2007 ECONOMIC REPORT OF THE GOVERNOR Jennifer M. Granholm Governor of Michigan
by user
Comments
Transcript
2007 ECONOMIC REPORT OF THE GOVERNOR Jennifer M. Granholm Governor of Michigan
2007 ECONOMIC REPORT OF THE GOVERNOR Jennifer M. Granholm Governor of Michigan 2007 ECONOMIC REPORT OF THE GOVERNOR Jennifer M. Granholm, Governor Transmitted to the Michigan Legislature April 2008 April 2008 To the Members of the Michigan Legislature and the People of the State of Michigan: This document, the 2007 Economic Report of the Governor, has been prepared to describe to you the current economic challenges we are facing, and update you on some of the important steps we have taken to meet those challenges. In last year’s report we discussed the painful transition Michigan is undertaking. Michigan has been losing jobs since 2000 as the domestic auto companies have restructured to better compete in the global market. The abundance of high-paying manufacturing jobs that brought prosperity to the state in the 20th Century will not be there to ensure prosperity in the 21st Century. While manufacturing will continue to be important to Michigan, Michigan will need to pursue jobs in a number of areas to succeed. In the past couple of years, Michigan has made important progress in laying the groundwork for the future. Michigan replaced the outdated single business tax with the Michigan business tax, a tax designed to make Michigan more business friendly and attract businesses to the state. Recently the Governor signed a film incentive package that gives Michigan the best incentives in the nation to make movies. Our economic plans include engaging in the largest tourism promotion effort in Michigan history; creating jobs while providing $800 million in infrastructure for our colleges and universities and other public facilities; committing $300 million in new investment for job creating companies that need assistance with capital; revising the incentives offered by the Michigan Economic Growth Authority to make them more flexible and competitive, and providing new tools for growing the alternative energy industry. Michigan has put in place a new rigorous high school curriculum so that our students will be better prepared for the jobs of the future. Michigan has enacted the Michigan Promise scholarship to help ensure access to college for all Michigan families. The No Worker Left Behind program provides training opportunities to workers adversely affected by the recent economic shifts. There is more work to be done, but we have made significant progress. I hope this report provides useful information to individuals, policymakers, and businesses on where our great state stands, and I hope it stimulates discussion to generate the great ideas that will keep our state moving forward. Sincerely, Jennifer M. Granholm Governor JENNIFER M. GRANHOLM STATE OF MICHIGAN DEPARTMENT OF TREASURY ROBERT J. KLEINE GOVERNOR LANSING STATE TREASURER April 2008 The Honorable Jennifer M. Granholm Governor of Michigan State Capitol Lansing, Michigan 48909 Dear Governor Granholm: It is my pleasure to submit to you the 2007 Economic Report of the Governor. The Report highlights the economic challenges being faced by our state and some of the important steps being undertaken to address these challenges. The Report provides an overview of Michigan’s economy and recent economic events and the challenges created by these events. The report then discusses the numerous reform efforts underway. In addition, the report contains detailed statistical tables describing a number of important features of Michigan’s economy. We hope this report provides useful information to individuals, policymakers, and businesses which will help them in decision making as they strive to make our state a better place to live and work. Sincerely, Robert J. Kleine State Treasurer Acknowledgements This Report was prepared by the staff of the Office of Revenue and Tax Analysis of the Michigan Department of Treasury. Important contributions were made by Diane Burton, Evah Cole, Scott Darragh, Jeff Guilfoyle, Denise Heidt, Andrew Lockwood, Mindy Parshall and Thomas Patchak-Schuster. The Michigan Department of Treasury is solely responsible for the accuracy of the information presented in this Report. i 2007 Economic Report of the Governor Table of Contents Introduction............................................................................................ 2 Background on Michigan’s Economy ................................................... 2 Auto Sector Restructuring ..................................................................... 9 Housing................................................................................................ 12 Federal Stimulus Package .................................................................... 14 Michigan Business Tax........................................................................ 15 Moving Michigan Forward .................................................................. 17 Conclusion ........................................................................................... 21 Appendix.............................................................................................. 22 Statistical Tables ..................................................................... 23 ii Appendix A Statistical Tables Table A-1 A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 A-20 A-21 A-22 A-23 A-24 A-25 A-26 A-27 A-28 A-29 U.S. and Michigan Labor Force and Unemployment ............. 23 Michigan Manufacturing and Durable Goods Employment............................................................................ 24 Michigan Manufacturing and Nondurable Goods Employment............................................................................ 25 Michigan Nonmanufacturing and Private ServiceProducing Employment .......................................................... 26 Michigan Payroll Employment by Major Category................ 27 Public Sector Employment in Michigan ................................. 28 State of Michigan Classified Employees by Department Per Fiscal Year........................................................................ 29 Michigan MSA and County Employment and Unemployment Rates.............................................................. 30 Michigan Labor Force Statistics by Age, Race and Sex – 1999 and 2007............................................................... 33 U.S. and Michigan Employment, Employment Shares, and Location Quotient for 2006 ................................. 34 New Incorporations in Michigan ............................................ 35 U.S. and Michigan Manufacturing Industries Average Weekly and Hourly Earnings.................................................. 36 Michigan Personal Income, by Major Source......................... 37 Michigan Personal Income, by Industry ................................. 38 U.S. and Michigan Personal and Per-Person Income ............. 39 U.S. and Michigan Real Personal and Per-Person Income .................................................................................... 40 County and Metro Area Per-Person Income ........................... 41 Michigan Gross State Product by Sector – Millions of Dollars ................................................................................ 44 U.S. and Detroit Consumers Price Indices and Inflation Rates – Calendar Year.............................................. 45 U.S. and Detroit Consumers Price Indices and Inflation Rates – Michigan Fiscal Year .................................. 46 U.S. and Detroit Consumer Price Indices Detail .................... 47 U.S. Interest Rates ................................................................ 48 U.S. and Michigan Resident Population ................................. 49 Michigan Population by County ............................................. 50 U.S. Population, Ranked by State........................................... 53 U.S. Motor Vehicle Stocks, Age, and Michigan Vehicle Registrations.............................................................. 54 U.S. Motor Vehicle Sales ....................................................... 55 U.S. and Michigan Motor Vehicle Production ....................... 56 New Private Housing Units Authorized in Michigan MSAs ...................................................................................... 57 iii A-30 A-31 A-32 A-33 A-34 A-35 A-36 A-37 A-38 A-39 A-40 A-41 A-42 A-43 A-44 A-45 A-46 A-47 A-48 A-49 A-50 Median Price of Existing Homes – Michigan Metropolitan Areas, 1988-2007 ............................................. 58 10-Year State of Michigan Revenue History ......................... 59 State Revenue Limit Calculation – Article IX Section 26 ............................................................................... 60 Counter Cyclical Budget and Economic Stabilization Fund ........................................................................................ 61 Michigan Real Property State Equalized Value (SEV) by Class................................................................................... 62 Michigan Real Property Taxable Value (TV) by Class .......... 63 Michigan Personal Property State Equalized Value (SEV) by Class ....................................................................... 64 Michigan Real and Personal Property Values, Taxes and Tax Rates.......................................................................... 65 Michigan State Equalized Value (Taxable Value), by Local Unit of Government ................................................. 66 Michigan General Property Taxes, by Local Unit of Government ............................................................................ 67 Michigan School Property Taxes............................................ 69 Homestead Property Tax Credit.............................................. 70 Historical Distributions of State Revenue Sharing by Type of Local Unit of Government ................................... 72 State and Local Total Tax Burden Comparisons, FY 2005 .................................................................................. 73 State and Local Property Tax Burden Comparisons, FY 2005 .................................................................................. 74 State and Local Sales Tax Burden Comparisons, FY 2005 .................................................................................. 75 State and Local Income Tax Burden Comparisons, FY 2005 .................................................................................. 76 Business Taxes as a Share of Total State and Local Taxes and Private Sector Gross State Product, Council on State Taxation Estimates, FY 2006 ...................... 77 Total Business Establishments by State.................................. 78 Michigan Major Sector Payroll............................................... 79 Total Private Employment, Payroll, and Number of Establishments by County ...................................................... 80 iv 2007 Economic Report of the Governor 1 Introduction In many ways, 2007 was a difficult year for the state of Michigan. Michigan’s employment declined for the seventh straight year in 2007. The slowing economy resulted in lower revenues and the need for significant cuts in both the FY 2007 and FY 2008 state budgets. However, the state did make significant progress in a number of areas in 2007, including improving the state’s tax climate, reducing the state’s structural deficit, and improving the state’s cash flow. As this report will make clear, Michigan’s economic woes can be attributed directly to the struggles of the domestic automakers. When Michigan’s automakers dominated the world market, they generated income that led to the prosperity of both workers and shareholders. The automakers produced an abundance of jobs helping to secure a middle class lifestyle for millions of Michigan workers. Intense global competition has led to the steady erosion of the market share of the three Michigan based manufacturers, Ford, GM, and Chrysler (the “Big 3”). The reduced market share coupled with significant manufacturing productivity increases has reduced the Big 3’s need for workers and has led to significant downsizing in the state’s automotive employment. As the automotive sector begins to stabilize, employment in Michigan will stop falling, and the state’s economy will begin to grow once again. However, the stabilizing of Michigan’s economy will not result in an automatic return to prosperity. It is unlikely that the auto industry will be the engine of economic growth in the future that it was in the past. Michigan will need to turn to other sources for the high paying jobs of the future. Michigan will be in competition for these jobs with the other forty-nine states as well as with Europe, China, India, Mexico, and other rapidly developing countries. To be successful in the future, Michigan needs to put the right pieces in place now to be competitive. Michigan needs to create a business climate that will attract businesses to the state, and Michigan needs to train its citizens with the skills that businesses will be seeking. Recently, Michigan has made some important strides. Michigan took key steps towards preparing its workforce for the future with the passage of the Michigan Promise Scholarship and the enactment of one of the nation’s most rigorous high school curriculums. The business climate was dramatically improved when the single business tax (SBT) was replaced with the Michigan business tax (MBT). The MBT is more business friendly than the SBT and it provides significant incentives to invest in Michigan, to employ Michigan residents, and to perform research and development in the state. This report will summarize the current economic climate in Michigan and some of the economic challenges facing the state. It will discuss the actions that the state is taking to meet those challenges and prepare the state and its citizens for the future. It is hoped that this report will provide useful background information to state policymakers and the citizens of this state as they contemplate future actions the state can take to help ensure that Michigan continues to be a great place to live and work. Background on Michigan’s Economy The U.S. Census Bureau estimates that there were 10,071,800 people in Michigan in 2007, ranking the state the 8th largest behind California, Texas, New York, Florida, Illinois, 2 Pennsylvania, and Ohio. Michigan’s population has been flat in recent years with the population increasing by less than 50,000 in 9 of the past 11 years. Michigan’s population actually declined slightly in 2007 (-30,500) because net migration (-74,300) reduced the state’s population by more than births less deaths increased it (42,700). Michigan’s negative net migration is not primarily due to residents leaving the state, but rather is attributable to very low in-migration. Between 2000 and 2006, Michigan ranked last among the states in annual out-migration. Michigan out-migration averaged 1.7 percent per year compared to the U.S. average of 2.4 percent. However, Michigan also ranked 49th lowest for in-migration, with in-migration of just 0.5 percent, compared to the national average of 2.8 percent.1 Fewer People Leave Michigan Than Other States Average of Annual Rates from 2000-2006 Rate of Out-Migration To Other States State Rank United States 2.4% District of Columbia Alaska Wyoming Hawaii Nevada 8.3% 7.3% 5.0% 4.5% 4.2% 1 2 3 4 5 California Ohio Wisconsin Texas Pennsylvania Michigan 1.9% 1.8% 1.8% 1.8% 1.8% 1.7% 46 47 48 49 50 51 Source: Michigan Department of History, Arts, and Library using U.S. Census data. 1 This information based on data from State Demographer, Ken Darga, March 2008. 3 Fewer People Migrate to Michigan Average of Annual Rates from 2000-2006 Rate of In-Migration State From Other States Rank United States 2.8% District of Columbia Nevada Alaska Wyoming Arizona Idaho 7.3% 7.0% 6.0% 5.6% 5.5% 5.3% 1 2 3 4 5 6 Illinois Ohio Michigan Califonia New York 1.9% 1.8% 1.6% 1.6% 1.2% 47 48 49 50 51 Source: Michigan Department of History, Arts, and Library using U.S. Census data. Texas, California, and Florida added the most residents between 2000 and 2007 adding 3.1 million, 2.7 million, and 2.3 million residents respectively. Michigan had the 30th largest increase in residents between 2000 and 2007, adding 133,300 people. By contrast the two states ranking just below Michigan in overall population added significantly more residents than Michigan. Georgia added 1,358,000 residents between 2000 and 2007 and now stands just 527,000 residents behind Michigan, while North Carolina added 1,015,000 residents and stands 1,011,000 residents behind Michigan. In percentage terms, the fastest growing states are generally, but not always, low population states. Nevada grew the fastest in percentage terms between 2000 and 2007, adding 567,000 residents, representing a 28.4 percent increase. Other fast growing states included Arizona (23.5 percent), Utah (18.5 percent), Georgia (16.6 percent), and Idaho (15.9 percent). Michigan had the 45th highest percentage increase in population growth with 1.3 percent growth, ahead of Pennsylvania (1.2 percent), Ohio (1.0 percent), Rhode Island (0.9 percent), West Virginia (0.2 percent), and North Dakota (-0.4 percent). Michigan’s population is concentrated in the southeastern portion of the state. The state’s three most heavily populated counties are Wayne, Oakland, and Macomb, which together contain almost 40 percent of the state’s population. Kent County, the location of the City of Grand Rapids, contains 6 percent of the state’s population. Michigan’s most populous counties also represent the highest concentration of Michigan private sector workers. Wayne, Oakland, and Macomb Counties account for 45 percent of the state’s private sector employment and 52 percent of the state’s private sector payroll. Kent County has 4 8.5 percent of the state’s private sector employment and 7.9 percent of the state’s private sector payroll. Michigan Labor Force Statistics Unemployment Rate (%) Category Age 16 - 24 years 25 - 44 years 45 - 64 years Over 65 years All Groups 1999 9.1 2.9 2.0 2.3 3.8 2007 14.0 7.0 4.7 3.5 7.1 Change 4.8 pts 4.0 2.8 1.2 3.3 Labor Force Participation Rate (%) 1999 71.9 85.0 72.9 12.0 68.5 2007 61.6 81.6 70.8 14.1 64.2 Change -10.2 pts -3.4 -2.1 2.2 -4.4 Source: Bureau of Labor Statistics, U.S. Department of Labor. Michigan’s civilian labor force consisted of 5,020,000 people in 2007, representing 64.2 percent of the population 16 and over. Of these workers, 92.9 percent were employed and 7.1 percent were unemployed. Michigan’s unemployment rate is lower for older workers, with just 3.5 percent of those 65 and older unemployed, compared to 14.0 percent for those ages 16 to 24 years. Michigan’s unemployment rate was significantly higher in 2007 than it was in 1999, with the rate rising from 3.8 percent to 7.1 percent. The unemployment rate is calculated with workers currently in the labor force. Workers that are not employed and that are not currently seeking work are not part of the labor force. Michigan saw a significant decline in the labor force participation rate between 1999 and 2007, with the participation rate falling from 68.5 percent to 64.2 percent. This decline is significantly higher than the decline at the national level where participation fell from 67.1 percent in 1999 to 66.0 percent in 2000. The extensive early retirement incentives offered by the auto companies over this time period is presumably responsible for a significant portion of Michigan’s decline. Workers who retire from a job who do not seek new employment opportunities are no longer included in the labor force and unemployment statistics. However, not all of the drop in the participation rate can be attributed to early retirements. The labor force participation rate for individuals ages 16 to 24 years dropped by 10.2 percentage points, from 71.9 percent to 61.6 percent. As noted above, this age group also has the highest unemployment rate. The employment difficulties faced by these workers highlights the need for programs such as the Michigan Promise Scholarship, and the No Worker Left Behind Program. 5 Michigan payroll employment totaled 4,262,000 in 2007.2 Major employment sectors include private service producing (66.0 percent of Michigan employment), government (15.4 percent), manufacturing (14.5 percent), and construction (3.9 percent). Major sub-sectors in the private service producing category include wholesale and retail trade (15.5 percent of total state employment), health and education services (14.0 percent), professional and business services (13.5 percent), and leisure and hospitality (9.5 percent). Michigan employment has been declining in recent years. Employment peaked in 2000 at 4,676,900, and fell 8.9 percent between 2000 and 2007. The downturn in Michigan employment is due to the sharp declines in the manufacturing sector employment, which has fallen 31.3 percent since 2000. The manufacturing declines are due primarily to restructuring in the domestic auto industry. The manufacturing share of employment has been declining in Michigan and nationwide for decades. The increased use of capital in production has led to significant productivity improvements that have allowed goods to be produced with less labor. In the middle part of the 20th Century, manufacturing accounted for approximately half of Michigan employment. By 2007, the manufacturing share of employment had fallen to 14.5 percent, meaning that manufacturing employment has gone from representing one in two Michigan jobs to just one in seven jobs.3 Employment growth at the national level was relatively weak between 2001 and 2003, with national employment growth at 0.0 percent in 2001, -1.1 percent in 2002, and -0.3 percent in 2003. U.S. employment growth turned positive in 2004, with employment growth of 1.1 percent, and then showed continued improvement in 2005 and 2006 with employment growth of 1.7 percent and 1.8 percent. Growth slowed to 1.1 percent in 2007. Michigan employment declined continually over this time period, with the sharpest declines occurring in 2001, 2002, and 2003. As the economic recovery took hold at the national level and U.S. employment growth improved, Michigan saw progressively smaller employment declines, with employment falling a marginal 0.2 percent in 2005. However, in 2006 and 2007 Michigan employment again fell sharply while the national economy continued to add jobs. 2 Michigan labor force, unemployment, and labor force participation statistics use statistics produced by the U.S. Bureau of Labor Statistics from a survey of households. The industry and employment statistics are from a survey of payroll employment also produced by the Bureau of Labor Statistics. The household survey includes domestic and self-employed workers and therefore provides a higher employment total than the survey of employers. 