Results from the 2010 Business Leadership Survey

LAMBERT, EDWARDS & ASSOCIATES JOHN BAILEY & ASSOCIATES Demographics • 208 online respondents (Detroit Regional Chamber members and conference participants) • 40% from Oakland County; 25% from Wayne County; 6% from Macomb Demographic Respondents County; 22% from outside SE area • 24% from businesses with 11 to 50 employees; 23% from businesses who employ more than 1000 employees Outside SE Michigan 22%

• 38% were from professional services; Oakland 40%

Business Climate

• On a scale of 1 to 5, where 1 is poor and 5 is excellent, 52% gave it a “2” Macomb and 35% gave it a “1.” (combined 85%). No one gave the region a “5,” and 6% only 1 person gave it a “4.” • In 2009, the combined response between “1” and “2” was 92%. • Fifth straight year that respondents gave the region “poor” or “below average” rating. The number does bounce slightly up from last year. • 70% stated their opinion of the economy has not changed in the past year. Sample of responses: - 2009 was the worst year in memory 2010 is starting to get better Wayne 25% - Very slow recovery underway in auto sector. - Has gotten worse compared to the rest of U.S. - State Government Gridlock - Feeling more optimistic with the beginnings of the Auto Industry turning around and general overall economy improvement nation wide

• 80% feel the city of Detroit is moving in a positive direction under Mayor Bing and new leadership; and only 3% said it was going in a negative direction. 73% feel the economy will be • 73% feel the economy will be “stronger” five years from now stronger five years from now. • 17% feel it will be the same • In 2009, 70% felt the economy will be “stronger” five years from now. • Optimism is rising, 70 percent felt it would be “stronger” in 2009, 66% answered “stronger” in 2008 (and 74% in 2007). 80% • Samples responses: feel the city of Detroit is - New Governor and new leadership moving in a positive direction - Mayor Bing seems to have the right approach to collaboration to take under Mayor Bing. Detroit forward. Foundations are encouraging economic improvement through collaboration, companies are starting to understand their role in a community not just their executives’ pockets, and groups like Land Policy Institute are helping to raise awareness about what Michigan needs to do to recover. These things can combine to improve our economy. - Wholesale reforms in state and local governments are needed to right size Michigan to the new economic reality. Until that is done there will be no recovery. Optimism - Hopefully there will be better leadership in Lansing, less taxes imposed on businesses and more fiscally conservative choices made. - We’re in a big hole and it will take longer than 5 years to get out is rising.

1 2010 Detroit Regional Chamber Leadership Assessment Poll Health Care • When asked what their top health care concern was, 38% chose “high cost,” followed by 20% at “impact of the uninsured on our health care system” and 52% “a culture that fails to promote prevention and wellness programs.” list the high cost • In 2009 - 52% chose “high cost,” followed by 24% who chose the “impact of of health care as their top the uninsured on our health care system.” health care concern. • Those two options were also the top two concerns in 2008 (45% and 24% respectively.) • When asked about their opinion of the new health care bill, 48% said the federal bill made “the wrong changes,” and 46% said it was “a good first step, but more needs to be done.” 48% think the federal health Transportation care reform bill makes the • On a scale of one to five, where one is very low and five is very high, 50% wrong changes. said they felt Michigan’s trade relationship with Canada was very important, followed by 23% who ranked it a “4.” • 72% felts that an upgraded and increased trade capacity is important to securing our trading position with Canada and NAFTA.

• In a follow up question to those that answered yes to an upgraded and 50% feel Michigan’s trade increased trade capacity, the breakdown of options included - relationship with Canada is - 43% wanted a bi-national DRIC project very important. - 17% wanted a second span of the existing Ambassador Bridge - 10% wanted both

2 2010 Detroit Regional Chamber Leadership Assessment Poll State Taxes and Budget Spending • 50% do not support Gov. Granholm’s proposal to expand the state’s sales tax to services, in exchange for lowering the sales tax from 6% to 5.5%; • 32% support the tax plan. • Sample of respondent’s explanations: - Increased taxes do not work 71% - State MUST have a solid fiscal basis; service activities will grow more feel passing new taxes for government spending should rapidly than other products. be the last priortiy. - We need to reduce spending - not increase taxes. - We must learn to make due with what reduced revenue the state has. Until those reforms happen no additional tax should be supported. - Prove it will work. MBT has proven to be a disaster under this administration.

