School Choice in Michigan: A Primer for Freedom in Education
School choice--the right, freedom, and ability of parents to choose for their children the safest and best schools--has moved front and center in the debate over how to improve education in Michigan. This three-part primer equips parents, educators, and policy makers with the facts they need to understand and advance market-based reforms that will help all Michigan schools perform at higher levels of quality and efficiency.
The primer examines the history of government-funded and operated schooling, explains why nonmarket-oriented school reform efforts ultimately fail, and describes various school choice proposals including charter schools, inter-district choice, vouchers, tax credits, and universal tuition tax credits. Helpful appendices explain ways for grass-roots citizens to help advance school choice. … more
The primer examines the history of government-funded and operated schooling, explains why nonmarket-oriented school reform efforts ultimately fail, and describes various school choice proposals including charter schools, inter-district choice, vouchers, tax credits, and universal tuition tax credits. Helpful appendices explain ways for grass-roots citizens to help advance school choice. … more
The Impact of School Choice on School Employee Labor Unions
As school choice heads for the 2000 ballot in Michigan, it is important for citizens to
understand how proposals including K-12 vouchers and tuition tax credits will affect the
school employee unions that exert such a powerful influence on the states public
school system.
This study examines union membership rates among Michigans public, charter, and private school teachers and found that while teachers in every public school district are represented by-and pay dues to-a union, only 5 out of 139 charter and 2 out of over one thousand private schools employ unionized workforces.
The study concludes that school employee unions-including the Michigan Education Association and the Michigan Federation of Teachers-have powerful political and financial incentives to spend millions of dollars to prevent more parents from being able to choose non-unionized charter or private schools for their children. … more
This study examines union membership rates among Michigans public, charter, and private school teachers and found that while teachers in every public school district are represented by-and pay dues to-a union, only 5 out of 139 charter and 2 out of over one thousand private schools employ unionized workforces.
The study concludes that school employee unions-including the Michigan Education Association and the Michigan Federation of Teachers-have powerful political and financial incentives to spend millions of dollars to prevent more parents from being able to choose non-unionized charter or private schools for their children. … more
How Reliable Are Michigan High School Economics Textbooks?
A strong knowledge of sound economic principles is not only important in the
twenty-first century global marketplace, it is essential for the maintenance of a free
society. Are Michigan high school students being taught what they need to know in order to
succeed and prosper?
This review of 16 of the most commonly used economics textbooks in Michigan high schools uses 12 criteria-including issues of trade, taxation, and the role of government-to evaluate which texts are and are not effective at presenting students with a balanced and accurate perspective on the modern market economy. Each text is graded, from A to F, on its ability to clearly instruct students in the "economic way of thinking."
An abridged 27-page written copy of the report may be ordered normally, or the full reviews of each textbook may be downloaded at no charge via www.mackinac.org. … more
This review of 16 of the most commonly used economics textbooks in Michigan high schools uses 12 criteria-including issues of trade, taxation, and the role of government-to evaluate which texts are and are not effective at presenting students with a balanced and accurate perspective on the modern market economy. Each text is graded, from A to F, on its ability to clearly instruct students in the "economic way of thinking."
An abridged 27-page written copy of the report may be ordered normally, or the full reviews of each textbook may be downloaded at no charge via www.mackinac.org. … more
Unused Capacity in Privately Funded Michigan Schools
Many Michigan education reformers are exploring proposals to use private schools to help fix public school problems, including student overcrowding and a lack of incentives for improving student performance. The proposals, whether they involve public-to-private student transfers or expanded parental choice among all schools, depend on private schools' willingness and ability to accommodate new students. This study, which surveyed 342 of Michigan's 1,058 private schools, confirms that private schools have the classroom capacity and desire to accept a significantly larger role in providing more of the state's children with quality education. 10 pages. … more
Keeping Michigan on Track
A Blueprint for Governor Engler and the 90th Legislature
The close of the twentieth century finds Michigan in a position that seemed impossible
barely a decade ago: record low unemployment, a thriving economy, growing educational
opportunities, and a sense of accomplishment and high spirits. But much can be done to
make Michigan an even better place to live and work.
