By Jack McHugh
On March 11, 2015, the Michigan House of Representatives voted 58‑51 to pull the plug on an “incentive” program that since 2008 has distributed some $500 million in state tax dollars to film-production companies.
According to the federal Bureau of Labor Statistics, Michigan had 1,663 full-time film-industry jobs in 2008, and 1,561 in 2013 (the latest year information is available), a decline of 102 jobs.
The Michigan House recently passed House Bill 4122 which would end the state’s film incentive program. The legislation now moves on to the Senate.
But Senate Majority Leader Arlan Meekhof, R-West Olive, has raised concerns about ending the subsidy. And Gov. Rick Snyder, who previously proposed eliminating the subsidies, now says he doesn’t believe ending the program abruptly is an “appropriate answer.”
The Washington Legislature appears again poised to go to the cigarette excise tax well. A proposal to hike the state’s excise tax by another 50 cents — to $3.52 per pack — would exacerbate an already large smuggling problem and offer little in the way of gains to public health.
In 2011, left-wing filmmaker Michael Moore sat on the advisory council for the Michigan Film Office. The office is in charge of determining what productions will receive the hundreds of millions of dollars that have been sent from state taxpayers to mostly out-of-state moviemakers since 2008.
Director of Fiscal Policy Michael LaFaive is quoted in Los Angeles Times on the subject of foreclosure in Detroit. According to the article, 62,000 Detroit property owners are facing foreclosure due to falling behind on the city’s high property taxes.
A recent Washington Times opinion piece by Director of Labor Policy Vincent Vernuccio and Brett Healy, president of the John K. Maclver Institute in Wisconsin, is cited in Forbes for supporting evidence for the benefits enjoyed by right-to-work states. On Monday, Wisconsin became the nation’s 25th right-to-work state.
Starting today, Taylor teachers are no longer constrained by a 10‑year union “security” agreement, and may opt-out of financially supporting the union if they wish. A request by the Taylor Federation of Teachers and the Taylor School District to place a hold on the ruling, pending the ruling’s appeal in court, has been denied.
By Jack McHugh
Now with one click you can approve or disapprove of key votes by your legislators using the VoteSpotter smart phone app. Visit votespotter.com and download VoteSpotter today!
Senate Bill 86, Authorize more local pension debt: Passed 38 to 0 in the Senate
Research conducted by Assistant Director of Fiscal Policy James Hohman appeared in the Wall Street Journal this week. The article, titled "The Right-to-Work Advantage," discusses the economic advantages and freedom-based benefits that lead states to adopt right-to-work policies. Hohman’s research found that “right-to-work states have 4.1 percent higher per-capita personal incomes than non-right-to-work states” once cost of living is factored in.
The House Tax Policy Committee voted 8-3 to end Michigan’s $50 million per year film incentive program. The vote passed House Bill 4122 out of committee and it is on to the full House.
The bill was supported by Rep. Jeff Farrington (R-Utica), Rep. David Maturen (R-Brady Twp.), Rep. Patrick Sommerville (R-New Boston), Rep. Ken Yonker (R-Caledonia), Rep. Martin Howrylak (R-Troy), Rep. Lee Chatfield (R-Levering), Rep. Gary Glenn (R-Midland), and Rep. Brandt Iden (R-Portage). It was opposed by Rep. Jim Townsend (D-Royal Oak), Rep. Bill LaVoy (D-Monroe), and Rep. Wendell Byrd (D-Detroit).
Vice President for Legal Affairs Patrick Wright was a guest on the “The Frank Beckman Show” of WJR Radio to discuss the Mackinac Center’s investigation of the MEA President Steve Cook’s pension. Steve Cook appears to be earning a taxpayer-funded pension as an “employee” of the Lansing School District, despite not performing any duties under the school district.
Director of Labor Policy Vincent Vernuccio and Brett Healy, president of the John K. Maclver Institute in Wisconsin, coauthored an opinion piece that appeared in The Washington Times. The authors discuss the effects stemming from right-to-work passage in Michigan and Indiana.
By Jack McHugh
Senate Bill 71, Extend, expand job training subsidies to some employers: Passed 37 to 0 in the Senate
To eliminate the $50 million debt cap in a 2008 law that authorized state job training subsidies for particular employers, provided through community colleges. Other bills in the package would make this program permanent, and prohibit companies granted subsidies under a different program (see next bill) from “double dipping” by taking subsidies from both programs.
