Eastern Michigan
Budget Forum July 14, 2011
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Eastern Michigan Budget Forum – July 14, 2011
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Ninth in series of campus budget discussions w/President Martin that began
in the Summer of 2009 (Last Forum - May 4, 2011).
•
Focus on Eastern’s budget and financial position as well as topics impacting
our budget and external environment.
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Today’s Agenda
•
Introduction
President Martin
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“The New Agenda for a New Michigan”
Lou Glazer, President
Michigan Future, Inc.
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FY12 Budget Update
John Lumm
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www.michiganfuture.org
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Our goal
A high prosperity
Michigan
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What state do we want to emulate?
State
Per capita
income (09)
Unemployment
(10)
Poverty
rate (09)
Education
attainment (09)
Oklahoma
$35,837
7.1 %
16.2 %
22.73 %
Minnesota
$41,854
7.3 %
11.0 %
31.50 %
Michigan
$34,315
12.5%
16.2 %
24.59 %
U.S.
$39,635
9.6 %
14.3 %
27.90 %
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10 Most Prosperous States
Connecticut
New York
New Jersey
Virginia
Massachusetts
Alaska
Wyoming
Washington
Maryland
New Hampshire
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Traits of prosperous states
• High proportion of wages from knowledge
industries
• High proportion of college grads
• Big metro with higher per cap income than state
• Largest city in that metro has high proportion of
college grads
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What is the knowledge economy?
public
leisure other administration
10%
services
3%
goods
information
5%
5%
trade trans
utilities
7%
financial
activities
11%
health
21%
education
21%
prof and
business
services
17%
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Michigan’s income rank aligned
with our college attainment rank
Per Cap Income
% 4 year degree
10
18
15
20
34
36
25
37
30
35
2000
2009
40
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10 Most Prosperous Regions
• San Jose/San Fran.
• Seattle
• Washington/Balt.
• Houston
• NY/Newark
• San Diego
• Hartford
• Denver/Boulder
• Boston/Worchester
• Philadelphia
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Major metros smarter
Education attainment by metro population
35%
33%
30%
30%
25%
23%
24%
25%
26%
.5-1 m
1-1.6 m
20%
15%
10%
Under .2 m
.2-.5 m
1.6-3.5 m 3.5 m and
up
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Major metros richer
Per capita income by metro population
$50,000
$45,667
$45,000
$40,000
$35,000
$33,304
$35,304 $35,734
$37,470
$39,490
$30,000
$25,000
$20,000
under .2 m .2-.5 m
.5-1 m
1-1.6 m
1.6-3.5 m 3.5 m and
up
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Metro Detroit vs.
Metro Minneapolis
City
Per cap
income
Education
attainment
Share of wages from
knowledge industry
Minneapolis
11
7
13
Detroit
41
39
31
2009 Rank among 55 metros 1 million
population or more
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Metro Grand Rapids vs.
Metro Minneapolis
City
Per cap
income
Education
attainment
Share of wages from
knowledge industry
Minneapolis
9
7
10
Grand
Rapids
54
44
54
2009 Rank among 55 metros 1 million
population or more
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Metro Lansing vs. Metro Madison
City
Per cap
income
Madison
$ 42,456
$ 33,273
Lansing
% bachelors
degree or more
38.90 %
29.09 %
Share of wages from
knowledge industries
63.61 %
65.33 %
2009 data
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High education industries
growing in U.S.
5.83%
Employment change 2001-09
6.00%
4.00%
2.00%
$45,558
$59,926
0.00%
-2.00%
-0.79%
All industry
Low education
-4.00%
$33,383
High education
-6.00%
-5.79%
(2009 average wage)
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High education industries
doing best in Michigan
Employment change 2001-09
0.00%
$54,964
-5.00%
-10.00%
-4.97%
$43,645
-15.00%
All industry
-15.66%
Low education
-20.00%
-25.00%
$34,646
High education
-22.59%
(2009 average wage)
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2007.12
2008.01
2008.02
2008.03
2008.04
2008.05
2008.06
2008.07
2008.08
2008.09
2008.1
2008.11
2008.12
2009.01
2009.02
2009.03
2009.04
2009.05
2009.06
2009.07
2009.08
2009.09
2009.1
2009.11
2009.12
2010.01
2010.02
2010.03
2010.04
2010.05
2010.06
2010.07
2010.08
2010.09
2010.1
2010.11
2010.12
2011.01
2011.02
2011.03
2011.04
2011.05
Index value (100 in Dec. 2007)
Recession accelerates trends
Employment in High and Low Education Attainment
Industries, Michigan and the U.S., 2007.12 to 2011.05
105
100
95
90
85
80
75
U.S. High Ed
U.S. Low Ed
Date Mich High Ed
Mich Low Ed
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Our conclusion:
The places with the greatest
concentration of talent win!
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Young talent is
aggregating in
urban regions
Younger college grads
Blue = With children
Red = Without children
Our recommendations
•Align Michigan culture with the flat world realities
•Create places where talent wants to live
•Ensure success of vibrant higher ed system
•Reinvent K-12 education to align with new realities
•Develop new public and – more importantly –
private sector leaders
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Bottom line
We must get younger
and better educated
or
we will get poorer
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For more information about Michigan Future,
our reports or what the media is saying,
please visit our Web site at:
www.MichiganFuture.org
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