What's the matter with Michigan?

"When are you going to leave Michigan?"

That's the question my exasperated parents ask me at least once a month.

It's their endearing effort to entice me to move back to Sweet Home Chicago, a magnet for Gen Xers in the Midwest and beyond. They really don't have to sell me on a city with stellar theater, independent cinema, museums, outdoor dining, urban parks and, of course, miles of beachfront along Lake Michigan.

Too bad I'm head-over-heels in love with the Wolverine State, a land of tragically flawed heroes, from Lewis Cass to W.K. Kellogg. It's home to perhaps the finest historical museum in the country, the sprawling Henry Ford, and the rare and used bookstore I could die in, John K. King's concrete paradise in Detroit. We have the unblemished side of Lake Michigan, thank you very much - not to mention three other Great Lakes that carve out our two peninsulas.

But in the eyes of my protective parents, Michigan is the rustiest of the rust belt states - a lumbering, rancid remnant of manufacturing's glory days.

What they see in the news is 6.9 percent unemployment - sadly the lowest rate we've hit in a year, which still tops the country. They shudder about crime rates in Detroit, Flint and Saginaw (not to mention their third-world infant mortality rates).

My Republican accountant father sighs at our business-unfriendly tax structure and my Democratic teacher mother shakes her head at our abysmal high school dropout and college graduation rates.

Those are the problems we've grappled with for years.

But lately, it seems Michigan is even more determined to become the laughingstock of the nation. If we're on tee-vee, you can bet you'll want to cover your eyes.

That's what happens when you're overrun by folks suffering from childhood regression and determined to take it out on Michigan.

There was our 11-month soap opera last year over a budget bleeding $2 billion. We all knew how it would end thanks to our clueless, preening leaders, who at least looked pretty for the cameras before they shut the government down.

Gov. Jennifer Granholm (whose smile beat out two grownups in the 2002 Democratic primary) still had to be the most popular girl in school and couldn't make tough choices. Senate Majority Leader Mike Bishop, R-Rochester, tried to be the Big Man on Campus and lost badly, while House Speaker Andy Dillon, D-Redford Township, was a freshman trying to be student body president.

In the press box, I glanced up from rereading David Halberstam's "The Best and the Brightest" to watch rumple-shirted, sleep-starved senators screaming, pouting and almost busting into fisticuffs like 6-year-olds coming down from a sugar high on the playground. And I wanted to weep.

Then there was our January primary, a glorified toddler tantrum by Democratic National Committeewoman Debbie Dingell and Michigan Republican Party Chair Saul Anuzis. (Nyah, nyah, Iowa and New Hampshire, you can't keep us down). Only Saul was smart enough to massage his national party, while Mrs. D flicked off the DNC and got the state's delegates yanked.

While the botched primary permits Hillary Clinton to throw her own hissy fit about seating the Michigan delegation (seriously, Hillz, it's like the struggle to free the slaves?) it really just makes us look stupider than 48 other states plus Guam.

And now Leon Drolet, still trapped in the moody adolescent phase of Ayn Rand worship that sets in when your sweetie says no to prom, wants to "make history" by recalling Dillon. Evidently, the speaker raised taxes all by himself last year.

Boy, I just can't wait for national coverage of Libertarian Leon (neither can he) throwing the state into further chaos.

Fortunately, there is a small group of thoughtful, committed citizens, as Margaret Mead would say, who want to change the world - or the state, more precisely. The Center for Michigan, an Ann Arbor think-and-do tank, on Thursday released its 35-page, common-ground agenda for the Michigan's Defining Moment campaign.

It's chock-full of priorities for the state to embrace leading up to the 2010 election, including education, bipartisanship, quality of life and economic diversification, thanks to hours of work from more than 1,800 citizens. And in the interest of full disclosure, I was one of the wonks who helped write part of the report.

More importantly, the campaign has real-world strategies and is a call to action. In a sense, it's a blueprint for how the Great Lakes State can come of age even with a hamstrung term-limited Legislature, dismal economy and outmoded, underfunded schools.

Newspaper magnate Phil Power started the center after he sold his company in 2005 and decided, "I'll be damned if I will let the Florida sand flow through my toes and stick my hands in my jacket pocket while my state is going to hell."

Former Gov. Jim Blanchard tells me he's optimistic: "I just can't believe the great state of Michigan can stay down."

That's why I love this state, why I want to fight for it. And that starts with my decision to stay put.

