Karoub Associates is pleased to provide this brief overview of Governor Granholm's seventh State of the State Address that was delivered last evening.  Although the complete text of her speech was forwarded to you yesterday prior to the address we would like to quickly summarize the highlights.  The address focused on goals of creating jobs, educating and training citizens, and protecting families.

To achieve these three core goals, the Governor called for:

• Streamlining government to significantly reduce its shape and size
• Maintaining our fiscal responsibility through additional budget cuts and reforms
• Freezing college tuition for the next academic year
• Helping citizens keep their homes through passage of the Home Foreclosure Prevention Act
• Freezing insurance rates for twelve months while the legislature works to enact comprehensive insurance reform
• Protecting access to health care during this time of economic crisis

The Governor also outlined a crutial new goal that would reduce Michigan's use of imported energy and it's reliance on fossil fuels for generating electricity by 45 percent by the year 2020.  This goal would be reached by increasing our use of renewable energy sources, energy efficiency, and other new technologies.

The Governor offered the following steps to assist the state in meeting this ambitious goal:

1. Allow citizens and businesses to become a renewable energy entrepreneur by selling electricity generated from solar and wind power back to the utility companies
2. Have the Public Service Commission put utility companies in the energy efficiency business by changing how rates are set
3. Creating a Michigan Energy Corps to put thousands of unemployed citizens back to work weatherizing homes, schools and other buildings
4. Start a program called Michigan Saves in conjunction with the utility companies, which would allow Michigan families and businesses to weatherize their homes and install Michigan-made energy efficiency technology with no up-front charges.

The Governor also stressed the opportunities that are being created for Michigan's existing businesses through the Buy Michigan First directive.  Since she issued an order creating a preference for Michigan firms, over 85 percent of tax dollars spent on state contracts have gone to Michigan businesses.  In the upcoming year the Governor will be expanding this directive by requiring other units of government, such as our cities, townships, and counties, as well as school districts, colleges and universities to adopt their own Buy Michigan First policies.

The Governor asked that its citizens, "Support Michigan. Select Michigan.  Buy Michigan.  Everything from Ford to Faygo.  From Bell's Beer to Blueberries.  While we may court new investment from outside our state, our first love is the businesses that have long called Michigan home."

Karoub Associates will forward additional information on Governor Granholm's new initiatives when it becomes available.