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Michigan Public School Employee Retirement Plans
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
in Need of Reform
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.more
(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.more
This study focuses on Public Act 103 of 2011, which made teacher evaluation, layoff policies and teacher placement prohibited subjects of bargaining, among other things. After surveying 200 Michigan school district collective bargaining agreements, this study finds that as many as 60 percent of districts could have collective bargaining agreements in place that contain language prohibited by PA 103.
Some districts negotiated with their unions to add language stating that if circumstances changed, pages of prohibited language would take immediate effect. Others simply changed the word “teacher” in order to keep the prohibited language but have it apply to other staff members. Finally, some districts appear to have kept prohibited language without explanation.
This study includes further examples and lists of districts that kept the prohibited language in their contracts. As a solution, penalties could be added to the collective bargaining reform laws in order to encourage district compliance.more
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.
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.more
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.more
Video by Kathy Hoesktra, Mackinac Center communications specialistmore