• When given three priorities for a way to solve the state budget deficit, 84% felt “enacting cost-saving structural reform to make government more lean 84% and efficient” should be the first priority. feel the a lean and efficient • 61% felt “cutting additional programs supported by state government” should government structure should be the second priority. be the first priority. • 71% felt “passing new taxes to support existing government levels and growth of future government spending” should be the last priority.

When asked about the general election, who were the top three candidates?

Mike Bouchard 28% Andy Dillion 13%

Gubernatorial Candidates • 66% felt House Speaker Andy Dillon would secure the Democratic nomination for governor; 30% felt Lansing Mayor Virg Benero would secure the nomination. • 37% felt Congressman would secure the Republican nomination for governor; followed by 30% for Oakland County Sheriff Mike Bouchard; 18% for businessman Rick Synder; 13% for Attorney General Mike Cox; and 1% for Sen. . Pete Hoekstra • When asked about the general election in November, and asked to choose from 27% all candidates, Oakland County Sherriff Mike Bouchard led slightly with 28%, Congressman Pete Hoekstra with 27% and Speaker Andy Dillon with 13%.

3 2010 Detroit Regional Chamber Leadership Assessment Poll Budget Priorities • K-12 education and investments in job creation and growth topped the list of state programs business leaders were asked to prioritize. How important do you • The complete results, in order of “priority,” was as follows: find cross-state business - K-12 Education collaborations? - Job Creation/Growth - Higher Education Not Important 1% - Health Care Not Sure 7% - Transportation Somewhat - Natural Resources/Environment Unimportant 6% - Tourism - Corrections

• In terms of rebuilding the state economy, how important do you find cross- state business collaborations? - Very important – 54% - Somewhat important – 32% - Somewhat unimportant – 6% - Not important – 1%

- Not sure/don’t know – 7% Somewhat Important 32% Very Important 32% • What do you consider is the number one priority for turning Michigan’s economy around? - Increasing job creation – 42% - Reducing existing taxes on Michigan’s businesses – 31% - Reducing unemployment – 11% - Education reforms and funding – 10% - Invest in workforce development and training – 5% What is the number one priority for turning Michigan’s - Increasing state taxes to provide a better safety net for social services – 1% economy around? • In regards to education, do you support mayoral control over the Detroit

Public Schools or should control remain with the Detroit Public Schools Invest in Workforce 5% emergency financial manager? Increase State Tax 1% - Mayoral Control – 29% Reduce - Emergency Financial Manager – 61% Unemployment 11% - Other – 10% Education Some responses: Reforms 10% • Citizens of Detroit should have a vote • State Superintendant Flanagan • Neither, I don’t believe that emergency financial manager is doing an adequate job (anyone with his unbridled power could do the same thing). I am not confident the mayor can manage the city and therefore believe it to be unwise to advocate mayoral control over DPS. I am also concerned this question isn’t being asked about all of Michigan’s struggling school districts. Reduce Increase Job • Control by the Governor Business Tax 31% Creation 42% • There should be a collaboration between the two

4 2010 Detroit Regional Chamber Leadership Assessment Poll Who should be making academic decisions for Detroit Public Schools?

60%

51% 50%

40%

30%

20% 20% 15% 14%

10% Emergency Financial Manager School Board Other Mayor 0%

Budget Priorities cont. • Who should be making academic decisions for Detroit Public Schools? - Mayor – 14% - Emergency Financial Manager - 51% - School board – 20% - Other – 15% What sector do you think will see the largest growth Some responses: in the next 25 years? • Not sure that Mr Bobb has the credentials to lead the academic side. Certainly not the school board. That’s already been proven. What are the requirements for the role of an academic leader? Does anyone Tourism 2% even know? I would say that they have to have the autonomy and Agriculture 2% control of Bobb yet the strong proven academic leadership ability. I Alternative Automotive 8% trust Bing to have that person fall under his leadership. Energy 35% • Anyone other than the school board • Michigan State School Board • Emergency financial manager under the authority of the Mayor • A council of education advisers appointed by the Mayor.

• Which of the following sectors do you think will see the largest growth in the next 25 years? - Alternative Energy – 35% - Transportation, logistics & supply chain management – 7% - Defense/homeland security – 10% - Life sciences/bio technology – 36% Life Science 36% Defense 10% - Automotive/Advanced Manufacturing – 8% - Tourism – 2% Transportation 7% - Agriculture – 2%

5 2010 Detroit Regional Chamber Leadership Assessment Poll