Addressing a nation ravaged by unemployment, President Franklin Delano
Roosevelt declared in his 1933 inaugural speech: "Our greatest task is to
put people to work."
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| | The Michigan Civilian Conservation Corp recruits roughly 200 young people to clear trails and clean state parks every year. |
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Five days after taking office, the new president called an emergency session
of Congress to obtain authorization for a massive jobs program. Millions of men
wielding shovels and spades were soon collecting government paychecks for sowing
seedlings and reinforcing riverbanks from Maine to California.
Economists have long since recognized that Roosevelt's "New Deal"
make-work schemes actually prolonged the Great Depression rather than relieved
it. But 70 years later, Michigan lawmakers seem not to have learned this lesson.
The Michigan Civilian Conservation Corps (MCCC) is a reincarnation of FDR's
federal "Tree Army." The MCCC employs some 200 recruits, ages 18 to
25, to spruce up state parks, clear trails and rake beaches. But were it not for
its environmental bent-and a bit of New Deal nostalgia, no doubt-the program
would not likely pass budgetary muster. The MCCC program should be privatized,
that is, removed from state stewardship.
The majority of MCCC recruits are fed and housed by the state while earning
$5.15 per hour on projects devised by the Department of Natural Resources (DNR).
(Paid leave is also available.) With a budget of $3.2 million for fiscal year
2002, the program cost per corps member runs a whopping $17,700-or nearly three
times what Michigan pays per pupil for public education.
Participants who log 1,700 hours also become eligible for a federal education
grant of $4,725 (or $2,362 for 900 hours of service). Enrollment suspends all
payments due on outstanding student loans, while accrued interest is covered in
full by taxpayers.
The scholarship benefit, in fact, appears to be the principal draw for corps
enrollment. Some 60 percent of participants cited the award as their primary
reason for enlistment. Thus, Michigan families who may be struggling with their
own college costs are subsidizing the eligibility of others for federal tuition
assistance.
Against the state's current billion-dollar deficit, the MCCC's budget may
seem paltry. But it is symptomatic of the unnecessary spending that makes
Michigan 16th-highest in the nation for tax burden per capita.
There is no shortage of government-sponsored employment assistance. The
Michigan Department of Career Development, in fact, spends $486 million annually
on a variety of other job training and placement services.
But environmental good works evidently rate premium treatment from Lansing.
This enables the DNR to avoid some of the budget discipline that otherwise
requires government agencies to prioritize spending. Says MCCC Administrator
Steve Philip: "The department has come to depend on this sort of program to
help get work done."
If, however, the DNR cannot properly fulfill its obligations absent a corps
of federally subsidized workers, perhaps some of the state's vast land holdings
ought to be returned to private stewardship. Such logic did not escape
then-Saginaw Rep. Fred Crawford, who defied Roosevelt in 1937 when the president
unsuccessfully sought permanent status for the federal CCC.
"I would rather have a boy of mine ... grow up in
private industry and agriculture than in any CCC camp," Crawford
proclaimed. "I believe the proper place is on American farms and in
American industries under private control."
Whether Michigan's Civilian Conservation Corps even fulfills its education
and training goals is uncertain. No follow-up of participants has ever been
undertaken.
The state has survived without the CCC. Budget constraints prompted Gov. John
Engler to veto all funding for the program in 1991. Four years later, however,
using proceeds from the sale of the state's accident fund, the Legislature
created a $20-million endowment to generate about a third of the CCC's current
budget.
But the state's so-called "rainy day fund"-once fed by tax cuts and
a strong economy-is fast disappearing. The governor's 2003 budget proposal
relies on a reduction of the fund to just $256 million from a high of $1.2
billion. In simple terms, Michigan cannot afford luxuries like the CCC.
Moreover, as the New Deal so tragically demonstrated, government's profligate
spending undermines the very economic growth that would otherwise create plenty
of private-sector jobs. It's long past time that lesson were heeded.
Diane Katz is director of science, environment, and technology policy at the
Mackinac Center for Public Policy.