This report's five sections offer the Governor and the Legislature 41 specific recommendations that will strengthen property rights protection, reform labor law to protect worker rights, improve education for Michigan children, spur economic growth and development, and enhance the state's transportation infrastructure. … more
This report's five sections offer the Governor and the Legislature 41 specific recommendations that will strengthen property rights protection, reform labor law to protect worker rights, improve education for Michigan children, spur economic growth and development, and enhance the state's transportation infrastructure. … more
Saving Retirement in Michigan
Responsible Alternatives to Social Security
Social Security is going bankrupt, threatening the financial security of Michigan citizens. Retiring Baby Boomers are estimated to double the number of retirees in America by 2015, when Social Security will no longer collect enough in taxes to pay the benefits promised to recipients.
Privatizing Social Security-allowing individuals to privately invest their own retirement savings-can avert the financial crisis. Countries including Chile and Great Britain have privatized all or part of their state pension programs, yielding retiree benefits much higher than the government systems, including Social Security's paltry 2.2 percent annual rate of return.
This study recommends that the Michigan Legislature call on Congress to either privatize Social Security or allow Michigan to design for its citizens a sounder and more beneficial retirement plan. … more
Privatizing Social Security-allowing individuals to privately invest their own retirement savings-can avert the financial crisis. Countries including Chile and Great Britain have privatized all or part of their state pension programs, yielding retiree benefits much higher than the government systems, including Social Security's paltry 2.2 percent annual rate of return.
This study recommends that the Michigan Legislature call on Congress to either privatize Social Security or allow Michigan to design for its citizens a sounder and more beneficial retirement plan. … more
"Urban Sprawl" and the Michigan Landscape: A Market-Oriented Approach
Government officials and environmental activists use "stopping urban sprawl" as a mantra to support greater government control over private land use decisions in Michigan through central planning aimed at farmland preservation and urban revitalization.
This study critically examines suburbanization and land use in Michigan to determine that the state's economy and farmland and citizens' quality of life are not threatened by economic growth and development, or what activists have dubbed "sprawl."
The study argues that restrictions on suburban growth do not address the causes of why people move out of inner cities any more than the Berlin Wall addressed the problems of East Germany's repressive socialist economy.
The study concludes by recommending a market-based approach to land use policy and identifying "urban sprawl" as the natural evolution of free people pursuing peaceful ends and their shot at the American Dream. … more
Paycheck Protection in Michigan
The U. S. Supreme Court's
1988 landmark decision
Communication Workers v.
Beck established the rights
of employees working under
union contracts to pay only
those union dues or fees
necessary to cover the costs
of a union's employee
representation duties.
However, the majority of
Michigan's nearly one million
union workers are unaware
of their rights under the Beck
decision for the simple
reason that their unions
neglect to inform them.
This report shows how
"paycheck protection"
legislation would help
safeguard worker Beck
rights by requiring unions to
obtain up-front, written
approval from individual
workers each year before
they could spend the dues
money on political or other
non-workplace-related
activities.
The report recommends that
Michigan policy makers
adopt a paycheck protection
proposal to help union
workers enjoy their freedoms
of speech and association
as they refrain from
involuntarily contributing
money to union causes with
which they disagree. … more
Collective Bargaining: Bringing Education to the Table
Michigan parents, citizens, and policy makers have begun an earnest discussion over the issues that affect the quality of children's education, but one issue that is rarely considered in discussions about education reform is public school union collective bargaining.
This Mackinac Center for Public Policy study is the first ever to systematically analyze the hundreds of collective bargaining agreements for every school district in a state. It examines collective bargaining's impact on Michigan public education and makes recommendations that school boards should incorporate into their union contracts to improve their ability to direct maximum resources to the classroom and deliver quality education to students.
The study also explains the historical and legal framework of public employee collective bargaining in Michigan, analyzes seven important court rulings that affect public collective bargaining issues, and advises districts on which subjects to negotiate or not negotiate into their labor contracts.
