Michigan’s Cities Must Succeed for Michigan to Succeed
[arve url=”https://livestream.com/accounts/1408609/events/8661030/videos/191810455″/]
(Fast-forward the video to the start of the conversation around 4 minute mark)
“Are our cities struggling because our state is not growing, or is our state not growing because our cities are struggling?”
This well-articulated, thoughtful question by U.S. Congressman Dan Kildee was one of many highlights during the highly informative panel discussion titled “Activate Change: Investing in Local Communities.” The panel took place at the 2019 Mackinac Policy Conference on Mackinac Island Wednesday, May 29, 2019, and was sponsored by the Charles Stewart Mott Foundation. The event was live-streamed and is now available to view anytime here: https://livestream.com/accounts/1408609/events/8661030/videos/191810455.
So, what’s the answer to Kildee’s chicken or the egg question? The answer is a simple “Yes” – to both questions.
Cities are struggling because Michigan’s population has remained stagnant at about 10 million for nearly two decades. If we had kept pace with states across the nation we should be at 14 million people. (Michigan population by year: 1990: 9.31 million; 2000: 9.918 million; 2010: 9.931 million)
Why are we not growing? Because we can’t attract talent and business to our state because our cities aren’t able to provide the community infrastructure and amenities that today’s workforce demands. The League and SaveMICity initiative believe moving Michigan forward means more than just investing in what people might consider traditional infrastructure, such as roads, bridges and pipes. In order to attract business and talent to Michigan, it is necessary to invest in every aspect of community infrastructure, from parks and transit systems to first responders and affordable housing. Talent and businesses choose to go to the best places, and the best places are those that invest in their communities.
Kildee explained it well in his opening comments that kicked off the panel discussion that also featured Ridgway White, President and CEO of the Charles Stewart Mott Foundation; Michael McGee, CEO of Miller Canfield, Paddock and Stone; and Amy Liu, Vice President and Director of the Metropolitan Policy Program, Adeline M. and Alfred I. Johnson Chair in Urban and Metropolitan Policy at the Brookings Institution.
“Can we attract new investment or encourage existing businesses to invest if they can’t count on parks that are maintained well, infrastructure that is managed well, adequate police and fire services – basic functions of a community are the fundamental unpinning of everything else we do?” Kildee said in his opening comments as the event’s moderator. “So, in a lot of ways because of the decisions that have been made in the past we’ve had a lot of unintended consequences and it makes it really difficult for us to compete. Why is it that this is a state that is not growing? I guess the question is. are our cities struggling because our state is not growing or is our state not growing because our cities are struggling? Cities are where innovation occurs, where entrepreneurship is rooted. We all know cities are important. They are really the vital driver of innovation and entrepreneurship. They can’t work, won’t work, unless we have these essential underpinnings. And how do we do that when in the last decade Michigan communities have lost $8.6 billion dollars in direct support that we used to be able to rely on?”
We at the Michigan Municipal League and SaveMICity initiative believe in order to have a thriving state that competes for jobs and talent, we must have thriving communities to attract today’s workforce and business.
We can’t compete if cities can’t provide the basic fundamentals and the basic essential services. Michigan’s cities aren’t able to provide the services businesses and talent want for two main reasons – the state’s diversion of more than $8.6 billion away from Michigan’s communities since 2002 and the fact that revenue for cities does not track with the economy. In fact, Michigan ranks dead last in the nation when it comes to state investment in cities. (Learn more about these issues at SaveMICity.org).
“We have balanced our state budget by unbalancing the budgets of the communities that comprise the state … and changing the landscape of those places,” Kildee said. “… Just restoring revenue sharing and letting local taxes mirror the economy would be transformative for Michigan.”
Panelist Mike McGee, CEO of Miller Canfield, talked about why businesses like his company want vibrant communities and care about the success of cities.
“Talent goes where it’s welcome,” McGee said. “We’re competing for smart talent with cities around the country. … There’s a connection between the financial health of a city and our ability to hire the best.”
Ridgway White and Kildee both linked the Flint Water Crisis to the disinvestment in cities by the state. White explained that the state’s municipal finance policy led to the #Flint water crisis.
“If we had a well-functioning, well-financed municipal government, Flint would be a top 10 community to live in,” White said. White added he’s very worried what the next finance recession or downtown could mean for not only cities like Flint, but for all cities in Michigan – even those seemingly doing well now.”
McGree agreed with White’s comments about the next recession saying we need to put systemic changes in place now before the next recession happens.
Amy Liu of Brookings gave the national perspective on the issue.
“The population loss in the state of Michigan corresponds with the loss of population in its cities,” she said. “The state needs to invest in its cities if it wants to compete and attract talent. … It is imperative for the state to invest in cities if it is to remain competitive.”
And she added investing in cities shouldn’t be a Republican or Democrat issue.
