Oakland County Is A "Job Creating Juggernaut"

Oakland County is located just to the northwest of Wayne County, home of Detroit, in southeastern Michigan. As the city of Detroit goes through the largest city bankruptcy in U.S. history, Oakland County is flourishing, attracting more residents, and adapting to the modern economy.

Bloomberg Businessweek recently wrote an article highlighting that Detroit is a lost cause but Oakland County is here to stay. Benzinga spoke to long-time Oakland County Executive L. Brooks Patterson about the shifting dynamic from the city to the suburbs. In 2004, Patterson launched the Emerging Sectors Program, an economic diversification program that aimed to attract new businesses to Oakland County to diversify away from the auto industry, on which Oakland County depended for years. Chrysler even has its headquarters in Auburn Hills as does the North American division of Volkswagen.

Job Creation Strong

Since the inception of the program, private investors have injected over $2.5 billion into the program, said Patterson, with jobs being created in finance, healthcare, and information technology. "One in every five jobs created is in healthcare while IT is fast growing, as is finance."

"It's all high tech and that's the important thing," he added, "because it provides a foothold for knowledge-based growth." Patterson even went so far as to call Oakland County a "jobs creating juggernaut."

From the onset of the financial crisis to the bottom of the Great Recession, Oakland County lost about 170 thousand jobs, according to Patterson. However, his programs have started to recoup the losses and the Emerging Sectors Program has generated over 29,000 jobs nearly $64 million in additional tax revenues.

"We're getting there," he said, "thanks to the Emerging Sectors Program." However, he noted that technology gains, specifically at automotive companies, have had the negative consequence of leading to more efficient manufacturing processes, which have led to lower labor needs.

AAA Rating Strong

Patterson also took little time to mention that Oakland County is one of just a few municipalities across the nation to maintain a AAA bond rating. He noted that Oakland County "is not tied to Detroit" directly and has its own self-sustaining economy. In fact, as Detroit's population slid over 60 percent from over 1.8 million to nearly 700 thousand since 1950, Oakland County's population has nearly tripled to 1.2 million people.

"We have $400 million in cash and a AAA rating," said Patterson. However, he did note that the connotation of being geographically close to Detroit has made it more difficult to borrow money. "When I travel internationally and I tell people that I'm from Oakland County, Michigan, they ask me 'where is that' and I have to reply that we're next to Detroit," he continued. Many foreigners cringe at that anecdote.

Despite his best attempts, he knows that Oakland County's AAA rating is dependent on Detroit turning around and the stigma and sentiment of being near Detroit changing across the country and around the world. "A few years ago, Wall Street analysts called and said that our AAA rating was at risk due to our perceived Detroit risk," he recounted. "That night, I picked up the phone and called [Detroit Mayor] Dave Bing."

$21 Million In Annual Aid

Oakland County is not standing by idly and letting its neighbor collapse. Patterson recognizes that the Detroit Institute of the Arts, with its over $2.5 billion in art, is a major tourist attraction for both residents of Oakland County and non-residents traveling to the area. Those visiting family in the suburbs often travel downtown to view this great landmark in the heart of midtown Detroit.

"We have been funneling about $21 Million per year to fund the DIA," said Patterson. The funding came from a self-imposed tax hike that the residents of Oakland County passed with a strong majority, showing the local commitment to defending this prized asset. Patterson did emphasize that this funding is by no means a "blank check."

Earlier this month, following the news that Detroit had formally filed for bankruptcy, the DIA issued the following statement: "Like so many with deep roots in this city, the Detroit Institute of Arts (DIA) is disappointed that the Emergency Manager determined it was necessary to file for bankruptcy. As a municipal bankruptcy of this size is unprecedented, the DIA will continue to carefully monitor the situation, fully confident that the emergency manager, the governor and the courts will act in the best interest of the City, the public and the museum."

"We remain committed to our position that the Detroit Institute of Arts and the City of Detroit hold the DIA's collection in trust for the public and we stand by our charge to preserve and protect the cultural heritage of all Michigan residents."

Michigan Is Coming Back

As a state, Michigan is rebounding thanks to new policies of both forward-looking local leaders such as Patterson as well as Governor Rick Snyder. The state's budget is improving and jobs are returning to the state in new industries. "We are becoming more competitive as a state," said Patterson, "and Oakland County is on the right course."