Three appendices compare costs and benefits of various health care plans and present contract and financial data from the survey of Michigan's 583 school districts. … more
Reforming Property Forfeiture Laws to Protect Citizens’ Rights
The Framers of the United States Constitution understood that freedom depends upon the vigorous protection of private property rights and that this protection was therefore the most sacred obligation of government. However, despite Fifth and Fourteenth Amendment guarantees, recent years have witnessed a massive expansion of a legal practice known as "asset forfeiture," which allows government to violate the very property rights it is charged with protecting. Hundreds of asset forfeiture laws-many of them intended to stop illegal drug trafficking-give state and federal law enforcement agents the power to seize property even without proof of the owners' guilt in a criminal trial because, in many cases, the government considers the property itself to be the criminal. This study recommends nine reforms that will help guarantee that Michigan citizens enjoy the benefits of private property rights, limited government, and individual liberty, and remain protected from unjustified and arbitrary seizure of their personal possessions. … more
The Need for Debt Policy in Michigan Public Schools
Public school construction is booming across Michigan, but due to citizens' negative perceptions, many districts are finding it harder and harder to gain voter approval for bond proposals to fund needed projects.
This analysis of Michigan public school bonding concludes that development of formal debt policies can help schools earn essential voter trust by managing bond monies in the most efficient and effective manner.
The report recommends fifteen elements for a sound debt policy that school districts should adopt to avoid common pitfalls and problems in bonding, including excessive borrowing, improper accounting, and conflict of interest in debt issuance. 17 pages … more
The Universal Tuition Tax Credit: A Proposal to Advance Parental Choice in Education
This pathbreaking approach to expanding parental choice in education embodies a proposal to amend the Michigan constitution and establish a Universal Tuition Tax Credit (UTTC). The tax credit would offset a portion of private or public school tuition and would be claimed against state tax liabilities. In addition to improving education, the UTTC would save the state hundreds of millions of dollars per year.
Unlike other tax credit plans, the UTTC would help needy families with low state tax liabilities by encouraging the creation of corporate scholarships to offset tuition costs not covered by the UTTC. The per-student credit could be claimed against the Michigan tax liability of any person or corporation.
Unlike vouchers, the UTTC would not allow state funds to support religious schools, would not drain funds from the public schools, and would not spawn new entitlements or overregulation of private schools.
The study includes detailed fiscal models, a discussion of school choice, a history of Michigan's constitutional impediments to education reform, and proposed language for a constitutional amendment. 76 pages … more
Do Private Schools Serve Difficult-to-Educate Students?
Private K-12 schools are sometimes criticized for accepting only those students most likely to succeed academically, and for leaving the most difficult-to-educate children to the public school system. Is this true?
The diversity of private schools includes those that serve exclusively at-risk, incarcerated, or disabled children. The report describes private schools that educate each of these populations, reviews how public schools are contracting with private schools to serve difficult-to-educate students, examines policy implications including cost and school choice, and presents six case studies of Michigan private schools that serve exclusively students with special needs. 71 page … more
Energizing Michigan's Electricity Market
Michigan is about to allow customer choice in the electric power market and, by doing so, end nearly a century of monopoly protection and guaranteed profits for electric utilities. How the state makes this free market transition will impact Michigan's competitiveness and cost of living.
The report reviews key decisions before the legislature; analyzes the Public Service Commission proposals; shows the technical, environmental, and economic impact of deregulation; compares Michigan to other states; and recommends ten specific actions to ensure fair, timely, and comprehensive customer choice. The effects of so-called stranded cost payments to utilities are assessed in detail. A four-page glossary of technical terms is included. 33 pages. … more
Compulsory Union Dues in Michigan
Nearly one million Michigan workers are forced to financially support a union in order to keep their jobs. Although federal law permits unions and employers to force workers to pay for union representation in the workplace, the law does not extend to forcing workers to pay unions for representation in the political arena.