Assistant Director of Fiscal Policy James Hohman is quoted by the Detroit Free Press, Grand Rapids Press, Lansing State Journal, Livingston Daily, WLNS, and HometownLife.com on the ineffectiveness of Michigan’s film incentive program. The House Tax Policy committee continues to debate a bill that would repeal the film incentive program.
(The following is a transcript of the testimony given by Michael LaFaive, director of the Morey Fiscal Policy Initiative at the Mackinac Center for Public Policy, on February 26, 2015, in front of a Minnesota Senate Tax Committee.)
Good morning. My name is Michael LaFaive and I am director of fiscal policy for the Michigan-based think tank, Mackinac Center for Public Policy. I was invited to speak today by the Minnesota Wholesale Marketers, Grocers and Retailers Associations, respectively.
The Mercatus Center at George Mason University has a new working paper looking at the effects of occupational licensure in the area of opticians. The results show the problems of state licensing in a variety of areas.
From 1950 to today, it is estimated that the percent of occupations now requiring a license has risen from five percent to 30 percent. In other words, the percent of occupations which require people to pay a fee to the state or take mandated classes has risen six-fold. According to Dr. Morris Kleiner of the University of Minnesota, most of this licensing drives up costs for consumers but does not lead to better health and safety results.
(The following is a transcript of the testimony by F. Vincent Vernuccio, director of labor policy, on Feb. 24, prepared for the Wisconsin Senate Committee on Labor and Government Reform.)
Chairman Nass, members of the Senate Committee on Labor and Government Reform, I am F. Vincent Vernuccio, director of labor policy for the Mackinac Center for Public Policy, a nonpartisan research and educational institute based in Midland, Mich.
On Feb. 24, 2015, Director of Labor Policy F. Vincent Vernuccio testified before the Wisconsin Senate labor committee. Wisconsin is currently considering right-to-work for the public and private sectors. You can watch his testimony below or read his prepared testimony here.
Electricity choice in Michigan is under attack again this year. The two big utility companies are investing heavily in an advertising campaign and contract research. Ultimately, they’d like to eliminate market competition and force all consumers to buy only their electricity. The facts are, however, that electricity choice in Michigan has a track record of driving down rates, and electricity consumers will be worse off if the state enlarged the utilities’ monopoly.
In some states, workers who chose to leave their unions continue to have dues deducted from their paychecks. Illinois Gov. Bruce Rauner recently signed an executive order ending this practice.
F. Vincent Vernuccio, director of labor policy at the Mackinac Center, discussed the issue with Heartland for an article published February 23.
There are too many school districts, according to state officials. Even though student enrollment is declining, more school districts open every year, these officials say, putting existing districts under financial pressure.
Though this may seem like a school finance and administrative issue, the “too many school districts” narrative is often used to criticize charter schools. Juxtaposing Michigan’s decreasing enrollment with the rising number of school districts (entirely driven by charter schools) is just a way to complain about the fact that more charter schools are opening.
Even with Michigan’s right-to-work law, workers do not have full freedom. In bringing true fairness to both unions and workers, Michigan has the power to give public workers a complete choice when it comes to associating with a union, while at the same time lifting government unions’ burden of representing nonmembers.
By Jack McHugh
Senate Bill 54, Ban using a drone to interfere with hunters: Passed 38 to 0 in the Senate
To prohibit using an aerial drone to interfere with or harass a person who is hunting. This would expand an existing law that bans interfering with or harassing hunters. Senate Bill 55 bans using a drone for hunting and also passed unanimously.
From 1995 to 2011, Michigan ran a program that granted special tax exemptions to chosen companies. The research on this program – the Michigan Economic Growth Authority – has been pretty consistent: It was a failure.
The Mackinac Center did two studies on MEGA; a 2005 study showed that the few jobs “created” from the program were temporary and expensive and a 2009 study found that it had an overall negative impact on Michigan’s economy. The Michigan Office of the Auditor General has found repeated problems with state “economic development” programs over-promising and under-delivering. The Anderson Economic Group found a negative impact on job creation. The only favorable study was done by the Upjohn Institute, but even that found only a very small positive economic effect and that the actual MEGA program was almost incidental to the state’s economy. A recent review of the program showed that only 2.3 percent of the projects given tax credits ever met their job projections.
Members of the Michigan House of Representatives today announced efforts to reform the state’s criminal laws. The efforts will be spearheaded by a working group, co-chaired by Rep. Chris Afendoulis, R-Grand Rapids Township, and Rep. Kurt Heise, R-Plymouth.
