Detroit City Wire

While Michigan lawmakers continue to debate the state budget, business leaders are urging them to prioritize education funding that focuses on results. On August 13, the Detroit Regional Chamber and other business groups sent a letter to legislators in Lansing, calling for a budget that will help ensure employers have access to a skilled workforce needed for today’s economy.

Sandy K. Baruah, President and Chief Executive Officer of the Detroit Regional Chamber, highlighted these concerns in an opinion piece published by Crain’s Detroit Business. In his op-ed, Baruah stated: "As the state budget stalemate in Lansing continues, so does the opportunity."

He continued: "Lawmakers are taking their time, so they may as well do it right. For business leaders, that means we want to see the legislature invest more strategically in education to ensure employers have the workforce they need to compete in the high-tech, knowledge-based economy."

Baruah pointed out that despite Michigan ranking 18th in per-pupil spending nationally, student achievement remains low. "Despite ranking 18th in per-pupil spending, Michigan ranks near the bottom in the critical measures of fourth-grade reading and math – 44th and 34th, respectively," he wrote.

He added: "This fact should guide budget discussions: There is no longer any such thing as a prosperous state that is not also highly educated. The business community is growing increasingly concerned as Michigan continues to rank among the lowest in the nation in key education metrics."

Baruah noted that only about half of Michigan adults hold a skilled trades certificate or college degree while nearly 70% of jobs will require post-high school credentials by 2031. He called for a cultural shift toward valuing further education or training after high school.

"In 2000, Michigan ranked 18th in per capita income while ranking only 33rd in the percentage of adults with a college degree, largely thanks to its strong automotive and manufacturing base. In today’s global knowledge-based economy, that is a world that no longer exists. State per capita income rankings now align directly with college attainment. Michigan still ranks around 33rd in educational attainment, which now leads to a ranking of 39th in income," Baruah said.

Baruah cited data from Michigan Future showing declining college enrollment rates even though those with bachelor’s degrees tend to have much higher net worth than those with only high school diplomas. He referenced survey findings from Glengariff Group Inc., noting that just two out of five parents believe college is worth it for their children.

"Business leaders fear existing talent gaps will be exacerbated in the years ahead without strategic, targeted investment in critical programs and initiatives that have shown promise in strengthening the talent pipeline," he said.

The Chamber and allied organizations propose several steps: maintaining an educational attainment goal of at least 60% by 2030; focusing on improving foundational skills like third-grade reading and math; investing further into programs such as the Michigan Achievement Scholarship and Michigan Reconnect; expanding dual enrollment options; and supporting employer-led apprenticeship programs like Going PRO.

"To put it in stark terms, when it comes to educational outcomes, Michigan is in dire straits," Baruah wrote.

He concluded: "Without significant long-term educational investment now and a policy strategy that transcends election results, our state, businesses, and students will continue to fall further behind."