Dear friends,
We all know our state is suffering the brunt of an economic crisis that has resonated throughout the world. Michigan families everywhere are making heroic sacrifices just to get by, and are setting an example of courage in the face of hardship that deserves both honor and respect.
During my time in Lansing, I have made it my priority to bring new jobs and economic opportunities to Genesee County in order to ease the pain of this economic crisis. I believe that we can best do that by diversifying our state's economy, doing everything we can to maintain a workforce that's second to none, and working aggressively to bring new industries to Michigan that will play key roles in the 21st century economy; businesses in renewable energy, advanced manufacturing, and life sciences.
With this newsletter, I hope to keep you up to date on my efforts to realize these goals, and highlight some of the good things that are happening in the state. Bad news always sells more newspapers, and bashing Michigan has suddenly become the hot thing to do for some uninformed southern Senators, but I know that our efforts to get workers back on the job and get more money into the pockets of our working men and women are positioning our state to be a leader in the high-tech, high-growth industries of the future.
I will never stop fighting for Michigan, and I always want to hear what you think. I encourage you to contact me if you have any issues, concerns, or if you just want to voice your opinion. Remember, the best ideas come from people, not politicians. You can reach me toll-free at (800) FLINT-49, by e-mail at leegonzales@house.mi.gov, or by postal mail at P.O. Box 30014, Lansing, MI 48909-7514.
Sincerely,
Lee Gonzales
State Representative
House District 49
Where we're at now
As of this writing, Michigan's unemployment rate is the highest it's been in a generation, at 12.6 percent. Across Flint and Genesee County, foreclosures have left neighborhoods vacant, and businesses are finding it tougher and tougher to keep their doors open every day. Our working families are wondering whether the end of the week is going to bring a paycheck or a pink slip.
Obviously, times are tough. Nobody ever said this was going to be easy. But I know that nobody keeps Michigan workers down for long. With the help of our friends and neighbors, we'll get through these tough times even stronger.
We've already taken steps in the Michigan House that will grow our economy and get our workers back on the job.
Here's what's happening right now.
Advanced Batteries
At the end of last year, the Governor signed my plan to provide tax credits to companies involved in the manufacturing, production and development of advanced battery technologies, such as those found in hybrid or electric vehicles. This bipartisan plan was recently expanded by an additional $220 million to $555 million, allow more companies to consider Michigan when looking to locate their operations.
I'm very happy to announce that four companies recently announced plans to make nearly $2 billion of economic investment in our state in order to take advantage of these tax credits. Their proposals will create nearly 7,000 good-paying jobs for Michigan workers, and position our state to be leader in this growing industry that will play a key role in our economic recovery. Michigan was the state that put the world on wheels, and with this tax credit plan – the first of its kind in the nation – we're poised to create the green vehicles that will drive the world for years to come.
But don't take my word for it. According to the non-partisan Center for Economic Analysis at Michigan State University, the economic impact of my initial $335 tax credit plan will likely create nearly 90,000 jobs and provide Michigan with over $18 billion in economic activity by the year 2020. And this analysis was conducted before the recent $220 million expansion, which promises to provide more jobs and economic investment in our state.
Renewable energy
If we're going to diversify Michigan's economy, we need to look at bringing new, high-growth industries to our state that will play a key role in a 21st century economy. That's why I was pleased with Michigan's passage of a law last year that requires the state to have at least 10 percent of its energy production come from renewable sources by the year 2015.
By embracing renewable energy producers, we're getting a head start on what is sure to be a huge industry in the coming years. Already, parts for wind turbines are being produced in the Thumb, in mid-Michigan and in Northwest Michigan. Photovoltaic cells for solar energy are being produced by Hemlock Semiconductor in Bay City (?) and more and more renewable energy companies are coming to Michigan every day because they see the opportunity and promise our state has in this key industry.
Where we're headed
Though we've taken some important steps, more needs to be done. Let me highlight some of the things I'm working on in the Michigan House in order to strengthen our economy and create and protect jobs for our working men and women.
Centers of Energy Excellence (map of Michigan insert with locations)
Created in 2008, Michigan has six Centers of Energy Excellence, which combine support from both the public and private sectors, as well as our Michigan universities, in order to promote research and development into new energy technologies by focusing on areas that will provide the greatest benefit for Michigan's economy and natural resources.
The six Centers of Energy Excellence include efforts to convert waste to energy, produce superior advanced rechargeable batteries, take advantage of improvements in biorefineries and create new and better forms of ethanol. Together, this comprehensive effort to advance our understanding of energy and how we can better use it will benefit not only Michigan, but the world.
