The MC: The Mackinac Center Blog

September 12, 2014, MichiganVotes Weekly Report

Business tax, "bad driver" tax & more "shadow government"

Senate Bill 156, Reverse effect of Supreme Court business tax ruling: Passed 34 to 3 in the Senate

To clarify the intent of provisions in the Michigan Business Tax enacted in 2007, so as to reverse the effect of a recent state Supreme Court ruling (IBM v. Treasury) that reportedly would force the state to refund more than $1 billion to many companies headquartered outside this state. The case involved the interaction of MBT provisions with a separate multistate Tax Compact entered in 2006. (The MBT was repealed in 2011 but is still in effect for certain companies awarded state subsidies and tax breaks under its provisions).

Who Voted "Yes" and Who Voted "No"

Senate Bill 633, Allow community service to cover some “bad driver” fees: Passed 110 to 0 in the House

To allow a person to do 10 hours of “community service” in lieu of paying a state “bad driver fee” for certain offences, including driving without a license and failing to have or produce proof of insurance. The fees for these particular offences were repealed by a 2011 law, so the bill would apply only to individuals who incurred and failed to pay them in the past. These very high, revenue-raising fees were originally imposed in 2003 to avoid spending cuts in that year’s and subsequent state government budgets. A law enacted earlier in 2014 would gradually phase out the fees imposed for additional offenses.

Who Voted "Yes" and Who Voted "No"

Senate Bill 758, Authorize more stringent sanctions for delinquent hotel tax: Passed 97 to 13 in the House

To empower counties that choose to impose a tax of up to 5 percent on hotel and motel room charges to enforce the tax with the more stringent sanctions authorized for delinquent “special assessment” levies, which include forfeiture and foreclosure. Under current law, a delinquent owner is liable for a penalty of 25 percent of the amount in arrears plus interest, and up to 90 days in jail.

Who Voted "Yes" and Who Voted "No"

House Bill 4783, Expand a corporate/developer subsidy regime: Passed 83 to 27 in the House

To authorize creation of a seventh “Next Michigan Development Corporation,” which is a government agency that gives tax breaks and subsidies to particular corporations or developers selected by political appointees on the entity's board, for projects meeting extremely broad "multi-modal commerce" criteria (basically, any form of goods-related commerce). Reportedly the new entity will probably be in Detroit. In December, 2013 the legislature enacted a law authorizing a sixth such entity, this in the Upper Peninsula.

Who Voted "Yes" and Who Voted "No"

Senate Bill 156, Reverse effect of Supreme Court business tax ruling: Passed 100 to 10 in the House

The House vote on the bill described above.

Who Voted "Yes" and Who Voted "No"

SOURCE: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit http://www.MichiganVotes.org.

Economic Freedom and Prosperity

Mackinac Center speaker in Oakland Press

Dean Stansel, an economics professor at Florida Gulf Coast University will give a speech on behalf of the Mackinac Center titled “Economic Freedom: What It Is and Why It Matters” at noon on Sept. 16 in Troy. The event is free and open to the public — more information can be found here.

He writes about the topic in the Oakland Press.

Americans’ satisfaction with their freedom to choose what they do in their lives has been on a steady decline in recent years, according to a recent Gallup poll.

Perhaps we feel less free because we are less free: economic freedom across the U.S. has been eroding since 2000, when we ranked second in the Economic Freedom of the World index. We now rank 17th. And, this decline has a huge negative impact on economic prosperity among all income levels — contributing to those feelings of lack of control that the surveys found among Americans.

The financial burden of supporting our government has skyrocketed, saddling taxpayers with the bill. While federal government spending has doubled since 2000 and tripled since 1990, the growth of personal income has lagged, rising by less than half since 2000. Making matters worse, 10 million Americans are unemployed and another 8 million are involuntarily working part-time.

Wright on Sunday Morning Program Talking RTW

Recent decision gives workers greater freedom

Patrick J. Wright, the Mackinac Center’s vice president for legal affairs, was a guest on “Let it Rip” on WJBK-TV2 in Detroit Sunday, discussing a labor law judge’s decision last week that, if upheld, will allow public-sector union members to leave their union at any time. Currently, several unions have arbitrary ‘windows’ that limit members’ freedom to certain times of the year.

September 5, 2014, MichiganVotes Weekly Report

Wolf hunts, golf carts and more licensure

Initiated Legislation 2, Preempt referendum banning wolf hunt: Passed 65 to 43 in the House

To preempt the effect of a referendum placed on the November ballot by interests opposed to wolf hunting. Specifically, this measure (Initiated Legislation 2) - which was sponsored by groups in favor of a wolf hunt - would make “referendum-proof” a 2013 law giving the legislature and Natural Resources Commission exclusive authority to decide which species may be hunted in Michigan. It would do so by making a small change to that law and adding a modest appropriation, which under a 2001 Supreme Court ruling makes the law not subject to referendum. The Senate passed this measure (Initiated Legislation 2) on Aug. 13, and with this House vote the no-wolf hunt measure on the November 2014 ballot will not go into effect, even if a majority of voters approve it.

