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The forced unionization of home-based day care providers is finally drawing the attention of state legislators.

"It created another layer of bureaucracy that seems to leave the providers themselves without the benefits they deserve for the services they provided," Rep. John Proos, R- St. Joseph, told the Livingston Daily Press & Argus.

The School Aid Fund, the mechanism through which millions of taxpayer dollars flow to public schools, is perpetually in trouble according to some. The SAF makes up a large portion of Michigan's overall budget, which also is in a constant state of "deficit," according to some. Mackinac Center scholars take a deeper look at these issues.

A last bit of leftover business from last December: One of the few government agencies that is genuinely underfunded proved its value a couple of weeks ago. Investigations by the U.S. Department of Labor's Office of Labor Management Standards led to two officials from AFSCME Local 100 in Pontiac being brought up on charges from the embezzlement of nearly $40,000 of union funds. Former Local 100 President Diedre Lucas was indicted on four charges of embezzlement, while former Treasurer Brenda Bywater faces a charge of making false entries in union records. Lucas in particular is likely to be looking at prison time if the charges hold up.

Grand Rapids Press Editor Paul Keep asked for suggestions on how to "fix" Michigan. Mackinac Center scholars responded with two, both involving law enforcement, and will weigh in with more ideas as The Press begins a 10-month series focusing on Michigan's future.

A study conducted by the U.S. Department of Health and Human Services shows the limited effectiveness of early education programs. Students in the nation's most extensive pre-kindergarten program — Head Start — were shown to have lost all cognitive gains by the end of first grade. Proponents of universal and state-run pre-K should take notice.

Dome Magazine's cover story, "Desperate for Diversification: A brief history of Michigan's economic development strategies," correctly points out that Mackinac Center scholars have disagreed with the state's central planning attempts under both Republican and Democratic governors.

As much as 50 percent of the cigarettes consumed in the state of Washington would be smuggled in if a proposed $1 increase in cigarette taxes there passes, according to an Op-Ed by Center scholars today in the Seattle-Tacoma News Tribune.

Michael LaFaive, director of the Morey Fiscal Policy Center, and Todd Nesbit, a Penn State professor and adjunct scholar with the Center, wrote the Op-Ed based on a 2008 study they co-authored with Patrick Fleenor, an economist with the Tax Foundation, titled "Cigarette Taxes and Smuggling: A Statistical Analysis and Historical Review."

The Climategate Auto Panel hosted by The Detroit News during the first week of the North American International Auto Show in Detroit was most interesting, but not for the reasons I expected. I braved frigid temperatures and icy roads as I drove from Lansing to Detroit, expecting a lively debate on global warming and government regulations affecting the American automobile industry. My expectations were exceeded by the amazing public revelation that domestic carmakers are relying on further government intervention for their survival.

In politics it’s referred to as “Astroturf”, political protests done by paid professionals, done to look like the work of volunteer grassroots activists. More than one politician has accused TEA Party opponents of nationalized health care of engaging in this deception, but now we have evidence that one union in Massachusetts is paying top dollar for its own political show.

Recent Michigan legislation hypothetically makes it easier for schools to remove ineffective teachers from classrooms. However, some districts are claiming they already have good evaluation systems in place. For a glimpse into how the current process works, here's a step-by-step look at how one school district handles ineffective teachers.

The state of Washington is considering an increase in its cigarette taxes by $1 per pack. As we've shown in our 2008 study on cigarette taxes, these tax hikes carry a large degree of unintended consequences. Increasing cigarette taxes is expected to ensure that half of all cigarettes smoked in Washington are smuggled in from other states.

According to a report from the Detroit Examiner, Las Vegas contractor Joseph Jewett pled guilty to bribery charges yesterday.

The charges stemmed from a 2006 deal in which Jewett offered Carpenters President Ralph Mabry a share of an investment. In exchange, the carpenters union hired Jewett’s company as a consultant for the rebuilding of a Mississippi casino that had been damaged by Hurricane Katrina. The casino had been built partly with carpenters' pension trust funds. At the time the kickback was arranged, Mabry was the highest-paid union official in the state.