Michigan Renewable Energy Sources Act
With the promise of renewable energy and the boon it can provide both Michigan's economy and green spaces, we must explore all avenues to increase adoption of renewable sources of energy. One way I've been looking to do this is by learning about the European example and whether it would work here in the United States. One of the ways that the Europeans promoted the growth of renewable energy in their countries was to embrace feed-in tariffs, which set a guaranteed rate per kilowatt-hour for renewable energy production and allows individuals and businesses to sell their renewable energy back onto the grid for a profit. In Germany, this plan promoted aggressive and dramatic growth in their renewable industry.
In April, I held an event in Lansing and invited representatives from Europe, as well as some of the leading energy minds here in the state, to discuss this and other options to increase our renewable energy use. I'm encouraged by what came out of that meeting, and what it could mean for our state's future. I've also recently introduced legislation that would enact a feed-in tariff system here in Michigan, called the Michigan Renewable Energy Sources Act
Update on transportation stimulus funds
As the chair of the House Appropriations Subcommittee on Transportation, I was recently tasked with ensuring that worthy projects across Michigan received funding from federal stimulus money in order to improve our roads and bridges and create jobs for our workers.
With the nearly $900 million in federal funding, more than 23,000 Michigan workers will be back on the job, rebuilding the highways and byways that Michigan automakers have made famous. This investment in our infrastructure will not only make our roads safer to drive on, but they'll attract new economic development and potential investment in communities across Michigan.
Bills introduced by Rep. Gonzales
HB 4582 (signed by the Governor on March 31, 2009) – The bill authorized $873 million in federal stimulus funding for transportation projects across Michigan as part of the American Recovery and Reinvestment Act.
HB 4326 (referred to House Judiciary Committee) – The bill would strengthen Michigan's identity theft laws by giving law enforcement the tools they need to charge offenders and toughening consumer protections.
HB 4137 (referred to House Energy and Technology Committee) – Known as the Michigan Renewable Energy Sources Act, my plan would allow individuals and businesses to sell the renewable energy they produce back onto the grid.
HB 4377 & 4419 (referred to House Regulatory Reform Committee) – These bills would prohibit smoking in public places, places of employment and food service establishments. The plan provides exemptions for cigar bars and tobacco specialty stores, as well as the gaming floor of a casino.
HB 4394 (referred to the House Transportation Committee) – This bill would prohibit text messaging while driving in Michigan.
HB 4426 (passed House, referred to Senate Committee on Economic Development and Regulatory Reform) – Part of comprehensive plan to shine a light on how the catastrophic rate each Michigan driver is forced to pay is assessed, this legislation would require an annual audit of the Michigan Catastrophic Claims Association.
HB 4531 (referred to House Labor Committee) – Part of an aggressive plan to protect the privacy of employees, this plan would prohibit employers from making employment decisions based upon certain legal conduct that is unrelated to employment, off the employer's premises and during non-work hours.
HB 4698 (referred to House Judiciary Committee) – This legislation would strengthen penalties on those who commit perjury in front of the Legislature to a felony with a sentence of 15 years imprisonment.
HB 4551 (referred to House Commerce Committee) – This plan would ensure transparency in the awarding of state economic development projects by requiring the state to not approve any funds if a business has failed to disclose a civil or criminal offense.
Helping struggling homeowners
With this struggling economy, many of our families are an illness or a lost job away from losing their home to foreclosure. Michigan's foreclosure rate is one of the highest in the nation, and nearly 150,000 properties went into foreclosure in the state last year. When a family loses their piece of the American Dream, it doesn't just hurt that family. It has a ripple effect that lowers property values, drives away businesses, and invites criminal elements into neighborhoods.
With these sobering statistics in mind, I voted to extend a 90-day lifeline to homeowners who seek help. With this reprieve, residents at risk from foreclosure will sit down with a housing counselor and their lender in order to come to a solution that works for both parties. When I talk to families who have suffered through the pain of foreclosure, what they tell me is that through the constant calls from lenders and the other bills and issues they're struggling with, what they need is some time and space in order to get back on their feet. With this plan, they'll have that time.
Unfortunately, the Senate recently stripped out the plan's references to judicial foreclosure. Without this, lenders have no incentive to come to an agreement, giving them ultimate veto power even when a homeowner is eligible to refinance at a lower interest rate. I will fight to ensure that this plan benefits the working men and women who need help most, not the lenders and banks who spend millions donating to politicians.
Free publications
With summer approaching, I want to make sure you and your family have the free Michigan guides and publications that will help you plan a great vacation. Simply cut out the coupon below and mail it to me at P.O. Box 30014, Lansing, MI, 48909-7514.
You can also request any of these publications by e-mail at leegonzales@house.mi.gov, or toll-free at (800) FLINT-49. Please remember to include your name, address, city and zip code.
Free Michigan Publications Coupon
Michigan Lodging & Tourism Directory
Michigan Travel Ideas: The Official State of Michigan Travel Guide
State of Michigan Highway Map
Paying for College in Michigan: An Educational Resource Guide
Getting to Know Michigan Coloring Book
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