Michigan is becoming Clinton's secret weapon

Susan J. Demas
The Detroit News

If you punched your ballot for "uncommitted" in Michigan's Jan. 15 Democratic presidential primary to back Barack Obama, your vote might have essentially gone to Hillary Clinton anyway.

While all eyes were locked on Pennsylvania for the last six weeks, Clinton was quietly amassing delegates in the Wolverine State. And she was rewarded this past weekend with a significant victory at the district conventions.

This development naturally has been overshadowed by her big win Tuesday night in Pennsylvania. But the race for the Democratic nomination wasn't decided then and won't be by the remaining contests -- not North Carolina, Indiana or even Guam -- because the real fight is over delegates. And Michigan remains a key battleground.

On Aug. 25, Clinton will march into the national convention in Denver stronger than most people realize, thanks to her aggressive ground game in Michigan.

Buoyed by party elder support, Clinton seems likely to capture more than 60 percent of the state's 128 pledged delegates, according to an analysis by the Michigan Information & Research Service. Including the 28 superdelegates, which lean heavily in the New York senator's favor, she could win upward of 70 percent of delegates, provided that they're seated with full voting power.

That depends on the Democratic National Committee, which punished Michigan for leapfrogging the primary schedule. There is no deal yet to seat the delegation. But the Clinton camp is working overtime to ensure the elected slate is sent. Keep in mind that Clinton won 55 percent to uncommitted's 40 percent since Obama wasn't on the ballot. He has pushed for a 50-50 percent delegate split, but that proposal hasn't gained traction.

It's becoming apparent that Obama should have consented to a revote here. He certainly wouldn't have lost by 15 percentage points or more; polls have pegged the pair in a dead heat. But Obama seemed spooked that Clintonites put forth the plan and the money, so he quashed the do-over last month.

Now Obama is paying the price in delegates, starting with the Michigan Democratic Party's 15 district conventions on Saturday. The Clinton battle plan was flawlessly executed with an eye toward a contested convention. Their delegate roster is crammed with big names like former Gov. Jim Blanchard and Lansing Mayor Virg Bernero.

"We wanted to pick people who would be loyal to Hillary, who would commit to her through multiple ballots," Blanchard says.

Michiganders for Obama, a ragtag group of new volunteers, triumphed in turnout Saturday but were steamrolled by the Clinton machine. Obama has proved to be a master of organization, but he made a tactical error not to plump up his skeletal apparatus in Michigan.

As a result, he will almost certainly fall short of the 36 uncommitted delegates selected. Volunteers argued that only Obama supporters should be uncommitted delegates, but they were outmaneuvered. About half of the uncommitted delegates reserved the right to vote for Clinton, depending on whom their unions eventually endorse.

While union officials flatly deny they're in the tank for Clinton, Obama supporters point out that United Auto Workers Legislative Coordinator Nadine Nosal was elected in the 8th District as an alternate Clinton delegate. That underscores the fact that Obama's speech to the Detroit Economic Club last year, calling for higher federal fuel economy standards, went over with labor leaders like a lead balloon.

In May, the party's labor-heavy, Clinton-friendly central committee chooses the remaining 45 delegates, setting up a scenario of more uncommitted delegates switching to Clinton.

Given her narrow path to the nomination, Clinton and her aides have argued that pledged delegates are fair game to flip. Although they've since backed away from such statements, the Michigan delegate conventions show the Clinton delegate strategy is being set into motion. What this could mean is four very interesting days in Denver. Although the odds still favor Obama -- who leads in delegates, the popular vote and states won -- he has to be a bit rattled over two losses in one week.

If Clinton comes out on top in a floor war, we might well look back at the Michigan mêlée as the turning point.

Did Clinton Forces Infiltrate "Uncommitted" Delegates at Michigan Dem Convention?

by Susan J. Demas

Buzzflash Guest Contribution

If you voted "uncommitted" in the Michigan primary to support Barack Obama, your vote might have essentially gone to Hillary Clinton anyway.

The Michigan Information & Research Service (MIRS) has learned that some of the 36 uncommitted delegates chosen at Saturday's district conventions say they're staying uncommitted and not backing Obama. That seems curious, because there are only two candidates left in the race and those backing Clinton could have caucused for her.

Michigan Democratic Party (MDP) Chair Mark Brewer gave those exact instructions to those attending the 15 sites. But Obama supporters say they might not have been heeded to give Clinton even more than the 55 percent of delegates she won on January 15.

This could be a harbinger of what is to come. A MIRS analysis of superdelegates shows most favor Clinton (See "Advantage Clinton In MI Super Delegate Hunt," 3/19/08). The central committee will choose another 45 pledged delegates, and party elders are largely pro-Hillary. When all is said and done, Clinton likely will walk away with more than 60 percent of Michigan's pledged and superdelegates, perhaps more than 70 percent.

