LANSING – Ed Montgomery, charged by the White House to help families and communities adjust to the years-long contraction of the auto industry, concluded meetings with Gov. Jennifer Granholm and other officials on Wednesday with a pledge to tap into federal stimulus funds, regular budget lines and new sources to couple with existing state programs to help diversify the state economy.

Montgomery, director of Recovery for Auto Communities and Workers for the Obama administration, met for several hours in Lansing with the governor and members of her economic development team where they reviewed the scope of the problems and what the state is doing to diversify the economy.

He later also met with Detroit Mayor Ken Cockrel Jr. as part of what he said is a commitment to help the state diversify its economy and provide assistance to communities most affected by the downturn in car company fortunes.

“What we are going to do is engage in process with the governor, with local officials, to invest in new jobs, to figure out strategies to attract new jobs and to put that process in place,” Montgomery said.

Granholm said the appointment of Montgomery two days ago to deal with the problems is a hopeful sign, and the first time she has detected a commitment from Washington to help the state in such a way since she has been governor.

“The point we wanted to make is that Michigan is uniquely positioned,” Granholm said about the impact of the long recession and auto contraction on the state. “We are so much more affected by the shift than any other state.”

She had said earlier on a call-in program on state public radio stations that by the end of the year, the state will have lost 760,000 jobs since 2001, or more than triple the job loss in Louisiana following Hurricane Katrina.

Montgomery, who recounted his own family background in Michigan and an earlier teaching stint at Michigan State University, said, “I get it, and if I don’t get it, I’m going to get it over the head.”

He said President Barack Obama has made clear his commitment to help the state deal with problems that have been underway for eight years, with the understanding that providing retraining, health care and a more diversified economy is not going to happen overnight. “I’m not a magic wand,” he said.

He did not offer many specifics, but said resources such as Department of Energy funds to development battery technology in the state and funding for transportation and light rail are areas that would be examined.

Granholm described the hours-long meeting as an introductory session “to a long-term strategy to see where we can dovetail with federal resources.”

Montgomery, who said he would be returning to the state, said his next step would be to convene federal agencies to respond to the needs that were laid out by Michigan officials. “We recognize the need to start acting and that’s our commitment.”

Republican Party Chair Ron Weiser said he was pleased with the federal commitment, but added, “I am concerned that both Mr. Montgomery and the president’s automotive task force have no prior experience working directly in the auto industry. In addition, to his appointees, I hope the president will consider the opinions of those who have the necessary expertise and experience in the auto industry before making any more decisions that will greatly impact our state.”

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