Nolan Finley, editorial page editor of The Detroit News, offered his perspective on Michigan and its political leadership, at the ERC Forum on June 19, 2007.

Finley cited a recent Detroit News poll indicating 76% of voters surveyed believe Michigan is on the wrong track. It also showed that 70% believe the State's economy has worsened in the past year. He agreed with that analysis noting, “If this is not Michigan's worst fiscal crisis, it is one of the worst.”

“While it can be overcome,” he said, “We must address our State leadership deficit if we hope to cope with it.” Referring to Michigan's current chief executive, he pulled no punches saying, “This is probably the worst Governor since World War II.”

Finley reported that Michigan's economic activity, or gross domestic product as measured by the U.S. Department of Commerce, is now only 89% of the national average. The most recent data show 49 other states experienced economic growth last year, while Michigan with its GDP decline ranked the Wolverine State 50th. He said, "The best projection is for a recovery by 2011 to 2018--but it is not inevitable.”

“I'm not sure the people of Michigan realize they are all alone in this,” Finley said. The State is alone in losing jobs and household income. If the trend continues, he said, “We will be below the household income of Alabama!”

Then Finley added, “We will have this governor for three and one-half more years!”

First, Finley said, “Michigan must send a big signal to the rest of the world that things have changed.” But, he observed, big labor still drives many political decisions in Michigan. Consequently, he called for voters to break organized labor's grip. He called for placing a “Right to Work” question on the Michigan ballot.

He said passage of such a measure would be an important signal, although of little practical impact. Even though minor, he said it still would provide a significant signal to new businesses and would get the attention of the rest of country.

Finley pointed out that according to a recent survey, two-thirds of businesses find the Michigan business environment hostile. “If we had a better business climate,” he said, “it wouldn't require as much effort to get business to come here.”

Because entrepreneurs are free to go anyplace they deem advantageous, Finley said, “They need a reason to come to Michigan.” Finely said that for our economy to grow and succeed and prosper, “We need to remove the hostile environment, and establish a friendly business environment.”

Next, Finley called for an audit of State government. He suggested it examine every service offered to see what can be done better or more efficiently. This, he said, should proceed any consideration of increased taxes.

As to recent claims of trimming Michigan's budget, he said there have been no true budget cuts. Instead, he pointed to one-time gimmicks and accounting shifts. Rather than reforms and budget cuts, Finley said, “We have been passing the problem forward because leadership is not serious and has been satisfied to tinker around the edges.”

Finley reported that expenditures labeled “education” grab an increasing chunk of the State budget, yet taxpayers are buried by legacy costs. He argues for reform in the area of teacher health care coverage saying, “If Michigan public school teacher health coverage was the same as other public employees, the savings would amount to $4,100 per teacher for a combined savings of $220 million per year.”

He noted that despite the high expenditure for public education, Michigan public schools experience a 23% dropout rate. He added, “Detroit sends more of its students to welfare than to college.”

According to Finley, a further value of an audit would be to ask, “Are all 52,000 State employees essential to run the State?” He said there is no strategic overview as to where employees should be assigned for the greatest benefit of the taxpayer.

Finley said these steps are critical to correct over spending. He noted, “Michigan spends more than any other state in Midwest.” As one example, he cited Michigan's taxpayer-funded Medicaid system that provides more subsidized services than most other states.

The editor fully supports use of the Michigan tax code to encourage a new start for Michigan. However, he said, State leaders are misguided when they search for “under-taxed” sectors to target with tax increases.

Finley said, “They were the segments growing!” Instead, our leaders see it as an opportunity to squeeze more money from these businesses. “They are talking about revenue before they have studied cost saving opportunities through reform,” he said.

He warned that the Governor is considering a graduated income tax and a renewed estate tax. “She doesn't understand that one advantage we have is our flat income tax,” he said. If these tax hikes go into effect, he said, “Tennessee and Florida will look real good to retirees.”

Finley believes Michigan will continue to suffer as long as it continues to punish success. He said, “The Governor and her husband, the 'assistant governor,' talk about the evils of profits which sounds like a view from the 1960's.”

Finley told the ERC that one way to encourage stronger, more qualified leadership would be to repeal term limits. He said this would allow more seasoned lawmakers a chance to serve, instead of what he called “pogo stick politics” where every elected member of the State legislature is constantly looking for his next job.

He supports a statewide ballot proposal removing term limits. He said such a proposal may also include a shift to a part time legislature, as is already the case with 39 other states. He said, “This would require the legislature to focus on their core duties, and not spend full time making mischief.”

In response to an audience question, Finley shared his view that the corporate average fuel economy (CAFE) increase being considered in Washington would have negative impact on Michigan economy. In his view, the lobbying by the auto companies has been abysmal over the past 20 years. It has gotten so bad, he said, “They are being treated like tobacco companies!”

Finley directs the expression of the newspaper's editorial position on various national and local issues, and also writes a column in the Sunday newspaper. Prior to that, Finley was the newspaper's deputy managing editor, directing the newsroom.

The journalist also co-hosts the PBS television show “Am I Right?” where he debates issues with Detroit Free Press columnist Rochelle Riley. “Am I Right?” airs Fridays at 8:30 p.m. on WDPT, channel 56.

Finley previously served as Detroit News business editor, and in various editing positions on the paper's city, state and metro desks. He was also a reporter, covering Detroit City Hall during the Coleman Young administration.

He has been with The Detroit News since 1976, starting as a copy boy in the newsroom while a student at Wayne State University. He is a graduate of both Schoolcraft College in Livonia and Wayne State, where he earned a Bachelor's degree in journalism. In 2001, Schoolcraft named him its outstanding alumnus.

The Eastside Republican Club Forum is normally held on the third Tuesday of the month from September through June. Admission is free and the public is always welcome.