Detroitplanner, I disagree with your assertions.

The State of Michigan doesn't realize economic benefits from its college graduates because it's not an attractive place for young college graduates. Without concerning ourselves with retaining out-of-state students, Michigan can't even retain its own in-state students, who tend to flee to Chicago. One might start by asking why this is.

To argue that Ann Arbor doesn't receive any economic benefits from U of M is preposterous. Ann Arbor and the U "grew up" together--the two are inextricably intertwined. Not only is the U the largest employer in Ann Arbor and Washtenaw County, but numerous businesses depend on the student/faculty/staff population. Without the University of Michigan, there IS no Ann Arbor as we know it.

A strategy that might behoove planners, developers, and government officials in Southeast Michigan is to stop the ridiculous policy of building housing stock that only middle-aged people find attractive. Someone who grows up in Troy, for example, simply doesn't have the option of returning to Troy when he graduates from college unless he lives with his parents. Housing for all income levels is necessary to retain some semblance of stability and sustainability in the population.