Studies

Proposal 1 of 2014: Summary and Assessment

Download the full study here.
On Aug. 5 Michigan voters will be asked to approve or reject Proposal 1, which would modify the state’s personal property tax. The legislation that would go into effect if Proposal 1 were approved by voters creates three new exemptions for certain businesses that are currently subject to the personal property tax; it does not eliminate the personal property tax. Commercial and industrial businesses with less than $80,000 of personal property will be exempt, and, eventually, all manufacturing personal property will be exempt. These exemptions amount to an estimated $600 million tax cut when fully implemented.
The package of bills includes a mechanism for reimbursing local government units for the revenue lost from these new exemptions. The state would set aside a portion of the statewide Use tax revenue, and use this revenue to reimburse local governments. It is estimated that local governments will be reimbursed for the entirety of the revenue lost due to the personal property tax cuts.
The state would also levy a new, but relatively small, tax on manufacturing personal property that qualifies for one of the exemptions described above, except the small parcel exemption. The state estimates this to raise $117.5 million, making the overall net tax cut of the legislation package worth about $500 million. … more
S2014-02

Roadblocks to Reform?: A Review of Union Contracts in Michigan Schools

This study focuses on Public Act 103 of 2011, which made teacher evaluation, layoff policies and teacher placement prohibited subjects of bargaining, among other things. After surveying 200 Michigan school district collective bargaining agreements, this study finds that as many as 60 percent of districts could have collective bargaining agreements in place that contain language prohibited by PA 103.
Some districts negotiated with their unions to add language stating that if circumstances changed, pages of prohibited language would take immediate effect. Others simply changed the word “teacher” in order to keep the prohibited language but have it apply to other staff members. Finally, some districts appear to have kept prohibited language without explanation.
This study includes further examples and lists of districts that kept the prohibited language in their contracts. As a solution, penalties could be added to the collective bargaining reform laws in order to encourage district compliance. … more
S2014-01

Michigan School Privatization Survey 2013

Michigan’s school districts have saved money by turning to the private-sector to provide support services. This 2013 survey shows that 65.5 percent of districts now contract out food, custodial or transportation services to private-sector vendors. This is an increase from 31.0 percent in 2001. The survey covers the three services, satisfaction and insourcing among Michigan’s public school districts and has been performed in 2001, 2003, and annually since 2005. … more
S2013-11

The Public School Market in Michigan: An Analysis of Schools of Choice

This study examines the use of Schools of Choice throughout Michigan over the last decade. Nearly 100,000 Michigan students use Schools of Choice to attend a school outside of the district in which they live. Participation has grown steadily, with enrollment growing by 144 percent over the past 10 years.
This study finds that students enter districts that have higher graduation rates and higher test scores. On average, Schools of Choice students chose districts with higher pupil-teacher ratios, lower expenditures per pupil and higher average teacher salaries.
 … more
S2013-12

A New Turnaround Model: Michigan's Highland Park Goes Charter

This brief examines the series of events that led to the Highland Park school district being converted to a system of charter public schools in 2012. Used as a strategy to help the district eliminate its large fiscal debt while still providing resident students with a local public school option, Highland Park's charter conversion is one of the first of its kind in the state and even the nation.
During the first year of charter school operation, students demonstrated significant learning gains, with some grades posting academic growth far above the average Michigan student. … more
S2013-10

Criminal Minds: Defining Culpability in Michigan Criminal Law

The Mackinac Center for Public Policy recently published “Criminal Minds: Defining Culpability in Michigan Criminal Law,” which addresses the element of intent in Michigan statutes and case law. The policy brief is authored by Mackinac Center Executive Vice President Michael Reitz.
Conviction of a crime traditionally required a combination of a wrongful act and criminal intent. But frequently the criminal code is used for regulatory purposes, and those laws often omit a requirement that the prosecution prove the existence of criminal intent for a conviction to occur. Consequently, individuals can be charged, convicted and imprisoned for committing crimes without possessing a culpable state of mind — often for behavior a reasonable person would not think of as criminal.
The policy brief proposes a reform that would clarify the element of intent in criminal statutes. If the Legislature enacts a criminal statute that is silent on intent, a default intent provision would be incorporated. Such a reform could make for a more orderly criminal justice system and protect the rights of individuals. … more
S2013-09

Electricity Choice Policies in Michigan: Comment on "Readying Michigan to Make Good Energy Decisions: Electric Choice"

This policy brief is written by the Mackinac Center for Public Policy in response to the report issued on Oct. 15, 2013, by the Michigan Public Service Commission titled "Readying Michigan to Make Good Energy Decisions: Electric Choice," (the "Draft Report") authored by Chairman John Quackenbush and Michigan Energy Office Director Steve Bakkal.

Between the years 2000 and 2012 two distinct changes emerged. Between 2000 and 2008 new suppliers were allowed to start entering the Michigan market and competing with incumbent utilities. Between 2008 and 2012 competition was restricted to guarantee a 90 percent market share for the largest utilities. The analysis of these two periods suggests that market competition tends to bring innovation and lower prices to Michigan electricity consumers, while monopolistic policies tend to raise prices. Michigan should once again embrace opening its electricity market to more entrants to see if they can perform better than the incumbent firms, which will drive down prices for electricity consumers. Michigan allowed such competition to start to emerge during its brief era of Full Customer Choice, and the early results were promising. The initial results from a more tightly regulated and protectionist experiment have been by contrast disappointing.

A video recording of the January 22, 2014 Issues and Ideas Forum featuring the author discussing the topic of expanding the electricity market can be viewed here… more
S2013-08

Benefits in Balance: Benchmarking Public Sector Employee Benefits in Michigan

This policy brief reviews the growth of Michigan’s state and local government expenditures from 2000 to 2010 and finds that government employee contributions, particularly the cost of employment benefits, were a primary contributor to the increase in spending. This brief explores the kinds of employment benefits that can be received by employees, as well as the recent changes made to benefits in the government and private sectors. It finds that bringing benefits in line with private-sector averages would save Michigan $5.8 billion and provides recommendations for implementing this policy. … more
S2013-07

Michigan's Top-to-Bottom Ranking: A Measure of School Quality or Student Poverty?

This study examines the state’s “Top-to-Bottom” ranking, which has been repeatedly criticized by educators for appearing to be correlated with school poverty rates. Mackinac Center research finds that schools that serve more lower-income students tend to receive lower scores on the TTB list.
These results matters because TTB rankings are used to impose consequences on low-ranking schools. This study suggests that Michigan should look at how other states rank schools in an attempt to reduce the likelihood of penalizing schools that serve lower-income students. It also makes the case that a choice-based accountability system is preferred, as it would allow students to escape schools that are not serving their needs and reduce the risk of penalizing undeservedly low-ranked schools. … more
S2013-05

Economic Growth and Right-to-Work Laws

This study aims to measure the impact of right-to-work laws on states’ economic performance. It uses average annual growth rates in employment, real (inflation-adjusted) personal income and population to measure the economic well-being of right-to-work states. On the whole, the results of this analysis show that right-to-work laws have a statistically significant and economically meaningful positive impact, although the results vary. … more

Guarantee of
Quality Scholarship

The Mackinac Center for Public Policy is committed to delivering the highest quality and most reliable research on Michigan issues. The Center guarantees that all original factual data are true and correct and that information attributed to other sources is accurately represented.

The Center encourages rigorous critique of its research. If the accuracy of any material fact or reference to an independent source is questioned and brought to the Center’s attention with supporting evidence, the Center will respond in writing. If an error exists, it will be noted in a correction that will accompany all subsequent distribution of the publication. This constitutes the complete and final remedy under this guarantee.