[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 since 1995.

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 has been interviewed more than 1,300 times by the media in the last ten years. He 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.

Michigan's Budget Problems Bigger Than You Think

Early indications are that our new governor is acting boldly and wisely in his attempt to right size Michigan’s fiscal ship. That’s good news, and he should be applauded, in part due to the fact that he will need the moral support. Why? The budget is in worse shape than even he and members of the media have probably fathomed. I’m not the first budget analyst to notice this, but I may be the first to say it out loud.  … more

Motor City Finance: Then and Now

Ten years ago this month the Mackinac Center mailed a special, 28-page, full-color, Detroit-specific edition of Michigan Privatization Report to editors across Michigan. We had recently completed a comprehensive review of the city’s budget, and were deeply concerned by what it revealed.  … more

We're No. 2!

In still-bad-but-not-worst-possible news, for 2010 — the first time since 2005 — another state (New Jersey) has beat out Michigan in the annual United Van Lines ranking of state outbound migration. … more

State Should Reform PA 72 of 1990

Michigan’s local governments face fiscal challenges in 2011. The state already has a pretty good policy in dealing with its local units as their finances are stressed, but this policy should be improved in a few ways so that local governments continue to be solvent as taxable property values fall and spending pressures increase. … more

Saginaw Fails to Repeal Prevailing Wage

Saginaw County officials have quietly buried a previously scheduled vote to repeal its “prevailing wage” ordinance for construction projects costing more than $50,000. Prevailing wage laws prohibit granting a government contract to the lowest bidder unless the company pays above-market, “union-scale” wages. … more

Fieldstone Golf Course Should Be Sold

In a time of increasing pressure on local budgets, municipal managers should reach first for the lowest hanging fruit on the savings-tree: government golf courses. Let the slicing begin. … more

Tear Down This 'Film Industry' Facade

Ending the handouts would send a signal that this state is done playing games with ephemeral and failed "economic development" programs, and instead will focus on a real economic growth agenda, including across-the-board tax relief, labor law changes and other regulatory reforms. … more

Pontiac Contracts With Oakland County Sheriff for Police Services

By contracting with the county to provide police services, the city of Pontiac will get a step closer to fiscal solvency. … more

State of Embarrassment

Citing companies receiving targeted tax breaks and subsidies has gone from an "economic development" victory lap to a series of embarrassing blunders. … more

Republican Vows — Seven Lean Years Later

A PR stunt a few years back shows how "economic development" programs are really political development programs. … more