3 Changes in the definitions of industry classifications from SIC to NAICS makes employment data from before 1990 not directly comparable with current statistics, but the reduction in the manufacturing share of employment is pronounced under both classifications. 6 Change in Michigan Payroll Employment -0.2% -0.4% -1.4% -1.7% -1.6% -1.5% -2.4% 2001 2002 2003 2004 2005 2006 2007 Source: U.S. Bureau of Labor Statistics The 2006 Michigan employment decline came as a surprise. The national economy continued to be strong in 2006 and the initial statistical release put 2006 Michigan employment down just 0.4 percent compared to 2005. In March of 2007, revised Michigan employment statistics were released indicating that the employment decline for 2006 was in fact -1.1 percent, meaning that Michigan had lost 49,200 jobs in 2006 in contrast to the originally reported employment decline of 17,800. Employment from 2006 was revised further in March of 2008, and the decline now stands at 1.4 percent. The monthly data showed an even larger decline than the annual averages suggested, with the originally released December 2006 employment total lowered by 51,000 when the revised data were released. These employment declines reflect the fact that Michigan’s economy was rapidly weakening in the fall of 2006. The weakening was not reflected in the initially released employment statistics, but it was reflected in state revenues. Combined General Fund and School Aid Fund revenues finished FY 2006 $206 million below the May 2006 Consensus estimates, and the revenue forecast for these funds for FY 2007 was lowered by $556 million at the January Conference. Although auto related employment declined sharply in 2006, this was not the reason for the revisions. The transportation equipment employment totals were revised downward only slightly from -8.1 percent to -8.5 percent. Rather the largest revisions occurred in sectors that appeared to be growing prior to the revisions. Construction employment, which was originally reported to be flat in 2006, was revised to show a material weakening with the growth rate revised to -4.8 percent. Professional and business services growth was revised from a 3.2 percent increase in 2006 to a 0.7 percent decline. The 2006 employment revisions materially changed the short term outlook for Michigan’s economy. Prior to the revisions, it appeared that the strong national economy would provide enough support so that Michigan’s economy could start to recover despite the ongoing 7 restructuring in the auto industry. After the revisions, it became clear that auto sector employment declines were simply too much for the state’s economy to overcome in the short run and increased the likelihood that Michigan would be unable to show any employment growth until the restructuring in the auto sector had run its course. As will be discussed in more detail, the Big 3 offered extensive employee buyout programs in 2006 and 2007, dramatically reducing their headcount. The drop in Big 3 headcount had a significant effect on many other industries, causing these industries to also contract. The buyout programs accelerated the changes occurring in the auto industry, but most analysts believe the industry still has a couple of years of restructuring ahead of it. The continued restructuring combined with the slowing national economy makes it unlikely that Michigan employment will be able to show any employment growth before the end of 2009. In 2007, Michigan per capita personal income totaled $35,086, up 3.8 percent from 2006. Michigan per capita income was 91 percent of the U.S. total of $38,611, below even the 93 percent level hit in 1933. U.S. per capita personal income grew 5.2 percent in 2007, increasing the gap between U.S. and Michigan per capita income. Michigan per capita income consistently exceeded the national average from 1937 through 1981 due to the dominance of Michigan’s auto industry. Between 1981 and 1999, Michigan personal income hovered close to the national average and was approximately equal to the national average in 1999. Michigan Personal Income Falling Relative to U.S. Michigan per Capita Income as a Percent of U.S. Per Capita Income 1.3 122% 1.2 1.2 1.1 1.1 1.0 1.0 93% 0.9 91% 19 29 19 33 19 37 19 41 19 45 19 49 19 53 19 57 19 61 19 65 19 69 19 73 19 77 19 81 19 85 19 89 19 93 19 97 20 01 20 05 0.9 Source: Department of Treasury calculations from Bureau of Economic Analysis data. The restructuring of Michigan’s auto industry and the resulting employment declines have caused Michigan’s income growth to lag behind the nation. When the auto restructuring is complete, the gap between Michigan and national per capita income will narrow as previously idled workers find new employment. However, for Michigan to fully catch up or exceed the national average of per capita income, Michigan will need to invest in its workers to make sure they have the skills necessary to attract high paying jobs to the state. 8 Auto Sector Restructuring As noted, Michigan’s economy has been performing significantly worse than the national economy. The poor performance has raised questions as to the primary cause. Many possibilities have been suggested, but the restructuring of the Big 3 has always seemed the most likely explanation. According to a study published by the Upjohn Institute in the summer of 2006, Michigan’s recent slow growth is not due to excessive business taxes or inadequate job skills. Rather the study concludes that the auto industry has depressed Michigan’s employment growth since 2000 considerably, and that but for the auto downturn, Michigan’s employment growth would have been close to the U.S. average. In fact, the Upjohn study concludes that Michigan’s employment growth would have exceeded the U.S. average by approximately 0.3 percent per year, but for the restructuring in the auto industry.4 Michigan’s traditionally high concentration in auto sector employment has always made the state’s economy vulnerable to the swings in the auto industry. Michigan has more than 7 times the national concentration of auto workers. In recent years, Michigan has suffered from a sharp decline in the market share of the state’s auto manufacturers and this decline has led to a decline in automotive employment. As recently as 1997, the Big 3’s U.S. vehicle market share was over 70 percent. Since then, market share has declined sharply for a number of reasons including increased competition by foreign nameplates in light trucks and sport utility vehicles, rising gasoline prices, and changing tastes of domestic consumers. In 2007, the market share of the Big 3 was just 51 percent. Big 3 Auto Companies Losing Market Share 12.9 13.9 17.0 17.4 17.2 16.8 16.6 16.9 16.9 16.5 16.1 15.1 14.8 15.1 15.2 15.6 75% 70% 65% 60% 55% 50% 45% 40% 1992 1995 1998 2001 U.S. Light Vehicle Sales 2004 2007 Big 3 Share Source: Automotive News. Given relatively stable national vehicle sales in recent years, the sharp decline in Big 3 market share resulted in a sharp decline in Big 3 sales. As might be expected, this has also led to a significant reduction in employment. Between 2000 and 2007, Michigan vehicle employment 4 Timothy Bartik et al, “Michigan Economic Competitiveness and Public Policy,” State Tax Notes 42 no. 5 (October 30, 2006): 297-319. 9 fell by 40 percent. Vehicle employment is expected to continue falling over the next several years as Big 3 market share continues to decline. To cope with declining market share, the Big 3 have taken significant actions to improve their competitiveness. In the spring of 2006, GM offered a buyout plan to all of its hourly workers in an effort to reduce its national headcount by 30,000 workers. GM also announced the closing of a number of facilities, including the Lansing Craft Center, the Lansing Stamping Plant, the Flint Engine Plant, and the Ypsilanti Parts Distribution Center. Ford offered a similar buyout plan in the summer of 2006 and over 38,000 workers nationwide accepted, more than half its hourly workforce. Ford announced 14 facility closings nationally, including Michigan’s Wixom assembly plant. UAW Membership Shrinks Dramatically Total 316,000 190,000 31,000 66,000 10,000 48,000 94,000 Delphi Chrysler Ford GM 58,000 125,000 74,000 2003 2007 Source: Wall Street Journal 9/11/2007. In 1998, Chrysler and Daimler-Benz merged to form DaimlerChrysler. In 2007, the merger was dissolved as Cerebus Capital Management took an 80 percent stake in Chrysler, with Daimler maintaining the remaining portion. When Chrysler and Daimler merged in 1998, Chrysler was valued at $36 billion. In 2007, Cerebus purchased Chrysler for just under $8 billion. Significant changes were also made in the contracts agreed to between the Big 3 and the United Auto Workers (UAW) union in the fall of 2007. The new contract provisions create a second tier wage structure for workers with non-core jobs. Compensation for current employees is approximately $28 per hour. Workers hired in under the second tier will be paid approximately $15 per hour. In addition, the pension benefits provided to new workers will be significantly less generous than the benefits provided to current workers. 10 New Tier II Package for GM New Core Rate Existing GM Employees $15.30 Base ($14.00 Start) $28.12 Base Active Health Care 15% employee cost share + $600 Flex Spending Account 5% employee cost share Retiree Health Care In lieu of, $1.00/hr 401(k) contribution Future VEBA Trust Pension Cash Balance Plan at 6.4% Traditional Pension $25.65 $78.21 (incl OPEB) Memo: $60 excl. OPEB Base Wage 2008 All-in Cost/Hr Source: Center for Automotive Research Additionally, healthcare for retirees will now be provided through Voluntary Employee Beneficiary Associations (VEBAs) that will be funded by the Big 3, but controlled by the UAW. Once the VEBAs are funded, responsibility for providing healthcare to retirees shifts from the Big 3 to the unions. This change provides significant benefits for both the Big 3 and the UAW. The VEBAs allow the Big 3 to remove a significant liability from their books. The Big 3 are also able to fund the VEBAs at a discount from the full actuarial rate. The VEBAs allow the UAW to significantly reduce the risks associated with having the Big 3 responsible for retiree healthcare. The UAW will be in control of the assets and retiree healthcare will no longer be exposed to risk that one of the Big 3 might go bankrupt and be unable to provide healthcare to retirees. All of these changes have been very hard on Michigan’s economy. The dramatic reduction in Big 3 headcount and the associated loss of spin-off jobs have been the primary cause of Michigan’s economic woes. However, the recent changes will make the Big 3 much more competitive going forward. The Center for Automotive Research has estimated that the recent contract changes will reduce GM’s cost disadvantage with Toyota from $4,000 to $800 per car. 11 Housing The significant changes in the auto industry are close to having run their course, meaning increased potential for Michigan to return to employment growth. However, in 2007 it became apparent that the U.S. economy was going to slow significantly in the 4th quarter and into 2008. The primary reason for the U.S. slowdown is a sharp correction occurring in the U.S. housing market. The slowing U.S. economy will add pressure to Michigan’s struggling economy and limit any chance of employment growth over the next two years. Coming out of the 2001 national recession, the Federal Reserve sharply lowered interest rates. Between June of 2000 and July of 2003, the effective federal funds rate fell from 6.5 percent to approximately 1.0 percent due to a series of Federal Reserve rate cuts. These interest rate reductions led to sharp reductions in housing mortgage rates. The 30-year conventional mortgage rate fell from over 8.0 percent in early 2000 to approximately 5.5 percent in the middle of 2005. Adjustable rate mortgages fell even more sharply with one-year adjustable rate mortgages falling below 4 percent for much of 2003 and 2004 and many mortgages were offered with even lower “teaser” rates. The low interest rates, combined with the stock market declines occurring in 2000 and 2001, encouraged investment in residential housing. Home prices in many areas began to rise rapidly leading to speculation by investors and eventually turning housing into an asset bubble. The rapid rise in home prices was especially predominant on the coasts. In Los Angeles, a house purchased in January of 2000 for $200,000 would have been worth $547,000 in 2006 if its price grew at the average rate, a price appreciation of 173 percent. If the homeowner had purchased the house with a 20 percent down payment of $40,000 in 2000, the equity would have grown from $40,000 to $387,000, an almost ten-fold increase. Rates of returns of this magnitude encouraged increasing speculative building and borrowing. The rapid rate of home appreciation made homeowners feel wealthier and many of them borrowed against this increase in equity to finance consumption. 2007 House Prices Up Since 2000 But Down From 2006 133.0% 101.8% 87.7% 64.6% 60.0% 3.3% -4.5% Chicago -13.7% Los Angeles -3.4% Boston -5.6% New York Jan 2000 to Dec 2007 Phoenix Dec 2006 to Dec 2007 Source: Case Shiller Index and Department of Treasury Calculations 12 -15.3% -13.6% Detroit The rapid increase in housing prices has now come to an end. The drop in home prices has led to a sharp increase in foreclosures and triggered a crisis in the financial markets. At the peak of the housing boom, many lenders began offering mortgages to buyers who put little or no money down. In Los Angeles, home prices declined 13.7 percent from 2006 to 2007. Many homebuyers who purchased their homes close to the market’s peak now owe more on their mortgages than their homes are worth. Many homeowners who withdrew equity from their homes via home equity loans now also owe more than their homes are worth. As the housing market has weakened, delinquencies and foreclosures have risen. In the third quarter of 2007, 5.59 percent of borrowers were at least 30 days late making their mortgage payments – just below the record rate of 5.68 percent in 1986. A record 1.26 percent of borrowers were 90-plus days late. The percentage of homes starting foreclosure jumped in the third quarter to the highest level since the Mortgage Bankers Association began keeping track in 1972. The declines in the housing market are hitting the economy in four ways. First, the direct decline in residential construction activity directly reduces economic activity. Second, as home prices fall, consumers feel less wealthy and they scale back on consumption, creating a significant drag on the economy. Third, as banks have to absorb significant losses related to home mortgages, they become more conservative in their lending practices, reducing overall investment. Finally, many home mortgages were packaged and resold via complex financial instruments. It is difficult to tell who owns much of the bad mortgage debt. This uncertainty has made lenders reluctant to lend to anyone who may have exposure to the bad debt, further constraining the financial markets. The combination of these four factors will significantly reduce economic activity and could lead to a national recession in 2008. Housing Slows National Growth Significantly Contributions To Percent Change In Real GDP 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 1.6% 1.9% 2.7% 2.6% 1.0% 2.0% 1.4% -0.8% -1.3% -1.0% -0.9% -0.6% -1.1% -1.2% All Other Investment 0.9% 0.6% -1.5% -0.4% 1.3% 1.9% -0.5% Net Exports 0.5% -0.3% 1.3% -0.5% 1.3% 1.4% 0.4% Government 0.2% 0.1% 0.7% -0.1% 0.8% 0.7% 0.5% GDP Growth 2.4% 1.1% 2.1% 0.6% 3.8% 4.9% 0.6% 3.2% 2.4% 3.1% 1.5% 4.4% 6.0% 1.8% Consumption Residential Investment GDP w/o Residential Source: U.S. Bureau of Economic Analysis and Department of Treasury Calculations The decline in Michigan’s housing market can be seen in numerous statistics. New private housing units authorized in Michigan in 2007 totaled just 18,690 down 66 percent from the 2004 13 total of 54,721. The drop in some local units was even more profound. In the Detroit metropolitan area, new housing authorizations in 2007 were 81 percent lower than in 2004, falling from 22,990 to just 4,376, while in Ann Arbor there was a drop of 85 percent, from 2,708 to just 401. Data from the National Association of Realtors indicate that the median home price in the Detroit area fell 7.5 percent between 2006 and 2007. Prices in the Lansing metro area fell by 8.1 percent and prices in the Grand Rapids area fell by 3.8 percent. After declining by 5.0 percent in 2006, Michigan’s real estate transfer tax revenue fell by 20.2 percent in 2007. Federal Stimulus Package Recognizing the adverse effect the housing crisis was having on the national economy, Congress passed legislation aimed at stimulating the economy. The Economic Stimulus Act of 2008 was signed into law on February 13, 2008, in response to slowing economic conditions. The Act will provide approximately $152 billion of temporary tax relief to U.S. citizens in 2008, designed to stimulate both consumer and business spending and either avoid or mitigate a potential recession. The individual tax relief will be comprised of stimulus payments equal to a taxpayer’s net tax liability up to $600 for individuals and $1,200 for couples. Anyone with at least $3,000 of qualifying income (including wages, income from self-employment, Social Security, and certain veterans’ benefits) will receive a minimum payment of $300 for individuals and $600 for couples. Eligible families with dependent children under age 17 will also receive an additional payment of $300 per qualifying child. Individuals will receive their payments between May and July of 2008, in time for vacation season and back-to-school shopping. The payments to individuals will be phased out for taxpayers with adjusted gross incomes above $75,000 for individuals or $150,000 for couples. The U.S. Treasury Department estimates that 4.5 million Michigan households will receive approximately $3.8 billion in stimulus payments. The business tax relief is focused on new investments in 2008. For the 2008 tax year, small and mid-size businesses may immediately expense new purchases of up to $250,000 of new business equipment. Businesses may also take advantage of bonus depreciation, which allows all businesses to immediately deduct 50 percent of the cost of new investment in equipment and software. These provisions together will save U.S. businesses approximately $50 billion on their federal taxes for tax year 2008. While the impact of these provisions on the Michigan economy will no doubt be positive for 2008, their net impact on state tax revenues for fiscal years 2008 and 2009 is probably small. The individual stimulus payments, while not subject to Michigan income taxes, will raise sales and use tax receipts as Michigan residents increase their spending at stores and Michigan hotels. The stimulus payments will also likely increase lottery sales and gaming receipts at the Detroit casinos, adding to state revenues. The business tax provisions for 2008 will also flow-through to the Michigan business tax, resulting in lower business tax collections in fiscal years 2008 and 2009. 14 Michigan Business Tax5 From 1976 through 2007, the state’s single business (SBT) tax was Michigan’s primary business tax. When the SBT was enacted in 1976, it replaced a number of other taxes including a corporate income tax, a corporate franchise tax, the financial institutions income tax, and a property tax on business inventories. The SBT used value added as a tax base, which is the price of goods sold by a company less the cost of any goods the company purchased to produce those goods.6 Value added taxes are very popular in other countries but are seldom used in the U.S. The advantage of a value added tax base is that the base is broader and more stable than an income tax. Over the years, a number of special exemptions and alternative tax calculations were added to the SBT for various types of businesses that moved the SBT away from a pure value added tax base. The SBT had been blamed for a number of Michigan’s economic difficulties, and criticisms of the tax led to efforts to repeal the tax. The SBT was repealed effective December 31, 2007. The SBT has been replaced by the Michigan business tax (MBT), which began January 1, 2008. The MBT represents a major change from the SBT. The tax base for the MBT consists of adjusted gross receipts and business income, shifting more of the tax burden to the taxpayer’s ability to pay, while maintaining much of the tax base’s stability. The MBT also provides substantial personal property tax relief, and provides incentives to invest in Michigan, to employ Michigan residents, and to conduct research and development in the state. Special provisions reduce the tax burden for small businesses and the SBT revenues are fully replaced. The MBT tax base consists of adjusted gross receipts and business income. Adjusted gross receipts are taxed at a rate of 0.8 percent and business income at 4.95 percent. Insurance companies are taxed via a 1.25 percent tax on premiums written, and financial institutions face a tax of 0.235 percent on net capital assets. As part of the solution to balancing the FY 2008 budget, an additional surcharge of 21.99 percent was added to the MBT. The MBT surcharge replaced an expansion of the state’s use tax to a number of services. The use tax expansion was passed on October 1st of 2007 and was scheduled to begin December 1st of 2007, but it was repealed before it took effect. The starting point for the business income component of the tax base is federal taxable income from business activity. The tax applies to corporations and to non-corporate entities such as LLCs and partnerships. Unitary groups are required to file a joint return where the tax bases of group members are combined and a combined apportionment percentage is used. The modified gross receipts tax base is defined as a taxpayer’s gross receipts less the purchase of tangible goods from other firms before apportionment. Purchases from other firms are defined as inventory acquired during the year, depreciable assets acquired during the year, and materials and supplies, including repairs, parts, and fuel. 5 The MBT description in this section is intended to provide a high level overview of tax and should not be construed to represent an official interpretation of the statutory provisions of the MBT by the Michigan Department of Treasury. 6 For more information see Thomas Patchak-Schuster, “The Michigan Single Business Tax: 2000-2001,” Tax Analysis Division, Michigan Department of Treasury, February 2006. 