MSN.com reported recently on a list of recommendations Mackinac Center for Public Policy Fiscal Policy Director Michael LaFaive made 13 years ago that could have saved the city of Detroit billions of dollars.
Excerpt:
In a special issue of Michigan Privatization Report from December 2000, LaFaive wrote about the services the city should privatize and assets it should sell.
Grand Rapids Public Schools is laying off teachers this year and will be using an evaluation system that takes performance — rather than seniority — into account, according to WOOD-TV.
The local teachers union president is unhappy, calling the system "unfair and subjective."
Political columnist Chad Selweski of The Macomb Daily highlights a recent piece by Fiscal Policy Director Michael LaFaive taking politicians to task for using repetitive language in press releases touting so-called “economic development” junkets.
The gap between wages among public- and private-sector workers in Michigan grew 3.4 percentage points between 2007 and 2012, according to the Lansing State Journal.
“It suggests that Michigan should do more in terms of benchmarking,” James Hohman, assistant director of fiscal policy, told the Journal. “The ultimate goal would be that taxpayers get decent value for their money … to make sure they are paying a fair amount for the services they receive.”
I recently had the pleasure of appearing on the Fox Business program "Money" with Melissa Francis to discuss government subsidies for a new entertainment complex that will house the Detroit Red Wings.
Ms. Francis is a talented and gracious host, making the experience on balance a positive one. I was baffled, however, by the apparent beliefs expressed by another guest on the show.
The House and Senate remain in the midst of a summer break, but this week a Senate committee advanced four bills related to the federal health care law's Medicaid expansion to the full Senate.
The main one is a Senate version of House Bill 4714, passed by the House in June (Who Voted "Yes" and Who Voted "No"). This would authorize the Medicaid expansion in Michigan.
The Mackinac Center for Public Policy and Northwood University welcomed Supreme Court Justice Brian K. Zahra as the keynote speaker for Friedman Legacy Day, an event celebrating the life and free market ideas of economist Milton Friedman, who would have been 101 years old Wednesday.
Justice Zahra was introduced by former Michigan Supreme Court Chief Justice and current Chairman of the Board of Directors for the Mackinac Center Clifford W. Taylor.
Zahra reflected on Chapter 9 of Milton Friedman's 1962 book Capitalism and Freedom. In it, Friedman advocates for the elimination of licensure for those who want to practice medicine.
You can read Zahra's commentary on the issue and his entire address given on the campus of Northwood University in Midland July 31, 2013, here.
In early 2011, the word was out. Incoming Gov. Rick Snyder was going to change the “governmental culture” in Lansing.
Yet, that culture remains virtually the same as it has been for decades. In spite of the brave assertion of two and a half years ago, it is neither significantly altered nor even shaken.
Michigan’s Senate recently passed an omnibus budget that specifically prevents the Michigan Department of Education from spending money to implement the Common Core State Standards that are being instituted in many states all over the country. Assuming Gov. Snyder signs the bill, the Senate may have scored a victory for school choice and its beneficiaries.
With numerous examples around the country, it has become clear that there are poor political incentives to properly fund public pension and health care systems.
Consider the case of Detroit, as well as the states of Michigan and Illinois. In each case, pension systems were supposed to be fully funded, yet large gaps remain between what employees and retirees have earned and how much money is in the systems.
Economist Milton Friedman would be 101 today. His passing several years ago was lamentable but many of his ideas — involving monetary policy and price theory, for instance — are immortalized in his many scholarly books, academic papers and tributes by fellow scholars who knew him best.
"Free to Choose," a 10-part television series starring Milton Friedman and highlighting free-market principles, first aired over 30 years ago. The education episode begins with students at Hyde Park High School, the camera panning across metal detectors and armed policemen surveillance as students enter school.
The House and Senate are in the midst of a summer break, so rather than votes this report contains several recently introduced bills of interest.
Senate Bill 391: Allow electronic "proof of insurance"
Introduced by Sen. Michael Green (R), to allow “proof of insurance” documents motorists are required to have when driving under the state’s no-fault insurance law to be an electronic communication from the insurance company. Referred to committee, no further action at this time.
Rod Lockwood, a member of the Mackinac Center’s board, was on Fox Business with John Stossel Thursday night discussing his idea to purchase and develop Belle Isle.
Center analysts have long recommended Detroit sell the island and use the money to help pay down a portion of its crushing debt.
As we read in Ecclesiastes, "What has been will be again, what has been done will be done again; there is nothing new under the sun." Based on recent examples, this also applies to politicians’ press releases about government "economic development" programs and projects.
There are many issues that led to bankruptcy in Detroit and everyone and his brother seems to have a theory.
Rather than rehashing the reasons why Detroit went bankrupt, let’s discuss what did not save it: Flashy projects.
Back in 2005, my colleague Michael LaFaive compiled a partial list of bold proclamations about projects in the Motor City:
Editor Lindsey Dodge was a guest on “Capital City Recap” with host Mike Cohen on WILS AM1320 in Lansing Wednesday evening, discussing her blog post on Detroit’s bankruptcy posted at the Independent Women’s Forum.
Dodge points out that cultural issues are a symptom, not a cause, of Detroit’s problems and explains that bad policy decisions are the root cause of the city’s failings.
Several news reports indicate protests are taking place across the country over the minimum wage, with Lansing and Detroit intending to host their own, according to MLive.com. There are a number of problems with governments' wage floors.
Minimum wage laws:
Mackinac Center President Joseph G. Lehman was cited in a Reuters story today explaining why the state of Michigan should not bail out Detroit.
“Detroit needs a game changer,” Lehman suggested, rather than more state aid. He pointed to the elimination of the city income tax as one preferred option, something Fiscal Policy Director Michael LaFaive suggested in this Detroit News Op-Ed more than seven years ago.
Michigan’s recent increase in unemployment was caused by an uptick in the number of people looking for work.
While an increased proportion of people looking for work is rarely good news, this time it is. The reversal of the state’s long-term trend of losing its workforce is a positive for the state.
What impact will Detroit’s bankruptcy have on other municipalities? Fiscal Policy Director Michael LaFaive told Fox News: “I would hope cities are looking at their under-funded liabilities and the health care costs associated with future and current retirees.”
The Mackinac Center, in conjunction with the ACLU of Michigan and the Michigan Press Association, will host a town hall meeting on government transparency from 6 to 8 p.m. Wednesday at Northwood University in Grand Rapids, according to MLive.
The House and Senate are in the midst of a summer break, so rather than votes this report contains several recently introduced bills of interest.
Senate Bill 331: Repeal expanded "emergency manager" powers
Introduced by Sen. Coleman Young (D), to repeal the 2012 law that greatly expanded the powers of emergency managers appointed by the state to reform the finances of fiscally failed school districts and municipalities. Referred to committee, no further action at this time.
State, national and international media turned to the experts at the Center after the city of Detroit announced it had filed for bankruptcy Thursday afternoon.
Michael LaFaive, director of the Morey Fiscal Policy Initiative, told National Public Radio that the situation is unprecedented.
The city of Detroit announced it has filed for bankruptcy. Gov. Snyder must still approve of the move. If he does, it is a sad day in the long decline of a once powerful city.
It did not need to come to this.
Warning signs were everywhere and only increased in intensity in recent years. As early as 2000 this author published an entire issue of the Mackinac Center’s flagship publication Michigan Privatization Report dedicated to Detroit’s fiscal problems and related solutions.
