The Michigan Senate is considering a bill that would prevent taxpayer-funded union “release time” in most settings. There is a real-world cost to this practice, which allows union stewards to spend time working for a private entity when they are supposed to be working for the public.
On Thursday, June 25th, the Mackinac Center will hold the Arthur N. Rupe Foundation Debate on the topic of Money in Politics. The debate will address the competing claims of disclosure and privacy/free speech in politics today. Registration for the event guarantees refreshments and seating, and closes on June 22.
Things aren’t looking good for individual privacy – at least for those who wish to participate in public policy debates. Despite the First Amendment’s strong defense of free expression, speech is increasingly regulated – especially political and policy dialogue. For an increasing number of nonprofit organizations, disclosing contributors’ identities is the price paid to be allowed to advocate in the public square. Some fight back against these regulations, arguing in the name of free speech and individual privacy that promoting public policy should not be regulated in the same way as funding a political candidate. A timely example is playing out in the courts right now.
By Jack McHugh
House Bill 4122, Repeal state film producer subsidies: Passed 24 to 13 in the Senate
To repeal the program that gives Michigan tax dollars to film producers. Since 2008 some $500 million has been distributed to producers. This week's votes send the bill to the Governor for approval or veto.
Watchdog.org took a look back at the hundreds of millions of dollars approved for the battery maker, A123 Systems. The Mackinac Center and Michigan Capitol Confidential covered the deals between the state and company for years, before the entity went bankrupt.
The Mackinac Center recently released the results of a poll conducted by Mitchell Research & Communications, Inc. showing two-thirds of respondents preferred putting money currently spent on corporate subsidies through MEDC toward roads.
The poll was featured in a June 17 article at the Daily Caller, which also referenced an earlier poll commissioned by the Mackinac Center indicating strong voter support for the end of the state's film subsidy program in favor of road funding.
A bill now pending before the Michigan Senate would prevent former school employees like Michigan Education Association union president Steve Cook and others from continuing to accrue benefits in Michigan’s school employee pension system. Yet a Senate Fiscal Agency summary of Senate Bill 279 claims the change would not save any taxpayer dollars. This is incorrect, because the analysis ignores the risks of underfunding pensions and the “benefit spiking” costs associated with this scheme.
A new article on the Heritage Foundation’s “Daily Signal” website highlights the problem with civil asset forfeiture, which is the subject of several bills currently being considered in the Michigan Legislature. The piece, “9 Times the Government Stole Americans’ Cars, Cash” features a case study that originated in Detroit:
Earlier this year, Michigan Capitol Confidential broke the story of MEA President Steve Cook spiking his public school employee pension. He will be able to collect over $100,000 a year from the underfunded system when he retires, despite working only part time as a paraprofessional in the Lansing School District over twenty years ago.
Should taxpayers be forced to pay for union leaders working on union business? Or should education dollars go to education?
Senate Bill 280, sponsored by Sen. Marty Knollenberg, R-Troy, recently passed out of committee and will go to the full Senate. As noted by MichiganVotes.org, the bill would “ban government employee union contracts that pay employees who are union officials for time they spend on the job conducting union business (which they call ‘release time’). Among other government employers, many public school districts give local union officials full teacher salary and benefits but do not require them to teach or perform any other educational function.”
A Senate panel has voted to eliminate Michigan’s film incentive program from the state budget beginning next year. The bill will move on to the full Senate.
Senate Majority Leader Arlan Meekhof, R-West Olive, told the Detroit Free Press that roads are a higher priority for the state.
Some lawmakers are considering state-based health exchanges (SBE) as “insurance protection.” An upcoming U.S. Supreme Court ruling in King vs. Burwell could strike down the ACA insurance subsidies in states that have not established a state exchange (including Michigan). State lawmakers should be cautious as this “solution” has a well-established track record of costly failure.
By Jack McHugh
House Bill 4605, House GOP road package: Passed 62 to 47 in the House
To earmark a portion of state income tax revenue to road funding, starting with $192 million in 2016 and increasing to $717 million in 2019.