Who Voted "Yes" and Who Voted "No"

House Bill 5045, Allow local governments to permit golf carts on streets: Passed 103 to 5 in the House

To allow cities, villages and townships with fewer than 30,000 residents to permit the daytime operation of golf carts on streets. A local government could require registration but could not charge a fee for this. However, a county commission could override a municipality's decision and prohibit golf carts on streets.

Who Voted "Yes" and Who Voted "No"

Senate Bill 92, Impose licensure on pharmacy assistants: Passed 101 to 7 in the House

To impose licensure and regulation on "pharmacy technicians" (assistants), with license fees, continuing education requirements, test-taking mandates and more.

Who Voted "Yes" and Who Voted "No"

SOURCE: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit http://www.MichiganVotes.org.

Disdain for Politics Gov. Snyder's Undoing?

An analysis of the gubernatorial race

It is time to reassess Michigan’s gubernatorial race; and flipping a coin might be the best approach to picking the winner. Polls show Gov. Rick Snyder and Democratic challenger former Congressman Mark Schauer neck and neck with Gov. Snyder’s momentum heading downward.

Maybe Gov. Snyder – said by some to be the smartest man in the room – knows precisely what he’s doing. Maybe his advisers have spotted something encouraging in the polling numbers others have missed, but the governor has slipped into a dead heat after being the favorite to win re-election only a few weeks ago.

Gov. Snyder’s problems appear to be multiplying and to a large extent self-inflicted. He has always displayed contempt for letting political expediency impact his decisions. Now, after repeatedly ignoring time-tested political considerations, his re-election is in jeopardy.

When asked if leaders should allow political factors to influence policy, most voters would reply with a resounding “no.” But in reality their assessment of leaders who pay no attention to politics depends on whether they agree or disagree with the result. If they disagree with the policy decision, they’ll usually argue that the leader has defied the will of the voters, or at least an important segment of voters. In other words, voters often want and expect their leaders to consider the political ramifications of their actions.

Upon taking office Gov. Snyder claimed he wanted to change the culture in Lansing. At first, it looked like he was setting about doing so. As time passed, however, his decisions increasingly reflected the very culture he had said needed to be changed. This alone probably wouldn’t have threatened his re-election. But his neglect of the counterweight that traditionally keeps that culture in check just might.

The culture of Lansing is a deeply imbedded government-centric perspective pervading the 10-block radius of the Capitol. From this perspective, the well-being of government and the special interests attached to government is the overriding priority. One element alone mitigates and disciplines this government-centered culture, and that is a healthy fear of voters’ reactions. Leaders must balance the political impact of their decisions along with other considerations; repeatedly failing to do so shuts the voters out of the process. Gov. Snyder may have crossed this line once or twice too often.

During his first year in office, Gov. Snyder rearranged Michigan’s tax and revenue structure. This included the elimination of the tax exemption for pensions – or as it was called “the pension tax.” When the change occurred, many assumed Gov. Snyder would eventually follow up with some kind of general tax cut to remedy any negative long-term political impact. He never did this and is suffering the consequences.

Polling now shows the “pension tax” cutting into his support among senior citizens, a large number of which were not affected by the change, but mistakenly believe they were.

In 2013, Gov. Snyder wanted Medicaid expansion. Polls showed that a majority of Republican voters opposed it. His message could have been that President Barack Obama left him with two bad choices and he’d decided Medicaid expansion was the lesser evil of the two.

Rather than adopting this message, the one chosen was a virtual mirror image of the president’s Obamacare rhetoric. Use of this message was like rubbing salt in the wounds of the political right; unnecessarily intensifying bitterness over the issue.

In June, Gov. Snyder sought to double the state’s fuel tax to create a new revenue stream for fixing and maintaining the roads. The impetus for this came from a coalition of nearly every special interest group in Lansing. Most of these groups had just had their individual priorities taken care of with passage of a $52 billion budget.

Common political sense would advise against attempting to double the fuel tax six months prior to a general election. Taking at least some of the sought-after funds from the budget first might have been politically advisable as well. But the culture in Lansing said: “damn the torpedoes, we want it all now.” Apparently throwing political considerations to the wind, the governor pursued the doomed effort. In the end, all that was accomplished was a magnification of his inability to find a more politically acceptable approach.

In the spring of this election year a group of large businesses and business groups joined in urging the Legislature to expand Michigan’s anti-discrimination Elliott-Larsen Civil Rights Act to include sexual orientation. To many social conservatives, that is a step toward recognition of gay marriage. With friends like these business interests, Gov. Snyder has no need of enemies.

