City-owned Johnson Street Industrial Park will see new state office complex on eight-acre site.

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Granholm Budget Deal May Put More People to Work in Bay City

Delta, SVSU Buildings May Also See Improvements if the State Economy Rises

March 24, 2005
By: Dave Rogers

Cut the red ink state budget but spend on 10,000 construction jobs to boost the economy without raising taxes.

That's Gov. Jennifer Granholm's plan, agreed to by Republican lawmakers last week in Lansing.

The plan could boost Bay City: the size of a planned technologically-advanced "green" state office complex on Johnson Street in Bay City may be doubled, bringing in more than 200 state DNR, DEQ and DLEG employees.

The state complex, to be located on eight acres at 1515 S. Johnson St., near the Bay Metro Transit Authority garage, may end up with over 80,000 square feet of floor space. It would create a new bustling center of employment downtown and could spur more office growth in the area.

The governor's planmay also bolster building construction at Delta College and Saginaw Valley State University.

City Manager Robert V. Belleman, Deputy City Manager/City Clerk Dana Muscott and several City Commissioners heard the message last week at the Michigan Municipal League's 39th Annual Legislative Conference.

One major theme was cooperation between municipalities and grant opportunities.

Mr. Belleman reported that MML staff and lobbyists are working at insuring that the State'sbudget does not reduce revenue sharing for municipalities.

MML staff has reported that the Treasury is looking to streamline the tax collection process by creation of uniform dates and penalties.

The Governor's Jobs Today Initiative creates nearly 10,000 jobs by investing nearly $800 million in state bonds to accelerate nursing home improvements, environmental and school upgrade projects over the next three years.

The initiative will also give communities and developers tools to create affordable housing, improve nursing homes, and upgrade schools.

The overall agreement includes:

• $200 million for renovation, maintenance and projects on campuses of universities and community colleges in fiscal year 2005;

• $38 million for environmental clean-up that will spur economic development and revitalization of communities; and

• $70 million for state infrastructure preservation that will reduce the overall cost of maintaining state buildings by improving the efficiency of those buildings.

In addition, $8 million will be used to clean up blight in Detroit in preparation for the 2006 Super Bowl.

The plan cuts spending by nearly $300 million to help solve the state's $380 million shortfall. More cash to meet the deficit will come from the State's Budget Stabilization Fund and escheats (tax reverted property) enforcement.

The agreement also prevents the closure of the youth correctional facility in Baldwin for the remainder of the fiscal year and maintains funding for Michigan State University's Cooperative Extension Service and Agricultural Experiment Station.###