An article currently appearing on MichCapCon.org and Mackinac.org describes how 72 of the likely winners in 81 races for open Michigan state House and Senate seats are already members-in-good-standing of the bipartisan political class. These include 61 current or former office-holders, eight current or former political staffers, several relatives of legislators, and others who have been government or school officials or employees.
The Legislature did not meet this week. Because there were no votes, this report instead contains several newly introduced bills of interest.
Senate Bill 1531 (Impose new regulations on natural gas “fracking” extraction)
Introduced by Sen. Liz Brater (D) on September 29, 2010, to impose groundwater discharge permit regulations, fees, permit requirements, etc. on the use of "hydraulic fracturing" to extract natural gas. This new technology reportedly has more than doubled the amount of known domestic gas reserves. See also the Brater amendment to Senate Bill 1177, defeated on a party-line vote, which would have banned “fracking” altogether in Michigan. Referred to committee, no further action at this time.
In an interview with The Detroit News, gubernatorial candidate Virg Bernero said, "One of the reasons we lose kids to the private school system is because of discipline."
"Losing" kids is an interesting way for Bernero to describe families who choose to opt out of the public school system, since he himself was primarily educated at a non-public school, and also chose one for one of his children.
A Saginaw company under fire for problems associated with its application for tax subsidies in Michigan says it will partner with a Colorado company on a solar module project, according to WJRT-TV 12 in Flint.
GlobalWatt has been the subject of controversy since a Mackinac Center investigation found problems with economic development information about the company both in Michigan and in Texas.
There has been very little innovative thinking on energy policy by political leaders in Michigan in recent years. The status of energy policy in the state could best be described as: let's just follow the pack by pursing alternative energy and green jobs. How has that worked out for us? Not very well as Michigan continues to lose population and jobs with the state's unemployment rate the second highest in the nation. Studies coming out of Europe have shown government mandates and subsidies to promote alternative energy come at a high price both in terms of higher energy costs and loss of jobs in other sectors of the economy.
"Democrats are making a pre-election pitch to give Social Security recipients a one-time payment of $250, part of a larger effort to convince senior voters that their party, and not Republicans, will best look out for the 58 million people who get the government retirement and disability benefits." — Associated Press
Today's Grand Rapids Press adds important details to a story Michigan Capitol Confidential reported on Oct. 13 about Kevin O'Neill, superintendent of the Coopersville School District, whose annual compensation totals $311,034. That's the third-highest in the state and comes to $120 per student in the district of 2,600. The Press's Dave Murray reports today that when the paper asked local school districts in 2009 to report how much they paid their superintendents, Coopersville and O'Neill under-reported his 2008 pay by $40,000.
Mackinac Center President Joe Lehman explains why a constitutional convention is not the answer to Michigan's fiscal, labor and regulatory problems in this Op-Ed in the Detroit Free Press today.
He addresses the issue more in-depth here, while Senior Legislative Analyst Jack McHugh addresses it here.
Big news was made recently when McDonald's announced it may have to end its "mini-med" healthcare plans that cover nearly 30,000 employees. These low-cost, limited benefit plans are aimed at temporary workers designed for companies with high worker turnover. As a result, the overhead costs are too high as applied under ObamaCare regulations.
"Hydraulic fracturing" or "fracking" is a new natural gas extraction technnique that promises to revolutionize America's energy future. Until just a couple years ago gas reserves had been falling here and the country was on track to becoming a net importer. Almost overnight the new method has miraculously turned that around, and now reserves of this clean-burning fuel are projected to cover current consumption levels for as much as a century. This is truly fabulous news for our nation.
The greatest power of government to affect the daily lives of Americans may be wielded by federal, state and local regulatory officials who never stand for election. Environmental regulatory actions by the U.S. EPA serve as a stark reminder of the power of the administrative state. EPA utilizes rulemaking and administrative fiat to determine the kind of vehicles we drive, how much we pay for energy to heat our homes and power our factories and what types of appliances and light bulbs we can buy.
Many school boards around the state are attempting to renegotiate current contracts or negotiate new ones with their local teachers unions to contain costs. Here's a brief recap of some of the new contracts agreed to recently.
North Muskegon: Under a new two-year contract teachers will get a 2 percent across-the-board salary increase this year and either a 1.5 or 2 percent increase in 2011-2012. The second year raise is dependent on the district's fund balance level. Teachers will still contribute nothing toward to the cost of their own health coverage, which includes medical, vision, dental and life insurance; those covered under a spouse's insurance will continue to get a stipend equal to the cost of a one-person plan. However, a $5/$10 prescription drug co-pay will increase to $10/$20. In 2009, health insurance coverage cost the district $15,761 per employee. For more information, click here.
