Executive director’s message

Where are talented people going?

By Daniel P. Gilmartin

Last night I went on a long walk in the neighborhood with my eleven month old son. I hadn’t planned on going out but when I arrived home from the office I got the “I’ve been here all day with a teething baby and I need a break!” look from my wife Lori. Having seen that glare before I knew just how serious it could be. So although I was tired myself, I grabbed Graham and the stroller and out we went into the twilight for a little father and son time.

We only made it three houses when I spotted our neighbor Julie stacking boxes in her garage. When I asked what she was up to I was surprised to hear that she was getting ready to move to Portland, Oregon. Although she admitted to being nervous about leaving home, she was clearly excited about joining the thriving knowledge-based economy in the Pacific Northwest and experiencing the high quality of life that Portland and its surrounding communities have to offer.

Julie is a young, highly educated individual who until recently had a big job with one of the auto companies. She is the kind of person that all the policy makers claim that they want to attract to Michigan, yet she, like many others, is moving on elsewhere.

We talked for a few minutes longer until Graham began to fuss, cutting the conversation short. As we resumed our walk I couldn’t help but feel a little anger building inside me about our conversation. I certainly wasn’t angry with Julie for moving since she was only doing what most of us would do if confronted by a similar situation. What irritated me was that I had heard this type of story so many times before and yet most state policy makers appear almost disinterested in implementing a meaningful strategy to slow the “brain drain” of talented, young people from our state.

It seems that all anyone in the Legislature is interested in talking about when it comes to anything economic is our tax structure, with the latest debate centered on the elimination of the Single Business Tax (SBT). Yet Julie’s move has nothing to do with the SBT. She doesn’t pay it, and I doubt she even knows what it is. I bet she doesn’t know anything about the Oregon tax structure either. She is headed to that city because there is abundant economic opportunity there due in large part to the state’s willingness to invest in its own future.

Whether it is Portland or any other region whose prospects are soaring, public investment in communities plays a leading role in driving the economy and attracting knowledge-based workers and businesses. Do you think the City of Portland’s extraordinary open spaces get maintained for nothing? What about the economically imperative public transit systems in greater Chicago? Or Charlotte’s brand new downtown?

I have read at least a dozen studies about cities, regions and states that are succeeding in the new economy. The reports make it crystal clear that a positive state and local partnership that includes significant public investment in communities is a major part of the recipe for success, especially in attracting knowledge-based workers and businesses. Unlike previous generations, today’s young, educated people choose where they want to live first and then they look for a job. But in Michigan our short-sited recipe to date has been quite different – a $2 billion cut to state shared revenue, repeated legislative attacks on local revenue streams, and a lack of consensus on transportation strategies that has resulted in millions of federal dollars being left on the table in D.C. All of these decisions have had a damaging effect on cities and villages in Michigan. Our soup, it seems, doesn’t taste so good, especially to those who matter so much to our future economic prospects.

Vibrant communities attract talented people. Talented people attract knowledge-based businesses. Together they make for a strong economy and a higher quality of life for everyone. If you don’t believe me, just ask Julie.

Daniel P. Gilmartin, executive director, Michigan Municipal League, 734-699-6302, 800-653-2483 or dpg@mml.org.