Thursday, January 25, 2007

GR opens contracts to 'disadvantaged'



Some good news out of Grand Rapids...



GRAND RAPIDS -- In the post-Proposal 2 world, where city contracts no longer can favor minorities and women, there is now the Disadvantaged Business Enterprise.



That's the designation replacing minority-owned and women-owned businesses in the city's new policy for granting construction contracts more than $10,000.



The new term could include businesses that are minority-owned, women-owned or owned by white males, according to Laurie Parks, an administrator in the city's Equal Opportunity Office.



The new policy aims to put the city in compliance with Proposal 2, the affirmative action ban approved by Michigan voters last November.



The DBE designation was developed by state and federal transportation agencies and the U.S. Small Business Association, Parks said.



It could include businesses that are "socially or economically" disadvantaged due to their size, their lack of credit opportunities or their owners' social standing in the community, said Alex Thomas, an administrator in the Equal Opportunity Office.



Wonder if colleges could do something along that line.



Some not-so-good news out of Grand Rapids; we might not have any money to be doling out any contracts for anything.



GRAND RAPIDS -- Despite the construction projects downtown, the city of Grand Rapids is facing hard times, city commissioners were told at their annual planning retreat Tuesday.



City Manager Kurt Kimball told them rising health-care costs for city employees and retirees will force them to cut $5.7 million in spending during the next fiscal year.



"If you thought our budget cutting was done, it's not," said Kimball, who has presented commissioners with budget cuts totaling $50 million and eliminated 263 jobs over the past five years. "There's more cutting to do."



Sigh.



This caught my eye though- a presentation that needs to be taken statewide. Can we get these guys on TV?



The day-long session began with a gloomy forecast from Lou Glazer, president of Michigan Future Inc., a think tank aimed at improving Michigan's economy.



Attracting smart people with talent is the key to a city's future, and Grand Rapids is lagging behind, Glazer said. The Grand Rapids metropolitan area and Michigan are falling behind in the number of residents with four-year college degrees -- a key indicator of economic vitality, he said.



"Smart people tend to be mobile. Where they go, robust economic activity will follow," Glazer said. "Yet, this is a state where parents still tell their kids that post-secondary training isn't essential to their kids' well-being."



Glazer blamed much of Michigan's and Grand Rapids' fiscal crisis on the mistaken belief that cutting taxes will revive the state economy.



As proof, he pointed to low-tax states, such as Arkansas, whose economies have faltered, while states with high taxes, such as Minnesota, have been more prosperous.



"The key to prosperity is talent, not lower taxes," he said. "The notion that if you cut taxes you grow your economy doesn't correlate."



Nice to know my city commission is hearing things like this.