Creating well-paying jobs and making Michigan a better place to live and do business were the topics of Gov. Jennifer Granholm's State of the State Address on Tuesday night.
Granholm said the rest of the country has grown with new technology, but the past four years have been difficult for Michigan, which hasn't adjusted.
"The choice we face is stark: Will we let Michigan's economy languish, or will we work together to create the good jobs our state needs?" Granholm said. "Will we stand still, or will we move forward?"
The governor gave her address before a Republican-controlled House and Senate in a state with an unemployment rate of 7.3 percent, one of the highest in the country.
The governor outlined her policies to create good jobs for the future, describing the 21st Century Jobs Initiative in which 72,000 jobs would be created by an amendment to the constitution that would let the state invest $2 billion in bond money. Granholm said this would help create more higher-paying jobs for the future in life science and technology sectors.
The governor said these policies will attract new businesses.
Rep. Jack Hoogendyk, R-Kalamazoo, said the bond plan could actually hurt Michigan. He is one of two people who have announced their intention to run for governor against Granholm. The other candidate is Sen. Nancy Cassis, R-Novi.
"Businesses will come to Michigan if the tax burden and regulation burdens was lighter," Hoogendyk said. "Do we want to risk $2 billion into something that might go bust?"
The second half of the initiative would work to create new jobs by starting $800 million worth of construction projects now, which Granholm said could add 36,000 jobs.
Sen. Virg Bernero, D-Lansing, said the governor outlined a successful plan to improve the economy.
"It was a great speech for tough times," Bernero said. "The jobs plan was exciting, I think it's a great way to jump-start the economy."
But Senate Majority Leader Ken Sikkema, R-Wyoming, said he wasn't happy with the proposal, although the Republicans would consider them.
"We're going to give the proposals a shot," Sikkema said, holding up the copy of the speech. "But this is not a good start."
The focus of Granholm's speech was jobs, but it also emphasized that increasing people's access to higher education would help the economy.
Part of her plan would replace the $2,500 students received for doing well on the Michigan Education Assessment Program test with a $4,000 grant for students who complete two years of college. The MEAP test will be replaced by the Michigan Merit Exam in 2007.
"In future years, I expect to raise the bar higher for students and provide greater financial support to those who clear it," Granholm said. "But, one thing is clear today, the days when we define merit as success in high school are over. Michigan will now define merit the way the economy does - by rewarding those who earn college degrees."
MSU President Lou Anna Simon said the merit plan was interesting and would be carefully examined by the university.
"It puts the incentive in the right place, what we'll have to do is look carefully and see how it helps families whose income is right above the Pell Grant level," Simon said.
Granholm also introduced a proposal that would help people finish their college education if they had left early to enter the workforce. It would allow students' college credits to still count if they re-enroll within three years.
Simon said the speech was the first time she had heard of the credit plan, and would look to see how it could apply to.
