Background: Michigan must first measure itself against other states. But which states? We must measure against the states that are growing their manufacturing sector, those with a similar economic base, and those with a similar per capita income. While our goals must be to grow and improve income, when measuring the cost of government we must be able to live within our means and that is largely measured by the state’s ability to generate revenue.

• Benchmark Government Performance
  Measuring all aspects of state government performance (from permit issuance times, employee to permit ratios, and the number of regulations) and comparing them monthly to performance in other states will help identify not only government efficiencies but will lead to improvements in Michigan’s business climate.
• Benchmark Business Climate
  The state must measure and set performance goals for the factors that manufacturers and other business sectors use to compare states and nations for investment site selection. At the core are business taxes, personal property tax, real property tax, business income, gross receipts tax, corporate licensing taxes, employment taxes, regulatory fees and other state and local taxes. Other factors include transportation infrastructure, energy costs, real estate costs, support for R&D and talent attraction and access to capital.
• Benchmark Structural Costs of State and Local Government
  Comparing to other states with similar per capita incomes helps identify and target cost reductions across all of state and local government. Labor costs are significant to the overall cost of government so we must benchmark state employee pay and benefits. This is also true for school employees.

MMA Position: MMA calls on both the administration and the Legislature to establish a system of measures and benchmarks to compare its performance to competitor states and nations.