Over three-fourths of union workers are not aware that they do not have to fund their unions' political, social, and ideological agendas. This report documents the developing law surrounding compulsory union dues in Michigan, shows workers how to exercise their rights to a dues refund, presents positive union strategies for making workers aware of their rights, and calls for executive action by the governor. 28 pp. … more
Declining Standards at Michigan Universities
Reflecting a national problem, Michigan public universities are producing graduates who are unprepared for K-12 teaching careers and the business world. The demise of the traditional core curriculum, indoctrination in the classroom, and questionable teaching methods that emphasize emotion and subjectivity over rigor and critical thinking are to blame. The study documents extensive evidence cited by employers that college graduates lack crucial communications and thinking skills, and it finds a link between poor training of aspiring teachers and declining K-12 student performance. Analysis of over 300 undergraduate course syllabi reveal the dominance of trendy, politicized course content. 88 pages. … more
Reforming the Law of Takings in Michigan
If the state of Michigan takes from a land owner some, but not all, of the use or value of his land, the owner is not entitled to any compensation. This forces a few land owners to bear the entire cost of these takings that are intended to benefit the public as a whole. Many states have initiated reforms that would permit land owners to be more fairly compensated. This study outlines the practice of takings jurisprudence in Michigan, reviews the legislative responses in Michigan and other states, and makes specific recommendations for reform in Michigan. 40 pages. … more
Advancing Civil Society: A State Budget to Strengthen Michigan Culture
At its core, the budget of the state of Michigan is not about money-it is about people and the way they organize their society. This line-by-line analysis of Michigan's 1995-96 state budget reflects a principled vision for Michigan culture by asking this question about each budget item: Should this program or activity be done by the authority of the state and financed by taxes, or should it be done by its individual citizens acting in voluntary cooperation and private contract with one another? The study recommends over $2 billion in spending reductions (over 7 percent of the state budget) achieved by eliminating unnecessary and counterproductive programs, rolling back unjustified program growth, and contracting out for services that can be handled more efficiently by the private sector. This landmark analysis will help citizens, candidates, and officials of any state craft budgets that promote the strengthening of private institutions and civil society. 97 pages. … more
Are Michigan's History Textbooks Reliable?
When history texts are poorly written, students are merely bored. But when they are distorted and biased, students may act on false ideas and live out a lie.
How reliable are Michigan's history texts at presenting the past in ways which are well organized, accurate, clear, and free of bias? In this study, four Michigan history textbooks are analyzed and reviewed against these criteria. The reliability of these texts is especially important since Michigan history is a required subject for Michigan fourth graders, and it is studied by many junior high and high schoolers too.
Parents, teachers, and school officials will find this study a valuable tool for making the best choices for their students. 28 pages. … more
Stress Claims in Michigan: Worker's Compensation Entitlement for Mental Disability
The worker's compensation system was developed as a way for workers who suffer on-the-job physical injuries to be compensated fairly and quickly for medical expenses and loss of income. In recent years, however, it has expanded into a new area fraught with vagueness: mental stress. Though the focus of this report is on Michigan, which has been in the forefront among states in mental stress claims, its searching analysis of the inherent difficulty in evaluating these claims will be useful for anyone interested in this growing area of workplace abuse. 36 pages. … more
Outcome-Based Education: Miracle Cure or Plague?
This report explains why there is so much conflict over outcome-based education (OBE). When states began to institute OBE programs, they turned the crucial task of defining outcomes over to the very education establishment threatened by the process. Having adopted in principle the laudable focus on education results, the educrats then went on to propose a list of outcomes that emphasizes not academic achievement but rather, attitudes and behavior that often reflect quasi-political or ideologically correct positions. 24 pages. … more
Teacher, Inc.: A Private Option for Educators
This study profiles the experiences of a number of educators in private practice, and discusses the benefits that teachers, students, and schools may realize by contracting for instruction. Also included are the results from two national surveys about the legal authority of school boards to contract for instruction, and a chart to help administrators identify the fully allocated costs of in-house and contract service. 23 pages. … more
Fixing the Roads: A Blueprint for Michigan Transportation Infrastructure Policy
This comprehensive study is the only one available that documents Michigan's road needs, illuminates the diversion of hundreds of millions of Michigan road dollars to nonroad and non-Michigan use, demonstrates how Michigan can save over $170 million annually, and shows that a gas tax increase is not needed if funding diversions are stopped and modest savings measures are enacted. Several of its recommendations have been implemented. 40 pages. … more
MEGA Industrial Policy: An Analysis of the Proposed Michigan Economic Growth Authority
Michigan has seen stellar economic progress due to Governor Engler's free-market reforms. Is MEGA a reversal of the trend? Should government pick the winners and the losers? This report analyzes proposed MEGA legislation. 16 pages. … more
Timber Producer Certification in Michigan: Self-Regulation vs. State Regulation
Which form of regulation is better for solving problems, protecting consumers and the environment and encouraging rational economic planning-regulation by government or regulation by industry through free markets and incentives? Michigan State University Forestry Professor and Mackinac Center Scholar Dr. Potter-Witter argues for a self-certification model that could be applied to other industries. She also provides a thorough review of the Michigan timber market and a timely survey of literature on occupational licensing. 23 pages. … more
The Archer Administration: A Commentary at Year One
After one year of Detroit Mayor Archer's administration, analysts Kleiman and Hutchison conclude that although some promising new directions were taken, much work remains. Experience in other major cities such as Philadelphia point the way for Detroit: Mayor Archer should move quickly to cut tax rates and privatize more services. 10 pages. … more
Political Drift or Paradigm Shift?