“This is a bipartisan issue,” Liu said. “Around the country, Republican legislators and Governors are giving more flexibility to regions and communities. Michigan needs to join. … I don’t want to hear excuses that the politics won’t allow it. There are economic imperatives within states for lawmakers to partner and find solutions that address the challenges facing our cities. It is a bipartisan opportunity.”
All the panel speakers at Wednesday’s event did an amazing job and the discussion took place before a standing-room only crowd at the Grand Hotel on Mackinac Island. It was the third consecutive year the Mott Foundation sponsored a panel discussion about the municipal finance issue. The League can’t thank the C.S. Mott Foundation enough for its support and attention to this vitally important issue. Below are additional comments from the panel speakers as quoted in the dozens of Tweets by those following the discussion online.
The Michigan Municipal League, the SaveMICity initiative, and the Michigan Municipal League Foundation all helped behind-the-scenes with the panel by suggesting possible speakers and assisting with messaging. The League also will be hosting a reception tomorrow (Thursday, May 30) on the Island to further advance the SaveMICity message that the state’s current system for funding our communities is broken and must be fixed. The reception is being co-sponsored by the League (mml.org), the Michigan Townships Association (https://www.michigantownships.org/) and Michigan Association of Counties (https://www.michigantownships.org/).
Here are some of the many Tweets from Wednesday’s event:
@KathyBHoffman: .@dankildee: #Michigan balanced state budget by shorting communities. Both are instrumental to helping the state succeed, so additional reductions in vital city services make no sense. Reforms in tax policy, funding needed. #MPC19 #SaveMICity @MMLeague @MottFoundation
@RepDanKildee: “Are our cities struggling because our states not growing? Or is our state struggling because our cities aren’t growing?” #SaveMICity #MPC19
@savemicity: Standing room only for this important session, Activate Change: Investing in Local Communities” at #MPC19 with the @Detroit Chamber #SaveMICity
@EricScorsone: @RepDanKildee starts us off with two key points: state cuts to revenue sharing and a poorly designed property system @MottFoundation #MPC19
@DetroitChamber: “Cities are where innovation occurs. They’re where entrepreneurship happens,” says panel moderator @RepDanKildee. #MPC19
@SaveMICity: “But if we don’t have fundamentally sound cities that that have the ability to provide basic public services, it’s really hard to imagine how all of the other tools work.” – @RepDanKildee
@urcmich: .@dankildee tells #MPC19 session on investing in communities that #Michigan can’t compete until its communities have adequate resources to offer services people want. Need to reform taxation, funding systems. #SaveMICity @MMLeague #MPC19
@savemicity: Ridgway White: “Flint has important assets. Top 25 farmers market, the second largest art museum in the state, top performing arts school. But Flint also has water that you can’t drink and crime that’s challenging, and a dwindling police force.” #MPC19 #SaveMICity
@savemicity: Just restoring revenue sharing and letting local taxes mirror the economy would be transformative for #Michigan. @RepDanKildee
@kresgecities: Cities in #Michigan rank last in the nation in growing the revenue needed to address local challenges and provide essential public services. Thanks for this analysis @BrookingsMetro. #MPC19
@SaveMICity: Retweeted Dan Gilmartin: There’s no reason for Michigan to be at the bottom. It’s time we work together to get to the top. #SaveMICity #MPC19
@BillErnzen: “Cities are where innovation is rooted.” #mpc19 @SaveMICity
@SaveMICity: At #MPC19 – acting MSHDS Director Gary Heidel and U.S. Rep. Dan Kildee chat before the ‘Activate Change: Investing in Local Communities’ panel, sponsored by the @MottFoundation #SaveMICity
U.S. Rep. @dankildee talking about the dire need for municipal finance reform in Michigan. A true champion for cities everywhere. #savemicity #mpc19
@EricScorsone: Session on investing in local communities sponsored by @MottFoundation with assistance from @MMLeague @thrivelocalmsu at #MPC19
@MMLeague: @dankildee – ‘We have balanced our state budget by unbalancing the budgets of the communities that comprise the state … & changing the landscape of those places’ Wow, just wow! @SaveMICity @MMLeague @DPGilmartin #MiLeg @DetroitChamber @aminghine #MPC19
@melpiana: The population loss is the state of Michigan corresponds with the loss of population in its cities. The state needs to invest in its cities if it wants to compete and attract talent—Amy Liu, @BrookingsMetro #MPC19 @SaveMICity @MMLeague @MottFoundation
@savemicity: Liu: “the future of infrastructure is increasingly put in hands of states and cities. We need to have flexibility to raise revenue.” #MPC19 #SaveMICity
@MMLeague: ‘It is imperative for the state to invest in cities if it is to remain competitive’ – @amy_liuw at #MPC19 @MottFoundation @MMLFoundation @SaveMICity @DetroitChamber @DPGilmartin @aminghine @dankildee