According to the House Fiscal Agency, this and other bills in the House package would generate an additional $1.163 billion in annual road repair funding by 2019 with just modest tax increases (see House Bill 4615 below). Given projected increases in income tax revenue over that period, with the road funding package the amount of general fund dollars available for other (non-road) spending would increase by $355 million in 2019, versus an increase of $1.137 billion without the package.
Imagine a couple new startups begin offering a brand new service in Michigan. These companies innovatively use new technologies to meet consumers’ needs in real-time and transform ordinary workers into entrepreneurs. Pretty soon, however, some raise concerns about customer safety regarding this new service. Now imagine the Michigan Legislature quickly jumps into action (a stretch, I know) and proposes new regulations aimed at protecting consumers.
A new report from the Citizens Alliance on Prisons and Public Spending lays out some quality reforms that would help pare down Michigan’s vast criminal system. Many of the ideas would save taxpayer money and are commonsense reforms that will not endanger the public. In total, the report estimates that Michigan could reduce its prison population by around 10,000 and save $250 million annually.
As the Michigan Legislature has a real discussion about how much money in special tax credits and subsidies it should be handing out, supporters of the Michigan Economic Development Corporation are defending its existence.
The entity has agreed to deals that return little to the state, though it argues that things have changed.
Staff at Gawker Media recently announced plans to unionize, launching speculation on the role of unions in today's economy.
F. Vincent Vernuccio contributed to the New York Times June 9 “Room for Debate” on the subject, arguing that the union will be most successful if it abandons traditional union practices and acts in a way that will reward creativity and individuality.
Gov. Scott Walker recently announced plans to reform the tenure system at public universities in Wisconsin, allowing tenured professors to be fired if budget cuts or other issues require it.
F. Vincent Vernuccio, director of labor policy at the Mackinac Center, joined Fox Business June 8 to discuss the changes and what they would mean for the University of Wisconsin.
The largest portion of the Michigan House Republican road funding plan earmarks a portion of state income tax revenue. This has been criticized as unfeasible because it allegedly relies on future revenue growth. The plan, however, is not contingent on revenue increases. Growth is expected, but the plan does not rely on it.
Recent numbers indicate the Pure Michigan campaign doesn't deliver the return on investment suggested by organizations like the MEDC -- in fact, Director of Fiscal Policy Michael D. LaFaive suggests the hotel and motel industry sees $0.01 of increased business for every $1.00 spent on Pure Michigan.
Last month, the Missouri General Assembly passed right-to-work legislation. Although Gov. Jay Nixon vetoed the bill earlier in June, the General Assembly is poised for a possible override this fall to make Missouri the 26th right-to-work state in the union.
A joint study released earlier this year by the Mackinac Center and the Manhattan Institute discusses the problem of overcriminalization in Michigan. Michigan has more than 3,000 criminal statutes, making it difficult for the average citizen to know if their actions are illegal.
Michigan spends $1.5 billion per year on public universities, with most of the money coming out of the general fund. These funds are appropriated to the state’s 15 public universities in an arbitrary way, with huge disparities in the amount handed out per pupil.
By Jack McHugh
Senate Bill 133, Adopt state budget for next year: Passed 22 to 16 in the Senate
The non-education portion of the state government budget for the fiscal year that begins on Oct. 1, 2015. This would appropriate $38.6 billion, compared to $37.3 billion this year. Of this, $17.4 billion comes from state tax and fee revenue (compared to $17.5 billion this year) and the rest is federal money. With education spending (next bill) this comes to $54.4 billion, up from $53.1 this year.
According to Bridge Magazine, some teacher accountability advocates are upset at a proposal to give school districts more control over how teachers are evaluated. The issue, reports Bridge writer Ron French, is that legislation put forward by Sen. Phil Pavlov, R-St. Clair, would not impose statewide criteria for districts to use when evaluating teachers.