An Agenda for Leadership that Lasts
During the elections of 1994, the voters spoke with uncommon clarity about the role of government in their lives. Governor John Engler was re-elected to be a risk-taker, not a caretaker. In this advisory document, the Mackinac Center recommends several specific measures for education reform, labor law reform, and economic development. 5 pages. … more
Doing More With Less: Competitive Contracting for School Support Services
Competitive contracting can provide schools with expertise, flexibility, and cost efficiencies not always available with in-house service provision. If they are properly designed and monitored, contracts between schools and private providers can help school administrators do more with less. Includes step-by-step guidelines for the "make or buy" decision, tells how to avoid pitfalls, and suggests measures for contractor evaluation. 26 pages. … more
The Limits of Compulsory Professionalism: Does a Unified Bar Make Sense for Michigan?
No profession other than the practice of law, in Michigan or any other state, requires membership in a professional organization to maintain a license. This practice, known as the unified bar, has been the subject of litigation in a number of states. Practicing attorney and Law Professor Bradley A. Smith and attorney Alan Falk note that nineteen states have voluntary bar associations, and compare their operation to the "unified" (involuntary) associations. They find that compulsory bar membership provides no greater benefits than those provided by voluntary bar associations. 26 pages. … more
Discrimination at Private Clubs in Michigan: Freedom of Association After Public Act 70
In recent years, a cherished American right, freedom of association, has come into conflict with laws designed to prevent discrimination by private organizations. Michigan's Public Act 70 of 1992 is one such law. Examining P.A. 70, as well as Michigan's famed Elliot-Larsen law, University of Detroit Law Professor Stephen J. Safranek finds that the act was unnecessary, misdirected, and economically harmful. Individual consumers of club services are the real losers. P.A. 70 is government intervention without regard to the right of private clubs to engage in freedom of association. 16 pages. … more
Sales vs. Income Taxes: The Verdict of Economists
The March 15, 1994, statewide ballot question asked voters to weigh the pros and cons of school finance. The central question was this: Which does the least economic harm-the sales tax or the income tax? Economist Dean Stansel maintains that theory and empirical evidence suggest that consumption taxes are less deleterious than taxes on income, investment, and savings. Connecticut imposed a new income tax in 1991 and economic growth evaporated and job opportunities and population declined. We should learn from the experience of states with high income taxes. 9 pages. … more
Making Schools Work: Contracting Options for Better Management
Can America's public schools be improved? Unquestionably. Without additional spending, school administrators can take advantage of the expertise of the private sector, introducing innovations that will make a world of difference. This study reveals dozens of examples of private companies now providing management, instructional, and support services to public schools across America. A must-read for anyone interested in changing public education by putting competition and the profit motive to work. 28 pages. … more
Ecorse: The Fall and Rise of a Michigan City
Ecorse, a Michigan community south of Detroit, gained a national reputation in the late 1980s as a town that took privatization seriously. Over a four-year period, Louis Schimmel, court-appointed receiver, privatized most city services, cut the city's work force more than 60 percent, and eliminated a $6 million budget deficit. Daddow's review of the city's efforts to correct its fiscal problems through spending discipline and privatization is a must-read for every city official who wants to learn lessons from a city that's been to the brink and back. 99 pages. … more
A Prosperity Agenda for Michigan Cities
This study compiles recently released 1990 U.S. Census Bureau data to measure the economic and fiscal policy performance of Michigan's eleven largest cities. Using an index composed of poverty rates, population growth, job growth, and per capita income, the authors find that six cities grew during the 1980s while five declined. The per capita tax burden was found to be 65 percent higher in the declining cities than in the growing cities, a difference of more than $1,100 per year in taxes. Preface by prominent Michigan economist and Mackinac Center scholar David Sowerby. 19 pages. … more
