DETROIT – Business leaders have a lesser view of the state’s current business climate than they did a year ago, but are more likely to be expecting a turnaround in the next five years, according to the annual Detroit Regional Chamber Leadership Assessment Poll released Thursday.

The poll, conducted by John Bailey and Associates Public Relations as part of the Chamber’s annual Mackinac Policy Conference, also showed that education and job creation where the top priorities of the state’s business leaders.

Of the about 500 executives who responded to the survey, 47.6 percent ranked the state’s economy as poor, a 1 on a scale of 1 to 5. Another 44.7 percent ranked it only a 2. No one ranked it a 5.

That was a drop from the prior two years. Those having the bleakest view of the economy, ranking it a 1, were 30.5 percent in 2008 and 27.5 percent in 2007. The next step up, a 2 ranking, were 50 percent in 2008 and 54.5 percent in 2007.

But 70 percent said the economy would be better in five years, up from 66 percent in 2008 and down from 74 percent in 2007. The most substantial change was in those willing to hazard a prediction: everyone did this year, while 5 percent would not in 2008 and 15 percent would not in 2007.

As a place to do business, the outlook for the state was also getting bleaker. Only 3.4 percent ranked the state a 1, an excellent place to do business, down from 4 percent in 2008 and 6.2 percent in 2007. Those in the middle, giving the state a 3 ranking, also fell to 35.5 percent from 39 percent in 2008 and 52.2 percent in 2007. Those with the poorest view of the state grew to 13.2 percent from 5.7 percent in 2007 and those giving the next poorest grew to 33.5 percent from 17.7 percent in 2007.

Among the state budget priorities for turning the economy around, the executives said K-12 education was the top priority, followed by job creation/retention programs and higher education. Health care ranked number four and transportation number five.

On health care, the greatest concern was the high cost of insurance (51.8 percent), followed by the effect of the uninsured on the system (24 percent). And 47 percent said a federal carbon tax should be a source of funding for health care, compared to 22 percent who said it should not.

Among the choices for improving transportation – increase funding, change funding mechanisms, demand more efficiency and redirect funding to better technology – the majority (52.7 percent) said, “Yes.” Only 4.2 percent said none of those options would help and increased funding, at 5.3 percent, was the least popular of the individual options.

But while 58 percent supported increased funding, only 33.5 percent said taxes should be increased to provide that funding. 41.3 percent said they should not.

Among the findings: though conservatives have been among the most vocal opponents of the state’s film industry tax credit, 67.3 percent of the executives said it would help to diversify the economy. But 72.6 percent said alternative energy would provide diversity.

They also gave a plurality (41.3 percent) nod against the idea that government intervention will help General Motors Corporation and Chrysler Corporation. Only 36.7 percent said it would help.

And the winner for governor in 2010? Other with 33 percent. Of the actual people, Lt. Governor John Cherry led with 11 percent, followed by Attorney General Mike Cox, Wayne County Executive Robert Ficano and Secretary of State Terri Land with 10 percent each. Oakland County Sheriff Mike Bouchard had 9 percent.

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