MI tax revenues plummeting, but not new businesses

House Fiscal Agency director Mitch Bean warns that Michigan is facing the prospect of more cities in receivership and school districts running out of money as state and
local tax revenues plummet in the year ahead.

But economic development guru David Hollister says that Michigan's economy is bubbling with young entrepreneurs starting up information technology companies and ignoring problems at the state Capitol.

Hollister told a forum Thursday that the state's future is "not all doom and gloom" despite 15.1% unemployment and falling tax revenues.

Michigan State University Charles Ballard said Michigan could solve some of its budget woes by asking its wealthier citizens to pay higher income taxes. The state's wealthiest 5% now have nearly as much income as the bottom 50%.