Michigan will be among the poorest states for years, study says freep.com Detroit Free Press:
"Reliance on a shrinking automotive industry, the loss of 1 million jobs, outmoded taxes and lack of government reforms will make Michigan one of the nation's 10 poorest states for the foreseeable future, according to a study released Wednesday."
Michigan's state government -- trailing just Rhode Island and Arizona -- was amid nine states in danger of following California into an even deeper financial crisis, the report by the Pew Center on the States said.
"Michigan is adjusting to a new normal, where the state may just have to deal with a permanent set of pared-back services," said Susan Urahn, managing director for the Washington-based think tank.
Michigan suffers because of chronic deficits fed in part by generous tax exemptions to businesses and retirees and no tax on services, the report says. People 65 and older are the only segment of Michigan's population that's growing.
"In 20 years, we're going to look like Florida if the demographic trends continue, and no one's going to be paying taxes except those ... working," Mitch Bean of the House Fiscal Agency told researchers.
"Reliance on a shrinking automotive industry, the loss of 1 million jobs, outmoded taxes and lack of government reforms will make Michigan one of the nation's 10 poorest states for the foreseeable future, according to a study released Wednesday."
Michigan's state government -- trailing just Rhode Island and Arizona -- was amid nine states in danger of following California into an even deeper financial crisis, the report by the Pew Center on the States said.
"Michigan is adjusting to a new normal, where the state may just have to deal with a permanent set of pared-back services," said Susan Urahn, managing director for the Washington-based think tank.
Michigan suffers because of chronic deficits fed in part by generous tax exemptions to businesses and retirees and no tax on services, the report says. People 65 and older are the only segment of Michigan's population that's growing.
"In 20 years, we're going to look like Florida if the demographic trends continue, and no one's going to be paying taxes except those ... working," Mitch Bean of the House Fiscal Agency told researchers.