Effectiveness of Michigan's Key Business Tax Incentives, March 2010

Effective business tax incentive programs are imperative when a state is in economic decline, when its business tax burdens are considered uncompetitive for many industries, or when state budgets are strained. Michigan suffers from all three of these conditions. It can afford to pursue only the most effective tax incentive programs.

Unfortunately, there exists no comprehensive assessment of the effectiveness of Michigan’s tax incentive programs. The purpose of this report is to fill much of that gap, first by creating a systematic inventory of Michigan’s tax abatement programs, and second by evaluating the available evidence of their effectiveness in attracting and retaining businesses.

The Michigan Education Association and National Education Association commissioned this report to improve the quality of the debate on business tax incentives. The report was completed by the independent consulting firm of Anderson Economic Group, LLC, which has considerable expertise in business tax policy, tax incentives, and state tax burden comparisons.

Michigan's Roads: The Cost of Doing Nothing and the Rewards of Bold Action

Constructing and maintaining basic infrastructure is one of the core functions of government. Investment in infrastructure, including roads and bridges, is important for enabling commerce and for the convenience, safety, and recreation of citizens.

The Michigan Chamber of Commerce commissioned this report to inform public discussion of the proper level of funding for building and maintaining Michigan’s road infrastructure. This report describes Michigan’s trunkline road system and the Michigan Transportation Fund (MTF); provides a credible, conservative estimate of the impact of several levels of funding on the state economy; discusses the impact that road infrastructure has on the safety and expenditures of Michigan households; and discusses the importance of our state trunkline roads to key Michigan industries. 

Detroit Tigers 2008 Net Economic Impact from Attendance

Detroit Tigers 2008 Net Economic Impact from Attendance

For a complete copy of the paper, please order by clicking here.

 

Likely Economic Impact to Ireland from the 2006 Ryder Cup

Watkins, O’Neill

Analysis of the 2006 Ryder Cup’s likely economic impact on the country of Ireland, prepared jointly by Anderson Economic Group of East Lansing, Michigan, and Anarach Consulting, or Dublin, Ireland.

The Likely Economic Impact of a Chicago 2016 Summer Olympics

Anderson Economic Group, LLC, is an economic consulting firm with offices in Chicago, Illinois; East Lansing, Michigan; and Los Angeles, California. We have prepared this independent analysis of the likely economic impact of the proposed 2016 Summer Olympics in Chicago, and are making it publicly available before the IOC announcement date of October 2, 2009.

We are preparing this study to provide other Chicago-area businesses, as well as taxpayers and policymakers, a realistic assessment of the actual costs and benefits of hosting the games. Our analysis of past major events, and our past evaluations of the value of sports-related and other businesses, gives us a unique position to carefully examine this question.

Boosters of large sporting events and stadium construction have sometimes claimed economic benefits that later proved far too good to be true. However, our analyses of both sports franchises, and cities in which sporting teams oper-ate, show that some events can provide economic benefits that far exceed the costs. Given the scale of the Olympics, and the exposure it would give to Chi-cago on a world stage, it is certainly worth carefully considering the costs, risks, and benefits.

We have used a rigorous methodology to estimate the likelly economic impact of events like the 2016 Summer Olympics.

Presentation: Fiscal Stability of Collier County

 

Fiscal Stability Assessment: Collier County, Florida

economic & financial

The URC's Support for Advanced Manufacturing in Michigan

Manufacturing is embedded in our state’s history, and in our national consciousness, as the engine of economic growth for much of the 20th century. Michigan was the “arsenal of democracy” in World War II, where Henry Ford’s revolutionary wages brought immigrants from numerous countries, and where companies like General Motors, Chrysler, and Ford grew into global enterprises.

Michigan is also the place that, far too often, is saddled with a reputation for being very good at something that is no longer relevant, modern, or particularly useful in the 21st century. In particular, we suffer from the misguided notion that manufacturing is not a “high tech” or high-value-added enterprise. This report provides, in great detail, hard evidence that manufacturing is alive and vital in Michigan today, and that much of the manufacturing done in Michigan today is high-tech, high-productivity advanced manufacturing.

Indeed, there are numerous places in the world where low-tech manufacturing can take place, often where labor and other costs are much lower than in the United States. Manufacturers in Michigan, therefore, must produce high-quality products using high-productivity techniques, and advanced technologies. As we note in this report, advanced manufacturing in Michigan is:

  • An important industry that employs over 10% of the state’s workforce;
  • A productive industry where over half of the employment is in firms whose productivity is growing faster than the average U.S. manufacturing firm;
  • A highly-skilled industry where over one-third of the research and testing jobs in the Midwest are located. 

 

An Auto Dealer's Guide to Arbitration

This guide is for dealers that are considering participating in the arbitration process established by H.R. 3288, which was signed in to law by President Obama on December 16, 2009. It reviews the timeline and arbitration process, and the criteria that will be considered by the arbitrator. It concludes with some practical steps dealers should take as they consider whether to participate in the arbitration process.

Land Use and Infrastructure Investments by Olympic Host Cities

 

On Friday, October 2nd, the International Olympic Committee (IOC) will select a host city for the 2016 Summer Games. The City of Chicago has submitted an extensive and thoughtful bid book that proposes a compact games centered on the lakefront and embracing the diversity of the city. Many cities would welcome the opportunity to achieve global recognition, and while the Olympics accelerate that opportunity, not every city is well-equipped to host the Games.  Chicago has that necessary aptitude to be a host city and can take advantage of the resulting benefits.  However, to gain the optimum benefit from the 2016 Summer Olympics, Chicago must use the Games as an investment catalyst that will spearhead long-term improvements in infrastructure, new developments, and city amenities and services.

 

Chicago 2016’s bid book includes a thorough budget for hosting the Games.  However, it does not elaborate on costs, or revenue sources, associated with improvements to municipal infrastructure, such as roadways, airports, public transportation, public spaces, and telecommunications.  These projects are simply said to occur as part of the city’s “natural growth.” Simply following the path of natural growth, however, would result on a significant missed opportunity to fully leverage the Olympic Games.

 

In this paper we address the issue of long-term land-use and infrastructure projects (legacy projects) that Olympic host cities commonly undertake, and the potential economic benefit of these legacy projects. This builds upon another recently released paper on the topic of the Olympics and their economic impacts—The Likely Economic Impact of a Chicago 2016 Summer Olympics—that was authored by one of this paper’s co-authors. That paper focused solely on the economic impacts that the games, as presented in Chicago 2016’s bid book, would likely have on the city and county. This paper goes a step further and discusses strategies for maximizing public investments so that projects commissioned prior to the Olympics create long-running economic value within the city.