By Ben DeGrow
As the Detroit Free Press tells it, Michigan should be concerned about a new study that finds for-profit charter operators get worse results than their nonprofit counterparts. But an in-depth analysis of the data used for the study actually shows most Michigan for-profit operators doing significantly better than average.
On May 13th, children from around metro Detroit gathered at the Detroit Historical Museum for the second annual Detroit Children’s Business Fair.
The event, hosted by the Mackinac Center for Public Policy and Junior Achievement of Southeastern Michigan, allowed children to sell goods to customers for real money. Testing their hand at being an entrepreneur, kids could win prizes for creativity, originality and business potential, and to get advice from a panel of expert judges on ways they might improve.
The following is testimony prepared for the Michigan Travel Commission at its June 22 meeting in Muskegon, Michigan. The Commission is charged with the mandate to “promote, maintain and develop the orderly growth of the Michigan travel industry” and is required to take testimony regarding policy adoption or adaption “from a broad cross section of travel interests.”
Traverse City is exploring investments in public broadband internet. Past experience teaches us that it should be very cautious about doing so.
Initially, a public entity was reportedly thinking about building a fiber internet line and becoming an internet service provider. The chairman of Traverse City Light & Power says the organization is still in the process of making that decision. New evidence suggest there are many ways for these types of deals to go wrong.
By Jack McHugh
House Bill 4647, Overhaul school employee retirement system: Passed 55 to 52 in the House
To replace the current school pension system with one that requires more cost-sharing by new employees, and contains provisions intended to limit state management practices responsible for the $29.1 billion of unfunded liabilities in the status quo system. New employees could choose instead to receive substantial employer contributions to 401(k) accounts. If the overhauled defined benefit component is not properly funded then enrollees would have to pay half the cost of correcting this, and if underfunding exceeds specified levels this option would be closed to new hires.
By Ben DeGrow
New Detroit Public Schools Community District Superintendent Nikolai Vitti has said he wants to pursue a “student-first state and local policy agenda” for the troubled district. Renegotiating the teachers union contract gives him an early opportunity to work toward a truly student-first agenda.
"When I use a word," Humpty Dumpty said, in rather a scornful tone, "it means just what I choose it to mean—neither more nor less."
"The question is," said Alice, "whether you can make words mean so many different things."
"The question is," said Humpty Dumpty, "which is to be master—that's all."
Editor's note: The following is a transcript of the testimony given by Jarrett Skorup, a policy analyst at the Mackinac Center for Public Policy, on June 14 before Michigan House Tax Policy Committee.
In February of this year, the House Republican Action plan said this, in regards to economic policy:
State lawmakers are once again rushing to embrace another program designed to benefit a few at the expense of the many. The new proposal is known colloquially as “Good Jobs for Michigan” but if history is any guide, it will produce few of note. It is a state “tax capture” program loosely modeled on the state’s failed multibillion dollar corporate welfare subsidy program known as MEGA, and it could be passed as early as this summer.
In endorsing a proposal to give businesses more subsidies, The Detroit News says that failing to pass this package “stunts not just job creation, but the state’s population growth as well.” But that assumes the proposal will help the state economy and fails to consider the full costs of this subsidy program.
By Jack McHugh
Senate Bill 343, Give students government predictions related to careers: Passed 37 to 0 in the Senate
To require school districts to give students a regional “career outlook” forecast document created by a government "Bureau of Labor Market Information and Strategic Initiatives." This would be part of a process that seventh-graders must undergo of creating an "educational development plan" with school officials.
(Editor's Note: The following is an edited version of a speech given by Michael LaFaive to the Florida chapter of Americans for Prosperity on June 8, 2017. Some of the language used here was taken from previously published remarks or essays.)
There are few areas of research where I find such widespread agreement in academic and other studies than those involving targeted “economic development” programs. In short, so-called development programs run by governments are ineffective and expensive. They don’t work, they’re unfair to those who pay full freight, cost billions of dollars that could be better used elsewhere and are potentially corrupting.
By Kahryn Riley
A 15-year battle to repeal some of the few mandatory life sentences remaining on the books in Michigan could soon be won as the Legislature considers a package of bills. The issue has seen liberals and conservatives aligned.
Mandatory sentences are different from the typical way courts decide a punishment for a crime. First, let’s describe how sentencing usually works.
Taxpayers are paying $2.5 billion more each year than they should for state-mandated school employee pensions. Lawmakers are getting heavy pushback on a bill that would fix this over time. The people that are fighting against this should actually support the effort.