15 The insurance company tax of 1.25 percent is levied in lieu of the modified gross receipts and business inventory taxes. The tax is equal to 1.25 percent of direct premiums written for property and risk in Michigan, so there is no need for insurance companies to apportion their tax base. The retaliatory tax as described in the insurance code is still in place (same provisions as the SBT). There is a separate tax base for financial institutions. Financial institutions are subject to a 0.235 percent franchise tax on net capital. Financial institutions are limited to: banks, thrifts, savings and loan companies, and certain companies related to these institutions through business organization. Net capital for financial institutions is defined as net capital as computed under Generally Accepted Accounting Principles (GAAP). It is the average of net capital for the current year and the four previous years. There are also special rules for apportioning the tax base of financial institutions. The MBT has a number of special provisions designed to help encourage employment and investment in the state of Michigan. As part of the implementation of the MBT, industrial personal property was exempted from the 6-mill state education tax and the 18-mill local school operating tax. Commercial personal property was exempted from 12 mills of the 18 school operating mills. A portion of the MBT is directed to the School Aid Fund to hold schools harmless from these exemptions. The MBT also has a 35 percent refundable property tax credit for industrial personal property. The reductions in the personal property tax burden will make Michigan more attractive to businesses when they decide where to invest in new plants and equipment. The MBT further entices businesses with an investment tax credit for investment located in the state. The tax credit rate is 1.52 percent for tax year 2008 and 1.90 percent thereafter. The MBT contains a generous compensation credit that can be claimed against Michigan compensation. The compensation credit rate is 0.296 percent for tax year 2008 and 0.370 percent thereafter. A credit can also be claimed for Michigan research and development expenses. The credit rate is 2.32 percent for tax year 2008 and 2.90 percent thereafter. The combined compensation and investment tax credits cannot exceed 50 percent of the taxpayers MBT liability in 2008 and 52 percent thereafter. The combined compensation, research and development and investment tax credits cannot exceed 65 percent of a taxpayer’s liability. The generous credit provisions in the MBT will make Michigan a more attractive place for firms to invest and hire. In addition, Michigan’s business tax burden with the MBT remains below the national average. The Council on State Taxation (COST) annually publishes state business tax rankings. Michigan ranks 28th highest among the states if the 2006 estimates are adjusted to include the MBT. Michigan’s effective tax rate as a percent of private sector GDP is 4.9 percent compared to the national average of 5.1 percent. 16 Michigan Business Tax Burden Compares Well with Neighbors Business Tax as % of GSP Rank Wyoming 10.8% 1 Illinois 5.3% 21 Minnesota 5.1% 24 U.S. Average 5.1% Wisconsin 5.0% 26 Indiana 4.9% 28 Michigan 4.9% 28 Ohio 4.7% 33 DE, NC, VA, CT, OR 3.9% 46 State Source: Council on State Taxation, figures are for FY 2006 adjusted for recent tax increase. Moving Michigan Forward Michigan enters 2008 at a key juncture. Many of the high paying manufacturing jobs of the past have been lost and will not be recovered. The state faces one to two more years of difficult economic times as the national economy slows and the domestic auto companies finish their dramatic restructuring. During this prolonged downturn, Michigan has taken important steps to position itself for the future. First and most importantly the replacement of the SBT with the MBT will substantially improve the business tax climate in Michigan. As noted above, the new tax will create strong incentives for firms to invest in Michigan and hire Michigan workers. Increasing the education level of Michigan’s workers is the key to attracting businesses and raising state living standards. As can be seen in the table below, the average income for workers with advanced education levels significantly exceeds the earnings for workers with less education. On average, high school graduates make more than 40 percent more per year than those with less than a high school education. Workers with some college or an associate’s degree earn 22 percent more on average than high school graduates, and workers with a bachelor’s degree earn 41 percent more on average than workers who have completed some college, but have not earned a bachelor’s degree. 17 Annual Earnings by Education Level 2006 $59,804 $45,221 $31,936 $26,123 $18,641 Less than High School High School Grad Some College or Associates Bachelor's Degree Graduate or Professional Degree Source: U.S. Census Bureau, American Community Survey Similarly, states with higher education levels tend to have higher per capita income levels. Of the ten states with the highest percentage of residents with a bachelor’s degree, nine are in the top ten in terms of per capita income. Similarly, of the ten states with the lowest level percentage of residents with a bachelor’s degree, six are in the bottom ten for per capita income. Michigan currently ranks 35th highest in terms of the percentage of residents who have earned a bachelor’s degree. Clearly, if Michigan is going to thrive economically, the education level of the state’s workforce needs to be improved. Recognizing the importance of education to the state’s future, Governor Granholm has worked hard on improving all levels of Michigan education. 18 Educated States Have Higher Income % With BA Dist. Columb. Massachusetts Maryland Colorado Connecticut New Jersey Virginia Vermont New Hampshire New York Michigan Oklahoma Indiana Tennessee Alabama Nevada Louisiana Kentucky Mississippi Arkansas West Virginia Education Rank Per Capita Income Income Rank 45.9% 37.0% 35.1% 34.3% 33.7% 33.4% 32.7% 32.4% 31.9% 31.2% 1 2 3 4 5 6 7 8 9 10 $57,358 $46,255 $43,774 $39,587 $50,787 $46,328 $39,564 $34,623 $39,655 $43,962 1 4 6 9 2 3 10 24 8 5 24.5% 35 $33,784 27 22.1% 21.7% 21.7% 21.1% 20.8% 20.3% 20.0% 18.8% 18.2% 16.5% 42 43 43 45 46 47 48 49 50 51 $32,398 $32,226 $32,305 $30,841 $39,015 $31,369 $29,719 $26,908 $28,444 $28,067 34 37 36 43 12 41 47 51 49 50 Source: U.S. Census Bureau and Bureau of Economic Analysis In 2006, the state adopted new curriculum requirements that will establish a highly educated, highly skilled workforce by requiring that all students complete: • • • • • • Four credits of math and English language arts; Three credits of science and social science; Two credits of foreign language; One credit of physical education and health; One credit of visual, performing, or applied arts; One online learning experience. The requirements were put in place for incoming eighth graders in the fall of 2006. With the goal of doubling the share of the state’s workers who have a college degree or advanced work training, the state implemented the Michigan Promise Scholarship starting with the high school graduating class of 2007. With the passage of the Promise Scholarship, every student in Michigan is now eligible for a $4,000 scholarship. Students who score well on the high school assessment exam will receive $1,000 during their freshman and sophomore years and earn the remaining $2,000 after successfully completing two years of post-secondary education. Students who do not receive qualifying scores on the high school assessment can earn the entire $4,000 scholarship by successfully completing two years of post-secondary education. Students must maintain a 2.5 grade point average in their postsecondary institution to earn a Promise Scholarship when they reach the two year point. 19 The Governor has also implemented the No Worker Left Behind (NWLB) program with the goal of helping 100,000 workers acquire the skills they need to get connected to good-paying jobs in today’s global economy. The program will provide up to two years of free tuition at any Michigan community college or approved training program. It allows displaced workers to receive needed training in high demand skills while receiving unemployment benefits. To qualify for the NWLB program, displaced workers will need to take a skills assessment test and must pursue an associate’s degree or attend a technical training program in a high-demand occupation, emerging industry, or entrepreneurship program. High-demand occupations vary from region to region, however, some common examples include health care, accounting and bookkeeping services, information technology, and auto service technicians and mechanics. NWLB will help to accelerate training to help workers transition to good-paying jobs in highdemand and emerging fields. It supports the state’s employers and economic development needs by filling job vacancies in fields that will bolster further economic growth. While much has been accomplished, much remains to be done. The Governor has proposed several additional education initiatives that if enacted would help move Michigan forward. The governor has proposed the 21st Century Schools Fund to help school districts replace large, impersonal high schools that have low academic achievements and high drop out rates with small high schools that use strong personal relationships, consistent discipline and real world relevance to help at-risk students achieve high academic goals. Inspired by the privately initiated and financed Kalamazoo Promise, Governor Granholm has proposed the creation of Promise Zones. The Kalamazoo Promise guarantees students who graduate from Kalamazoo Public Schools free tuition at any state university or community college in Michigan. The Promise Zones would be created in cities with a combination of low rates of educational attainment and high rates of poverty and unemployment. The funding provided will not replace private philanthropy. Participating communities will need to show a significant local financial commitment to qualify for the Promise Zone designation. The zones would allow local communities to capture half the growth in state property tax revenues and use them to supplement the local funds dedicated to making a “Promise” tuition guarantee. The state levies a 6-mill State Education Tax (SET) on all property in Michigan. Revenue from the SET is currently dedicated to the School Aid Fund. As the Promise Zones create higher property values and greater tax revenues in a community, the zones will capture that growth to continue to fund the Promise. These zones would work similarly to the tax increment financing districts that are routinely used to finance development projects both in Michigan and around the nation. In her 2008 State of the State message, Governor Granholm proposed the Michigan Job Creation Tax Credit, a one-time initiative to encourage businesses in many of the fastest growing industries nationally, from high-tech to homeland security to alternative energy, to create and grow jobs in the state. In addition to the credits for jobs already provided for in the MBT, high 20 growth businesses that create new jobs in the next year will triple their MBT compensation credit for four years. In addition, high-growth businesses with no presence in Michigan that relocate all, or even a portion, of a business here and create new good paying jobs will not pay the MBT on those new jobs in the first year and will not be fully liable for four years. Conclusion Michigan continued to face trying economic times in 2007 as auto sector restructuring created a significant drag on the state’s economy. The slowing national economy resulting from declines in the housing market makes it unlikely that Michigan can return to growth over the next two years. However, Michigan made significant progress in 2007 towards positioning the state to thrive in the future. Michigan replaced the single business tax with the Michigan business tax, a tax providing a much greater incentive for firms to locate and invest in Michigan and employ Michigan residents. Michigan has made significant strides towards preparing its workers for the future with the enactment of a rigorous high school curriculum, the enactment of the Michigan Promise Scholarship, and the No Worker Left Behind Program. While this decade has been one of the most trying in Michigan history, the state is well positioned to thrive in the years ahead. 21 Appendix 22 Table A-1 U.S. AND MICHIGAN LABOR FORCE AND UNEMPLOYMENT (Numbers other than unemployment rates are in thousands) Year 23 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Civilian Labor Force 99,009 102,251 104,962 106,940 108,670 110,204 111,550 113,544 115,461 117,834 119,865 121,669 123,869 125,840 126,346 128,105 129,200 131,056 132,304 133,943 136,297 137,673 139,368 142,583 143,734 144,863 146,510 147,401 149,320 151,428 231,867 United States Number Number Employed Unemployed 92,017 96,048 98,824 99,303 100,397 99,526 100,834 105,005 107,150 109,597 112,440 114,968 117,342 118,793 117,718 118,492 120,259 123,060 124,900 126,708 129,558 131,463 133,488 136,891 136,933 136,485 137,736 139,252 141,730 144,427 146,047 Source: Bureau of Labor Statistics, U.S. Dept. of Labor 6,991 6,202 6,137 7,637 8,273 10,678 10,717 8,539 8,312 8,237 7,425 6,701 6,528 7,047 8,628 9,613 8,940 7,996 7,404 7,236 6,739 6,210 5,880 5,692 6,801 8,378 8,774 8,149 7,591 7,001 7,078 Unemployment Rate (%) Civilian Labor Force Number Employed 7.1 6.1 5.8 7.1 7.6 9.7 9.6 7.5 7.2 7.0 6.2 5.5 5.3 5.6 6.8 7.5 6.9 6.1 5.6 5.4 4.9 4.5 4.2 4.0 4.7 5.8 6.0 5.5 5.1 4.6 4.6 4,107 4,234 4,335 4,325 4,296 4,258 4,258 4,315 4,363 4,411 4,505 4,560 4,625 4,620 4,589 4,662 4,712 4,804 4,835 4,888 4,963 5,008 5,089 5,144 5,144 5,040 5,033 5,046 5,070 5,073 5,020 3,769 3,935 3,993 3,801 3,758 3,595 3,636 3,825 3,924 4,020 4,130 4,213 4,292 4,262 4,162 4,235 4,365 4,509 4,577 4,647 4,749 4,810 4,897 4,953 4,876 4,725 4,676 4,690 4,722 4,722 4,660 Michigan Number Unemployed 338 299 342 524 538 662 622 490 439 390 375 346 332 358 427 427 347 296 258 241 214 198 192 190 268 315 358 356 348 351 360 Unemployment Rate (%) 8.2 7.1 7.9 12.1 12.5 15.6 14.6 11.4 10.1 8.9 8.3 7.6 7.2 7.7 9.3 9.2 7.4 6.2 5.3 4.9 4.3 4.0 3.8 3.7 5.2 6.2 7.1 7.1 6.9 6.9 7.2 Table A-2 MICHIGAN MANUFACTURING AND DURABLE GOODS EMPLOYMENT (Numbers in Thousands) Durable Goods Manufacturing Total Total Durable Manufacturing Goods Year 24 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 840.3 795.2 798.5 807.8 850.4 874.9 867.9 875.3 891.7 899.9 898.4 823.1 763.5 719.7 700.7 680.0 650.8 616.8 Primary Metal 666.2 624.3 625.5 631.2 668.5 689.0 681.9 690.8 706.3 715.7 718.1 656.5 605.6 567.8 551.4 530.8 504.7 474.7 37.9 34.9 33.5 33.1 34.3 35.3 33.6 33.7 34.3 35.4 34.5 31.4 28.3 27.5 27.6 26.9 26.0 24.7 Fabricated Nonmetallic Metal Transportation Mineral Products Equipment Products Machinery 86.1 80.3 79.2 81.5 87.4 91.8 91.9 93.6 95.5 97.1 97.5 89.0 84.5 82.9 83.4 84.3 83.1 80.0 315.6 295.2 303.4 299.5 316.0 322.8 317.7 322.6 332.3 341.5 346.1 317.0 296.9 274.0 259.3 241.2 221.4 203.5 16.0 15.2 15.2 16.0 16.8 16.7 17.2 18.0 19.2 19.7 20.1 18.5 17.6 16.5 15.8 15.5 14.9 13.9 Source: Bureau of Labor and Statistics, U.S. Dept. of Labor *Note: Other Durable Goods contains total employment for durable goods industries not specifically presented in the table. It includes employment in wood products, computer and electronic products, and miscellaneous durable goods. 95.7 88.6 87.1 89.6 96.1 103.7 103.9 104.3 104.7 103.5 102.3 89.6 79.7 76.5 75.7 75.3 73.7 69.7 Furniture & Related Products Other Durable Goods* 39.6 36.2 35.0 36.2 38.8 38.7 37.3 37.9 38.4 38.8 38.7 36.9 31.0 26.6 25.9 25.4 25.4 25.3 75.3 73.9 72.1 75.3 79.1 80.0 80.3 80.7 81.9 79.7 78.9 74.1 67.6 63.8 63.7 62.2 60.2 57.6 Table A-3 MICHIGAN MANUFACTURING AND NONDURABLE GOODS EMPLOYMENT (Numbers in Thousands) Nondurable Goods Manufacturing 25 Year Total Manufacturing 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 840.3 795.2 798.5 807.8 850.4 874.9 867.9 875.3 891.7 899.9 898.4 823.1 763.5 719.7 700.7 680.0 650.8 616.8 Total Nondurable Goods Manufacturing 174.1 170.9 172.9 176.7 181.9 185.9 186.0 184.5 185.4 184.2 180.3 166.6 157.9 151.9 149.3 149.2 146.2 142.0 Food Printing & Related Support Activities Chemical Plastics & Rubber Products 43.2 43.8 43.6 43.9 43.1 43.3 43.0 40.0 38.7 36.0 35.2 35.3 33.9 32.4 32.8 32.7 33.1 33.7 25.7 25.1 25.0 24.7 25.1 25.1 24.8 24.2 23.8 23.1 23.2 21.9 20.2 19.2 18.3 17.9 17.6 17.4 35.1 35.0 34.8 36.1 36.4 36.5 36.4 36.9 37.6 38.3 36.7 34.6 33.8 32.4 30.6 30.0 28.9 28.0 36.6 35.0 36.9 39.1 43.3 46.3 47.9 49.0 51.4 53.4 53.4 45.8 43.7 43.3 43.0 42.7 41.4 39.0 Source: Bureau of Labor Statistics, U.S. Dept. of Labor *Note: Other Nondurable Goods is the difference of Total Nondurable Goods Manufacturing and the industry data published by the Bureau of Labor Statistics. It includes food, textile, apparel, beverage and tobacco, leather and allied products, petroleum and coal products, and paper. Other Nondurable Goods* 33.5 32.0 32.6 32.9 34.0 34.7 33.9 34.4 33.9 33.4 31.8 29.0 26.3 24.6 24.6 25.9 25.2 23.9 Table A-4 MICHIGAN NONMANUFACTURING AND PRIVATE SERVICE-PRODUCING EMPLOYMENT (Numbers in thousands) Year 26 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Private ServiceProducing Education & Health Services Professional & Business Services Financial Activities Information Transportation & Utilities Retail Trade Wholesale Trade Leisure & Hospitality 2,321.0 2,315.6 2,345.3 2,410.0 2,499.5 2,589.7 2,663.0 2,726.4 2,769.1 2,811.2 2,878.0 2,840.7 2,829.2 2,812.6 2,819.5 2,838.7 2,824.9 2,814.3 411.7 422.8 434.6 446.3 455.2 470.2 485.6 489.3 484.8 491.7 502.1 517.8 535.1 546.9 560.9 575.8 583.3 595.0 395.7 403.2 422.9 447.2 483.5 515.9 539.3 567.8 597.0 612.9 635.3 604.1 593.9 582.9 581.2 588.5 581.6 573.3 192.8 189.9 188.5 190.8 193.9 196.2 201.1 204.5 207.7 206.9 209.4 210.4 214.9 218.3 217.4 217.9 215.8 211.4 70.8 69.2 67.9 67.8 67.0 67.9 70.2 71.8 74.1 73.9 76.7 76.0 73.8 70.3 68.6 67.3 66.1 65.6 117.3 115.7 116.3 119.6 127.0 128.0 127.6 129.6 131.2 134.1 135.4 132.0 128.2 125.8 125.7 128.3 128.4 129.1 502.8 489.6 486.0 493.6 508.9 523.8 534.4 540.1 542.5 550.6 559.8 548.8 530.7 518.7 513.6 506.0 496.0 489.7 155.0 152.6 151.6 153.9 157.7 160.8 164.8 173.4 179.8 183.6 186.0 180.4 175.4 172.6 170.5 170.7 170.6 169.1 330.8 328.9 330.9 339.9 348.2 364.0 371.4 378.4 379.0 383.5 398.2 394.3 397.9 398.1 402.0 404.5 405.6 404.5 Source: Bureau of Labor Statistics Other Services 143.9 143.7 146.6 151.1 158.1 162.9 168.6 171.5 173.0 174.0 175.3 176.9 179.3 179.1 179.6 179.6 177.5 176.7 Table A-5 MICHIGAN PAYROLL EMPLOYMENT BY MAJOR CATEGORY (Numbers in thousands) Year 27 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total Employment Construction Mining 3,946.5 3,884.3 3,918.8 3,998.9 4,141.5 4,268.8 4,352.8 4,439.1 4,514.0 4,585.2 4,676.9 4,564.2 4,487.5 4,416.5 4,399.5 4,390.3 4,327.1 4,262.0 143.1 130.0 128.5 132.5 142.0 152.9 168.5 180.3 187.4 197.0 209.6 206.1 199.6 190.6 191.5 189.1 178.0 166.2 11.5 11.1 10.8 10.8 10.8 10.7 9.7 9.9 10.0 9.6 9.5 9.3 8.6 8.1 8.2 8.4 8.0 7.6 Source: Bureau of Labor Statistics Manufacturing Private Service Producing Government 840.3 795.2 798.5 807.8 850.4 874.9 867.9 875.3 891.7 899.9 898.4 823.1 763.5 719.7 700.7 680.0 650.8 616.8 2,321.0 2,315.6 2,345.3 2,410.0 2,499.5 2,589.7 2,663.0 2,726.4 2,769.1 2,811.2 2,878.0 2,840.7 2,829.2 2,812.6 2,819.5 2,838.7 2,824.9 2,814.3 630.6 632.5 635.8 637.7 638.8 640.7 643.6 647.2 655.8 667.4 681.4 685.0 686.6 685.4 679.7 674.1 665.3 657.2 Table A-6 PUBLIC SECTOR EMPLOYMENT IN MICHIGAN (Numbers in Thousands) Year 28 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total Government Employment Federal Government State Government (1) Local Government 630.6 632.5 635.8 637.7 638.8 640.7 643.6 647.2 655.8 667.4 681.4 685.0 686.6 685.4 679.7 674.1 665.3 657.2 61.2 58.3 58.2 56.9 57.0 57.2 56.5 56.2 56.6 57.3 60.4 56.2 55.8 56.1 55.5 54.7 54.1 53.6 166.2 165.7 163.4 163.8 163.9 165.4 167.6 165.3 167.4 169.0 169.9 173.9 174.1 169.8 169.6 168.4 170.6 170.3 403.2 408.5 414.2 417.1 417.9 418.1 419.5 425.7 431.9 441.1 451.1 454.8 456.8 459.5 454.6 451.0 440.6 433.2 (1) In addition to classified civil service employees, state government employment includes employees of state-supported colleges and universities, the legislature and the courts. Source: Bureau of Labor Statistics Table A-7 STATE OF MICHIGAN CLASSIFIED EMPLOYEES BY DEPARTMENT PER FISCAL YEAR Department 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 29 Agriculture Attorney General Auditor General Biologic Products Institute Career Development Civil Rights Civil Service Community Health Consumer and Industry Services Corrections Education Environmental Quality Executive Office History Arts and Libraries Human Services Information Technology Labor & Economic Growth Lottery Management and Budget MI Jobs Commission Military and Veterans Affairs Natural Resources State State Police Strategic Fund Transportation Transportation Bridge Authority Treasury 631 547 163 77 -159 205 5,758 4,049 16,714 436 1,479 65 -12,443 --179 1,495 1,101 900 2,445 2,174 3,014 -2,960 150 1,531 632 549 169 --163 207 5,810 3,909 17,063 442 1,545 63 -12,836 ---1,719 1,149 949 2,510 2,231 3,159 -3,196 -1,765 657 559 174 --160 206 5,914 3,843 17,652 403 1,605 65 -13,254 ---1,936 1,055 987 2,506 2,257 3,190 -3,244 -1,826 697 558 179 -1,088 166 206 5,838 3,823 18,296 396 1,617 67 -13,139 ---1,931 -970 2,509 2,267 3,240 -3,253 -1,817 702 538 176 -1,079 164 200 5,370 3,735 17,821 393 1,567 58 295 12,554 ---1,851 -962 2,446 2,095 3,164 -3,185 -1,793 635 474 157 -911 135 176 4,465 3,186 17,222 298 1,370 51 287 10,303 1,730 --1,306 -919 2,265 1,836 2,800 -2,826 -1,514 687 489 150 -901 133 189 4,577 3,170 16,781 324 1,444 49 273 10,104 1,721 55 -1,277 -943 2,328 1,852 2,661 -2,956 -1,512 641 524 143 -34 131 210 4,424 209 16,543 352 1,419 45 203 9,953 1,675 3,751 -967 -928 1,669 1,705 2,704 -2,849 -1,535 575 528 142 --127 210 4,241 -16,446 367 1,430 44 200 9,778 1,690 4,128 -967 -924 1,657 1,672 2,690 -2,880 -1,564 535 517 138 --119 206 4,225 -16,357 369 1,423 44 196 9,759 1,712 3,967 -971 -934 1,628 1,622 2,657 174 2,895 -1,565 Total 58,675 60,066 61,493 62,057 60,147 54,866 54,573 52,614 52,259 52,013 Source: Michigan Department of Civil Service, Twenty-Seventh Annual Workforce Report Note: Starting in FY 2004-05, this report reflects classified employees who are full-time, part-time, permanent intermittent, limited term, seasonal and non career in primary positions only, except for the following non-career appointments: Student Assistant-E, Construction Aide (Trans)-E, and State Worker. Table A-8 MICHIGAN MSA AND COUNTY EMPLOYMENT AND UNEMPLOYMENT RATES Area Michigan 30 MSA Ann Arbor Battle Creek Bay City Detroit/Warren/Livonia Flint Grand Rapids Holland-Grand Haven Jackson Kalamazoo/Portage Lansing/East Lansing Monroe Muskegon/Norton Shores Niles/Benton Harbor Saginaw/Saginaw Township Number Employed 4,262,409 1990 Unemployment Rate (%) 7.7 Number Employed 4,953,421 2000 Unemployment