In 2015, Michigan legislators voted to wrap up the state’s film subsidy program – with the last dollar being paid out recently. This was nearly a decade after the program started and ultimately became the most generous in the nation, spending nearly half a billion dollars over time.
Gov. Rick Snyder’s support of legislation this year to provide taxpayer subsidies to a billionaire real estate developer (and others) and to large corporations has compelled me to ask “Why?” in a very public way.
Why the changed position? Why was buying “businesses into the state” — as the governor mentioned in a 2013 speech (below) — not good early in his administration, but perfectly OK and even encouraged by him later? The scholarly evidence on state and local economic development programs hasn’t changed since then — such programs still appear largely ineffective — so what happened?
By Jack McHugh
Senate Bill 584, Expand concealed pistol “no-carry zone” exemptions: Passed 25 to 12 in the Senate
To authorize an exemption from the “no-carry zone” restrictions in the law authorizing shall-issue concealed pistol licenses, if a licensee gets extra training. No-carry zones include schools, day care facilities, sports stadiums or arenas, bars, bar/restaurants, places of worship, college and university dorms and classrooms, hospitals, casinos, large entertainment facilities and courts. Under the bill private property owners, colleges and universities could still ban guns, schools could prohibit teachers and staff from carrying guns, and licensees could not openly carry a gun in a no-carry zone.
At 50,000 jobs, the Amazon second headquarters project is the largest proposed expansion I’ve ever seen. Whether it will deliver on its promises is an open question. But even this large project pales in comparison to the number of jobs the economy creates and loses on a regular basis, and this turnover happens without fanfare.
The Michigan Legislature is considering House Bill 5175 which would “expand the types of liquor license holders allowed to refill clearly labeled ‘growlers' (sealable containers of up to one gallon) with beer for consumption off-premises.” Policy Analyst Jarrett Skorup testified on the bill before the House Regulatory Reform Committee on Nov. 1, 2017. His testimony is reprinted below.
By Kahryn Riley
A study released this month by University of Michigan scholar Jeffrey Morenoff suggests that overly strict criminal justice systems create a self-perpetuating prison population. That is, the practices used to supervise released ex-convicts could be responsible for many of them returning to prison.
By Ben DeGrow
The Michigan Department of Education has given experienced professionals one more reason not to consider a career switch to teaching: They would have to retake a college entrance examination. And that’s on top of other requirements from the state.
Genesee County teacher Jeff Piechowski recently learned that to convert his temporary teaching certificate to a permanent one, he must take the SAT. Once known as the Scholastic Aptitude Test, the SAT is given to all Michigan 11th-graders. Piechowski, who focuses on special education, didn’t enter the profession through a traditional college program. Instead, he left a broadcasting career for the classroom, gaining years of experience in Texas before moving to Michigan.
Dr. Theodore Bolema is an adjunct scholar with the Mackinac Center. He is also a senior fellow at the Free State Foundation, specializing in technology policy. His article, below, first appeared on that organization’s website. It is followed by his testimony to legislators in Michigan.
The Michigan Legislature is considering some bills that would make it easier for skilled trades workers to teach in the state by exempting them from certain mandates. But the association that represents school principals in the state is opposed, despite the opportunity to give their members more flexibility over who they can hire to meet their schools’ needs.
By Jack McHugh
House Bill 5013, Adopt auto insurance reforms and price controls: Failed 45 to 63 in the House
To allow vehicle owners to purchase auto insurance policies with personal injury protection (PIP) coverage below the currently mandated unlimited coverage; cap the amount that hospitals, doctors and long-term care providers could charge to treat people injured in crashes; and more. Among other things the bill would require insurance companies to lower rates if these provisions lowered the cost of treating crash victims, which reportedly are much higher in Michigan than any other state.
“Law and sausage,” German aristocrat Otto von Bismarck was reputed to say, “are two things you do not want to see being made.” Today’s sausage making in Washington, D.C., involves the final release of tax reform specifics that — if adopted — will mark the most comprehensive federal tax reform legislation since 1986.
A bill that would ban local governments in Michigan from subsidizing local internet service providers was introduced and then pulled back recently. It provides a good opportunity to discuss what cities can and should do to encourage broadband for their residents.
The largest problem facing local governments is the amount of debt they have for workers in retirement. The debt comes in two forms: pension liabilities and government-funded medical insurance. The political debate is how to solve the debt problem.
