[Photo of Michael D. LaFaive]

Michael D. LaFaive

Director of the Morey Fiscal Policy Initiative

Michael LaFaive is director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy, where he has worked for more than 15 years.

He is the author or co-author of hundreds of essays, commentaries and blog posts and 12 studies on fiscal policy topics as varied as local and state privatization efforts, corporate welfare, school finance, state budgeting and cigarette taxes.

Among his studies is the Mackinac Center for Public Policy’s largest, a nearly 200-page state budget analysis that recommended more than 200 ideas for trimming some $2 billion from the state budget without cutting Medicaid or School Aid funding. Many ideas first presented by LaFaive in 2003 have been adopted or adapted by lawmakers in Lansing.

He is also the originator of the Center’s annual school privatization survey, which routinely garners a 100 percent response rates from districts. There is no database of competitive contracting like it in the United States. In addition to this product, LaFaive authored in 2001 a 26-page, full-color edition of Michigan Privatization Report specifically dedicated to fixing Detroit. The ideas in that publication are more relevant today than when it was published.

LaFaive is perhaps best known, however, for his cutting-edge, scholarly work examining state “economic development” programs. His studies and frequent commentaries on this topic have garnered him a national, if not international reputation as a respected government development critic and were probably influential in the decision to kill the Michigan Economic Growth Authority, the state’s high-profile corporate welfare program. 

LaFaive is typically interviewed more than 125 times a year by members of the press seeking comment on fiscal issues and remains a popular public speaker.

He has undergraduate and graduate degrees in economics from Central Michigan University.

LaFaive is married and resides in Midland, MI.

Survey: School Outsourcing Grows

According to Loock, the district went from paying a $100,000 subsidy to the food program to posting a profit of up to $25,000 after Chartwells took over. … more

Smoke and Terrors

Notes on Michigan’s Economy

MEGA: 10 Years With Little To Show

MEGA’s attempt to pick winners and losers is a poor substitute for improving the fundamentals of Michigan’s business climate. … more

Her Own Personal Autoworld (Viewpoint of Public Issues)

More than 50 years of economic development history in Michigan should be enough to convince us that the economic development emperor has no clothes. … more

MEGA Promises Versus MEGA Realities

Job Search

Revisiting Cobo

A New Beginning: Ending the Single Business Tax

Only eliminating the SBT and ensuring a bold net reduction in business taxes can begin to trump Michigan’s other handicaps in its economic competition with other states and nations. Even eliminating the SBT and cutting state spending dollar-for-dollar is not impossible; the Mackinac Center for Public Policy has detailed billions in potential state budget savings in areas like Medicaid, education and corrections. … more

Cobo Hall: It’s Time To Sell

Privatization for the Health of It

New Year’s Resolution: A Taxpayer Bill of Rights

At the end of fiscal 2000, Michigan budget officials informed lawmakers that the treasury had received $600 million more than had been budgeted. Rather than return it to taxpayers, state legislators went on a spending spree that included a new polar bear exhibit for the Detroit Zoo. … more

Capitalizing Trouble

Fiscal Policy in Michigan

Gaining Ground

“Milking the Cow” of State Development Departments (Viewpoint on Public Issues)

We cannot lose sight of the fact that selective favors discriminate against those who do not receive them and distract policymakers from the broader business-climate reforms that would benefit everybody. … more

The Record of “Economic Development” Policy in Michigan

Between 1995 and 2003, Michigan finished 51st among the 50 states and the District of Columbia in employment growth. … more

State Economic Development:

Are Targeted Incentives Constitutional?

High School Fiddlers’ Group Goes Private

Privatize the University of Michigan

Prison Privatization: A Growing National Trend

Private Companies Can Lock Up Jail Savings

Golf Privatization: Fieldstone Should Be Private

Sinful Sin Taxes

“Because the profits are so fantastic, we’re now seeing drug traffickers, other criminal organizations, and even terrorists involved in tobacco smuggling.” … more

Spurring Economic Growth and Jobs in Michigan

Privatize the University of Michigan (Viewpoint on Public Issues)

Tuition hikes could actually help those students who truly need help — by enabling the school to offer greater outright gift aid and tuition reductions to students from low-income families, as is often the practice at private universities. … more

Civil Society Is Working in Northville

Tax Shots Across the Budget Bow

More Privatization In Plymouth’s future?

Are Targeted Incentives Constitutional?

