Covisint Headquarters Location Study: Oakland County, Michigan
The State of Wisconsin, as part of an effort to ensure economic growth, retained Anderson Economic Group to research the business climate through a survey of business leaders, and to prepare a report on the survey results and strategy recommendations.
AEG worked with Mitchell Research & Communications, an East Lansing, Michigan market research firm, to develop and implement a research strategy to collect qualitative and quantitative data. This included surveying nearly 400 business leaders, and collecting demographic, market, policy, and business operation data. The data was then analyzed, and strategies formulated to help the State maintain and attract employers.
The final report was presented to state policymakers, including Governor McCallum, for use in the development of a statewide plan.
The City of Cincinnati, founded in 1788, is one of the leading cities in the Midwest, and is home to 320,000 people in the City itself, and over 1.6 million people in the metropolitan area. Cincinnati was a pioneer in incorporating planning in the government, and adopts a biennial operating budget of about $731 million, plus a capital budget of about $251 million. The main sources of funds are income and property taxes.
To ensure the City Council and Finance Department have the best available information on current and likely future tax revenue, the City retained Anderson Economic Group to provide forecasts of income and property revenue, as well as state-funded local government revenue, for the next six years. AEG evaluated the economy of Ohio and its relationship to the US economy, and the local economy, demography, geography, and fiscal structure. AEG then used a sophisticated statistical methodology to determine how economic fluctuations in the past had affected the most important revenue sources for Cincinnati.
AEG developed a dynamic forecasting model for the City, including an independent assessment of likely future economic conditions. Assuming stable fiscal policies, the resulting general fund revenues from major sources. Using this model, and professional judgement on the current state of the economy, AEG forecasted tax base and tax revenue for the City, based on reasonable policy and economic assumptions, for the succeeding six years.
AEG prepared a lengthy report, which was presented to the City Finance Department and to the City Council in a public hearing. The report included a discussion of the methodology, assumptions, and revenue forecasts.
Public School Per-Pupil Funding Disparity Analysis
Equity in Education Foundation – Michigan
The Equity in Education Foundation was established by the Word of Faith International Christian Center to address the inequality of per-pupil funding between Michigan’s public school districts.
Anderson Economic Group helped the Foundation understand the constitutional argument against funding inequality, and organize legal and public relations campaigns. As part of this process, AEG issued a report analyzing the funding characteristics of all public and charter school districts within the state. The analysis included a comparison between Michigan’s “hold-harmless” school districts and non hold-harmless districts, a look at the change in disparity since the passage of Proposal A in 1994, an assessment of the relationship between different types of funding and student performance, and a geo-spatial analysis of funding information through the use of our Geographic Information System (GIS) facility.
Property Tax Analysis
Federal and State Non-Profit Regulatory Advice
PG&E Generating – Michigan
PG&E Generating is a national energy provider that owns and operates merchant generating plants across the country.
Anderson Economic Group assisted PG&E by conducting an economic assessment of a proposed development site. The assessment was used by PG&E, as well as the local community, to secure a tax free Renaissance Zone designation for the site. Furthermore, we provided a sophisticated analysis of the likely property tax burden on the $500 million project. We created a simulation model to project tax burdens under various scenarios, and identified specific strategies to minimize tax costs. We also identified tax levies that were outside legal limits.
Finally, we assisted PG&E in identifying the proper structure for a $1 million contribution to aid the citizens of the local area, given state and federal laws regarding tax-exempt organizations, and eligibility for state tax credits.
The Cities of Centerline, Eastpointe, Roseville, St. Clair Shores, and Warren, Michigan are located just north of Detroit, and are among the largest cities in the metro Detroit region. The attorneys for the Cities retained Anderson Economic Group after an insurance company filed suit against the Cities.
A statistical survey was introduced into evidence by the plaintiff to demonstrate the behavior of the residents of the communities in years previous to the filing of the lawsuit. Anderson Economic Group provided expert analysis, a report, and testimony in deposition on the defects in the methodology used for the survey. The analysis included extensive review of the proper statistical methodology used in survey research, identification of sources and forms of bias, and a monte-carlo demonstration model showing how the proper methodology differed from that followed by the creator of the submitted survey.
In one of the largest judgments of its kind, the Cities were awarded $207 million in damages and compound interest in January of 2002.