That is if the delegates are seated with full voting power. Negotiations are still ongoing with the Democratic National Committee, although it's not clear what the makeup would be. Obama has proposed splitting them 50-50. So there's a chance more chaos could ensue down the road, although MDP spokeswoman Liz Kerr said they'll cross that bridge when it comes.

Clinton, by and large, had the establishment on Saturday. Former Governor Jim Blanchard, who didn't attend the 9th District, but was elected a delegate, said the Clinton forces were well organized with an eye toward a contested convention. "We wanted to pick people who would be loyal to Hillary, who would commit to her through multiple ballots," said Blanchard.

There was Michiganders for Obama, an upstart group trying to organize but it was behind the curve since the candidate never campaigned here.

Some Obama supporters were especially suspicious on Saturday of the "unity slates" made up of members of the UAW, which hasn't endorsed a candidate. Attendees said there were shouting matches and massive confusion at the 9th District convention. UAW member Catherine Martin was elected as an uncommitted delegate and plans to stay that way until the union endorses.

State Rep. Aldo Vagnozzi (D-Farmington Hills), an elected Obama delegate, points out Martin was elected by an "overwhelmingly Obama crowd."

The problem is the perception that the UAW backs Clinton. Nadine Nosal, legislative coordinator for the UAW, was elected in the 8th District as an alternate delegate supporting Clinton.

The UAW flatly denies it's pro-Clinton. Nosal said the union put delegate candidates in both caucuses because it's neutral. As for the Obama supporters' criticism, she said, "I don't perceive it to be what they're saying."

The Clinton campaign has been unusually quiet about the Michigan conventions. Clinton and national advisers have said that Obama's pledged delegates are fair game to flip, although they've backed away from statements afterward. Still, Clinton is making an aggressive behind-the-scenes push with superdelegates and to massage the nominating process to ensure she gets the nomination, even if she's behind in the delegate count, popular vote, and states won.

The MDP hasn't released an official list of the 83 delegates and 15 alternates. Kerr said it hasn't been policy to do so in past years until a few days before the national convention.

The remaining 45 of the 128 pledged delegates will be selected at the central committee meeting in May.

Derrick Johnson is an uncommitted delegate from the 15th District who supports Obama and also is head of the Washtenaw County Board of Elections. He said he's heard from Obama backers in other districts who were concerned they were outmaneuvered by Clinton supporters.

"If you're uncommitted, our message is that you shouldn't be uncommitted now. There are only two people left. If you support Clinton, there's a process for her delegates. Uncommitted should be for Obama," Johnson said. "It wasn't a problem in our district, but I think we had a different culture there than in some others."

Vagnozzi said there were four times as many Obama supporters than Clinton backers in the 9th, which seems to fit the statewide pattern. But the MDP doesn't have attendance numbers yet.

When asked if that was surprising, given the fact that Clinton won the primary, Vagnozzi said, "I think it shows the election wasn't an accurate reflection. Obama wasn't on the ballot. Clinton was."

He said the most important thing is for the delegation to be seated, because a Democrat will never win the White House without Florida and Michigan.

Vagnozzi acknowledges that scenario doesn't favor Obama.

"It might, but it's much more important to seat Michigan than any downside to it."

Nosal said it was her "hope and prayer" that the Democrats rally around the nominee whenever that's decided. "We need to come together. We need to elect a Democrat -- I feel so strongly about that. Otherwise, we'll have four more years of what we've already had eight years of."

Clinton stacks the deck for re-vote

“Saturday Night Live” is clearly in the tank for Hillary Clinton, but here’s what you might not know: so is the Michigan Democratic establishment.

That’s the disingenuous backdrop to the frenzied debate over a do-over primary in the Great Lakes State after Clinton’s comeback last week.

She’s locked up Gov. Jennifer Granholm, former Gov. Jim Blanchard and Sen. Debbie Stabenow. And let’s not forget House Energy Chair John “The Truck” Dingell, whose wife, Democratic National Committeewoman Debbie Dingell, (not coincidentally) engineered the botched Jan. 15 primary to be Clinton’s firewall.

So much for that.

There’s also Michigan Democratic Party (MDP) Chair Mark Brewer, who swears on a stack of Bibles that he’s neutral. But everyone knows he was a big fan of fellow labor guy John Edwards and jumped to Clinton after he dropped out.

