DETROIT On the eve of the Detroit Regional Chambers Leadership Policy Conference on Mackinac Island, a survey commissioned by the nations largest chamber shows the majority of Michigan business leaders contend health care costs are so out of control they may cut benefits; while a majority of C level executives surveyed say Michigans economy will be stronger five years from now.

The survey of 205 senior-level executives gleaned from members of the Detroit Regional Chamber also shows:

Strong support for greater cooperation among Southeast Michigan governments

Strong support for the urban renewal goals of the Granholm Administrations Cool Cities Initiative

Low grades for Metro Detroits transportation network

Optimism about employers ability to find skilled workers in Southeast Michigan

Good grades for the regions health care system

Progress on race relations, but no credit given to politicians

Challenges for Southeast Michigan employers

But spiraling health care costs were of most concern to the executives surveyed by John Bailey & Associates from May 4-21. The surveys margin of error is plus or minus 7 percent.

Of the executives surveyed, 74.2 percent rank employee health insurance as unaffordable, including 25.4 percent who rank it as very unaffordable. When asked whether they would consider reducing employee health benefits as a result of high costs, 74 percent said they would. However, when asked if the overall cost of health insurance is causing them to delay the hiring of new workers, 77 percent said it is not causing a delay.

Executives also remain optimistic about the states economy, despite the outsourcing of thousands of manufacturing jobs outside the United States. 54.1 percent of respondents say that Michigans economy is weaker than five years ago, but 61.8 percent say it will be stronger five years from now.

Urban renewal goals also received high marks. 94.6 percent of respondents believe that redevelopment of Michigans urban centers is an important public policy issue for state and local governments.

Among the potential areas for state funding under Granholms Cool Cities initiative, respondents agreed most with funding for physical infrastructure improvements (80.5 percent) land acquisition for green space or public use (72.7 percent) and recreational developments (69.8 percent.)