Michigan Education Special Services Association: The MEA's Money Machine
This exhaustive report illuminates the inner workings of the Michigan Education Association's health insurance division, known as MESSA. It documents how tens of millions of the public's education tax dollars are wasted each year on uncompetitive teacher health insurance, and how MESSA is part of a systematic plan to subsidize the MEA's basic operation and political activity. 64 pages. … more
Modern Schools for Michigan: An Outline for Educational Reform
After the Michigan Legislature's vote to end property tax funding for schools, the Mackinac Center issued this outline of a comprehensive education overhaul for Michigan. It suggests policy changes including parental choice, school-based management, and charter schools. Also included is an explanation of the Mackinac Center's innovative Education Credit Account idea. 7 pages. … more
Child Foster Care in Michigan: A Privatization Success Story
Few issues are more emotional and controversial than how states care for children who are removed from families because of neglect, abuse or abandonment. This extensively documented report finds that it is less costly to place children in foster care supervised by private agencies than for this service to be provided by Michigan's Department of Social Services. Privatization of this important social service serves as a model for other states. 16 pages. … more
Washington Should Kick the Mandate Habit:
The Fiscal Impact of Medicaid Mandates on Michigan
Unfunded mandates forced on state governments by Congress pose a substantial challenge to both their budgets and their fiscal sovereignty. Nearly one-third of the growth in Michigan state government revenue for 1993 was consumed by the cost of federal Medicaid mandates alone. The authors' recommendations include the creation of a mandate ombudsman and database, requirements that Congress determine the cost of mandates before passing them, and a call for Michigan's federal representatives to appear before the state legislature to explain their positions on mandate issues. 17 pages. … more
Proposal A: An Analysis of the June 2, 1993, Statewide Ballot Question
In 1993, Michigan voters were asked to consider a plan that would cut property taxes and cap property assessments, raise the sales tax, and establish a $4,800 per-pupil guarantee for the public schools. "Proposal A" was defeated, but not without intensive debate in which this study figured prominently. The report identifies both pros and cons of "A," including independent, in-depth analysis of its likely impact on the state budget, schools, and property owners. Although "A" is now consigned to the history books, this study is a useful tool for understanding school finance, the economics of property taxation, and related constitutional questions. 40 pages. … more
Michigan's Experiment with Public School Choice: A First Year Assessment
In 1991, the state of Michigan required each of the state's 563 school districts to devise intra district choice plans by April 1992. Wittmann and DeVore examine those plans and conclude that what could have been a bold new beginning for school reform in Michigan turned out to be a largely unproductive extension of the status quo. Genuine choice, competition and accountability in education require far more fundamental changes that will break the monopoly of the public education establishment and create a real marketplace for education. 57 pages. … more
The Engler Administration: A Mid-Term Review
January 1993 marked the half-way point of Governor John Engler's first term. In this review of the Engler administration, the Mackinac Center notes, "While the nation opts for change in one direction, progress in another is taking place here under the leadership of Governor Engler toward putting government in its proper (read: smaller) place." The report cites the strengths and weaknesses of the administration and concludes by assigning Governor Engler an overall grade of "A-." In addition, several new initiatives are suggested for 1993 and 1994 including civil service reform, property tax cuts, budget reductions, and privatization. 8 pages. … more
Analysis of Tax Proposals on the 1992 Ballot