Rate (%) 3.7 Number Employed 4,730,291 2006 Unemployment Rate (%) 6.9 151,177 60,241 49,532 1,944,008 181,283 318,654 99,352 66,391 144,810 219,693 62,583 67,264 75,691 90,004 4.8 7.3 8.0 8.1 9.5 6.2 5.3 7.1 6.0 6.1 7.6 8.4 7.0 7.7 180,898 67,459 54,525 2,200,338 205,505 389,541 132,456 76,396 166,938 240,498 74,756 82,089 79,424 96,132 2.3 4.1 4.0 3.7 4.4 3.2 2.6 3.4 3.2 2.9 3.2 4.1 3.8 4.1 182,667 67,302 51,964 2,012,527 195,492 387,740 131,564 73,160 166,227 237,340 73,936 84,793 74,002 91,737 4.6 6.8 6.9 7.2 8.2 5.9 5.2 7.1 5.5 5.9 6.5 6.9 7.0 7.5 3,419 3,462 43,176 12,864 7,991 5,621 2,998 23,636 49,532 5,361 75,691 18,311 60,241 22,942 10,349 13.1 9.2 6.1 10.2 10.1 9.0 10.5 6.2 8.0 11.7 7.0 7.3 7.3 7.3 8.4 4,164 4,139 56,168 14,676 11,070 7,210 3,852 29,433 54,525 8,011 79,424 22,527 67,459 26,234 13,198 6.8 5.4 2.8 5.5 4.6 5.8 6.5 3.3 4.0 4.5 3.8 3.8 4.1 3.2 4.5 4,000 4,165 53,661 14,019 11,273 7,170 3,839 29,701 51,964 8,629 74,002 21,158 67,302 26,479 13,370 10.5 7.8 6.0 7.6 7.7 9.9 11.0 5.2 6.9 7.6 7.0 7.4 6.8 5.3 7.6 County Alcona Alger Allegan Alpena Antrim Arenac Baraga Barry Bay Benzie Berrien Branch Calhoun Cass Charlevoix Table A-8 (Continued) 31 Area Cheboygan Chippewa Clare Clinton Crawford Delta Dickinson Eaton Emmet Genesee Gladwin Gogebic Grand Traverse Gratiot Hillsdale Houghton Huron Ingham Ionia Iosco Iron Isabella Jackson Kalamazoo Kalkaska Kent Keweenaw Lake Lapeer Leelanau Lenawee Livingston Luce Number Employed 9,258 12,990 8,285 29,431 5,015 15,396 11,555 48,390 12,823 181,283 7,321 6,682 33,601 16,861 19,290 13,520 14,300 141,872 24,386 10,227 4,827 24,369 66,391 113,945 5,541 255,007 516 2,406 33,645 8,229 40,571 58,172 2,200 1990 Unemployment Rate (%) 12.0 11.3 10.7 6.4 6.7 9.3 7.5 5.9 9.4 9.5 9.7 8.2 6.8 8.9 8.6 7.4 10.3 6.2 9.9 8.5 8.9 6.1 7.1 5.2 9.8 5.6 14.9 12.0 10.4 6.3 7.5 5.8 9.2 Number Employed 11,894 16,347 12,323 34,638 6,394 18,762 13,421 56,180 17,065 205,505 10,383 7,240 43,997 18,647 23,279 16,283 16,799 149,680 28,916 10,859 5,331 33,638 76,396 128,897 8,150 309,205 985 4,205 43,939 10,975 49,769 87,314 2,587 2000 Unemployment Rate (%) 8.1 6.3 5.4 2.6 4.6 5.3 4.1 2.8 5.5 4.4 5.3 6.3 3.4 4.5 3.7 4.9 4.6 2.9 3.6 6.5 5.8 3.3 3.4 3.0 4.6 3.1 6.2 5.7 4.3 3.0 3.7 2.6 6.0 Number Employed 12,194 16,398 12,254 35,915 6,426 19,349 13,907 56,421 18,850 195,492 9,954 7,270 46,590 18,915 20,766 16,872 16,387 145,004 29,051 10,348 5,645 36,573 73,160 127,625 8,311 307,024 977 3,812 41,438 11,249 46,897 89,214 2,681 2006 Unemployment Rate (%) 9.5 8.4 10.2 5.2 7.5 7.1 5.7 5.2 8.3 8.2 9.7 7.4 5.9 8.5 7.7 6.8 7.9 6.3 8.2 9.0 7.1 5.1 7.1 5.2 7.7 5.6 10.0 10.4 7.8 5.0 7.3 5.3 7.5 Table A-8 (Continued) 32 Area Mackinac Macomb Manistee Marquette Mason Mecosta Menominee Midland Missaukee Monroe Montcalm Montmorency Muskegon Newaygo Oakland Oceana Ogemaw Ontonagon Osceola Oscoda Otsego Ottawa Presque Isle Roscommon Saginaw St. Clair St. Joseph Sanilac Schoolcraft Shiawassee Tuscola Van Buren Washtenaw Wayne Wexford Source: Bureau of Labor Statistics Number Employed 5,343 362,128 8,398 29,552 11,185 15,146 11,213 35,709 4,820 62,583 20,364 2,753 67,264 15,626 567,932 10,065 6,509 3,667 7,805 2,688 8,787 99,352 5,352 6,505 90,004 65,557 27,161 16,978 3,199 31,761 23,592 30,865 151,177 856,576 10,901 1990 Unemployment Rate (%) 14.3 7.9 10.7 8.0 8.3 8.0 6.8 5.5 10.5 7.6 14.4 15.1 8.4 9.6 6.1 10.9 9.9 5.5 11.3 8.2 6.2 5.3 11.7 9.1 7.7 9.6 8.6 10.8 16.2 9.7 9.7 8.7 4.8 9.4 12.3 Number Employed 6,363 418,171 112,000 32,681 14,018 18,111 12,719 41,163 6,686 74,756 28,188 3,757 82,089 21,988 656,461 12,443 9,082 3,417 10,666 3,657 11,838 132,456 5,962 9,811 96,132 83,383 31,474 20,924 3,607 35,948 27,415 38,041 180,898 911,069 14,756 2000 Unemployment Rate (%) 7.5 3.6 5.3 4.3 4.8 4.3 4.1 3.2 4.4 3.2 4.1 8.1 4.1 4.6 2.9 5.9 5.4 6.4 4.5 6.1 4.1 2.6 8.3 5.5 4.1 4.2 3.4 4.6 8.1 3.9 4.6 4.0 2.3 4.3 5.3 Number Employed 6,041 391,252 11,333 34,125 13,983 19,118 12,481 40,426 6,367 73,936 25,167 3,891 84,793 21,965 594,361 13,575 9,182 3,317 9,549 3,697 11,768 131,564 5,613 10,167 91,737 77,419 29,594 21,073 3,727 34,244 27,062 38,603 182,667 818,844 13,952 2006 Unemployment Rate (%) 9.5 7.2 8.4 6.0 7.9 7.4 6.3 5.6 7.6 6.5 12.6 11.8 6.9 7.2 5.8 8.4 8.1 7.8 7.3 10.4 8.1 5.2 11.8 9.1 7.5 8.0 6.5 8.4 10.4 8.0 8.4 6.7 4.6 8.4 8.0 Table A-9 MICHIGAN LABOR FORCE STATISTICS BY AGE, RACE AND SEX - 1999 AND 2007 Unemployment Rate (%) Category 1999 2007 Change Labor Force Participation Rate (%) 1999 2007 33 Age 16 - 24 years 25 - 44 years 45 - 64 years Over 65 years 9.1 2.9 2.0 2.3 14.0 7.0 4.7 3.5 4.8 pts 4.0 2.8 1.2 71.9 85.0 72.9 12.0 61.6 81.6 70.8 14.1 Race White Black Other 3.4 6.7 3.8 6.1 14.5 5.9 2.7 7.7 2.0 68.9 65.7 71.4 65.0 57.0 69.6 3.7 3.9 3.8 7.0 7.2 7.1 3.3 3.2 3.3 76.3 61.2 68.5 69.4 59.2 64.2 Change -10.2 pts -3.4 -2.1 2.2 Level of Employment (000s) 1999 2007 Change 867 2,445 1,500 129 662 2,043 1,795 167 -205 -402 295 38 -3.8 -8.7 -1.8 4,235 583 124 3,956 504 207 -279 -79 83 -6.9 -1.9 -4.4 2,690 2,252 4,942 2,449 2,218 4,667 -241 -34 -275 Sex Male Female All Groups Source: Bureau of Labor Statistics, U.S. Department of Labor. Table A-10 U.S. AND MICHIGAN EMPLOYMENT, EMPLOYMENT SHARES, AND LOCATION QUOTIENT FOR 2006 Industry U.S. Employment Agriculture, forestry, fishing and hunting % 1,160,881 1.03% Mining 616,532 Utilities 546,593 Construction Manufacturing Transportation equipment Michigan Employment % Location Quotient 24,533 0.68% 0.66 0.55% 6,482 0.18% 0.33 0.48% 20,556 0.57% 1.17 7,601,481 6.74% 175,327 4.85% 0.72 14,113,387 12.52% 649,549 17.97% 1.44 1,756,328 1.56% 219,737 6.08% 3.90 Motor vehicle manufacturing 240,406 0.21% 59,005 1.63% 7.66 Motor vehicle parts manufacturing 648,485 0.58% 146,071 4.04% 7.03 Wholesale trade 5,884,525 5.22% 168,881 4.67% 0.90 15,367,132 13.63% 493,493 13.66% 1.00 Transportation and warehousing 4,205,427 3.73% 102,929 2.85% 0.76 Information 3,040,708 2.70% 65,221 1.80% 0.67 Finance and insurance 6,007,002 5.33% 155,571 4.30% 0.81 Retail trade Real estate and rental and leasing 2,153,739 1.91% 54,626 1.51% 0.79 Professional and technical services 7,389,517 6.56% 242,734 6.72% 1.02 Management of companies and enterprises 1,785,155 1.58% 62,063 1.72% 1.08 Administrative and waste services 8,293,605 7.36% 276,664 7.66% 1.04 Educational services 2,206,905 1.96% 59,050 1.63% 0.83 Health care and social assistance 14,702,844 13.04% 504,089 13.95% 1.07 Arts, entertainment, & recreation 1,901,683 1.69% 60,454 1.67% 0.99 Accommodation & food services 11,122,634 9.87% 342,455 9.48% 0.96 4,363,751 3.87% 130,865 3.62% 0.94 255,812 0.23% 18,252 0.51% 2.23 112,719,311 100.00% 3,613,794 100.00% 1.00 Other services, except public administration Unclassified Total All Industries Source: Quarterly Census of Employment and Wages, U.S. Department of Labor 34 Table A-11 NEW INCORPORATIONS IN MICHIGAN Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Profit 8,378 8,270 9,202 9,709 9,342 9,996 11,545 13,273 14,538 18,654 Nonprofit 1,782 1,993 2,134 1,878 2,106 2,138 2,080 2,082 2,148 2,217 Foreign (Out-of-State) 1,054 1,082 1,175 1,093 1,009 926 972 956 1,039 1,062 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 16,931 17,139 17,201 18,463 19,474 21,864 22,914 23,869 22,633 22,248 21,985 21,840 23,380 24,488 25,046 25,752 26,263 25,560 22,768 22,359 22,899 21,323 20,964 20,780 20,572 20,178 18,362 17,003 2,503 2,288 2,294 2,613 2,574 2,490 2,559 2,467 2,695 2,881 2,871 2,863 3,111 3,102 3,249 3,241 3,357 3,400 3,532 3,439 3,869 3,730 4,018 4,023 4,445 4,742 4,565 4,302 1,077 1,277 1,300 1,540 1,625 1,719 1,864 1,998 1,937 1,828 1,714 1,626 1,778 1,881 2,182 2,351 2,407 2,653 2,680 2,703 2,727 2,408 2,237 2,216 2,353 2,298 2,317 2,324 Source: Michigan Department of Labor and Economic Growth, Corporation Division. 35 Total 11,214 11,345 12,511 12,680 12,457 13,060 14,597 16,311 17,725 21,933 20,511 20,704 20,795 22,616 23,673 26,073 27,337 28,334 27,265 26,957 26,570 26,329 28,269 29,471 30,477 31,344 32,027 31,613 28,980 28,501 29,495 27,461 27,219 27,019 27,370 27,218 25,244 23,629 Table A-12 U.S. AND MICHIGAN MANUFACTURING INDUSTRIES AVERAGE WEEKLY AND HOURLY EARNINGS Michigan Year Average Weekly Earnings Average Hourly Earnings 2001 2002 2003 2004 2005 2006 2007 $814.96 875.78 892.52 912.02 896.55 921.65 937.98 $19.45 20.51 21.20 21.51 21.50 21.84 22.07 United States Real Weekly Earnings (2006 $) $935.19 979.70 978.73 984.47 940.39 938.19 937.98 Average Weekly Earnings Average Hourly Earnings $595.19 618.75 635.99 658.49 673.33 691.02 711.36 $14.76 15.29 15.74 16.14 16.56 16.81 17.26 Source: Bureau of Labor Statistics, U.S. Dept. of Labor Note: Real Weekly Earnings calculated using U.S. CPI-U and Detroit CPI for Michigan. 36 Real Weekly Earnings (2006 $) $696.83 713.13 716.67 722.78 714.85 710.70 711.36 Table A-13 MICHIGAN PERSONAL INCOME, BY MAJOR SOURCE (Amounts in millions of dollars) Source 37 Total Wage and Salary Disbursements Supplements to wages and salaries Proprietors' Income Farm Nonfarm Total Earnings by Place of Work Less: Contributions for Social Insurance Plus: Adjustment for Residence Equals: Net Earnings by Place of Residence Plus: Dividends, Interest and Rent Plus: Transfer Payments TOTAL PERSONAL INCOME TOTAL REAL PERSONAL INCOME (in 2007 dollars) Note: Some numbers may not add due to rounding. Source: Bureau of Economic Analysis, U.S. Department of Commerce Bureau of Labor Statistics. 1970 $25,165 3,508 2,701 239 2,462 31,374 2,193 112 29,293 4,837 3,216 $37,346 $189,216 1980 $57,828 13,177 4,848 330 4,519 75,853 7,181 355 69,026 12,625 13,809 $95,460 $223,965 1990 $102,779 22,152 10,375 371 10,003 135,305 15,869 457 119,893 32,537 23,758 $176,189 $274,187 1995 $132,883 32,865 12,716 255 12,461 178,464 21,386 734 157,812 38,018 31,635 $227,466 $306,343 2000 $175,327 37,854 18,000 -60 18,060 231,181 26,411 1,005 205,775 49,515 38,938 $294,227 $346,780 2005 $183,651 46,104 27,469 353 27,116 257,224 28,968 1,310 229,566 48,846 52,062 $330,474 $346,632 2007 $189,019 47,035 28,190 755 27,435 264,244 30,175 1,532 235,601 58,157 59,619 $353,376 $353,376 Table A-14 38 MICHIGAN PERSONAL INCOME, BY INDUSTRY (Amounts in millions of dollars) Source 2002 2003 2004 Farm Earnings $413 $556 $960 Nonfarm Earnings 238,109 246,581 249,227 Private Earnings 205,899 213,042 213,939 298 314 320 Forestry, Fishing and Other Mining 638 739 789 Construction 13,642 13,279 13,834 Manufacturing 56,932 62,575 56,274 Nondurable Goods 9,704 10,754 11,265 Durable Goods 47,228 51,821 45,009 Transportation and Utilities 9,080 9,426 10,008 Wholesale Trade 11,366 11,720 12,065 Retail Trade 15,463 15,529 15,672 Finance, Insurance and Real Estate 17,628 17,277 18,346 Health Care Services 21,240 22,223 23,513 Prof., Tech. & Information Services 28,576 28,088 29,024 Other Services 31,036 31,871 34,093 Government and Gov. Enterprise 32,210 33,538 35,289 Federal Civilian 4,017 4,171 4,491 Military 579 800 848 State and Local 27,614 28,567 29,949 Total Earnings by Place of Work 238,522 247,136 250,188 Less: Contributions for Social Insurance 26,764 27,557 28,176 Plus: Adjustment for Residence 1,086 1,136 1,239 Equals: Net Earnings by Place of Residence 212,844 220,716 223,251 Plus: Dividends, Interest and Rent 45,766 45,494 46,511 Plus: Transfer Payments 44,855 47,293 48,974 TOTAL PERSONAL INCOME $303,465 $313,503 $318,736 Note: Some numbers may not add due to rounding. Source: Bureau of Economic Analysis, U.S. Department of Commerce 2005 $860 256,364 218,806 328 836 14,322 55,839 11,580 44,260 10,252 12,536 15,657 19,087 24,770 29,957 35,222 37,558 4,606 907 32,045 257,224 28,968 1,310 229,566 48,846 52,062 $330,474 2006 $830 258,435 219,833 322 980 13,816 54,812 11,436 43,376 10,358 12,879 15,643 19,188 25,981 30,533 35,322 38,603 4,772 880 32,951 259,265 29,495 1,442 231,211 53,954 56,171 $341,337 2007 $1,290 262,954 223,770 343 1,081 12,899 55,157 11,681 43,476 10,889 13,333 15,750 18,970 27,490 31,966 35,894 39,183 4,897 861 33,424 264,244 30,175 1,532 235,601 58,157 59,619 $353,376 Table A-15 U. S. AND MICHIGAN PERSONAL AND PER-PERSON INCOME Year Personal Income United States Percent Change Per Person Annual Rate Income Percent Change Annual Personal Income Michigan Percent Change Per Person Annual Rate Income Percent Change Annual Rate Michigan Per Person Income Percent of U.S. 39 1970 1975 $832,429,000 1,329,892,000 9.8 $4,085 6,172 8.6 $37,346,103 57,434,514 9.0 $4,198 6,306 8.5 102.8 102.2 1980 1985 2,298,255,000 3,511,344,000 11.6 8.8 10,114 14,758 10.4 7.9 95,459,628 134,082,561 10.7 7.0 10,314 14,773 10.3 7.5 102.0 100.1 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 4,861,936,000 5,032,196,000 5,349,384,000 5,548,121,000 5,833,906,000 6,144,741,000 6,512,485,000 6,907,332,000 7,415,709,000 7,796,137,000 6.7 3.5 6.3 3.7 5.2 5.3 6.0 6.1 7.4 5.1 19,477 19,892 20,854 21,346 22,172 23,076 24,175 25,334 26,883 27,939 5.7 2.1 4.8 2.4 3.9 4.1 4.8 4.8 6.1 3.9 176,188,551 181,654,702 192,788,275 201,574,154 217,812,189 227,465,905 237,193,029 248,821,337 265,097,783 278,061,682 5.6 3.1 6.1 4.6 8.1 4.4 4.3 4.9 6.5 4.9 18,922 19,324 20,338 21,129 22,694 23,508 24,306 25,367 26,919 28,095 5.1 2.1 5.2 3.9 7.4 3.6 3.4 4.4 6.1 4.4 97.2 97.1 97.5 99.0 102.4 101.9 100.5 100.1 100.1 100.6 2000 2001 2002 2003 2004 2005 2006 2007 8,422,074,000 8,716,992,000 8,872,871,000 9,150,320,000 9,711,363,000 10,284,356,000 10,968,393,000 11,645,882,098 8.0 3.5 1.8 3.1 6.1 5.9 6.7 6.2 29,845 30,574 30,821 31,504 33,123 34,757 36,714 38,611 6.8 2.4 0.8 2.2 5.1 4.9 5.6 5.2 294,226,742 299,542,431 303,465,006 313,503,162 318,735,899 330,474,001 341,336,546 353,376,430 5.8 1.8 1.3 3.3 1.7 3.7 3.3 3.5 29,554 29,933 30,214 31,116 31,550 32,694 33,788 35,086 5.2 1.3 0.9 3.0 1.4 3.6 3.3 3.8 99.0 97.9 98.0 98.8 95.3 94.1 92.0 90.9 Source: Bureau of Economic Analysis, U.S. Department of Commerce Table A-16 U. S. AND MICHIGAN REAL PERSONAL AND PER-PERSON INCOME (in 2007 dollars) United States Percent Change Annual Rate Michigan 40 2.9 Real Per Person Income $21,830 23,787 $5,783,067,818 $6,766,255,461 2.4 3.2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 $7,712,957,415 $7,660,687,100 $7,905,573,609 $7,960,958,508 $8,162,036,018 $8,359,992,706 $8,606,192,893 $8,923,240,072 $9,433,054,819 $9,702,680,899 2000 2001 2002 2003 2004 2005 2006 2007 $10,140,822,691 $10,205,525,439 $10,226,341,406 $10,311,117,660 $10,659,467,587 $10,918,478,964 $11,280,796,336 $11,645,882,098 Year 1970 1975 Real Personal Income $4,448,389,013 $5,125,324,667 1980 1985 Percent Change Annual Rate Percent Change Annual Rate 2.4 Real Per Person Income $21,269 23,414 223,965,298 251,252,892 1.0 2.3 24,198 27,683 0.7 2.7 1.7 -2.0 1.8 -0.6 1.3 1.2 1.8 2.4 4.5 1.7 274,186,925 273,135,792 283,903,787 288,974,455 302,712,053 306,342,692 311,273,467 318,594,788 332,000,965 339,525,359 1.8 -0.4 3.9 1.8 4.8 1.2 1.6 2.4 4.2 2.3 29,447 29,056 29,950 30,290 31,540 31,660 31,897 32,480 33,713 34,305 1.2 -1.3 3.1 1.1 4.1 0.4 0.8 1.8 3.8 1.8 3.3 -0.4 -0.8 -0.1 2.4 1.5 2.3 2.3 346,780,351 343,733,527 339,475,395 343,786,709 344,057,695 346,632,240 347,463,589 353,376,430 2.1 -0.9 -1.2 1.3 0.1 0.7 0.2 1.7 34,833 34,349 33,799 34,122 34,056 34,293 34,394 35,086 1.5 -1.4 -1.6 1.0 -0.2 0.7 0.3 2.0 1.7 Real Personal Income $189,216,158 213,252,539 25,450 28,438 1.4 2.2 2.7 -0.7 3.2 0.7 2.5 2.4 2.9 3.7 5.7 2.9 30,898 30,282 30,819 30,629 31,020 31,395 31,947 32,728 34,196 34,771 4.5 0.6 0.2 0.8 3.4 2.4 3.3 3.2 35,936 35,795 35,522 35,501 36,357 36,900 37,760 38,611 Source: Bureau of Economic Analysis, U.S. Department of Commerce Bureau of Labor Statistics, U.S. Department of Labor. U.S. income deflated by U.S. CPI. Michigan income deflated by Detroit CPI. Percent Change Annual Rate 1.9 Table A-17 COUNTY AND METRO AREA PER-PERSON INCOME Area 1970 $4,085 1980 $10,114 1990 $19,477 1995 $23,076 2000 $29,845 2005 $34,757 Michigan Michigan (Metropolitan Portion) Ann Arbor MSA Battle Creek MSA Bay City MSA Detroit-Warren-Livonia MSA Flint MSA Grand Rapids-Wyoming MSA Holland-Grand Haven MSA Jackson MSA Kalamazoo-Portage MSA Lansing-East Lansing MSA Monroe MSA Muskegon-Norton Shores MSA Niles-Benton Harbor MSA Saginaw-Saginaw Township MSA Detroit-Warren-Flint CSA 4,198 4,352 4,668 4,041 3,578 4,626 3,992 3,886 3,805 4,080 3,970 3,922 3,730 3,687 4,070 3,801 4,553 10,314 10,750 12,040 9,415 9,502 11,420 10,586 9,649 9,417 9,532 9,587 9,766 9,515 8,864 8,939 9,934 11,330 18,922 19,781 23,002 16,865 16,817 21,338 17,481 18,137 18,944 16,104 18,091 17,626 17,314 15,013 16,339 16,465 20,999 23,508 24,584 28442 21046 20874 26201 24056 22418 23415 20237 22328 22273 23060 18168 20845 20618 26,069 29,554 31,079 35,588 25,137 25,947 34,045 26,429 28,022 27,879 24,983 26,409 26,912 29,221 23,123 26,070 25,595 33,386 32,694 34,314 39,689 28,289 27,984 37,515 27,550 31,836 30,743 27,299 30,411 30,330 30,873 25,692 29,242 27,256 36,649 Alcona Alger Allegan Alpena Antrim Arenac Baraga Barry Bay Benzie Berrien Branch Calhoun 2,907 2,622 3,496 3,267 3,159 3,250 3,168 3,322 3,578 3,383 4,070 3,185 4,041 7,140 6,189 8,619 8,283 8,320 7,817 7,233 9,105 9,502 7,722 8,939 8,629 9,415 13,614 12,278 16,014 15,162 14,735 13,876 12,312 15,831 16,817 14,483 16,339 14,412 16,865 17,112 15,267 20,422 18,625 19,485 16,433 15,685 21,781 20,874 18,780 20,845 16,638 21,046 20,195 18,683 26,395 23,333 24,431 20,512 18,915 27,663 25,947 23,647 26,070 20,983 25,137 22,501 22,033 28,259 27,304 27,333 23,346 21,581 29,882 27,984 26,676 29,242 23,502 28,289 United States Rank by 2005 Level 41 Among MSAs 1 9 10 2 11 3 5 12 6 7 4 14 8 13 Among Counties 68 71 28 32 31 62 76 18 29 37 21 59 27 Percent Annual Growth Rate 2000 to 2005 3.1 Rank by Annual Growth Rate 2000 to 2005 2.0 2.0 2.2 2.4 1.5 2.0 0.8 2.6 2.0 1.8 2.9 2.4 1.1 2.1 2.3 1.3 1.9 Among MSAs 6 4 11 9 14 2 8 10 1 3 13 7 5 12 Among Counties 59 17 76 23 55 41 40 70 71 45 49 51 46 2.2 3.4 1.4 3.2 2.3 2.6 2.7 1.6 1.5 2.4 2.3 2.3 2.4 Area as Percent of Michigan for 2005 105 121 87 86 115 84 97 94 83 93 93 94 79 89 83 112 69 67 86 84 84 71 66 91 86 82 89 72 87 Table A-17 (Continued) Area 42 Cass Charlevoix Cheboygan Chippewa Clare Clinton Crawford Delta Dickinson Eaton Emmet Genesee Gladwin Gogebic Grand Traverse Gratiot Hillsdale Houghton Huron Ingham Ionia Iosco Iron Isabella Jackson Kalamazoo Kalkaska Kent Keweenaw Lake Lapeer Leelanau Lenawee Livingston Luce 1970 $3,658 3,142 2,990 3,019 2,865 3,576 3,255 3,232 3,544 3,717 3,696 3,992 3,104 3,226 3,886 3,501 3,476 2,808 3,247 4,040 3,101 3,459 2,856 2,916 4,080 4,095 3,342 4,067 2,573 2,909 3,482 3,688 3,881 4,121 2,715 1980 $8,517 8,256 7,597 6,970 6,857 8,976 6,484 7,950 9,554 9,636 9,063 10,586 7,118 7,206 9,158 8,446 8,126 6,928 8,770 9,969 7,885 7,698 8,120 7,633 9,532 10,078 6,712 10,076 6,797 6,081 9,152 8,982 9,485 10,488 8,334 1990 $14,626 15,967 13,696 11,774 12,485 16,339 11,965 14,554 17,464 17,750 18,898 17,481 12,748 13,036 18,115 14,352 14,419 12,864 15,799 17,850 13,217 15,123 13,643 14,038 16,104 19,282 12,456 19,278 14,189 11,279 16,958 17,813 17,025 20,613 15,328 1995 $19,194 20,846 17,634 15,011 15,374 22,516 15,458 18,627 20,264 22,858 22,203 24,056 16,020 16,636 22,151 17,949 18,272 15,837 20,395 22,015 16,183 17,363 16,278 16,347 20,237 23,688 16,273 23,630 16,964 15,316 21,848 22,514 20,768 27,403 19,834 2000 $24,734 26,069 21,467 18,618 19,083 28,657 19,683 23,121 25,256 26,980 27,458 26,429 19,932 20,033 28,911 20,048 22,737 19,435 24,811 26,481 20,940 19,900 20,344 20,536 24,983 27,809 18,349 29,390 20,900 18,596 28,087 27,978 25,996 35,801 17,184 2005 $28,322 31,486 24,765 21,632 22,497 30,685 21,204 26,799 29,869 29,257 33,896 27,550 22,366 23,731 32,089 23,794 25,208 22,976 28,886 30,656 23,442 22,792 25,458 24,978 27,299 32,089 20,512 33,627 25,740 21,041 28,686 36,502 29,116 36,140 19,115 Rank by 2005 Level 26 11 52 75 69 15 78 36 19 20 7 30 70 56 9 55 47 65 23 16 60 67 45 49 33 9 81 8 43 80 24 4 22 5 83 Percent Annual Growth Rate 2000 to 2005 2.7 3.8 2.9 3.0 3.3 1.4 1.5 3.0 3.4 1.6 4.3 0.8 2.3 3.4 2.1 3.5 2.1 3.4 3.1 3.0 2.3 2.8 4.6 4.0 1.8 2.9 2.3 2.7 4.3 2.5 0.4 5.5 2.3 0.2 2.2 Rank by Annual Growth Rate 2000 to 2005 37 9 34 29 18 75 72 30 15 69 5 81 47 14 64 13 66 16 27 31 53 36 3 8 68 33 56 38 6 43 82 1 52 83 60 Area as Percent of Michigan for 2005 87 96 76 66 69 94 65 82 91 89 104 84 68 73 98 73 77 70 88 94 72 70 78 76 83 98 63 103 79 64 88 112 89 111 58 Table A-17 (Continued) Area 43 Mackinac Macomb Manistee Marquette Mason Mecosta Menominee Midland Missaukee Monroe Montcalm Montmorency Muskegon Newaygo Oakland Oceana Ogemaw Ontonagon Osceola Oscoda Otsego Ottawa Presque Isle Roscommon Saginaw St. Clair St. Joseph Sanilac Schoolcraft Shiawassee Tuscola Van Buren Washtenaw Wayne Wexford 1970 $2,873 4,386 3,227 3,272 3,324 2,520 2,925 4,367 2,725 3,730 3,411 2,653 3,687 3,289 5,500 3,285 2,808 3,108 2,967 2,509 3,334 3,805 2,739 3,271 3,801 3,879 3,855 3,615 2,929 3,668 3,328 3,526 4,668 4,452 3,003 1980 $7,343 11,086 8,009 8,288 7,845 6,314 7,708 10,723 6,532 9,515 8,437 6,966 8,864 7,561 14,114 7,748 6,470 7,560 6,552 6,577 8,181 9,417 7,751 7,528 9,934 9,426 8,650 8,552 7,431 9,257 8,781 8,030 12,040 10,578 7,140 1990 $14,958 21,245 14,378 14,951 14,647 11,674 14,748 21,894 12,527 17,314 12,848 11,776 15,013 13,518 27,710 13,662 11,636 13,906 12,203 10,474 15,688 18,944 13,422 13,981 16,465 17,465 15,143 14,816 13,707 15,408 14,578 14,298 23,002 18,550 13,825 1995 $20,178 25,016 16,921 18,214 18,336 16,198 18,444 26,447 15,445 23,060 15,893 14,898 18,168 16,979 35,578 16,764 14,431 18,375 16,026 13,523 18,658 23,415 15,994 16,714 20,618 21,592 19,686 19,025 17,312 19,690 18,762 18,078 28,442 21,927 17,579 Source: Bureau of Economic Analysis, U.S. Dept. of Commerce Note: County and Metro Area data are from April 26, 2007 release, U.S. and Michigan data are from March 26, 2008 release. 2000 $24,560 32,941 21,880 22,314 22,677 18,546 21,944 31,581 19,296 29,221 18,949 18,140 23,123 21,121 47,072 19,231 18,034 20,887 19,445 15,552 24,364 27,879 20,104 19,764 25,595 27,831 23,096 23,348 20,337 23,143 21,475 22,030 35,588 27,515 22,166 2005 $28,619 34,761 24,853 26,506 26,396 21,658 25,094 37,099 21,545 30,873 21,868 21,153 25,692 23,644 52,274 23,404 21,768 26,013 23,093 19,960 27,047 30,743 23,547 23,141 27,256 29,922 26,078 26,189 23,837 24,916 22,932 25,290 39,689 30,855 24,593 Rank by 2005 Level 25 6 51 38 39 74 48 3 77 12 72 79 44 57 1 61 73 42 64 82 35 14 58 63 34 17 41 40 54 50 66 46 2 13 53 Percent Annual Growth Rate 2000 to 2005 3.1 1.1 2.6 3.5 3.1 3.2 2.7 3.3 2.2 1.1 2.9 3.1 2.1 2.3 2.1 4.0 3.8 4.5 3.5 5.1 2.1 2.0 3.2 3.2 1.3 1.5 2.5 2.3 3.2 1.5 1.3 2.8 2.2 2.3 2.1 Rank by Annual Growth Rate 2000 to 2005 26 80 42 11 28 24 39 19 57 79 32 25 61 54 62 7 10 4 12 2 63 67 21 22 78 74 44 48 20 73 77 35 58 50 65 Area as Percent of Michigan for 2005 88 106 76 81 81 66 77 113 66 94 67 65 79 72 160 72 67 80 71 61 83 94 72 71 83 92 80 80 73 76 70 77 121 94 75 Table A-18 MICHIGAN GROSS STATE PRODUCT BY SECTOR - MILLIONS OF DOLLARS Component Agriculture Mining Utilities 2000 2001 2002 2003 2004 2005 2006 $1,587 $1,554 $1,606 $1,796 $2,364 $2,131 $2,123 690 700 651 737 834 1,195 1,585 6,438 7,445 6,829 7,464 7,791 8,257 8,754 Construction 15,568 15,551 15,462 14,977 15,974 17,019 15,958 Manufacturing Durable goods Motor vehicle Furniture Other durable goods 76,330 62,663 35,771 3,263 23,629 68,607 55,709 31,498 2,619 21,592 75,839 60,925 36,969 2,571 21,385 77,160 61,790 37,939 2,825 21,027 70,288 55,361 29,567 3,912 21,883 66,758 52,318 25,375 3,798 23,143 68,355 53,768 N/A N/A N/A Nondurable goods 13,667 12,899 14,914 15,369 14,927 14,439 14,587 42,737 43,472 44,121 45,510 46,607 48,466 49,322 Transportation 8,347 7,847 8,376 8,693 8,945 9,137 9,102 Information 8,652 9,130 9,192 9,418 10,065 10,626 10,837 70,477 Wholesale + retail trade Finance, insurance, real estate 56,066 58,640 61,987 63,264 65,274 67,353 Prof., tech, mgmt of enterpr. 