Privatization, Profits, and School Unions

Veterans' Homes: Privatization Could Mean Lower Costs, Better Service

Contract Out School Services Before Laying Off Teachers

The Pros and Cons of Zero-Based Budgeting

How to Make Cities “Cool”

Our state and its city governments would do better to focus on their more important functions (schools, roads and public safety, for example), which are often carried out in ways that are anything but cool. … more

State Audit Questions MEDC Job Claims

A New Baseball Statistic for Opening Day

Contract Out School Services Before Laying Off Teachers

The fact that poor-performing private companies have been fired — a point the MEA makes very clear — doesn’t prove that privatization doesn’t work. It proves that it does. … more

Government Subsidy Machine

Gov. Granholm: Profile in Budget Courage

With government at all levels consuming over 40 percent of national income — more than ever before in our nation’s history — now is the time for bold initiatives to re-shape what state government does and does not do. … more

'Privatize Federal Lands,' Says Newest Nobel Laureate

Friend of the Court Not Very Friendly

Privatizing Byzantium

Fairs to Remember

Place a Bet on Lottery Privatization

K-mart: Another MEGA Failure

Forthcoming study will recommend more than $1 billion in total savings

Mackinac Center report identifies $34 million in state agriculture department savings; $59 million in one-time revenue. … more

Granholm’s Resistance to Tax Hikes Is Sound Policy

Taxes and the Fight to Cut Them Defined Engler Years

Michael LaFaive on Engler's tax policy in Gongwer News Service … more

Friend of the Court Not Very Friendly (Viewpoint on Public Issues)

...when the same FOC office that failed to collect for Nancy Fox for a decade got wind of the private agency’s success, it mandated that Supportkids route the ex-husband’s payment through the FOC, at which time it would take its “processing fee.” … more

Privatization and Culture: Approaching the "Tipping Point"

Legislators Should Spawn Hatchery Privatization

As part of the state's attempt to maintain quality recreational fishing for Michigan citizens and tourists, it operates six fish hatcheries. Does the state need to own the facilities at which fish are reared? … more

Privatize MacMullan Conference Center

Does owning and running its own hotel/conference center rank as a legitimate function of the state? Probably not - especially when the facility isn't open to all taxpayers. … more

The Privatization Song

Now that songs are sung about public policy, we're near the tipping point. … more

The Federal "Freedom Car": Back to the Future

Based on a speech given by Michael LaFaive June 22, 2002, at Northwood University's annual "Freedom Seminar" in Midland. … more

Cigarette Taxes and Smuggling Interview on WKAR

Staff Economist Michael LaFaive is interviewed on cigarette taxes and smuggling. … more

Industrial Policy Interview on Michigan Public Radio

Mackinac Center for Public Policy Staff Economist Michael LaFaive talks about industrial policy in an interview with Michigan Public Radio. … more

Michigan State Industries Needs Competitive Contracting

Michigan State Industries is modeled loosely along the lines of Federal Prison Industries. Both programs employ cheap prison labor in the production of goods made for government bureaucracies. In Michigan, lawmakers should allow prisons to contract out their labor to private firms. … more

A Tale of Two Sporting Goods Stores

Why should Cabela's Retail Inc., a national sporting goods retailer, receive state subsidies to set up shop in Michigan when competitor Jay's Sporting Goods has been faithfully serving Michigan's outdoor enthusiasts since 1968 - without taking a dime of taxpayer money? … more

Make Michigan One Big Renaissance Zone

For two decades, governments around the country have been experimenting with so-called "enterprise zones," government-selected areas or projects that are singled out for special tax breaks and reductions. Michigan state government has selected 24 such areas, known as "renaissance zones." But if tax relief can boost economic development for a targeted area, why not lower taxes across the board for all areas of the state? … more

Mackinac Center Offers Comprehensive Policy Blueprint for New Administration, Legislature

The Mackinac Center for Public Policy has released "Keeping Michigan on Track: A Blueprint for a Freer, More Prosperous State," a comprehensive policy blueprint with dozens of specific ideas for lawmakers to consider in crafting state policy for the next term and beyond. … more

State Produces Useful Privatization Overview

The Legislative Research Division, a department of Michigan state government tasked with researching various policy issues, has produced a report highlighting a few of the Great Lakes State's more notable attempts at privatization. MPR reviews its findings. … more

Michigan Business Succeeds Without State Aid

In April 1995, the state created the Michigan Economic Growth Authority (MEGA), an agency empowered to issue tax credits to companies that promise to expand in or relocate to, Michigan. The evidence from seven years of MEGA operation suggests that Michigan has enjoyed economic development in spite of MEGA, not because of it. … more

A New Baseball Statistic for Opening Day

As the Detroit Tigers take to the field in their home opener Friday, we would like to recommend a new statistic-perhaps a new category of statistics-for baseball's number crunchers: the subsidies-to-victories ratio. … more