Michigan's recovery is going to be a long haul

The report notes that Michigan will have lost more than a million jobs by the end of this decade, more than a third of those this year, and 268,000 of them in the auto aion power leveling industry. The state's 15.3 percent unemployment rate is highest in the nation.

"Michigan's recovery is going to be a long haul," the report says. "Even if the state were to immediately begin growing at the rapid rates of the 1990s, it would be 2025 or 2030 before it replaced all the jobs it lost this decade."

Urahn said many states, including Michigan, face even tougher aion account challenges in 2011. Their revenues will continue to fall, already high jobless rates will climb and federal stimulus money will evaporate.

She cited as an example that Gov. Jennifer Granholm has notified state departments to prepare for 20 percent cuts next year on top of 10 percent reductions this year. Also suffering major cutbacks were college scholarships, school aid, revenue sharing to municipalities and Medicaid health care for the poor and seniors.

"The state of Michigan still has to learn all the things that being a poor state means," said Donald Grimes, a senior aion money research specialist at the University of Michigan told Pew researchers. He said he expects Michigan to be among the 10 poorest states when the federal Bureau of Economic Analysis releases its 2009 report.

The report's findings will be no surprise to Granholm, who has frequently said Michigan's economy will not rebound soon and the state's most severe aion money budget woes are still ahead. She could not be reached for comment Wednesday.

Lieutenant Gov. John Cherry acknowledges in the report that the state's tax scheme is out of step with the modern economy.

"We have a revenue base that was designed for an industrial economy in the 1960s, and today the economic mix has changed dramatically."