37,143 34,658 34,270 34,187 36,135 37,226 37,336 Admin. & waste services 10,571 10,443 10,931 11,832 12,259 13,135 13,173 Education services 1,548 1,627 1,783 2,005 2,182 2,371 2,470 20,814 22,182 23,730 25,228 26,435 28,220 29,649 Arts, entertainment, & recr. 2,593 2,819 3,102 3,138 3,177 3,214 3,350 Accomodation & food serv. 7,124 7,167 7,503 7,795 8,157 8,307 8,603 Other serv. 7,364 7,822 8,001 8,265 8,519 8,643 8,780 Government 33,664 34,754 36,452 37,563 38,375 40,091 41,127 Health services Federal gov. 4,223 4,178 4,596 5,095 5,345 5,489 N/A 29,441 30,576 31,857 32,468 33,029 34,602 N/A $337,235 $334,419 $349,837 $359,031 $363,380 $372,148 $381,003 Agriculture 0.5% 0.5% 0.5% 0.5% 0.7% 0.6% 0.6% Mining 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.4% Utilities 1.9% 2.2% 2.0% 2.1% 2.1% 2.2% 2.3% Construction 4.6% 4.7% 4.4% 4.2% 4.4% 4.6% 4.2% State & local gov. Total Gross State Product Manufacturing 22.6% 20.5% 21.7% 21.5% 19.3% 17.9% 17.9% Wholesale + retail trade 12.7% 13.0% 12.6% 12.7% 12.8% 13.0% 12.9% 2.5% 2.3% 2.4% 2.4% 2.5% 2.5% 2.4% Transportation Information 2.6% 2.7% 2.6% 2.6% 2.8% 2.9% 2.8% Finance, insurance, real estate 16.6% 17.5% 17.7% 17.6% 18.0% 18.1% 18.5% Prof., tech, mgmt of enterpr. 9.8% 11.0% 10.4% 9.8% 9.5% 9.9% 10.0% Admin. & waste services 3.1% 3.1% 3.1% 3.3% 3.4% 3.5% 3.5% Education services 0.5% 0.5% 0.5% 0.6% 0.6% 0.6% 0.6% Health services 6.2% 6.6% 6.8% 7.0% 7.3% 7.6% 7.8% Arts, entertainment, & recr. 0.8% 0.8% 0.9% 0.9% 0.9% 0.9% 0.9% Accomodation & food serv. 2.1% 2.1% 2.1% 2.2% 2.2% 2.2% 2.3% Other Serv. 2.2% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% Government 10.0% 10.4% 10.4% 10.5% 10.6% 10.8% 10.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: Bureau of Economic Analysis, U.S. Department of Commerce 44 Table A-19 U. S. AND DETROIT CONSUMERS PRICE INDICES AND INFLATION RATES - CALENDAR YEAR (1982-1984=100) Calendar Year 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 United States Percent Index Change 27.2 1.5 28.1 3.3 28.9 2.8 29.1 0.7 29.6 1.7 29.9 1.0 30.2 1.0 30.6 1.3 31.0 1.3 31.5 1.6 32.4 2.9 33.4 3.1 34.8 4.2 36.7 5.5 38.8 5.7 40.5 4.4 41.8 3.2 44.4 6.2 49.3 11.0 53.8 9.1 56.9 5.8 60.6 6.5 65.2 7.6 72.6 11.3 82.4 13.5 90.9 10.3 96.5 6.2 99.6 3.2 103.9 4.3 107.6 3.6 109.6 1.9 113.6 3.6 118.3 4.1 124.0 4.8 130.7 5.4 136.2 4.2 140.3 3.0 144.5 3.0 148.2 2.6 152.4 2.8 156.9 3.0 160.5 2.3 163.0 1.6 166.6 2.2 172.2 3.4 177.1 2.8 179.9 1.6 184.0 2.3 188.9 2.7 195.3 3.4 201.6 3.2 207.3 2.8 Source: Bureau of Labor Statistics, U.S. Dept. of Labor 45 Detroit Index 28.2 29.0 29.4 29.4 29.7 29.8 29.9 30.2 30.4 31.2 32.5 33.6 35.1 37.2 39.5 40.9 42.5 45.2 50.1 53.9 56.8 60.7 65.3 73.6 85.3 93.2 97.0 99.8 103.2 106.8 108.3 111.7 116.1 122.3 128.6 133.1 135.9 139.6 144.0 148.6 152.5 156.3 159.8 163.9 169.8 174.4 178.9 182.5 185.4 190.8 196.6 200.1 Percent Change 1.8 2.8 1.4 0.0 1.0 0.3 0.3 1.0 0.7 2.6 4.2 3.4 4.5 6.0 6.2 3.5 3.9 6.4 10.8 7.6 5.4 6.9 7.6 12.7 15.9 9.3 4.1 2.9 3.4 3.5 1.4 3.1 3.9 5.3 5.2 3.5 2.1 2.7 3.2 3.2 2.6 2.5 2.2 2.6 3.6 2.7 2.6 2.0 1.6 2.9 3.0 1.8 Table A-20 U. S. AND DETROIT CONSUMERS PRICE INDICES AND INFLATION RATES - MICHIGAN FISCAL YEAR (1982-1984=100) Fiscal Year 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 United States Percent Index Change 26.9 0.5 27.7 2.9 28.6 3.3 29.0 1.4 29.4 1.5 29.8 1.2 30.1 1.0 30.4 1.2 30.8 1.4 31.2 1.3 31.9 2.2 32.9 3.2 34.0 3.3 35.7 4.9 37.8 5.9 39.7 5.2 41.2 3.6 42.8 4.0 46.6 8.9 51.8 11.1 55.8 7.8 59.7 6.9 63.9 7.0 70.4 10.2 80.0 13.6 88.9 11.1 95.4 7.3 98.8 3.6 102.9 4.1 106.6 3.6 109.3 2.5 112.4 2.8 117.0 4.1 122.6 4.8 128.7 5.0 135.2 5.1 139.3 3.0 143.5 3.0 147.3 2.6 151.4 2.8 155.6 2.8 159.8 2.7 162.4 1.6 165.5 1.9 170.8 3.2 176.3 3.2 178.9 1.5 183.1 2.3 187.4 2.3 193.5 3.3 200.6 3.7 205.3 2.3 Detroit Index 27.8 28.7 29.3 29.3 29.5 29.9 29.8 30.0 30.3 30.7 31.8 33.2 34.2 36.1 38.4 40.3 41.7 43.5 47.5 52.2 55.7 59.7 63.8 71.2 82.3 92.1 95.8 99.4 102.4 105.8 108.1 110.7 114.8 120.8 126.8 132.4 135.2 138.6 142.9 147.5 151.6 155.4 158.9 162.8 168.3 173.8 177.5 182.0 184.4 189.0 195.9 199.0 Source: Bureau of Labor Statistics, U.S. Dept. of Labor Note: Rates based on State of Michigan Fiscal Year. Fiscal years 1956 - 1975 are July through June; fiscal year 1976 is July through September; and fiscal years after 1976 are October through September. 46 Percent Change 0.5 3.1 2.4 -0.1 0.6 1.2 -0.3 0.8 1.1 1.3 3.4 4.3 3.2 5.5 6.5 4.8 3.6 4.3 9.2 9.9 6.8 7.1 6.9 11.6 15.6 11.9 4.0 3.8 3.0 3.3 2.2 2.4 3.7 5.2 5.0 4.4 2.1 2.5 3.1 3.2 2.8 2.5 2.3 2.5 3.4 3.3 2.1 2.5 1.3 2.5 3.7 1.6 Table A-21 U.S. AND DETROIT CONSUMER PRICE INDICES DETAIL (Annual Average) Expenditure category All Items U.S. 1970 Detroit U.S. 1980 Detroit U.S. 1990 Detroit U.S. 1995 Detroit U.S. 2000 Detroit U.S. 2007 Detroit 47 38.8 39.5 82.4 85.3 130.7 128.6 152.4 148.6 172.2 169.8 207.3 200.1 Food and beverages Food Food at home Food away from home 40.1 39.2 39.9 37.5 NA 41.7 41.5 40.8 86.7 86.8 88.4 83.4 88.9 88.9 88.4 89.8 132.1 132.4 132.3 133.4 126.5 126.3 126.8 126.5 148.9 148.4 148.8 149.0 143.6 142.8 142.2 144.4 168.4 167.8 167.9 169.0 163.9 163.3 163.4 164.4 203.3 202.9 201.2 206.7 189.1 188.7 185.7 193.7 Housing Shelter Rent of primary residence Owners' equivalent rent Fuel and utilities Household furnishings and operations 36.4 35.5 46.5 NA 29.1 46.8 NA 38.1 50.5 NA 26.3 NA 81.1 81.0 80.9 NA 75.4 86.3 85.5 88.6 87.8 NA 72.2 87.3 128.5 140.0 138.4 144.8 111.6 113.3 126.4 140.1 136.5 144.2 112.4 104.3 148.5 165.7 157.8 171.3 123.7 123.0 140.6 160.5 148.0 165.6 116.2 110.9 169.6 193.4 183.9 198.7 137.9 128.2 161.7 187.2 172.8 192.1 129.8 120.4 209.6 240.6 234.7 246.2 200.6 126.9 189.8 215.2 204.9 214.5 210.7 117.8 Apparel 59.2 67.9 90.9 94.3 124.1 127.9 132.0 136.9 129.6 127.9 119.0 107.2 Transportation Private Gasoline (all types) Public 37.5 37.5 27.9 35.2 36.9 36.6 NA 83.1 84.2 97.5 69.0 82.8 83.3 96.6 120.5 118.8 101.0 142.6 124.0 123.9 102.0 139.1 136.3 99.8 175.9 143.6 141.9 96.4 153.3 149.1 128.6 209.6 162.5 160.0 135.1 184.7 180.8 238.0 230.0 204.5 203.4 246.7 Medical care 34.0 33.5 74.9 80.1 162.8 159.8 220.5 209.2 260.8 257.4 351.1 350.5 Recreation NA NA NA NA NA NA 94.5 NA 103.3 106.7 111.4 119.4 Education and communication NA NA NA NA NA NA 92.2 NA 102.5 107.9 119.6 127.8 40.9 NA 75.2 75.1 159.0 147.5 206.9 210.8 271.1 275.8 333.3 349.4 Other goods and services Source: Bureau of Labor Statistics, U.S. Dept. of Labor Table A-22 U. S. INTEREST RATES (percent per year - average) Year U.S. Government Security Yields Constant 3-month Maturity 10Year Issues Treasury Bills(1) High Grade Municipal Bonds (Standard & Poor's) Corporate Aaa Bonds (Moody's, Seasoned Issues) 30-year Conventional Fixed Rate Mortgages 1960 1965 2.9 4.0 4.1 4.3 3.7 3.3 4.4 4.5 NA NA 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 6.4 4.4 4.1 7.0 7.9 5.8 5.0 5.3 7.2 10.1 7.4 6.2 6.2 6.9 7.6 8.0 7.6 7.4 8.4 9.4 6.5 5.7 5.3 5.2 6.1 6.9 6.5 5.6 5.9 6.4 8.0 7.4 7.2 7.4 8.6 8.8 8.4 8.0 8.7 9.6 NA NA 7.4 8.0 9.2 9.0 8.9 8.8 9.6 11.2 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 11.5 14.0 10.7 8.6 9.5 7.5 6.0 5.8 6.7 8.1 11.4 13.9 13.0 11.1 12.5 10.6 7.7 8.4 8.9 8.5 8.5 11.2 11.6 9.5 10.2 9.2 7.4 7.7 7.8 7.2 11.9 14.2 13.8 12.0 12.7 11.4 9.0 9.4 9.7 9.3 13.8 16.6 16.1 13.2 13.9 12.4 10.2 10.2 10.3 10.3 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 7.5 5.4 3.5 3.0 4.3 5.5 5.0 5.1 4.8 4.6 8.6 7.9 7.0 5.9 7.1 6.6 6.4 6.4 5.3 5.7 7.3 6.9 6.4 5.6 6.2 6.0 5.8 5.6 5.1 5.4 9.3 8.8 8.1 7.2 8.0 7.6 7.4 7.3 6.5 7.1 10.1 9.3 8.4 7.3 8.4 8.0 7.8 7.6 6.9 7.4 2000 2001 2002 2003 2004 2005 2006 2007 5.8 3.4 1.6 1.0 1.4 3.2 4.7 4.4 6.0 5.0 4.6 4.0 4.3 4.3 4.8 4.6 5.8 5.2 5.1 4.7 4.6 4.3 4.4 4.4 7.6 7.1 6.5 5.7 5.6 5.2 5.6 5.6 8.1 7.0 6.5 5.8 5.8 5.9 6.4 6.3 (1) Secondary market, bank discount basis Source: Federal Reserve Board and U.S. Government Printing Office 48 Table A-23 U.S. AND MICHIGAN RESIDENT POPULATION Year Michigan Population Population Change Number Percent Natural Increase Net Migration U.S. Population Michigan Percent of U.S. 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 8,881,800 8,974,200 9,028,900 9,078,000 9,117,500 9,117,700 9,129,200 9,171,100 9,217,800 9,266,300 92,400 54,700 49,100 39,500 200 11,500 41,900 46,700 48,500 1.0 0.6 0.5 0.4 0.0 0.1 0.5 0.5 0.5 113,900 76,200 65,300 62,200 60,300 57,500 59,900 64,200 67,500 -21,800 -21,200 -16,300 -22,200 -60,300 -46,500 -17,900 -17,200 -19,500 203,302,000 207,660,700 209,896,000 211,908,800 213,853,900 215,973,200 218,035,200 220,239,400 222,584,500 225,055,500 4.4 4.3 4.3 4.3 4.3 4.2 4.2 4.2 4.1 4.1 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 9,262,100 9,209,300 9,115,200 9,047,800 9,049,500 9,076,300 9,127,800 9,187,500 9,218,000 9,253,300 -4,200 -52,800 -94,100 -67,400 1,700 26,800 51,500 59,700 30,500 35,300 0.0 -0.6 -1.0 -0.7 0.0 0.3 0.6 0.7 0.3 0.4 53,100 84,200 64,300 60,100 56,100 59,700 58,800 59,300 59,000 63,500 -57,100 -137,000 -158,400 -127,600 -54,400 -32,900 -7,300 400 -28,500 -28,200 226,545,800 229,465,700 231,664,500 233,792,000 235,824,900 237,923,800 240,132,900 242,288,900 244,499,000 246,819,200 4.1 4.0 3.9 3.9 3.8 3.8 3.8 3.8 3.8 3.7 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 9,295,300 9,395,000 9,470,300 9,529,200 9,584,500 9,659,900 9,739,200 9,785,500 9,820,200 9,863,800 42,000 99,700 75,300 58,900 55,300 75,400 79,300 46,300 34,700 43,600 0.5 1.1 0.8 0.6 0.6 0.8 0.8 0.5 0.4 0.4 53,100 93,000 67,100 61,100 54,300 53,500 49,600 50,100 47,700 48,000 -11,100 -17,400 -17,300 -27,600 -24,500 100 5,600 -3,300 -12,000 -3,400 248,709,900 252,153,100 255,029,700 257,782,600 260,327,000 262,803,300 265,228,600 267,783,600 270,248,000 272,690,800 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.6 3.6 2000 2001 2002 2003 2004 2005 2006 2007 9,938,400 10,007,000 10,043,700 10,075,200 10,102,700 10,107,900 10,102,300 10,071,800 74,600 68,600 36,700 31,500 27,500 5,200 -5,600 -30,500 0.8 0.7 0.4 0.3 0.3 0.1 -0.1 -0.3 N/A 61,600 44,100 43,300 44,800 40,900 41,900 42,700 N/A 2,500 -10,500 -11,700 -20,300 -37,500 -52,300 -74,300 281,421,900 285,112,000 287,888,000 290,447,600 293,191,500 295,895,900 298,754,800 301,621,200 3.5 3.5 3.5 3.5 3.4 3.4 3.4 3.3 Note: Subnational population estimates result in an uncategorized residual so that the sum of natural increase and net migration does not equal the annual change in population. The residual and the movement of federal employees and their dependents are not shown in the table. Sources: U.S. Census Bureau and Michigan Information Center 49 Table A-24 MICHIGAN POPULATION BY COUNTY County/Region United States Michigan 50 Alcona Alger Allegan Alpena Antrim Arenac Baraga Barry Bay Benzie Berrien Branch Calhoun Cass Charlevoix Cheboygan Chippewa Clare Clinton Crawford Delta Dickinson Eaton Emmet Genesee Gladwin Gogebic Grand Traverse Gratiot Hillsdale Population April 1, 2000 Population July 1, 2007 Population Change, 2000-07 Number Percent Births Natural Increase, 2000-07 Deaths Number Percent Net Migration, 2000-07 Number Percent 281,424,602 301,621,157 20,196,555 7.2 29,809,472 17,597,188 12,212,284 4.3 7,984,271 2.8 9,938,482 10,071,822 133,340 1.3 948,153 628,764 319,389 3.2 -204,072 -2.1 11,719 9,862 105,665 31,314 23,110 17,269 8,746 56,755 110,157 15,998 162,455 45,787 137,985 51,102 26,090 26,448 38,543 31,252 64,753 14,273 38,520 27,472 103,655 31,437 436,148 26,023 17,370 77,654 42,285 46,527 11,538 9,612 112,761 29,707 24,299 16,608 8,544 59,188 107,517 17,510 159,589 46,194 136,615 50,551 26,181 26,768 38,922 30,697 69,755 14,550 37,367 26,937 107,390 33,393 434,715 26,287 16,287 85,479 42,141 46,781 -181 -250 7,096 -1,607 1,189 -661 -202 2,433 -2,640 1,512 -2,866 407 -1,370 -551 91 320 379 -555 5,002 277 -1,153 -535 3,735 1,956 -1,433 264 -1,083 7,825 -144 254 -1.5 -2.5 6.7 -5.1 5.1 -3.8 -2.3 4.3 -2.4 9.5 -1.8 0.9 -1.0 -1.1 0.3 1.2 1.0 -1.8 7.7 1.9 -3.0 -1.9 3.6 6.2 -0.3 1.0 -6.2 10.1 -0.3 0.5 525 590 10,823 2,164 1,771 1,252 705 5,192 9,261 1,451 15,253 4,386 13,690 3,803 2,137 2,014 2,863 2,480 5,979 983 3,025 2,033 8,995 2,680 45,202 2,012 951 7,138 3,593 4,322 1,232 794 6,093 2,523 1,732 1,409 775 3,490 7,988 1,222 11,646 3,008 10,322 3,417 1,729 2,078 2,222 2,737 3,409 1,139 2,973 2,387 5,925 2,115 28,737 2,189 1,806 4,790 3,144 3,179 -707 -204 4,730 -359 39 -157 -70 1,702 1,273 229 3,607 1,378 3,368 386 408 -64 641 -257 2,570 -156 52 -354 3,070 565 16,465 -177 -855 2,348 449 1,143 -6.0 -2.1 4.5 -1.1 0.2 -0.9 -0.8 3.0 1.2 1.4 2.2 3.0 2.4 0.8 1.6 -0.2 1.7 -0.8 4.0 -1.1 0.1 -1.3 3.0 1.8 3.8 -0.7 -4.9 3.0 1.1 2.5 573 10 2,821 -1,110 1,242 -441 47 973 -3,464 1,336 -5,850 -736 -4,145 -653 -200 487 -55 -124 2,688 494 -1,052 -65 1,106 1,551 -15,963 552 -259 5,814 -255 -688 4.9 0.1 2.7 -3.5 5.4 -2.6 0.5 1.7 -3.1 8.4 -3.6 -1.6 -3.0 -1.3 -0.8 1.8 -0.1 -0.4 4.2 3.5 -2.7 -0.2 1.1 4.9 -3.7 2.1 -1.5 7.5 -0.6 -1.5 Table A-24 (continued) County/Region 51 Houghton Huron Ingham Ionia Iosco Iron Isabella Jackson Kalamazoo Kalkaska Kent Keweenaw Lake Lapeer Leelanau Lenawee Livingston Luce Mackinac Macomb Manistee Marquette Mason Mecosta Menominee Midland Missaukee Monroe Montcalm Montmorency Muskegon Newaygo Oakland Oceana Ogemaw Ontonagon Population April 1, 2000 36,016 36,079 279,414 61,518 27,339 13,138 63,351 158,422 238,603 16,571 574,335 2,301 11,333 87,906 21,119 98,947 156,951 7,024 11,943 788,149 24,527 64,634 28,274 40,553 25,326 82,874 14,478 145,945 61,266 10,315 170,200 47,874 1,194,156 26,873 21,645 7,818 Population July 1, 2007 35,201 33,290 279,295 64,053 26,255 12,151 66,693 163,006 245,333 17,188 604,330 2,151 11,153 92,012 21,898 101,243 183,194 6,728 10,877 831,077 24,803 65,216 28,750 42,090 24,249 82,818 14,976 153,608 62,950 10,327 174,386 49,171 1,206,089 27,800 21,338 6,977 Population Change, 2000-07 Number Percent -815 -2,789 -119 2,535 -1,084 -987 3,342 4,584 6,730 617 29,995 -150 -180 4,106 779 2,296 26,243 -296 -1,066 42,928 276 582 476 1,537 -1,077 -56 498 7,663 1,684 12 4,186 1,297 11,933 927 -307 -841 -2.3 -7.7 0.0 4.1 -4.0 -7.5 5.3 2.9 2.8 3.7 5.2 -6.5 -1.6 4.7 3.7 2.3 16.7 -4.2 -8.9 5.4 1.1 0.9 1.7 3.8 -4.3 -0.1 3.4 5.3 2.7 0.1 2.5 2.7 1.0 3.4 -1.4 -10.8 Births 2,869 2,502 26,455 6,137 1,756 687 5,271 15,168 22,721 1,650 67,889 152 828 7,714 1,413 9,027 14,921 457 761 73,782 1,864 4,511 2,329 3,395 1,820 7,111 1,255 12,785 6,172 628 17,259 4,582 110,051 2,839 1,587 355 Natural Increase, 2000-07 Deaths Number 2,794 3,221 13,770 3,314 2,804 1,497 3,093 11,007 13,934 1,114 29,953 161 1,111 4,551 1,316 6,285 7,276 575 982 53,182 2,150 4,620 2,313 2,433 1,974 4,682 1,017 8,691 4,042 1,109 11,495 3,162 65,445 1,699 2,171 791 75 -719 12,685 2,823 -1,048 -810 2,178 4,161 8,787 536 37,936 -9 -283 3,163 97 2,742 7,645 -118 -221 20,600 -286 -109 16 962 -154 2,429 238 4,094 2,130 -481 5,764 1,420 44,606 1,140 -584 -436 Percent 0.2 -2.0 4.5 4.6 -3.8 -6.2 3.4 2.6 3.7 3.2 6.6 -0.4 -2.5 3.6 0.5 2.8 4.9 -1.7 -1.9 2.6 -1.2 -0.2 0.1 2.4 -0.6 2.9 1.6 2.8 3.5 -4.7 3.4 3.0 3.7 4.2 -2.7 -5.6 Net Migration, 2000-07 Number Percent -752 -1,930 -11,820 32 100 -125 1,433 1,108 -936 146 -5,521 -125 129 1,332 764 -18 19,256 -150 -791 21,879 643 986 610 760 -819 -2,130 318 4,205 -114 536 -803 88 -28,153 -80 374 -374 -2.1 -5.3 -4.2 0.1 0.4 -1.0 2.3 0.7 -0.4 0.9 -1.0 -5.4 1.1 1.5 3.6 0.0 12.3 -2.1 -6.6 2.8 2.6 1.5 2.2 1.9 -3.2 -2.6 2.2 2.9 -0.2 5.2 -0.5 0.2 -2.4 -0.3 1.7 -4.8 Table A-24 (continued) County/Region 52 Osceola Oscoda Otsego Ottawa Presque Isle Roscommon Saginaw St. Clair St. Joseph Sanilac Schoolcraft Shiawassee Tuscola Van Buren Washtenaw Wayne Wexford Population April 1, 2000 23,197 9,418 23,301 238,314 14,411 25,469 210,042 164,235 62,422 44,547 8,903 71,687 58,266 76,263 322,770 2,061,162 30,484 Population July 1, 2007 23,148 8,938 24,223 259,206 13,852 25,517 202,268 170,119 62,449 43,640 8,518 71,753 56,805 77,931 350,003 1,985,101 31,792 Population Change, 2000-07 Number Percent -49 -480 922 20,892 -559 48 -7,774 5,884 27 -907 -385 66 -1,461 1,668 27,233 -76,061 1,308 -0.2 -5.1 4.0 8.8 -3.9 0.2 -3.7 3.6 0.0 -2.0 -4.3 0.1 -2.5 2.2 8.4 -3.7 4.3 Births 2,217 642 2,096 26,145 908 1,548 19,451 15,118 6,866 3,975 587 6,475 4,951 7,629 30,475 208,140 2,954 Natural Increase, 2000-07 Deaths Number 1,585 803 1,551 10,824 1,287 2,677 14,962 10,734 4,186 3,322 836 4,552 3,909 4,970 13,487 140,911 2,224 632 -161 545 15,321 -379 -1,129 4,489 4,384 2,680 653 -249 1,923 1,042 2,659 16,988 67,229 730 Source: U.S. Census Bureau Notes: 1. The change in population includes the movement of federal employees and their dependents into and out of the United States. The difference between the change in population and the sum of natural increase and net migration for the U.S. is this movement of federal employees. 2. The estimated components of population change for subnational units produce a residual that is not displayed and the sum of natural increase and net migration differ from the estimated change by this residual and the movement of federal employees. Percent 2.7 -1.7 2.3 6.4 -2.6 -4.4 2.1 2.7 4.3 1.5 -2.8 2.7 1.8 3.5 5.3 3.3 2.4 Net Migration, 2000-07 Number Percent -570 -273 473 6,648 -116 1,259 -11,462 2,201 -2,380 -1,360 -87 -1,540 -2,254 -654 11,757 -191,107 701 -2.5 -2.9 2.0 2.8 -0.8 4.9 -5.5 1.3 -3.8 -3.1 -1.0 -2.1 -3.9 -0.9 3.6 -9.3 2.3 Table A-25 U.S. POPULATION, RANKED BY STATE 2000 Census United States California Texas New York Florida Illinois Pennsylvania Ohio Michigan Georgia North Carolina New Jersey Virginia Washington Massachusetts Indiana Arizona Tennessee Missouri Maryland Wisconsin Minnesota Colorado Alabama South Carolina Louisiana Kentucky Oregon Oklahoma Connecticut Iowa Mississippi Arkansas Kansas Utah Nevada New Mexico West Virginia Nebraska Idaho Maine New Hampshire Hawaii Rhode Island Montana Delaware South Dakota Alaska North Dakota Vermont District of Columbia Wyoming 2000 Rank 2007 Estimates 281,424,602 33,871,655 20,851,799 18,976,821 15,982,824 12,419,647 12,281,054 11,353,145 9,938,482 8,186,816 8,046,491 8,414,347 7,079,030 5,894,140 6,349,105 6,080,521 5,130,615 5,689,262 5,596,683 5,296,508 5,363,715 4,919,492 4,302,019 4,447,351 4,011,816 4,468,958 4,042,281 3,421,436 3,450,654 3,405,602 2,926,382 2,844,656 2,673,398 2,688,824 2,233,198 1,998,257 1,819,046 1,808,350 1,711,265 1,293,956 1,274,921 1,235,786 1,211,537 1,048,319 902,195 783,600 754,844 626,931 642,200 608,827 572,059 493,782 2007 Rank 301,621,157 1 2 3 4 5 6 7 8 10 11 9 12 15 13 14 20 16 17 19 18 21 24 23 26 22 25 28 27 29 30 31 33 32 34 35 36 37 38 39 40 41 42 43 44 45 46 48 47 49 50 51 36,553,215 23,904,380 19,297,729 18,251,243 12,852,548 12,432,792 11,466,917 10,071,822 9,544,750 9,061,032 8,685,920 7,712,091 6,468,424 6,449,755 6,345,289 6,338,755 6,156,719 5,878,415 5,618,344 5,601,640 5,197,621 4,861,515 4,627,851 4,407,709 4,293,204 4,241,474 3,747,455 3,617,316 3,502,309 2,988,046 2,918,785 2,834,797 2,775,997 2,645,330 2,565,382 1,969,915 1,812,035 1,774,571 1,499,402 1,317,207 1,315,828 1,283,388 1,057,832 957,861 864,764 796,214 683,478 639,715 621,254 588,292 522,830 Source: Population Estimates Program, Population Division, U.S. Census Bureau 53 Percent Increase 2000-2007 Rank 7.2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 7.9 14.6 1.7 14.2 3.5 1.2 1.0 1.3 16.6 12.6 3.2 8.9 9.7 1.6 4.4 23.5 8.2 5.0 6.1 4.4 5.7 13.0 4.1 9.9 -3.9 4.9 9.5 4.8 2.8 2.1 2.6 6.0 3.2 18.5 28.4 8.3 0.2 3.7 15.9 3.3 6.5 5.9 0.9 6.2 10.4 5.5 9.0 -0.4 2.0 2.8 5.9 18 6 43 7 34 46 47 45 4 9 37 15 12 44 31 2 17 27 21 30 25 8 32 11 51 28 13 29 38 41 40 22 36 3 1 16 49 33 5 35 19 23 48 20 10 26 14 50 42 39 24 Table A-26 U.S. MOTOR VEHICLE STOCKS, AGE, AND MICHIGAN VEHICLE REGISTRATIONS Year All New Registrations Percent Michigan of U.S. Total US New Registrations U.S. Stock of Auto (thousands still in use) Median Age of U.S. Autos (in years) U.S. Stock of Trucks (thousands still in use) Median Age of U.S. Trucks (in years) 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 550,593 726,688 758,168 794,687 625,996 608,432 763,526 837,996 872,939 756,696 5.4 6.2 5.8 5.5 5.5 5.7 6.0 5.8 5.9 5.5 10,178,381 11,722,295 13,001,746 14,380,069 11,358,012 10,659,257 12,809,494 14,335,562 14,909,444 13,828,904 89,309 92,753 96,949 101,579 104,898 106,713 110,351 113,696 116,575 120,248 4.9 5.1 5.1 5.1 5.2 5.4 5.5 5.6 5.7 5.9 18,748 19,772 21,262 23,153 24,598 25,776 27,720 29,562 31,703 33,350 5.9 6.1 6.0 5.8 5.6 5.8 5.8 5.7 5.8 5.9 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 533,877 518,187 465,802 612,140 729,119 759,906 784,266 668,805 706,085 692,690 4.8 4.9 4.6 5.1 5.1 4.9 4.9 4.4 4.5 4.6 11,237,714 10,629,408 10,184,813 11,900,742 14,162,441 15,563,800 15,940,863 15,129,548 15,691,031 14,952,812 121,724 123,462 123,698 126,728 127,867 132,108 135,431 137,324 141,252 143,081 6.0 6.0 6.2 6.5 6.7 6.9 7.0 6.9 6.8 6.5 33,637 34,451 35,253 36,548 38,047 38,989 40,166 41,119 42,259 43,554 6.3 6.5 6.8 7.2 7.4 7.6 7.7 7.8 7.1 6.7 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 650,560 587,128 619,054 644,440 731,748 726,822 755,782 784,489 812,050 878,003 816,701 852,971 816,914 779,217 712,788 664,900 693,741 4.7 4.7 4.8 4.6 4.8 4.8 4.9 5.1 5.1 5.2 4.7 4.9 4.9 4.7 4.2 4.0 4.2 13,901,719 12,578,621 12,866,695 13,940,626 15,257,126 15,219,319 15,486,087 15,416,677 15,774,253 17,001,640 17,556,615 17,350,148 16,839,626 16,611,630 16,866,824 16,690,280 16,564,575 143,550 142,569 144,213 146,314 133,930 136,066 129,728 129,749 131,839 132,432 133,621 137,633 134,605 137,140 137,908 138,083 NA 6.5 6.7 7.0 7.3 7.5 7.7 7.9 8.1 8.3 8.3 8.3 8.3 8.4 8.6 8.9 9.0 9.2 44,479 44,936 45,504 47,095 63,445 64,778 75,940 77,307 79,062 83,148 87,108 92,110 92,939 96,202 101,430 105,948 NA 6.5 6.8 7.2 7.5 7.5 7.6 7.7 7.8 7.6 7.2 6.7 6.1 6.6 6.5 6.4 6.6 6.8 Note: Beginning in 1994 passenger vans and SUVs previously counted as cars in vehicle stocks are included in the truck count Sources: Automotive News Market Data Book, Ward's Automotive Yearbook & MVMA Motor Vehicle Facts and Figures Registration data from National Association of Auto Dealers 2001-2006 Auto and Truck Stock from Federal Highway Administration 54 Table A-27 U.S. MOTOR VEHICLE SALES Year Retail Auto Sales Domestic Auto Sales Sales of Auto Imports Import Share of Total Auto Sales (percent) Retail Truck Sales Domestic Truck Sales Import Share of Total Truck Sales (percent) 1974 