Who’s in Barack Obama’s camp? Rep. John Conyers, Teamster President James Hoffa and a smattering of state legislators, which means the Clintonistas hold most of the cards in the battle over a re-vote.

By now, the world knows Michigan’s primary was a bad joke straight out of SNL. Unlike Florida, Clinton was the only major candidate on the ballot; Obama and Edwards yanked their names off as soon as the Democratic National Committee erased the state’s delegates for brazenly flouting party rules.

Last fall, even Clinton called the contest meaningless.

She only mustered 55 percent against no one (a.k.a. “uncommitted”) in the race for zero delegates, which Pennsylvania Gov. Ed Rendell cleverly spun on Sunday’s “Meet the Press”: “You run against uncommitted, that’s the toughest election to win.”

Yeah, right.

As it stands, Obama has stingily hung on to his 100-plus delegate lead, even with Texas (which he won anyway in delegates) and Ohio.

That means the Clinton camp needs to reset the electoral math equation to win. And voila! Michigan and Florida have reemerged as the battleground.

Problem is, Clinton still can’t catch up unless Obama nets zero delegates in some contests. Enter Blanchard, who proposes “all-or-nothing” primaries in the two states in a last-ditch attempt to give a Clinton nomination electoral legitimacy.

If you don’t like the rules, change ‘em. Worked for the Soviet Union.

Granholm has been less blatant, casting an eye to the federal bench or a cabinet post with either candidate, though her heart belongs to Hillary. (When Obama was on a winning streak, the gov notably was one of the first to glom onto the “dream ticket” scenario).

So Granholm’s thrown out the idea of a “firehouse primary,” a scaled-back contest on a Saturday.

Of course, it’s still murky how the Mitten State – which just hiked taxes to plug a $2 billion deficit – can afford another primary after shelling out $10 million for a worthless one in January.

One solution you’re not hearing about is a less-costly caucus – which the state party has traditionally held in presidential years. But caucuses have favored Obama’s hustle and organization, and thus have been deemed “undemocratic” by Team Clinton.

That surely will come as news to first-in-the-nation Iowa.

Sen. Carl Levin, who doesn’t have a dog in this fight and thus has moral standing, backs a mail-in re-vote. Sounds sensible, especially from a cost perspective, but there’s no way to snuff out the stench of becoming a banana republic.

The truth is, there aren’t any great solutions here.

But Brewer wants his delegates – he’s staked his reputation on this fight. The staunch Granholm ally is negotiating furiously, insisting the outcome will be fair to Obama, since the MDP, DNC and both campaigns all have to sign on.

Many Obama backers would leap at the chance to vote for him for the first time. But Brewer’s promises ring flat - kind of how the Arab world scoffs at the idea of the United States as an honest broker in the Middle East peace process.

Let’s be clear - nobody is pure in this. The Obamaniacs want their guy to win and some are willing bend the rules accordingly. State Sen. Buzz Thomas, D-Detroit, for instance, wants to split Michigan’s delegates 50-50.

The difference is, he’s in absolutely no position to make that happen. The Clinton cabal has stacked the deck.

What they don’t realize is ultimately, their strategy is a house of cards.

The most ominous sign for Clinton is her crushing defeat in Detroit, where uncommitted pulled 70 percent of the vote. Our biggest city – which is economically decimated and 82 percent black – already feels disenfranchised.

Clinton could irreparably alienate the party’s most dependable voting block - and racially explosive remarks by supporters like Geraldine Ferraro don’t help.

After all, how does a Democratic presidential hopeful ever carry Michigan? Stockpile big margins in Detroit to offset outstate returns.

Yep, Hillary can win this hand. But I’ll bet she still loses in the end.

Governor’s financial panel members look to ’09 budget

By Susan J. Demas
For the Enquirer

Gov. Jennifer Granholm on Tuesday trumpeted an ambitious education and economic development agenda during her State of the State address, but vowed not to raise taxes this year.

The Democrat will fill in some of the fine print when she unveils her fiscal 2009 budget next week. The House Fiscal Agency forecasts the state is on track to be $275 million in the black.

But missing from her 53-minute address were many recommendations made by her own Emergency Financial Advisory Panel on solving the state’s short- and long-term budget problems.

In January 2007, Granholm appointed the bipartisan, 12-member panel chaired by former governors William Milliken, a Republican, and Jim Blanchard, a Democrat. The group (nicknamed the 12 Apostles) penned a 19-page report on Feb. 2 as the state was facing a $3 billion shortfall for fiscal 2007 and 2008.

"I honestly don't know how many people read our report," Blanchard said.