@MMLeague: “Talent goes where it’s welcome… We’re competing for smart talent with cities around the country’ – Mike McGee of @millercanfield #SaveMICity #MPC19 @SaveMICity @MMLFoundation @DPGilmartin
@MMLeague: Mike McGee of @millercanfield – “There’s a connection between the financial health of a city and our ability to hire the best.” At #MPC19 discussing the challenges and needs of #Michigan cities. #SaveMICity @SaveMICity
American Cities @kresgecities: “I don’t want to hear excuses that the politics won’t allow it. There are economic imperatives within states for lawmakers to partner and find solutions that address the challenges facing our cities. It is a bipartisan opportunity.” PREACH! @amy_liuw. #MPC19
@EricScorsone: @amy_liuw Indianapolis business leaders are co-investing in public schools and k12 reform @MottFoundation #MPC19
@RepDanKildee: “Hard to see how #Michigan cities can compete with innovative communities when they are focused on keeping firefighters in place and parks mowed.” #SaveMICity #MPC19
@MMLeague: “The communities we are talking about have had to focus so much attention and energy on just barely meeting the basic needs, you don’t see the kind of robust investment even in planning, that would be required.” @RepDanKildee #MPC19 @SaveMICity @DPGilmartin @dankildee
@savemicity: “This is a bipartisan issue. Around the country, republican legislators and Governors are giving more flexibility to regions and communities. #Michigan needs to join.” – Amy Liu #MPC19 #SaveMIcity
@EricScorsone: McGee from @millercanfield we need to put systemic changes in place now before recession @MottFoundation #MPC19
@SaveMICity: @RepDanKildee – Real people are hurt. Kids are growing up in depressed cities never have their talent unlocked. There might be someone walking around with a billion-dollar idea in their head, that could never come out if we can’t figure out how to make every city vibrant. #MPC19
@EricScorsone: @RepDanKildee we didn’t fix anything by unbalancing city budgets, we also are losing out on some great talent @MottFoundation #MPC19
@SaveMICity: “We’ve locked ourselves out of the opportunities for innovation and gain.” @RepDanKildee #MPC19 #SaveMICity
@SaveMICity: State finance policy led to the #Flint water crisis. If we had a well-functioning, well-financed municipal government, Flint would be a top 10 community to live in – Ridgway White at #MPC19 #SaveMICity
@EricScorsone: @RepDanKildee Michigan could miss out on big infrastructure plan if federal match requirements remain @MottFoundation #MPC19
@SaveMICity: “We’ve locked ourselves out of the opportunities for innovation and gain.” @RepDanKildee #MPC19 #SaveMICity
@EricScorsone: @RepDanKildee we need to address these problems before it gets worse, improve local tax options and rev sharing @MottFoundation #MPC19
@SaveMICity: @RepDanKildee – “You just trace the history of the world, you see where people live and work in proximity to one another, vibrant places that are functional, great things can happen.” #MPC19 #SaveMICity
@EricScorsone: @RepDanKildee we didn’t fix anything by unbalancing city budgets, we also are losing out on some great talent @MottFoundation #MPC19
@EricScorsone: Ridgway White is worried about the cities who are doing ok now and how they will be hit during recession @MottFoundation #MPC19
Investing in Local Communities. Great conversation around one of the State’s largest issues. Unfortunately, it doesn’t appear that many State Legislators are in the room? #MPC19 @MMLeague
@EricScorsone: McGee from @millercanfield we need to put systemic changes in place now before recession @MottFoundation #MPC19
@SaveMICity: 100 straight months of private sector job growth, and communities are one small step from bankruptcy. @RepDanKildee #SaveMICity #MPC19
@SaveMICity: “Data is really clear – we have underfunded cities, but are real questions about the structure of cities.” @RepDanKildee #SaveMICity #MPC19
The federal govt is cutting programs and funding thinking cities can step up and fill the gap, but they can’t. It’s happening everywhere, not just in Michigan – Amy Liu @BrookingsMetro #MPC19 @RepDanKildee
@SaveMICity: Liu: “the future of infrastructure is increasingly put in hands of states and cities. We need to have flexibility to raise revenue.” #MPC19 #SaveMICity
@EricScorsone: @amy_liuw it’s a win win if states build local fiscal capacity in this new city focused era @MottFoundation #MPC19
@MIMunicipalExec: “Michigan communities are managed by capable, passionate individuals who go to school, get their MPA and oversee our municipalities” – Mike McGee of @millercanfield #SaveMICity #MPC2019 @MMLFoundation @MMLeague @DPGilmartin @rigterink1 @mattbach
@SaveMICity: Thank you to @RepDanKildee, Amy Liu, Michael McGee and Rigway White for the excellent discussion on investing in #Michigan cities at #MPC19! #SaveMICity
@mmleague: Did you miss today’s excellent #MPC19 panel discussion abt need to invest in Michigan’s communities? No worries, watch now here: https://livestream.com/accounts/1408609/events/8661030/videos/191810455.