1975 1976 1977 1978 1979 8,851,956 8,627,120 10,099,573 11,175,554 11,308,498 10,643,554 7,448,921 7,050,120 8,606,573 9,104,454 9,307,998 8,315,622 1,403,035 1,577,000 1,493,000 2,071,100 2,000,500 2,327,932 15.8 18.3 14.8 18.5 17.7 21.9 2,687,924 2,478,219 3,181,254 3,675,439 4,109,079 3,479,794 2,511,771 2,248,904 2,943,872 3,352,255 3,773,166 3,009,867 6.6 9.3 7.5 8.8 8.2 13.5 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 8,975,209 8,532,672 7,978,177 9,181,036 10,332,669 10,982,889 11,408,910 10,186,413 10,544,154 9,770,039 6,578,275 6,206,296 5,756,660 6,795,302 7,951,517 8,204,721 8,214,662 7,081,262 7,501,095 7,014,850 2,396,934 2,326,376 2,221,517 2,385,734 2,441,713 2,841,063 3,248,579 3,144,054 3,068,738 2,755,189 26.7 27.3 27.8 26.0 23.6 25.9 28.5 30.9 29.1 28.2 2,487,239 2,260,318 2,559,881 3,129,476 3,883,555 4,414,508 4,617,506 4,709,359 4,878,312 4,779,192 2,000,669 1,809,188 2,145,947 2,658,269 3,475,416 3,902,417 3,921,408 3,800,426 4,168,256 4,055,321 19.6 20.0 16.2 15.1 10.5 11.6 15.1 19.3 14.6 15.1 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 9,295,741 8,175,582 8,210,627 8,519,573 8,991,347 8,635,557 8,529,124 8,289,116 8,183,412 8,750,956 6,842,733 6,072,255 6,216,488 6,674,458 7,181,975 7,023,843 7,139,884 6,907,992 6,756,804 6,987,208 2,453,008 2,103,327 1,994,139 1,845,115 1,809,372 1,611,714 1,389,240 1,381,124 1,426,608 1,763,748 26.4 25.7 24.3 21.7 20.1 18.7 16.3 16.7 17.4 20.2 4,591,077 4,159,421 4,674,589 5,398,491 6,097,787 6,130,411 6,611,099 6,863,749 7,408,381 8,203,968 3,836,052 3,446,744 4,001,927 4,656,228 5,702,913 5,739,890 6,169,877 6,308,207 6,739,619 7,491,217 16.4 17.1 14.4 13.7 6.5 6.4 6.7 8.1 9.0 8.7 2000 2001 2002 2003 2004 2005 2006 9,005,099 8,655,415 8,316,763 7,816,711 7,738,956 7,964,037 8,129,927 6,940,286 6,494,104 6,012,235 5,633,634 5,502,663 5,682,212 5,704,848 2,064,813 2,161,311 2,304,528 2,183,077 2,236,293 2,281,825 2,425,079 22.9 25.0 27.7 27.9 28.9 28.7 29.8 8,397,387 8,522,374 8,531,311 8,859,022 9,175,183 9,033,145 8,430,043 7,621,004 7,630,385 7,550,006 7,721,404 8,023,945 7,913,485 7,152,046 9.2 10.5 11.5 12.8 12.5 12.4 15.2 Note: Domestic sales include transplant vehicles (foreign company vehicles produced in North America) sold in US. Source: Automotive News Market Data Book 55 Table A-28 U.S. AND MICHIGAN MOTOR VEHICLE PRODUCTION Total U.S. Production 56 Michigan Auto Production Michigan Truck Production Total Michigan Production 27.8 31.6 31.5 32.3 28.6 27.0 29.7 30.9 30.1 27.1 2,099,000 2,836,000 2,902,000 3,268,000 2,403,000 2,249,000 2,914,000 2,852,000 2,707,560 2,581,919 454,000 587,000 734,000 1,012,000 897,000 757,000 1,030,000 1,077,000 1,288,000 995,781 2,553,000 3,423,000 3,636,000 4,280,000 3,300,000 3,006,000 3,944,000 3,929,000 3,995,560 3,577,700 30.9 32.1 32.2 33.8 32.8 33.4 34.3 30.9 31.1 31.4 38,837,519 37,380,354 36,433,276 40,022,104 42,159,635 44,690,081 45,156,013 46,384,697 47,670,728 48,080,447 20.6 21.4 18.9 23.8 25.9 26.1 25.2 23.7 23.6 23.1 1,731,501 2,040,238 1,817,456 2,077,412 2,138,844 2,406,822 2,626,299 2,559,963 2,389,431 2,124,044 443,125 459,673 577,142 696,546 873,452 897,914 782,155 842,132 822,213 925,383 2,174,626 2,499,911 2,394,598 2,773,958 3,012,296 3,304,736 3,408,454 3,402,095 3,211,644 3,049,427 27.1 31.3 34.8 29.2 27.6 28.3 30.0 31.0 28.5 27.4 50,375,116 47,441,562 49,442,510 48,793,692 51,745,907 53,337,499 53,270,933 56,521,200 53,841,408 56,285,888 59,703,849 57,704,876 60,292,567 61,562,436 65,654,367 67,891,639 70,927,676 19.6 18.3 19.8 22.3 23.8 22.3 22.0 21.5 22.3 23.2 21.5 20.0 20.4 19.7 18.3 17.7 16.0 1,945,632 1,566,716 1,688,034 1,797,880 2,145,905 1,848,797 1,845,163 1,875,490 1,717,388 1,777,843 1,841,551 1,663,908 1,792,277 1,526,668 1,257,830 1,187,016 1,116,159 751,129 593,320 756,354 1,012,858 1,264,398 1,235,701 1,053,919 1,120,936 1,065,940 1,329,955 1,251,084 1,023,137 1,103,271 1,257,013 1,338,482 1,326,535 1,159,110 2,696,761 2,160,036 2,444,388 2,810,738 3,410,303 3,084,498 2,899,082 2,996,426 2,783,328 3,107,798 3,092,635 2,687,045 2,895,548 2,783,681 2,596,312 2,513,551 2,275,269 27.3 24.3 25.0 25.8 27.7 25.9 24.7 24.7 23.1 23.8 24.1 23.3 23.5 22.9 21.6 20.9 20.0 Year U.S. Car Production U.S. Truck Production 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 6,550,077 8,557,878 8,827,706 9,667,118 7,309,763 6,740,584 8,537,759 9,293,674 9,153,299 8,418,369 1,716,641 2,097,697 2,471,530 3,007,495 2,742,502 2,250,507 2,946,410 3,433,569 3,676,747 2,973,498 8,266,718 10,655,575 11,299,236 12,674,613 10,052,265 8,991,091 11,484,169 12,727,243 12,830,046 11,391,867 29,707,707 33,728,068 35,845,958 39,236,122 35,108,355 33,322,385 38,619,510 41,240,509 42,611,388 41,978,835 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 6,416,885 6,280,045 4,973,870 7,112,352 7,777,721 8,186,040 7,829,697 7,094,992 7,129,420 6,829,976 1,593,489 1,701,122 1,902,164 2,400,429 3,146,356 3,485,435 3,543,168 3,880,342 4,132,729 4,294,969 8,010,374 7,981,167 6,876,034 9,512,781 10,924,077 11,671,475 11,372,865 10,975,334 11,262,149 11,124,945 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 6,079,192 5,439,379 5,655,781 5,988,534 6,609,523 6,326,700 6,055,939 5,922,205 5,549,500 5,640,030 5,542,475 4,879,119 5,027,425 4,518,000 4,236,736 4,325,702 4,372,196 3,808,844 3,444,390 4,119,195 4,901,548 5,707,176 5,577,515 5,658,812 6,217,356 6,480,603 7,445,141 7,289,185 6,638,503 7,300,881 7,627,137 7,784,480 7,692,341 6,979,093 9,888,036 8,883,769 9,784,976 10,890,082 12,316,699 11,904,215 11,714,751 12,139,561 12,030,103 13,085,171 12,831,660 11,517,622 12,328,306 12,145,137 12,021,216 12,018,043 11,351,289 Source: Automotive News Market Data Book & Michigan Department of Treasury Total World Production U.S. Percent of World Production Michigan Percent of U.S. Production Table A-29 NEW PRIVATE HOUSING UNITS AUTHORIZED IN MICHIGAN MSAs Ann Arbor Grand PMSA Flint Rapids Jackson Kalamazoo Lansing Muskegon Saginaw Benton Harbor Detroit PMSA 1974 1975 1976 1977 1978 1979 505 654 961 845 781 831 N/A N/A N/A N/A N/A N/A 19,231 14,004 18,214 24,672 26,409 20,050 1,878 633 1,105 1,670 2,390 1,302 1,949 1,485 1,861 3,282 3,277 2,281 3,560 3,427 3,811 4,563 5,832 4,123 679 890 916 1,177 663 771 1,298 1,655 1,972 2,640 1,674 1,838 2,452 1,865 2,509 3,800 3,455 3,986 723 639 1,163 847 1,173 674 1,997 1,366 1,863 1,870 1,751 1,596 34,272 26,618 34,375 45,366 47,405 37,452 9,919 10,151 11,520 13,318 13,669 11,757 44,191 36,769 45,895 58,684 61,074 49,209 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 692 219 176 290 180 80 227 383 398 535 N/A 447 221 312 198 235 387 446 565 478 9,692 5,460 4,603 8,162 11,651 20,109 24,452 22,450 20,671 20,447 921 271 214 345 738 1,478 1,634 2,418 2,475 1,892 1,244 631 353 734 901 1,291 1,510 928 1,078 1,362 2,627 1,909 1,546 2,659 3,999 4,318 5,805 6,184 5,708 5,718 273 181 355 178 225 166 334 484 463 680 1,648 1,414 432 912 653 727 1,696 1,702 1,614 1,546 2,206 1,671 772 1,212 1,452 1,697 2,536 2,236 2,057 2,215 803 362 323 292 315 375 368 485 584 675 701 325 323 319 721 658 839 1,086 869 1,153 20,807 12,890 9,318 15,415 21,033 31,134 39,788 38,802 36,482 36,701 8,169 5,877 4,858 6,008 6,716 6,458 7,442 7,791 8,425 8,986 28,976 18,767 14,176 21,423 27,749 37,592 47,230 46,593 44,907 45,687 1990 1991 1992 229 239 395 554 472 496 16,162 14,108 15,530 1,809 1,125 1,104 1,281 837 1,135 4,876 3,104 4,136 584 454 585 728 691 810 1,634 1,839 1,580 691 555 541 1,034 1,214 1,183 29,582 24,638 27,495 9,289 9,878 9,531 38,871 34,516 37,026 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 394 370 406 210 539 604 547 698 547 669 658 507 544 614 608 731 816 625 14,719 17,572 18,024 19,709 18,164 21,056 19,370 18,348 16,218 17,779 21,060 22,990 17,326 9,592 3,330 4,091 4,078 4,881 4,765 5,637 5,361 4,645 4,824 5,069 2,527 2,708 1,676 775 1,223 1,719 1,912 2,120 1,954 1,946 2,806 2,324 3,453 2,403 2,240 2,398 1,854 980 5,351 6,606 7,102 7,940 7,151 7,720 7,228 6,614 7,187 7,304 6,735 6,886 5,826 4,278 584 621 634 716 695 718 1,007 919 945 928 831 704 897 587 1,897 1,973 2,128 2,089 2,221 2,183 2,072 2,417 2,035 2,172 2,462 1,867 1,610 1,439 1,853 1,926 1,935 2,184 1,985 1,707 2,040 2,316 2,469 2,406 3,156 2,206 2,121 1,231 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 969 766 657 480 1,469 1,461 1,200 1,339 1,357 1,518 1,360 1,545 1,242 1,229 1,137 1,023 882 483 30,965 36,573 37,560 41,676 38,839 43,154 41,902 39,635 38,917 39,904 42,119 42,649 34,071 20,680 8,790 9,902 9,666 10,679 10,398 11,320 12,355 12,854 11,222 10,064 11,794 12,072 11,257 8,511 39,755 46,475 47,226 52,355 49,237 54,474 54,257 52,489 50,139 49,968 53,913 54,721 45,328 29,191 162 625 4,376 401 300 1,849 202 693 674 187 97 9,566 9,124 18,690 Year 57 2007 (p) (1) Starting in 1993, the Muskegon housing starts are included in the Grand Rapids total. (2) Starting in 1993 the totals for Battle Creek and Kalamazoo were reported together. (3) New area definitions were adopted beginning in 2003. (4) 2007 data are preliminary. Source: U.S. Department of Commerce MSA Total NonMetro Total Battle Creek Michigan Total Table A-30 MEDIAN PRICE OF EXISTING HOMES - MICHIGAN METROPOLITAN AREAS 1988 - 2007 Year 58 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Detroit Grand Rapids $73,100 73,700 76,700 80,600 81,300 86,000 87,000 98,200 111,400 119,600 132,600 140,000 150,500 160,000 162,800 164,400 161,000 163,800 151,700 140,300 Kalamazoo Lansing E. Lansing U.S. Midwest CPI $57,900 64,200 68,300 70,700 73,100 76,500 76,900 80,600 87,200 93,600 100,200 106,700 114,100 121,000 125,300 129,900 132,900 137,800 134,500 129,400 $53,200 57,200 60,400 64,900 69,600 71,100 74,800 82,200 90,000 97,200 102,300 110,900 110,100 115,500 115,400 123,400 123,100 121,100 N/A N/A $56,600 59,800 63,300 66,700 69,900 73,200 75,500 79,800 84,700 89,600 100,200 105,200 109,800 118,900 126,400 133,600 137,900 142,200 137,700 126,800 $89,300 89,500 92,000 97,100 99,700 103,100 107,200 110,500 115,800 121,800 128,400 133,300 139,000 147,800 158,100 180,200 195,200 219,000 221,900 217,800 $68,400 71,800 75,300 79,500 83,000 86,000 89,300 94,800 101,000 107,000 114,300 119,600 123,600 130,200 135,800 143,700 151,500 168,300 164,800 161,400 118.3 124.0 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.9 184.0 188.9 195.3 201.6 207.3 -3.8% 21.3% 123.5% N/A 9.2% 127.6% -7.9% 20.5% 124.0% -1.8% 63.4% 143.9% -2.1% 34.9% 136.0% 2.8% 24.5% 75.3% 1.3% 6.9% 4.7% 2.4% 5.8% 4.3% 6.3% 3.7% 4.8% 3.8% 5.2% 4.6% 2.8% 3.2% 3.0% Cumulative Percentage Change 2006 - 2007 1999 - 2007 1988 - 2007 -7.5% 0.2% 91.9% Average Annual Percentage Change 1999 - 2007 1988 - 1999 1988 - 2007 0.0% 6.1% 3.5% 2.4% 5.7% 4.3% * The 2006 and 2007 values for the Kalamazoo area are unavailable. The 2005 value is used in comparisons of price changes. Sources: National Association of Realtors and Bureau of Labor Statistics, U.S. Department of Labor Table A-31 10-YEAR STATE OF MICHIGAN REVENUE HISTORY (in Thousands) FY 1998 Taxes Sales Personal Income Amt Reported as Expenditures Single Business Use State Education (Property) Real Estate Transfer Liquor, Beer, Wine, & Tobacco Casino Gaming Wagering Telephone and Telegraph Insurance Company Motor Vehicle and Fuel Quality Assur. Assessment Other Total Taxes 59 Federal Agencies Local Agencies Spec Medicaid Reimb Services Licenses and Permits Miscellaneous Total Revenue FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2006 FY 2007 $5,617,331 6,316,125 477,000 2,349,148 1,159,258 1,256,874 227,852 689,451 NA 151,964 142,565 1,695,068 NA 543,391 20,626,025 $5,901,733 6,907,933 486,100 2,360,533 1,283,017 1,273,459 261,696 739,972 NA 150,334 199,463 1,784,970 NA 609,665 21,958,875 $6,277,498 7,144,211 502,100 2,324,868 1,355,389 1,381,420 257,093 736,859 NA 149,206 191,946 1,829,979 NA 714,899 22,865,469 $6,352,306 6,749,373 532,800 2,022,882 1,333,607 1,489,552 252,894 732,673 75,415 152,523 200,756 1,852,964 NA 657,279 22,405,023 $6,439,894 6,095,989 615,100 1,983,795 1,306,365 1,583,660 253,075 808,225 91,915 137,343 227,081 1,917,481 NA 610,485 22,070,408 $6,422,642 5,811,843 707,800 1,843,072 1,229,838 2,127,513 275,513 1,035,322 90,945 124,168 231,076 1,946,225 NA 580,001 22,425,957 $6,473,522 5,873,365 702,700 1,841,010 1,316,504 1,824,493 317,480 1,142,217 99,455 101,315 230,272 2,015,567 325,188 536,839 22,799,928 $6,599,138 6,108,924 815,300 1,907,190 1,402,399 1,914,629 313,548 1,330,759 145,811 99,149 249,524 1,942,450 509,857 598,285 23,936,964 $6,638,110 6,226,304 834,000 1,886,168 1,413,758 2,003,527 297,680 1,324,189 155,461 83,533 219,538 1,932,043 676,923 507,690 24,198,924 $6,552,240 6,442,678 883,400 1,786,213 1,380,375 2,080,977 237,483 1,288,335 159,363 87,282 223,754 1,909,146 827,776 511,861 24,370,884 7,679,490 165,443 585,179 107,623 376,909 700,553 7,902,699 183,822 690,799 113,415 383,778 769,236 8,571,625 173,882 1,059,343 110,294 393,006 1,032,248 9,566,353 227,996 1,155,374 115,346 391,655 1,281,281 10,202,344 248,867 1,109,233 121,849 408,746 1,150,187 10,812,852 230,728 932,658 121,198 417,786 1,390,001 11,579,388 239,815 704,551 148,140 555,858 1,109,630 11,974,006 262,875 467,970 264,957 423,501 1,371,999 12,160,022 124,101 93,621 269,593 437,560 1,457,623 12,655,930 139,429 102,670 284,370 444,841 1,510,134 $30,241,222 $32,002,624 $34,205,867 $35,143,027 $35,311,635 $36,331,180 $37,137,308 $38,702,270 $38,741,444 $39,508,258 Source: 2007 State of Michigan Comprehensive Annual Financial Report Notes: 1. Beginning in fiscal year 1996-97, the State began reporting the federal share of child support collections as federal revenue, rather than as miscellaneous revenue. Prior year amounts have been reclassified. 2. 3. 4. FY 2005 Beginning in fiscal year 1997-98, the State began reporting real estate transfer tax separately from State education (property) tax. Amounts of the real estate transfer tax for years prior to 1997-98 are not available. Beginning in fiscal year 2003-2004, the State began reporting quality assurance assessment revenue as a tax revenue rather than as miscellaneous revenue. Amounts for years prior to 2003-2004 are not available. Beginning in fiscal year 2004-2005, the state began reporting charges for providing vehicle and driving services as revenue from services, rather than licenses and permits. Amounts for years prior to 2004-2005 are not available. Table A-32 STATE REVENUE LIMIT CALCULATION - ARTICLE IX SECTION 26 (in millions) Total Revenue and Other Fin. Sources General, Special Revenue, and Permanent Funds Less Statutory Exclusions Interfund transfers Interfund borrowing costs Proceeds from bonds and notes Financing from capital leases Federal revenue Debt service Property tax credits Other statutory exclusions Special Medicaid reimb. Out of period tax refunds Tobacco settlement reimb. Prior year expenditure reimb. Other exclusions Total Exclusions FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 $31,122.5 $32,930.6 $34,727.5 $36,941.5 $38,465.9 $39,092.0 $39,275.0 $39,994.4 $41,018.5 $42,052.8 ($1,269.0) ($71.8) ($54.0) ($54.2) ($7,653.5) ($64.0) ($446.3) ($1,499.6) ($21.1) ($251.5) ($29.0) ($7,679.5) ($63.8) ($459.2) ($1,842.0) $0.0 $0.0 ($57.6) ($7,902.7) ($79.8) ($469.6) ($1,802.3) $0.0 ($82.1) ($22.3) ($8,571.6) ($85.6) ($484.7) ($1,910.7) $0.0 ($854.2) ($23.0) ($9,383.9) ($91.4) ($516.2) ($2,488.9) ($14.1) ($424.5) ($237.3) ($10,009.0) ($96.7) ($600.0) ($1,977.7) ($11.0) ($352.3) ($16.1) ($10,622.4) ($18.8) ($706.5) ($1,810.2) ($10.8) ($405.9) ($19.7) ($11,392.4) ($112.8) ($701.5) ($1,474.4) ($27.2) ($182.4) ($6.8) ($11,819.2) ($111.6) ($813.8) ($1,645.2) ($24.6) ($1,004.8) ($34.1) ($11,986.4) ($115.0) ($832.6) NA NA NA NA ($839.2) ($10,451.9) NA NA NA NA ($878.0) ($10,881.7) ($690.8) ($145.4) NA ($215.2) ($148.4) ($11,551.5) ($1,059.3) NA ($244.6) ($106.8) ($146.4) ($12,605.9) ($1,155.4) NA ($261.2) ($277.5) ($110.3) ($14,584.0) ($1,109.2) NA ($328.1) ($138.3) ($152.4) ($15,598.6) ($932.7) NA ($326.0) ($125.5) ($174.4) ($15,263.2) ($704.6) NA ($273.6) ($94.6) ($130.5) ($15,656.6) ($468.0) NA ($277.4) ($133.3) ($138.9) ($15,453.0) ($93.6) NA ($251.5) ($124.4) ($180.2) ($16,292.4) 60 Additions Nonrefundable tax credits Equity Transfer From Other Funds Total Additions $23.8 $0.0 $23.8 $23.4 $0.0 $23.4 $25.9 $6.5 $32.4 $27.3 $0.0 $27.3 $27.3 $0.0 $27.3 $52.7 $0.0 $52.7 $49.8 $0.0 $49.8 $46.8 $0.0 $46.8 $61.3 $0.0 $61.3 $53.8 $0.0 $53.8 Total Revenue Subject to Limitation $20,694.3 $22,072.3 $23,208.5 $24,362.9 $23,909.2 $23,546.0 $24,061.6 $24,384.7 $25,626.8 $25,814.1 $228,369.0 9.49% $21,672.2 $239,330.0 9.49% $22,712.4 $244,329.0 9.49% $23,186.8 $255,039.0 9.49% $24,203.2 $277,296.0 9.49% $26,315.4 $289,390.0 9.49% $27,463.1 $297,609.0 9.49% $28,243.1 $303,745.0 9.49% $28,825.4 $314,460.0 9.49% $29,842.3 $324,134.0 9.49% $30,760.3 ($977.9) ($640.1) ($2,406.2) ($3,917.1) ($4,181.5) ($4,440.7) ($4,215.5) ($4,946.2) Personal Income Section 26 Base Ratio Section 26 Revenue Limit Amount Over (Under) Limit $21.7 $159.7 Source: Michigan Department of Management and Budget, annual "Statement of Revenue Subject to Constitutional Limitation - Legal Basis" Notes: 1. The State Revenue Limit calculation is performed in accordance with Article IX Section 26 of the State Constitution. Public Act 504 provides the statutory language to implement this provision. Detailed information on the calculation can be found in the annual "Statement of Revenue Subject to Constitutional Limitation - Legal Basis" published by the Department of Management and Budget. 2. State revenues are compared to personal income for the calendar year ending in the preceding fiscal year. For example, FY 2007 revenues are compared to CY 2005 personal income. Table A-33 Counter Cyclical Budget and Economic Stabilization Fund (in millions) 61 Fiscal Year Unreserved Beginning Balance 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 $987.9 $614.5 $579.8 $1,000.5 $1,222.5 $1,264.4 $994.2 $145.2 $0.0 $81.3 $2.0 $2.0 Interest Income $59.2 $67.8 $60.1 $51.2 $74.0 $66.7 $20.8 $1.8 $0.0 $2.0 $0.1 $0.1 Funds Unrestricted and Deposits $96.4 $10.0 $572.6 $244.4 $100.0 $0.0 $0.0 $9.1 $81.3 $0.0 $0.0 $0.0 Withdrawals/Transfers To General Fund $0.0 $0.0 $0.0 $0.0 $0.0 ($270.0) ($452.8) ($124.1) $0.0 ($81.3) $0.0 $0.0 To School Aid Fund $0.0 $0.0 ($212.0) ($73.7) ($32.0) ($32.0) ($382.0) ($32.0) $0.0 $0.0 $0.0 $0.0 To Other $0.0 ($69.0) $0.0 $0.0 ($100.0) ($35.0) ($35.0) $0.0 $0.0 $0.0 $0.0 $0.0 Total Withdrawals $0.0 ($69.0) ($212.0) ($73.7) ($132.0) ($337.0) ($869.8) ($156.1) $0.0 ($81.3) $0.0 $0.0 Source: State of Michigan Comprehensive Annual Financial Report - various years. Notes: 1. The Counter-Cyclical Budget and Economic Stabilization Fund was created in 1977 to assist in stabilizing revenue during periods of economic recession. Provisions for depositing and withdrawing revenue from the fund are outlined in Public Act 431 of 1984. 2. In FY 1998, $572.6 million in fund balance was reclassified from reserved to unreserved. Restricted for Future Use Unreserved Ending Balance ($529.1) ($43.5) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $614.5 $579.8 $1,000.5 $1,222.5 $1,264.4 $994.2 $145.2 $0.0 $81.3 $2.0 $2.0 $2.1 Table A-34 MICHIGAN REAL PROPERTY STATE EQUALIZED VALUE (SEV) BY CLASS 62 Year Agriculture Commercial 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 $2,428,073,382 2,631,643,039 2,767,998,546 2,966,596,460 3,253,519,145 3,680,674,772 3,931,334,132 4,410,266,132 5,050,142,536 5,766,430,668 6,328,135,948 6,851,013,534 7,378,223,333 7,429,329,879 7,458,643,844 7,403,969,514 6,955,160,741 6,215,406,320 5,928,883,663 5,904,588,144 6,057,234,906 6,213,137,932 6,216,847,066 6,582,382,596 6,799,329,607 7,025,495,741 7,435,695,481 8,086,317,160 8,862,077,578 9,746,360,963 10,704,606,830 11,884,000,757 13,382,059,973 14,490,357,406 15,898,969,406 17,079,396,204 16,624,024,168 17,653,875,255 $4,479,110,556 4,920,726,264 5,289,180,485 6,095,838,694 6,748,511,652 7,251,964,454 7,643,557,366 8,077,760,508 8,650,737,622 9,581,045,520 10,633,386,181 11,556,372,899 12,186,372,328 12,465,415,642 12,743,237,220 13,515,504,501 14,310,467,355 15,738,555,140 17,510,768,606 19,315,639,740 21,188,659,057 22,554,363,038 22,937,093,145 23,876,568,014 24,519,576,429 25,507,399,601 26,883,408,611 28,796,350,519 31,168,447,882 34,175,427,581 37,747,704,809 42,041,985,038 46,474,852,558 50,419,526,422 53,021,398,105 56,219,954,715 59,155,491,285 61,995,642,365 Source: Michigan State Tax Commission Industrial $4,354,130,433 4,732,051,343 5,006,268,660 5,257,318,114 5,614,001,496 5,824,753,617 6,356,640,800 6,585,112,846 6,935,567,823 7,502,276,607 8,181,599,425 9,124,359,043 9,418,002,354 9,452,673,269 9,535,645,848 9,867,244,730 10,185,813,823 10,529,154,262 10,848,169,099 11,417,842,888 11,989,304,264 12,301,807,180 12,589,064,977 12,854,175,802 12,981,984,517 13,460,660,268 13,994,870,592 14,619,079,321 15,283,082,298 16,480,050,259 17,496,791,093 18,529,852,114 20,553,734,463 22,918,860,554 23,776,959,348 24,824,342,675 25,387,479,560 25,813,944,008 Residential $18,410,274,820 20,121,981,797 21,837,363,296 23,132,331,200 25,185,954,680 27,679,961,125 29,652,286,598 32,150,563,868 35,256,657,107 39,954,252,345 46,669,303,911 53,018,207,770 57,491,186,325 56,977,602,048 58,002,894,224 59,069,664,700 60,682,211,801 63,653,297,519 68,850,921,971 75,467,133,491 82,927,523,932 90,600,239,418 92,403,947,226 103,938,971,556 109,571,673,457 117,188,134,392 127,044,516,355 138,923,304,960 154,188,734,247 170,817,572,582 188,828,676,626 209,546,590,808 231,990,810,111 251,936,860,990 270,087,361,385 287,801,333,413 305,585,093,273 317,605,998,910 Timber C-O & Developmental $152,082,388 166,389,114 198,391,053 230,441,780 259,918,052 289,724,453 339,314,392 381,970,088 422,603,165 466,549,835 687,806,033 942,396,029 713,635,476 715,817,303 706,006,694 669,109,288 643,137,297 617,088,343 592,667,638 603,609,682 627,789,664 640,059,826 646,221,390 639,358,539 596,842,312 640,848,243 612,804,827 624,455,887 629,865,773 692,089,570 815,959,950 844,312,395 942,964,009 1,015,134,265 914,305,835 980,091,883 1,032,254,787 1,014,130,857 Total $29,823,671,579 32,572,791,557 35,099,202,040 37,682,526,248 41,061,905,025 44,727,078,421 47,923,133,288 51,605,673,442 56,315,708,253 63,270,554,975 72,500,231,498 81,492,349,275 87,187,419,816 87,040,838,141 88,446,427,830 90,525,492,733 92,776,791,017 96,753,501,584 103,731,410,977 112,708,813,945 122,790,511,823 132,309,607,394 134,793,173,804 147,891,456,507 154,469,406,322 163,822,538,245 175,971,295,866 191,049,507,847 210,132,207,778 231,911,500,955 255,593,739,308 282,846,741,112 313,344,421,114 340,780,739,637 363,698,994,079 386,905,118,890 407,784,343,073 424,083,591,395 Table A-35 MICHIGAN REAL PROPERTY TAXABLE VALUE (TV) BY CLASS 63 Year Agriculture Commercial 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 $6,772,340,174 6,886,644,243 7,049,764,809 7,231,720,846 7,334,070,027 7,464,131,975 7,685,747,400 7,910,624,969 8,025,165,638 8,187,227,815 8,383,477,970 8,318,089,411 8,709,496,551 $25,090,256,525 26,020,863,515 27,350,534,023 28,935,085,319 