That sentiment was echoed by several members of the panel -- former state Senate Majority Leader Dan DeGrow, former state Rep. Don Gilmer and former U.S. Rep. Joe Schwarz.

"The report is applicable today as it was when it was written," said Schwarz, I-Battle Creek. "I would make a strong suggestion for all men and women in the Legislature to reread it. Some of them never read it in the first place. This should be their top priority. The bell rings as soon as the governor's State of the State and it's not going to be any easier in fiscal 2009."

The report’s general theme of solving the state's structural deficit with “cuts, reforms and revenues,” popped up frequently in speeches by Granholm and other Democrats. Last year, she and lawmakers struck an 11th hour deal to increase business and income taxes by more than $1 billion and allow competitive bidding for school employee health insurance, which Republicans have tried to get through for years.

Schwarz called last year’s cuts and reforms “nip and tuck.”

“The fact remains, you can clearly point out structural problems. The structural deficit is still there," Schwarz said. "Taxes and spending and the structure of state government still have significant problems."

"My advice would have been to solve it all at once so you don't have to do it again," said DeGrow, R-Port Huron. "(Former Gov.) John Engler always said, 'If you have to take a hit, take it early, so you get it over with and don't have to take the hit again.'”

Several of the report’s recommendations, like the Internet tax, were left on the cutting room floor. The report notes the growing service sector is not taxed, but the Legislature made little headway, passing and quickly repealing last fall a tax on a hodgepodge of services.

But in spite of last year’s messy budget wars, Blanchard says he “remains optimistic about Michigan’s future.

“It’s too great of a state to be kept down,” he said.

Making the cuts

On Tuesday, Granholm made scant mention of cuts and reforms, besides promising to slash red tape for businesses by making Michigan a regulatory “one-stop shop.”

Though Senate Majority Leader Mike Bishop, R-Rochester, said the governor had “borrowed a page from the Republican playbook” with her promise not to raise taxes, his caucus wants action to reduce spending and make government leaner.

"It's time to focus on reforms and making investments to lead Michigan into the future," agreed Gilmer, R-Augusta. "We're still providing more government than we have the resources to pay for it."

The Emergency Financial Advisory Panel made several recommendations, including cuts to the $2 billion Corrections budget. Michigan incarcerates more than 50,000 at a cost of $31,000 per prisoner. The nonpartisan, Lansing-based Citizens Research Council reports Michigan could save $500 million if its incarceration levels matched other Midwest states.

Gilmer urges a bicameral, bipartisan committee meetings taking 30 to 40 hours worth of testimony on sentence reform, rehabilitation and recidivism.
The report also said skyrocketing state employee and retiree benefit costs need reform and schools and local governments must consolidate services.

DeGrow said the state could restructure revenue sharing with local governments. The time might be right to let local taxpayers decide what priorities they want to fund instead of getting a blanket amount of state revenues, he said."In an era where state government is so strapped, do we fund something that's optional?" DeGrow said.Consolidation needs to happen on both the local and state levels, Schwarz said.

"There are 19 state departments and I'm not sure they're all necessary," he said. "There can be a consolidation of functions — I'll leave it at that."

Strategic investments

In her State of the State, Granholm did address some of the panel’s findings.

She pushed spending on infrastructure to create 28,000 jobs. She also proposed several education initiatives, such as incentivizing colleges and universities to turn research into businesses. Her Michigan First Health Care Plan providing access to the uninsured popped up, although the state has been in a holding pattern, waiting on a federal waiver for several years.

Panel members want the state to prioritize infrastructure and education, strategically investing in areas research shows will attract businesses and skilled workers.

"You still hear voices that we should cut taxes by $1 billion," Gilmer said. "That would completely destroy any opportunities to invest in our infrastructure, things for people to take notice of Michigan."The gas tax — which hasn't been raised since 1995 — should be on the table to fund road projects, Schwarz said.

Higher education has taken the hardest hit by the budget crisis, he said. Funding has been slashed by 11 percent from 2002 to 2007, the Presidents' Council, State Universities of Michigan reports. Tuition has soared, with most of the state’s 15 public universities last year passing double-digit tuition hikes.

"We've already damaged that a lot," DeGrow said. "Say what you will about Gov. Engler, but he valued higher education. We never cut higher ed."

If Schwarz could pass on one piece of advice to leaders during this year’s budget negotiations, it would be: "Have the courage to do what's right, not what's expedient."This isn't going to be easy to try to run a state of 10 million people with a rapidly changing economy with a government structured for the 1960s. Be bold and courageous."