Editor's note: The following is a transcript of the testimony given by Jarrett Skorup, a policy analyst at the Mackinac Center for Public Policy, on June 14 before Michigan House Tax Policy Committee.
In February of this year, the House Republican Action plan said this, in regards to economic policy:
State lawmakers are once again rushing to embrace another program designed to benefit a few at the expense of the many. The new proposal is known colloquially as “Good Jobs for Michigan” but if history is any guide, it will produce few of note. It is a state “tax capture” program loosely modeled on the state’s failed multibillion dollar corporate welfare subsidy program known as MEGA, and it could be passed as early as this summer.
In endorsing a proposal to give businesses more subsidies, The Detroit News says that failing to pass this package “stunts not just job creation, but the state’s population growth as well.” But that assumes the proposal will help the state economy and fails to consider the full costs of this subsidy program.
By Jack McHugh
Senate Bill 343, Give students government predictions related to careers: Passed 37 to 0 in the Senate
To require school districts to give students a regional “career outlook” forecast document created by a government "Bureau of Labor Market Information and Strategic Initiatives." This would be part of a process that seventh-graders must undergo of creating an "educational development plan" with school officials.
(Editor's Note: The following is an edited version of a speech given by Michael LaFaive to the Florida chapter of Americans for Prosperity on June 8, 2017. Some of the language used here was taken from previously published remarks or essays.)
There are few areas of research where I find such widespread agreement in academic and other studies than those involving targeted “economic development” programs. In short, so-called development programs run by governments are ineffective and expensive. They don’t work, they’re unfair to those who pay full freight, cost billions of dollars that could be better used elsewhere and are potentially corrupting.
By Kahryn Riley
A 15-year battle to repeal some of the few mandatory life sentences remaining on the books in Michigan could soon be won as the Legislature considers a package of bills. The issue has seen liberals and conservatives aligned.
Mandatory sentences are different from the typical way courts decide a punishment for a crime. First, let’s describe how sentencing usually works.
Taxpayers are paying $2.5 billion more each year than they should for state-mandated school employee pensions. Lawmakers are getting heavy pushback on a bill that would fix this over time. The people that are fighting against this should actually support the effort.
By Jack McHugh
House Bill 4184, Restrict local government “phone-in” voting: Passed 96 to 12 in the House
To restrict members of an elected public body casting a vote without being physically present. This would be allowed in one meeting per year per member, if the individual is absent for what other members deem to be good cause. It would also be allowed if a delay on a personnel or infrastructure issue could raise costs or liability.
By Kahryn Riley
“There are some evil people out there – but most aren’t.” So says Rob Worsley, the executive director of Midland Community Former Offenders Advocacy and Rehabilitation, located in Midland, Michigan.
Worsley, an Army veteran, has more than 37 years of experience working with offenders in law enforcement, jail administration and the Michigan Department of Corrections. He started the Midland organization after working for the Michigan Prisoner Re-entry Initiative. During its tenure, the initiative gave local agencies funding to help ex-offenders find housing and employment when they return home. But it was replaced by a more centralized program run by the Michigan Department of Corrections that uses state re-entry money on in-prison programming.
By Ben DeGrow
During his first day on the job, Detroit Superintendent Nikolai Vitti was greeted with concerns about the district’s high number of teacher vacancies that have left many students without a full-time teacher. The new schools chief has a number of tools at his disposal, while state lawmakers could provide even more.
By Kahryn Riley
If you’re planning a party this summer, don’t let an out-of-state relative offer to stock your bar. The Michigan House passed a set of bills on Thursday that will create new civil and criminal penalties for individuals who bring too much alcohol into the state without a liquor distributor’s license.
Editor's Note: These remarks were originally given before the Florida Tax Watch Spring Board Meeting on May 26, 2017.
Thank you. It’s a pleasure to be here today to talk about economic development. There are few areas of research where I find such widespread agreement in academic and other studies. In short, state and local “development” programs are ineffective and expensive. They don’t work, they’re unfair to those who pay full freight, and cost billions of dollars that could be better used elsewhere.
By Jack McHugh
Senate Bill 249, Ban government discrimination against charter schools in property sales: Passed 25 to 13 in the Senate
To prohibit a school district or local government from refusing to sell property to a charter or private school, or taking other actions designed to keep these potential conventional public school competitors from using property for a lawful educational purpose. Prohibited actions could also include imposing deed or zoning restrictions. A number of local governments and conventional school districts have adopted such restrictions in the past.
