Michigan ranks 2nd in Bloomberg study of states’ economic health

Posted on November 2, 2011

Michigan’s economic health is second-best in the nation, according to a prominent national ranking released today.

Bloomberg, a respected global leader in business and financial information, released its first-ever economic health evaluation during a conference in New York City. The Bloomberg analysis considered important indicators such as personal income, tax revenue, employment and housing prices.

This pure analysis of data has placed Michigan at the top echelon on the ranking, second only to North Dakota, which is experiencing an economic boom fueled by oil exploration.

Gov. Rick Snyder said the Bloomberg Economic Evaluation of States shows that Michigan’s strategy for regaining its economic vigor is on track.

“Michiganders are pulling together to do what’s best for our state and the results are paying off,” Snyder said. “The fact that our shared accomplishments are recognized by one of the country’s premier financial information providers should reinforce our commitment to keep driving forward. Let’s continue with our reinvention of Michigan so future rankings have us as No. 1.”

Michigan’s budget, approved by the Legislature and signed by Snyder, put Michigan on a strong footing that provides fiscal stability now and into the future. It eliminated one-time fixes and overspending, paid down future liabilities and sends a strong signal to job providers that Michigan is open for business.

“This is good news and it shows that Michigan is ripe for economic growth,” said Mike Finney, president of the Michigan Economic Development Corp. “We have strong corporations headquartered in our state and we have created an environment for new entrepreneurs to succeed. This has propelled Michigan toward the top of the Bloomberg ranking.”

By lowering businesses taxes, eliminating the Michigan Business Tax and removing other barriers to growth, Michigan is leaping from one of the bottom tax climates in the nation to a more competitive position. The nearly $1.8 billion reduction in business taxes promises a new level of economic certainty for businesses and makes Michigan an attractive environment for growth.

Earlier this year, Fitch Ratings also took note of Michigan’s progress. This balanced budget based on solid financial principles helped move Fitch’s outlook for Michigan to “positive,” another sign that Michigan is on the right path and that our fiscally sound environment is ripe for economic growth.

And just this week, the U.S. Small Business Administration reported Michigan’s banks and credit unions led the country in providing government-backed small-business loans, according to new data from the U.S. Small Business Administration.

The Detroit Free Press reported that from October 2010 through September 2011, $689 million in small-business loans went to businesses in a variety of industries in Michigan. During that time frame, lenders made 2,063 of the most popular type of SBA loans, called 7(a) loans, up 47 percent from the 1,406 loans worth $386 million in fiscal 2010.