Reluctantly drawn into the debate, he lent his support to adding sexual orientation to the law, risking alienation of an important voting block he might otherwise have counted on. Suggesting the possible change to the Act be placed on the ballot and decided by the voters would have been a politically safer position for him to have taken.

Recent polling shows Gov. Snyder’s support among Republicans has slipped to just 82 percent. Meanwhile, Schauer is undoubtedly beginning to convince potential financial supporters that his gubernatorial bid is worth backing.

(Editor’s note: Jack Spencer is Capitol Affairs Specialist for Michigan Capitol Confidential and a veteran Lansing-based journalist. His columns do not necessarily represent the views of the Mackinac Center for Public Policy or Michigan Capitol Confidential.)

News Coverage of MEA's Illegal 'August Window'

National, international media cite Center expert

More than 200 media outlets nationwide and in other countries are reporting that the Michigan Education Association’s so-called ‘August window’ that limited when members could resign from the union to the month of August has been found illegal according to a labor law judge.

The Detroit News, Detroit Free Press, The Washington Post, the San Antonio News-Express, the San Francisco Chronicle, Salon.com, the Seattle Post-Intelligencer, the San Diego Union-Times, the St. Louis Post-Dispatch, the Minneapolis Star-Tribune, the U.K. Daily Mail, the Winnipeg Free Press, the Las Vegas Sun, the Miami Herald, Townhall.com, CBS Detroit, ABC News, MLive, Huffington Post, and Education Week are among the largest news outlets to carry the story.

Patrick Wright, vice president for legal affairs, also discussed the ruling on "The Frank Beckmann Show" on WJR AM760, on "Capital City Recap" with host Michael Cohen on WILS AM-1320 in Lansing and on WNEM TV-5 in Saginaw.   

Labor Policy Director F. Vincent Vernuccio discussed the matter with WILX TV-10 in Lansing and Michigan Radio.

Michigan Education Digest

Charter oversight, Saginaw pay cut

The newest edition of Michigan Education Digest is now available online. Topics include charter public school oversight, enrollment declines and Saginaw teachers’ pay cut.

Officials Caved to Red Wings on Corporate Welfare

Team should have paid for new arena on its own

Christopher Douglas, an associate professor of economics at the University of Michigan-Flint and a member of the Mackinac Center’s Board of Scholars, writes in Crain’s Detroit Business that the Detroit City Council and state Legislature should have caved to corporate welfare demands made by the Detroit Red Wings for the team’s new arena.

He also wrote about that topic here.

Media Continues Reporting on Teacher Opt Outs

Ten percent of those who could left the MEA last year

The Detroit News, WWMT-TV3 in Kalamazoo and Michigan Radio have all reported recently about teachers seeking to leave the Michigan Education Association under the state’s right-to-work law.

More information can be found at www.Augustoptout.org.

More Teachers Than Ever Now Know Opt-Out Rights

Courageous teachers stood up to MEA bullying

Some of the most courageous people I know are teachers.

Their job requires them to face students, parents, administrators, colleagues and the general public constantly. Their performance receives criticism regularly.

For the past year, we at the Mackinac Center have had the privilege of getting to know some of the bravest teachers in Michigan. They stand for principles rather than power. The organization that is supposed to represent them has chosen not to inform them of their rights.

These teachers faced the Michigan Education Association trying to ruin their credit; they faced name-calling from their peers and even from the president of the MEA, but they stood firm in their strongly held conviction that no one should be fired if they choose not to support a union.

While the Mackinac Center Legal Foundation provided legal support, these teachers stood up when they did not know what the result would be.

For two teachers, the MEA finally recognized their rights to leave despite missing the union’s so-called “August window” that they and many of their colleagues had never heard of before. An MEA official testified under oath that as many as 8,000 members had stopped paying dues.

These individuals blazed a trail for other teachers to learn about the MEA’s formerly non-publicized policy of members being allowed to leave only in the month of August.

Being silent on the matter is one thing, but actively putting up roadblocks to keep members from leaving is quite intentional and wrong.

We’ve seen where the MEA sent a misleading “Nonmember Informed Consent Form” to members who wanted information to get out of the union. The recipient is expected to initial the form 25 times, and even after that, may not have properly opted out of the union.

We’ve seen where locals have made false claims, telling members they would miss out on a benefit if they were no longer financially supporting the union.

Despite having to fight an uphill battle, many MEA members now know the process of opting out of the union due to www.AugustOptOut.org. One of the members told us, “I was pleasantly surprised that dozens of my colleagues had already opted out just as I have earlier this month.”

I left out the name of the now former member because I respect their privacy. However, there have been instances where local unions have tried to shame non-members by making their decision to leave the union public.

Last year, roughly 15,000 MEA members were eligible to stop financially supporting the MEA. About 10 percent did (1,500). This year, 60,000 members are eligible to exercise their rights. The number of members who choose to opt out is not as important as the number of members who now know they have a choice whether to continue to financially support a union. That number is much higher than it was last year.