The November 1992 general election in Michigan included two propositions regarding property taxes, Proposals A and C. This evaluation presents a detailed analysis of them, including projections for state and local government revenues. Widely cited in the press when released, it remains a useful guide to Michigan's property tax structure. The report makes a strong case that Michigan, which has the second highest property tax burden among twelve Midwestern states, sorely needs a property tax cut to spur economic growth and to stem the exodus of business from the state. 44 pages. … more
Twenty Myths About National Health Insurance
The allure of national health insurance comes largely because it is perceived as successful in Canada and Britain. This thoroughly documented report shows conclusively that government-run national health insurance has led to serious and inevitable dilemmas that no country should want to emulate. The authors prove that other models have not been more successful than the U.S. in controlling costs or providing superior access to care, and that adoption of a national health system would have negative consequences. Released in cooperation with the Dallas-based National Center for Policy Analysis. 68 pages. … more
Responding to Municipal Fiscal Crisis: Bottom Line Lessons from Ecorse, Michigan
Ecorse, one of seventeen communities in the Downriver Detroit area, became the first Michigan city to be placed in receivership. Court-appointed Receiver Louis Schimmel turned the city's finances around through aggressive policies of cost cutting and privatization. He privatized the entire Department of Public Works for a minimum annual savings of $400,000. Other cities such as nearby Detroit have much to learn from the Ecorse experience. 13 pages. … more
New Hope for Michigan Welfare Reform
Welfare programs cost too much, foster dependency, and tear families apart. Consequently, they actually increase and perpetuate the very poverty which they are intended to remedy. What is required now is a sharp break from prevailing practices-a new philosophy of public assistance. This special report argues that Lansing lawmakers must restructure our state's welfare programs to provide incentives to keep families together and encourage people to work their way off welfare. The sixteen-point program for Michigan welfare reform, the first comprehensive proposal on the subject after the 1990 election, sparked a vigorous statewide debate. Dr. Gerald Miller, then director of the Michigan Department of Social Services, stated in June 1992, "Eleven of the Center's proposals were incorporated into Governor Engler's program." 7 pages. … more
Keeping the Engler Revolution on Track
This analysis of Governor Engler's first year in office gives the governor high marks for balancing the state's budget without a tax hike. The governor is urged not to shrink from the politics of constructive confrontation with legislative "big spenders." Includes a review of his first year in light of the Road Map for a Michigan Renaissance, issued by the Mackinac Center in November 1990, and makes recommendations for the continued downsizing of state government. 3 pages. … more
Educational Choice for Michigan
The sad state of public education in Michigan and America is largely due to its organization as a government-protected monopoly. The authors argue that injecting choice, competition and accountability into education would result in dramatic improvement. The report explodes the myths that the problem in education is too little money and that choice would lead to segregation or elitism. One chapter focuses on the remarkable achievements of 107 non-public schools in Detroit. 102 pages. … more
Progressive Environmentalism: A Pro-Human, Pro-Science, Pro-Free Enterprise Agenda for Change
Task Force Report
Radical environmentalism is the destructive notion that free enterprise is the danger and government is the manager of the environment. Conclusive facts, figures, and analysis show that private property and free markets should be encouraged if we want to clean up our environment. Specific changes in the law would improve environmental quality and preserve personal and economic liberties. 85 pages. … more
Employment-at-Will in Michigan: A Case for Retaining the Doctrine
The last two decades have witnessed an unprecedented assault on one of the last frontiers of free contract: the employment relationship. The ability of individuals to choose freely for whom they will work and who will work for them is being undermined by activist jurists and legislators and cheered on by statist academics. Skoppek traces this development in Michigan law, explains the breadth of harm it has caused, and argues strongly for change. 26 pages. … more
Managing the Michigan Solid Waste Stream: Markets or Mandates?