30,616,828,483 32,803,392,665 35,302,959,948 37,625,005,929 39,673,211,156 41,568,134,188 43,823,673,918 46,241,418,568 49,075,109,720 Source: Michigan State Tax Commission Industrial $13,369,455,314 13,783,807,105 14,319,968,643 14,877,078,650 15,680,530,909 16,340,045,165 17,011,716,807 18,082,510,606 19,689,070,248 20,403,101,673 20,944,247,274 21,548,522,986 22,193,254,919 Residential $114,130,278,690 120,193,852,842 127,861,808,955 136,440,825,049 144,918,791,677 154,838,574,448 167,456,216,312 180,641,155,820 191,724,452,369 205,347,396,782 219,514,861,235 235,415,312,805 248,796,215,888 Timber C-O & Developmental $600,961,686 543,749,711 523,790,218 488,005,705 496,009,363 506,218,455 495,207,172 492,991,992 486,080,066 418,103,392 412,540,863 426,363,187 432,878,812 Total $159,963,292,389 167,428,917,416 177,105,866,648 187,972,715,569 199,046,230,459 211,952,362,708 227,951,847,639 244,752,289,316 259,597,979,477 275,923,963,850 293,078,801,260 311,949,706,957 329,206,955,890 Table A-36 MICHIGAN PERSONAL PROPERTY STATE EQUALIZED VALUE (SEV) BY CLASS Year Agriculture 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 $74,778 94,686 80,064 128,156 207,163 204,494 199,605 261,790 255,864 279,328 258,028 490,114 294,784 655,831 497,858 500,785 500,674 477,606 451,565 384,496 406,188 426,726 392,853 429,993 450,795 477,348 474,703 470,474 494,174 556,817 502,346 489,918 485,349 NA NA NA NA NA Commercial $1,960,836,449 2,060,693,881 2,134,366,046 2,328,516,373 2,591,166,371 2,844,516,638 1,524,568,091 1,621,573,625 1,781,876,984 1,971,939,226 2,213,845,812 2,458,616,916 2,662,733,997 2,814,352,083 3,043,079,274 3,481,144,373 4,049,912,308 4,529,439,608 4,822,390,939 5,215,475,694 5,740,454,890 6,016,387,985 6,202,156,217 6,166,779,871 6,483,770,764 6,955,501,140 7,635,309,034 8,352,340,457 9,065,147,068 10,165,416,542 10,064,669,728 10,676,596,309 11,071,625,733 10,731,702,713 10,514,806,656 10,551,792,134 10,638,600,486 10,827,802,425 Industrial Residential $5,005,599,046 5,128,931,506 5,227,795,300 5,417,026,545 5,812,222,781 6,551,055,713 3,568,938,839 3,702,836,647 4,029,145,367 4,304,285,432 4,667,437,859 4,753,688,798 4,829,682,933 4,754,502,733 4,791,167,816 5,104,870,618 5,617,195,016 6,037,600,585 6,292,075,894 6,576,500,524 7,034,212,471 7,357,311,190 7,801,791,590 8,030,127,096 8,523,103,654 9,201,211,359 10,024,281,929 10,520,476,765 11,212,822,145 11,690,259,928 11,362,739,372 11,613,457,215 11,450,226,423 11,084,309,268 10,870,737,710 10,969,810,432 11,029,949,532 10,984,991,926 $26,296,146 27,807,650 28,592,264 32,384,384 36,173,370 39,285,910 42,203,838 44,002,603 52,710,272 54,087,484 63,271,040 61,383,795 61,639,336 59,061,371 58,468,096 57,335,215 58,390,922 59,371,314 64,063,434 65,574,814 68,371,182 69,102,132 70,546,736 82,215,346 83,532,191 87,585,098 96,608,358 125,506,099 138,096,206 159,036,255 177,162,084 195,349,848 202,209,747 4,600,538 3,433,197 3,704,641 1,236,965 132,759 Utility $1,757,356,482 1,847,296,876 1,979,750,787 2,143,642,638 2,379,939,037 2,652,494,463 2,402,751,114 2,528,988,905 2,690,893,405 2,926,809,276 3,201,005,728 3,292,605,897 3,468,291,966 3,674,349,279 3,831,915,969 3,626,411,968 3,739,638,867 3,874,328,298 4,179,176,198 4,246,472,974 4,536,758,536 5,107,407,964 5,416,256,931 5,706,113,789 5,980,041,780 6,327,571,639 6,614,274,529 6,697,034,543 6,867,203,311 7,075,388,966 7,228,024,777 7,563,403,425 7,646,285,046 6,923,945,171 7,534,944,015 7,366,465,309 6,967,124,890 7,212,191,169 Note: Beginning in 2003, buildings on leased land for residential and agricultural property are assessed as real property. See MCL 211.34c. Source: Michigan State Tax Commission 64 Total $8,750,162,901 9,064,824,599 9,370,584,461 9,921,698,096 10,819,708,722 12,087,557,218 7,538,661,487 7,897,663,570 8,554,881,892 9,257,400,746 10,145,818,467 10,566,785,520 11,022,643,016 11,302,921,297 11,725,129,013 12,270,262,959 13,465,637,787 14,501,217,411 15,358,158,030 16,104,408,501 17,380,203,267 18,550,635,997 19,491,144,328 19,985,666,094 21,070,899,184 22,572,346,584 24,370,948,553 25,695,828,338 27,283,762,904 29,090,658,508 28,833,098,307 30,049,296,715 30,370,832,298 28,744,557,690 28,923,921,578 28,891,772,516 28,636,911,872 29,025,118,279 Table A-37 MICHIGAN REAL AND PERSONAL PROPERTY VALUES, TAXES AND TAX RATES Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Assessed Valuation (Thousands) $32,954,101 36,593,349 39,814,568 42,648,458 47,269,245 51,148,731 49,905,386 53,867,947 58,353,692 64,169,105 71,724,553 80,255,988 95,623,614 97,967,489 99,987,771 102,736,459 106,340,390 111,387,223 119,027,768 128,648,757 139,920,677 150,686,640 154,265,530 167,651,137 175,280,413 186,261,943 200,246,250 216,681,926 237,410,262 260,964,265 284,331,483 312,428,793 343,577,370 369,403,504 392,561,906 415,776,197 436,293,871 County Equalized Valuation (Thousands) State Equalized Valuation (Thousands) $38,553,759 41,562,933 44,347,772 47,492,752 51,747,552 55,802,269 54,232,820 59,305,512 64,724,020 72,449,827 82,087,269 91,930,069 96,742,630 98,327,004 100,169,325 102,685,055 106,251,911 111,256,788 119,087,279 128,813,222 140,165,655 150,858,393 154,284,318 167,877,123 175,550,496 186,388,437 200,341,063 216,745,336 237,410,262 261,002,159 284,426,838 312,518,811 343,714,996 369,525,943 392,621,446 415,796,970 436,421,637 $38,551,597 41,648,959 44,487,728 47,612,674 51,871,329 56,800,875 55,478,935 59,512,999 64,863,929 72,512,251 82,581,103 91,799,179 98,139,884 98,302,925 100,151,842 102,685,055 106,154,935 111,037,636 119,013,924 128,754,498 139,901,357 150,665,065 153,928,613 167,731,374 175,195,104 186,394,885 200,341,063 216,745,336 237,415,971 261,002,159 284,426,838 312,896,038 343,715,252 369,525,297 392,622,129 415,796,891 436,421,255 Source: Michigan State Tax Commission 65 Tax Levy Amount Percent (Thousands) Change $1,874,291 2,063,280 2,183,224 2,420,403 2,649,594 2,903,906 2,960,724 3,207,096 3,484,874 3,889,378 4,411,378 4,898,386 5,172,518 5,187,279 5,374,275 5,592,861 5,851,019 6,214,634 6,761,056 7,391,136 7,998,491 8,638,678 8,941,685 9,500,582 6,690,701 7,081,111 7,536,108 7,952,659 8,449,614 8,933,372 9,462,264 10,250,893 11,033,307 11,269,974 12,190,160 12,827,379 13,598,087 12.9 10.1 5.8 10.9 9.5 9.6 2.0 8.3 8.7 11.6 13.4 11.0 5.6 0.3 3.6 4.1 4.6 6.2 8.8 9.3 8.2 8.0 3.5 6.3 (29.6) 5.8 6.4 5.5 6.2 5.7 5.9 8.3 7.6 2.1 8.2 5.2 6.0 Average Millage Rate Percent Millage Change 48.62 49.54 49.07 50.84 51.08 51.12 53.37 53.89 53.73 53.64 53.42 53.36 52.71 52.77 53.66 54.47 55.12 55.97 56.81 57.40 57.17 57.34 58.09 56.64 38.19 38.88 39.32 39.25 39.27 39.16 39.32 39.78 40.17 39.00 40.00 39.88 39.96 2.7 1.9 (0.9) 3.6 0.5 0.1 4.4 1.0 (0.3) (0.2) (0.4) (0.1) (1.2) 0.1 1.7 1.5 1.2 1.5 1.5 1.0 (0.4) 0.3 1.3 (2.5) (32.6) 1.8 1.1 (0.2) 0.1 (0.3) 0.4 1.2 1.0 (2.9) 2.6 (0.3) 0.2 Table A-38 MICHIGAN STATE EQUALIZED VALUE (TAXABLE VALUE), BY LOCAL UNIT OF GOVERNMENT (Dollar amounts in thousands) City Year SEV/TV % of Total Township SEV/TV % of Total Village SEV/TV % of Total Total SEV/TV Total % of Total 66 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 $22,745,472 26,678,784 28,093,947 29,663,371 31,398,819 33,771,052 31,402,222 32,799,055 34,863,659 38,204,235 59.0 64.1 63.1 62.3 60.5 59.5 56.6 55.1 53.7 52.7 $15,806,125 14,970,175 16,393,781 17,949,303 20,472,509 23,029,823 24,076,713 26,713,945 30,000,270 34,308,015 41.0 35.9 36.9 37.7 39.5 40.5 43.4 44.9 46.3 47.3 $911,325 973,540 1,047,373 1,109,677 1,258,174 1,403,173 1,372,455 1,500,704 1,662,869 1,865,961 2.4 2.3 2.4 2.3 2.4 2.5 2.5 2.5 2.6 2.6 $38,551,598 41,648,959 44,487,728 47,612,674 51,871,329 56,800,875 55,478,935 59,512,999 64,863,929 72,512,251 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 42,833,547 47,164,585 49,958,916 49,772,178 50,620,737 52,458,583 54,421,806 57,569,279 61,857,908 66,836,823 51.9 51.4 50.9 50.6 50.5 51.1 51.3 51.8 52.0 51.9 39,747,556 44,634,595 48,180,968 48,530,747 49,531,105 50,226,472 51,733,129 53,468,357 57,156,016 61,917,675 48.1 48.6 49.1 49.4 49.5 48.9 48.7 48.2 48.0 48.1 2,115,574 2,359,223 2,535,173 2,537,973 2,587,959 2,609,131 2,706,699 2,835,748 3,034,572 3,244,865 2.6 2.6 2.6 2.6 2.6 2.5 2.5 2.6 2.5 2.5 82,581,103 91,799,179 98,139,884 98,302,925 100,151,842 102,685,055 106,154,935 111,037,636 119,013,924 128,754,498 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 72,266,851 76,914,931 78,017,505 83,356,067 86,063,830 88,477,159 92,621,682 97,013,121 102,061,718 107,322,531 111,930,043 118,509,830 124,862,873 130,277,754 135,175,888 141,079,675 147,724,774 51.7 51.1 50.7 49.7 49.1 48.6 48.3 47.9 47.4 47.1 46.5 46.0 45.5 45.1 44.4 43.9 43.4 67,634,506 73,750,133 75,911,108 84,375,307 89,131,274 93,647,994 99,058,877 105,602,411 113,117,389 120,773,866 128,717,446 139,202,268 149,789,303 158,679,412 169,540,096 180,573,408 192,609,668 48.3 48.9 49.3 50.3 50.9 51.4 51.7 52.1 52.6 52.9 53.5 54.0 54.5 54.9 55.6 56.1 56.6 3,525,406 3,807,036 3,875,338 4,246,082 4,441,626 4,600,487 4,786,935 5,028,854 5,380,576 5,718,876 6,062,413 6,508,079 6,877,505 7,293,590 7,560,152 7,905,826 8,470,420 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 139,901,357 150,665,065 153,928,613 167,731,374 175,195,104 182,125,153 191,680,559 202,615,532 215,179,108 228,096,397 240,647,490 257,712,099 274,652,176 288,957,166 304,715,984 321,653,083 340,334,443 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: Michigan State Tax Commission Table A-39 MICHIGAN GENERAL PROPERTY TAXES, BY LOCAL UNIT OF GOVERNMENT (Dollar amounts in thousands) 67 Year Amount 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $1,167,313 1,293,298 1,367,523 1,543,162 1,725,399 1,899,787 1,951,536 2,141,068 2,342,119 2,622,639 3,009,469 3,372,394 3,588,710 3,607,967 3,761,002 3,926,767 4,102,395 4,352,814 4,761,210 5,250,531 5,704,489 6,170,813 6,411,139 6,836,174 3,865,697 4,124,674 4,398,167 4,629,229 4,918,068 5,214,382 5,522,820 6,071,454 6,569,395 6,579,337 7,261,965 7,631,560 8,052,036 School % of Total Millage 62.3 62.7 62.6 63.8 65.1 65.4 65.9 66.8 67.2 67.4 68.2 68.8 69.4 69.6 70.0 70.2 70.1 70.0 70.4 71.0 71.3 71.4 71.7 72.0 57.8 58.2 58.4 58.2 58.2 58.4 58.4 59.2 59.5 58.4 59.6 59.5 59.2 30.28 31.05 30.74 32.41 33.26 33.45 35.18 35.98 36.11 36.17 36.44 36.74 36.57 36.70 37.55 38.24 38.65 39.20 40.01 40.78 40.78 40.96 41.65 40.75 22.07 22.65 22.95 22.85 22.86 22.86 22.95 23.56 23.92 22.77 23.83 23.73 23.66 Source: Michigan State Tax Commission Amount $417,563 455,500 478,665 515,281 525,884 564,566 571,118 586,803 620,979 677,378 736,985 786,310 811,269 811,595 829,252 853,998 899,262 960,165 1,013,834 1,066,375 1,125,805 1,207,149 1,231,699 1,288,039 1,355,455 1,411,549 1,487,390 1,570,957 1,655,572 1,734,404 1,829,966 1,923,619 2,016,791 2,108,628 2,178,717 2,294,324 2,426,969 City % of Total Millage 22.3 22.1 21.9 21.3 19.8 19.4 19.3 18.3 17.8 17.4 16.7 16.1 15.7 15.6 15.4 15.3 15.4 15.5 15.0 14.4 14.1 14.0 13.8 13.6 20.3 19.9 19.7 19.8 19.6 19.4 19.3 18.8 18.3 18.7 17.9 17.9 17.8 18.36 17.07 17.04 17.37 16.75 16.72 18.19 17.89 17.81 17.73 17.21 16.67 16.24 16.31 16.38 16.28 16.52 16.69 16.40 15.96 15.59 15.70 15.79 15.46 15.75 15.95 16.06 16.19 16.22 16.16 16.35 16.23 16.15 16.19 16.12 16.26 16.43 Amount $240,247 259,504 276,349 294,461 319,717 347,100 341,810 369,748 400,217 447,480 504,460 554,532 581,142 589,176 602,935 626,064 651,462 687,913 756,858 820,347 893,985 961,789 988,422 1,042,306 1,098,218 1,143,508 1,219,794 1,281,079 1,356,051 1,432,072 1,509,459 1,612,237 1,726,576 1,811,694 1,918,051 2,017,065 2,166,548 County % of Total Millage 12.8 12.6 12.7 12.2 12.1 12.0 11.5 11.5 11.5 11.5 11.4 11.3 11.2 11.4 11.2 11.2 11.1 11.1 11.2 11.1 11.2 11.1 11.1 11.0 16.4 16.1 16.2 16.1 16.0 16.0 16.0 15.7 15.6 16.1 15.7 15.7 15.9 6.23 6.23 6.21 6.18 6.16 6.11 6.16 6.21 6.17 6.17 6.11 6.04 5.92 5.99 6.02 6.10 6.14 6.20 6.36 6.37 6.39 6.38 6.42 6.21 6.27 6.28 6.36 6.32 6.30 6.28 6.27 6.26 6.29 6.27 6.29 6.27 6.37 Table A-39 (Continued) Year 68 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Amount $38,954 43,821 47,967 53,657 62,530 74,694 78,555 90,448 100,893 118,691 134,302 156,528 161,779 148,086 149,591 154,261 164,583 178,263 191,005 212,903 230,587 251,714 262,086 283,374 317,464 344,611 370,704 408,150 454,170 481,799 526,049 564,489 637,405 683,401 743,252 793,380 856,411 Township % of Total Millage 2.1 2.1 2.2 2.2 2.4 2.6 2.7 2.8 2.9 3.1 3.0 3.2 3.1 2.9 2.8 2.8 2.8 2.9 2.8 2.9 2.9 2.9 2.9 3.0 4.7 4.9 4.9 5.1 5.4 5.4 5.6 5.5 5.8 6.1 6.1 6.2 6.3 2.46 2.96 2.93 2.99 3.05 3.24 3.26 3.39 3.36 3.46 3.38 3.51 3.36 3.05 3.02 3.07 3.18 3.33 3.34 3.44 3.41 3.41 3.45 3.36 3.56 3.68 3.74 3.86 4.02 3.99 4.09 4.06 4.26 4.31 4.38 4.39 4.45 Source: Michigan State Tax Commission Amount $10,214 11,158 12,719 13,842 16,064 17,760 17,705 19,028 20,666 23,189 26,163 28,622 29,618 30,454 31,400 31,772 33,317 35,480 38,149 40,979 43,625 47,212 48,338 50,689 53,867 56,770 60,054 63,244 65,753 70,715 73,970 79,095 83,140 86,914 88,175 91,051 96,123 Village % of Total Millage 0.5 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.7 11.21 11.46 12.14 12.47 12.77 12.66 12.90 12.68 12.43 12.43 12.37 12.13 11.68 12.00 12.17 12.18 12.31 12.51 12.57 12.63 12.37 12.40 12.47 11.94 12.13 12.34 12.55 12.58 12.22 12.37 12.20 12.15 12.09 11.92 11.66 11.52 11.35 Amount $1,874,292 2,063,280 2,183,224 2,420,403 2,649,594 2,903,906 2,960,724 3,207,096 3,484,874 3,889,378 4,411,378 4,898,386 5,172,518 5,187,279 5,374,180 5,592,861 5,851,019 6,214,634 6,761,056 7,391,136 7,998,491 8,638,678 8,941,685 9,500,582 6,690,701 7,081,111 7,536,108 7,952,659 8,449,614 8,933,372 9,462,264 10,250,893 11,033,307 11,269,974 12,190,160 12,827,379 13,598,087 Total % of Total Millage 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 48.62 49.54 49.07 50.84 51.08 51.12 53.37 53.89 53.73 53.64 53.42 53.36 52.71 52.77 53.66 54.47 55.12 55.97 56.81 57.40 57.17 57.34 58.09 56.63 38.19 38.88 39.32 39.25 39.27 39.16 39.32 39.78 40.17 39.00 40.00 39.88 39.96 Table A-40 MICHIGAN SCHOOL PROPERTY TAXES (Dollar amounts in thousands) 69 Year Operating Taxes Percent of Total School Amount Taxes 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $989,878 1,101,359 1,171,356 1,317,419 1,494,394 1,663,952 1,702,286 1,891,473 2,073,000 2,339,302 2,710,253 3,077,112 3,293,604 3,332,986 3,483,596 3,637,616 3,806,997 4,045,299 4,439,589 4,885,801 5,340,031 5,767,461 5,976,316 6,381,337 3,411,942 3,570,223 3,759,071 3,893,077 4,113,183 4,328,678 4,536,968 4,946,177 5,308,668 5,237,180 5,820,709 6,115,716 6,446,590 Source: Michigan State Tax Commission 84.8 85.2 85.7 85.4 86.6 87.6 87.2 88.3 88.5 89.2 90.1 91.2 91.8 92.4 92.6 92.6 92.8 92.9 93.2 93.1 93.6 93.5 93.2 93.3 88.3 86.6 85.5 84.1 83.6 83.0 82.1 81.5 80.8 79.6 80.2 80.1 80.1 Millage Rate 25.7 26.4 26.3 27.7 28.8 29.3 30.7 31.8 32.0 32.3 32.8 33.5 33.6 33.9 34.8 35.4 35.9 36.4 37.3 37.9 38.2 38.3 38.8 38.0 19.5 19.6 19.6 19.2 19.1 19.0 18.9 19.2 19.3 18.1 19.1 19.0 18.9 Debt, Building and Site Taxes Percent of Total School Millage Amount Taxes Rate Amount $177,436 191,940 196,167 225,742 231,005 235,836 249,250 249,595 269,119 283,337 299,216 295,282 295,106 274,981 277,406 289,151 295,399 307,515 321,621 364,730 364,459 403,352 434,823 454,837 453,755 554,451 639,096 736,152 804,886 885,704 985,852 1,125,277 1,260,727 1,342,157 1,441,256 1,515,844 1,605,447 $1,167,313 1,293,298 1,367,523 1,543,162 1,725,399 1,899,787 1,951,536 2,141,068 2,342,119 2,622,639 3,009,469 3,372,394 3,588,710 3,607,967 3,761,002 3,926,767 4,102,395 4,352,814 4,761,210 5,250,531 5,704,489 6,170,813 6,411,139 6,836,174 3,865,697 4,124,674 4,398,167 4,629,229 4,918,068 5,214,382 5,522,820 6,071,454 6,569,395 6,579,337 7,261,965 7,631,560 8,052,036 15.2 14.8 14.3 14.6 13.4 12.4 12.8 11.7 11.5 10.8 9.9 8.8 8.2 7.6 7.4 7.4 7.2 7.1 6.8 6.9 6.4 6.5 6.8 6.7 11.7 13.4 14.5 15.9 16.4 17.0 17.9 18.5 19.2 20.4 19.8 19.9 19.9 4.6 4.6 4.4 4.7 4.5 4.2 4.5 4.2 4.2 3.9 3.6 3.2 3.0 2.8 2.8 2.8 2.8 2.8 2.7 2.8 2.6 2.7 2.8 2.7 2.6 3.0 3.3 3.6 3.7 3.9 4.1 4.4 4.6 4.6 4.7 4.7 4.7 Total School Taxes Total School Taxes as a Percent of Total Property Taxes Total School Millage Rate 62.3 62.7 62.6 63.8 65.1 65.4 65.9 66.8 67.2 67.4 68.2 68.8 69.4 69.6 70.0 70.2 70.1 70.0 70.4 71.0 71.3 71.4 71.70 71.96 57.78 58.25 58.36 58.21 58.20 58.37 58.37 59.23 59.54 58.38 59.57 59.49 59.21 30.3 31.1 30.7 32.4 33.3 33.4 35.2 36.0 36.1 36.2 36.4 36.7 36.6 36.7 37.6 38.2 38.6 39.2 40.0 40.8 40.8 41.0 41.7 40.8 22.1 22.6 22.9 22.8 22.9 22.9 22.9 23.6 23.9 22.8 23.8 23.7 23.7 Table A-41 HOMESTEAD PROPERTY TAX CREDIT (Number and amount in thousands) Year 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 General Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average 781.9 $163,430.1 $209.0 862.7 $200,376.9 $232.3 890.1 $245,832.0 $276.2 975.4 $315,030.1 $323.0 1,034.5 $359,751.8 $347.8 986.0 $337,111.2 $341.9 912.0 $311,823.0 $341.9 846.9 $280,927.6 $331.7 845.6 $277,762.5 $328.5 854.6 $287,296.5 $336.2 891.5 $322,357.5 $361.6 927.6 $363,208.1 $391.6 982.8 $401,845.8 $408.9 1,085.3 $476,258.7 $438.8 1,081.2 $468,983.7 $433.8 1,122.3 $517,887.7 $461.5 662.3 $194,591.9 $293.8 Senior Citizen 387.0 $147,391.7 $380.9 385.8 $161,663.8 $419.0 396.3 $181,608.1 $458.3 402.9 $205,905.2 $511.1 410.6 $224,438.4 $546.6 418.8 $228,140.4 $544.7 423.3 $229,545.5 $542.3 439.4 $240,933.7 $548.3 458.8 $255,597.4 $557.1 467.9 $274,740.8 $587.2 480.0 $296,508.7 $617.7 493.1 $325,536.7 $660.2 500.2 $348,082.8 $695.9 534.9 $385,417.8 $720.5 551.4 $406,505.3 $737.2 568.5 $442,577.1 $778.5 416.0 $213,210.7 $512.5 Veteran Blind 53.2 $10,554.0 $198.4 52.5 $10,519.5 $200.4 49.3 $9,964.7 $202.1 44.8 $8,806.7 $196.6 39.2 $7,888.4 $201.2 37.6 $7,637.1 $203.1 34.7 $7,198.1 $207.4 32.1 $6,690.9 $208.4 31.0 $6,430.1 $207.4 25.2 $5,286.2 $209.8 22.9 $4,955.3 $216.4 22.8 $4,986.1 $218.7 17.3 $3,685.0 $213.0 17.1 $3,852.7 $225.3 16.1 $3,565.2 $221.4 16.2 $3,527.6 $217.8 16.7 $2,139.0 $128.1 2.7 $548.4 $203.1 3.1 $654.5 $211.1 2.4 $503.1 $209.6 2.5 $521.8 $208.7 3.1 $633.1 $204.2 2.5 $530.1 $212.0 2.5 $521.8 $208.7 2.0 $426.8 $213.4 1.7 $383.3 $225.5 2.0 $424.0 $212.0 2.2 $485.2 $220.6 1.9 $431.7 $227.2 2.3 $517.9 $225.2 2.1 $493.1 $234.8 1.6 $363.6 $227.3 1.4 $305.0 $217.9 1.6 $205.6 $128.5 70 Disabled 32.8 $6,684.5 $203.8 32.4 $7,304.0 $225.4 31.6 $7,702.3 $243.7 30.9 $8,329.6 $269.6 31.0 $8,789.3 $283.5 26.7 $7,491.4 $280.6 29.5 $8,419.8 $285.4 22.8 $6,515.2 $285.8 19.3 $5,438.2 $281.8 23.4 $6,731.0 $287.7 25.5 $7,983.0 $313.3 25.4 $8,346.4 $328.6 33.1 $11,684.8 $353.0 30.7 $11,117.9 $362.1 32.6 $11,940.8 $366.3 31.4 $12,052.5 $383.8 23.9 $6,358.4 $266.0 Farmland 5.4 $15,577.2 $2,884.7 8.3 $24,271.7 $2,924.3 12.0 $37,950.3 $3,162.5 14.8 $53,638.1 $3,624.2 15.1 $62,981.3 $4,171.0 17.0 $71,674.6 $4,216.2 18.2 $77,568.3 $4,262.0 19.6 $71,464.8 $3,646.2 17.3 $58,215.7 $3,365.1 17.1 $54,932.5 $3,212.4 16.7 $54,294.9 $3,251.2 15.4 $53,278.1 $3,459.6 15.6 $62,443.1 $4,002.8 15.3 $60,452.1 $3,951.1 15.1 $64,689.3 $4,284.1 13.7 $18,883.9 $1,378.4 Total 1,257.6 $328,608.7 $261.3 1,341.9 $396,095.9 $295.2 1,378.0 $469,881.9 $341.0 1,468.5 $576,543.7 $392.6 1,533.2 $655,139.1 $426.8 1,486.7 $643,891.5 $433.1 1,419.0 $629,182.8 $433.4 1,361.4 $613,062.5 $450.3 1,376.0 $617,076.3 $448.5 1,390.4 $632,694.2 $455.0 1,439.2 $687,222.2 $477.5 1,487.5 $756,803.9 $508.8 1,551.1 $819,094.4 $528.1 1,685.7 $939,583.3 $557.4 1,698.2 $951,810.7 $560.5 1,754.9 $1,041,039.2 $593.2 1,134.2 $435,389.5 $383.9 Table A-41 (continued) Year General 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Notes: Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average Number Amount Average 658.2 $191,569.7 $291.1 689.6 $208,123.4 $301.8 700.1 $217,637.4 $310.9 701.7 $222,668.0 $317.3 722.0 $236,806.5 $328.0 743.1 $256,411.6 $345.1 815.0 $307,264.6 $377.0 898.8 $370,010.1 $411.7 928.7 $397,200.9 $427.7 983.4 $441,451.7 $448.9 1,002.3 $466,036.9 $465.0 Senior Citizen 396.9 $210,408.8 $530.1 392.2 $215,534.1 $549.6 387.0 $216,687.5 $560.0 374.9 $218,225.7 $582.2 372.3 $222,054.4 $596.5 364.2 $220,132.0 $604.4 381.8 $245,680.5 $643.5 409.9 $283,828.7 $692.4 413.1 $290,546.3 $703.3 418.2 $304,368.7 $727.8 416.4 $306,092.4 $735.1 Veteran 17.0 $2,163.9 $127.3 15.6 $1,999.7 $128.2 15.1 $1,894.9 $125.6 13.7 $1,729.5 $126.4 12.7 $1,629.7 $127.8 12.2 $1,511.1 $124.2 11.4 $1,407.1 $123.4 10.3 $1,286.4 $124.7 10.0 $1,221.9 $122.3 9.3 $1,183.0 $126.7 9.1 $1,132.0 $124.9 The disabled category includes paraplegic, quadriplegic and totally disabled individuals. The farmland category has been in effect since 1974 but was included in the other categories until 1979. Source: Michigan Department of Treasury 71 Blind 1.7 $210.1 $123.6 1.5 $191.3 $127.5 2.0 $243.4 $121.1 1.6 $194.4 $123.5 1.9 $237.9 $125.6 1.8 $219.7 $123.6 1.6 $202.9 $123.9 1.5 $185.4 $120.5 1.3 $159.5 $118.6 1.4 $170.4 $123.9 1.4 $171.6 $125.5 Disabled 25.1 $6,981.5 $278.1 26.0 $6,766.3 $260.2 28.8 $8,505.7 $295.8 29.1 $8,836.7 $303.4 28.6 $8,897.2 $310.8 39.3 $19,288.0 $490.3 44.1 $23,115.3 $523.9 49.5 $27,271.5 $551.3 53.0 $30,141.4 $568.9 57.6 $34,040.6 $591.1 59.6 $35,952.5 $603.3 Farmland 12.1 $17,594.4 $1,454.1 11.4 $18,895.2 $1,657.5 8.2 $17,733.9 $2,150.1 7.7 $18,018.6 $2,331.9 7.2 $17,333.9 $2,418.6 7.4 $19,051.1 $2,587.4 9.5 $30,264.3 $3,170.7 9.2 $31,572.0 $3,416.9 8.6 $28,227.2 $3,273.1 8.1 $29,965.3 $3,677.2 8.1 $30,395.1 $3,731.3 Total 1,111.0 $428,928.4 $386.1 1,136.3 $451,510.0 $397.4 1,141.2 $462,702.7 $405.5 1,128.7 $469,673.0 $416.1 1,144.7 $486,959.7 $425.4 1,168.0 $516,613.4 $442.3 1,263.5 $607,934.6 $481.2 1,379.3 $714,154.2 $517.8 1,414.8 $747,497.1 $528.3 1,478.1 $811,179.8 $548.8 1,497.0 $839,780.6 $561.0 Table A-42 HISTORICAL DISTRIBUTIONS OF STATE REVENUE SHARING By Type of Local Unit of Government (in millions) Fiscal Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Counties $121.6 153.5 163.0 174.7 178.0 190.9 200.6 200.6 214.3 228.7 217.5 202.6 182.1 0.0 (1) 0.0 (1) 0.0 (1) Townships Cities $212.2 212.5 236.0 239.7 263.1 277.5 298.4 307.0 331.3 381.3 378.7 370.2 333.0 331.1 330.7 321.5 $572.1 644.9 689.2 731.2 793.7 814.9 843.7 852.1 893.6 911.7 888.0 846.7 761.4 754.0 745.4 722.9 Villages $20.4 21.6 23.4 24.0 25.7 26.4 28.1 28.7 31.0 33.7 33.1 31.9 28.7 27.8 27.5 26.7 Total $926.4 1,032.4 1,111.5 1,169.5 1,260.5 1,309.7 1,370.8 1,388.4 1,470.2 1,555.5 1,517.3 1,451.4 1,305.1 1,112.9 1,103.6 1,071.1 (1) Starting in Fiscal Year 2005, county revenue sharing payments were suspended. Public Act 357 of 2004 provides a funding mechanism to serve as a substitute to county revenue sharing payments. This substitute funding mechanism involves a gradual shift of county property tax millage from a winter tax levy to a summer tax levy and additionally required counties to establish a restricted fund known as the Revenue Sharing Reserve Fund (RSRF). Counties were to deposit into the fund 1/3 of the county's December 2004 property tax levy in the 2005 through 2007 fiscal years. Counties would then annually draw from the fund the revenue sharing amount they received in the state's 2004 fiscal year adjusted annually for inflation. When a county's