(Editor's Note: The following is the written testimony Education Policy Director Ben Degrow offered to the House Appropriations Committee on March 7, 2016.)
Thank you for the opportunity to share my thoughts concerning the challenging state of education in Detroit. Since its inception the Mackinac Center for Public Policy has advocated policy solutions that expand freedom to help improve the quality of life for all Michigan residents.
Many people have stopped looking for work and are thus out of the labor force. This is one of the criticisms of the nation’s current economic recovery. The labor force participation rate has declined and this is a sign of fewer good opportunities. Michigan, however, just posted record gains in labor force growth.
The Midland Daily News published an op-ed this week by Mackinac Center policy analyst Jarrett Skorup about the many problems that stem from Michigan’s overbearing occupational licensing laws and what can be done to change this.
Though typically less talked about than minimum wage and right-to-work laws, government-mandated licensing requirements people must meet in order to hold a job affect more workers than those two laws combined, Skorup noted. These government rules — which include mandated training, testing and fees — hurt the economy and increase income inequality while failing to help consumers.
The Michigan House passed a bill eliminating bonds for forfeited property. According to MichiganVotes.org, House Bill 4629, sponsored by Rep. Peter Lucido (R-Shelby Township), would “repeal a requirement for a property owner whose property has been seized by police and is subject to ‘civil forfeiture’ to provide a cash ‘bond’ to contest the taking, and if unsuccessful to pay all the expenses of the proceedings.” It passed 100-7.
Whether or not a student can read in the early grades is a clear indicator of future success. Schools should not keep sending kids onto the next grade if they lack basic reading skills. This “social promotion” often does more harm than good.
As the state Legislature debates House Bill 4822 and strategies to advance early literacy, the Battle Creek Enquirer’s editors have laid down a strong claim. Their March 10 editorial argued against any use of the strategy of third-grade retention (holding back students) — presumably out of a desire to protect kids. To follow their recommended course, though, would eliminate an approach that promises to help many of Michigan’s neediest students.
A new study from the R Street Institute, a free-market think tank with a pragmatic approach to public policy, gives Detroit an A-minus grade for its regulatory structure regarding short-term lodging rentals. The report grades are based on whether a legal framework exists, the level of restrictions, taxation, licensing, and enforcement.
By Jack McHugh
Senate Bill 314, Authorize truck weight limit exceptions for maple sap haulers: Passed 26 to 12 in the Senate
To include maple syrup sap under an agricultural products exception to the truck weight limits that are applied during March, April and May.
The NCAA men’s basketball tournament, March Madness, kicks off today. But if you’re one of the millions that takes part in filling out your brackets and putting some money into a betting pool with your friends, you’re breaking Michigan law.
State law allows an exception for small bets during poker games, but almost everything else is against the law. The state department notes, “Participating in betting pools based on sports, or anything else, is illegal.”
Two years ago, the city of Grand Rapids denied the Acton Institute a local tax exemption. But the free-market think tank demonstrated in court it was indeed a charitable organization, and therefore eligible under state statute to be exempt from certain taxes.
Rep. Pat Somerville (R-New Boston) introduced a bill last week that would prevent local government employees from using overtime and other extra compensation to boost their taxpayer-funded pension benefits. The bill could can lower the costs of those benefits and make them more predictable, but unfortunately it will do little to contain the runaway costs of an underfunded pension system.
The Detroit News today published an op-ed by Mackinac Center for Public Policy Executive Vice President Mike Reitz calling on lawmakers to make Michigan government more accountable.
In the piece, Reitz says, “The Flint water crisis provides a vivid and tragic reminder about the importance of open government.” Referring to a recent article in Michigan Capitol Confidential, Reitz shares that the Mackinac Center received a bill from the City of Flint for $172,000 when it asked to see two years’ worth of city emails that include the word “lead.”
In 1950, only about one in 20 workers needed to be licensed to work legally. Today that has risen to nearly one out of three – and for at least 800 occupations across the nation, citizens must pay fees, pass tests, and attain educational requirements to hold a job.
By Jack McHugh
Senate Bill 776, End challenges of "stale" ballot issue petition signatures: Passed 26 to 10 in the Senate
To establish that signatures on a petition to amend the state constitution must be collected within the 180 days before the measure is submitted. Under current law there is a presumption that an older signature is "stale and void," but this can be rebutted in an administrative procedure. The bill would make older signatures void without qualification.