Michigan lawmakers might offer new school employees defined-contribution, 401(k)-style retirement benefits instead of defined-benefit pensions. The state-run pension system’s managers in the Office of Retirement Services contend that this will generate large and unavoidable “transition costs.” But their reasoning for defending the status quo suggests that they are more interested in pressuring lawmakers away from reform than in maintaining a well-funded pension system.
By Ben DeGrow
Last summer’s release of a $400,000 taxpayer-funded study generated a number of headlines proclaiming that Michigan schools received insufficient funding.
“The adequacy study released today proves what many of us in public education have been saying for years: Michigan’s education funding is inadequate, and it’s harming student performance,” Michigan Education Association president Steve Cook told Michigan Radio.
By Jack McHugh
Senate Bill 337, Criminalize female genital mutilation of minors: Passed 37 to 0 in the Senate
To make it a crime subject to 15 years in prison to perform a clitoridectomy, infibulation, or other female genital mutilation on person less than age 18. Claims that the procedure is required by custom or ritual would be explicitly excluded as a defense to prosecution.
The largest fiscal issue facing the state of Michigan is retiree benefits. For decades, the state and local municipalities have promised more retirement benefits to employees than they have set aside to pay for.
Gov. Rick Snyder and the Legislature are debating what to do about this. There is nothing inherently wrong with pension systems — the problem is that politicians simply don’t fund them and instead pass the costs of today’s government onto future taxpayers. For example, the state has saved $29 billion less than what is needed to fund the school employee retirement system and local government pension systems are similarly underfunded. That being the case, state and local governments should shift new employees to 401(k)-type plans, which pay the full cost of retiree benefits as they are earned and cannot be underfunded and passed along to future taxpayers.
Defined benefit pensions could work just fine for both employers and employees. But government pensions have a major problem: They are ultimately run by politicians who are good at and used to making promises, but also good at and used to passing the bill to somebody else. The consequences of failing to pay the true cost of these promised pensions occur decades into the future, so it’s very easy for politicians to just push the burden onto future taxpayers.
Nick Ciaramitaro of the American Federation of State, County and Municipal Employees union argued on a MIRS podcast that transitioning to a defined contribution plan would “cost a half billion” to “provide significantly less benefits” to employees. I guess he is proposing a paradox that the plan would both cost more and be less generous. He is mistaken. The proposed 401(k) plan would be more generous, but not trigger huge transition costs.
By Jack McHugh
House and Senate sessions were shortened this week due to the tragic death by suicide of Rep. John Kivela from Marquette after a second drunk driving arrest. This report includes some Senate budget votes and amendments from the previous week.
Senate Bill 135, Senate version, 2017-18 Health and Human Services budget: Passed 25 to 13 in the Senate
By Jason Hayes
(Editor’s Note: A modified version of this article was published by the Detroit News as a letter to the editor on May 4, 2017.)
Renewable energy advocates regularly argue that wind and solar are cost competitive, meaning as economical, as other energy options. If it’s true that solar and wind power make financial sense, there shouldn’t be any need to subsidize them. But we do.
In places around Michigan, local governments prevent people from legally renting out their own property. But some new bills would change that, freeing up private property rights for homeowners.
In Traverse City, the government doesn’t allow short-term rentals of homes. That means residents can’t use services like Airbnb or HomeAway. Even in business districts, the city requires residents to be licensed and at least 1,000 feet away from other license holders. As The Detroit News reports:
By Jason Hayes
For several weeks, we have been inundated with media reports about thousands of protesters publicly opposing what they feared was the end of science in the United States, and possibly the world.
The March for Science website described how an “unprecedented coalition” gathered together on April 22 – Earth Day – in over 600 separate marches to “defend the role of science in policy and society.”
By Kahryn Riley
Early this year, the Michigan House of Representatives began considering a measure that would give voters the opportunity to enact a state constitutional amendment to protect their data from warrantless searches and seizures. As people shift more and more of their personal information to digital devices such as cellphones, it’s critical that this intangible form of property receive the same constitutional privacy protections as our papers, homes and persons.
By Ben DeGrow
At Central Academy poverty represents an unusually large challenge for an Ann Arbor school, but it in no way constitutes an excuse.
Success at Central Academy, one of Michigan’s longest-standing charter schools, follows an intentional focus on breaking down barriers built by poverty and different cultural mores. This focus reflects the passion and expertise of the school’s long-time leader, Dr. Luay Shalabi, the 2015 Michigan Charter School Administrator of the Year.
