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What's Wrong With Michigan's No-Fault Automobile Insurance

A PDF copy of this study is available.

On Oct. 1, 1973, Michigan joined a growing number of states in adopting a “no-fault” automobile insurance law, which has remained in tack ever since. This policy brief outlines the variety of problems plaguing Michigan's auto insurance laws and explains why these issues are leading to the most expensive car insurance premiums in the nation.

The brief also describes several reform ideas for how to fix Michigan's no-fault insurance system. These reforms would maintain the no-fault approach to car insurance, but would put downward pressure on premiums, a benefit that would be enjoyed by all Michigan drivers.

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Five Options for Addressing ‘Transition Costs’ When Closing the MPSERS Pension Plan

Michigan Public School Employee Retirement Plans
in Need of Reform

This study considers the supposed ‘transition costs’ that would be effected by a state switch from a defined-benefit to defined-contribution retirement system. In it, the “transition costs” are found to be nonbinding and discretionary. In addition, the study offers the state a series of reforms that would diffuse such costs, as well as consideration for the long-term fiscal improvements that would arise from payment of the pension’s unfunded liabilities. more

Loar v. Michigan Department of Human Services Brief

This booklet contains the Mackinac Center Legal Foundation’s final legal filing in a nationally known case involving the illegal unionization of Michigan’s home-based day care business owners and providers as government employees. Wright argued the case in the Michigan courts on behalf of Sherry Loar, Michelle Berry and Paulette Silverson, who each own home-based day care businesses.

The Mackinac Center Legal Foundation sued to end the DHS' illegal diversion of so-called "union dues" from state subsidy checks received by home-based day care providers who watch children from low-income families. The "dues" were funneled to a government-employee union that purports to represent more than 40,000 of Michigan's home-based day care providers, who are actually private business owners and independent contractors.

The case was ruled moot by the Michigan Supreme Court after the DHS ceased to collect the dues and the DHS director stated that these home-based day care providers are not public employees.

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101 Recommendations to Revitalize Michigan

(Editor's note: These recommendations were originally posted in January 2009. They were updated in January 2011, and a Top 10 list was added. You may view PDFs of the previous versions: the Second Edition, with an introduction by Mackinac Center President Joseph G. Lehman, and the First Edition.)

Michigan is blessed with a wealth of the human and natural resources integral to building vibrant commerce and vigorous communities in the 21st century. At the moment, however, counterproductive public policies have made it harder for our industries to compete nationally and internationally and have reduced our state’s attractiveness to investors and entrepreneurs.

In addition, Michigan is not immune to the gradual erosion of equity and basic human freedom that accompanies a steady growth in the power and scope of government. Related to this, our government’s ability to properly perform many critical functions, including education, has been jeopardized by policymakers’ attempts to do too many things. This lack of focus has even led to confusion among policymakers over whether government exists to serve the people or vice versa.

There’s a lot of work to do to reverse this, but there’s good news. Once growth- and freedom-friendly policies are in place, recovery is likely to occur much more quickly than most people imagine.

For policymakers and voters serious about restoring freedom and economic vitality in the Great Lakes State, the Mackinac Center presents the following 101 recommendations.

This report is a compendium of work authored by Mackinac Center policy analysts and compiled by Senior Legislative Analyst Jack McHugh. The brief recommendations inevitably omit some nuance and detail. These are provided more fully in the online articles cited with each recommendation.

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A Survey of Michigan Parents Who Use School Choice

This report highlights the results of a survey conducted of Michigan parents who exercise some form of public school choice for their children. Among the diverse group of 837 parents from across the state who were interviewed, substantial majorities gave high marks to their chosen schools, said the experience boosted their expectations of their children’s future success and would likely recommend choice options to other parents. Respondents also said that information they receive from other parents influences their school choice decisions, in addition to published school performance data and in-person visits. Survey results further revealed that most parents highly value academics in making their decision, though safety and discipline are leading considerations as well. more

Michigan School Privatization Survey 2017

Click here to view the PDF of the full study.

This is the 15th edition of the Mackinac Center's annual school privatization survey. We ask every school district in the state if they outsource one of the three main noninstructional services — custodial, transportation and food services. The results from this year's survey show that 71.5 percent of school districts contract out for at least one of these services.