This comprehensive, Michigan specific review of the economics and politics of solid waste management analyzes recycling, incineration, landfilling, and composting. Michigan should manage its solid waste stream by relying upon market mechanisms and avoiding imposing statewide mandates. Includes an analysis of solid waste legislation and certain local government waste management initiatives. 98 pages. … more
Ann Arbor, Michigan: A Privatization Profile
The city of Ann Arbor has a successful privatization track record: vehicle towing, street and sidewalk repair, snow removal, janitorial services, and tree trimming. More can be done and DiGiuseppe specifies possible savings that could be achieved if solid waste collection, landfill management, and parking structures were privatized. 14 pages. … more
Road Map For a Michigan Renaissance
In the aftermath of the 1990 gubernatorial election, innovative proposals for a new incoming administration and legislature were needed. In a 20-point program, The Mackinac Center calls for a Michigan Grace Commission, welfare reform, trucking deregulation, privatization, repeal of the Prevailing Wage law, and specific tax and spending cuts. … more
An Agenda for Solving America's Health Care Crisis
The best way to address the American health care crisis is to put market-based incentives in place where unwise public policies have been imposed. This study reviews the history and causes of national health care problems and proposes remedies such as the creation of medical savings accounts, reform of tax laws, and the repeal of expensive state-mandated health benefits. Released in cooperation with the Dallas-based National Center for Policy Analysis. 33 pages. … more
The Michigan Education Trust: A Political Economy Perspective
Touted as cutting-edge public policy, the MET program is found to be a flawed political promise that might have to be bailed out by state taxpayers. Parents who want to save for their children's education have better options in the private marketplace. Subsequent events led Governor Engler to scrap the program. 25 pages. … more
Michigan's Home Ownership Savings Trust: A Closer Look
The HOST program was created in 1989 ostensibly to assist first-time home buyers in saving for their down payments. Wolfram and Kaza point out the fatal flaws of the plan and expose HOST as a boondoggle of the first order. Their analysis was instrumental in bringing about revisions of the program under Governor James Blanchard and its ultimate abolition under Governor John Engler. 8 pages. … more
Auto Insurance in Michigan: Regulation, No-Fault, and Affordability
Written by one of America's foremost authorities on auto insurance, this study is a thorough review of Michigan's Essential Insurance Act and No-Fault Law. Harrington examines in-depth the structure of rates in the state and explains that they are not the result of price-gouging or insufficient competition. He analyzes the effects of the state's insurance regulations, and makes suggestions that would increase competition, lower costs, and limit the interference of government in a free insurance market. 33 pages. … more
Litigation and the Market: Restoring the Balance Between Individual and Employer Rights
Litigation has become an expensive and prominent component of our economy. There are too many excessive damage awards and too few controls on the length and expense of court proceedings. The author examines product liability and employment contract law and recommends ten specific reforms. 5 pages. … more
Regional Economic Development: Downriver as a Case Study
The seventeen communities of the Downriver Detroit area have traditionally been economically vibrant. Their decline in recent years is due in great measure to excessive tax burdens and the politicization of community services. The authors explain how this area can revive by rolling back property taxes, privatizing a number of municipal functions, avoiding government-directed economic development schemes, and making certain improvements to the transportation infrastructure. The many lessons from the Downriver experience are applicable to communities all across Michigan. 32 pages. … more
Jail Overcrowding in Michigan: A Public Problem With a Private Solution?
Strapped for cash and experiencing soaring costs to maintain over crowded jails, Michigan counties are overdue for privatization. Van Eaton cites substantial cost savings in more than a dozen other states where jail operation and management has been privatized. Michigan state government should allow our 83 counties the freedom to employ this promising option. 26 pages. … more
Tort Law and the Products Liability Insurance Crisis
This report examines the theories behind the products liability insurance crisis, including the idea that the crisis is contrived by the insurance industry. Smith argues that the real source of the problem is judicial changes in tort law that undermine the predictability of risk and the independence insurance markets need to adequately measure risk. He recommends steps that governments should take to solve the crisis and bring down consumer and industry costs. 55 pages. … more
Detroit Metropolitan Airport: A Case for Privatization
The nation's first comprehensive proposal to privatize a commercial airport was inspired by Britain's successful 1987 effort to privatize eight airports, including London's Heathrow. If Detroit Metro were properly privatized, it would benefit county finances, air travelers, and area economic development. … more
The Single Business Tax Burden on Michigan Industries
The Michigan Single Business Tax (SBT) was, at the time of this report's release, the only value-added state business tax system in the U.S. The author explores its history, actual practice, and inherent advantages and disadvantages. Tables of data are provided, showing the SBT burden as a percentage of the Adjusted Tax Base on industries in Michigan. This report is a good overview of the SBT and its impact on the state's businesses. 30 pages. … more
The Michigan Accident Fund: A Need for Privatization
Though prevailing legal opinion had concluded that the Accident Fund, a workers' compensation insurer, had been operating as a private insurer, Attorney General Frank Kelley ruled in 1976 that the Fund was in fact a state agency. Smith examines the controversy ignited by Kelley's ruling, culminating in a state takeover of the Fund in 1989. His powerful case for privatization of the Fund is just as relevant today and, in fact, is a major reason why the Engler administration planned to do just that in 1994. 31 pages. … more













