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  • 1. www.michiganfuture.org 1

2. Our goalA high prosperityMichigan2 3. What state do we want to emulate?StatePer capita Unemployment PovertyEducationincome (09) (10) rate (09) attainment (09)Oklahoma $35,8377.1 % 16.2 %22.73 %Minnesota$41,8547.3 % 11.0 %31.50 %Michigan $34,315 12.5%16.2 %24.59 %U.S. $39,6359.6 % 14.3 %27.90 % 3 4. 10 Most Prosperous StatesConnecticut New YorkNew JerseyVirginiaMassachusetts AlaskaWyoming WashingtonMarylandNew Hampshire4 5. Looking at income more closely Components of Per Capita Income Private Earnings Government Earnings Dividends, Interest, Rent Transfer Payments Social Insurance Taxes & ResidentAdjustments Goal is to be high in Private Earnings 5 6. Breaking down incomeNatural OtherDividends,Soc. Ins. Tax PersonalPrivate ResourcesPrivateGovtInterest, Transfer & Residence Income EarningsEarnings Earnings EarningsRentPayments AdjustmentU.S. $39,635 $23,427$669 $22,758$5,233 $7,143$6,984 $3,153Indiana$34,022 $20,555$467 $20,089$3,800 $4,968$6,831 $2,133Michigan $34,315 $19,785$240 $19,545$4,060 $5,499$7,737 $2,766Minnesota $41,854 $26,668 $639 $26,029$4,658 $7,614$6,891 $3,977Key numbers in our analysis6 7. Best states in private income Non-NatResources Govt. Earnings & Top 10EarningShare of PI Transfers Share of PIConnecticut$33,07059.8%24.9%Massachusetts$32,95766.4%25.6%New York $29,47963.4%31.2%New Jersey $28,55457.1%26.1%Minnesota$26,02962.2%27.6%Delaware $25,79265.1%31.8%Illinois $25,78961.6%26.8%New Hampshire$25,54659.9%24.3%Colorado $25,51560.9%25.8%California $24,79558.5%28.3%United States $22,758 57.4%30.8%Michigan$19,545 57.0%34.3%7 8. Worst states in private incomeNon-Nat ResourcesGov Earnings &Bottom 10 EarningShare of PI Transfers Share of PIOklahoma$17,11447.8%35.9%Alabama $17,09451.2%38.1%Kentucky$17,09253.0%39.9%Montana $16,66347.8%35.4%South Carolina$16,59951.1%38.6%Idaho $16,39751.5%32.3%Arkansas$16,30850.5%37.6%New Mexico$15,36746.2%41.2%West Virginia $14,45045.0%42.6%Mississippi $14,01246.1%42.3%United States$22,758 57.4%30.8%Michigan $19,545 57.0%34.3% 8 9. Traits of prosperous states High proportion of wages from knowledgeindustries High proportion of college grads Big metro with higher per cap income than state Largest city in that metro has high proportion ofcollege grads9 10. What is the knowledge economy? publicgoods5% informationleisure other administration 5% services 10%trade trans 3% utilities7%financialactivitieshealth 11% 21% prof and business education services 21% 17% 10 11. Michigans income rank alignedwith our college attainment rankPer Cap Income% 4 year degree 10 15 18 20 34 2536 3037 352000 2009 4011 12. 10 Most Prosperous Regions San Jose/San Fran. Seattle Washington/Balt. Houston NY/Newark San Diego Hartford Denver/Boulder Boston/Worchester Philadelphia12 13. Major metros smarterEducation attainment by metro population35% 33%30%30% 25% 26%25% 24%23%20%15%10%Under .2 m .2-.5 m .5-1 m 1-1.6 m 1.6-3.5 m 3.5 m andup13 14. Major metros richer Per capita income by metro population$50,000$45,667$45,000$39,490$40,000 $37,470$35,304 $35,734$35,000 $33,304$30,000$25,000$20,000under .2 m .2-.5 m .5-1 m 1-1.6 m 1.6-3.5 m 3.5 m andup14 15. Big metros winners in private earningsNumber ofPrivate EarningsGov Earn &Size of communitycommunitiesPer CapitaTransfers Per Cap3.0 million or more17$28,767$11,7121.0 million to 3.0million38 $22,684 $11,931500,000 to 1.0 million 45 $19,577 $12,250200,000 to 500,000 88 $18,800 $13,055under 200,000 122 $17,203 $13,586 Resources are flowing from largest metros to smaller communities 15 16. Metro Detroit vs.Metro Minneapolis City Per capEducation Share of wages fromincome attainmentknowledge industryMinneapolis 11 713Detroit 41 39 312009 Rank among 55 metros 1 millionpopulation or more 16 17. Metro Grand Rapids vs. Metro Minneapolis City Per cap Education Share of wages fromincomeattainmentknowledge industryMinneapolis 11713Grand 54 4454Rapids2009 Rank among 55 metros 1 millionpopulation or more17 18. Metro Lansing vs. Metro MadisonCity Per cap% bachelors Share of wages from incomedegree or more knowledge industriesMadison $ 42,45638.90 %63.61 %Lansing $ 33,27329.09 %65.33 %2009 data 18 19. High education industriesgrowing in U.S. 5.83%6.00%Employment change 2001-094.00%2.00% $45,558$59,9260.00%-2.00% -0.79%All industry-4.00% Low education$33,383-6.00% High education-5.79% (2009 average wage)19 20. High education industries doing best in Michigan 0.00%Employment change 2001-09$54,964 -5.00% -4.97%-10.00%$43,645-15.00% All industry -15.66%Low education-20.00%$34,646High education-22.59%-25.00% (2009 average wage) 20 21. Index value (100 in Dec. 2007) 100 105 8085 9095 75 2007.12 2008.01 2008.02 2008.03 2008.04 2008.05 2008.06 2008.07 2008.08 2008.092008.1 2008.11 U.S. High Ed 2008.12 2009.01 2009.02 2009.03 2009.04 2009.05 U.S. Low Ed 2009.06 2009.07 2009.08 2009.092009.1 2009.11 Date Mich High Ed 2009.12 2010.01 2010.02 2010.03 2010.04 2010.05 2010.06 2010.07 Mich Low Ed 2010.08 2010.09Employment in High and Low Education Attainment2010.1 Industries, Michigan and the U.S., 2007.12 to 2011.05 2010.11 2010.12 2011.01 2011.02 Recession accelerates trends 2011.03 2011.0421 2011.05 22. Our conclusion:The places with the greatest concentration of talent win!22 23. Young talent isaggregating inurban regionsYounger college gradsBlue = With childrenRed = Without children 24. Our recommendationsAlign Michigan culture with the flat world realitiesCreate places where talent wants to liveEnsure success of vibrant higher ed systemReinvent K-12 education to align with new realitiesDevelop new public and more importantly private sector leaders30 25. Bottom lineWe must get youngerand better educated or we will get poorer31 26. For more information about MichiganFuture, our reports or what the media issaying, please visit our Web site at:www.MichiganFuture.org 32