RSRF has been depleted, the county will once again receive revenue sharing payments from the state. Amounts include constitutional & statutory revenue sharing, inventory reimbursements, special census payments and special grants (FY 2004, 2005, 2006 & 2007). Individual amounts may not add to totals due to rounding. Source: Office of Revenue and Tax Analysis, Michigan Department of Treasury 72 Table A-43 STATE AND LOCAL TAX BURDEN COMPARISONS, FY 2005 State FY 2005 State & Local Taxes (thousands) Alabama $11,686,675 Alaska $2,947,034 Arizona $18,331,117 Arkansas $8,053,926 California $146,616,887 Colorado $15,680,821 Connecticut $18,896,812 Delaware $3,277,387 Florida $59,863,884 Georgia $27,486,109 Hawaii $5,523,747 Idaho $4,182,546 Illinois $49,138,495 Indiana $21,337,077 Iowa $9,704,861 Kansas $9,385,496 Kentucky $12,261,812 Louisiana $14,301,995 Maine $5,219,708 Maryland $23,899,055 Massachusetts $28,756,962 Michigan $35,295,158 Minnesota $20,956,639 Mississippi $7,490,681 Missouri $17,374,264 Montana $2,722,702 Nebraska $6,586,238 Nevada $9,043,570 New Hampshire $4,319,777 New Jersey $42,557,354 New Mexico $6,069,328 New York $111,107,619 North Carolina $27,307,108 North Dakota $2,121,388 Ohio $41,714,754 Oklahoma $10,073,102 Oregon $11,106,991 Pennsylvania $46,019,258 Rhode Island $4,499,624 South Carolina $11,800,640 South Dakota $2,103,820 Tennessee $15,993,136 Texas $69,133,862 Utah $7,303,964 Vermont $2,574,761 Virginia $27,659,186 Washington $22,974,042 West Virginia $5,550,746 Wisconsin $21,403,526 Wyoming $2,671,853 U.S. Totals 1,092,087,497 FY 2005 State & Local 2005 Taxes Population Per Person 4,548,327 663,253 5,953,007 2,775,708 36,154,147 4,663,295 3,500,701 841,741 17,768,191 9,132,553 1,273,278 1,429,367 12,765,427 6,266,019 2,965,524 2,748,172 4,172,608 4,507,331 1,318,220 5,589,599 6,433,367 10,100,833 5,126,739 2,908,496 5,797,703 934,737 1,758,163 2,412,301 1,306,819 8,703,150 1,925,985 19,315,721 8,672,459 634,605 11,470,685 3,543,442 3,638,871 12,405,348 1,073,579 4,246,933 774,883 5,955,745 22,928,508 2,490,334 622,387 7,564,327 6,291,899 1,814,083 5,527,644 508,798 $2,569 $4,443 $3,079 $2,902 $4,055 $3,363 $5,398 $3,894 $3,369 $3,010 $4,338 $2,926 $3,849 $3,405 $3,273 $3,415 $2,939 $3,173 $3,960 $4,276 $4,470 $3,494 $4,088 $2,575 $2,997 $2,913 $3,746 $3,749 $3,306 $4,890 $3,151 $5,752 $3,149 $3,343 $3,637 $2,843 $3,052 $3,710 $4,191 $2,779 $2,715 $2,685 $3,015 $2,933 $4,137 $3,657 $3,651 $3,060 $3,872 $5,251 295,925,012 $3,690 Rank 50 6 34 44 12 27 2 14 26 38 7 42 16 25 30 24 40 31 13 8 5 23 11 49 39 43 18 17 29 4 32 1 33 28 22 45 36 19 9 46 47 48 37 41 10 20 21 35 15 3 FY 2005 Total Tax Revenue as a % of Income Rank $132,724,750 22,935,750 171,142,750 72,667,250 1,301,152,250 169,876,000 162,595,750 30,202,250 584,216,500 273,348,500 42,651,750 39,480,000 452,140,750 191,417,000 92,710,750 88,109,750 114,879,750 124,157,250 40,022,250 227,527,750 273,644,250 329,011,000 188,231,750 71,241,250 177,149,500 26,456,250 56,968,750 83,252,250 48,426,250 372,795,000 52,260,750 750,489,000 261,528,250 19,175,000 359,549,250 103,176,250 114,262,500 424,319,500 37,335,250 116,992,500 24,683,750 179,344,500 725,587,500 65,606,250 19,978,000 275,706,250 222,437,250 46,924,500 180,705,750 18,332,500 8.81% 12.85% 10.71% 11.08% 11.27% 9.23% 11.62% 10.85% 10.25% 10.06% 12.95% 10.59% 10.87% 11.15% 10.47% 10.65% 10.67% 11.52% 13.04% 10.50% 10.51% 10.73% 11.13% 10.51% 9.81% 10.29% 11.56% 10.86% 8.92% 11.42% 11.61% 14.80% 10.44% 11.06% 11.60% 9.76% 9.72% 10.85% 12.05% 10.09% 8.52% 8.92% 9.53% 11.13% 12.89% 10.03% 10.33% 11.83% 11.84% 14.57% 49 6 27 20 16 46 10 24 38 40 4 30 22 17 34 29 28 14 3 33 32 26 18 31 42 37 13 23 47 15 11 1 35 21 12 43 44 25 7 39 50 48 45 19 5 41 36 9 8 2 9,959,529,500 10.97% FY 2005 Personal Income (thousands) Sources: Bureau of the Census and Bureau of Economic Analysis, U.S. Department of Commerce. 73 Table A-44 STATE AND LOCAL PROPERTY TAX BURDEN COMPARISONS, FY 2005 State FY 2005 FY 2005 State & Local State & Local Property Taxes 2005 Property Taxes (thousands) Population Per Person Rank Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming $1,792,320 $892,307 $5,126,076 $1,172,261 $34,058,299 $4,940,398 $7,155,644 $485,848 $20,389,149 $8,214,542 $818,239 $1,153,841 $18,690,132 $7,638,992 $3,302,265 $3,090,403 $2,246,867 $2,429,386 $2,151,968 $5,594,371 $10,341,126 $12,918,887 $5,250,869 $1,967,447 $4,695,477 $997,447 $2,101,827 $2,320,774 $2,650,326 $19,196,599 $863,071 $34,149,967 $6,449,622 $619,912 $11,973,971 $1,718,634 $3,562,960 $13,390,534 $1,819,413 $3,738,818 $730,122 $3,894,418 $30,275,679 $1,792,451 $1,056,355 $8,390,045 $6,637,299 $1,008,409 $7,796,015 $890,710 4,548,327 663,253 5,953,007 2,775,708 36,154,147 4,663,295 3,500,701 841,741 17,768,191 9,132,553 1,273,278 1,429,367 12,765,427 6,266,019 2,965,524 2,748,172 4,172,608 4,507,331 1,318,220 5,589,599 6,433,367 10,100,833 5,126,739 2,908,496 5,797,703 934,737 1,758,163 2,412,301 1,306,819 8,703,150 1,925,985 19,315,721 8,672,459 634,605 11,470,685 3,543,442 3,638,871 12,405,348 1,073,579 4,246,933 774,883 5,955,745 22,928,508 2,490,334 622,387 7,564,327 6,291,899 1,814,083 5,527,644 508,798 $394 $1,345 $861 $422 $942 $1,059 $2,044 $577 $1,148 $899 $643 $807 $1,464 $1,219 $1,114 $1,125 $538 $539 $1,632 $1,001 $1,607 $1,279 $1,024 $676 $810 $1,067 $1,195 $962 $2,028 $2,206 $448 $1,768 $744 $977 $1,044 $485 $979 $1,079 $1,695 $880 $942 $654 $1,320 $720 $1,697 $1,109 $1,055 $556 $1,410 $1,751 U.S. Totals 334,542,492 295,925,012 $1,130 50 12 35 49 32 23 2 43 17 33 42 37 10 15 19 18 46 45 8 27 9 14 26 40 36 22 16 30 3 1 48 4 38 29 25 47 28 21 7 34 31 41 13 39 6 20 24 44 11 5 FY 2005 Personal Income (thousands) $132,724,750 22,935,750 171,142,750 72,667,250 1,301,152,250 169,876,000 162,595,750 30,202,250 584,216,500 273,348,500 42,651,750 39,480,000 452,140,750 191,417,000 92,710,750 88,109,750 114,879,750 124,157,250 40,022,250 227,527,750 273,644,250 329,011,000 188,231,750 71,241,250 177,149,500 26,456,250 56,968,750 83,252,250 48,426,250 372,795,000 52,260,750 750,489,000 261,528,250 19,175,000 359,549,250 103,176,250 114,262,500 424,319,500 37,335,250 116,992,500 24,683,750 179,344,500 725,587,500 65,606,250 19,978,000 275,706,250 222,437,250 46,924,500 180,705,750 18,332,500 1.35% 3.89% 3.00% 1.61% 2.62% 2.91% 4.40% 1.61% 3.49% 3.01% 1.92% 2.92% 4.13% 3.99% 3.56% 3.51% 1.96% 1.96% 5.38% 2.46% 3.78% 3.93% 2.79% 2.76% 2.65% 3.77% 3.69% 2.79% 5.47% 5.15% 1.65% 4.55% 2.47% 3.23% 3.33% 1.67% 3.12% 3.16% 4.87% 3.20% 2.96% 2.17% 4.17% 2.73% 5.29% 3.04% 2.98% 2.15% 4.31% 4.86% 9,959,529,500 3.36% Sources: Bureau of the Census and Bureau of Economic Analysis, U.S. Department of Commerce. 74 FY 2005 Total Property Tax Revenue as a % of Income Rank 50 14 28 48 38 32 8 49 20 27 45 31 11 12 18 19 44 43 2 40 15 13 33 35 37 16 17 34 1 4 47 7 39 22 21 46 25 24 5 23 30 41 10 36 3 26 29 42 9 6 Table A-45 STATE AND LOCAL SALES TAX BURDEN COMPARISONS, FY 2005 FY 2005 State & Local Sales Taxes (thousands) FY 2005 State & Local 2005 Sales Taxes Population Per Person Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming $3,533,309 $157,364 $7,026,285 $3,327,742 $37,574,729 $4,390,974 $3,267,726 $0 $20,078,780 $7,663,648 $2,136,604 $1,128,485 $8,361,402 $5,001,049 $2,159,655 $2,519,819 $2,605,165 $5,677,694 $934,848 $2,889,997 $3,890,945 $8,074,095 $4,269,450 $2,588,972 $4,859,476 $0 $1,768,202 $3,061,987 $0 $6,552,200 $2,155,330 $21,100,839 $6,242,129 $478,934 $9,649,733 $2,929,587 $0 $8,257,856 $844,087 $3,030,925 $833,586 $7,569,457 $20,248,178 $2,181,820 $315,233 $4,046,895 $10,645,361 $1,095,341 $4,299,914 $682,253 4,548,327 663,253 5,953,007 2,775,708 36,154,147 4,663,295 3,500,701 841,741 17,768,191 9,132,553 1,273,278 1,429,367 12,765,427 6,266,019 2,965,524 2,748,172 4,172,608 4,507,331 1,318,220 5,589,599 6,433,367 10,100,833 5,126,739 2,908,496 5,797,703 934,737 1,758,163 2,412,301 1,306,819 8,703,150 1,925,985 19,315,721 8,672,459 634,605 11,470,685 3,543,442 3,638,871 12,405,348 1,073,579 4,246,933 774,883 5,955,745 22,928,508 2,490,334 622,387 7,564,327 6,291,899 1,814,083 5,527,644 508,798 $777 $237 $1,180 $1,199 $1,039 $942 $933 $0 $1,130 $839 $1,678 $789 $655 $798 $728 $917 $624 $1,260 $709 $517 $605 $799 $833 $890 $838 $0 $1,006 $1,269 $0 $753 $1,119 $1,092 $720 $755 $841 $827 $0 $666 $786 $714 $1,076 $1,271 $883 $876 $506 $535 $1,692 $604 $778 $1,341 U.S. Totals 262,108,060 295,925,012 $886 State Rank 31 46 8 7 13 15 16 47 9 22 2 28 39 27 34 17 40 6 37 44 41 26 24 18 23 47 14 5 47 33 10 11 35 32 21 25 47 38 29 36 12 4 19 20 45 43 1 42 30 3 FY 2005 Total Sales Tax Revenue as a % of Income Rank $132,724,750 22,935,750 171,142,750 72,667,250 1,301,152,250 169,876,000 162,595,750 30,202,250 584,216,500 273,348,500 42,651,750 39,480,000 452,140,750 191,417,000 92,710,750 88,109,750 114,879,750 124,157,250 40,022,250 227,527,750 273,644,250 329,011,000 188,231,750 71,241,250 177,149,500 26,456,250 56,968,750 83,252,250 48,426,250 372,795,000 52,260,750 750,489,000 261,528,250 19,175,000 359,549,250 103,176,250 114,262,500 424,319,500 37,335,250 116,992,500 24,683,750 179,344,500 725,587,500 65,606,250 19,978,000 275,706,250 222,437,250 46,924,500 180,705,750 18,332,500 2.66% 0.69% 4.11% 4.58% 2.89% 2.58% 2.01% 0.00% 3.44% 2.80% 5.01% 2.86% 1.85% 2.61% 2.33% 2.86% 2.27% 4.57% 2.34% 1.27% 1.42% 2.45% 2.27% 3.63% 2.74% 0.00% 3.10% 3.68% 0.00% 1.76% 4.12% 2.81% 2.39% 2.50% 2.68% 2.84% 0.00% 1.95% 2.26% 2.59% 3.38% 4.22% 2.79% 3.33% 1.58% 1.47% 4.79% 2.33% 2.38% 3.72% 24 46 7 3 15 27 38 47 11 20 1 17 40 25 34 16 36 4 32 45 44 29 35 10 22 47 14 9 47 41 6 19 30 28 23 18 47 39 37 26 12 5 21 13 42 43 2 33 31 8 9,959,529,500 2.63% FY 2005 Personal Income (thousands) Sources: Bureau of the Census and Bureau of Economic Analysis, U.S. Department of Commerce. 75 Table A-46 STATE AND LOCAL INCOME TAX BURDEN COMPARISONS, FY 2005 State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan FY 2005 State & Local Income Taxes (thousands) 2005 Population $2,644,726 $0 $2,848,450 $1,875,065 $42,992,007 $3,770,736 $5,033,442 $932,254 $0 $7,326,225 $1,381,481 $1,040,512 $7,936,884 $4,811,592 $2,312,898 $2,050,562 $3,792,231 $2,392,727 $1,299,252 $9,153,415 $9,690,270 4,548,327 663,253 5,953,007 2,775,708 36,154,147 4,663,295 3,500,701 841,741 17,768,191 9,132,553 1,273,278 1,429,367 12,765,427 6,266,019 2,965,524 2,748,172 4,172,608 4,507,331 1,318,220 5,589,599 6,433,367 FY 2005 State & Local Income Taxes Per Person FY 2005 Total Income Tax Revenue as a % of Income Rank FY 2005 Personal Income (thousands) $581 $0 $478 $676 $1,189 $809 $1,438 $1,108 $0 $802 $1,085 $728 $622 $768 $780 $746 $909 $531 $986 $1,638 $1,506 36 44 39 31 7 19 4 9 44 21 11 29 35 25 23 27 18 38 13 2 3 $132,724,750 22,935,750 171,142,750 72,667,250 1,301,152,250 169,876,000 162,595,750 30,202,250 584,216,500 273,348,500 42,651,750 39,480,000 452,140,750 191,417,000 92,710,750 88,109,750 114,879,750 124,157,250 40,022,250 227,527,750 273,644,250 1.99% 0.00% 1.66% 2.58% 3.30% 2.22% 3.10% 3.09% 0.00% 2.68% 3.24% 2.64% 1.76% 2.51% 2.49% 2.33% 3.30% 1.93% 3.25% 4.02% 3.54% 36 44 39 22 7 32 12 13 44 19 10 21 38 23 26 30 8 37 9 3 5 Rank $6,565,176 10,100,833 $650 32 329,011,000 2.00% 35 Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming $6,341,164 $1,174,065 $4,318,505 $713,390 $1,393,897 $0 $67,686 $8,224,290 $1,086,015 $34,843,704 $8,427,553 $242,008 $13,079,167 $2,468,609 $4,829,181 $11,461,650 $998,042 $2,691,473 $0 $155,333 $0 $1,926,697 $500,464 $8,352,366 $0 $1,171,987 $5,465,082 $0 5,126,739 2,908,496 5,797,703 934,737 1,758,163 2,412,301 1,306,819 8,703,150 1,925,985 19,315,721 8,672,459 634,605 11,470,685 3,543,442 3,638,871 12,405,348 1,073,579 4,246,933 774,883 5,955,745 22,928,508 2,490,334 622,387 7,564,327 6,291,899 1,814,083 5,527,644 508,798 $1,237 $404 $745 $763 $793 $0 $52 $945 $564 $1,804 $972 $381 $1,140 $697 $1,327 $924 $930 $634 $0 $26 $0 $774 $804 $1,104 $0 $646 $989 $0 6 40 28 26 22 44 42 15 37 1 14 41 8 30 5 17 16 34 44 43 44 24 20 10 44 33 12 44 188,231,750 71,241,250 177,149,500 26,456,250 56,968,750 83,252,250 48,426,250 372,795,000 52,260,750 750,489,000 261,528,250 19,175,000 359,549,250 103,176,250 114,262,500 424,319,500 37,335,250 116,992,500 24,683,750 179,344,500 725,587,500 65,606,250 19,978,000 275,706,250 222,437,250 46,924,500 180,705,750 18,332,500 3.37% 1.65% 2.44% 2.70% 2.45% 0.00% 0.14% 2.21% 2.08% 4.64% 3.22% 1.26% 3.64% 2.39% 4.23% 2.70% 2.67% 2.30% 0.00% 0.09% 0.00% 2.94% 2.51% 3.03% 0.00% 2.50% 3.02% 0.00% 6 40 28 18 27 44 42 33 34 1 11 41 4 29 2 17 20 31 44 43 44 16 24 14 44 25 15 44 U.S. Totals 239,782,233 295,925,012 $810 9,959,529,500 2.41% Sources: Bureau of the Census and Bureau of Economic Analysis, U.S. Department of Commerce. 76 TABLE A-47 BUSINESS TAXES AS A SHARE OF TOTAL STATE AND LOCAL TAXES AND PRIVATE SECTOR GROSS STATE PRODUCT, COUNCIL ON STATE TAXATION ESTIMATES, FY 2006 (BILLIONS OF DOLLARS) State and Local State Business Taxes Alabama $5.5 Alaska 3.1 Arizona 9.8 Arkansas 3.6 California 75.3 Colorado 8.1 Connecticut 6.9 Delaware 2.0 Florida 32.0 Georgia 13.2 Hawaii 2.4 Idaho 1.9 Illinois 26.7 Indiana 10.5 Iowa 4.6 Kansas 5.3 Kentucky 5.9 Louisiana 8.9 Maine 2.5 Maryland 9.4 Massachusetts 13.1 Michigan 15.8 Minnesota 10.8 Mississippi 4.1 Missouri 7.8 Montana 1.6 Nebraska 3.5 Nevada 4.7 New Hampshire 2.5 New Jersey 18.6 New Mexico 3.5 New York 50.5 North Carolina 11.7 North Dakota 1.6 Ohio 18.4 Oklahoma 5.7 Oregon 4.8 Pennsylvania 22.0 Rhode Island 2.2 South Carolina 5.6 South Dakota 1.5 Tennessee 9.3 Texas 49.4 Utah 3.3 Vermont 1.3 Virginia 11.3 Washington 14.2 West Virginia 3.2 Wisconsin 9.6 Wyoming 2.6 Washington, DC 2.0 United States 553.7 Total State and Business Percent Local Taxes of Total Taxes $12.4 44.2% 3.9 82.1% 20.0 49.4% 8.6 40.9% 177.9 42.3% 18.1 44.4% 20.1 34.3% 3.8 53.5% 67.0 47.8% 32.0 41.3% 6.2 38.0% 4.6 41.2% 56.0 47.7% 22.9 45.6% 9.8 46.6% 10.9 48.6% 13.3 44.7% 14.7 60.6% 5.6 45.6% 25.9 36.1% 33.8 38.7% 37.6 41.9% 25.5 42.5% 8.5 48.3% 18.8 41.3% 3.1 50.9% 7.2 47.4% 10.0 47.4% 4.5 56.9% 48.5 38.4% 6.1 56.5% 117.8 43.0% 31.3 37.4% 2.5 61.5% 45.5 40.3% 11.6 49.5% 13.4 36.1% 51.7 42.5% 4.9 46.0% 13.4 42.1% 2.3 64.0% 18.0 51.7% 78.3 63.1% 8.5 38.0% 2.8 45.8% 29.9 37.8% 26.9 52.9% 6.1 52.2% 24.5 39.3% 3.3 77.0% 4.5 43.9% 1,234.5 44.9% Source: Council on State Taxation (COST), Ernst & Young 77 Business Eff. Tax Rate (% of Percent Rank Private Sector GSP) 29 4.3% 1 9.8% 15 5.2% 40 4.7% 34 5.2% 28 4.2% 51 3.9% 9 3.9% 18 5.4% 37 4.2% 45 5.6% 39 4.6% 19 5.3% 25 4.9% 22 4.6% 16 5.8% 27 4.9% 6 6.0% 25 6.6% 49 4.6% 43 4.4% 36 4.7% 32 5.1% 17 6.1% 37 4.1% 13 6.3% 20 5.7% 20 4.7% 7 5.1% 44 4.8% 8 6.2% 31 5.9% 48 3.9% 5 7.3% 41 4.7% 14 5.6% 49 3.9% 32 5.0% 23 5.8% 35 4.8% 3 5.4% 12 4.6% 4 5.6% 45 4.2% 24 6.5% 47 3.9% 10 6.2% 11 7.2% 42 5.0% 2 10.8% 30 3.7% NA 5.1% Eff. Tax Rate Rank 41 2 22 32 22 42 46 46 19 42 16 36 21 28 36 13 28 11 5 36 40 32 24 10 45 7 15 32 24 30 8 12 46 3 32 16 46 26 13 30 19 36 16 42 6 46 8 4 26 1 51 NA Table A-48 TOTAL BUSINESS ESTABLISHMENTS BY STATE (Numbers in Thousands) State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming United States Percentage Change 2000 2005 99,817 18,501 114,804 63,185 799,863 137,528 92,436 23,771 19,655 428,438 200,442 29,853 37,429 308,067 146,321 80,890 74,939 89,921 101,016 39,466 128,467 176,222 236,912 139,080 59,788 144,755 31,849 49,623 48,178 37,414 233,559 42,782 492,073 203,903 20,139 270,509 85,094 100,645 294,741 28,534 97,146 23,783 130,876 471,509 55,379 21,564 175,582 164,018 41,047 140,415 18,120 101,976 19,808 131,651 66,039 860,866 151,070 93,561 25,319 20,481 504,662 220,528 32,244 43,346 318,927 149,871 82,087 76,173 92,176 102,790 41,933 138,481 175,291 237,523 150,231 60,542 154,306 35,736 51,440 58,561 39,224 242,128 45,006 514,265 216,994 21,061 270,968 88,548 108,571 303,333 30,331 103,416 25,205 133,098 497,758 65,549 22,273 193,067 175,658 40,735 145,159 19,736 2% 7% 15% 5% 8% 10% 1% 7% 4% 18% 10% 8% 16% 4% 2% 1% 2% 3% 2% 6% 8% -1% 0% 8% 1% 7% 12% 4% 22% 5% 4% 5% 5% 6% 5% 0% 4% 8% 3% 6% 6% 6% 2% 6% 18% 3% 10% 7% -1% 3% 9% 7,070,048 7,499,702 6% 2000 Rank Source: U.S. Census County Business Pattern Data and Michigan Department of Treasury calculations. 78 25 50 22 32 1 19 27 46 49 4 11 43 40 5 15 30 31 28 23 39 21 12 8 18 33 16 42 35 36 41 9 37 2 10 48 7 29 24 6 44 26 45 20 3 34 47 13 14 38 17 51 2005 Rank 26 50 22 32 1 16 27 45 49 3 10 43 38 5 18 30 31 28 25 39 20 14 9 17 34 15 42 36 35 41 8 37 2 11 48 7 29 23 6 44 24 46 21 4 33 47 12 13 40 19 51 Table A-49 MICHIGAN MAJOR SECTOR PAYROLL Thousands 2000 Source Natural Resources and Mining Construction Manufacturing Trade, Transportation, and Utilities Services Not Elsewhere Classified** Total Total Annual Payroll Employees* $410,881 $8,518,840 $37,795,762 $24,873,674 $69,392,446 $4,490,887 10,119 203,994 819,227 860,685 2,115,423 63,338 $145,482,490 4,072,786 2005 Average Payroll Per Employee $40,605 $41,760 $46,136 $28,900 $32,803 $70,904 Total Annual Payroll Employees* $420,942 $7,589,911 $31,631,273 $25,291,192 $83,481,305 $41,663 8,567 160,493 635,234 795,731 2,194,561 2,290 $148,456,286 3,796,876 Percent Change Average Payroll Per Employee $49,135 $47,291 $49,795 $31,784 $38,040 $18,193 Total Annual Payroll 2% -11% -16% 2% 20% -99% Employees -15% -21% -22% -8% 4% -96% Average Payroll Per Employee 21% 13% 8% 10% 16% -74% 79 2000 DATA INFLATION ADJUSTED TO 2005 DOLLARS Thousands 2000 Source Natural Resources and Mining Construction Manufacturing Trade, Transportation, and Utilities Services Not Elsewhere Classified** Total Total Annual Payroll Employees* $469,819 $9,740,805 $43,217,285 $28,441,619 $79,346,280 $5,135,072 10,119 203,994 819,227 860,685 2,115,423 63,338 $166,350,880 4,072,786 2005 Average Payroll Per Employee $46,429 $47,750 $52,754 $33,045 $37,508 $81,074 *Using mid-March employee data. ** 2000 Not Elsewhere Classified includes Auxiliaries; Auxiliaries data not reported for 2005. Source: U.S. Census Bureau Total Annual Payroll Employees* $420,942 $7,589,911 $31,631,273 $25,291,192 $83,481,305 $41,663 8,567 160,493 635,234 795,731 2,194,561 2,290 $148,456,286 3,796,876 Percent Change Average Payroll Per Employee $49,135 $47,291 $49,795 $31,784 $38,040 $18,193 Total Annual Payroll -10% -22% -27% -11% 5% -99% Employees -15% -21% -22% -8% 4% -96% Average Payroll Per Employee 6% -1% -6% -4% 1% -78% Table A-50 TOTAL PRIVATE EMPLOYMENT, PAYROLL, AND NUMBER OF ESTALBLISMENTS BY COUNTY Private Sector Employment 80 Alcona Alger Allegan Alpena Antrim Arenac Baraga Barry Bay Benzie Berrien Branch Calhoun Cass Charlevoix Cheboygan Chippewa Clare Clinton Crawford Delta Dickinson Eaton Emmet Genesee Gladwin Gogebic Grand Traverse Gratiot Hillsdale Houghton Huron Ingham Ionia 1,198 2,108 34,483 11,649 5,466 3,615 1,786 11,095 32,471 3,712 57,374 13,283 52,609 8,905 8,600 5,467 8,827 5,765 12,466 3,612 13,552 12,699 27,348 14,761 135,722 3,945 5,157 43,068 11,445 14,159 9,609 10,176 127,577 11,225 2005 Annual Payroll (000) $28,473 $59,366 $1,193,503 $339,504 $136,336 $85,357 $54,179 $325,092 $1,066,950 $94,081 $1,874,526 $375,900 $1,924,904 $251,555 $270,843 $168,263 $216,633 $148,056 $375,744 $101,483 $380,691 $405,955 $786,025 $476,452 $4,810,466 $102,268 $99,678 $1,390,306 $310,168 $376,314 $223,638 $296,363 $4,526,306 $302,394 Number of Establishments 233 271 2,361 885 654 365 213 1,044 2,488 499 3,956 909 2,906 861 938 851 886 584 1,266 354 1,191 949 1,942 1,650 8,866 484 484 3,627 796 930 945 1,025 7,147 1,007 Percent of Statewide Total Annual Private Sector Payroll Number of Employment (000) Establishments 0.03% 0.06% 0.91% 0.31% 0.14% 0.10% 0.05% 0.29% 0.86% 0.10% 1.51% 0.35% 1.39% 0.23% 0.23% 0.14% 0.23% 0.15% 0.33% 0.10% 0.36% 0.33% 0.72% 0.39% 3.57% 0.10% 0.14% 1.13% 0.30% 0.37% 0.25% 0.27% 3.36% 0.30% 0.02% 0.04% 0.80% 0.23% 0.09% 0.06% 0.04% 0.22% 0.72% 0.06% 1.26% 0.25% 1.30% 0.17% 0.18% 0.11% 0.15% 0.10% 0.25% 0.07% 0.26% 0.27% 0.53% 0.32% 3.24% 0.07% 0.07% 0.94% 0.21% 0.25% 0.15% 0.20% 3.05% 0.20% 0.10% 0.11% 0.99% 0.37% 0.28% 0.15% 0.09% 0.44% 1.05% 0.21% 1.67% 0.38% 1.22% 0.36% 0.39% 0.36% 0.37% 0.25% 0.53% 0.15% 0.50% 0.40% 0.82% 0.69% 3.73% 0.20% 0.20% 1.53% 0.34% 0.39% 0.40% 0.43% 3.01% 0.42% Table A-50 (continued) Private Sector Employment 81 Iosco Iron Isabella Jackson Kalamazoo Kalkaska Kent Keweenaw Lake Lapeer Leelanau Lenawee Livingston Luce Mackinac Macomb Manistee Marquette Mason Mecosta Menominee Midland Missaukee Monroe Montcalm Montmorency Muskegon Newaygo Oakland Oceana Ogemaw Ontonagon Osceola Oscoda Otsego Ottawa 6,990 3,044 21,507 50,949 109,046 3,456 322,959 207 1,227 18,747 3,915 28,968 47,434 1,610 2,410 305,634 5,480 21,731 8,721 9,719 6,010 31,768 1,868 39,279 15,801 1,716 54,193 9,710 720,201 5,056 6,285 1,789 6,268 1,511 10,557 104,804 2005 Annual Payroll (000) $188,805 $71,936 $560,530 $1,731,489 $3,931,891 $110,965 $11,758,081 $3,397 $28,424 $529,458 $107,930 $866,813 $1,580,953 $42,037 $74,427 $12,156,968 $157,336 $657,681 $256,527 $258,607 $156,588 $1,537,086 $45,894 $1,323,176 $446,107 $39,794 $1,756,069 $305,615 $35,296,395 $119,804 $152,752 $50,156 $215,069 $37,737 $279,899 $3,651,603 Number of Establishments 750 432 1,513 3,371 5,824 371 16,324 61 168 1,819 708 2,125 4,214 185 504 19,258 667 1,756 819 831 482 1,859 283 2,601 1,149 258 3,632 850 41,812 590 634 234 460 210 910 6,211 Percent of Statewide Total Annual Private Sector Payroll Number of Employment (000) Establishments 0.18% 0.08% 0.57% 1.34% 2.87% 0.09% 8.51% 0.01% 0.03% 0.49% 0.10% 0.76% 1.25% 0.04% 0.06% 8.05% 0.14% 0.57% 0.23% 0.26% 0.16% 0.84% 0.05% 1.03% 0.42% 0.05% 1.43% 0.26% 18.97% 0.13% 0.17% 0.05% 0.17% 0.04% 0.28% 2.76% 0.13% 0.05% 0.38% 1.17% 2.65% 0.07% 7.92% 0.00% 0.02% 0.36% 0.07% 0.58% 1.06% 0.03% 0.05% 8.19% 0.11% 0.44% 0.17% 0.17% 0.11% 1.04% 0.03% 0.89% 0.30% 0.03% 1.18% 0.21% 23.78% 0.08% 0.10% 0.03% 0.14% 0.03% 0.19% 2.46% 0.32% 0.18% 0.64% 1.42% 2.45% 0.16% 6.87% 0.03% 0.07% 0.77% 0.30% 0.89% 1.77% 0.08% 0.21% 8.11% 0.28% 0.74% 0.34% 0.35% 0.20% 0.78% 0.12% 1.10% 0.48% 0.11% 1.53% 0.36% 17.60% 0.25% 0.27% 0.10% 0.19% 0.09% 0.38% 2.61% Table A-50 (continued) Private Sector Employment Presque Isle Roscommon Saginaw St. Clair St. Joseph Sanilac Schoolcraft Shiawassee Tuscola Van Buren Washtenaw Wayne Wexford 82 County Unknown Statewide 2005 Annual Payroll (000) Number of Establishments Percent of Statewide Total Annual Private Sector Payroll Number of Employment (000) Establishments 2,236 4,858 83,194 44,990 19,140 9,504 2,050 14,843 10,314 16,480 151,721 669,498 13,501 $58,135 $112,382 $2,737,374 $1,447,444 $654,609 $256,009 $59,419 $405,084 $277,175 $476,124 $6,611,288 $29,990,440 $388,215 398 677 4,827 3,538 1,278 986 265 1,330 1,024 1,472 8,337 34,812 914 0.06% 0.13% 2.19% 1.18% 0.50% 0.25% 0.05% 0.39% 0.27% 0.43% 4.00% 17.63% 0.36% 0.04% 0.08% 1.84% 0.97% 0.44% 0.17% 0.04% 0.27% 0.19% 0.32% 4.45% 20.20% 0.26% 0.17% 0.29% 2.03% 1.49% 0.54% 0.42% 0.11% 0.56% 0.43% 0.62% 3.51% 14.66% 0.38% 39,043 $916,817 223 1.03% 0.62% 0.09% 237,523 100.00% 100.00% 100.00% 3,796,876 Source: U.S. Census County Business Patterns 148,456,286