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Michigan School Privatization Survey 2010

Privatization of support services has been a method that Michigan school districts have used for several years to lower costs. More than ever before, Michigan school districts are privatizing the three main support services they offer — food, custodial and transportation. Our annual survey finds that 48.8 percent of Michigan school districts are contracting out for these services. This is an 8 percent increase over 2009.

The largest impetus for contracting is cost savings. The survey found that first-year contracts alone are expected to save districts $16.7 million cumulatively.

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Howell Education Association v. Howell Board of Education

Just what constitutes a public record? Are documents created by a public official on a public computer system “public records” under Michigan's Freedom of Information Act? In this "friend of the court" brief, Mackinac Senior Legal Analyst Patrick J. Wright argues the answer is “yes” and warns that a failure to readily disclose such documents would seriously undermine FOIA's value.

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Michigan School Privatization Survey 2009

With Michigan’s public school districts facing a decline in per-pupil funding, more districts are contracting out for at least one of the three major school support services — food, custodial and transportation — than ever before. This year’s survey of school districts found that 44.6 percent of all Michigan school districts contract out for at least one of these services, a 5.6 percent increase over 2008. This year, new contracts alone are expected to save $6.9 million.

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The Michigan Economic Development Corporation: A Review and Analysis

Video by Kathy Hoesktra, Mackinac Center communications specialist

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Leveling the Playing Field

What Michigan Public School Academy Leaders Need to Know About Union Organizing

A guide to labor law for charter school staff. This 105-page book explains how Michigan's labor law works and in particular how and why unions are formed. The book also gives advice on how charter schools can maintain good relations between teachers and administrators.

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Michigan School Privatization Survey 2008

Privatization of school support services is a time-tested means for lowering educational costs. The three major services that school districts in Michigan contract out for are food, custodial and transportation. The Mackinac Center for Public Policy's survey of privatization is the longest running and most comprehensive source of school support service data in the nation. more

Cigarette Taxes and Smuggling

A Statistical Analysis and Historical Review

In this study, the authors consider cigarette smuggling from two angles. First, they employ a statistical model to estimate the degree to which cigarette smuggling occurs in 47 of the 48 contiguous U.S. states. Second, they review the historical experiences of three states — Michigan, New Jersey and California — known to have problems with cigarette smuggling. The author's findings suggest that state policymakers should reassess the value of cigarette taxes as a revenue and public health tool.

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Proposal to Raise Fees on Television Providers is Unnecessary, Likely to Increase Cable Rates

The State should not allow municipal governments to increase public, education and government channel fees when there is no evidence of additional demand.

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Mackinac Center Amicus Curiae Brief in In re Complaint of Rovas Against SBC Michigan

The Mackinac Center’s brief urges the Michigan Supreme Court to hold that the judiciary need not defer to administrative agencies’ interpretations of ambiguous statutes. Alternatively, because Michigan courts (unlike federal courts) have not determined that agency rules created through formal adjudication are equivalent to rules created through notice-and-comment rulemaking, the Court could hold simply that there is no judicial deference to rules created through adjudication, leaving aside the question of deference to notice-and-comment rules.

The Michigan Supreme Court decided the case in July 2008. The justices held that the rulings of state agencies should not receive deference from the courts and that the Michigan judiciary hence plays an integral role in reviewing the legality of agency actions. The ruling places a direct check on the power of state agencies to interpret and to act upon laws passed by the Michigan Legislature.

The decision is a landmark in Michigan jurisprudence, particularly since it diverges from federal jurisprudence, which grants almost unlimited power to federal agencies in implementing laws passed by Congress. The court's ruling was substantially in agreement with the arguments presented in this brief.

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A Teacher Quality Primer

For Michigan School Officials, State Policymakers, Media and Residents

While it is true that Michigan students learn a variety of skills in their time at school, perhaps the most important charge of public schools, beyond providing a safe and healthy environment, is to ensure that students are learning "the three R’s." Unfortunately, the achievement levels of Michigan public school students raise doubts about the quality of public education in the state. This volume has been written to assist local and state policymakers who want to initiate and support teacher quality reforms to improve Michigan's primary and secondary schools. more

Hart Enterprises: A Wetland Case Study

This study analyzes a dispute between Hart Enterprises Inc., a medical device manufacturer located north of Grand Rapids, and the Michigan Department of Environmental Quality. The department alleges that Hart Enterprises’ property contains a nearly one-acre wetland — an area that lies in the way of the company’s proposed expansion of its parking lot. Because of the DEQ’s ruling, the department expects the company to request a wetland permit — request that might be denied, or that might be granted only with significant conditions attached.

