’s activities with the available resources to counter Michigan’s population decline.

Doe emphasized the collective effort required to reverse Michigan’s demographic trends, emphasizing ongoing commitments from Michiganders and the government to shape a brighter future within the state.