Mike Bouchard For Governor

For Immediate Release: January 6, 2010

Bouchard unveils ‘Michigan Construction Jobs Now’ program to put skilled tradesmen to work, energize economy, encourage investment in Michigan

Lansing, Michigan – Mike Bouchard, Republican candidate for governor, today unveiled a strategy that will energize Michigan’s lagging economy and spur investment in the state through a tax incentive for home and business owners.

Bouchard announced his “Michigan Construction Jobs Now” program at a Lansing news conference. He was joined by Chris Fisher, president of the Associated Builders and Contractors of Michigan (ABC); Dawn Crandall, political affairs director of the Michigan Association of Home Builders (MAHB); and state Sen. Alan Sanborn.

“Michigan’s skilled tradesman literally built our state,” Bouchard said. “Given the chance, they can help rebuild our economy. My program gives Michigan a much-needed economic jump-start by fueling a demand for builders, contractors and suppliers. It also will lead to long-term investments in Michigan by encouraging homeowners and job providers to enhance the value of their properties now. Working men and women are tired of empty promises from Lansing. It’s time to think creatively and act decisively. If we provide the opportunities, Michigan’s builders, contractors and suppliers will get the job done.”

Under Michigan’s current property tax system, the increased value of a home or business remodeling project automatically becomes part of the property’s taxable value. In this economy with sinking property values, it hinders growth and keeps most contractors, construction workers and residential home builders idle. Michigan building permits have gone down over 70 percent since 2005. In Southeast Michigan, permits have fallen an astounding 84 percent since 2005. According to the Associated Builders and Contractors, roughly one-third of construction trades workers are unemployed. This sector lost 25,500 jobs in 2008.

Bouchard’s “Michigan Construction Jobs Now” initiative will:
•Create a 12-month window of opportunity in which home and business owners can complete additions and remodeling projects so that they can be held harmless from property tax increases until the property is sold.
•Cause an economic “ripple effect” by generating a demand throughout the building trades sector. Businesses such as electricians, lumber yards, heating and cooling specialists, painters, plumbers and roofers will see more opportunities for employment.
•Aid home and business owners looking to use more energy efficient building materials and technology.
•Help local governments with revenue generated from a spike in building permits and inspection fees.
•Allow state government to collect revenue from the sales tax on building materials as well as the income tax from the jobs created.

Bouchard’s plan earned praise from builders, contractors and leading legislators.

“The best way to stimulate the economy is to remove barriers to growth and job creation,” said Fisher. “With nearly one in every three Michigan construction workers unemployed, we welcome any proposals that will help retain and create jobs. This plan can play an important role in getting people back to work.”

“Michigan’s home builders are a mainstay of our economy,” Crandall said. “Revitalizing this critical component of the jobs sector will have far-reaching effects that will help the state get back on its feet. Our home builders are the best in the nation. This plan will ignite a demand for their services so they can help Michigan families achieve the American dream of home ownership.”

Sanborn, R-Richmond, pledged to introduce legislation based on Bouchard’s plan because “Michigan’s families can’t wait.”

“Michigan families are hurting,” Sanborn said. “This proposal is an excellent way to invigorate our economy so that our men and women can get back to work. Mike Bouchard’s plan shows the type of innovative thinking that Michigan needs. I will work with my legislative colleagues and other stakeholders to make it a reality.”

Bouchard emphasized that “Michigan Construction Jobs Now” is just one component of his overall economic strategy.

“There is no magic bullet that will immediately turn Michigan around,” Bouchard said. “We have a lot of work to do. But providing our construction industry partners with the right opportunities will give Michigan a positive shot in the arm. Working together, we will see construction vehicles in the front of Michigan homes and businesses, not moving trucks driving away.”

Visit bouchardforgovernor.com for more information and Bouchard’s initiatives to fix Lansing and get Michigan back to work.

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Paid for by the Mike Bouchard for Governor
P.O. Box 1433
Royal Oak, MI 48068