By Jack McHugh
House Bill 4184, Restrict local government “phone-in” voting: Passed 96 to 12 in the House
To restrict members of an elected public body casting a vote without being physically present. This would be allowed in one meeting per year per member, if the individual is absent for what other members deem to be good cause. It would also be allowed if a delay on a personnel or infrastructure issue could raise costs or liability.
By Kahryn Riley
“There are some evil people out there – but most aren’t.” So says Rob Worsley, the executive director of Midland Community Former Offenders Advocacy and Rehabilitation, located in Midland, Michigan.
Worsley, an Army veteran, has more than 37 years of experience working with offenders in law enforcement, jail administration and the Michigan Department of Corrections. He started the Midland organization after working for the Michigan Prisoner Re-entry Initiative. During its tenure, the initiative gave local agencies funding to help ex-offenders find housing and employment when they return home. But it was replaced by a more centralized program run by the Michigan Department of Corrections that uses state re-entry money on in-prison programming.
By Ben DeGrow
During his first day on the job, Detroit Superintendent Nikolai Vitti was greeted with concerns about the district’s high number of teacher vacancies that have left many students without a full-time teacher. The new schools chief has a number of tools at his disposal, while state lawmakers could provide even more.
By Kahryn Riley
If you’re planning a party this summer, don’t let an out-of-state relative offer to stock your bar. The Michigan House passed a set of bills on Thursday that will create new civil and criminal penalties for individuals who bring too much alcohol into the state without a liquor distributor’s license.
Editor's Note: These remarks were originally given before the Florida Tax Watch Spring Board Meeting on May 26, 2017.
Thank you. It’s a pleasure to be here today to talk about economic development. There are few areas of research where I find such widespread agreement in academic and other studies. In short, state and local “development” programs are ineffective and expensive. They don’t work, they’re unfair to those who pay full freight, and cost billions of dollars that could be better used elsewhere.
By Jack McHugh
Senate Bill 249, Ban government discrimination against charter schools in property sales: Passed 25 to 13 in the Senate
To prohibit a school district or local government from refusing to sell property to a charter or private school, or taking other actions designed to keep these potential conventional public school competitors from using property for a lawful educational purpose. Prohibited actions could also include imposing deed or zoning restrictions. A number of local governments and conventional school districts have adopted such restrictions in the past.
Michigan lawmakers might offer new school employees defined-contribution, 401(k)-style retirement benefits instead of defined-benefit pensions. The state-run pension system’s managers in the Office of Retirement Services contend that this will generate large and unavoidable “transition costs.” But their reasoning for defending the status quo suggests that they are more interested in pressuring lawmakers away from reform than in maintaining a well-funded pension system.
By Ben DeGrow
Last summer’s release of a $400,000 taxpayer-funded study generated a number of headlines proclaiming that Michigan schools received insufficient funding.
“The adequacy study released today proves what many of us in public education have been saying for years: Michigan’s education funding is inadequate, and it’s harming student performance,” Michigan Education Association president Steve Cook told Michigan Radio.
By Jack McHugh
Senate Bill 337, Criminalize female genital mutilation of minors: Passed 37 to 0 in the Senate
To make it a crime subject to 15 years in prison to perform a clitoridectomy, infibulation, or other female genital mutilation on person less than age 18. Claims that the procedure is required by custom or ritual would be explicitly excluded as a defense to prosecution.
The largest fiscal issue facing the state of Michigan is retiree benefits. For decades, the state and local municipalities have promised more retirement benefits to employees than they have set aside to pay for.
Gov. Rick Snyder and the Legislature are debating what to do about this. There is nothing inherently wrong with pension systems — the problem is that politicians simply don’t fund them and instead pass the costs of today’s government onto future taxpayers. For example, the state has saved $29 billion less than what is needed to fund the school employee retirement system and local government pension systems are similarly underfunded. That being the case, state and local governments should shift new employees to 401(k)-type plans, which pay the full cost of retiree benefits as they are earned and cannot be underfunded and passed along to future taxpayers.
Defined benefit pensions could work just fine for both employers and employees. But government pensions have a major problem: They are ultimately run by politicians who are good at and used to making promises, but also good at and used to passing the bill to somebody else. The consequences of failing to pay the true cost of these promised pensions occur decades into the future, so it’s very easy for politicians to just push the burden onto future taxpayers.