Local governments can stop racking up pension debt by shifting their employees to 401(k) retirement plans as soon as possible. Doing so would stop them from passing along the costs for their current workers onto tomorrow’s taxpayers. Oakland County, and many other municipalities, have gone this route and are more solvent and able to pay for other government services because of it.
Editor’s note: The proposed tax hike was failed at the Nov. 7 election.
The city of Fraser asked citizens for a tax hike in 2016 but the measure failed. Apparently undeterred by the outcome, Fraser officials increased taxes anyway with a new budget and are asking voters again for a hike. But the city has a spending problem it should look at first.
The average cost of treating an auto accident injury in Michigan tripled over the last decade and is now more than five times the cost in the next most-expensive state. Despite this, insurance companies have, on average, lost money selling auto insurance over the same period. Those are two of the findings from a recent deep dive conducted by Crain’s Detroit Business and Bridge Magazine.
In California and a few other states, some prisoners are trained as firefighters and deployed to help handle emergency situations, such as the recent wildfires in the Golden State. These prisoners learn how to operate the firetrucks and equipment and receive training in EMT services. Firefighting is a dangerous job, and sometimes the prisoners are killed in the line of duty, as was the case of 22-year-old Shawna Lynn Jones.
By Kahryn Riley
A new bill under consideration in the Michigan Legislature would require people to help rescue others who are in danger. But it is unlikely to have a positive effect and may even do more harm than good.
Michigan House Democratic Leader Sam Singh recently introduced House Bill 5077, which would make it a crime for an individual to decline to rescue someone in danger if doing so wouldn’t also endanger the rescuer.
Suniva, a solar cell manufacturing company received millions of dollars in federal, state and local grants and tax credits is now asking the Trump administration for steep tariffs on imported solar cells.
Michigan, among other states, granted extensive subsidies and tax breaks to the firm. How much it actually collected from state taxpayers is not known because state administrators do not disclose that information.
By Ben DeGrow
U.S. Secretary of Education Betsy DeVos returned home recently to deliver the keynote address at the Acton Institute’s 27th anniversary dinner gala.
DeVos made clear to the large Grand Rapids audience what motivates her education policy views, a vision that is more popular among the nation’s moms and dads than it is among the officials and bureaucrats who run the system. “I came into office with this core belief: It is the inalienable right and responsibility of parents to choose the learning environment that best meets their child’s individual needs,” she said.
By Jack McHugh
House Bill 4805, Ban imposing “educational development plan” on home school students: Passed 101 to 5 in the House
To prohibit officials from requiring the parents of a homeschooled student who is enrolled in a public school part time and taking some public school classes (including "virtual" or online classes) to file an “educational development plan” with a public school district. These plans often but not necessarily apply to public school students who are falling behind.
Two competing proposals have been introduced in the Michigan House that would reform auto insurance in this state. The first is a hefty bill that would substantially change current laws, leading to more choices and lower premiums for drivers. The second is a package of 11 bills that also contains some cost-savings components but, on the whole, may actually make auto insurance even more expensive.
The U.S. Supreme Court recently announced that it will hear the case of Janus v. AFSCME. The decision will determine whether millions of government workers around the nation can be forced to pay money to unions or whether they will be able to stop, essentially guaranteeing right-to-work for all public sector workers in the country.
Some local government officials have gotten their governments into a mess and cannot get out without help. They’ve promised retiree medical insurance to unionized employees and did not set aside money to pay for it. This pushed the costs of yesterday to today, stretching finances thin. The state government can help deal with this fiscal issue.
By Ben DeGrow
A recent column by an intermediate school district official resurrects the specter of a Michigan teacher shortage crisis. While evidence for a widespread shortage is itself in short supply, local and state education officials have the tools to address local challenges.
By Jack McHugh
Senate Bill 609, Repeal 'driver responsibility fees' and give partial amnesty: Passed 37 to 0 in the Senate
To repeal the driver responsibility fees (“bad driver tax”) that are assessed for various traffic violations, effective Sept. 30, 2018. Individuals who lost their driver's license for nonpayment of these fees could get it back (on payment of a $125 fee). Fees that have been owed for more than six years would be forgiven, but not more recent ones. These very expensive fees were originally adopted in 2003 to increase state revenues.