Readers may view a supplemental video of Russ Harding interviewing Alan Taylor of Hart Enterprisesmore

Proposals to Further Regulate Michigan’s Electricity Market: An Assessment

More than a dozen bills are pending in the Michigan Legislature to expand regulation of the electricity industry and to impose new environmental requirements on energy production and sales. As a group, these legislative proposals assume the necessity of government intervention in the production and distribution of energy. This report details the drawbacks for consumers and the economy of substituting political forces for market forces in electricity service. more

Mackinac Center Amicus Curiae Brief in Michigan Department of Transportation v. Tomkins

On November 16, 2007, the Mackinac Center for Public Policy filed a brief of amicus curiae with the Michigan Supreme Court in the case of Michigan Department of Transportation v Tomkins. The legal dispute involves the amount of compensation a property owner should receive from state government when the state uses eminent domain to take part of the owner’s property. Specifically, the Michigan Supreme Court asked whether a state law that limits the property owner’s compensation to so-called "special-effect" damages violates the common understanding of the "just compensation" guaranteed in eminent domain cases by the Michigan Constitution. more

The Opportunities and Limitations of Biomonitoring

Remarkable advances in analytical chemistry now make it possible to measure minute levels of both natural and synthetic compounds in human tissue and body fluids. This “biomonitoring” allows researchers to determine more precisely than ever the degree to which individuals have been exposed to specific chemicals in the environment, and how exposures change over time. Consequently, federal and state officials increasingly regard biomonitoring as a potential new underpinning of environmental and public health regulations. more

Choice Leadership

Popular literature is full of praises for “the common man,” but as these two essays by Ben Stafford illustrate, it’s usually the uncommon men and women who make big things happen. Virginia Walden Ford and Alberta C. Wilson are too modest and focused on others to tell you themselves, but Ben makes it clear that many inner-city children and parents have benefited from the uncommonness of these two women. They are courageous, forward-thinking, can-do citizens. They understand the value of a good education and a strong character, and they have been willing to stand up for those values at no small expense to themselves. more

Replacing Michigan’s New Taxes With Budget Reductions: Curing $1.358 Billion in Overspending With 55 Specific Recommendations

The Mackinac Center for Public Policy has regularly recommended specific state spending reductions to balance the state’s budget and improve Michigan’s public policy. The following list shows how the state could reduce spending immediately to help balance the state budget if policymakers chose to forgo the projected $1.358 billion in fiscal 2008 revenue from the recent state income tax hike and the new sales tax on certain services. more

The Edmonton Public Schools Story

Internationally Renowned Superintendent Angus McBeath Chronicles His District’s Successes and Failures

Faced with budget battles, declining enrollments and tense contract negotiations, Michigan school leaders could seize upon the advice of a superintendent and educator who has faced the very same issues for 30 years and who now consults with school districts. more

A Model Right-to-Work Amendment to the Michigan Constitution

This policy brief discusses several foundational legal concepts and sets forth model language for a legally sound right-to-work amendment to the Michigan Constitution. more

The Economic Effects of Right-to-Work Laws: 2007

Many states have given workers complete discretion to decline membership in, and financial support of, a union that they individually oppose. Enacting a right-to-work law abolishes agency fees and allows workers themselves to decide if a union deserves their financial support. more

The Effects of Michigan’s Prevailing Wage Law

Michigan’s prevailing wage law adds unnecessary costs to construction projects at taxpayers’ expense. more

Survey 2007: More Growth in School Support Service Privatization

Privatization is a time-tested management tool used by governments around the world. It can take many forms, but competitive contracting is the most prevalent in the United States whether in municipalities or within the realm of public education. In some regards, Michigan is a national leader in competitive contracting in education; in other areas it is a laggard. more