Yesterday it was reported that the Obama Administration would be "unrelenting" in putting Americans back to work. Indeed, Congress has named this its "top priority."

However, our elected representatives (never known for their economic knowledge) don't understand that there are, in fact, countless jobs in an economy. Don't believe me?  Let me break it down using my own house as an example. Just where I live, I can think of dozens of different jobs available: someone could paint the walls, mow the grass, do the laundry, trim the bushes, wash my car, etc.  I would be willing to pay $1 for each of those chores.  If you're interested, please contact me.

Wesley Reynolds, Mackinac Center operations intern, writes about John Hancock to celebrate the 273rd anniversary of Hancock's birth, Jan. 12, 1737, at Landmarks of Liberty.

The Michigan State Board of Education heard from invited guests today, including Michael Van Beek, Mackinac Center director of education policy, about how to restructure school financing.

According to The Detroit News, two economists heavily promoted increasing numerous types of taxes on families, businesses, consumers, seniors and estates.

An article from the Summer 2002 issue of Michigan Privatization Report proved prescient. A follow-up by Michael LaFaive, director of the Morey Fiscal Policy Initiative, eight years later is trying to warn officials in Kalamazoo not to repeat their folly.

Yesterday, forecasters from the Michigan House Fiscal Agency, Senate Fiscal Agency and Treasury Department met to agree on an estimate for the next fiscal year's state revenues. These revenues are important because coupled with spending figures, they tell us whether fiscal 2011 will result in a surplus or deficit.

Russ Harding, senior environmental analyst and director of the Center's Property Rights Network, will talk about cap-and-trade tonight at 7 p.m. in Livingston County.

The Livingston Daily Press & Argus has more details.

(Editor's note: The following commentary is an edited version of a book review written by Joseph G. Lehman, president of the Mackinac Center, that appears in the January/February issue of The Freeman, the journal of the Foundation for Economic Education.)

A new online database contains health insurance information for more than 95 percent of Michigan's 551 public school districts, according to Michael Van Beek, director of education policy. In more than 300 plans, teachers do not contribute a single penny toward the cost of their own premiums. Health insurance for school employees costs Michigan taxpayers nearly $2 billion per year.

It's been said many times before, and yet people rarely seem to understand that believing in the free market does not necessarily make one a fan of business. Business (especially large corporations) is often willing to fight government over taxes, and yet join government when it suits its own purpose.

The Environmental Protection Agency announced it is once again proposing to lower the ozone standard to between 60 and 70 parts per billion from the current standard of 75 parts per billion it established during the George W. Bush administration. This would be the third time the ozone standard has been lowered since the Clinton administration lowered it to 84 parts per billion in 1997. This is more of a political decision than a scientific one.

In November, I wrote about the "Luckiest ZIP code in Michigan", which, according to the official Web site that tracks federal stimulus dollars, was a ZIP code in Lansing. Further review of all 674 ZIP codes on the Michigan list, cross-checked with United States Postal Service ZIP Code lookup finds $573,161 in federal stimulus money went to five ZIP codes in Michigan that do not exist. $1,254,110 went to ZIP codes in other states, including $1,143,025 that went to ZIP Code 55411 (Minneapolis, Minn.) and created zero jobs, according to recovery.gov as seen below:

With apologies to John Lennon, I imagine a city without cars.
Exhaust fumes replaced by fine boutiques and fern bars.
All the people walk to workplace and shops,
And the streets are patrolled by mo-ped cops.
All city life is one of perfect precision,
Nothing's out of place if you have a Grand Vision.

Even with an expected budget overspending crisis of $1.8 billion next year, Michigan government's revenue situation is doing much better than the rest of the economy.

State tax receipts are largely determined by how well a state's economy is doing. When workers earn more, they pay more income taxes. When consumers buy more, they pay more in sales taxes.

Busted

Asked and Answered

MASStroturf

Happy Birthday John Hancock

Time to ZIP It?