Gov. Jennifer Granholm spoke to about 200 higher education officials Wednesday promoting strategies that encourage universities to research ways to boast economic and job growth in Michigan.
Granholm stressed the importance of Michigan's colleges and universities in research and technology and using them to find ways to enhance the state's economy during her speech at MSU's University Club.
"Universities have always had an essential role to play in our economy," Granholm said in her address.
Officials from the state's 15 public colleges and universities, state business representatives and the state agency Michigan Economic Development Corporation recommended to use universities' research to help the state's struggling economy and unemployment rates.
The recommendations work on ways to get universities involved with state government. They encourage looking for ways to establish new revenue sources in the state as well as ways to develop and offer incentives to university faculty that participate in the research.
But while Granholm tries to encourage universities to take on more of a role in the state's efforts to expand the local economy, her executive order to form a new Department of Labor and Economic Growth was rejected by the state Senate with a 22-16 vote Wednesday.
"We are very concerned that the governor's reorganization plan will make it harder for Michigan businesses to create and keep good-paying jobs," said Senate Majority Leader Ken Sikkema, R-Wyoming, in a statement Tuesday.
Republican lawmakers say they are concerned a provision that eliminates the Worker's Compensation Appellate Commission would change the appeals process and increase workers compensation costs for Michigan employers.
But Sen. Gilda Jacobs, D-Huntington Woods, said she is concerned with Republicans' lack of commitment to allow the state to be aggressive in job development and attraction.
"It appears that playing a role of obstructionist and delaying Michigan's economic recovery is more important than getting folks back to work," Jacobs said in a statement.
The House will take its time and continue looking at the executive order, said Emily Gerkin, a spokeswoman for House Speaker Rick Johnson, R-LeRoy.