The Mackinac Center’s F. Vincent Vernuccio joined Chuck Stokes and Dave LewAllen for WXYZ’s prime time election webcast Tuesday night.
Just before the first round of primary election results were released, Vernuccio, director of labor policy at the Center, spoke to ABC 7 about labor issues and how they have factored in to the 2016 presidential election. When asked about whether or not right-to-work has been good for Michigan, Vernuccio explained it has forced unions to provide value to members.
A new national report further undercuts the case for creating a politically appointed commission to dictate school enrollment decisions across the Motor City.
The Detroit Education Commission has been touted as part of the solution to rescue a failing education system. Proponents want to give the commission jurisdiction over all public schools within the city, including the ability to close charters it deems unsuccessful. In effect, the new governmental body would be empowered to take away options parents believe to be safer or otherwise better for their children.
The North American Free Trade Agreement’s influence on the state economy is being argued in both Republican and Democratic parties. (National Public Radio recently interviewed me on Bernie Sanders’ claims.) The presumption is that Michigan’s economic history is a prime example of the downside to free trade.
The Wall Street Journal published a letter by the Mackinac Center’s Ben DeGrow this week, setting the record straight on what caused the financial demise of Detroit Public Schools.
DeGrow, education policy director at the Center, responded to claims made in an earlier letter by American Federation of Teachers President Randi Weingarten that the district’s financial troubles were caused by “state intervention, financial ‘austerity’ and ‘outsourcing’” DeGrow paraphrased. In reality, he explained, the hardships in Detroit originated with irresponsible school boards:
NPR recently turned to the Mackinac Center to set the record straight on claims made by Bernie Sanders that free trade is responsible for Detroit’s blight.
In its Break It Down fact-checking series, NPR corrected Sanders’ claims that the North American Free Trade Agreement is the reason Detroit and surrounding areas have dilapidated, abandoned buildings. Mackinac Center’s James Hohman, assistant director of fiscal policy, weighed in on the matter, pointing out that the empty buildings featured in Sanders’ tweet were likely vacant prior to NAFTA’s adoption in 1993.
According to the latest revenue estimates, Michigan state government expects to pay out $1.03 billion this fiscal year to companies awarded refundable business tax credits under programs that were repealed in 2011. Even for Lansing, this is a huge transfer of taxpayer resources to favored interests.
By Jack McHugh
Donald Trump and Michigan Gov. Rick Snyder may be aligned on the issue of increasing the number of work visas issued to foreigners with college degrees.
Trump startled his supporters by appearing to reverse course on the issue during a March 3 candidate debate in Detroit.
Government pension systems around Michigan are a mess, by and large, and there’s no better example than the public school employee pension system. It is need of reform, carrying $26.5 billion in unfunded liabilities. Unfortunately, some lawmakers and local officials do not understand how pension systems work and believe the only way to catch up on underfunding is to rope more people into the system, namely charter school employees.
By Jack McHugh
Senate Bill 332, Reduce minor in possession of alcohol sanctions: Passed 36 to 2 in the Senate
To remove the misdemeanor penalties for a first violation of the minor-in-possession of alcohol law, but not on second or third violation, which carry potential 30 and 60 day jail sentences. First-time offenders would instead be subject to a $100 civil fine. The bill also repeals police authority to require a minor to take a chemical breath test. Senate Bill 333 applies similar treatment to first offenses of minors transporting alcohol in a vehicle or anyone having an open alcohol container in a vehicle.
The Michigan Freedom of Information Act provides a compelling declaration in favor of government transparency: “It is the public policy of this state that all persons … are entitled to full and complete information regarding the affairs of government and the official acts of those who represent them as public officials and public employees, consistent with this act. The people shall be informed so that they may fully participate in the democratic process.”
A recent proposal to raise excise taxes in Maryland by one dollar — an increase of 50 percent — is irresponsible in light of the evidence suggesting a large increase in the cigarette tax is associated with an increase in crime. The criminal activity could include but not be limited to rampant smuggling, violence against police (and other people) and public corruption.
A newly-introduced bill would allow a majority of employees in a workplace to vote to force their colleagues to pay money to a union. The Detroit Free Press covers the issue here: “Bills would allow employees to vote on right-to-work.”
“If the employees are upset that they have to pay, then they can vote no,” Rep. Robert Kosowski, D-Westland, told the Freep. “It gives full authority to the union people.”
