To combat Michigan’s stagnating population growth, a commission initiated by Governor Gretchen Whitmer is exploring the idea of financial incentives to attract new residents. This concept has already seen varied applications in several U.S. communities and states. However, the efficacy of these initiatives has been mixed, as detailed in a comprehensive analysis by Bridge Michigan. The underlying challenge is attracting a significant number of new residents without relying on taxpayer funds.
Michigan, despite being the tenth most populous state, has experienced slow growth since 1990, ranking 49th, only surpassing West Virginia. This slow pace has led to job shortages and other socioeconomic challenges. In response, Governor Whitmer established a commission in May to devise strategies for retaining and attracting residents.
The Growing Michigan Together Council, in its 40-page draft report released on November 30, proposed a diverse array of strategies, including education system overhauls and infrastructure improvements. A notable suggestion, buried on page 26, recommends that Michigan “implement novel programs and incentives” to attract talent, particularly for knowledge-based jobs. The final recommendations from this report are expected by December 15.
Governor Whitmer, in October, highlighted the importance of reversing population trends through targeted marketing, novel incentives, and robust policies. This included a $20 million advertising campaign aimed at young college graduates in other states. The administration hopes that attracting young, educated families will subsequently draw businesses to Michigan.
Efforts to make Michigan communities more appealing to young families include developing amenities like walkable neighborhoods and bike trails. Similar strategies have contributed to rapid growth in areas around Indianapolis and Fort Wayne, Indiana.
The concept of pay-to-move programs has gained traction in the U.S., although it remains a rarity in Michigan. The MakeMyMove website lists 191 communities offering incentives, ranging from museum tickets to cash up to $12,000, targeting remote workers and business owners. In contrast, Michigan currently has only two active incentive programs in Jackson and Muskegon County, offering more modest benefits.
The only state currently offering a broad incentive program is West Virginia, which pays $12,000 to new residents who work remotely or own businesses that can operate fully online. If Michigan were to implement a similar program, attracting 5,000 workers and their families could cost around $60 million.
The effectiveness of such programs is still debatable. For instance, Rochester, N.Y., offers up to $19,000 in incentives for remote workers but has attracted only 65 families out of 4,000 applicants in 19 months, falling short of its goals. Similarly, Topeka, Kansas, ended its $10,000 incentive program after two years due to limited success. These examples highlight the challenges Michigan faces in implementing a successful population growth strategy.
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