Michigan Higher Education: Facts and Fiction

The observed shrinkage in state appropriations over the first half of the decade was actually a positive development: one that dampened, albeit modestly, the real relative economic decline of the state. Moreover, it calls into question a growth strategy based on expansion of higher education. Indeed, other results included in the econometric estimation suggest that a better growth strategy would be to put the entire Michigan state government on a diet in order to finance a reduction in the overall tax burden. While higher education expenditures are not growth-inducing, the evidence shows that tax reductions are.
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Road Funding: Time for a Change

A Collective Bargaining Primer

For Michigan School Board Members

Collective bargaining determines not only the quality and responsiveness of a school district’s teachers and support personnel, but the amount of money remaining to school board members to benefit the children under their care. Thus, while labor negotiations may sometimes feel remote from the process of helping children learn in the classroom, the results of this bargaining often affect a school board’s ability to implement educational policies.

This book is designed to assist school board members in understanding the basic principles and laws of collective bargaining, including some of the major substantive and procedural challenges facing Michigan school boards. In addition, the text is full of quotations from school board members and other education professionals concerning their experiences with collective bargaining and school employee unions. The combination of informational content and personal reflections provides new insights to school board members — and to policymakers, journalists and the general public, as well. more

Assessing Stricter Mercury Controls in Michigan

On April 17, 2006, Michigan Gov. Jennifer Granholm directed the Department of Environmental Quality to draft a rule under the state’s Clean Air Act to reduce mercury emissions from coal-fired power plants by 90 percent. The governor ordered the reductions to occur in two phases. The first phase is supposed to entail the reduction schedule established by the U.S. Environmental Protection Agency last year. The second phase is supposed to exceed the federal requirements by reducing emissions 90 percent by the year 2015. more

Proposal 4: A Legal Review and Analysis

Proposal 4 of 2006, which will appear on the November ballot, is a proposed state constitutional amendment that would alter state law regarding eminent domain, the legal theory that permits the government to take private property for public use if the government pays just compensation. more

School Choice Snapshot: A 2006 Survey of U.S. Policy and Advocacy Organizations

The Mackinac Center for Public Policy worked on this survey project from November 2005 through September 2006. We provided assistance to the survey researcher, Adam B. Schaeffer, who was then a National Research Initiative Fellow at the American Enterprise Institute in Washington, D.C., by collaborating on the survey instrument, offering relevant and limited information from our database, handling technical details of inviting and following up with participants, and editing and publishing this document. more

The Stop Overspending Michigan Initiative: A Review and Analysis

The proposed “Stop Overspending” state constitutional amendment, which failed to gain ballot status in the November 2006 election, addressed four major areas ... more

Assessing the Case for Cable Franchise Reform

Advances in technology now make it possible for both cable firms and telecommunications companies to provide voice, data and video services to most homes and businesses. This constitutes a dramatic change from the days of cable dominance in the video market, and that of the “Baby Bells” in telephone service. What hasn’t changed, however, is the franchise regime that has long limited access to the local market and thus inhibited competition. In this paper, Diane S. Katz examines the effects of this obsolete regulation on consumers and the economy, as well as the myriad benefits of reform. more

An Analysis of Proposal 5: The ‘K-16’ Michigan Ballot Measure

On Nov. 7, 2006, Michigan voters will be asked to consider a proposed new law that would, if passed, require annual state spending to increase at no less than the inflation rate for the following state budget areas: public school districts and charter schools; certain specific budget items in state spending on public school districts and charter schools; and state universities and community colleges. The proposal also contains new requirements for state payments to districts with declining enrollment and places liability for school employee pension cost increases on state government, rather than school districts. The proposed new law will appear as “Proposal 5”on the ballot, and its mandates would take effect in the 2006-2007 school year. more

Mackinac Center Amicus Curiae Brief in Attorney General v. Michigan Public Service Commission

A Mackinac Center “friend of the court” filing to the Michigan Supreme Court in a case involving the Michigan Public Service Commission’s renewable-energy surcharge on electrical bills. more

Mackinac Center Amicus Curiae Brief in DPG York v. Michigan

A Mackinac Center “friend of the court” filing to the Michigan Court of Appeals in a case involving the preferential sale of state land. more