This recent Michigan Capitol Confidential story by Managing Editor Ken Braun formed the basis for this editorial in The Detroit News.
The article documents how Gov. Jennifer Granholm and the Michigan Legislature raid special funds that are paid for with user fees in order to use the money in the general fund to solve overspending crises that governor and legislators themselves create.
Oakland County Executive L. Brooks Patterson was the keynote speaker Thursday night at an event sponsored by the Mackinac Center in metro Detroit.
The Oakland County Examiner interviewed him prior to his talk, which was titled "What Michigan's Next Governor Can Learn From Oakland County."
WPBN-WTOM Channels 7&4 in Traverse City is reporting that the Mackinac Center Legal Foundation has filed a motion for reconsideration with the Michigan Court of Appeals in an effort to end the illegal, forced unionization of home-based day care operators.
The average teacher salary in Charlotte Public Schools was $52,408 in 2009, and most teachers paid less than 2 percent of the cost of their health insurance premium. The district also pays between $300 and $500 per month to employees for simply not enrolling in the school health insurance plan. These are among the highlights in the current collective bargaining agreement negotiated between the district and the local arm of the Michigan Education Association union.
Detroit's current "light rail" system has been called a "Horizontal Elevator to Nowhere" and the "least cost-effective transit project in the last 20 years." So what's the response to this epic disaster of central planning from the political class? To build more, of course.
The National Taxpayer's Union has just released a 2010 election guide called "The Taxpayer's Perspective" that lists every local millage election in the states by county. Each is given a "plus" or "minus" sign rating based on whether it "could lower taxes or control government" or "raise taxes or expand government." The report is online here; scroll to "Michigan."
On Wednesday, the U.S. Environmental Protection Agency announced that it will allow an increase from 10 percent to 15 percent in the amount of ethanol blend in gasoline. The catch: The 15 percent blend is only for light passenger vehicles manufactured in 2007 or later. This is certainly good news for mechanics, who can expect more engine repair work when confused motorists inadvertently pump E15 fuel into older cars that are not designed to handle fuel with this much ethanol. Ethanol is more corrosive than gasoline, and a higher blend of the corn-derived fuel is likely to damage older engines. It is unclear that even motorists with newer vehicles will want to use E15, since it would void their warranties unless their vehicle is E85 capable. One can only imagine how many lawsuits will be filed by angry drivers.
The average teacher salary in Forest Hills Public Schools was $64,460 in 2009, and teachers contributed nothing towards the cost of their health insurance (the state average is about 20 percent). The district also pays $41 per month to teachers who do not enroll in the school health insurance plan. These are among the highlights in the current collective bargaining agreement negotiated between the district and the local arm of the Michigan Education Association union.
By now the main themes of 'Waiting for Superman' should all be familiar to Mackinac Center’s readers: the overwhelming bureaucracy one inevitably finds in any large government operation, the perverse incentives – disincentives really – created by tenure, the pitfalls of monopolization, and above all the brooding omnipresence of teachers unions. Director Davis Guggenheim adds some new examples and a few details that are worth the time, but the really interesting thing about Superman is the implications for progressives, who appear to be approaching a time for making painful decisions.
The city of Pontiac has announced it intends to disband its own police force in favor of contracting out with the Oakland County Sheriff, an idea first recommended by the Mackinac Center in 2006.
The Detroit News today is reporting today that the transition to Oakland County policing could occur as early as December. The city is expected to save $2 million annually. This is far from the first instance of a municipality contracting with a county Sheriff for police services. Several cities in Oakland County already do, and the Macomb city of Mt. Clemens told the Mackinac Center that doing so kept the city from dire financial straits.
The total compensation for 165 teachers in the Garden City Public Schools exceeded $100,000 in 2009, and employees make zero contribution to the health insurance provided them by the district, which for a family plan runs about $18,400. These are among the highlights in the current collective bargaining agreement negotiated between the district and the local arm of the Michigan Education Association union.
Michigan and local taxpayers provided the West Bloomfield School District with more than $13,500 per student in 2008-2009, yet it still faces a $1.7 million deficit this year and $3.8 million next year. Employee compensation makes up 85 percent of the budget, so the district has asked teachers to help close the gap with revisions to their union contract. Their response was to picket, which they did Monday night.
The Washington Examiner and San Jose Mercury News both recently cited Mike LaFaive, director of the Morey Fiscal Policy Initiative, about the need for transparency within government-run economic development programs.
LaFaive has addressed this issue before, including in a policy brief titled "MEGA, the MEDC and the Loss of Sunshine." Other Center analysts have written about the problem, including here and here.
