LANSING – For the second time in less than a month, Gov. Jennifer Granholm will lose a key member of her cabinet with Treasurer Jay Rising stepping down to become executive vice president and chief financial officer for the Detroit Medical Center.

Gongwer News Service reported Thursday that Rising’s departure at the end of February follows the change at the Department of Labor and Economic Growth where David Hollister is leaving and will be replaced by Paula Cunningham. Granholm administration officials confirmed the plans by Mr. Rising late Thursday.

Rising, in an interview, said it was a difficult decision to leave with several issues on his agenda but that he was presented with a “fascinating opportunity” to work in the health care finance area. He said he first ignored a request in late 2005 by DMC President Michael Duggan to consider the job “because I couldn’t be happier anywhere else.”

Rising was one of Granholm’s first appointees, and she said in a statement, relayed by her spokesperson.

“I am indebted to him for the many talents he brought to the administration. His advice and hard work on educational, economic, and financial matters has been appreciated more than he will ever know,” Granholm said.

Granholm press secretary Liz Boyd said although there is a lot of unfinished business, “he put us on sound financial footing and we’re moving forward.” She said the governor tried to get Mr. Rising to change his mind, and will now move quickly to find a replacement “as difficult as that may be. There are a number of candidates under consideration.”

Rising received high praise from the legislative Republican leadership, a group not prone in an election year to praise Granholm.

Senate Majority Leader Ken Sikkema (R-Wyoming) called him, “one of the most honorable, intelligent and trustworthy individuals I have ever had the opportunity to work with in state government. I have always found Jay to be forthright in his discussions with me and sincere in his desire to do the right thing. I wish him well in his new position at the Detroit Medical Center. I am truly sorry to see him leave; the Detroit Medical Center’s gain is the state’s loss.”

And House Speaker Craig DeRoche (R-Novi) said, “With all the economic struggles Michigan is facing right now, this is tough time to lose someone of the caliber and with the knowledge and experience of Jay Rising. His service to state government will be missed, and I wish him the very best in his new position.”

In the interview with Gongwer, Rising said his first inclination was that he would return to the law when he left office. But he was not planning to leave the treasurer’s post for another five years, which includes what he expected would be Granholm’s re-election.

“It was an opportunity I knew wouldn’t be there six months, 12 months, a year from now,” he said. “It was one of the hardest things I’ve ever done.” He said money was not a factor in his decision, which he relayed to Granholm in January.

It was awkward leaving at this time because of all the projects the state has before it. In addition to the 401(k) plan Granholm announced as part of her State of the State address and her push for changes in the Michigan Merit Award scholarship program, there are the different elements of the 21st Century Jobs proposals now underway including securitization of tobacco settlement money.And there remains the effort to restructure the state’s business tax system, he said.

Rising took the lead on developing the proposal that Granholm unveiled in January 2005, taking a year to study the tax, interview businesses, and develop proposals. While many core elements of the proposal failed to get enacted, the state did approve a tax credit for manufacturers, which Ms. Granholm signed into law in December. The lower overall rate cut and higher personal property tax credit designed to help manufacturers was abandoned because of opposition to the offsetting tax increases to insurers and financial services sector.

He also said he is proud the state has maintained its AA bond rating despite its sagging economy. In fact, he said, treasurers in other states have asked how Michigan has maintained an AA rating with all its difficult situation. In his statement, he listed other accomplishments such as streamlining tax processing and enhancing college loan programs.

Rising had worked as the state’s deputy treasurer under Bob Bowman during the administration former Governor James Blanchard from 1983 to 1991. After he was appointed, Bowman said in an interview that in many ways Mr. Rising was the actual treasurer during the 1980s.

After leaving the state he practiced law for Miller, Canfield, Paddock & Stone before being tapped by Granholm.

The DMC consists of seven hospitals in Detroit – most along John R. Avenue – including Children’s Hospital of Michigan, Detroit Receiving Hospital, Hutzel Women’s Hospital and Harper University Hospital. The DMC also includes the Karmanos Cancer Center along with a number of other major health related centers. It is affiliated with the Wayne State University medical school.

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